Posts about murdoch

There is no Trump without Murdoch

In the video above you will see New York Mayor Bill de Blasio trying to school CNN senior media correspondent Brian Stelter in the most important and most undercovered story in media today, a story that’s right under his nose: the ruinous impact of Fox News and Rupert Murdoch on American democracy. You’ll then see Stelter dismiss the critique in a fit of misplaced journalistic both-sideism.

Without Murdoch — without Fox News nationally and the New York Post locally — “we would be a more unified country,” de Blasio tells Stelter. “There would be less overt hate. There would be less appeal to racial division…. They put race front and center and they try to stir the most negative impulses in this country. There is no Donald Trump without News Corp.”

Stelter: “You’d rather not have Fox News or the New York Post exist?”

de Blasio: “I’m saying because they exist we’ve been changed for the worse.”

Stelter: “But isn’t that like saying they’re fake news or an enemy of the people?”

Jarvis: Sigh. No. He is criticizing Murdoch particularly. He’s not criticizing all of media. He’s not trying to send the public into battle against them. He’s not trying to kill them. He’s saying News Corp does a bad job. He’s saying they harm the nation. He’s right. Listen to him.

Stelter a little later: “Politicians make lousy media critics. Why do you feel it’s your role to be calling out a newspaper?”

de Blasio: “Because I think it’s not happening enough…. When it comes to News Corp., they have a political mission and we have to be able to talk about it.”

Stelter: “But singling out News Corp., it’s like Trump singling out CNN. Two wrongs don’t make a right.”

Jarvis: Scream. No, News Corp. is singular. That is the point de Blasio is trying to make as he compares them to CNN, the other networks, The New York Times, and The Washington Post: “One of these things is not like the others.” There is nothing like News Corp. in this country or in recent history. We’re not talking about that and we should be. When I say “we” I don’t just mean the nation, I specifically mean us in journalism and media and I very much mean media reporters and critics — that is de Blasio’s further critique. This is not a matter of balance, of symmetry, of two wrongs. The behavior of Fox News and of the right is asymmetrical. That is the key lesson of the election of 2016. If we do not start there, we are nowhere.

Now I’ll grant a few caveats: The rest of media are liberal and don’t admit it and that’s much of the reason they’re not trusted by half the nation. de Blasio also brings baggage when it comes to criticizing local media that criticize him. Because I teach at the City University of New York, I suppose I’m employee of the mayor’s. And I’ve been a fan of Stelter’s since he was in college. But I think Stelter is wrong to dismiss de Blasio’s critique because de Blasio is a politician, not a media critic. Indeed, we in media need to listen to voices other than our own.

de Blasio also brings caveats of his own. He supports the First Amendment. He supports free speech. He supports the press. He likes apple pie. (I’m guessing.) But that’s not good enough for Stelter, who accuses de Blasio of criticizing News Corp. because he wants to run for president. That is reportorial cynicism in action: ascribing cynicism to the motive of anyone you interview so you can seem to be tough on them rather than dealing with their critique and message at face value.

I imagine Stelter is frightened of criticizing Fox News directly because it is (a) a competitor and (b) conservative and we know that shit storm will rain from the right. So be it.

I will not mince words: Rupert Murdoch has single-handedly brought American democracy to ruin. Cable news — especially CNN — made its business on conflict and the rest of media built theirs on clickbait but only Fox News is built to — in de Blasio’s words — “sensationalize, racialize, and divide.” Rupert Murdoch and News Corp. are specifically to blame. How can any civilized soul, let alone a media correspondent, not have heard Laura Ingraham’s bilious racist rant last week and then demanded in all caps and bold: HOW THE FUCK IS THIS ON TELEVISION? WHO ALLOWS THIS? Murdoch does.

Media are fretting and kvetching about Twitter and Facebook enabling a few — yes, a few — crackpots to speak but it’s Fox News that has the bigger megaphone. It’s Murdoch that empowers Trump. It’s Fox News that instructs him on what to do, as we can see on Twitter every morning. Murdoch has far more impact than Infowars or any random asshole in your Twitter feed. de Blasio could not be more right: Rupert Murdoch made Donald Trump. He made it acceptable for the racism we saw in Washington this weekend to come out into the light. This is a damned big media story that media are not covering. So what if it takes a politician to bring attention to it? Credit Stelter for inviting de Blasio on after he gave a preview of his perspective to The Guardian. But arguing with him does not necessarily journalism make. Journalism is also listening, probing, exploring, understanding.

I go into class this week urging students to become media critics, to question what they see in journalism and why it is done that way. To prepare, I’m rereading The Elements of Journalism by Bill Kovach and Tom Rosenstiel. In it, they quote Murdoch when he won TV rights in Singapore:

Singapore is not liberal, but it’s clean and free of drug addicts. Not so long ago it was an impoverished, exploited colony with famines, diseases and other problems. Now people find themselves in three-room apartments with jobs and clean sheets. Material incentives create business and the free market economy. If politicians try it the other way around with democracy first, the Russian model is the result. Ninety percent of the Chinese are interested more in a better material life than in the right to vote.

“These words by a modern publisher advocating capitalism without democracy have no meaningful precedent in American journalism history,” Kovach said in a speech. He is talking about the man who is influencing at least a third of America. News Corp. is singular. That is why I have been arguing since before the election that the nation must invest in responsible, fact-based, journalistic media to compete with Fox News and provide an alternative. Until then, be worried. Be very worried. For as de Blasio warns, the local version of Fox News, Sinclair, came very near to taking over and brainwashing more local TV markets in the nation. This is not going to go away of its own accord, as if the nation one day wakes up from this nightmare, hits itself upside the head, and asks: “What were we thinking?” This is going to go away only through exposing what is happening. You’d think journalists would be the first to understand that.

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?

PR and corruption theater

Today was about public relations — but not about the public.

What was exposed in Parliament during the Murdochs’ testimony wasn’t necessarily News Corp. — we shall see what happens to it — but instead the cozy, closed ties between institutional journalism and institutional government. The corruption of their close links was what was most shocking about today: news executives and politicians at lunch and spas and sporting events; news executives hired by politicians and police to give advice and spin their ex-colleagues; news reporters paying police; news executives sneaking through the back door to the seat of power; government officials being protected from hearing too much about the dirty work of news…..

Can this institutional incest survive the Murdoch affair? We’d better not allow it — we, the public.

Today was all about theater and manipulation, of course. The only question was, who wrote the scripts? Was Rupert Murdoch’s dottiness a strategy handed down from Edelman or was that him abandoning his libretto to declare himself suddenly humble (if that’s humility…)? Was James coached to be a parody of a droning MBA? Was it in the crisis-management script for Rupert to decline responsibility for the scandal in his company and to blame those below him and those below them? Was it in his PR script to lash out at his competitors to for causing him to lose BSkyB, and not at himself?

Among the day’s many ironies was Rupert Murdoch extolling transparency. The reason I pulled Public Parts from his publisher, HarperCollins, was because I use his company as the best example I could find of opacity as strategy: the company behind walls. The problem through his entire scandal is one of hiding the truth from the authorities and the public.

Transparency would be true public relations. Transparency would have cured News Corp.’s crimes years ago. But it didn’t.

Jay Rosen was trying to figure out the News Corp. PR strategy — and Edelman’s strategy for taking it on. Raju Narisetti, managing editor of the Washington Post and a fine tweeter, argued that “good crisis management can lead to good, not just spin.” Richard Sambrook, former BBC News exec now at Edelman, concurred.

I don’t buy the strategy, not anymore. David Weinberger, a friend of Edelman, says the secret is aligned interests. I argued in What Would Google Do? that two trades — PR and the law — could not be googlified because they depend on clients. They cannot be transparent. They cannot be honest.

True public relations — like marketing — must represent the public — the customer — and not the company. True government must work for and not rule the public. True journalism will not exploit its community. I was struck today by the class structure still evident in British news: poshish Rebekah Brooks pandering to the Cockney masses. No, true journalism will act as a platform for the public.

What’s next for News Corp. and its worlds

There’s no telling how the News Corp. saga will turn out, but I’ll try. Here’s a scenario that leads to the breakup of News Corp., the Murdochs out of power, the deflation of institutional journalism, a break in the too-cozy media-government complex, an unfortunate rise in regulation of media, and a fortunate opening for newcomers. This story of legality and morality will quickly shift to one driven by business.

A week ago in HuffPo, I speculated that News Corp. would need to get out of the news business. Not so crazy. Since then, the FT’s John Gapper speculated similarly, as did John Cassidy at The New Yorker.

And since then, News International head Rebekah Brooks resigned and was arrested; Dow Jones head Les Hinton resigned; Murdoch gave up on BSkyB; the Murdochs agreed to testify before Parliament; and the revelations of corruption between News Corp. and police and government get only worse, leading to the resignation of the head of the police. What looked so far out doesn’t look so far out now. So how could this progress?

* Start with the end of a Murdoch succession plan. Rupert’s defense aside, James Murdoch’s handling of the scandal has been irresponsible, short-sighted, cocky, and dangerous. The trail of scandal is lapping at James’ feet. Whether or not he is investigated or arrested for crimes, there can be no confidence in his leadership. None of his siblings is in any better position and they are feuding anyway. Rupert Murdoch is looking more lost and his testimony Tuesday at what will appear (to Americans, at least) like an impeachment hearing will only implode his stature yet further.

Meanwhile, more importantly, News Corp. lost more than $7 billion in market cap over four scandal-filled days. That number may go up or down but it’s ominous in any case. Shareholders are suing. There will be a call for professional and independent management of the corporation, sooner than later. If I were an “independent” director of News Corp., I’d be scared to death right now.

Buh-bye Murdochs? As unthinkable as that may have been only two weeks ago, it’s now quite conceivable.

* Off with the headlines! That professional management will quickly conclude that the news divisions of News Corp. are a costly drag and will try to divest them, starting with the UK properties and then spreading elsewhere. News Corp. is an entertainment company. Professional management will focus on that and get rid of Rupert’s bully pulpits. If they previously did bring clout and regulatory convenience to the Murdoch’s business strategies, now all they bring is grief and the attention of lawmakers, prosecutors, competitors, and detractors. News is clearly not a growth business; it is, as a friend in the trade said, profit-challenged. So stop the presses already.

I said in my post last Monday it may be difficult to find a market for the properties. But they become costlier to News Corp. by the day, so the desire to unload them will only grow as their value declines. In the UK, the Sun has been eclipsed online by the Daily Mail. Murdoch gave up on strategies of growth and advertising when he put The Times behind a paywall, its audience shrinking from millions to a reported 100,000. An egotistical oligarch might buy either.

* In the U.S., the right-wing depends on Fox News and is surely getting nervous about its fate. It is becoming — if one can imagine this — even more of a laughingstock than it already was as it ignores or defends Murdoch in the scandal. I could imagine Roger Ailes assembling rich Republicans to engineer a leveraged buyout and keep it safe for them in time for the election. Then there could be no doubt of its role as a propaganda arm of the right.

The New York Post loses tens of millions a year and lives only to give Murdoch his toy and pulpit. Professional management cannot justify that. It will die or find its egotistical oligarch (its Conrad Black or Robert Maxwell … I cannot imagine even the Murdoch heirs allowing their patriarch to hold onto it and eat into their fortune yet further).

The Wall Street Journal is in quite the pickle. Again, professional management will want to get rid of it because it is not a good business; its ROI, if any, is worse than The Simpson’s. But who would buy it? Recall that no one else but Murdoch would buy it for the price he offered, an overeager amount he soon had to write-down. Last week, I suggested that if Murdoch wants to rescue the last shred of his legacy, he should put the Journal into a trust, a la the Guardian and its Scott Trust. Past that, it’s hard to imagine its fate. Would Bloomberg or Reuters buy its financial data businesses? Is there a fire-sale buyer for the paper and its web site? They’d better hurry before it is ruined by delusional editorial such as this one defending Murdoch.

News Corp. is also in the business of coupons and circulars distributed in newspapers. That business, too, will shrink as those transactions go digital and mobile. I’ve been told by major marketers that their need for FSIs (free-standing inserts) will disappear within two years — another blow to newspapers’ kidneys. Someone will buy that business to consolidate the trade. Though it, too, has News Corp. cooties. David Carr says this division has paid out $655 million to get rid of charges of espionage and anticompetitive behavior.

In publishing, that leaves HarperCollins. Murdoch tried to sell it sometime ago; no such luck. Who’d buy it now? I couldn’t imagine. (Disclosure: My last book, What Would Google Do?, was published by HarperCollins. My next book, Public Parts, was set to be but I pulled it when I found myself being highly critical of News Corp. as the antithesis to a company that operates openly.)

There’s been much speculation that illegalities abroad — or, if they are found, in the U.S. — could lead to News Corp losing its domestic TV licenses. I don’t think that would happen. If professional management replaces the Murdochs and the scandal-ridden news divisions are ejected, then it’s hard to imagine the FCC — which basically never revokes licenses and would take a decade to try — pushing News Corp. out of the local TV business. Besides that, there is nothing I’d call news on Fox stations. They are entertainment distribution outlets.

* The only thing left in the publishing arm is Australia. Various politicians of lesser or greater power are calling for reconsideration of the incredible newspaper holdings Murdoch has there. I could see the company holding onto this for old time’s sake if there isn’t too much political pressure. Or I could see it being spun off to family, again for old time’s sake.

* So then News Corp. would be an entertainment company and a successful one.

* The next big impact will be regulating journalism in the UK. As I said here, I would lament that. The regulators didn’t bring Murdoch to the bar; journalists did — namely Nick Davies of the Guardian. We don’t need more controls on journalism. We need more journalism.

In the US, you can bet we’ll hear more about regulating media consolidation. But that’s not the issue. Morality is.

* I believe the biggest long-term impact of l’affaire Murdoch will be the diminution of institutional journalism and its cozy relationship with institutional government. That is good news. It opens opportunities for independents: for us.

* None of this could happen. Murdoch will hold on as long as he can — witness Murdoch’s “interview” with the Wall Street Journal claiming that the company has handled all this well and also the denial in the Wall Street Journal editorial just published, which tries to shift the blame for shoddy journalism to Murdoch’s competitors and critics. The longer Murdoch holds on, the less his empire will be worth. Just how stubborn is he?

: LATER: Bloomberg says News Corp is worth 50% more without Murdoch.

By valuing each of News Corp.’s businesses separately, the New York-based media conglomerate would be worth $62 billion to $79 billion, estimates from Barclays Plc and Gabelli & Co. show, indicating News Corp. trades at an almost 50 percent discount to its units. . . .

“There’s just sort of this generic Murdoch discount, which encompasses the concern that he will make decisions that are not consistent with other shareholder interests,” said Michael Morris, an analyst at Davenport & Co. in Richmond, Virginia. “The sum of the parts on News Corp. is huge compared with where the stock trades.”

Will News Corp. leave the news business?

The question is, what’s more valuable to the Murdoch clan: power or money?

I’d follow the money every time. Oh, Dad, cares about power, for sure. He cares about his legacy, too. Given his time left on this earth, I’d say there’s no time to repair that legacy in journalistic and political terms. If he also leaves a company worth nothing to his heirs, then he has no tangible legacy. That is surely what his heirs care most about — most do: money.

So I wonder whether News Corp. will have to get out of the news business to save the business of News Corp. For it’s not so bad to be rapacious when you’re in the entertainment business.

You might say that Rupert would have his newspapers pried from his dead hands and that might well be the case. But know well that he is not loyal to media. I used to work for TV Guide. He loved magazines then. Things turned sour. He got rid of them. He worked his ass off to get satellite TV in the US. When he had it, it turned out to be inconvenient; he got rid of it. When he had a choice of owning TV stations or newspapers in Boston and Chicago, there went the papers.

So I could see stockholders and managers and heirs pressure Murdoch to get rid of his news properties.

Only problem is, who’d want them? The News of the World is dead. The Sun has been eclipsed by the Daily Mail in the online and global future. Murdoch gave up on the future for The Times of London when he built his wall around it. But that also means it’s not so valuable a bully pulpit anymore, what with only 100k online readers versus the enemy Guardian’s tens of millions. The New York Post, on which he loses tens of millions of dollars a year just as the price of a bully pulpit, would die, unless there’s an ego and bank account even bigger than Rupert’s to resurrect it once again. He sold his other pulpit, The Standard. Fox News? Ah, that’s interesting. Maybe we should all gang together on Kickstarter and buy it, eh? There’d be a market for that thing and maybe that’d be good for the country. Sky News? He’d already sacrificed that to get BSkyB (see: money trumps power). The Australian papers? A fine spun-off gift for Lachlan, I’d say.

Oops. I forgot the Wall Street Journal on which Rupert overspent mightily. You want to leave a legacy, Rupert: Make it the beneficiary of the Murdoch Trust (just as the Guardian is to be sustained in perpetuity by its Scott Trust).

And what’s left? A gigantic, profitable media conglomerate and an inheritance for the Murdoch clan.