Recent events in the mobile tech industry, especially those linked to Facebook and Verizon, have shown two things: tech companies and media companies definitely have a love/hate relationship, and history seems to be repeating itself.
As Business Insider's Matt Rosoff says (opens in new tab), content is king again, and Facebook and Verizon are proof.
"With Verizon's $4 billion (£2.55 billion) purchase of AOL, and Facebook's new Instant Articles initiative, which embeds content from other media sources directly into Facebook, it looks like it's (content) back in vogue,“ Rosoff writes.
Here's how he got to that conclusion: tech companies make products that are only useful as long as people have something to do with those products. For example, Facebook would be useless if there was nothing to read, like or share on the site, which is why at some point tech companies would hire, buy or partner with people who create content.
Enter Instant Articles. With Instant Articles publishers get to push their content directly inside the Facebook app, without the need for users to switch to an external site. Not only does this mean that content is king again on Facebook, but the company will also generate more profit from ads displayed within these articles.
On the other hand there's Verizon, fearing it will become the "dumb pipe" that is only there to carry an ever-increasing amount of data at ever-faster speeds, buys content business AOL.
"There's some debate about whether Verizon is really interested in the content properties like the Huffington Post and TechCrunch — one report suggested the company may spin them off — or if Verizon is mainly interested in the advertising platforms that AOL has built to make money from those properties.“
"But either way, Verizon is clearly interested in profiting from the consumption of content on mobile devices.“