Archive for the “Business Models” Category
UPDATED
As expected, Google TV was announced at this morning’s I/O keynote (here’s the video site). There’s so much to think about in this initiative. One strikes me as especially intriguing: This is a big boost for micro-niche video.
Clearly, a ton of development has gone into the overall notion. Some of the platform pieces are quite clever, including basing it on Android, the open-source operating system that is now running dozens of phones and other small devices. And what Google brings to the ecosystem in other ways will be a powerful incentive for many other participants.
Google seems to be focusing mostly on the value it sees in combining Hollywood with Google. Semi-ugh. To the extent that Google gets in bed with the copyright cartel, it becomes a partner to an industry that wants to impede progress, not make it.
So when Eric Schmidt was joined on stage by Sony CEO Howard Stringer at I/O, and when “content providers” like the NBA showed off what they want to do with this new system, I mostly shuddered at the prospect of DRM-laden crapola invading my life in new, annoying and ultimately dangerous ways. (DRM stands for “digital rights management,” but really means “digital restrictions management.”)
What I prefer to focus on, however, is another of the ecosystem’s more intriguing (for me) possibilities: microchannels of content that will be simple to create and watch — and much easier than in the past to monetize.
Micro-niche video has been around for a long time now. I can remember back in the late 1990s when sites like the now-defunct Pseudo offered a variety of narrowly tailored programming, and how much I relished the idea of combining the then-new DVR with the Internet and my personal tastes.
What Google is doing now is putting together a jigsaw puzzle that, if I understand what’s happening, could be one of the breakthroughs we’ve been waiting for. Here are the key pieces:
First, this is a serious and useful linking of the Web and TV. Google is working to create a reasonably seamless experience where we can use both to their best effect, with integrated search and more. It’s not the first thing of its kind, but it does seem to stretch the genre.
Second, Google brings with it an advertising marketplace. I can’t overstate how important this is. Niche content will have an instant way to find not just an audience but the advertising to help support it. (Now I see how Google really plans to make YouTube pay for itself, and then some.) The more niche the topic, the more the ads can be considered useful content as opposed to irrelevant annoyances.
Third, niches are sociable experiences if we want them to be. We love to talk about what we really know, or care about, with others who feel the same way.
The possibilities are almost infinite. I’d tune in to the Alpine Skiing Channel or the Acoustic Folk Music from the 1960s Channel or Civil War Channel or My Hometown Neighborhood Channel if they existed. And I’d participate in a social media conversation inside of them.
What could go wrong? Lots of things. Not least of those is a victory by the telecommunications carriers in their fight against what folks call network neutrality, the idea that we users of the Internet should decide what we want to see and do, rather than having the carriers decide what bits of information we get, if we get them.
Even worse with the wireless piece: Building great stuff into an operating system doesn’t guarantee you can use it if the carriers decide to limit your bandwidth, or any number of other control-freakish stuff they may try (in fairness, sometimes, to keep the networks running for people who want to, um, make phone calls or send low-bandwidth text messages).
But let’s focus on the potential: TV may be about to get a lot more interesting…
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Some members of the traditional publishing industry don’t care for what I write, and some who do aren’t thrilled with one of the ways I try to spread my ideas. So when Mediactive appears between dead-tree covers a bit later this year, the traditional publishing industry won’t be in the mix.
I’m going with Lulu, a company that understands the changes in media. This is a self-publishing service — an operation that takes my work and turns it into books that can be sold, by me and by anyone else who wants to sell them.
Some background: Last fall, when I started serious work on the book part of this project, I was under contract to the publisher that brought out We the Media a few years ago; we parted company in January. At which point, my literary agent — the beyond-terrific David Miller of the Garamond Agency — started looking for a new publisher.
My former publisher was fine with Creative Commons, as proved by the fact that we did the first book that way. But as David told me at the outset of the new search, I was likely to limit the potential field because I had one non-negotiable requirement: The book will be published under a Creative Commons license. In this case, as with We the Media, the kind of Creative Commons license would say, essentially, that anyone could make copies of the work for non-commercial use, and if they created derivative works, also only for non-commercial purposes, those works would have to be made available a) with credit to me and b) under the same license.
The principle was simple: While I want my writing to get the widest possible distribution, if anyone is going to make money on it I’d like that to be me, my publisher and my agent.
Almost a decade after Creative Commons was founded, and despite ample evidence that licensing copyrighted works this way doesn’t harm sales, book publishers remain mostly clueless and/or hostile. As David explained to editors, the main reason I’m still getting royalty checks for We the Media is that the book has been available as a free download since the day it went into bookstores. Had we not published it that way, given the indifference (at best) shown by American newspapers and magazines, the book would have sunk without a trace.
That logic persuaded no one in New York (not that we got that far in most cases — more about that below). And to my genuine if not major regret, the Creative Commons roadblock forced me to turn down a deal from a publisher that would have been perfect for this project had I only been writing a book and nothing more.
Two points: First, and most obviously, if a principle means anything, you stick by it when doing so is inconvenient, not just when it’s easy. Second, this isn’t just a book, at least not way traditional publishers understand books even as they dabble online.
To publishers, books are items they manufacture and send out in trucks. Or else they’re computer files to be rented to publishers’ customers, or customers of Amazon, Apple and other companies that use proprietary e-reading software to lock the work down in every possible way. In both cases, publishers crave being the gatekeepers.
Mediactive aims to be a multi-faceted project. Over the next few years, I hope to experiment in lots of media formats and styles with the ideas here. And — this is key — I also plan to experiment with it in the broader context of the emerging ecosystem of ideas.
That ecosystem is evolving at an accelerating rate, and the people who have had specific roles in the one that prevailed in the past — authors, literary agents, speaking agents, editors, publishers and others — are going to have to change with it. Some get this and some don’t, but I’m happy to say that the people I work with directly at this point are definitely in the getting-it category. (I’ll talk much more about this broader context in an upcoming post.)
Meanwhile, I’m having terrific conversations with the folks at Lulu. They aren’t the only outfit of this kind around, by any means, but I like the way they see their own part of the emerging ecosystem.
Incidentally, had I signed with a traditional publisher, the book would not have reached the marketplace for a year, most likely, if not even later. With Lulu, it’ll be available this summer.
Rejections
Editors from big publishing houses have a habit of rejecting books in what they must believe is a kind way. They say something to this effect: “It’s really interesting and we like Dan a bunch, and while it isn’t for us we’re sure it’ll find a great home with someone else.”
Please, folks. Any competent author would prefer this: “We didn’t like it, and here’s why….” Honest criticism is more helpful.
One reason several editors did offer was a bit surprising. An editor wrote, echoing several others, “The main problem that people had was that they felt that they knew much of the information that Dan was trying to get across…”
Wow. You mean that people who read and publish books for a living already know the value of deep and thoughtful media use? Uh, one of the major motivations for this project is the ample evidence that way too many other people don’t know this.
In my days as a newspaper reporter, I learned that the only audience that really counts is your editor. It was a reality in the world of highly concentrated media, but no more. Any serious writer needs a good editor, but people who become your audience — and if you do it right, your collaborators — are the ones who really count.
Another reason for saying No had the ring of actual truth: The publisher’s publicity and marketing people “felt that the major media would avoid the book because of the criticism of their techniques.” One reason I’m writing it…
Lulu
It was after I turned down the New York publisher’s offer that I contacted Bob Young, Lulu’s founder and CEO. Bob also started Red Hat, one of the first companies to prove that it was possible to make money with open-source software by providing services, and he’s been an ardent supporter of ensuring that what we call “intellectual property” involves as many choices as possible.
Bob had told me about Lulu several years earlier, and in that conversation he’d suggested it would be a good fit for me someday. Now, we both thought, this might really be the time.
He put me in touch with Daniel Wideman, who runs what Lulu calls its new “VIP Services” for established authors making the move to this kind of publishing. Daniel said he very much liked what I was trying to accomplish in this new project, and we had several further discussions. In the end it was clear to me that this would indeed be a good fit.
So here we go. I’ll be letting you know how all this works, by which I mean many of the details of the process.
Back to work…my to-do list has just gotten a whole lot longer. But it’s my list this time.
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UPDATED
A few days ago, following up on questions I’ve asked a number of other news organizations about their relationships with Apple, the Washington Post’s Rob Pegoraro put a query to his bosses — and, unlike me with any traditional news company (including his), got an answer.
Here’s the operative quote from his story today, entitled “App rejected? There’s a rule for that” –
So, can Apple remove news organizations’ apps for their content? Washington Post spokeswoman Kris Coratti wrote that “this is our understanding”; National Public Radio’s Danielle Deabler agreed but said NPR saw no evidence that Apple wanted to do such a thing. Publicists for the New York Times, the Wall Street Journal, CNN and USA Today declined to comment or did not reply to e-mails.
We now have confirmation from two of America’s most respected news organizations — the Post and NPR — that they willingly participate in a distribution/access ecosystem where the company that owns it can remove their journalism from that system for any reason it chooses.
I suspect that the spokeswomen for the Post and NPR have technically violated the terms of their companies’ developers agreements with Apple even by saying that much. Which is, of course, part of the problem.
Anyway, kudos to Pegoraro, who has shown more spine than his colleagues at other news organizations. From all appearances, they’re just hoping this will all go away. It won’t.
UPDATE: At the International Symposium on Online Journalism today in Austin, I asked three panelists — from NPR, the New York Times and the Guardian — about this issue. Only NPR’s Kinsey Wilson responded, and he was more forthright than I’ve heard anyone be from any media company so far.
The situation is “not ideal,” he acknowledged. No news organization, he assumes, has the individual leverage with Apple to insist on contract terms that should be standard for people who believe in their journalism.
NPR, based on Wilson’s other panel comments, is creating what sounds like a multi-platform strategy: creating a back-end system that can feed to any platform. All smart news organizations are trying to move this way.
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UPDATED
Eleven days after I first raised the subject of the New York Times’ complicated relationship(s) with Apple (follow-up here), I’ve finally received an answer, of sorts. Sadly, the answer wasn’t to the questions I asked.
A PR person from the company, responding to one of several subsequent emails, wrote back today: “No, we are not going to comment.”
This stonewalling — this deliberate statement that the newspaper chooses to be opaque on matters that go to its editorial integrity — is disappointing, but unfortunately not entirely surprising. But it left me with no real choice on a decision I truly hate to make:
I’ve sold my small (300 shares) holding of New York Times Co. stock. I’ll be taking a loss on the transaction, but I’d never expected to make much money, if any, on my purchase in the first place; I bought NYT stock because I wanted to demonstrate my support of quality journalism.
For decades I’ve revered the New York Times. I still believe that it’s loaded with superb journalists. I hope it survives and thrives in a media environment that grows more challenging every day.
Journalism is in enough trouble as it is, and the Times’ challenges are truly daunting. Arrogant non-transparency about basic integrity only makes the situation worse. So I’ll put what money I have left from this already poor investment into something else.
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UPDATED
Recent days have reminded me of the many traits Apple and the New York Times share. Both are the best at what they do in certain domains. Each is emphatically elitist, and, in varying ways, self-confident to the point of arrogance. Neither is very transparent (though at least the Times has its Public Editor).
The differences, of course, are profound. In particular, there’s the business trajectory: Apple has reinvented itself several times, and lately has gone from triumph to triumph as a profit-making company. The Times Co.’s record in this regard is deeply mixed: Reinvention has come mostly at the edges, and the business has been heading downhill.
The affinities between Apple and the Times came into sharper focus in the past several weeks, but in ways that have raised some difficult and as-yet unanswered questions. Some background:
Read the rest of this entry »
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I’m speaking next week at the Guardian’s “Changing Media Summit” conference in London, and answered a Q&A the media company has posted on the conference website. Reprinting here:
Which media companies, business and delivery models and platforms do you consider to be sustainable and which ones will go to the wall?
I’m not nearly smart enough to tell you which companies will survive. As a (very) small shareholder in the New York Times Co., and an angel investor in several online startups, I certainly hope they’ll be among the ones that last.
But some early outlines — emphasis on “early” — are beginning to emerge.
Media companies that persist in the industrial model of media, especially those reliant on advertising subsidies for content that has no basic relationship to what advertisers are trying to sell, are in the most jeopardy. Apart from the simple fact that advertising is being separated from content for excellent reasons, the industrial-age notion of distribution has been upended. Rather than creating content, and then publishing it on paper and putting it in trucks (or broadcasting via expensive towers or satellites), what we do now is create content and make it available; people come and get it. Only those media creators who understand the new dynamic have a chance at surviving the upheaval.
In the journalism sphere, I have no doubt whatever that we will replace the monopolies and oligopolies with a much more diverse and therefore more sustainable ecosystem. The enterprises will include for-profit and not-for-profit companies; and sole proprietorships and large businesses. The business models will range widely, and will be the winners from among the thousands of experiments now under way.
Those who can turn themselves into ecosystems in their own right — think Google, Twitter, etc. — will be major winners if they can become the center of ecosystems in which others innovate. When the Guardian and New York Times offer APIs to their media, they show they understand this imperative.
What does the global media industry ten years from now look like?
This will depend, in part, on how governments respond to the media and technology changes. If governments (urged on by law enforcement, big traditional media and especially back-facing copyright interests) restrict the ways we can use technology, we could easily see the Internet turned into a newer and only slightly more useful version of television.
If, on the other hand, governments allow technology and innovation to flower, we will see a media industry that dwarfs the current one in size, at least in terms of the number of people who are participating. All media will be social to one degree or another. Since information is increasingly a core feature of all products and services, media will be an even larger global industry.
What projects are you currently engaged in on a day to day basis and how are these helping to change the face of the media and technology industries?
I am spending my time on a variety of projects. The main one has been creating a digital media entrepreneurship program at Arizona State University in America, a project aimed at bringing an appreciation of the startup culture into the journalism curriculum. We believe students will be inventing many of their own jobs, and want to help them do so.
I’m also continuing my long-term work on citizen media and citizen journalism. In addition, I’ve invested in or co-founded several consumer Web companies, and have new projects in the wings. Finally, I’m finishing a new book called Mediactive, a challenge to those who create and consume media to take more responsibility for what they — and we — know.
Who do you admire in this space? Who’s inspiring you? Who’s pushing the boundaries and how?
I’m inspired by so many people that I have trouble naming just a few. But I’ll start with my students, and the students I’ve met at other campuses in America and around the world. I tell them I’m jealous of their opportunities, because they will invent the future of media and journalism.
Allow me to offer a tip of the hat to the Guardian’s Alan Rusbridger. He is a leader of exceptional talent and vision.
And what can we expect from you at the Changing Media Summit 2010?
You can expect me to listen much more than I talk, though of course I’ll discuss the things I know best. I see this summit as a wonderful learning opportunity and aim to take full advantage.
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Nora Young hosts CBC Radio’s “Spark” program, and we chatted the other day about Apple and its controlling ways.
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UPDATED
In the weeks since Apple announced the iPad tablet computer, the news industry and the people who watch it have been talking breathlessly about the device’s potential to help restore happier financial times to struggling journalism organizations, particularly newspapers and magazines. Perhaps the best example is a NY Times story entitled “With Apple Tablet, Print Media Hope for a Payday,” with this quote (from an anonymous source, of course):
Steve (Jobs) believes in old media companies and wants them to do well,” said a person who has seen the device and is familiar with Apple’s marketing plan for it, but who did not want to be named because talking about it might alienate him from the company. “He believes democracy is hinged on a free press and that depends on there being a professional press.”
This is laugh-out-loud stuff, for all kinds of reasons, not least the hilarious notion that Steve Jobs believes in a free press. This is the CEO of a company that practically defines the words “secretive” and “paranoid” — a company that took bloggers to court for daring to report on what sources from inside Apple have told them about upcoming products; the threat to business journalism from that case, which thankfully Apple lost, was real and scary.
Steve Jobs believes in old media, all right, as long as he can absolutely dictate the terms under which old media sells (or, to be more precise, rents) its material through the Apple orifice called the iTunes Store. The music industry discovered to its dismay that Apple’s one-price-fits-all model — not to mention Apple’s control over customer information (including addresses and credit-card numbers) — was good mainly for Apple. (To be fair, the Times story did note, amid the fawning over the iPad’s media potential, that Jobs is, as the story said, a bully.)
The App Store, through which Apple requires iPhone application developers to sell their offerings, has its own restrictions. Apple doesn’t regulate prices, though it still disintermediates developers from their customers. The bigger issue is that Apple insists on approving every app that can be sold through the store, in an approval process that is always opaque and sometimes capricious.
In recent days, Apple took its control-freakery to a new level. It unilaterally banned some iPhone apps that, in Apple’s view, were too risque for its customers, including several that depicted skimpily dressed women. The company’s excuse was that some customers found the material “objectionable,” and of course Apple wanted to make its customers comfortable and happy.
Never mind that Apple still sells pretty much the same kinds of items through big publishers like Time Warner and Playboy. That’s mere hypocrisy, however blatant.
News organizations often produce material that people find objectionable. Photographs and videos of dead people in war zones and disaster aftermaths are vital to understand the scope of such events, and they are deeply upsetting to view. Publishers and broadcasters and, more recently, digital-media providers have put them out anyway. They have every right to do so, and often an journalistic obligation.
Apple, in the role of distributor, has every right to decide what people can sell via its online store. This is not the issue.
Now, journalism organizations obviously don’t have to create apps for the iPad or iPhone. They can make their material available via Web browsers.
But Apple won’t let Flash run on the iPhone or, it says, the iPad. While HTML5 will solve some of these issues, that new standard is early in its evolution. Meanwhile, it’s clear, news organizations believe (with some experience selling apps for the iPhone) that the user experience will be better with an app, not to mention the possibility of charging money for what they produce (though they’ll be giving Apple a cut of every transaction).
Ultimately, I believe, the most important issue is whether news organizations should get in bed with a company that makes unilateral and non-transparent decisions like the ones Apple has been making about content in all kinds of ways. I say they should think hard about it, and answer either in the negative or insist on iron-clad contracts with Apple that prohibit the hardware company from any kind of interference with the journalism, ever. (As Dave Winer asked in a Twitter posting today, “Thought experiment: What happens to the Engadget app when they run a leaked Apple announcement?” (UPDATE: And Wired quotes the Washington Post (a piece from Monday Note) with another worrisome scenario.)
Understand, this is not about whether tablet computers are a good thing. They are. They will be a wonderful addition to the way we consumer and create media (more so the former, I’d guess), and I have no doubt that the iPad, like other Apple products, will set a new standard for ease of use and, in some ways, utility. (I’m a happy user of a Mac computer, for which Apple doesn’t restrict application developers’ ability to write software.)
But I watch with amazement as newspaper people drool over the iPad as some kind of industry savior. They’re putting far too much trust in a company that doesn’t deserve it.
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Alan Rusbridger, editor of the Guardian, has published a lecture he gave this week. He asks, “Does journalism exist?” — and his answers, as you’d expect, are a must-read for anyone who cares about the future of journalism.
I’m tempted to quote from pieces of his talk. But it’s so meaty that I want to encourage you to take the time to read it for yourself. The lecture ranges widely — including the question of who’ll actually pay for information in the future.
When you’re done reading it, you’ll understand better why the organization Alan leads has deservedly become one of the most widely followed news sites in the English language.
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Another not-for-profit news organization is launching soon — the Bay Area News Project. It’s a worthy and important development in a metropolitan area that’s been watching (assuming that folks are actually paying attention) the slow-motion disintegration of newspaper journalism, and I’m a big fan of the founding editor, Jonathan Weber, who’s coming back to town from his five-year sojourn in Montana.
But I’m disheartened by the news that the CEO — Lisa Frazier, who as far as I can tell has had little or no experience actually managing a news operation (she’s been a consultant to some big media orgs) — is being paid $400,000. Maybe she’s worth that much in the corporate world.
But this is an exorbitant salary for a fledgling nonprofit that will never be all very big compared to the kinds of nonprofits (universities, hospitals, major NGOs, etc.) that pay salaries of this kind. (And some of them go way over the top.)
Frazier’s pay isn’t nearly as much as Paul Steiger’s princely score at another nonprofit, ProPublica, but it’s just as over-the-top in its own way.
Please understand: I support the goals of these organizations. ProPublica’s journalism to date has been praiseworthy, sometimes superb, and I have no doubt that Jonathan Weber will lead the Bay Area project to do fine work as well.
But it’s clear that the principal funders and boards of directors of both projects have tin ears about how the public correctly sees not-for-profit enterprises — as organizations that people join not to make a pile of money but because they want to make the world better in some way. I’m not saying these CEOs should work for a pittance. I am saying that their pay scales send a message they may someday regret.
My bottom line with the Bay Area project, as with ProPublica, is this: I offer my best wishes and moral support for their journalistic activities, but I won’t donate any money — because the message I get from the CEO pay is that they don’t need my money. I’ll reserve my financial support for the ones that do.
(Photo from Pennsylvania attorney general’s website)
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