A Substack that tracks Bloomberg LP examines its success concludes that the editorial product is one of the key drivers.
The Substack reads, “A dedicated team of editors, journalists, and reporters working only for Bloomberg were tasked with generating proprietary financial content. An in-house team could better optimize for speed, accuracy, and brevity to convey headlines to capital allocators. The existing low latency infra provided the rails and the Terminal with the distribution needed to scale fast.
“In a world where a news report received a few seconds late could mean millions in losses, Bloomberg News (along with Reuters) became the go-to for traders and money managers. More subscriptions led to more news editors and reporters, which led to broader, deeper, and faster coverage, which attracted more subscribers. The flywheel never looked back growing to a 2700 reporter team across 70 countries producing a wide range of content.
“To further the moat, Bloomberg increased the co-dependence of the Terminal with News. Bloomberg News is distributed through the Terminal first – in real time. Any user that believes that Bloomberg will even occasionally (i.e. more than once a year) break certain market-moving headlines first must necessarily have the Terminal if the timely receipt of the news can protect against a greater than $30,000 loss (the cost of the Terminal).”
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