Feeds

Reuters to put its core business on the Internet

How sure are we this is a smart idea?

  • alert
  • submit to reddit

The essential guide to IT transformation

Pinch us. Reuters stock has been climbing since yesterday when, according to a Reuters report, so it must be true, it announced a £500 million plan to shift its core business to the Internet. This sort of announcement, by anybody, usually does have a happy effect on the stock price, but depending on what you reckon Reuters' core business is, shoving it on the Internet might not actually be an obvious recipe for success. The reverse, maybe. Reuters uses a global network of reporters to sell news, and although Bloomberg is the closest obvious enemy, the Internet itself is a bigger threat, because whatever it is you sell on the Web, the rule is that someone, somewhere, is giving it away for free. Reuters itself could also be seen as its own competition, because the Web has provided it with mechanisms to broaden its own distribution. Stories from the wire services are becoming more commonly used as differentiators, but the more of the same differentiator you have, the less effective it is, and the more the price goes down. Reuters isn't entirely informative about the nuts and bolts of its four year plan to migrate its services to "Internet technology." According to CEO Peter Job: "The Internet has...enabled us for the first time to start serving an infinitely wider market, including individuals making financial decisions at home and at work. It has also allowed us to adopt a more cost-effective model for our base business." The infinite nature of this market for a finite product is dubious - how many different places can you stand having the same information fired at you from before you get sick of it? And how much will you pay? The viability of this not terribly clear plan isn't at all clear. Reuters' planned flotation for its Greenhouse Fund, which invests in Internet startups, and the possibility of an IPO for its Instinet electronic brokerage look more convincing. But are these core? Or indeed, are the 50-50 joint venture with investment community Multex.com, or a wireless-related venture with Aether Systems core? Perhaps Reuters, which announced pre-tax profits of £632 million and warned of a £300 million reorganisation charge, is cannily redefining where it's core's at. ®

5 things you didn’t know about cloud backup

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?