Posts from July 2009

The license to fail

The only hand I remember getting at the Personal Democracy Forum was when I suggested that government must be granted the license to fail – and we’re the ones the grant it – so it can have the courage to innovate. The culture of government doesn’t allow failure, which means it won’t tolerate risk.

Now see Craig Newmark returning from the UK, seeing a larger culture of failurephobia there and the impact that has on innovation, technology, and business:

I was struck by the repeated comment that failure is stigmatized in UK business culture. In Silicon Valley, failure is just a normal phase of one’s career. You might succeed in your first endeavor, probably not, so you’re ready to persist in subsequent efforts…..

That’s generally true in Silicon Valley, maybe needs to be true in the UK and maybe everywhere else.

I’m thinking a lot about this lately: the need to risk and fail and not hold perfection as the standard of success.

Tripping the future

In an Economist interview, Slate’s Jacob Weisberg says “the leading news organisations have a stake in web-only newspapers not working because they will accelerate the decline of the large, if faltering businesses that revolve around print.” Cynical and true, I’m afraid.

Once smaller, more efficient, more collaborative, more quickly profitable online-only operations start working – and they must, or we’re all doomed – then it will force the big, old guys to utterly transform and radically shrink their businesses or die. Or it will inspire lots of new competitors to spring up and kill them. These days, I’m betting on the latter.

All the incumbents are fighting is inevitability. The losses at big, old print operations are simply unsustainable. As I said the other day, startups can come in and craigslist (as a verb) not only their advertising but also their content and distribution businesses. The legacy players have proven to be unwilling to disrupt themselves; that’s what Jacob is saying. So how do we get to that radically restructured future? Not through incrementalism but through transformation or death.

Now the FCC cares about journalism

First John Kerry and then the FTC fretted about journalism and what government should do and now FCC Commissioner Michael Copps is swinging his worry beads. CNSNews.com (I hadn’t heard of it before) says Copps is circulating an internal Notification of Inquiry (a step toward rule-making) about journalism and TV hinting at requirements for stations to provide journalism in the public interest and at possible government support.

Journalism and TV: an oxymoron? Well, not always. But often. Local TV news has sucked for years – that horse is out of the barn, over the horizon, and in the glue factory already. Fluff and fires, that’s most of local news on TV. So what is Copps lamenting?

The local broadcast business is going the way of newspapers, only a bit behind and more slowly and without all the attention of self-obsessed print reporters. So what’s to protect?

Local TV news still has, amazingly, the trust of its audience. And it still makes money. So there is a business there. Too bad there’s just so little journalism there.

So I say that Copps shouldn’t be protecting the incumbents or goading them to make more of the same. If he wants to do anything, he should be encouraging new players to compete with local TV and grab some of their attention and dollars.

Scratch that. I don’t want the FCC to do anything that has anything to do with journalism, news, and speech. It’s a bad idea.

The one thing the FCC could do that would encourage more creation of content online, more audience to use it, and thus a better business model would be to get ubiquitous broadband throughout the country. That is the FCC’s job. So, Commissioner, get on with it, please.

It ain’t over

It wasn’t Craig’s fault. It was the internet’s. Almost $10 billion in annual newspaper classified revenue has disappeared (since its 2000 high, versus 2008) and it was essentially replaced by an estimated, unverified $100 million for craigslist with fewer than 30 employees.

But the bleeding ain’t over yet. The stone still has a few more corpuscles to squeeze out.

Look at the newly enhanced Google real-estate search. It’s awesome: useful, fast, informative, entertaining. Put in an address, browse all the homes for sale around. Who needs a newspaper? Who needs a real-estate agent? Speaking of whose death, see Michael Arrington reporting that disruptive, inexpensive real-estate service Redfin is turning profitable. Now see how classified aggregator Oodle is distributing classified ads on Twitter, which has also become the new distribution channel for news (challenging not just newspapers but also craigslist if you’re in the news biz and in the mood for a little schadenfreude).

Of course, this adds onto the the closing of thousands of advertising car dealers; the death of swaths of retail (e.g., Circuit City; and that is far from over, I think); the consolidation of more retail (and then the consolidator, Macy’s, cutting ad spending by half).

But that’s just advertising. I think that other arenas of newspapers’ competence could be targets for similarly disruptive attacks.

In content, I’m seeing that it’s possible for someone to come along with relatively little investment and a much smaller staff that operates more collaboratively to compete with the big, expensive traditional newsroom at low cost.

In distribution, it’s not hard to imagine someone – oh, say, News Corp., which already controls coupons in the U.S. – to take over distribution of other FSIs (free-standing inserts – that is, circulars) and undercut the hell out of newspapers and the postal service. Distributing those ads is the main reason papers want to keep printing at least a day a week, for now.

It’s bad in the industry now but it’s going to get worse as audience shrinks and advertising consolidates or migrates. There’s no quick fix: putting up pay or copyright laws or begging for favors from pols. The only solution is to rethink and rebuild the industry – and to do a better job of it than GM has.

Training the crowd as journalists

In the Philippines, the ABS-CBN TV network has been training citizens – 1,000 in the first recent class, 700 in the next – to report on the upcoming election there. They call it the Boto Mo iPatrol and count 15,000 members. Their curriculum:

They will orient the “patrollers” on the fundamentals of citizen journalism—from shooting pictures or videos using cell phones or cameras, to writing captions and telling a story, to uploading their reports to the Internet. They will also be briefed on the electoral process and the ethics of journalism.

I’ve argued that training is going to be a key role for the professional journalists and news organizations as they learn to collaborate with and empower communities to report on themselves. ABS-CBN News is doing that, gaining thousands of new witness-reporters in a story too large for any news staff to cover alone and adding value to their coverage, including verification.

What Google Would Do

Is Google’s OS the end of the OS – the long-predicted moment when Google and the web take over the PC? Or is it merely the disruptive OS throwing marbles on the floor for Microsoft and to some extent Apple and the software industry? Or will it be a platform and boon for app developers and PC makers and cloud companies? Or all of the above? Yes.

One may try to parse the motives and implications of the move like Latin haiku, but I think it’s simple; it usually is with Google: It saw an opportunity to serve the end user and took it. The more such opportunities it grabs, the more benefit it brings to more people, the more money it makes. Maps, Docs, Reader, Android, book search, translation tools, GoogleNews are all that. Some attempts don’t stick to the wall; some frontiers remain (it has not won in the social web, the live web, the deep web, and the local web); some things Google has to buy; some still don’t have a clear business model. All have competitors; none is a monopoly, though search and advertising appear that way to some.

How does Google win? Its products are generally but not always better and cheaper (read: free) because Google’s real secret is that it understands the economics of the internet and competed aggressively not against technology and internet companies but instead it competed for advertisers, selling performance over scarcity. The more Google serves end users – and the more it learns about them – the more opportunities it has. These are the economics of free.

I know the question of whether Google is too big will be raised when I appear on Brian Lehrer’s show today (at 11a ET) with Siva Vaidhyanathan. That’s the question Lehrer asked Eric Schmidt at the Aspen Ideas Festival:

“You’ll be surprised that my answer is no,” Schmidt responded. “Would you prefer the government running innovative companies?” No surprise that I agree with Schmidt. Lehrer’s point is that banks needed regulation and that information is becoming as important as money (well, he didn’t go that far). But I say government did regulate banks and AIG and did a horrid job of it. And look at the storm to regulate and break up Microsoft, which is no longer a threat but suddenly a victim. Heh. For that matter, look at what the market did to the oligopoly of Detroit and what Detroit did to itself. Clear Channel, Tribune Company, McClatchy – those are examples in media alone. Big has a way of tumbling of its own weight.

In any case, who’s to say what’s too big? We have a cultural problem of admiring big and then hating big; we want you to grow and then we want to cut you down to size. But this notion of being too big is arbitrary, ultimately meaningless if externally defined.

In this new economy, it may be that Google isn’t yet big enough, that it hasn’t brought its services and innovation – and goad to others to innovate – to enough corners of the internet. We will benefit from there being another operating system that opens up the applications and services to invention, breaking the Microsoft (and Apple) duopoly. We will end up getting cheaper applications and more choice among them. We will end up being able to use cheaper machines because our stuff will be in the cloud.

Yes, Google still has room to grow and there’s more benefit we have to gain. I’ll go farther: Google isn’t yet big enough.

: ALSO: Mashable’s questions about the Chrome OS.

: Gigaom’s good analysis of the news:

Today Google went wild and announced its plans to create the Chrome operating system, which it says will be designed to run on netbooks. But it’s really an attempt to keep Google relevant as an advertising powerhouse as consumers begin spending more time playing with web-connected apps than the web itself. It’s the search giant’s reaction to a wholesale change in computing driven by ubiquitous wireless access and mobility. The Chrome OS is another step in allowing Google to create what we’ve called the OS for advertising — an ad platform that extends across all devices and all screens.

Journalistic narcissism

At the Aspen Ideas Festival this week, Andrew Sullivan said, “Journalism has become too much about journalists.”

True. It’s not just that newspapers are covering their own demise as thoroughly as Michael Jackson’s. This is about the mythology that news needs newspapers – that without them, it’s not news.

In an offhand reference about the economics of news, Dave Winer wrote, “When you think of news as a business, except in very unusual circumstances, the sources never got paid. So the news was always free, it was the reporting of it that cost…. The new world pays the source, indirectly, and obviates the middleman.” This raises two questions: both whether news needs newsmen and whether journalists and news organizations deserve to be paid.

I tweeted Winer’s line and Howard Weaver then started a discussion with this tweet: “Is it news if it’s not reported? I don’t think so.” I don’t think he’s saying that the reporting needs to be done by a professional, but he is saying that reporting is what makes news news. Does news need the middleman?

Steve Yelvington just tweeted that “The Washington Post ‘salon’ debacle is a clash between myth and reality on so many levels: ‘the select few who will actually get it done.’” Being needed.

The realization of that myth – the myth of necessity – hit me head-on when I read an unselfconsciously narcissistic feature in The New York Times this week about the room where the 4 p.m. news meeting is held. Guardian editor Alan Rusbridger has likened that meeting to a “religious ceremony.” The Times feature certainly acted as if it were taking us inside the Pope’s chapel: “The table was formidable: oval and elegant, with curves of gleaming wood. The editors no less so: 11 men and 7 women with the power to decide what was important in the world.”

Behold the hubris of that: They decide what is important. Because we can’t. That’s what it says. That’s what they believe.

I was trained to accept that myth: that journalists decide what’s important, that it’s a skill with which they are imbued: news judgment. I worked hard to gain and exercise that judgment. The myth further holds that no judgment of importance is more important than The Times’; that’s why, every night, it sends out to the rest of newspaperdom its choices. News isn’t news until it’s reported and it’s not important until The Times says so.

But why do we need anyone to tell us what’s important? We decide that. What’s important to you isn’t important to me. Why must we all share the same importance? Because we all shared the same newspaper. There is the wellspring of the myth: the press.

I am trying to cut through these many myths about newsso I can reexamine them. In something I’m writing now for another project, I say: “To start, it is critical that we understand and question every assumption that emerged from old realities – for example, that news should be a once-a-day, one-for-all, one-way experience just because that’s what the means of production and distribution of the newspaper and the TV broadcast necessitated.” And: “Owning the printing press or broadcast tower used to define advantage: I own and control the means of production and distribution and you and don’t, which enables me to decide what gets distributed and forces you to come to me if you want to reach the public through news or through advertising, whose price I alone set with little or no concern for competition.”

No more. The press has become journalism’s curse, not only because it now brings a crushing cost burden but also because it led to all these myths: that we journalists own the news, that we’re necessary to it, that we decide what’s reported and what’s important, that we can package the world for you every day in a box with a bow on it, that what we do is perfect (with rare, we think, exceptions), that the world should come to us to be informed, that we deserve to be paid for this service, that the world needs us.

The journalistic narcissism that extrudes from the press extends to so much of the journalist’s relationship with her public. Jay Rosen just tweeted his headline for Plain Dealer Connie Schultz’ return of spitball (below): “A blogger was mean to me so that means I’m right.” John McQuaid tweeted that he feared I was “only abetting Connie Schultz’s effort to turn a real debate into a bloggers vs. MSM culture war.” He’s right. Schultz didn’t address the substantive objections to her hare-brained and dangerous scheme; she made it about her.

Oh, I know, this is all a big set-up for your punchline: A blogger is talking about narcissism? Heh. Isn’t blogging the ultimate narcissism? But who called it that, who made that judgment? Journalists, as far as I’ve seen. When they talk, it’s important. When we talk, it’s narcissism. What we say can’t be important – can it? – because we’re not paid and printed. But I don’t want to replay the blog culture war, which I keep hoping is over. I want to question assumptions, to find the cause and effect of myths.

And that’s what Winer is trying to do when he reminds us that the important people in news are the sources and witnesses, who can now publish and broadcast what they know. The question journalists must ask, again, is how they add value to that. Of course, journalists can add much: reporting, curating, vetting, correcting, illustrating, giving context, writing narrative. And, of course, I’m all in favor of having journalists; I’m teaching them. But what’s hard to face is that the news can go on without them. They’re the ones who need to figure out how to make themselves needed. They can and they will but they can no longer simply rest on the press and its myths.

: LATER: Good discussion in the comments already. I particularly like this from Craig Stoltz:

At the WaPo, where I used to work, the story conference room was decorated with (1) the metal frame with sticks of backwards type that was used to print the “Nixon Resigns” front page [it is said that that wall had to be reinforced to bear its weight--myth?]; (2) a framed Post advertisement from the early 70s reading “I got my job from the Washington Post,” which Gerald Ford was good-natured enough to sign; (3) two columnar shelves of important tomes written by Post staffers over the years; and, yes, (4) a polished wooden table whose craftsmanship and sheen suggested the Pedestal of Truth.

No coffee was allowed in the room.

Confession: Every time I was in that room I felt inspired, breathed in the myth, absorbed the history and mission that made the Post such an extraordinary institution [and which makes these week's "salon" disaster so heartbreaking].

That room and the myth it conveyed may have made me a better journalist.

I suspect it made me a more arrogant, and therefore ultimately vulnerable one.

: In Twitter, Aaron Huslage asks: “How is curating journalism different from the NYT editorial meeting? isn’t it, at heart, picking ‘what’s important’?” And I responded: “Now it doesn’t have to be one-for-all. And it’s not necessary what’s ‘important’ (as the NYT says) but ‘relevant’ (Google’s goal).”

: Juan Antonio Giner takes apart the Times room: an analog space for a digital age.

: Tim Russo responded to Schultz, though she refused to respond to him.

: ANOTHER great comment, this one from David Weinberger:

May I add one more, related, myth to your collection, Jeff? Here goes: It’s possible to _cover_ the day’s events.

This is just a different way of putting your formulation “One man’s [sic] noise is another man’s news.” But I think it’s worth calling out since the promise of global sufficiency is a big part of traditional newspapers’ promise of value to us: “Read us once in the morning, and after going through our pages, you will know everything you need to know.” (Do radio stations still make the ridicule-worthy “Give us 8 minutes and we’ll give you the world?” claim.) Yeah, no newspaper would ever maintain that claim seriously if challenged — they know better than their readers (or at least they used to) what they’re leaving out — but it’s at the base of the idea that reading a paper is a civic duty. The paper doesn’t give us _everything_ but it gives us _enough_ that reading one every day makes us well-informed citizens.

The notion that newspapers give you your daily requirement of global news — which works to wondering, along with Howard, if there is such a thing as “news” — seems to me to be as vulnerable as the old idea of objectivity. Like objectivity: (1) It’s presented as one of the basic reasons to read a newspaper; (2) it hides the fact that it’s based on cultural values; and (3) it doesn’t scale well in the age of the Net.

Ultimately, this myth is enabled –as so many of the myths of news and knowledge are — by paper. Take away the paper and the newspaper doesn’t become a paperless newspaper. It becomes a network. That’s what’s happening now, IMO. From object to network … and networks are far far harder to “monetize” (giving myself a yech here) than objects….

: In the comments, Jay Rosen says narcissism is an even more apt metaphor than (he thinks) I know:

Jeff: You should improve your grasp of what narcissism is. The term is commonly used to mean self-absorption or excessive self-regard (“it’s about meeeee”) but that’s a subtle misunderstanding. True narcissists have a weak concept of self because they often don’t know they leave off and the world begins. In the clinical sense, key features of a narcissistic personality disorder are grandiosity and a lack of empathy.

I’m not trying to correct you; I’m saying that if you look closer at what pathological narcissism is, beyond its pop culture meaning, this might allow you to strengthen your critique. For example, equating newspapers with democracy is grandiose in the extreme, right? The prize culture could be connected to the “need for admiration,” and so on. It may be a better metaphor than you have let on here– and worth developing. Cheers.