Posts about information

Geeks Bearing Gifts: The Pricing Paradox of Information

This chapter from Geeks Bearing Gifts deals with a fundamental strategic question for the future of news: Why does the information business suck? Does it need to? Yes, it does. Here’s the start of the chapter. You can read the rest here.

Screenshot 2015-04-20 at 8.51.51 AM

In Adam Smith’s paradox of value, he wondered why, if water is vital to life and diamonds are not, diamonds are worth so much more than water. The pricing paradox of information presents a similar quandary: If information is so much more valuable to society than entertainment, why is it so hard to build a business — namely, journalism — around selling access to information? Journalism at its most useful is information-rich but information is quickly commodified. Entertainment, on the other hand, is unique and engaging and — for reasons I’ll explain in a moment — receives greater legal protection under copyright than information does. We have conflated journalism as an information business with entertainment as an engagement business in large part because both are are built on “stories.”

Information is less valuable in the market because it flows freely. Once a bit of information, a fact, appears in a newspaper, it can be repeated and spread, citizen to citizen, TV anchor to audience: “Oyez, oyez, oyez” shouts the town crier. “The king is dead. Long live the king. Pass it on.” Information itself cannot and must not be owned. Under copyright law, a creator cannot protect ownership of underlying facts or knowledge, only of their treatment. That is, you cannot copyright the fact that the Higgs boson was discovered at CERN in 2012, you can copyright only your treatment of that information: your cogent backgrounder or natty graphic that explains WTF a boson is. A well-informed society must protect and celebrate the easy sharing of information even if that does support freeloaders like TV news, which build businesses on the repetition of information others have uncovered. Society cannot find itself in a position in which information is property to be owned, for then the authorities will tell some people — whether they are academics or scientists or students or citizens — what they are not allowed to know because they didn’t buy permission to know it. Therein lies a fundamental flaw in the presumption that the public should and will pay for access to information — a fundamental flaw in the business model of journalism. I’m not saying that information wants to be free. I agree that information often is expensive to gather. Instead I am saying that the mission of journalism is to inform society by unlocking and spreading information. Journalism frees information.

Read the rest here.

If you can’t wait for the rest of the book, then you can buy it here.