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The NewsMarket – Profile

January 14, 2005

thenewsmarketlogo.gif
HQ: New York, NY
Founded: 2000
Management: CEO/co-founder is Shoba Purushothaman who was a business journalist for a decade with Dow Jones. She also co-founded a PR consultancy that she sold in 2001.
Investors: Company raised a $4M Series B round in April 2004 from Apax Partners, The Hearst Corporation and Boldcap Ventures.
Business Model: The Company distributes video/multimedia content from PR groups to journalists and operates a platform for browsing and ordering video content online. Clients are companies that pay NewsMarket for hosting and distributing video clips. Company claims over 4,000 media outlets in 75 countries have logged on to the service to find content. Registered news organizations include CNN, CNBC, BBC, EuroNews, Bloomberg TV and Reuters Television.
Competitors: Tribune Media Services, Associated Press, Reuters.
Dirt: The PR industry has taken it in the shorts the past few years, but is regaining its footing, so we expect services like The NewsMarket to profit. Compared to more objective news sources like AP and Reuters, The NewsMarket is a shill to PR organizations, so if there is a backlash against excessive propoganda in the news, The NewsMarket will take a hit. The major trend that works in The NewsMarket’s favor is the ongoing integration of video into the general Web experience. It wasn’t that long ago that the launching of a video clip within a browser was a complete crapshoot. It still is, to some extent, but as outlets like Yahoo News offer greater multimedia functionality, press releases and other corporate news will increasingly come in the form of video and audio. That said, we’ve had occasion to look under the hood at competitors like PR Newswire and we know they are not technologically illiterate – quite the opposite, in fact. For now, we suspect NewsMarket is able to boast a better technology platform, but this start-up will have a long way to go to cut into a corporate client base that is split roughly 50/50 between the two incumbent press release distributors, PR Newswire and Businesswire.

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