Posts about newbiznews

Lessons from Waze for media

Screenshot 2013-06-11 at 4.30.34 PMNow that I’ve written my commuter’s paean to Waze, allow me to get a bit journowonky now and examine some of the lessons newspapers should learn from the success of the service:

1. Waze built a platform that lets the public share what it knows without the need for gatekeepers or mediators — that is, media. That’s how it keeps content costs at a minimum and scales around the world.

2. Waze does that first by automatically using the technology in our pockets to — gasp! — track us live so it can tell how fast we are going and thus where the traffic jams are. And we happily allow that because of the return we get — freedom from traffic jams and faster routes to where we’re going.

3. Waze does that next by easily enabling commuters to share alerts — traffic, stalled car, traffic-light camera, police, hazard, etc — ahead. It also lets commuters edit each others’ alerts (“that stalled car is gone now”).

4. Waze rewards users who contribute more information to the community — note I said to the community, not to Waze — by giving them recognition and greater access to Waze staff, which only improves Waze’s service more quickly.

5. Waze lets users record their own frequent destinations — work, home, school, and so on — so they can easily navigate there.

6. This means that Google as Waze’s new owner will now reliably know where we live, work, and go to school, shop, and so on. We will happily tell Waze/Google this so we get all of Waze’s and Google’s services. Google will be able to give us more relevant content and advertising. We will in turn get less noise. Everybody happy now?

How could, say, a local newspaper company learn from this?

1. Use platforms that enable your communities to share what they know with each other and without you getting in the way.

2. Add value to that with functionality, help, effort (but not articles).

3. If you knew where users lived and worked and went to school — small data, not big data — you could start by giving them more relevant content from what you already have.

4. You could give them more relevant advertising — “going to the store again? here are some deals for you!” — increasing their value as a customer by leaps and dollars.

5. You could learn where you should spend your resources — “gee, we didn’t know we had a lot of people who worked up there, so perhaps we should start covering that town or even that company.”

When I say that news should be a service and that the news industry should be a relationship business and that we should act as platforms for our users and that small data about people can lead to more relevance and greater value … this is what I mean.

So now go ask Waze how to get there. Oops. Too late. Google got there first. Again.

To the dauntless lensmen

photographers

The Sun-Times was wrong and right when it fired its entire photo department.

Wrong: Images are more important than ever. Look at this page: Medium practically forces us to include a photo with every post. On Google+ posts sans images get little love. This week at my J-school, a dean emphasized that every item we publish should come illustrated.

Right: There are more photographers now than ever — all of us taking pictures with our phones and cameras and sharing them for everyone, including newspaper editors, to see. News doesn’t wait for an official staff photographer to show up. A single event doesn’t need to be captured by a hundred lenses. And besides, times are tough; something always has to go, right?

But the paper did it wrong. I would have changed the definition of a photo department and a photographer — and I have little doubt that most photographers there would go along with this notion.

Just as a reporter no longer does all the reporting — it’s collaborative — and just as reporters need to concentrate on adding value to flows of information that already exist, so can photographers build a new relationship with a new photo ecosystem.

It should be their job to get the best photos for their news organizations however they can do that. They’ve long done that, but now they have more ways to do it. They should become expert in culling the public’s photos to find the work of witnesses to news. They should cultivate amateurs who can shoot well. They should train every member of an editorial department and every amateur who wants it in how to capture news to the best of their ability.

The photo department should grab onto tools to help locate people who are at the site of news, to ask for people to take a shot that’s needed to illustrate a story (the obvious stuff: a picture of a building that was sold, an image of another damned snowstorm).

But then the photographers — the experienced, the pros, the artists — should go where they can add the greatest value, capturing the images that amateurs and reporters can’t and pushing the standards of their publication higher.

That is what the Sun-Times lost this week: the stellar photographer who can do what you and I can’t, who sees the world differently, who isn’t afraid to stick his nose and lens into the action.

When I was a cub reporter on Chicago Today, I remember my editor, Milt Hansen, calling our photographers dauntless lensmen (nevermind the gender; it was 1973) and giving them each a moniker, like Fearless Frankie Hanes. I went to cover small-scale riots with Frank and he schooled me and protected me even as he risked his own skull to get the best picture. No paper should ask an amateur or a reporter to do that.

Mind you, we are teaching all our students at CUNY how to take better photos. My colleague who does that recognizes the even greater need for his training now. That is well and good.

But reporters who are busy listening, parsing, asking questions, taking notes, and seeking out witnesses and experts isn’t going to do a good job also capturing the emotion, the mood, the feel, the special perspective of an event. Oh, they can be taught to take a decent picture of a guy at a podium or a building with the sun in the right place.

But we may have hit the limit of expecting journalists to be — in the words of one of my former students — eight-armed monsters, doing all that a reporter should do plus taking pictures plus taking video plus capturing audio plus begging for data plus thinking of graphics. Yes, they need to be able to do each of those things, that’s why we teach them those skills. But all those things? At once? Not without help. Not without the experienced, the pros, the artists.

Here’s to the dauntless lesmen.

In the End Was the Word and the Word Was the Sponsor’s

and-now-a-word-from-our-sponsor1
We used to know what ads were. They had borders around them — black lines in print, a rare millisecond of dead air on TV, the moment when the radio host’s voice became even friendlier, letting us know he was now being paid to peddle.

Today, under many ruses and many namessponsored content, native advertising, brand voice, thought leadership, content marketing, even brand journalism — advertisers are conspiring with desperate publishers to erase the black lines identifying ads.

When I started Entertainment Weekly, a sage editor sat me down and summarized in one sentence the magazine industry’s voluminous rules about labeling what we then called “advertorials”: “The reader must never be confused about the source of content.”

Confusing the audience is clearly the goal of native-sponsored-brand-content-voice-advertising. And the result has to be a dilution of the value of news brands.

Some say those brands are diminishing anyway. So sponsored content is just another way to milk the old cows as they die. Lately I’ve been shocked to hear some executives at news organizations, as well as some journalism students and even teachers, shrug at the risk. If I’m the guy who argues that news must find new paths to profitability, then what’s my problem?

Well, I fear that in the end we all become the Times of India, where paid advertising and news content are allegedly mixed so smoothly in some areas that readers can’t tell one from the other. Worse, at some news organizations, editorial staff do the work of writing this sponsored content. They become copywriters.

Mad Men Don Draper Peggy Olsen

At the same time, many of these news organizations are using their brands as candy to attract legions of new contributors, which can drastically lower the cost of content. Mind you, I’ve applauded that spirit of openness and collaboration as well as that newfound efficiency.

But here’s the issue: Some media properties have taught me to pause before following a link to them. Sometimes, I’ll find good information from a staffer or one of many contributors who brings real reporting or expertise. Sometimes, I’ll find a weak contributor — or staff — piece that adds no reporting or insight; it merely regurgitates what others have written when a link would be better. (Beware headlines that start with “how” or “why” or include the words “future of” or “death of” or end with a question mark; chances are, they add nothing.) And then sometimes I’ll find one of those sponsor-brand-native pieces only vaguely labeled to let me know its source.

My problems with these trends in news media:

Inconsistency. I no longer know what to expect from news organizations that do this. Yes, I’ve heard editors claim that they work with both contributors and sponsors to improve the quality of their submissions — but apparently, not enough.

Brands used to be selective both because the scarcity of paper or time forced them to be and because that became key to their value. Now they want more and more content. Making content to chase unique users and their page views rewards volume over value.

Conflict of interest. First, let me say that I think we in news became haughty and fetishistic about our church/state walls. The reason I teach entrepreneurial journalism is so that students learn about the business of journalism so they can become more responsible stewards of it. I argue that editors, too, must understand the business value and thus sustainability of what they produce.

That said, I worry about journalists who spend one day writing to serve the public and the next writing to serve sponsors. News organizations should never do that with staff, but I’m sorry to say that today, a few do. Freelance journalists are also turning to making sponsored content to pay the bills.

Thus, I hear of some journalism educators who wonder whether they should be teaching their students to write for brands. Please, no. My journalism school doesn’t do that. Others schools already include courses in PR and advertising, so I suppose the leap isn’t so far. In any case, brands will hire our students because of the media skills we teach them and we need to prepare them for the ethical challenge that brings.

Brand value. Some news companies are exchanging their brand equity for free or cheap content of questionable quality and advertising dollars of questionable intent. As someone who champions disruption in the news industry, you’d think I wouldn’t care about dying legacy media brands. But I do. I see how legacy news companies can bring value to the growing news ecosystem around them through sharing content and audience and someday soon, I hope, revenue. If the legacy institutions lose their value — their trust, their audience, their advertisers — then they have less to give, and if they die, there’s more to replace.

Now here’s the funny part: Brands are chasing the wrong goal. Marketers shouldn’t want to make content. Don’t they know that content is a lousy business? As adman Rishad Tobaccowala said to me in an email, content is not scalable for advertisers, either. He says the future of marketing isn’t advertising but utilities and services. I say the same for news: It is a service.

I’ve been arguing to news organizations that they should stop thinking of themselves as content businesses and start understanding that they are in a relationship business.

News organizations should not treat people as a mass now that they — like Google, Amazon, and Facebook — can learn to serve them as individuals. Can’t the same be said of the brands that are now rushing to make content? They’re listening to too many tweeted media aphorisms: that content is king, that brands are media. Bull.

A brand is a relationship. It signifies trust and value. Advertising and public relations disintermediated the relationship that commercial enterprises used to have with customers over the cracker barrel. Mass media helped them bring scale to marketing. But now the net enables brands to return to having direct relationships with customers. That’s what we see happening on Twitter. Smart companies are using it not to make content but to talk one-on-one with customers.

Here’s where I fear this lands: As news brands continue to believe in their content imperative, they dilute their equity by using cheap-content tricks to build volume and by handing their brand value to advertisers to replace lost ad revenue. Marketers help publishers milk those brands. And the public? We’re smarter than they think we are. We’ll understand when news organizations become paid shills. We understand that marketers would still rather force-feed us their messages than simply serve us.

What to do? The reflex in my industries — journalism and education — is to convene august groups to compose rules. But rules are made to be pushed, stretched, and broken. That is why that wise Time Inc. editor over me at Entertainment Weekly (as opposed to the oily ones who tried to force me to force my critics to write nicer reviews) summed up those rules as a statement of ethics. Again: “The reader must never be confused about the source of content.”

Well, if we’re not in the content business, then what is the ethic by which we should operate now? I think it’s even simpler: “We serve the public.”

If we’re doing what we do to fool the public, to sell them crappy content or a shill’s swill, to prioritize paying customers’ interests over readers’, then we will cannibalize whatever credibility, trust, and value our brands have until they dry up.

So am I merely drawing a black rule around advertising again? Don’t we hear contributors to a hundred news sites rewrite the same story every day — that advertising is dead? Well, yes, advertising as one-way messaging is as outmoded as one-way media. Oh, we in media will milk advertising as long as advertisers are willing to pay for it. But we know where this is headed.

Then do media companies have any commercial connection with brands? Can we still get money from them to support news? I think it’s possible for media companies to help brands understand how to use the net to build honest, open relationships with people as individuals. But we can teach them that only if we first learn how to do it ourselves.

Some will accuse me of chronic Google fanboyism for suggesting this, but we can learn that lesson from Google. It makes 98% of its fortune from advertising but it does so by serving us, each of us, first. It addresses its obvious conflict with the admonition, “Don’t be evil.” (When Google has failed to live up to that ethic — and it has — its fall came not from taking advertisers’ dollars but instead from seeking growth with the help of malevolent telcos or tyrannical governments.) Note well that Google sees the danger of sponsored content, which is why it has banned such content from Google News.

Whether you like Google or you don’t, know well that it provides service over content, enabling it to build relationships with each of us as individuals while also serving advertisers without creating confusion. Google is taking over huge swaths of the ad market by providing service to users and sharing risk with advertisers, not by selling its soul in exchange for this quarter’s revenue, as some news organizations are doing.

My advice to news organizations: Move out of the content — and sponsored content — business and get into the service business, where content is just one of your tools to serve the public.

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(Crossposted from Medium.)

Selling ads by time, not space

I just saw some mind-bending work Chartbeat is about to release about measuring the time users spend exposed to an ad online.

As background, to quote Chartbeat CEO Tony Haile: “Chartbeat monitors activity by checking in with users every second and looking for signals (mouse movement, key strokes, etc) that show they are actively consuming the content in front of them. This means they can measure how long readers spend actively engaged on a page and what parts they’re reading. Because of this Chartbeat knows how long are actively reading while an ad is in view — both for an average user and the cumulative time of all users.” Chartbeat then did some internal research that found high correlation between engaged time exposed and a user’s ability to recall the advertiser’s brand and message. This has many implications:

* Measured this way, ads that appear down alongside the middle of a story turn out to be more valuable than the supposedly premium banners at the top of the page. That’s because people quickly scroll past those banners and all the big hair on the top of the page — logos, promos, and all that — to get to the substance of an article, where they spend time. So inventory that was undervalued becomes more valuable.

* Chartbeat suggests this means that quality content that engages people longer yields better ad performance. That, they say, would be a good thing for better content makers everywhere.

* Now web publishers can sell time like broadcasters — only this is assured exposure time. Advertisers like buying time. Will this make them more comfortable with buying on the web?

* I think this enables publishers to take on some risk for advertisers — guaranteeing them assured exposure time — thus increasing the value of what they sell.

* I wonder whether this spells trouble for the big-ass ads and takeovers we users try to escape as quickly as possible.

* I also wonder whether this spells trouble for the slideshows and other gimmicks that pump page views without increasing time spent exposed to an ad.

* I’d like to think this opens opportunities to find new value in ads next to videos and games and also — this could be important — mobile pages (though don’t think that mobile’s value will come from exposure to messaging; it will still come from knowing people and serving them relevance and value). The longer we spend on a page, the longer we see the ad, the more valuable the ad should be, right?

* I can only hope that this is another nail in the coffin of the dangerous, old-media-like metrics of unique users and pageviews. Engagement will matter more.

A sample report on an ad location:

Screenshot 2013-05-15 at 8.20.04 PM

Those who declare advertising dead are Mark-Twaining-it, I think. There are still many things to learn to find more effectiveness and value in advertising online. This is just one lesson. I say the real value of the net and mobile is in relationships: in learning more about people by delivering them more value so we can be trusted to deliver them greater relevance and value and, in turn, extract greater value from the interaction. More on that later….

It’s not about content: Part I

Brands (read: advertisers) are following media down the wrong path, deciding that they, too, are media now and that they, too, should make content to draw customers to their messages (thereby, by the way, getting rid of that middleman, media).

I’ve been arguing that media should build their futures around relationships, using content as a tool to that end. I’d say that is even more true of brands.

Yesterday, Samir Arora, CEO of Glam (where — full disclosure — I’ve been an adviser), tweeted a link to Marc Andreessen arguing that Ning, the company he cofounded and sold to Glam, is about to come into its own as it is remade for brands. That got me thinking about brands’ direction.

Whatever platform they use — Ning, Facebook, Google+, Twitter, blogs or all of the above — is less the issue than the culture that enables its brands and its employees — every one — to talk with and build relationships of value and trust with customers.

We’ve all seen this happen on Twitter when we get pissed off at some unfair or unrighteous action by a company; we appeal to sanity; an employee — sometimes the official tweeter, sometimes just a decent soul — rescues us; our relationship with the company is redeemed.

That is the model for brands online. I thought we’d learned that years go. Apparently not quite. Today not only are brands making content in their own domains but they now want to make content in media’s space; we used to call that an advertorial but now that is apparently called — in jargon that appeared from nowhere — “native advertising.” WTF does that mean?

Mind you, brands should indeed create content and make it available — about their products so we can find every question we have answered. But that’s utility. That’s not what brands talk about when they become media. They make this:

Screenshot 2013-03-12 at 11.24.24 AM

Huh? How is that really any different from slapping a banner onto content? Oh, yes, it’s supposed to make us associate the Droid Razr Maxx HD with exotic locales and long battery life. But Motorola would do better to finally produce a decent phone, in which case, we the users would advertise it. I do hope that’s a lesson Google teaches them. Google understands the value of building relationships with individuals and using knowledge about them to deliver relevance and value. Isn’t that the wise future of media … and marketing?

Hyperlocal cooties

Another hyperlocal venture is struggling, and each time this happens, I fear hyperlocal gets more cooties. But I refuse to give up hope because there’s a reason for each fall, there’s much still to do, and it’s still early.

The latest: Carll Tucker’s Daily Voice (née Main Street Connect) closed 11 of its sites, lost its CEO and other executives, shut some offices, and fired a bunch of people to cut its burn from $500k to $150k per month, according to Street Fight.

In hyperlocaland, Tucker was known to be particularly cocksure, saying he had the secret and — in the surest sign of hubris — raising large amounts from investors. Some smirk at his fall. But if he can now survive, then I’ll celebrate.

Tucker’s mistake, like Patch’s, I believe, was in thinking too big too fast. Before they nailed the business and knew what worked, they multiplied the model and thus the mistakes, which only threw accelerant on their burns. Perhaps they also thought too big. I’m not sure hyperlocal can be big — that it can scale, in the argot and desire of investors. More on that in a minute.

But first, in other cootie news: Patch recently cut staff and I’ll argue as I long have that they are creating closed sites when they should be building open (and more efficient) networks. NBC* closed Everyblock, though I was never sure why it fit there. Village Soup died, and I would still like to know more about its specifics. TBD was murdered before it ever had a chance to live thanks to parental politics. Add these to earlier cootied corpses: The Chicago News Cooperative had neither a business model nor cash from donors. Bayosphere failed sometime ago and I think its founder Dan Gillmor would acknowledge a lack of a business model. It was sold to Backfence, and its founder, Mark Potts, has very generously shared his lessons learned. There’s a reason behind each one of these.

At the same time, there are hyperlocal sites that are proving to be sustainable. Unfortunately, it’s pretty much the same list we’ve had for sometime: Baristanet, West Seattle Blog, NJ’s TheAlternativePress, Red Bank Green…. We analyzed these blogs a few years ago at the Tow-Knight Center for Entrepreneurial Journalism at CUNY, and found local blogs that then were able to bring in upwards of $250k in ad and other revenue.

There’s something that ties the survivors together:
1. They are small.
2. They are the products of a great deal of hard work by very dedicated journalists/publishers.
3. They are very much a part of their communities (which makes it difficult to parachute in any kid just out of J-school, I’m afraid).

Hyperlocal is going to be built this way, a town or city neighborhood at a time, I think. Are there enough dedicated journalists willing to do this hard work and to risk and sacrifice better paying alternatives (read: PR or flipping burgers, for that matter) and to learn how to do culturally distasteful things for journalists like sell ads and do business? In New Jersey alone, we have 565 towns and given this state, each is an opportunity ripe for corruption that needs to be covered. Even if we say that one hyperlocal site could cover three towns (some are small), that’s still more than 150 bloggers needed. I’d say we have a bit more than a dozen in the state now. Is it reasonable to think we could get 10+ times more? No. But I’d be ecstatic three three or four or fives times more.

I think we see a model for what’s possible in blog-rich Brooklyn, where there are scores of local blogs. CUNY runs The Local there, now solo, after The New York Times pulled out of its hyperlocal endeavors (another cootie). One of my entrepreneurial students is on the way to starting what I think will be a great service there (more bragging about him when he’s ready). It is possible. But they all need help.

This is why I worked with Montclair State and the Dodge Foundation (where — disclosure — I’m an advisor) to help start the NJ News Commons in New Jersey. My hope — OK, call it a dream — is that it and others (like NJ.com, which — disclosure — I helped start and where I’m now an advisor) can help make it feasible for an unemployed journalist — and we have lots of them — or a caring community member to start a site to serve a community bound by geography or interest. Among the things the Commons will do to help:
1. Aggregate, curate, promote, and distribute the best of the content created by independent members of the New Jersey news ecosystem. Debbie Galant has started a content sharing network enabled by Repost.US.
2. Train local publishers in the skills they need: new media, journalism, and especially business. That’s just beginning.
3. Coordinate collaborative projects so the independent members of the ecosystem can do together more than any one can do apart. That is beginning and I think it will grow with coverage of Hurricane Sandy recovery, which will be helped along with grants coordinated by Dodge and the NJ Community Foundation.
4. Provide services, which we hope may include everything from health and libel insurance to technology platforms to make it easier for sites to start with less effort and risk.

All that is well and good but it doesn’t address the key question, the only question of hyperlocal: revenue. This is where commercial endeavors must enter. In our modeling at CUNY, we saw the need for this work in revenue:
1. Better ad sales by hyperlocal sites serving merchants with more than just banners but also helping them with their digital presences. At CUNY, we looked at the digital lives of 1,000 merchants in a city neighborhood and a suburban town and saw great opportunity to help them. I don’t expect every hyperlocal publisher to innovate this. They need help. But I see big business opportunity here for entrepreneurs (or Patch).
2. Ad networks that aggregate audience from independent sites so they can for the first time get a piece of revenue from larger advertisers. This is likely something that needs to be done by a larger local media company (e.g., a newspaper or broadcast outlet).
3. Explore new revenue opportunities, such as events and newsletters. We are sharing lessons from sites that have found these to be surprisingly successful.

Still, this is hard work. It’s guerrilla warfare, a hill at a time. And that gets us back to the question of scale and one more need: funding. Hyperlocal ventures are caught in a terrible chicken-egg omelette. Funders will back ventures only if they scale, if they’re bigger than one town. Promising scale is how Daily Voice, Patch, Backfence, Everyblock, and other local ventures got funding. Striving for scale is what made them each perhaps grow too far too fast. Maybe the truth is that hyperlocal won’t scale. One entity won’t own thousands of towns and their sites because the successful site is very much a part of the community. OK, but each of those small ventures still needs funding to at least cover loses until an audience and a set of advertisers can be served. Where will that money come from? Journalists aren’t rich — especially now — and don’t have rich friends and family.

The more we can create the hyperlocal-site-in-a-box for would-be local entrepreneurs, the better — giving them membership in larger revenue networks, methodology, technology, and services like insurance. That will lessen the start-up cost and the risk. But they’ll still likely need some money to get them started.

This is where I believe that local patrons, local media companies, and especially foundations should be putting their resources: not into supporting journalistic charities or into building yet more gee-whiz cool tools but into helping to start sustainable journalistic enterprises with grants or convertible loans. Some will be gifts. Some will be investments — not big, scalable, exit-strategy, Silicon-Valley, technology platform investments but investments the size of a bakery. We need more bakeries for news.

When it comes to the information needs of communities, I’m less concerned about national coverage — Washington will always be overpopulated by scribes and cable will overcover disasters — and more concerned about local, especially the very local. That is where I hope we turn our attention. I also hope we do not get discouraged by the occasional cooties.

* Note: I changed the reference to Everyblock from MSNBC to NBC at the suggestion of Everyblock founder Adrian Holovaty.

Voluntary media

Two important but too-unsung women in media — performer Amanda Palmer and Google ad exec Susan Wojcicki — met at an idea this week: that media and advertising are becoming voluntary.

They also touch on ideas I’ve been trying to write about: that media should be in the relationship business, not just the content business. In other words, media’s value isn’t necessarily intrinsic in content — as in, “you should pay for this product because the work to create it has value” — but can be realized in the relationships that form around content.

First, the amazing Amanda: She gave a rousingly received TED talk that has been seen almost half a million times already in which she argues that artists should not be afraid to ask for support, a lesson she learned as a street and stage performer and on Kickstarter. The nut of it via BoingBoing: “By asking people, you connect with them, and by connecting with them, they want to help you. ‘When we really see each other, we want to help each other. People have been obsessed with the wrong question, which is, How do we make people pay for music? What if we started asking, How do we let people pay for music?’”

Value comes to Amanda through relationships. Given the opportunity, people want to support her. In a very good post today, Reuters’ Felix Salmon contrasts her model with Andrew Sullivan’s. His purposefully mimics big media’s — from The New York Times to The Times of London: building a pay wall around content because content is valuable, damnit.

I’ve been arguing to media that relationships are more valuable. Knowing people because you have their trust and give them value builds a rich and deep relationship — builds data about that relationship — that can be far more valuable for far longer than a mere transaction.

The problem in media is that we are not built for that. We are built to serve the masses. Hell, we made the masses. Our manufacturing and investment and technology and business models have all been aimed at serving people in bulk, never as individuals because that wouldn’t scale, not in the age of presses and broadcast towers.

But now relationships do scale. See: Google. Now serving individuals scales even better and is even more valuable than mass media. Enter Susan Wojcicki, senior VP of advertising at Google, who wrote an important post on Google+ about the future of advertising. The nut of it: “In years to come, most ad views will effectively become voluntary.” Or as she also put it, choice shifts to the user in both content and advertising.

Just as it becomes difficult — in an abundance-based media world — to force people to pay for content, which is no longer scarce, it also becomes impossible to force them to see advertising, which may become more scarce (and perhaps more valuable). That means it won’t be advertising. It will be something no one — including Google — has invented yet. But Wojcicki’s thinking about what that can be. I’d bet on her finding it over a legacy media company just as I’d bet on Palmer finding a new model faster than a record company can.

The argument about paywalls — and copyright and the value of content — is the wrong argument. It’s an argument about trying to preserve old, industrial media model in a very different technological reality. I get accused of trying to kill paywalls or free content. I’m not. I’m just arguing that we need to recognize new opportunities because if we don’t, someone else will. Read: Google. Read: a street performer.

The discussion we should be having is how better to build valuable relationships of trust with people as people, not masses, and then how to exploit that value to support the work they want us to do. We can’t force them to do what we want anymore. For now, media are voluntary.

Why The Daily is counting its days

The Guardian asked for my take on the death of The Daily. Here it is (with links that fell out on the way to London):

On Twitter, I’ve already been accused of schadenfreude over the death of News Corp.’s soon-to-die, pay-walled, tablet-only, once-a-day news venture called The Daily.

Not so. I’d have loved to have seen an online-only news service make it. But The Daily was, in my view, doomed from the start because of all the adjectival modifiers listed above.

First, the pay wall: News Corp. proprietor Rupert Murdoch has elevated charging for content to a religion. He says people should pay for his products (though I’ve never seen a successful business plan in a competitive market built on the verb “should”). He turned his Times from an internet presence of note into a footnote because he insisted upon putting it behind a wall.

With The Daily, Murdoch wanted to prove that he could start and we would buy a news product online. But he forgot a key lesson of selling subscriptions, one he surely learned when he owned magazines: that it takes a lot of marketing expense to acquire customers. It costs money to charge money.

When it started, I calculated that The Daily would need to net at least 750,000 subscriptions — 1 million when accounting for cancellations (aka “churn”) — to break even on an operating basis, what with a share of sales going to Apple on the iPad. Murdoch promised he would sell “millions.” In the end, it reached 100,000 subscribers, not nearly enough to compensate for a reported $30 million in development cost and $500,000 per week burn rate.

Mind you, I am not against charging for content. I will happily sell you my books. But The Daily wasn’t much worth paying for. Though it looked quite nice and its content was competent, that content was all-in-all just news and news is a commodity available for free in many other places. Larry Kramer, publisher of the much-larger USA Today, just said with admirable candor that he can’t put up a pay wall online because his product “isn’t unique enough.” Ditto The Daily.

Next, The Daily started as an iPad-only offering. Eventually, it branched out to the iPhone and to Android tablets (but only for Verizon telephone customers) and the Kindle. I hope that other publishers learn from this misguided “mobile” strategy. Too many have dreamed that the tablet would return to them the control over brand, experience, and business model that the web and its links took from them. Too many think they need to create new products just for so-called mobile devices (though we actually often use them when stationary, at desk or on couch).

No, a news organization should have a strategy built around relationships with individuals, serving them wherever, whenever, and on whatever platform they like. My needs don’t change just because the device in my hands does.

Finally, there was the absolutely befuddling decision to make The Daily daily. News was only ever daily because it was forced into that limitation by the means of production and distribution of print. The internet freed us from those shackles of time. Why put them on again? Nostalgia?

In the breakup of News Corp. that is the real outcome of the London news scandals and the Leveson inquiry, the new company had to start cleaning up its books, getting rid of money-losing ventures. The Daily was the first to go. But there are more in that stable, starting with the New York Post, which loses, by one account, $110 million a year just to give Murdoch what he has long called his “bully pulpit.” Now he has a bully pulpit with almost four times more subscribers for free on Twitter. Can The Post’s obit be far behind?