I always find business models interesting when they are based on the potential actions of a single company. What if Google decided to not search/index any demand media content?
Secondly I would add to the argument that there has always been bad content on the web. The content my hometown newspaper (The Sacramento Bee) produces is nearly mutually exclusive to what is on Demand Media produces. Local politics and local journalism of all types is rarely something that is covered by content farms such as Demand Media.
The bottom-line is that, practically speaking, I have never had content farm articles crowd out any search I have ever done for news.
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