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Sorrell warns of e-communities ?threat?: Media owners must find ways to attract and retain talent and create stand-alone digital divisions in order to compete in the era of internet blogs, open access and online communities, Sir Martin Sorrell, the chief executive of WPP, has warned.
The head of the UK advertising group also acknowledged the difficulty of competing against websites that destroyed business models. ?How do you deal with socialistic anarchists?? he asked, referring to Craigslist, the popular, free classified advertising site that has been threatening revenues at US city newspapers.
?The internet is the most socialistic force you?ve ever seen,? he added, noting that the response from some media groups had been to offer their content for free in traditional and digital form.
?They have decided ? ?if I don?t eat my children, somebody else will?,? he told executives from UK regional newspapers attending an industry conference, adding that he disapproved of giving away content for free. ?You should charge for it if the consumer values the content,? he said.
Sir Martin believes that the shortage in human capital would be one of the main challenges facing companies in the future, and successful companies were those that could ?find, retain, and incentivise good people?.
