[mseebach]

> This has wider implications on the ability to profit over the long run in a capitalist society. In open markets margins should tend to zero.

... unless you constantly innovate faster than the competition. Politico.com is profitable because the read the situation correctly and innovated in terms of hiring and retaining the best political reporters in DC, even though what they're doing is what "old media" tries to make us believe they're doing: reporting the news. Anyone can try to compete with politico.com, but building a comparable network of well-connected reporters is hard = a new barrier to entry.

> Therefore, this isn't just a problem of old media but of all markets.

First, it's not a problem, it's a good thing. Second, no, this is specifically a problem for old media (and postal services): The internet completely removed the single barrier to entry that protected that business - the local monopolies on dissemination of information.