Report: Newspapers Face Big Risk in Tie-Up with Facebook

Financial Times: It is too early to tell if Facebook’s Instant Articles will generate meaningful revenues for publishers. But a new report from the International News Media Association warns of dangers. It points to the experience of Dell, the PC maker, which gradually outsourced every aspect of its production and manufacturing to Asus, a Taiwan-based group. Asus took what it learnt from Dell and launched its own lower-cost PCs. By outsourcing every aspect of its business, Dell unwittingly helped a fearsome competitor. This same risk exists for news businesses.