The Economics of Business Insider

Felix Salmon reveals the stark truths about Henry Blodget's online news machine:

[T]here’s reason to be concerned about what Blodget’s team has sacrificed along the way. It’s worth noting that venture-backed media companies can very much be in a race against time for growth. Investors want a return on their money and, given the economics of web news, that almost always requires exponential growth in uniques and pageviews.

See also Marco Arment's analysis of Business Insider's copy-and-pasting of his material.

Update: And Business Insider responds to Arment (with aplomb)!

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