Masters in Business: Managing Business Model Changes

Hosted by Bloomberg's Barry Ritholtz | Release Date: July 9, 2025

Introduction

In the "Managing Business Model Changes" episode of Masters in Business, Bloomberg Radio host Barry Ritholtz delves into the seismic shifts occurring in business models, particularly those driven by technological advancements and the rise of artificial intelligence (AI). To unpack these transformations and their implications for careers, Ritholtz welcomes veteran markets journalist and CFA, Sam Rowe. With over two decades of experience at esteemed publications like Forbes, Yahoo Finance, Business Insider, and Axios, Rowe brings a wealth of knowledge on the evolving landscape of media and business.

Guest Introduction: Sam Rowe’s Career Trajectory

Barry Ritholtz (02:16): "What happens when the best business decision you can make is to change businesses? What's the best way to redeploy your skill sets in the modern age of artificial intelligence and changing business models?"

Sam Rowe opens up about his unexpected transition from aspiring Wall Street professional to renowned financial journalist. Initially aiming for a career in equity research, Rowe's exposure to asset valuation at a law firm ignited his passion for understanding the blend of hard sciences and human behavior in finance. This curiosity led him to Forbes' investment newsletters, marking the beginning of a dynamic career in financial journalism.

Sam Rowe (03:30): "This is the first time I started to realize that how asset valuation worked... There's a lot of soft sciences involved here because you're dealing with human behavior."

The Evolution of Media and Technology’s Impact

Rowe chronicles his journey through various digital-first media outlets, highlighting the significant changes in the media industry's business models over the past few decades. From Forbes' dominance in the late '90s and early 2000s to the challenges faced during the 2008 financial crisis, he illustrates how traditional revenue streams have been eroded by technological innovations.

Sam Rowe (07:04): "I think it was late in my Business Insider days and early in my Yahoo Finance days where we started to really begin to understand how much digital news sites were beholden to the traffic coming from places like Google Search and social media platforms like Facebook."

Rowe emphasizes the diminishing returns of traditional advertising models, as advertisers pivot towards more effective channels like influencer marketing on platforms such as TikTok.

Transitioning to Independent Platforms: The Substack Movement

With the decline of traditional media revenues, Rowe discusses his transition to launching his own Substack newsletter, Ticker (tker), in 2022. This move symbolizes a broader trend where journalists and content creators seek autonomy and direct engagement with their audiences.

Sam Rowe (08:27): "If you can keep your costs low... if you have an audience and if you are sort of very deliberate about who your audience is and how big that audience can get, then you can have the revenue to cover that cost and you can have a nice small business like what I'm doing now."

Ritholtz probes into the inversion of traditional media roles, where writers now bear the responsibility of building subscriptions and managing business aspects, contrasting with their former roles focused solely on content creation.

Barry Ritholtz (09:04): "Substack really inverted the traditional media model... writers now earn money based on their subscriptions, which are driven in part by their content, but also their marketing savvy, their branding, their reputations."

The Diminishing Role of SEO and Search Engines

A significant portion of the discussion centers on the declining effectiveness of Google Search as a traffic driver for media sites. Rowe acknowledges the challenges posed by algorithm changes and the "crapification" of search results, which inundate users with low-quality content and diminish the visibility of reputable sources.

Sam Rowe (12:21): "I think it's probably hurt the large media companies significantly. I think Wall Street Journal had a fabulous article about how much search traffic digital media sites were getting from Google. And it's all shrinking—it has collapsed."

This decline forces content creators to pivot towards alternative means of audience building, such as direct subscriptions and word-of-mouth promotion.

Challenges and Benefits of Independent Writing

Rowe candidly discusses the trade-offs involved in moving away from large media organizations to pursuing independent journalism. While enjoying greater autonomy and flexibility, he highlights the loss of certain benefits associated with traditional employment, such as comprehensive healthcare, technical support, and the collaborative environment of a newsroom.

Sam Rowe (13:43): "The most difficult part... having access to really great healthcare for a very cheap price... and then there are intangible values like being surrounded by passionate people and having the opportunity to bounce ideas off each other."

Conversely, he appreciates the reduced time spent in meetings and the ability to focus more on content creation without corporate constraints.

Sam Rowe (14:55): "As an independent writer, I'm not in nearly as many meetings as I used to."

Advice for Aspiring Career Changers

Concluding the conversation, Rowe offers pragmatic advice to individuals contemplating a shift to independent content creation or entrepreneurship. He encourages aspiring writers and professionals to take the plunge, leveraging low-cost platforms to test their passion and capacity for self-driven work.

Sam Rowe (15:06): "You just have to go out and give it a shot. It doesn't cost anything to start a website or a blog on any of these newsletters, especially if you start off free."

He also touches on the emotional aspects, acknowledging the solitary nature of independent work but highlighting its potential therapeutic benefits and the satisfaction of connecting with an audience that finds personal value in one's content.

Sam Rowe (15:26): "It can be very lonely. And then some people find that it's therapeutic or it's a way to keep themselves organized."

Conclusion

Barry Ritholtz wraps up the episode by emphasizing the importance of adaptability in the face of technological disruption. He advises listeners to stay informed about how technology is reshaping their industries' revenue and profit models and to proactively manage their career trajectories to better align with evolving business landscapes.

Barry Ritholtz (16:00): "If you're thinking about changing careers, you should be paying attention to technology, what it's doing to your field's revenue and profit models. Understand how technology is changing the way businesses are being done—it's usually better to jump than to be pushed."

Key Takeaways:

• Technological Disruption: Traditional media business models are under significant threat from digital platforms and changing consumer behavior.

• Shift to Independence: Platforms like Substack empower journalists and content creators to establish direct relationships with their audiences, bypassing traditional media gatekeepers.

• Decline of SEO Reliance: The effectiveness of search engine optimization for driving traffic has waned, urging creators to explore alternative audience-building strategies.

• Balancing Autonomy and Challenges: While independence offers greater control and flexibility, it also comes with challenges such as loss of corporate benefits and potential isolation.

• Proactive Career Management: Staying adaptable and informed about industry changes is crucial for career resilience in a rapidly evolving economic landscape.

For those interested in navigating business model changes and understanding the future of media and content creation, this episode offers invaluable insights from an industry veteran navigating these shifts firsthand.