Is News Corp.’s Fox TV Web Deal Death For Local Station Sites?

Last week, News Corp. struck a deal that gave Fox Interactive control over local Fox station’s websites and 50% of their ad revenue.  We called this an “interesting incremental move.” But over at Lost Remote, writer Steve Safran says it is a major blunder by the local stations — “a mortal wound.”

Safran says while the move looks like a no-brainer for local stations, who don’t get much value out of their websites and don’t have the resources to build them into something significant, it is actually a trap: By handing over local sites to a national programmer, they’ve guaranteed that they’ll never be of interest to local audiences. The only one who benefits from this kind of deal, he argues, is FIM, who gets to add a few million eyeballs to its national audience.

It’s an interesting, counterintuitive argument.  Lost Remote.