Russian ISPs openly brag about how much pirated content they have – it’s their market differentiator Years ago, working in Russia, back when the whole “Content Pirates” project was just the mere glimmering of an instinct, I was talking with the local techies about how the web works in Russia. At the time, we were […] [...more]
Russian ISPs openly brag about how much pirated content they have – it’s their market differentiator
Years ago, working in Russia, back when the whole “Content Pirates” project was just the mere glimmering of an instinct, I was talking with the local techies about how the web works in Russia. At the time, we were trying to implement an internet-centric business model for a publishing company, and were coming up against massive cultural differences in how to make money off of content.
This profile for vKontakte founder Pavel Durov is particularly ironic, since he just bailed out of the company, citing intense pressure from Kremlin-backed investors. The site has 143 million users worldwide, 88 million in Russia. They generate about $170 million a year in revenues, mostly from advertising. And the site is rife with pirated works.
Every time I read through one of these EULAs, it just keeps getting worse and worse. I upgraded the iPad to iOS6, because I wanted to test it out, and I’m not ready yet to turn the Maps feature on my iPhone into a hot, steaming mess. But part of the whole upgrading regimen is, […] [...more]
Every time I read through one of these EULAs, it just keeps getting worse and worse.
I upgraded the iPad to iOS6, because I wanted to test it out, and I’m not ready yet to turn the Maps feature on my iPhone into a hot, steaming mess. But part of the whole upgrading regimen is, as is depressingly familiar to Apple users, having to agree to a new, dense and even more piracious End User Licensing Agreement (aka those damn “I Agree” screens that 99.9% of the population never actually reads, but just clicks on to make them go away).
So here, as a service to any of you who might be interested in just what rights you irrevocably, permanently, idiotically, signed away without ever actually bothering to check, are some choice bits from the EULA that is now part of your iPhone/iPad/iPod:
The contradictory voices are there. They are presented by voices that mock & disagree with them - in much the same way that newspaper editors, radio hosts and TV anchors did back in the pure human filtration days - but the voices and bits of information are there.
I do agree that there is a serious problem in our society today that a large segment is seemingly living in its own reality, with its own set of facts an interpretations. But this has been true before in our history as well (See: Davis, Jefferson et al.). But this problem predates the web, and is attributable more to talk radio and the removal of the Fairness Doctrine and Equal Time than anything else ... and to the failure of the American educational system to produce large swathes of the citizenry capable of critical thinking. [...more]
Eli Pariser’s TED talk on the dangers of allowing someone else to choose what you see/hear/feel
If I were a weaker man, I’d just fold up my tent and move on.
However, upon closer inspection, I find myself saying “Yahbut …” a lot throughout this FUD screed.
Norwegian company Norli Libris introduces nonsensical “eBook” publishing model Quick Hit: Saw this on BoingBoing, followed it over to Applied Abstractions, and just couldn’t resist commenting on it, for 1) the benefit of my international students, who might wonder WTF is up with this and 2) to keep me from yanking out my own hair […] [...more]
Norwegian company Norli Libris introduces nonsensical “eBook” publishing model
Quick Hit: Saw this on BoingBoing, followed it over to Applied Abstractions, and just couldn’t resist commenting on it, for 1) the benefit of my international students, who might wonder WTF is up with this and 2) to keep me from yanking out my own hair by the fistful. The idea is that consumers will have to buy digital books not as downloadable files, but on cards called Digi Short, which will be inserted into the back of customized (i.e. DRM’d to death) Kibano Digi Readers.
Apparently, the one advantage would be that said “books” would thus be exempt from VAT in Norway, although the list price will be the same as a download.
The Norwegian publishing and bookselling industry, an astonishingly
backward group of companies when it comes to anything digital, yesterday
introduced a new concept for e-books that, even for them, is rather
harebrained. They want to sell e-book tablets where you can buy books
not as downloads (well, you can do that, too) but as files loaded on
small plastic memory cards, to be inserted into the reader [article in Norwegian].
This preserves their business model (though they can probably stop
using trucks and start using bicycles for distribution). According to
their not very convincing market analysis, this is aimed at the segment
of the book buying market who do not want to download books from the net
(but, for some reason, seem to want to read books electronically.)
This is such an awful, awful, CueCat-level thinking approach to digital distribution. The whole point of having a mobile device like the iPad or Kindle or Nook is so that you can do instant purchases & consumption of content. You walk past a poster advertising the new blockbuster action movie, now available as a Blu-Ray or for download – you know you’re going to have an hour to kill on the commuter train on the way home, and you missed the movie in theaters, to you decide to splurge. Out comes the tablet, button is pushed, movie is set to download in the background as you continue walking to the train station/subway/hovercraft depot.
Hint: You want to ENCOURAGE your customers to make impulse buys of your content, rather than make it tougher for them & thus allow time for second thoughts to creep in.
Making the public buy, collect, sort & carry with them little plastic cards with books on them? Good God. It displays the desperate attempt to keep the content all within the walled garden; if we can’t sell dead-tree editions or shiny little discs (goes the thinking), well, maybe if we just shrink it all down to credit-card size, we can keep people having to pay us for physical objects. And as long as the Big Publishing controls distribution, pricing & availability of a physical object, well then, all the old rules still apply.
People will not carry around little cards with books as data on them, slotting them in and out of a tablet reader. And even if (via some alien mind-control ray that bathes the Earth in Luddite Stupidity) they do, a thriving business will soon spring up, dealing in the blank pieces of plastic that can then be filled with the data.
The media business is no longer, and never will again be about, the control of big belching factories that churn out physical copies of stuff that gets trucked from A to B and then put on shelves. It’s about paying attention to every other step that used to lead up to that point. You know, all the stuff that newspapers and TV stations and movie studios and record companies ignored, and is the reason so many of them are in trouble.
That is, concentrating on creating something wonderful. Useful. Delightful.
It makes me sad to see that so many companies are still thinking in terms of how to defeat the digital revolutions, rather than on how we can use the web to do so many totally new, amazing art forms.
UPDATE: The initial reports (see the fact that this was a “Quick Hit”) seemed to indicate that it was Digi.no that was doing this. It turns out that it is a company named Norli Libris, whose attempt at rolling the clock back has elicited comment from other bloggers, as well as the mighty EnGadget. I thus fixed the attribution & links at the top of this post, and added a graf explaining more about Norli Libris. Thanks to @sigvald for pointing this out via Twitter (and to Google Translate for helping me decipher the Norwegian story on this.)
The point is that the problems with the news business bear surprising resemblance to the problems of society as a whole. We've tied our fate to the unfettered free-market economic forces, without really taking notice of the fact that there are a few industries, at least, that are not prepackaged Cheetos. Where diluting quality and streamlining production schedules and all the other tricks of modern corporate management may work in the short term ... but in the long term are not only killing the industry, but harming ... well, basically Western Civilization. [...more]
The good folks at CNN asked me to appear on Backstory” to talk about the News of the World’s phone-hacking scandal.
I tried to oblige them with some insights onto why this kind of scandal keeps happening, and why. You can see the results of the interview in the segment below:
More on why the news business keeps getting hit with privacy scandals like this, and why it won’t stop after the jump…
The Knight-Ridder chain of newspapers used to represent the sinewy, beating heart of American journalism. Then they got run into the ground, bought up by Tribune dorks who were more interested in playing out their boyhood “I wanna play right field for the Cubs!” fantasies, and then sold to the “grave dancer,” Sam Zell. Zell’s […] [...more]
Now that the Tribune creditors seem to have grown a pair, and are starting to openly murmur about where all their money might have gone – in stark contrast to so many investors who have complacently plodded through the zigzagging pens of modern American Capitalism towards where the Bernie Madoffs, Angelo Mozilos & Magnetars of this world wield their blood-soaked financial sledgehammers – the word is out that Zell has reached the end of the plank.
So now what?
The villagers gathered around the moat look at each other blankly, their torches sputtering, pitchforks starting to droop. There is muttering in the ranks, a strange sense of deflation. What to do now that the monster has abandoned them?
Perhaps some new savior will arise. One who can lead them out of the bottomless cycle of self-asphyxiation and learned helplessness. A man who has “vision,” and who (with just the right sort of spinelessboot-lickingunderstanding board of directors) can restore the kingdom to its past glory. Maybe … maybe … yes. Yes! That’s it!
This shall be the image of serious news-gathering and investigative reporting in America.
The situation bears a strong resemblance to the newspaper industry, and the reason papers are in the same place as the auto industry. Let's take a look at the places where the news industry and the auto industry screwed the pooch: [...more]
GM’s NUMMI plant in Fremont was the solution to their crisis. So why did they ignore its lessons?
They don't make 'em like this any more. Even so, the rear bumper had to be reattached.
It’s about how the U.S. auto industry could have saved itself by actually paying attention to the way its business was eroding, and listening to the people who came back from Japan and transformed the Fremont plant from a place that was “like a prison … with sex, drugs and alcohol freely indulged in during the working day … where the workers maliciously sabotaged cars, and the managers didn’t care, as long as they got their bonuses for churning out pure numbers…”
The situation bears a strong resemblance to the newspaper industry, and the reason papers are in the same place as the auto industry. Let’s take a look at the places where the news industry and the auto industry screwed the pooch:
1. Starting in the 80s and going through the 90s, sales declined, as customers were turned off by the shoddy quality of the product
In the auto industry: anyone who drove a U.S.-made car in the 80s knows what I’m talking about. Everything about the cars sucked. The seats were uncomfortable to sit in, the controls made no sense and were hard to deal with. I drove a lot of rental cars in that era, and I can’t tell you how many times the A/C control knob came off in my hand. Or the windshield wiper knob was installed upside-down. In one case, the bolt holding the steering column up on a Chevy Cavalier came loose and the steering wheel dropped into my lap. Which is minor, compared to the engines seizing and misfiring, the electrical system shorting out, the windows not rolling up (or down), the doors sagging on their hinges…
In the newspaper industry: the buyouts and mergers started by the relaxation of the cross-ownership rule, caused many papers to skeletonize their staffs, and run big colorful graphics in the papers. And lots more wire copy. I worked at the Arizona Republic during this era, and I saw what they were doing on “Zone Editions.” We had the same cruddy stories for Mesa, as we did Tempe, as we did Scottsdale. They were feature stories about things like a guy with a trained parrot that would whistle and dance. We’d run it one week in the Mesa zone, and then the next week, I’d see it in the queue again for Scottsdale. Mostly, the Zone Editions were there to snarf up the advertisers in those areas, and make sure that no competition sprang up to challenge the big paper. “It doesn’t pay NOT to advertise,” was the slogan, and it was true, because of the package deals the Republic was able to offer, sucking the oxygen out of the local markets. Most papers had a monopoly position in their markets, and could pretty much be assured of making a profit, no matter what they did. Meanwhile, the readers were starting to notice that their newspapers were lacking … how shall we say this … news.
2. The workers felt ignored and belittled, so they began to act out, and a “give a shit” attitude took over
In the auto industry: the line workers had no power to offer suggestions, and indeed, were punished for speaking up. All that mattered was churning out enough cars to meet the quotas, no matter how shitty the quality. Resentfulness led to workers intentionally sabotaging cars, which led to even greater expense down the line, when the shitty cars had to be fixed by workers who really didn’t understand what was wrong with them, and just used the “bigger hammer” method to make cross-threaded bolts hold, or quarterpanels stick onto the chassis.
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 […] [...more]
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.”
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.
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. [...more]
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.
In which I get very "Meta" and write a blog post that aggregates other blog posts that were written about aggregation. The discussion in all cases gets heated very quickly. Insults are thrown around, fisking takes place in the comment threads, but a few actual new ideas & fact-based analyses sneak in here and there. The fact that some very smart entrepreneurs are actually interested enough to toss in some innovative thinking is rather heartening, actually. [...more]
In which I get very “Meta” and write a blog post that aggregates other blog posts that were written about aggregation.
I am also posting this over on the AIM Group blog, as part of what I think might become a regular feature, “This week in the paid content debate.” The best of the bunch is the back-and-forth between billionaire Mark Cuban, and the bete noire of many print publishers, Michael Wolff, who runs the Newser.com content-aggregation site. Cuban actually suggests something that shows that he’s put more thinking into the issue than the kneejerk “Up with the paywalls!” bunch. I note below the flaw in his plans – my ex-roommate used to describe for me in detail how impossible it was at Time-Warner-AOL to get the jealous VPs of Home Video, say, to play nice with the guys from HBO and pay-per-view. Why make someone else’s P&L sheets look good? That just means they are going to get the Exec VP slot faster than you…
This is an example of a newspaper that has developed multiple, reliable, alternative revenue streams. UOL in Brazil is doing quite well, thank you. They planned ahead, unlike so many complacent U.S. papers.(Click for larger)
Anyway, the discussion in all cases gets heated very quickly. Insults are thrown around, fisking takes place in the comment threads, but a few actual new ideas & fact-based analyses sneak in here and there. The fact that some very smart entrepreneurs are actually interested enough to toss in some innovative thinking is rather heartening, actually.
Mark Cuban gives some free advice to fellow billionaire media mogul Rupert Murdoch: http://blogmaverick.com/2009/08/08/my-advice-to-fox-myspace-on-selling-content-yes-you-can/ Basically, he advances the idea that to get consumers to pay for news, you have to bundle it up with other goods, services and content that exist within giant organizations such as Fox or Time-Warner. A “Newsjunkie” subscription would come with access to special sections of Fox News, a couple of books from HarperCollins, magazine subscriptions and DVDs of 20th Century Fox movies. Commenters point out that such “synergies” remain elusive in these big media conglomerates, as each of the divisions is still in its own silo, with its own P&L, jealously guarding its own turf. Cuban paid special attention to aggregators, suggesting that newspapers ban links from aggregators such as Michael Wolff’s Newser.com.
…leading to Mark Cuban responding with a schoolyard-taunt opus: I’m Rubber, You’re Glue http://blogmaverick.com/2009/08/12/to-michael-wolf-im-rubber-youre-glue/ Not sure what it means when the discussion over paywalls degenerates so quickly, even amongst intelligent and successful publishers. Apparently, Cuban takes umbrage to Wolff calling him a “big fat idiot,” and in turn, taunts Wolff by criticizing his “outdated model” of a site.
The fallacy of the Link economy: http://paidcontent.org/article/419-the-fallacy-of-the-link-economy/ This is another assault on the value of inbound links from Google and other news aggregation sites. Arnon Mishkin says that even sites that publish a headline and short description of a news story appearing on another site are destructive, because readers mostly skim stories, and therefore get the news content they need without having to click through. No word from him on what he thinks newspapers should do on newsstands – perhaps they should be like old-school porn magazines, in plain brown wrappers.
Ken Ellis responds on NP-Harder: http://npharder.wordpress.com/2009/08/14/the-fallacies-of-arnon-mishkin/He picks apart some of the assumptions as to what constitutes value from links, and concludes, “All that being said, I still agree in principle with his final three points. However reclaiming value from aggregators isn’t going to help publishers much. They need subscribers and a pay wall. Not an iron curtain, but a permeable pay wall along the lines of the Wall Street Journal. There’s no save-my-business-model pot of gold out there in the hands of aggregators to help you pay for all that good journalism.”
TechCrunch proclaims “The Media Bundle is Dead,” http://www.techcrunch.com/2009/08/16/the-media-bundle-is-dead-long-live-the-news-aggregators/ Erick Schonfeld addresses paid content by claiming that back when newspapers still enjoyed local monopolies on news, “80 percent of the stories in the paper sucked,” but that the audience was still forced to buy the paper because there was no alternative. Kind of like the argument that the music industry has failed because people are no longer willing to pay $15 for a CD that contains one song they like, and 9 others that are crummy.
A post drawing an interesting parallel between Microsoft’s dilemma on how to compete with Google’s free Open Office product, while still maintaining its huge profits from its own MS Office suite http://www.pbs.org/idealab/2009/08/future-of-local-news-about-more-than-paid-content225.html
From “Scooping the News” a post entitled: Newspaper Access Fees Destined for Failure: http://www.scoopingthenews.com/2009/08/newspaper-access-fees-destined-for.html He compares the paywall solutions to pop-up ads. He lists five points that he claims explain why access fees will not generate that much revenue. Basically, the argument against boils down to the “internet readers are used to getting information for free, and they have lots of alternatives, so they’ll never pony up when newspapers start slamming down the paywalls.”