Posts about newbiznews

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):


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.

Want to turn a beat into a business? We will train and support you. For free. Apply now!

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.

There are now lots of examples of beat businesses that are sustainable: hyperlocal services like Baristanet, West Seattle Blog, Red Bank Green, plus business-to-business sites like Skift, and no end of tech blogs, and many more. We know what that business needs to succeed, in content, in marketing, in sales, in technology.

I wrote in my book about beat businesses as the building blocks of new news ecosystems. I have been doing a lot of work in New York and especially in New Jersey — in partnership with the Dodge Foundation, the Knight Foundation, Montclair State, and others — to support the ecosystem there.

Now we must grow the ecosystem. That is what this training is about.

And now we must support journalists who want to continue serving communities even though they no longer work for newspapers or other news outlets.

At CUNY, we are hiring great trainers who have helped many of the existing businesses, Janet and Rusty Coats. They, in turn, are bringing on experienced mentors to give ongoing support. All the details of the training are here. You will come out of this program with a realistic, workable business and product plan, and access to a powerful network of fellow entrepreneurs and media experts.

All you need to do is have the energy and passion to serve a community. You tell us what community that is and why you think you’re right to do it. We will help you start.

And if you’re lucky enough to work in New Jersey or New York, you will get even more ongoing support with well-established networks in both places.

So apply. Or pass it on to a journalist or community member who wants to turn a beat into a living.

Who needs edittors?

feral cat
I am editorially feral.

I got email yesterday from an editor at The Washington Post asking whether I wanted to write an opinion piece picking and debunking five myths about Google. Well, I love The Post, so sure. I was honored. I sent them five myths and left work to start work on it. Then the editor responded wanting to change my myths before I’d written anything. Change my opinion? No thanks. I said that I no longer live in the civilization of editors. I’m a blogger. I can write my opinion anywhere: here, on Medium, on Huffington Post, on LinkedIn, on Facebook, on Tumblr. The editor said: “We are the Washington Post, we believe in strong editing.” This was not going to work.

Of course, I can always stand editing. You know that if you read me here. My editor for What Would Google Do? and Public Parts did wonders for me. I sought editing from many colleagues for Geeks Bearing Gifts.

But for a simple little opinion piece about Google? Why ask for my opinion if you don’t want it? Anyway, my little opinion hardly seems worth the effort. Indeed, in a time of dwindling, precious journalistic resources, I’m not sure we can afford the effort to edit — let alone write — such as that. And besides, who determined that the world needs five myths about Google made up and debunked? Who in the public asked for it?

This kind of thing comes from our content mentality: We have a section to fill. We will come up with the ideas to do that. We will find somebody to write it. We will edit it. A day’s work. Tomorrow’s another day to fill.

A service mentality in journalism would dictate a different job: We observe and listen to what the public needs. We determine what will answer that need. We will measure our success by whether that need is met.

I’m just not made for the former anymore. Neither am I made for the idea that we are primarily storytellers whose job is to engage–nay, entertain–the public. I’m not criticizing The Post or the editor who contacted me. They are doing exactly what good editors do: edit. Instead, I’m starting to try to figure out new organizations, structures, tasks, roles, outcomes, and metrics for what we used to call newspapers and newsrooms.

When I talk with places like Vox or Facebook, I see entirely new–and still forming–job descriptions built around small teams made up of product developers, project managers, designers, and developers who build services and products. They don’t edit, not so much.

Am I killing all the editors? Of course, not. I am envisioning completely new roles for them. In my social-journalism and entrepreneurial-journalism worldview, editors and journalists become links to, advocates for, and servants of the public. They see and translate needs into products and services. They support platforms, systems, and networks that bring coverage from many sources in many forms: stories, yes, but so much more because now we can do so much more.

So I don’t fit in the civilization of editors. And they don’t know what to do with a mangy beast such as me.

feral cat 2

:LATER: I’ve heard from folks at the Post who took insult at what I said here. I just want to emphasize that was not my intent. I wanted to jump off this moment to reflect on changes in our trade — its goals, roles, and organizations — and in my relationship to it. I’m the odd one here.

Geeks Bearing Gifts: Advertising, the Myth of Mass Media, and the Relationship Strategy

OK, folks, now we are at the nut of Geeks Bearing Gifts: Imagining New Futures for News. This is where I begin exploring how the relationship strategy I advocate can bring business benefit to the news industry. Here’s the entire chapter, free on Medium. Here’s the start:

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The myth of mass media, lovely while it lasted, was this: All readers see all ads, so we charge all advertisers for all readers. The unbundling of mass media and the rise of endless competition punctures that myth and robs legacy companies of the pricing power — and monopolies — they had so enjoyed. Today, I believe we need to shift to a business built on the relationship strategy I began outlining in the first part of this essay. There, I argued that knowing people as individuals and communities — no longer as a mass — will allow us to build better services, and that, in turn, pushes us to develop new forms of news. Now I will look at how that relationship strategy can form the foundation of a stronger advertising business for news and media.

To start, if we provide our users with better relevance and value, that surely will build greater engagement, loyalty, usage, and attention, and that in turn will create more ad inventory to sell (though, granted, hardly any media company sells all the inventory it has today anyway). More important, the relationship strategy gives us the opportunity to increase the value of what we sell to advertisers. By knowing more about who our users are, we can sell and deliver more targeted advertising that is more relevant to their customers and thus more effective. Rather than serving only one-size-fits-all “impressions” to anonymous “eyeballs” by the thousands as advertisers and media companies do now, we can offer more productive measures of value like attention, engagement, action, impact, and even sales. We can serve specific groups of users to advertisers who value them highly. With privacy properly protected, we have the opportunity to become a trusted broker of data we gather about our users. And if we get good at the relationship business, we have a brief window of opportunity to teach and sell these skills to advertisers as a service — presuming they don’t wake up and learn them before we do. We also have the opportunity to move past selling advertising to selling products and services directly to users, venturing into commerce — which really is just a truncated form of marketing and advertising. The relationship strategy is one defense against the commodification of media’s old content business by new competitors and new technologies.

Read the rest here.

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

Geeks Bearing Gifts: Business Ecosystems

Time for another free chapter of Geeks Bearing Gifts: Imagining New Futures for News. In the last chapter, I wrote about beats as businesses and building blocks of a new news ecosystem. Now I write about the rest of the ecosystem. Vertically integrated companies, industries, and monopolies that dominated news are new replaced with messy, growing (I hope) ecosystems made up of many players operating under many different motives and business models.

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As specialists, beats are efficient. But they are hardly sufficient to meet the complete needs of the larger community. Other, larger entities are required to complement and bring quality and scale to coverage, distribution, and advertising. These additional entities can become efficient and sustainable because together, all these enterprises, large and small, can benefit one another — if they learn to collaborate. These entities can include new news organizations, reformed legacy institutions, not-for-profit investigative organizations, public media, specialists of various sorts, networks, and enterprises I’ve not yet seen or imagined. Together, they make up the new news ecosystem.

Read the rest here.

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