Michael Arrington Has No Idea How CNET Makes Money
April 7, 2008, 6:30 pm
Filed under: CNET, online advertising | Tags: , , ,

James Nicholson has an article up on Seeking Alpha offering his take on Michael Arrington’s “blogger dream team” post. His focus is on CNET Networks and Arrington’s claim that a “dream team” of tech bloggers could take the company apart in a year by putting out superior content. Nicholson is a little late responding to Arrington’s diatribe, but he does a great job explaining how Arrington has no real conception of how CNET actually generates revenue:

What drives CNET’s profits is its technology product reviews and the product search engine. This is an area that CNET still dominates and it would be largely unaffected by competition from a tech news blog network. In recent years CNET’s reviews have been behind the curve in evaluating new technology products, mainly because the company has been spread thin going into a variety of areas, many of which have had significantly lower margins than its review/shopping core. CNET’s biggest blog competition is not from TechCrunch, but from Engadget and Gizmodo – these are the blogs breaking the tech product news that CNET should be breaking.

Nicholson also feels that CNET would be best served by selling to Arrington’s newly constituted crew of superstar tech bloggers and focus instead on putting out as many electronics reviews as possible. I think he may have a good point, but I’m not sure is as dead as Arrington et al will have you believe. Let’s wait and see what Dan Farber brings to the table as EIC.

photo courtesy of jdlasica


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