Tag: journalism

  • 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.

  • 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.