Wellington-based news and press release agency Scoop announced today that it is "another casualty of the tech wreck".
In an email to subscribers editor/director Alistair Thompson says those who benefited most from the site have refused to pay for it, and that the online advertising market was "as dead as a doorknob".
Thompson says his objective now is to find a new low cost format which will enable the best parts of Scoop to continue - without requiring its principals to "work themselves to the bones for no compensation".
From today, he says Scoop will start the process of re-evaluating what services it will provide. He has asked readers for feedback and has promised to file an advisory later today on what the timetable and plan for the Scoop metamorphosis is to be.
He says the service will be asking political parties and organisations contributing press releases to start publishing their own material.
Thompson says Scoop is "another casualty of the tech wreck" and he adds that is a huge disappointment to Scoop's creators, staff and supporters.
"Unfortunately it appears that those who benefit most from our services are not prepared to pay for them ... The biggest beneficiaries of our services are sadly not among those who have provided support, and what has been received is not enough."
Thompson says in his email that New Zealand political parties appear to be resolutely opposed to even acknowledging the service it provides, let alone consider paying for it. He says the political parties have "benefited hugely" from Scoop’s services for free for more than five years.
He also believes the online advertising market is "as dead as a door knob".
"We have innovated over and over again, launched rich media adverts ... and invented new forms of email based content campaigns - but appear to have been banging our heads against a brick wall."
He says that while the local advertising agency community claims to be supporting the new media, it is infact neglecting it. "It is too hard, too complex and too much effort for them it seems."
Thompson says Scoop has an audience of 50,000 people a month and with more than one million page impressions and emails of news a month currently being delivered, is probably read a comparable amount to a newspaper such as The Independent.
"It is not that we cannot provide value for money. We can."
Scoop has been acknowledged by the IT industry for excellence in the Computerworld Excellence Awards, and now in the NZ Internet awards, but Thompson says that appears to count for nothing commercially.
"The sad truth is that while the government searches for its Knowledge Wave spending millions on venture capital, we who have been riding it for years, and who are perhaps the best media through which the wave can find its expression, are shut out of the club."