Yahoo! buys Associated Content

Associated Content pays its 3,80,000 contributors a nominal fee to produce niche-related articles on thousands of topics like health, technology and travel. With this deal, Yahoo! is trying to capitalise on a deep trove of content created for very little money as traditional media companies struggle with the costs associated with producing news and features.
“We feel that a contributor-driven model is absolutely part of the future of media,” Matthew Idema, Vice-President of local at Yahoo! said.

The idea is for Yahoo! to broaden its content offerings as way to attract more advertisers. Already it is producing its own material and has partnered with hundreds of newspapers and other traditional media companies to showcase their material.
Idema explained that Associated Content’s articles — mostly bite-sized pieces on subjects like how to turn back the clock on aging — will blend with other articles featured on Yahoo!.