When the Business Model Problem Becomes Everybody's Problem

“We have a business model problem, we don’t have a news problem.”

That was Google CEO Eric Schmidt talking to the American Society of News Editors last night explaining that the Internet has replaced the era of content scarcity with an era of content abundance.

Tell me about it.

I've been actively involved with Internet news media since 1995, and over that time I've charted the digital news explosion and how it has buried old media business models that evolved in kinder, gentler times, (at least as it pertains to the speed of the news cycle.)

During all of that time I've been an enthusiast for new media, and I remain so. But it's hard not to notice that the disruptive technologies of today are seriously undermining the ability of those who report, write and edit the news to continue making a living.

Up until recently, many of those affected by the waves of layoffs that have plagued the print publishing industry have been able to find new positions in nonprofits, academic institutions, or new media companies.

But as the recession continues, and advertising revenues lag, the employment world for content creators appears to be shrinking even more rapidly than in the recent past. If so, this is bad news for the entire media industry because no matter what else changes, one thing will always remain the same.

It all starts with those who create the content.

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