When Google changed its search algorithm last month, Demand Media took a serious hit. According to a comparison by Conductor, the search visibility of Demand Media's eHow site dropped significantly, which explains why the company saw a notable drop also in stock value. The rumours around the company were so pessimistic that it was forced to issue a statement defending its finances.
The California-based Demand Media, which according to Reuters has 13,000 freelancers writing to its sites such as eHow and LiveStrong, is now taking measures to step up the content of its sites. In an interview with MediaShift, Larry Fitzgibbon and Jeremy Reed from Demand Media described the course the company is next taking. Some of the changes sound very much like steps towards a more traditional journalistic model.