In the PR industry, there is a huge reliance not only on press releases but on the two major wire services that distribute them. They are PR Newswire and BusinessWire - the Coke and Pepsi of the PR biz. Everyone uses one or the other or both.
Every day legions of companies spend about $800 - $1,000 and up (depending on the word count) to put their press releases up on the wire. The services then stream these releases to every newsroom in the world as well as to hundreds of Web sites, such as Yahoo Finance for example. The value in these services in the Internet 1.0 era was less in reaching journalists than it was in touching the consumer directly, which I have covered here. In the Web 2.0 era, they will not be as lucky.
Let's put aside for a moment the future of the press release itself. That's a bigger topic that's been discussed to death. I am talking about RSS here. The RSS revolution is going to totally disintermediate the press release wires, unless they adapt quickly. It's not inconceivable that someone will come along soon and build a free press release wire that's built completely with feeds. This service would scoop up corporate and agency press release feeds, tag the content appropriately by industries/topics and ship the content out as uberfeeds.
To their credit, both PR Newswire and Business Wire have adopted feeds as a delivery channel for press releases. However, I see a day coming fast when their dominance will end. It's not time yet, but within five years as RSS really takes hold these guys are going to be as dead as dinos, unless they start to make bigger moves and fast.
So what's the solution? The wire services can save themselves by helping the PR industry move to RSS feeds. The wire services should be the ones helping us set up dedicated RSS feeds, like Nooked does. They should be the ones creating a Web 2.0 model for press releases (assuming they will still exist). If they stay ahead of the RSS curve and help PR pros take advantage of the tools, they will be in a better position to stay relevant. Offering RSS feeds to journalists is a start, but I fear the wire services don't see how easy it is for someone to replicate their business overnight with RSS. Skate to that puck now.
