How the news wire model is benefiting from churnalism

This week's Economist has an interesting article on the opportunities that the news wires are taking as newspapers face crisis management.

Reminding us that much news comes the news wire and that Christoph Pleitgen, a senior Reuters executive,has told them that

the big news wires have been staffing up in the past year.

and whereas Bloomberg have been cutting back on staffing recently

its recent announcement of around 190 job cuts at a foreign-language television venture got more attention than its promise to create 1,000 jobs elsewhere, including in its news bureaus

The reason of course is quite simple.As newsrooms cut back on journalists they rely more and more on the news wire as more people crave for content.