Newzingo !!

Check this site out. The interesting part is not what the site does using Google News. It is how it makes money using Google News, while Google still does not make money from Google News !!

And actually, Newzingo helps Google make some money too by using Google AdSense. But Newzingo will certainly get a better cut than Google. This very similar to how companies like Google who make more money than broadband providers whose networke drive Google's business, which could change in the coming years.

The moral of the story is: it does not matter how innovative you are in product development. It is crucial to be present in that part of the value chain which delivers the maximum value to you and essentially, get the revenue model right.

There are numerous examples where someone creates the core product and someone else ends capturing more value relatively:

• Microsoft did this to the all companies which worked hard to deliver the concept of a 'PC'
• iPod is doing this to the music industry, essentially deriving most of its value from pirated music

But everyone might not be able to take this value stealing to the last penny like what Microsoft has been able to do. The music industry is already asking Apple for a share in the value it creates.

It should be interesting to see how such things get resolved.