Posts about capital

Geeks Bearing Gifts: The final chapters

I’ve just posted the final chapter — and an afterword on journalism education — from Geeks Bearing Gifts: Imagining New Futures for News. So it’s not all online for free. But you can buy the book here.

This last chapter is about the impatient innovation but patient capital we will need to reinvent news and find new, sustainable business models. Here’s a sample:

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In the development of the internet and of news in its age, we are — as I write this — only two decades past the introduction of the commercial browser and web in 1994. In Gutenberg years, this is 1470. I doubt we can yet imagine how society will inform itself. We have been too busy trying to save the news we knew to invent what news will be. As far as the newspaper was from the town crier and the balladeer, so will news of the future likely look unrecognizable to us today. There is much innovation, invention, development, risk, and failure yet to come. I am more concerned about funding that work than keeping afloat the ongoing operations of legacy news organizations, for it’s that investment that will build the future. . . .

News’ rebirth requires investment at every level: to get beat businesses off the ground and multiplying to scale (tens of thousands of dollars each); to build new and larger-scale news enterprises (low millions of dollars); to innovate and experiment in and rebuild the legacy news companies that survive (tens of millions of dollars each); and to build the technologies that will facilitate the development of new forms of news (anywhere from from a few thousand dollars in a Kickstarter campaign to hundreds of millions for the next Twitter or Google). Where will this money come from? We don’t have enough friends-and-family money and enough charitable and philanthropic dollars to support all that needs to be done. Private equity and hedge funds will not have the long-term perspective needed for this work and the stock market certainly does not. Venture capital? When I visit VCs in Silicon Valley or Alley and argue that there are opportunities in the future of news and journalism, I am often met with polite, sad smiles. Yes, some say, you have opportunities, but not as worthy as those from technology companies. We don’t invest in content, they say. Venture capital is predicated on earning huge returns building disruptive technological platforms that scale. Journalism — content — doesn’t scale. They’re right. This is one reason why I think we must get out of the business of primarily making content and get into the business of building, adapting, or distributing platforms that enable people to share their own information, adding journalistic value to that process (sometimes with content). This is the relationship strategy. I also believe that in many areas — especially local news — scale will come not from the top-down (à la Patch) but instead from the bottom up with the messy, disorganized proliferation of beat businesses: free-agent-nation, mom-or-pop news bakeries. I do not imagine — and do not want — to think that a single behemoth, a Google or Facebook or (heaven help us) a Comcast or Verizon of news, will suddenly rise up to meet all our journalistic and information needs. Venture capital has indeed funded some media ventures, like BuzzFeed, Business Insider, Vox Media, and Vice. Some of these are transitional companies that cleverly exploit opportunities and vulnerabilities in the present marketplace — search-engine optimization or social optimization, for example — but still largely operate under the old, mass-media economics of volume.

And a snippet from the afterword on journalism education:

We face the challenges every journalism school faces today: how to teach change; how to teach enough tools so students leave proficient in them without letting that rob vital time from the teaching of the basic skills and verities of journalism; how to stay ahead of change in the field while still preparing students for the jobs that exist today. It’s not easy. But there is no better time to teach journalism and no better time to become a journalist. Youth, I tell my students, used to be something to get over. Now youth is an asset. Our students today are not only more technically skilled than we could be, they see the world in new ways. I urge them to guard that fresh perspective and to use it to question and challenge all of our assumptions so they can imagine and build a new future for journalism.

I hope you’re finding value in the book. Please pass it around.