Posts about newbiznews

Playing leapfrog and werewolf with Google and Facebook

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First Google made its friendship pact with eight old, European publishers, vowing to innovate together. Then Facebook leapfrogged Google — by a considerable distance — launching its Instant Articles with nine publishers, old world and new, inviting them into its mobile News Feed and helping them make money to boot. Now it’s Google’s turn to leapfrog Facebook. We like this game.

That opportunity for publishers — to build upon these positive steps — is what I, for one, emphasized this weekend in more than one session at Google’s excellent gathering in Helsinki, Newsgeist Europe, an unconference where we the participants chose what to talk about. Among other topics, we chose to talk about what Google could do for news, about Facebook as the new distributor — and sometimes editor — of the news, and about at least one idea to take advantage of that new reality.

That idea is something Google News chief Richard Gingras and I advocated at the last Newsgeist in the U.S., something I’ve been working on for years: the containerized, embeddable article that travels to any site with brand, revenue, analytics, and links attached. In other words, let’s take what Facebook has done with Instant Articles and open it up to any creator and any embedder. I was delighted to hear serious discussion of the notion at this Newsgeist, opening the door to reimagining the distribution of news so that instead of always requiring and depending on our users to come to us, we can now take our news to them.

Now there are many many issues and questions around this model, and you can count on a circleful of journalists to raise them all: how distributed news affects the business of journalism and how both creators and distributors can share in the value they make; the power and responsibility our new distributors hold over the dissemination of information and whether they will act as protectors of news or as censors or catalysts for cat lists; whether creators will get the specific user data they need to build relationships of relevance and value with the people they serve (that is the key issue, I think).

But if we’re honest with ourselves, we will recognize that the horse — and the article — have left the barn. Facebook was already a primary source of audience — links and clicks — for news. Now it will be a key distributor of complete content. You can bet that others will follow, taking what they already have — Twitter with its cards; Snapchat with Discover; Amazon with the Washington Post on its Kindle; Google and Apple with their newsstands — and finding ways to embed content with business model attached into the streams they deliver. Note also that we could find ourselves in a nightmare of publishing content 20 ways on 20 platforms using 20 CMSes in 20 business deals that we don’t control, struggling to make sense of too little data from each.

Publishers could take the lead and create open-source standards and structure for distributed news. But news publishers have proven to be awful at collaborative consortia (see: NCN) and worse — much worse — at technology. And this is no trivial task, as Repost.US learned when it couldn’t sustain its wonderful rendition of the embeddable article (for reasons I explore in Geeks Bearing Gifts). If we’re going to do this, we need help.

Who will help? I suggested Google, which could build the structure openly, adding its own services — ad sales, ad serving, hosting — as options. In the discussion, some feared that Google’s direct involvement beyond funding the project out of its European bribery — er, I mean innovation — fund would give the service cooties. Gift horse: mouth. Well, then Facebook could open up its lovely platform and CMS and make it possible to embed Instant Articles anywhere.

Note well the position that news publishers are in now. And a fine position it is: Google, Facebook, and potentially other powerhouses are finally competing for our affection to keep the wolves — that is, European regulators — at bay.

It’s metaphorically convenient that the favorite recreational activity at Newsgeists is a game called werewolf, which is all about mistrust. Suspicion has been the basis of the relationship between publishers and platforms. That atmosphere of wariness and warring was brought on by a campaign waged against Google by German publishers Axel Springer and Burda, using their considerable political clout to enlist politicians to pass laws and launch antitrust investigations disadvantaging the American technology giant. Google’s peers — Facebook, Amazon, Apple — are well aware that Old Europe’s pitchforks could be launched at them next. So though I did not like the tactic — because it is leading to dangerous if unintended consequences that could imperil an open net as well as European innovation — I must give credit where credit is due, to Springer and Burda, for bringing Silicon Valley to the table if not to its knees. Credit to Google and Twitter for talking. Credit to the publishers that are working with each, seeking peace in the kingdom. Group hug.

Now the game shifts from werewolf to leapfrog. Now we in journalism get to stand back and see technology titans jump over each other to bring benefits to news. But we’d best not stand back too far. We journalists and publishers must collaborate with the platforms as we demand that they collaborate with us. And as they teach us about technology, we must teach them about journalism.

By that, I mean that as platforms take on the role of distributor and (I lament this word) gatekeeper for news, we must help them understand the responsibility they are assuming. Mark Zuckerberg cares about a connected society. Does he also care about an informed society? I believe he does — witness his proper pride at seeing his platform being used by freedom fighters. Now Facebook must find the courage to publish and protect uncomfortable news, for real news, impactful news is almost always difficult news. It must fight to be open to diverse and often dissenting voices and viewpoints in the face of pressure from censors and tyrants, which will surely grow now that Facebook is carrying more news that matters. And as Facebook benefits from the content — the journalism and service — that publishers provide, then it does bear some responsibility to consider their business needs (and I’m delighted that Facebook did just that, offering publishers revenue with distribution via Instant Articles).

My friends Emily Bell, Jay Rosen, and George Brock have written about these concerns, as have I. I don’t think any of us would expect Facebook to produce all the answers overnight; indeed, we should not want them to make these decisions alone. What we do expect of Facebook, Google, and the other platforms is an open and substantive conversation about these principles. And they should expect from us a spirit of generosity and collaboration. We all now recognize that we live together in an ecosystem of information, technology, and service. We must build and maintain it together.

Unconferences, innovation funds, education, and especially new products like Instant Articles will help do that. But group hugs aren’t enough. We don’t just need to embed articles. We need to embed and educate people on both sides of this cultural divide who can understand and translate the differences and, more important, find opportunities of mutual benefit. These are not merely ambassadors doing biz dev and PR. They don’t just make each side smarter. They must make shit happen. They must build things. That means having technologists in the management of news companies and journalists in the product stream of technology companies.

I can imagine countless ways in which collaborative technologists and journalists can build great services for the public we serve. Traveling articles are just one example, a starting point. There were others raised at Newsgeist.

At this point, I know what many will say in the comments wherever links to these thoughts appear: “Well, I just don’t trust Facebook/Google/etc.” “They will pull the rug out from under us.” “They will never do what we want.” “They will serve their own interests.” Well, of course, they will serve their interests. They are businesses. But it’s no longer accurate to say that they cannot also benefit us or that they will not listen. Who’d have imagined — many at Newsgeist confessed they couldn’t — that Facebook would not only invite publishers into its precious stream but also let them keep 100% of the ads they sell for the privilege. Who’d have imagined that even Springer’s Bild would sign up for the deal? Who could have pictured the warm and substantive interaction of journalists, publishers, and Googlers this weekend in Europe?

The sensible, mature, productive way to enter negotiations is not to stomp away. The smart thing to do is to craft business terms. That’s what I teach my students. What would make you do a deal with the titans now that they are willing to talk? What would protect you against your concerns? What do you have that they want and what do they have that you want? Where is their mutual benefit for your businesses and — here’s the only thing that matters in the end — for the people we all serve?

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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.

I, for one, welcome our new newsstand

newsstand

Facebook just gave publishers almost what I was wishing for. It is enabling news companies to go to readers where they are (we used to call that home delivery), embedding their articles, photos, videos — and ads — in users’ streams of attention and keeping all the revenue they sell or a share of the ad revenue Facebook sells. They call it Instant Articles because it saves users the time of clicking on links and waiting for web pages to load. It’s a start, a good start.

I wish that Facebook would also work to share data about users at their option so news companies could serve those users with greater relevance and value and learn to build relationships with the public as individuals and communities rather than as a mass. Here, I suggest how that could happen. For now, Facebook is allowing publishers to track some usage data. One thing at a time.

In Facebook’s blog post announcing the deal, its chief product officer, Chris Cox, says: “Fundamentally, this is a tool that enables publishers to provide a better experience for their readers on Facebook. Instant Articles lets them deliver fast, interactive articles while maintaining control of their content and business models.”

The post continues: “Along with a faster experience, Instant Articles introduces a suite of interactive features that allow publishers to bring their stories to life in new ways. Zoom in and explore high-resolution photos by tilting your phone. Watch auto-play videos come alive as you scroll through stories. Explore interactive maps, listen to audio captions, and even like and comment on individual parts of an article in-line.”

I await much gnashing of teeth over the deal. Actually, I don’t have to wait. My Twitter feed was peppered yesterday with fretting over Facebook and news, for example:

Sigh. What are we supposed to do: ignore the audience on Facebook, stomp our little feet, and take our balls and go home, expecting users to always follow us to our home pages? Last week, I had this discussion with my students, trying to get them to focus on the business terms of a negotiation with Facebook over embedded content. It was hard to get some of them past typical media emotions: not liking or trusting Facebook, worrying about rugs being pulled out in the future. These are deal points that can be negotiated. And at least Facebook wants to negotiate.

Indeed, at last, both Google and Facebook are ready to talk. Two weeks ago, Google signed a friendship pact with eight European publishers. Now Facebook has made its deal with nine — take that, Google! — publishers, not just in squeaky-wheel Europe but also in America: The New York Times, National Geographic, BuzzFeed, NBC, The Atlantic, The Guardian, BBC, Spiegel, and Bild. Note that the last one, Bild, is owned by Axel Springer, which has led the European war against Google, forcing it — and by extension, Facebook — to come to the table.

This is good news for news. At Facebook, the head of product — which is the center of power at a technology company — has made it clear that news matters to the company. Late last year, Facebook released new products for news media. Meanwhile, Google is promising to develop products with publishers and give grants for innovation and this weekend, it is holding its second Newsgeist summit in Europe (I will be there).

This is only a start. Further negotiation is needed to assure trust and more strategic benefit to news companies. And there is much serious discussion that must be held with these technology companies about their responsibility not to publishers but to society. For now these platforms are taking on the role of not only distributing but even editing the news the public sees. These are not easy questions with easy answers.

If news and technology can come to terms, we can begin to reinvent journalism in a distributed world with new business models. I’ve been suggesting that publishers consider starting new services — and new businesses — inside Facebook if the company will make that feasible. We in media can’t do it all by ourselves anymore. We are no longer monopolies in control of content and distribution from top to bottom. We now live in ecosystems where we must work with others. Get used to it. Find the opportunity in it.

LATER: On Facebook, appropriately, my friend Emily Bell asks five questions about the Facebook deal. OK, I’ll take the quiz:

1. How much revenue will this return to NYT vs its other distribution strategies?

First, given that Facebook allows publishers to place their own ads on their content and keep 100% of that revenue, then on an article-by-article basis, the revenue should be a wash. Except that if the paper recognizes a big bump in incremental circulation, then this is additional revenue. If the paper chooses to let Facebook sell the ad and take a revenue share, then I assume it does so because Facebook can get higher revenue and thus it’s a revenue increase.

But, of course, the value isn’t only in the direct ad sales. It is also in the potential to start a relationship with a new customer leading to other revenue: traffic to and ad revenue from visits to the publisher’s site and, in The Times’ case, subscriptions. This is more unknown. I recently spoke with a publisher who started putting videos on Facebook — no revenue yet — but found that they drastically increase the number of people who follow the publisher there, which, it’s hoped, leads to more business in the long run. We shall see.

All this is why I think it’s vital that we begin calculating the lifetime value of individual users and relationships, so we can calculate all this.

2. Who bears the publishing risk for the pieces FaceBook publishes?

That’s a different question in the U.S. than elsewhere. In the U.S., we are blessed with a First Amendment for digital, Section 230, which gives Facebook safe harbor.

Legalities aside, we know that Facebook does take responsibility for policing content, including that from publishers, according to its community standards [as if there could be one standard for one community in the world — but that’s another discussion]. At the International Journalism Festival in Perugia, there was much discussion of Facebook penalizing the respected Scandinavian paper Berlinkse for photos with nudity appropriate both to its journalism and its culture. This, of course, is disturbing: Facebook as editor; Facebook as censor. This is why, as I suggest above, it is urgent that we have a substantive discussion with and about Facebook — and Google and Twitter — in regard to their roles potentially as gatekeepers. That is why they need to have more sophisticated voices inside their organizations to grapple with these significant issues.

3. How will it change the NYT’s digital journalism given that richer interactive presentations won’t work in this format?

But then again, Facebook is providing new functions appropriate to its platform. We must learn to present news appropriate to platforms, use cases, and user contexts. Katie Couric doesn’t do a thirty-minute show on Snapchat Discover; she delivers what is appropriate there. Same goes for this. The Times and these other publishers should find ways to present news in new ways for new uses.

4. How much data does the NYT get access to from FB?

This is *the* key question. As I made clear above and in earlier posts, I believe we in news *must* get information about our users that enables us to serve them with greater relevance and value and thus to extract greater economic value in return. Now I have heard people from *many* technology companies say in response to this idea that publishers wouldn’t know what to do with that data if they had it. True, tragically true. But therein lies an opportunity for these technologists: teach us in media how to build and serve and extract value from relationships with known individuals; cure us of our mass-media ways … please.

5. How much further is FB likely to go in turning itself from a platform to a publisher? Will it hire editors, other journalists etc?

Facebook, Google, Twitter, et should not and should not want to become publishers, in my view. It creates tremendous channel conflict. It invites antitrust scrutiny. It limits the scope of the content they can present.

That said, I do think that these companies need to import editorial sensibilities — particularly about professional standards and ethics and the issues outlined above. So far, that hasn’t worked terribly well. I do not think that editors should be imported as news cops or consultants. I think they should be integrated into the process of product development, where relevant, to bring a better sense of both the opportunities and the responsibilities.

And while I’m involved in a seminar with my friend, the good Prof. Bell, let me add this from her on Twitter:

My answer: Yes, or we are doomed.

Last weekend in the German magazine Focus, a guest commentator argued that publishers in Google’s friendship pact had made a Faustian deal with the devil. (I’d link to the article but I can’t because, like an riddle in an enigma, it’s trapped inside a paywall inside a PDF.) This professor is essentially urging journalists and publishers to become digital isolationists. I say that is both impossible and irresponsible. The means of production and distribution in media made a small oligopoly of rich and sometimes monopolistic owners sole proprietors of the entire chain of value, from reporting to presentation to production to distribution to sales. Well, my friends, those days are over. Over. Once again, we have no choice but to operate inside the new ecosystem of users’ choice and we have no choice but to find new ways to sustain our work. Somebody I know wrote a book about that.

ONE MORE THING: So Facebook’s Instant Articles are available only in iOS? Really, Facebook? Really? So what are the more than half of us using Android phones? Chopped liver? Shit. Here I defend the new product and I can’t even see it. Garg.

Geeks Bearing Gifts: The Link Economy and Creditright

Here (after a delay … sorry) is another free chapter from Geeks Bearing Gifts. This one explores the idea that we need a marketplace that values not just content but also the creation of an audience for it, and how that might occur. This is a critical topic as we look at distributing news off media’s own sites and through Facebook and other platforms and streams. You can read the entire chapter here; a snippet:

There have long been two creations of value in media: the creation of content, yes, but also the creation of a public — an audience — for it. In legacy news media, the two were usually attached: the creator and the distributor were one in a vertically integrated enterprise (read: a publication). We often debated whether content or distribution was king. The answer didn’t much matter because they were inseparable; they shared the throne. Now these two tasks are — like so much else online — unbundled. Anyone can make content. Anyone can distribute content: its creator (inside or outside an institution), a reader who recommends it, an aggregator or curator who collects it, a search engine that points to it.

Media people tend to believe that content has intrinsic value — that is why they say people should pay for it and why some object when Google quotes snippets from it. But in an ecosystem of links online, new economics are in force. Online, content with no links has no value because it has no audience. Content gains value as it gains links. That formula was the key insight behind Google: that links to content are a signal of its value; thus, the more links to a page from sites that themselves have more links, the more useful, relevant, or valuable that content is likely to be.

The problem for us in the media industry is that we have no marketplace to value the gathering of links and audiences. Our systems are still built primarily around extracting the value of content: paying creators to make it; buying or subscribing to publications that contain it; or syndicating it from one publication to the next. These models are being made obsolete. Huffington Post and Twitter can get thousands of writers — including me — to make content for free because it brings us audience and attention. Selling content is difficult when you compete against others who offer content for free. And syndication is all but outmoded, for why should I buy a piece of content if instead I can link to it for nothing?

Consider an alternative to syndication. I’ll call it reverse syndication. Instead of selling my content to you, what say I give it to you for free? Better yet, I pay you to publish it on your site. The condition: I get to put my ad on the content. I will pay you a share of what I earn from that ad based on how much audience you bring me. That model values the creation of the audience. When The New York Times complains about Huffington Post summarizing its articles, perhaps The Times would be better off offering Huffington Post this deal: Take our stories but keep them intact with Times branding, advertising, and links. We’ll give you a share of what we earn for each story based on the size — and perhaps quality, as measured in attention and demographics — of the audience you bring to it.

For that matter, why should media always force our readers to come to us? Why shouldn’t our content go to them? Before Gutenberg’s press, scholars had to travel to books; after Gutenberg, the books traveled to the scholars. We’ve long had home delivery for newspapers, magazines, and TV, so why not extend that service to content on the web? For years, I had wished for a means to make articles and blog posts embeddable on other sites, just like YouTube videos. If content could travel with its business model attached, we could set it free to travel across the web, gathering recommendations and audience and value as it goes, and thus ending at least part of the fight over the question of whether aggregation is theft.

Read the rest here.

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

Content in the social Mode

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One underestimates Samir Arora at one’s peril.

Under most everyone’s radar, he built Glam — since rechristened Mode Media — as the seventh largest web property by audience, with 155 monthly unique users in the U.S. and 406 million worldwide. He did that by building a network. That’s what brought us together: our belief in the power of networks. (Disclosure: For a time, I advised Glam.)

Then Arora started experimenting with other forms of media. He opened Foodie as a curation tool gathering food photos with links to recipes and he found out how much traffic he could drive to content creators. At the same time, the company bought Marc Andreessen’s community platform, Ning, and used it to build tools for content creators.

And now he has unveiled a rebuilt Mode atop Ning. With it he is reversing the direction taken by most other media. Panicked by Facebook, Twitter, and the explosion of social, media companies have tried to add social to content (“Share me!”) or take their content to social platforms (e.g., Buzzfeed gloms onto Facebook like an oxpecker on a rhino and now Facebook the spider tempts news companies to publish their content in its web). Mode is going the other way: It built a social platform and is adding content to it.

The new Mode launched with 100,000 pieces of content, with a heavy emphasis on video, from its own creators and sites it’s working with. It has an easy tool to enable curators to gather and link to content from around the web. Those are human curators, not algorithms. It has content creation tools, including a video player. Those collections of content and recommendations will be embeddable (though as I write this, that function isn’t working yet for me). Altogether, Arora says Mode has 6,000 sites in its ad network, 4,000 of its own content creators, and 4,000 sites where it can distribute its feeds.

As is often the case with Arora’s inventions, it takes me a few days to understand his insight. With this relaunch, what I see is that Arora envisions the page-based web shifting to a stream-based web.

I’ve been thinking a lot about that lately and will probably write more about streams-v-pages soon. But in a nutshell, thanks to Facebook, Twitter, Instagram, WhatsApp and so many other social services and thanks also to the form factor of mobile, more and more of our attention is being taken up by streams rather than pages. We in media have little choice but to endeavor to plop our content into others’ streams so it will get attention. Thus the negotiations with Facebook, Snapchat, et al.

Arora has built an infrastructure to create streams for content. At the Newfronts advertising showcase, he bragged that he could take a YouTube creator’s video and program it into all the streams he controls and bring it one million viewers. Snap.

He also sees that the way to build loyalty and thus audience and usage is to enable people to follow the creators and curators they like. That is the architecture that made social media — Facebook, Twitter, YouTube, et al — scale. So he has build following into Mode.

Mode’s challenge remains that you probably have never heard of it. It has not been a brand, it has been a network and then it became a platform. Now it needs to develop a media and social brand. And to do that, it is bringing inside all its sub-brands — Glam, Brash, Foodie, Bliss, Tend — under the new Mode. But Mode also has to expand its offerings from its mostly fluffly Glam roots — lots of fashion and lifestyle — and add more business, tech, news, and hard information. That’s what Arora says he will do, growing from 10,000 affiliated content creators to 100,000 — who are paid — and building more content brands. And, of course, he can offer his platform and skills to advertisers, helping them create and distribute — just as Buzzfeed sells its skills rather than merely its space.

At the DLD conference in Munich in January, I interviewed Arora and he offered a clear vision for where media success will lie, finding scale and value in building platforms — rather than just content — that in turn gather distribution at no cost through social connections. He put this complex slide on the screen (which I explain in this post):

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At the Newfronts presentations a week ago, he simplified that view of the industry this way:

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Note that to the left are the content creators. They can use the boxes to the right to distribute and exploit their work. Mode is positioning itself as a social discovery platform for professional content. I can’t know whether it will work. But then, I didn’t know that blogs and Twitter would work. I’ve learned not to underestimate that which I don’t yet fully understand.

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.

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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.

Geeks Bearing Gifts: Paywalls

Screenshot 2015-04-14 at 7.49.54 AMSorry. Haven’t uploaded a new chapter from Geeks Bearing Gifts in two weeks. Busy, you know. So here’s the latest, on paywalls. Uh-oh. The start of it:

There is no more emotion-laden topic, no fiercer battleground in the hunt for new business models for news than the discussion of paywalls. I have personally been taken to task in the once-august Columbia Journalism Review and by no less than The New York Times’ media critic, David Carr, to name only a few, for challenging the wisdom of the wall. The arguments in favor of paywalls are apparent: Readers used to pay for content when they bought newspapers and magazines and so they should still. It was an original sin for content ever to have been given away for free online. The people who use news sites the most value the content there and would be willing to pay for it, and so they should. News organizations should have multiple revenue streams so they are not so dependent on advertising alone (see: doomsday, above). And news — quality news — is expensive. Who should pay to maintain the newsroom and the Baghdad bureau? Besides, it’s working at The New York Times, The Wall Street Journal, and the Financial Times, why shouldn’t it work elsewhere?

My responses: I have never seen a business model built on the verb “should.” Customers pay for products and services based on the value to them in a competitive market. The arguments in favor of maintaining paywalls around content tend to ignore the new reality of a media ecosystem built on abundance, no longer on a scarcity controlled by media proprietors who have long since lost their pricing power. In such a market, someone will always be able to sell a product like yours cheaper than you. Some spoiler might even figure out a way to make that product free, and it’s impossible to compete with free. Nevermind that the competitor’s product may not be as good. In the market, what matters in the end is this: Is it good enough? In such an ecosystem of abundance, I say it was wise, not sinful, for news organizations to open up and build an audience — bigger online than ever in print — before it could be stolen away by more efficient new competitors: from CompuServe to Yahoo, from a million bloggers to Huffington Post, from Business Insider to BuzzFeed. I will argue in a moment that if we’re going to charge anyone, perhaps it should not be our most loyal, engaged, and valuable customers on whom we make money through advertising, but instead the occasional visitor and freeloader. As for the argument that news is expensive: Well, yes, it was, but we know it can be more efficient today. Besides, thanks to advertisers’ support and subsidies, the truth is that readers never truly paid for news, never fully supported the cost of the newsroom. And in a competitive market, one cannot price one’s offerings based on cost plus profit; that works only in a monopoly, which news organizations have now lost.

Read the rest here.

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

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This is a big opportunity for anyone who wants to take a beat — covering a town or part of a city or covering a topic or serving a community — and make that into a sustainable business (that is, one that will feed the journalist). At CUNY’s Tow-Knight Center, we will be running tuition-free training and mentorship starting this summer for the 15 best applicants who come to us.

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