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


Jan 30

Bailout Cash for Newspapers? A Cure That Would Only Worsen the Underlying Disease…

Posted: under Blogs, Community, Denial of Reality, Digital Migration, New Marketing, new media, Newspaper Deathwatch, Platform obsession, Politics & New Media, Wrongheaded solutions.
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I posted this as a comment here, already, but it bears repeating.

While the concept of a bailout for newspapers (and allegedly for good journalism) seems attractive at first blush, I fear that in practice, the billions in bailout funds would suffer the same fate as the billions bestowed upon the banking industry.

That is, they would be swiftly pocketed in the form of “well-earned bonuses,” and only a few crumbs would make it down to the level where the money would actually do any good.  While I’m not in the “burn baby, burn” camp the way many other digital triumphalists have been (and there’s at least a faint whiff of that hereabouts), I think that dumping fat stacks on media conglomerates will not solve the underlying problems of the crumbling of business models.

Now then – a Manhattan Project (of sorts) to build solid business models to support quality journalism? That would = the hoary “teaching a man to fish” paradigm.

I know faith in The Invisible Hand is in short supply these days (and where it can be found, it’s usually being in the stocks in the town square, being pelted by posters on Angryjournalist.com), but the fact is that there is a demand for something to perform the function of information dissemination that newspapers do/have done. If the Drug Wars have taught us anything, it is that where there is a demand, and money is attached to that demand, there will correspondingly be a supply.

This is all growing out an essay on the op-ed page of the NY Times and chittering in the Twiterverse, as the nervous journalists see the vultures staring downward, and big guy in the hood with the scythe striding through the newsroom.

By endowing our most valued sources of news we would free them from the strictures of an obsolete business model and offer them a permanent place in society, like that of America’s colleges and universities. Endowments would transform newspapers into unshakable fixtures of American life, with greater stability and enhanced independence that would allow them to serve the public good more effectively.

o-rly-2Well, allow me to respond to that one.

Not to get all Reagan on you, but that is complete and utter madness. Newspapers are so important, so crucial to our lives, that it is the duty & obligation of the government to preserve them?

Wow.

OK, it’s a given that journalists have something of a Messiah Complex.  You have to have something else going on psychologically to get into this low-pay high-stress field. But this is really crossing the line. And making an unfortunate conflation between the newspaper industry and good journalism – yes, it gets done at newspapers, and there are some magnificent examples of this. But the industry is asphyxiating itself, and dumping wads of cash on it will not solve the underlying problems.

Government intervention here would create more problems than it would solve. Allison Fine is onto this issue:

So, the fundamental premise of the need to endow newspapers and preserve them at public expense is that false information exists on the Internet? Of course it does, as it does on TV, on the radio (should we also consider endowing Rush?) in magazines, and in many, many newspapers. Which media would the authors like to choose as being least likely to contain false information? And which medium do they think did the best job of  bringing the lies and corruption of the Bush Administration to light — hint, don’t look at newspapers, Josh Micah Marshall and his Talking Points Memo website would be a much better bet.

So, the fundamental premise that only newspapers can hold government accountable is specious. But that isn’t my biggest issue with the article. It is the naive assumption from those outside of the nonprofit sphere that 1) nonprofit status is intended for companies that don’t have a viable business model, and 2) raising billions of dollars in endowment funds is doable, particularly in today’s economy.

If anything, the effect of billions spent on preserving the newspaper format as it is, without any changes, will mean that we’ll all be getting print products dumped on our doors that are increasingly ad-free.  Yeah, there will be a number of advertisers who will still be there because the eyeballs are there.  But the trends of readership of mass print products are not heading up (niche and community newspapers are another story).

Worst of all, the preservation of a business model that is clearly no longer functional will suck the oxygen out of the room for the products that should (and are, in some cases) being developed to do the job that newspapers have done.  Artificially propping up newspapers in their current form will stifle the innovation in the marketplace, and long-term, only make the inevitable collapse worse.

We’re kinda seeing that take place in the real estate and credit markets right now. The government artificially propped up the economy for eight years with crazy spending and stupid low interest rates.  Instead of hard work & ingenuity to produce real growth, it was Free Money Day Every Day, as real-estate speculation in areas like Scottsdale, Las Vegas, Miami & L.A. led to the “$30,000-a-year millionaire” who made $10,000 in arcane mortgage kickbacks every time he/she signed his/her name to a loan document.  The results of that are the global economic meltdown we see occurring right now.

Meanwhile, driven by the market economics, ESPN is starting to experiment with setting up a disaggregated local blog network to cover sports at a granular level.

ESPN sees the writing on the wall. In their industry they need strong stories to promote sports and strong sports to drive interest to their stories.  A fan that is underserved by his newspaper is less interested in following his team on ESPN.  Additionally, there is big advertising money for ESPN if it can become the resource for local sports.

This is a long term proposition, however. Even the mighty ESPN cannot yet afford to hire 30 beat writers to cover each NBA team. Instead it is working towards its goal by teaming with independend bloggers in a win/win/win proposition.  The bloggers have a chance at monetizing their efforts, ESPN can become the central resource it wants to become and fans can get the information they want as a new, viable local sports media business model starts to thrive.

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Jan 29

E-Ink Chatter Getting Louder: Dying Newspapers May Jump to E-Paper Devices

Posted: under Digital Migration, E-ink devices, Newspapers, Platform obsession, Wrongheaded solutions.

I still think that obsessing on the platform that the news comes across on is symptomatic of a severe case of Missing The Point.  Let me say it again: viewing the newspaper crisis as being caused just because people don’t like buying paper anymore is akin to a 19th-century horse breeder thinking that people not liking ponies is the reason they’re using the telegraph rather than Pony Express.

It ain’t about the pony! Stop trying to attach wires & batteries to the pony & hope that will make some kind of a difference.

It’s about a real change in the nature of the whole business. Read “Cluetrain.” People still want the news and information – in fact, recent stats show that more people than ever are tuning in to “hard news” because of the dire economic, political and military situations.

But they don’t want to just be talked at.  We want to talk to each other, connect to each other, and share things amongst ourselves without Big Media jamming their irrelevant messages in our faces. If that can take place in an old-school print product – as it does, among weekly newspapers, which are the one segment of the newspaper industry that is maintaining its numbers – then fine.  Online, mobile, whatever – as long as it does the job that we want it to do, the People Formerly Known As The Audience will use it (and it might even attract some of that New Marketing money to support it). 

Looking at the problem as something that can be solved by employing a magic doohickey is the worst kind of thinking.  Like the cynical network president in “Scrooged” insisting on featuring mice on television, because the numbers are coming back that more people are leaving the TV for their pets to watch, and “we don’t want to miss out on this audience demographic.”

Anyway, up in Seattle, the P-I is apparently under consideration by Hearst to be a pilot project for the new Plastic Logic e-reader distribution system.

Hearst had been looking at flexible screens for its new e-paper, but
Plastic Logic spokeswoman Betty Taylor told Crosscut that while her
company’s wireless e-reader can operate on flexible material like
plastic film or foil, Plastic Logic’s consumer testing shows readers
prefer a more rigid display. Plastic Logic’s reader will be about a
quarter inch thick and have a considerably larger screen than Amazon’s
wireless e-reader, the Kindle. Both devices are wireless and use the
same low-power, high-resolution E Ink display technology, which is
partly owned by Hearst. While the Kindle shifts screens when users
press the sides of the device, Plastic Logic’s screen will be touch
sensitive, turning pages with a finger swipe across the screen.

I think that experimenting with e-delivery of a newspaper is certainly a good thing – insofar as the experiments also extend to making it possible for the users to have two-way conversations and to be able to share things amongst themselves that they find interesting and/or useful. Trying to maintain the top-down informational control systems of the traditional media on a new electronic platform will certainly be interesting, but ultimately doomed.

Meanwhile, the next-gen iPhone aka iPhone 2.1 is being spotted around the Bay Area.   Supposedly, what this next-gen phone will do is allow users to perform multiple tasks simultaneously – i.e. loading up a large web page or sending a info-dense video file via email while also checking Facebook friend status updates.  Right now, the best I can do is insofar as multi-tasking on my iPhone is listening to a podcast while scrolling through contacts. 

And, finally, it appears that Kindle 2.0 will come out at the O’Reilly conference on Feb. 9, while I’m in Kiev (probably demonstrating Kindle 1.0).

 

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Nov 13

New vs. Old Media Flamewar – We Really Don’t Have Time for This, Guys…

Posted: under Digital Migration, monetizing mobile content, Multimedia, new media, Newspaper Deathwatch, Newspapers, Platform obsession, Webconomics, Wrongheaded solutions.
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Let’s set the stage.

First, Ron Rosenbaum unloads on Jeff Jarvis for being “increasingly heartless” about newsroom cutbacks, layoffs & the general death spiral.

A sampling:

Not all reporters had the prescience to become new-media consultants. A lot of good, dedicated people who have done actual writing and reporting, as opposed to writing about writing and reporting, have been caught up in this great upheaval, and many of them may have been too deeply involved in, you know, content—”subjects,” writing about real peoples’ lives—to figure out that reporting just isn’t where it’s at, that the smart thing to do is get a consulting gig.

But Jarvis believes the failure of the old-media business models is the result of having too many of those pesky reporters. In his report on his recent new-media summit at CUNY, he noted with approval one workshop’s conclusion that you’d need only 35 reporters to cover the entire city of Philadelphia. Less is more. Meta triumphs over matter.

It makes you wonder whether Jarvis has actually done any, you know, reporting.

Oh, that’s nasty. Shorter Rosenbaum: “Jarvis is an substanceless, fluffy airhead, taking advantage of gullible publishers, peddling his New Media snakeoil & banking fat stacks while real reporters who actually work for a living are being thrown to the wolves.” Read More

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Oct 31

Future Newspaper: Will it Look Like Harry Potter’s “Daily Prophet”?

Posted: under Digital Migration, E-ink devices, New Marketing, Newspaper Deathwatch, Newspapers, Platform obsession, Wrongheaded solutions.
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This is getting really, really close to the vision of the future that all the e-Ink dweebs have been yammering about for, oh, the last 40 years or so. The idea of an object that marries the (perceived) strengths of a newspaper with the electronic display have become something of an obsession for old-guard newspaper editors/publishers/curmudgeons.  More on that in a bit. 

For now, check out this nifty little Kindle-a-like…

I particularly like how the display can now handle much better grayscale, and especially how you can use a stylus (finger?) to control the display, write your own notes, etc.  The form factor of stuff welded to a hunk of plastic is obviously just a “placeholder,” so the ugly industrial look right now doesn’t bother me. 

We’re still missing the part where we can roll the damn thing up and stick it in a backpack or back pocket … but, given the delicate liquid crystals in the display, that vision of what the display can/will be is most likely a mirage anyway.  Also, I don’t think I’d recommend treating any of the rather toxic & corrosive battery technologies with such cavalier violence either.

With all the numbers that have come out this week about how the newspaper (and magazine) print products are convulsing in violent death throes, much faster than even the most pessimistic among us had feared, a vision of what the future of the news product might look like as shown here is somewhat heartening. 

And yeah, I know. Focusing in on a physical object that the news is delivered on is like a restaurant critic obsessing over the china pattern on the plate that the duck a l’orange is served on. 

However.  To extrapolate to the more trenchant issues in the newspaper industry – it’s more important to focus in on whether the duck is moldy, or the duck appears a day after you order it, or the other diners start pelting you with the green beans almondine while the waiter steals your wallet and screams in your ear about a real-estate opportunity… [Wow! I think I just waterboarded that metaphor! W00t! Yay me!]

While I love the idea of using one of these things to read the news, to have it in my pocket or carried around with my other junk, constantly updating me as to what’s going on … my fear is that newspapers & media companies will focus in on this as a possible magic solution to their problems.  This isn’t because the people in charge are bad, or stupid, or any of the other calumnies flung their way by the increasingly smug digerati (and mea culpa, I have been guilty of that myself on occasion).

It’s because newspapers are run by corporations these days, and corporate guys look to concrete, hard solutions to problems that they can wrap their minds around.  Problems with product distribution call for investment in shiny new trucks or routing equipment or big heavy steel cranes … things that you spend money on, that are built of metal and that have big engines in them that make the floor shake a little bit, and that make you feel like you spent your money on something substantial, something that has value.

In contrast, spending a buncha coin on a squishy, touchy-feely thing like “changing corporate culture,” or “re-imagining product possibilities,” or empowering entrepreneurial spirit” … well, a good example of this is the war in Iraq.  Or the war on drugs.

We spend massive sums on technological, physical solutions to what is basically a mental & spiritual problem.  We bomb the shit out of Fallujah, or build big radar dirigibles to patrol the border for cocaine smugglers, and wonder what it is that went wrong when the problem just morphs into some other face, and continues somewhere else, away from the heavy iron Death Machine we’ve constructed.

Thoughts?

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