ChasNote

Reuters called PaidContent to clarify that this share of the ad revenues does not replace their subscription fees: “While the collaboration is a new type of deal for Reuters, our news agency subscription model still very much stands with clients around the world, including the IHT. This type of new strategic editorial collaboration is in addition to the subscription model, not a replacement.”

The more interesting aspect to me is that IHT is sharing ad revenues with a content supplier. Viacom announced a deal in August to share revenue with South Park’s creators. As the major media companies lose their distribution monopolies, talent seems to be gaining leverage.

At breakfast with a Viacom exec a year ago, he gave me a look like I was a madman when I told him FM is a publishing company — like his — not an ad network. “But you guys give away more than half your ad revenue to the content creators! A true media company would never do that, it would kill margins,” he told me. I argued that it may just be a more rational approach to running a media business, where the folks who create the content that attracts the audience get their fair share of the revenues made off those audiences. It looks like Viacom is coming around to our point of view! From NY Times:

“In a joint venture that involves millions in up-front cash and a 50-50 split of ad revenues, the network and the two creative partners have agreed to create a hub to spread ‘South Park’-related material across the Net, mobile platforms, and video games.”