Sips from the Firehose
A blog that seeks to filter the internet into a refreshing, easily-gulped beverage


Nov 30

This Week in Paid Content: Thanksgiving Week

Posted: under This week in paid content.
Tags: , , , , , , , ,

In the spirit of the season, I hereby give thanks that there is such an open and vivid discussion about the core issue of monetizing online content.  If we’d had this kind of focus on actually taking the utopian dreams of “all content, everywhere, all the time” and making it work back when I was in my Web 1.0/dot-bomb startup days, we might not have cratered so spectacularly.

So this week, we’ve got a rising level of chatter about Murdoch’s media properties banning Google links in favor of getting paid by Microsoft’s Bing search engine, the BBC throws a wrench into paid content in England (and perhaps everywhere else), the idea of sprinkling porn onto newspaper websites to see what happens is floated, and what orcs and dwarves can teach newspapers.

Murdoch’s bluffing about Google to try to extract money from Microsoft’s deep pockets

This somewhat NSFW (lots of cussing) take on Murdoch is by someone familiar with the way that Murdoch papers like The Sun always seem to pick the winner of an electoral campaign.  Not because they’re so influential that the person they anoint goes on to win – but because Murdoch is canny at figuring out who the top dog in any fight is, and busies himself sucking up to them as soon as possible to maximize his profits. http://www.techcrunch.com/2009/11/28/rupert-murdoch-google-nsfw/

By convincing Bing that there’s a chance he might drop Google – for the right price – Murdoch suddenly has a new partner falling over itself to give him prominence in their search results, on his terms. Sure enough, Microsoft has just agreed to help fund the next-generation search crawling protocol, ACAP, which gives content owners like News Corp more control over how their news is indexed.

(snip) And that’s where we see Murdoch’s real genius: he has managed to use his illusion of influence to get all of these benefits without having to commit himself to anything, or expose himself in any way. There is no way in hell that News Corp content will vanish from Google and yet with every headline asking whether Google should be worried or suggesting that other companies might follow Murdoch’s lead, his image as a kingmaker is strengthened.

McClatchy starts sending out notices, but still claims paywalls are not imminent

Talk about mixed signals. The terms of services for its websites are all being changed, but that change doesn’t actually mean anything is changing. Except, of course, if it does. If they eventually decided to charge for content, they will clearly notify the readers, but in the meantime, please make coming to the site a habit and would it kill ya to click on the ads now & again? http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1004041770

A Perpetual Recession for Newspapers

Rick Edmonds, who writes The Biz Blog for Poynter, says that news organizations have lost $1.6 billion that was used to cover news, and that even when the economy recovers, newspapers won’t: http://www.forbes.com/2009/11/18/newspapers-advertising-rick-edmonds-poynter-business-media-edmonds.html So maybe we should all just learn from the porn industry – or maybe even start putting porn on our sites, to see if maybe that will get people to pay for our content.

The building of micropayment systems, like the one being developed by Steve Brill, is a hotly debated issue. Wouldn’t it be helpful for this kind of system to be established first with Web content that really drives users–say, pornography?

Sure, but that’s not an option for newspapers. There have been experiments with these kinds of systems in Denmark, where several companies tried it at the same time. The problem was that they couldn’t answer peoples’ security concerns. The experiments turned out to be a dud.

“Knock yourselves out,” Google yawns.

The head of newspaper industry bête noir Google News says in an interview that publishers are free to do whatever they want with their content.  Google is apparently willing to work with publishers to do whatever the publishers demand with their content – list it, ignore it, work with it to implement a paywall, whatever. http://searchengineland.com/josh-cohen-of-google-news-on-paywalls-partnerships-working-with-publishers-29881 The easy confidence that is displayed here is the result of Google’s near-monopoly position in the market

Removing News Would Have Negligible Effect on Google

This study by German research company TRG shows that even if all news was taken off Google, that would still leave about 95% of Google traffic intact for them to monetize. http://paidcontent.co.uk/article/419-research-removing-news-would-have-negligible-effect-on-google/

Financially, then, Google doesn’t depend on the publishers’ content. “In comparison, if you detracted Wikipedia from the results, 13 percent of the number-one results would be gone,” said Christoph Burseg, the CEO of TRG, the research company that ran the survey.

BBC: We won’t charge for online news

Now this has got to be raising Mr. Murdoch’s blood pressure a bit. Online news paywalls only work when the competition plays along too (see the case study I did on the disastrous experiment of El Tiempo in Spain, & how they lost their market share to a formerly laughable upstart).

http://www.guardian.co.uk/media/2009/nov/24/bbc-wont-charge-online-news A more interesting discussion is brewing, about what to do about content that is not just re-purposed BBC news, but that is specifically produced for the online editions. Viz:

However, Lyons also questioned the future of content created for online that is not directly related to specific BBC programmes, asking, “where should the boundary be drawn” between this and “the online expression or extension of BBC programming”?

Wall St. Journal’s price to go Bing-only: $15 million

There’s been an increasing amout of space devoted to what Murdoch is going to do to start moving all his content behind paywalls, and away from the hated Google “parasites.” Business Insider backwards-engineers the numbers that de-listing from Google would cost the WSJ, and comes up with $10-15 mill. http://www.businessinsider.com/microsoft-should-pay-up-for-exclusive-access-to-the-journal-2009-11

If Microsoft really wanted to induce Murdoch to ditch Google, it would therefore only cost $10 – $15 million. Maybe more if Murdoch wanted a premium. Considering Steve Ballmer said he’d spend $5.5 billion to $11 billion over the next five years on Bing, this is nothing.

More on the Murdoch-Google fight – seems the Denver Post and Dallas Morning News may follow in his footsteps

Interesting that Dean Singleton has come out and said that readers in Pennsylvania and California will get hit with paywalls starting next year, and the DMN is upgrading itself to a “definitely maybe” status. http://www.bloomberg.com/apps/news?pid=20601109&sid=aRVlZEzbmNu0 A further article from the Independent about what publishers in the UK are thinking on this issue http://www.independent.co.uk/news/media/press/british-press-split-in-two-by-wappingrsquos-great-gamble-1825806.html and http://paidcontent.co.uk/article/419-has-the-times-got-it-right-with-its-online-charging-plan/

And finally, a meditation on whether Murdoch’s plan for paywalls will run afoul of anti-trust laws http://www.guardian.co.uk/media/2009/nov/05/murdoch-pay-wall-anti-trust

“Not a cat’s chance in hell” of successfully charging for online content

The CEO of the Future Publishing Group said that there is no hope for paywalls for general news because of the ubiquity of free models, particularly in the UK market. http://www.guardian.co.uk/media/2009/nov/26/charging-mainstream-news-future-chief However, Future are experimenting with specialized and niche content to see what the market will bear.

The group has taken a bullish approach to pricing its print magazine titles, with an average cover price of £5, up from £4.70 this time last year.

She cited a promotion of the new album from former Guns N’ Roses guitarist Slash, which is being exclusively attached to a special edition of Classic Rock magazine for £14.99.

Americans less willing to pay for online news

The New York Times finds that less than half the people in the U.S. are willing to pay for online news, and even at that, they will only shell out $3. http://www.nytimes.com/2009/11/16/business/media/16paywall.html?_r=2&ref=media Apparently, there’s some kind of fundamental disconnect going on at the NY Times, between top management hell-bent on charging for content, and the weary soldiers in the trenches, protesting that this will not work, has not worked, will never work, and producing article after article that seemingly is not read by their own bosses.

“Consumer willingness and intent to pay is related to the availability of a rich amount of free content,” said John Rose, a senior partner and head of the group’s global media practice. “There is more, better, richer free in the United States than anywhere else.”

If readers are willing to pay – they prefer micropayments and only pennies

The analysts at Continental Research found that 63% will not pay for news, leaving only 37% who will – and at that, only willing to pay about 10 cents per article. http://www.continentalresearch.com/media_centre/press_releases/?ID=149 More about this at http://paidcontent.co.uk/article/419-research-readers-favour-news-micropayments-but-theyll-only-pay-pennies/

James Myring, Head of Media at Continental Research says “The amounts may sound small, but it is better to get a lot of people making small one off payments, than virtually no-one paying a higher subscription. For a comparison, think of the mobile industry, profiting from lots of small payments for text messages.

London Times Editor says online paywalls are “fight of our lives”

There’s the by-now predictable bashing of Google and the other supposed “parasites,” but the one actual realization is buried at the end of the article. http://www.pressgazette.co.uk/story.asp?sectioncode=1&storycode=44649&c=1

Harding said the Times wanted to improve its relationship with its loyal customers through home delivery and through its recently launched Times+ membership programme.

He said: “Historically, newspapers have treated their best customers worst and their worst customers best.

“We give the paper away to people who could not care less and we pay little or no attention to people who love it and read it every day.”

What newspapers can learn from orcs and dwarves

This is actually something that I’ve felt for the last year or so – if we’re going to try to get young people to try & buy, then we’re going to have to emulate the things that they are already comfortable doing so with. http://paidcontent.co.uk/article/419-the-wow-paywall-what-newspapers-can-learn-from-orcs-and-dwarves/#comment_63034 Basically, the World of Warcraft guys are minting about a billion a year from online content – and there are a bunch of key points to their service that newspapers should study, if they actually want to make money, as opposed to just slamming down paywalls and pretending that the rest of the world will care (or even notice).

News as gaming: Could newspapers similarly harness the human need for interaction and stimulation and sell not just boring text news but access to a shared experience? Sure, there’s MySun, MyTelegraph and “tell us what you think in the comments below”, but that’s a marketing ploy to drive page impressions and encourage more content consumption. The lesson from gaming is that people won’t pay for content they can’t help shape themselves—or project their own personal narrative onto.

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Nov 29

Who Am I Really? Kaiser Permanente’s Curious Confusion

Posted: under Digital Migration, Wrongheaded solutions.

Online KP.org password sign-up confuses me with other people with the same name, asks for data on people I haven’t seen for years.

Against the advice of almost everyone I know, I recently switched from Anthem to Kaiser Permanente for our corporate health policy.  I know that it’s not an especially good time to be in the health insurance business, as all their spare profits being converted into fat wads of anonymous cash, being accidentally left under Washington, D.C. restaurant tables that congressmen just happen to be eating at … but I still buy into the conventional wisdom that “you gotta have health insurance.”


One of the features of Kaiser that induced me to make the switch was their supposed web-friendly way of managing your own health care records and doctor appointments.  Well, that and the fact that they are (for California, at least) dirt-cheap.  Anyway, since we here at Artesian Media like to think of ourselves as constantly connected internet smartypants, I figured Kaiser’s high-tech approach might actually be a better fit for our peripatetic lifestyle, plus I was more than a little curious to see what insurance companies consider to be “State of the Art web tools.”

I was impressed by the persistence of the doctors at Kaiser in pushing patients to use all these new web tools that have apparently been developed at great expense. This despite the fact that, as one worker at the big Kaiser mothership on Venice told me, “Without South-Central L.A., this place wouldn’t exist. Since ‘Killer King’ went down, we are the place to go if you are poor and live in Da Hood.”

[BRIEF ASIDE: For readers outside of LA, what she was referring to was the implosion of King-Drew Health Center in Los Angeles, after a series of excellent LA Times investigative reports chronicling how hospital workers mopped around the bodies of dying patients in the emergency room, committed absurd frauds to collect unwarranted disability payments, stole patient's painkillers and got high on the job, sexually harassed co-workers, and basically ran the hospital like a Turkish prison & torture chamber.]

Anyway – I decided to try to sign up at the KP.org site. I entered all my private information (the insurance company really seems to want to be able to figure out every single thing that could help them track you down should you welsh on a bill, but that’s understandable – if unsettling), and then clicked to get my password that would allow me to access my own medical records.

But before I could do that, I had to pass one final gantlet: a series of questions that KP.org says are “accumulated by an outside contractor, and that I should know the answers to.”  A kind of “This is Your Life, David LaFontaine.” 

Despite the Orwellian/Kafkaesque overtones, I figured that this was going to be a cinch of a test to pass. After all, if an outside contractor was culling information from the internet to ask me questions about myself, well, how hard could this be?  I checked over my shoulder to make sure that nobody was looking, in case there were any queries prompted by my accidental (*cough cough*) clicking on certain websites during my wide-ranging research.

Unfortunately, this process shows how flawed it is to attempts to determine identity via robotic online spiders. The first question out of the gate showed me how much trouble I was in – it asked me which institution I had a connection with. Unfortunately, each one of these institutions was based in and around Boston, a city in which I have never lived, but where another David LaFontaine is quite active.  The next question had to do with where my ex-wife was currently living – listing her under a name that she had never (to my knowledge) used.

Once again, a question that has nothing to do with any information that is relevant in my life.  I supposed I could have Googled this, but I only had 75 seconds to answer each one of these questions.

The next screen that came up basically said: FAIL. 

I have now sunk lower than Sarah Palin. I flunked a quiz about my own life.

KP.org insisted that there were no “make-up” exams, and that any kind of password would have to be delivered through snailmail. Which, considering that my issues of The Economist are arriving torn to shreds, checks sent to our vendors are getting pilfered, and we regularly receive mail addressed to people living in completely different cities — is not a comforting thought.

So before we all jump on the bandwagon of “cost savings through modernizing medical records,” by all means do some testing of what exactly it is that we’re migrating towards. If I’ve already entered enough personal information to make it dead easy for any script kiddie to steal my identity and go on a spending spree — why is it that this multimillion dollar site can’t even figure out which David LaFontaine I am, and ask questions that are relevant to me? And BTW – David LaFontaine is not exactly a common name, or one where I run into a lot of confusion. It’s pretty unique.

Imagine all the fun that the John Smith/Jose Perez/Wen Chens of the world are going to face.

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Nov 19

Wallflowers at the New Media Dance: Newspapers Can’t Decide On Paid Content

Posted: under This week in paid content.
Tags: , , , , , , , , , , , , ,

Due to some intense consulting projects, multimedia presentations at national conferences, and BizDev meetings with like-minded New Media entrepreneurs, there has been quite a gap in my updates on the whole “Will they or won’t they” kerfuffle over paid content. This should get us up to about last Friday; tomorrow, I will post this week’s follies – and there have been a lot of them.

The overriding theme these days seems to be borrowed from the debate over the war in Afghanistan: dithering. Waffling. Hemming and hawing.

The newspaper industry is shifting from foot to foot, licking its lips, and generally acting like a 14-year-old boy at his first school dance, afraid to take the Big Leap.

This is the screen that pops up on Newsday.com, bugging you to subscribe.

This is the screen that pops up on Newsday.com, bugging you to subscribe.

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Nov 12

Newspapers’ Dying Swan Song: SF Chronicle Tries Glossy Paper, Splashy Color

Posted: under Art, Denial of Reality, Digital Migration, infographic, Newspaper Deathwatch, Newspapers, Platform obsession, Wrongheaded solutions.
Tags: , , , , , , , ,

Print die-hards claimed that all that was needed to reverse the audience migration to the internet was to make newspapers more “lively” in appearance. Early verdict: looks pretty, but the advertising still isn’t there, and that sound you heard was Mort Zuckerman puking and weeping over in the corner.

I’ve been in the Bay Area for a convention of “[fill in blank] for Dummies” authors and various business meetings, and I’ve taken the opportunity to scope out what the San Francisco Chronicle has been doing with its much-ballyhooed investment in glossy magazine-style paper for the front pages of its sections, and the use of high-quality color images.

SF Chronicle - Front Page Wraparound Ad

This is a strategy that is also being pursued in New York by NY Daily News publisher Mort Zuckerman, who has invested more than he would like to admit to (millions? hundreds of millions?) into high-tech printing presses, capable of churning out massive print runs with razor-sharp color. The 15-tower, triple-width ultra-compact Commander CT press looks a lot like the last-generation Nikon F6 film camera. It was the apex of film technology, what many analysts recognized at the time as “the perfect camera” – but that alas, was rolled out just as every working professional made the move to use digital.

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Nov 05

Kazakhstan: Old Stalinist Repression in a New CyberWar Wrapper

Posted: under Blogging, Community, Conspiracy Theories, Online Video, Politics & New Media.
Tags: , , , , , , , , ,

Under the guise of “protecting citizens from terrorists and porn,” the government in Kazakhstan is eliminating freedom of speech and of the press via a particularly toxic cocktail of Old Stalinist School beatings, jailings and intimidation – and cutting-edge CyberWar attacks.

I conducted a series of interviews with journalists, bloggers, opposition political leaders and human rights workers in the cities of Astana and Almaty, Kazakhstan. I was there because in mid-October of 2009, the US State Department invited me to travel to Kazakhstan to do a series of training sessions on New Media and how journalists there could learn from the mistakes that First-World TV & newspapers have made, to prepare themselves for the future.

While I was able to show them some of the new technologies and techniques in online video, mobile, social media and web monetization that I’ve developed an expertise in, I found that their crisis is far more serious than that of US publishers and journalists, whose problems revolve around absurd levels of debt entered into by multi-billion dollar corporations, and the lack of a coherent business strategy.

Kazakh journalists are quite literally fighting for their lives – and losing.

I found this out myself, when I wound up in the hospital with a severe case of food poisoning, the night before I was scheduled to conduct a class for the pro-democracy rights workers, independent journalists and dissenting bloggers. I feel almost ashamed to bring this up, because compared to what the Kazakh journalists go through, barfing for 8 hours seems like a resort vacation. Still, the embassy doctor told me I was on the point of cascading organ failure from radical dehydration. Next stop: a pine box in the cargo hold on the way back to Los Angeles.Medical supplies

A couple days and 4 liters of IV fluid and antibiotics later, my vision cleared and I was finally able to reschedule with the Kazakhstan’s most independent journalists and bloggers. (I had to cancel a trip to Shymkent, where even more dissidents hoped to get my help.) They wanted to interview me, because they were suspicious about my absence. “You don’t honestly think that what happened to you was an accident?” they asked. I admitted that in my most paranoid moments, I wondered…

“There are no coincidences here,” they told me. They went on to state that repeatedly, journalists, human rights workers or others who have come from the U.S. or Europe to meet with them, mysteriously get sick – just the way I did – are hospitalized, and wind up going home a couple of days later without ever actually meeting or doing any work.  They all wanted to shake my hand and congratulate me for joining the club of journalists who have gone to the hospital because of their political beliefs.

I will never know if it was just a bad piece of chicken, or if I barfed out some heinous admixture of polonium and whatever PCBs/Dioxins they fed to the former president of Ukraine that turned his face into a puffy, pockmarked lunar landscape. But I will admit that seeing a couple of goons waiting in an SUV every morning to tail us around contributed to my motivation to publish this piece.

First – a bit of scene-setting: Kazakhstan is an enormous country, spread out over vast empty sub-Siberian steppes (as you can see in my pictures here), with a relatively tiny population of 16 million. It’s floating on an ocean of oil and gas, and may soon be the world’s leading exporter of uranium – check out the Wikipedia entry, if you want more facts & figures.

Put simply, Kazakhstan is a popcorn shell jammed in the teeth of international war & petro-diplomacy. It’s stuck between China to the east, Russia to the north, and Afghanistan & Pakistan to the south. They export a billion barrels of oil a year to Russian refineries, and their natural gas keeps the lights on throughout Western Europe. The U.S. uses their airspace and bases for the war in Afghanistan, and rocket launches from the old Soyuz complex near Baikonur keep the International Space Station functioning.

Nursultan Nazarbayev has been president of Kazakhstan since it split off from the former Soviet Union in 1989.  Just this year, the constitution was changed to basically allow him to be president for life, and it’s a tossup as to whether or not there will ever again be open elections.

While I was there, I visited the cities of Almaty and Astana, which represent the past and the future of Kazakhstan. In 1997, Nazarbayev decreed that the capitol would be moved from the ancient city of Almaty, which is in a green valley just north of the Himalayas, on the old Silk Road, to Astana, which lies in the midst of 1,000 miles of Siberian steppes, surrounded by nothing.

A brief aside on Astana: the best way I can describe this city is to ask you to imagine what would happen if you downloaded the brains of Albert Speer and Walt Disney into a 14-year-old ADHD sci-fi fan & meth freak, and then gave him a trillion dollars and asked him to design the capitol city of Mars.  Dubai in the tundra? Shanghai without the workers or industrial base? Calgary with a creeping sense of menace?

The oil billions have funded the construction of massive towers and buildings; of wide boulevards, lined with struggling fresh-planted saplings; of monuments to the ego of Nazarbayev, where wide-eyed rural citizens line up, and hold up their babies so they can put their tiny hands into the impression of the Glorious Leader’s hand, memorialized forever in a 20-pound block of solid gold.

“It’s all one giant money-laundering scheme,” a journalist confided to me. “The government says that it’s putting up these buildlings, making this city out of nothing for the future of the people of Kazakhstan. They keep comparing this place to Washington, D.C.

“But what it’s really about is that they budget $200 million, maybe for a new library or art gallery. ‘For the people, for the culture of our country,’ they say. Then they build it for $50 million, maybe $20 million.  The rest all disappears.”

There is no real reason for this city, built for giants, and inhabited only by people who work for the kleptocracy, to exist, other than what you can read in “Ozymandias.”

““My name is Ozymandias, king of kings:
Look upon my works, ye Mighty, and despair!”
Nothing beside remains. Round the decay
Of that colossal wreck, boundless and bare
The lone and level sands stretch far away.”

Yeah. It’s like that. Particularly the parts about the “sneer of cold command.”  If you squint a little bit, from atop the big observation towers, you can see the tangled rusted girders sticking up out of the blasted, brown tundra.

As you’ll see in the following videos, the main problem they need help with is the Distributed Denial of Service (DDoS) attacks that are unleashed on them when they dare to step over the line and criticize the government, write about the massive corruption in the banking system, or report the latest bombshell from the president’s ex-son in law. (He fled the country, and now lives in Austria, from whence he periodically releases embarrassing information – such as audiotapes of government officials conspiring to murder & steal.)

In the interviews that are included here, the Kazakh journalists talk about these kinds of problems – of the beatings, intimidation, jailings, fines, cyber-attacks and other methods by which freedom is being systematically strangled to death.  I will write more about this issue in other postings, but for now, I think the greatest impact is for you to hear their raw voices.

I apologize in advance for this video.  I had to blur the face and distort the voice of this journalist, to protect him from the brutal reprisals that are becoming almost commonplace in Kazakhstan. I wish that I could show you the blood clot in this man’s eye, or the fading bruises at the corners of his mouth.

I wish that you could see the way he hunches his shoulders when talking about the beating, stomping and kicking orgy of violence that landed him in the hospital recently, or the anger that replaces that fear when he talks of the beatings that have been inflicted on his colleagues.

I hope that you can still hear in his voice the raw sadness and sense of loss that is evident when he talks about the feeble FlashMob protests that are the only act of defiance left to them, and how even that is being systematically taken away.

But I cannot. I cannot bring this story to you in this open and honest way; maybe it is paranoia, but if it is, then it is well-founded paranoia. The pervasive fear that has been pounded into journalists in Kazakhstan is communicable, and if I have succumbed to it as well, so be it.  I would rather err on the side of caution with these interviews than expose some of the people in them to further harm. This is also why I have beeped out the names of some of the other recent victims, as well as other information that would make it easy to identify this person.

I do recognize that this journalist’s voice and accent make what he is saying a little hard to understand, and so I am adding subtitles.

These journalists told me that the hardest part for them is the feeling of being utterly alone; that the daily outrages against them have been covered up, denied, made to disappear as they themselves are being made to vanish, one by one.

I decided to share these improvised videos (recorded before and after training sessions I led) because the journalists and bloggers I met pleaded with me to share their stories in the hopes that someone in the outside world would pay attention.  To them, the internet represents the last, best hope of writers and photographers and editors who dare to speak truth to power. They have been pushed to the brink, and the DDoS attacks now threaten even that.

I was authorized to show the face and voice of journalist Yevgeniya Plakhina of Respublika.kz, and so she appears here undisguised, although there were some subjects that we discussed that she later requested be edited out. I will post some of the other videos in a later post, since this is getting a bit long.

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Nov 04

Transcript of Kazakh Journalist Interview

Posted: under Uncategorized.
Tags: , , ,

Beatings, midnight phone calls and a culture of fear

This is the transcript of my interview with an independent journalist in Kazakhstan.  He was commiserating with me about my hospital stay, and mentioned that he too, had suffered because of his political beliefs.  I grabbed my little camera, and asked him to describe what happened to him.

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