Thursday, January 13, 2005
Choosing my bank
Look, this is really quite easy to understand:
Mitch has more.
- If you work for a newspaper and you attack an advertiser, the advertiser might wish to reconsider where to take his advertising dollars.
- If the advertiser makes a public point of pulling the ad dollars, those who support the newspaper journalist can certainly stop doing business with that advertiser.
- If the newspaper's editors don't really care, neither will the newspaper writer.
- $250k in ad revenue is probably more a problem to a newspaper than $77.03 in some blogger's checking account. The importance of the money to them is the size of the deposit times the interest margin, if anyone cares. Interest margin for a place like TCF is probably about 3%.
- This has nothing to do with the freedom of the press or free speech; it's called the sanctity of contracts and the market. And the principal-agent problem.
Mitch has more.
