RP newspaper-TV site defies dot-com slump

RP newspaper-TV site defies dot-com slump

MANILA (Reuters): Dotcoms across the world are losing their hold on investors and their books are turning red.

But two Philippine "media giants" -- a newspaper and a television network -- this week launched their marriage online and plunked 80 million pesos (US$1.6 million) into a joint Internet news delivery system.

They have offered a giant promise -- return on investment in three years.

INQ7.net, a 50-50 joint venture between the Philippine Daily Inquirer, the country's leading newspaper, and TV network GMA Network Inc, announced their joint venture on Tuesday night with much glitz and funfare.

"As marriage partners, we do not sleep," said Felipe Gozon, president and CEO at GMA-7. "We operate 24 hours a day, seven days a week... an online, real-time multimedia news and information delivery system."

To President Gloria Macapagal Arroyo, the first to register as an INQ7 user, the country's first print-broadcast media merger online is "an electronic feedback facility" where Filipinos can "share their thoughts about the country".

To Marixi Prieto, Inquirer chairwoman, INQ7 is a journalism showcase and "represents the best in Filipino news reporting".

INQ7 has a 10-strong editorial staff, a 12-strong tech team, and an average 700,000 daily page hits, mostly drawn from what used to be Inquirer.net. Up to 93 percent of the eyeballs come from outside the Philippines.

Dennis Valdes, INQ7.net president and CEO, told Reuters that in its third year, the firm hopes to earn money "on net income basis or be cash positive or self-sustaining at the very least".

How this will happen is the big question. Valdes has two answers -- content syndication and e-commerce.

"Almost every dotcom in this country is studying how we can participate in online remittances from overseas Filipinos, sell products online."