The End of an Era

Last night, Ashton Kutcher (@aplusk on Twitter) did something remarkable. He showed the world (or at least the developed world) a truth. It's no secret that the newspapers are dying. Blogs have become the standard source of media for millions, and news outlets moved their print articles online to stay relevant. The problem they're finding, however, is that there is no viable business model if they want to maintain their business the way it was run before the online takeover.

Take the New York Times, for instance. Most of it's content is completely free via the web, but consumers still have to pay for a print version. So what do even loyal customers do? Keep the content, ditch the bills. It's great for the mass market, and it's improved readership. But what this move can't do is pay the bills for the reporters around the world who contribute to the Times. In other words, these businesses can't keep their models and still hope to compete, much less thrive.

So what amazing thing did Mr. Kutcher do last night? For free, via video, competing against one of the largest media outlets, he streamed live video of himself to thousands of people across the world to declare victory in a competition for market share. Mr. Kutcher had one million followers before CNN. What's so big about that? For one, Ashton doesn't have a television station, video producers or a worldwide network to help him get followers. He has Lil' Kim on YouTube, he has PDiddy on Twitter, and he has the know-how to use social media to create an enormous following without having to spend a dime. He showed that he, as a single person, can hold more clout than a media conglomerate.

So what does this mean for the media? It means their business model is threatened. I would even go as far as to say it was obliterated last night. If we were to look at the cost of production for battle between the two, there would be a huge discrepancy. CNN has to pay contributors, staff, camera men, writers; they have a whole lot of people working to push for the win. Ashton Kutcher had himself, a bunch of free software and a lot of community influence. He's not the only one. Of the top ten Tweeters, seven are individuals and two are media outlets. In case you're not convinced, here's the whole list. The crazy thing is, it's not just major celebs on the list, there are up and coming stars in their own right littering the top fifty influencers. That's hundreds of thousands of followers for relative unknowns. And they're competing with the likes of CNN, The New York Times and NPR. Did I mention for free?

So the business model is bust. Kutcher declared "check!" last night, and now it's up to the media to decide how to respond. Wave a white flag? Bonzai rush down the hill? Or maybe, just maybe, they'll rethink the strategy all-together.