The implication of this is huge. Inherently, the other networks are saying that the White House is wrong and Fox News is a network. It also means that the rest of the news networks aren't necessarily going to roll over and fold like some conservatives assumed in this battle. In fact, it appears the rest of the media sees this not as a battle of liberals versus conservatives but the media versus the White House. As such, the White House appears to be putting themselves out there against the entire media.
The New York Times had a very revealing article about all this. Here's the pertinent portion.
We simply decided to stop abiding by the fiction, which is aided and abetted by the mainstream press, that Fox is a traditional news organization,” said Dan Pfeiffer, the deputy White House communications director. Later that week, White House officials said, they noticed a column by Clark Hoyt, the public editor of The Times, in which Jill Abramson, one of the paper’s two managing editors, described her newsroom’s “insufficient tuned-in-ness to the issues that are dominating Fox News and talk radio.” The Washington Post’s executive editor, Marcus Brauchli, had already expressed similar concerns about his newsroom.
This is a startling admission from the White House. They've just admitted that their characterization of Fox News as not necessarily a news organization as nothing more than a cynical ploy. In fact, what the White House was really worried about was that the rest of the media was beginning to notice that their inability to catch the stories that Fox News was catching (Van Jones, ACORN, etc) was hurting them. The White House was worried that if this trend continued the MSM might start to make a habit of reporting on the news that Fox News covers and that scared the White House.
Only then did the White House start to suggest that Fox News isn't a real news station. They followed this assertion with the suggestion that other news stations shouldn't then follow their lead in covering stories. All of this most of us suspected and now the White House, in a stunning bit of hubris, has confirmed.
The story now has legs as it continues to evolve and change. The White House has officially lost. They tried to bully the press and the press stood up to them. Furthermore, it was members of the MSM that dug deep and got the truth out of the White House and the White House even admitted that this was nothing more than a cynical ploy to marginalize a news organization that ran stories that embarrassed the White House. All of this was not only cynical but totally incompetent.