Excerpts from Is History Repeating Itself by Buzzfeed CEO Jonah Peretti:
Some smart people in our industry don’t think it is possible to build a huge new media company anymore. This pessimistic view is wrong because it is focused entirely on what has been lost (monopoly pricing power, etc) and ignores what has been gained:
1) Technology. Technology has replaced geographic- and spectrum-based distribution monopolies as a competitive advantage for publishers… This [our tech platform] is a massive investment that is very difficult to replicate, and it creates a virtuous cycle where a growing number of talented people use increasingly powerful tools to do their job.
2) Scale. At the start of the golden age of publishing, a circulation of 1 million readers was considered large and even at the peak, reaching 10 million readers was considered a huge hit. Since those days there have been many exciting developments that have enabled a publisher to reach 10 times or even 100 times that scale.
3) Diversity of Talent. The early days of U.S. publishing were tough for anyone who wasn’t a white Protestant male living in the same city as the local paper. …times have changed; we can attract the best talent to our team regardless of race, ethnicity, or religion, and we can recruit beyond just New York in a growing list of global cities where we have expanded.