Bloomberg and Reuters: the future of news
Whereas Bloomberg and Reuters appear to be the giants in the newsbusiness, it is apparent to note that their journey to success hashad numerous challenges. For instance, Bloomberg had tried to pairjournalists and analysts in order to news stories, but that neverworked. Reuters has also had its share of problems where it tried toform a merger in 2008 but failed terribly (Moses, 2012). This saw thereplacement of the then CEO, Thomas Glocer by Jim Smith. Bloomberghas invested heavily in the Businessweek and the monthlymagazine. However, the Bloomberg TV has not been as easy todistribute as the CNBC. Reuters on the other hand has not been ableto form a large customer base.
Bloomberg has remained as the leading news provider due to theconfidence that the top managers of the company has in the company.They believe that the company gets more indispensable every year andthey believe that the company gets broader and deeper every year. Thetwo companies have gained the remarkable success due to the servicesthey offer to the financial subscribers (Moses, 2012). The companieshave a culture where they serve their clients first before thegeneral public. Bloomberg for instance, serves its subscribers firstbefore the rest of the customers. Reuter on other hand has beensending its reporters and journalists to its clients so that theclients can see and feel the people who read their stories. This hasbeen critical in ensuring that the two companies sustain and maintaintheir customers.
The companies have also realized that overdependence on dataservices business might not be reliable. As a result, in order toremain as the reading giants in the news industry they have expandedinto other areas. For instance, Bloomberg has expanded to thegovernment and legal data business. Bloomberg has also acquiredexperienced journalists from other news houses such as the Timesand the New York Times. Reuters has also not been leftbehind. It has since bought the Breaking views, which was a financialcommentary service (Boyd-Barrett, & Rantanen, 2007). This isaimed at expanding its market share and dominance in the news world.
It is vital to point out that there are rumors that Bloomberg isweighing options to acquire the New York Times, as well as thefinancial times. It is also evident that the companies are sensitiveto products that do not sell in their market (Shapiro & Varian,2007). For instance, Reuters tried once to develop a magazine but itdid not go well with the executives. Since then, Reuters has notopted to produce a magazine yet.
The subscription approach by the two companies to its news has beencritical in aiding the two companies to succeeding in the newsindustry. There are millions of dollars that are accrued by thecompanies from their subscribed clients. The companies have alsosought famous journalists from some of the well-known news houses(Moses, 2012). It is also apparent that the management of the firmshas been exceptional and of great influence towards the success ofthe companies. Mergers have also featured as being significantapproaches towards the companies’ success. Whereas the journeytowards their success has been faced by numerous challenges, thecompanies have stood their ground and continue to be the leading newscompanies.
Moses, L. (2012). Bloomberg and Reuters: the future of news.
Shapiro, C., & Varian, H. R. (2007). Information rules: Astrategic guide to the network economy. Boston, Mass: HarvardBusiness School Press.
Boyd-Barrett, O., & Rantanen, T. (2006). The globalization ofnews. London: Sage Publications.