Posts about murdoch

Rupert has balls

Tweet: Rupert has balls. Well, he used to.

That’s the essence of Murdoch: balls. It’s the essence of the culture of News Corp., which I learned from working there (at TV Guide): Australian macho seat-of-the-pants instant decision making.

That is the secret to Murdoch’s success. It is also the secret to his failure: Sometimes his balls land on red, sometimes on black. Murdoch plays the odds but he does it by making big bets. He can do that because he’s a mogul; they’re his balls. Companies that are ruled by task forces don’t act like him; they overthink to convince themselves they’re making smart decisions (like merging with AOL). News Corp. underthinks.

So I don’t buy the worship of those who think that Murdoch must know something we don’t know, that he’s inscrutable and brilliant and so one mustn’t question his actions – as in the case of pay walls and Google – for fear of missing some Yoda moment. No, sometimes Murdoch wins his bets, sometimes he loses.

He almost lost the company once with bad bets with debt. He bet big on U.S. satellite (and then said, oh, nevermind). He bet huge on China but now admits it’s tough. He wasted a fortune and a decade and any hope of an internet strategy on Delphi (where I worked) and Iguide. MySpace – need I say more?

But he bet big on sports and keeps winning as a result. He started a fourth network against all odds. He launched successful satellites elsewhere in the world and won. He won and lost but so far has still won more than he lost and that’s why he’s a winner.

What’s sad about the Murdoch family’s pathetic mewling about Google as if it were a big, bad bully kicking sand in their face and their desperate, cliff-grabbing speculation about pay walls is that neither is a big bet. Neither shows any vision. Neither shows balls. That’s why I have no faith in the argument that Yoda – or Jabba the Murdoch, if you prefer – has one more up his sleeve. No, son James Murdoch just said News Corp isn’t a news corp anymore but a TV company. They’ve given up. They’re just hoping to squeeze one more pint of milk out of old Bessie before they turn her into fajitas.

You want to look to an executive who has a strategy and fearlessly executes it, look to Jobs. Bezos, too. You want big-picture vision, see the Google boys. Charisma? Obama. Experience? Well, that was Jack Welch, until the value of experience expired.

Murdoch? He has balls. Big ones.

Murdoch madness

(I double-posted the Murdoch Madness post but won’t kill this entirely because there are comments now attached….)

Gained something in the translation

Tweet: A tweet paraphrased my link-economy line and showed me I’ve been saying more than I thought I have. **

In Twitter today, one @rpaskin paraphrased something I’ve been saying – and said again in my talk at Web 2.0 Expo Tuesday (generously covered in that link by Aneta Hall). My line has been that in the link economy, value comes from the creator of the content and from the creator of a public (formerly known as an audience). That is, Rupert’s wrong with he says that Google takes content; it gives attention.

Anyway, @rpaskin tweeted this: “In a link economy, there are values from creating content and linking to content. There’s no value in just reproducing content (Jeff Jarvis).”

I didn’t say that exactly but I think it better expressed what I have been trying to say. Or at least it added a perspective and raised a fundamental and important question, namely:

Is there value anymore in reproducing content? Is the six-century-long reign of Guttenberg and the industries he created really over?

Wow. Maybe so. In my discussions of the link economy, I had been concentrating on explaining and defending the side of the value equation brought by Google, aggregators, blogger, Twitter, et al rather than on the loss of value brought to those who reproduced – rather than created – content. But in looking at the entire equation, what @rpaskin says stands to reason: There is no value left over for the copiers. Indeed, online, if one copies, one is considered a thief because it’s only the thieves who copy.

The problem is, of course, that it was through the making and selling of copies that monetary value was extracted and that is why it is so upsetting to those who did so that they can’t do it anymore. It’s upsetting that they don’t see other ways to recognize value. It’s what makes folks including Murdoch say silly things that betray ignorance about the workings of our new world.

I’m sure Rupert knows exactly how the scribes Guttenberg put out of business felt.

ALSO: Speaking of speaking of Murdoch, you can hear me doing so – along with Michael Wolf and Steven Brill – on Murdoch’s tilting against Google’s energy-efficient windmills.

** Once again, I’m experimenting with using tweets about posts as subheds summarizing those posts.

Cable’s paper

If I were Rupert Murdoch, I think I might just let the Dolans of Cablevision have Newsday. For they’ll likely run it into the ground. Like Brian Tierney, who had the misfortune of winning the Philadelphia Inquirer, they’re ill-prepared to manage the rapidly declining fortunes of a newspaper (see the post about accelerating circulation declines and the post about local advertising I’ll soon write above). Unlike Murdoch and the Daily News, they have no real opportunities for synergy and savings. Oh, yes, they have cable channels News12 LI, NJ, and NY but they are bargain-basement operations that could have reinvented local TV but instead come off like parodies. (I worked with them on the New Jersey launch when I worked at the Star-Ledger’s parent company.) The opportunities for cross-media ad sales are slight. They have a terrible reputation in the market for their customer service. They haven’t been able to agree with their board on more than one offer to take their company private; it’s almost as if they hope that a newspaper would be dead weight sufficient to lower the price of the empire so they could finally buy it.

Here’s the irony: As with the Wall Street Journal, which was better off with Murdoch’s willingness to invest than the Bancroft family’s unwillingness, so would Newsday appear to be better off in his hands than in those of the alternatives. On On the Media this morning, Brooke Gladstone asked Jack Shaffer whether Murdoch is the last salvation of the American newspaper industry. Jack pshawed the thought. I’m not so sure.

: Lauren Rich Fine, former analyst, says she’d buy a newspaper if the price were low enough. I think all you may be buying are shutdown costs. Remember when Tribune unloaded its strikebound Daily News on Robert Maxwell (I was Sunday editor at the time), they paid him $60 million to take it off their hands. And newspapers have only continued to slide since then.

Rupert’s pincer movement around a trapped Times

I doubt that Rupert Murdoch is quite monomaniacal in an effort to destroy the New York Times — since he’s just too smart a businessman to get too carried away; money is his check and balance — but if you were sitting on 43rd Street Eighth Avenue, you’d be forgiven for feeling paranoid and sweaty right now. As CJR points out today, Murdoch is tightening his strategic grip on the shape of the future of the Wall Street Journal with the imminent reported departure of Managing Editor Marcus Brauchli (damn, just when I learned to pronounce his name). And there are reports that Murdoch’s about to snag Newsday for $580 million. Add the New York Post, of course, and Fox News — not to mention the Times of London — and you have the New York Times cornered. Murdoch can attack from above — national and international — and below — local — and the the right flank — ideological — and the future — TV and digital.

But I think what really has the Times cornered is its tradition, its sense of history and preservation. Is the Times willing to reinvent itself? That’s what’s really necessary. But I fear they will treat their past as sacred and put preservation over reinvention. I don’t say that dismissively; they certainly do believe they are preserving the finest tradition of journalism in America and that’s a laudable goal. But preservation is not a strategy for the future. I’ve had my suggestions for the company but let’s reexamine the Times’ options as it faces Rupert to the right of them, Rupert to the front of them.

They could finally decide to be America’s liberal voice. But they won’t. My friends (and employers) at the Guardian stand in a better position to grab that title since they are unafraid to be liberal (hell, they trumpet it: “The world’s leading liberal voice,” that’s their mission).

They could decide to become the great American marketplace of opinion, except HuffingtonPost and the Guardian each have a robust headstart on them.

I don’t think there’s a future in local for them (no, not even the blessed hyperlocal). They will be loathe to cede New York to the competitors but their audience here is tiny. I still think that metro should become a separate business.

The battlegrounds will be national and digital. There the Times is strong, thanks to the good work of NY Times Digital; they are a leader. But online, it’s easy to supersede leaders (see: AOL, Yahoo, MSN, MSNBC, MySpace, Friendster….). This is why I think the Times has to decide on radical reinvention, a new architecture. You can guess my starting points: a networked structure, a distributed strategy, a community plan. I’m not sure where I’d start but I do think they are all the more vulnerable today. I wonder how much they know that. And I wonder what you would do in their sweaty shoes.

: LATER: Nick Denton, media mogul, on why fellow mogul Murdoch is in such a hurry.

Here’s my appearance on the topic on the Brian Lehrer show: