journalism

Will Variety and Hollywood Reporter paywall gambit pay off?

Yes, subscription membership revenue models can pay well, but only if you can get the subscribers. So when I read that Hollywood Reporter and Variety are going for the paywall model, I wonder if they're missing something. Writes Nikki Finke on Deadline Hollywood:

I've known that Variety spent 6 months intensely studying all its options. Now toppers Neil Stiles and Brian Gott have decided to go to a paid strategy right after the first of the year. That means the website will no longer be free. So online and print content will both be subscriber-based. Exactly which combination of content and services will be offered has yet to be determined. But this is being done in recognition of the sad fact that, ever since Variety pulled back that paywall in 2006 (back when all that mattered was traffic numbers at the expense of subscription dollars), the trade has lost a ton of money. Meanwhile, sources tell me that The Hollywood Reporter is about to dump its daily print version. The date considered was October 16th, but now that's been moved back. So this means THR will pursue a paid web-only strategy for its content.

The thing is that Hollywood of all industries is a community, with gossip, rumors, insider tips, deal-makers, wannabees, and a very insider, insular, provincial social graph, often colored with a healthy dose of cynicism. What better place to leverage community participation in a trade publication?

This wouldn't preclude Variety from setting up freemium approach, with a paywall around their hottest news. But maybe they could build some traffic by leveraging the open source tools out there to build an online community. It's a tough pond with plenty of sharks, but if anyone has an advantage, it's the industry insider Variety.

Or maybe not.

Comments on the Deadline Hollywood post are interesting.

No, Google is not a monopoly

First, some context

Henry Porter, an opinionator granted a regular podium by the Guardian, has written a bit of a rant claiming that we're victims of Google, a "monopoly."

Google presents a far greater threat to the livelihood of individuals and the future of commercial institutions important to the community. One case emerged last week when a letter from Billy Bragg, Robin Gibb and other songwriters was published in the Times explaining that Google was playing very rough with those who appeared on its subsidiary, YouTube. When the Performing Rights Society demanded more money for music videos streamed from the website, Google reacted by refusing to pay the requested 0.22p per play and took down the videos of the artists concerned.

It does this with impunity because it is dominant worldwide and knows the songwriters have nowhere else to go. Google is the portal to a massive audience: you comply with its terms or feel the weight of its boot on your windpipe.

The article is full of these kinds of claims, all largely based on what seems to be either a complete misunderstanding of the nature of the Web, or a lack of understanding of the word "monopoly."

The core of Porter's ignorance, willful or not, is revealed in this statement:

Despite its diversification, Google is in the final analysis a parasite that creates nothing, merely offering little aggregation, lists and the ordering of information generated by people who have invested their capital, skill and time.

This is true only if you think that things exist on their own, and that their relationships to you, their relationships to each other, do not exist, or are not worth looking at, let alone making available for use -- let alone making relevant to our day-to-day lives.

Google provides a means of finding relevance in that sea of stuff out there on the Web. It's like a mega-index of the "book" of the Web. That relevance was largely hidden from us before search engines. To find relevance, one had to ask friends, browse libraries, analyze the Dewey Decimal System, dig up Yellow Pages, rummage through desk drawers to find that one tidbit of information you want right now.

That is hardly "nothing."

In 1787 Thomas Jefferson wrote: "Were it left to me to decide whether we should have a government without newspapers or newspapers without a government, I should not hesitate to prefer the latter."

Thomas Jefferson was also against a strong judiciary, which in hindsight sounds pretty foolish, imho. But Jefferson aside, there's no indication that what newspapers are in function -- delivery systems for filtered information -- is not going anywhere. It's just the newspaper industry, and the infrastructure and market that enabled the paper to be printed, that is going away. News is still happening. It's just that how we're getting it is changing.

There is a brattish, clever amorality about Google that allows it to censor the pages on its Chinese service without the slightest self doubt, store vast quantities of unnecessary information about every Google search, and menace the delicate instruments of democratic scrutiny.

I don't like how US-owned search engine companies are going along with the Chinese Government's restrictions on the Internet, either, but let's be clear: It's the Chinese government that is censoring the Internet. Google is going along with it, along with much of the rest of the American economy, let's face it. This is about corporate collaboration with government constraints on what we consider "American values," and not about a Google monopoly or how Google is anything but pretty darned typical these days.

Now in many ways Porter is like many other people who have enjoyed the privilege of being given a special podium from which to pontificate and opinionate, who is upset that the market is shifting such that people who haven't been given such privilege are able to not only publish, but actually find an audience for what they publish.

How dare they? "Those bloggers!" is the cry we've heard over and over, often while pointing to the most outrageous or inane examples as cases-in-point -- ignoring that the vast majority of people "in print" also tend to produce an abundance of useless, inane, erroneous, misinformed information as well.

Until search engines, the only filtering agent people had was the editorial board of the local paper or the book publisher or the magazine. Now our filtering agent reaches beyond those sources -- although those sources, when right, get the most relevance -- to include others, including people who never went to journalism school, and never were given a paycheck by a media conglomerate. Oh the humanity!

So now Google is the dominant search engine, and thus potentially is a huge influencer in what sources we can find to be relevant to our needs, wants, desires ... to our lives. Such power Google has!

But is Google a search engine monopoly? Really?

Remember in the '90s? What was the dominant search engine then? Yahoo. Microsoft, with all its market dominance on the desktop, really was having trouble competing.

Google pushed Yahoo aside. How? By providing better search results. You searched Yahoo and got some good results and lots of spam and pr0n. You searched Google and got better results.

Relevance was the ticket to Google's successful insurgence. And relevance is why Google still dominates.

Relevance is a commodity. Nobody owns it. Nobody controls it. Relevance is not even a scarce commodity. There's always more relevance. Better relevance.

Want to defeat Google? Build a tool that gives better results. In other words, be more relevant than Google.

Yes, Google has a magnificent physical infrastructure worth a crapload of money.

But even in these hard economic times, there are plenty of craploads of money out there to build a new tool to defeat Google. It wouldn't even take a huge crapload of money, as craploads of money go, since server infrastructure costs are going down.

No, the scarcity is in the innovation. The imagination. The engineering to guide what that crapload of money would build.

Microsoft has been trying and failing, and nobody can accuse Microsoft of being short on craploads of money.

It's the relevance that Google has, and it has it only ephemerally. All it will take is a tool with more relevance, backed by a relatively small crapload of money, to whittle at Google's market dominance, or even knock it off of your default home page. Maybe it will be a new search engine. Or a new social media paradigm. Or something we haven't even imagined yet.

All we know is that we don't know what it's going to be like just a few years from now. Blaming Google for that is like blaming the weather vane for this afternoon's rain shower.

Hat tip to Dave Winer and others for Tweeting the Guardian link.

News and the internet (regarding the sad spectacle of the monkey clinging to the apple in the jar)

It really is painful to watch, in a way, how prominent members of the old-school news media complain about the internet. Today it's Robert J. Samuelson, who writes:

If the Internet permanently crashed tomorrow, I'd be thrilled.

I kid you not.

When I joined The Washington Post as a reporter in 1969, hardly anyone I knew in the news business considered it a business. We belonged to a craft, a calling or maybe a profession. We didn't worry about the industry's "business model," a term we'd never heard. Economic realities occasionally intruded, usually involving salaries (always too low). But mostly we blissfully ignored the proposition that newspapers aimed to make money. We condescendingly thought that the moneymaking people—advertising salesmen, managers—toiled so that we could pursue our higher purpose, which was to inform the public.

This comes from an award-winning business journalist. Color me naive, but isn't it obvious that a print publication with a cover price, paid subscriptions and loads of advertising is a business? The nature of the business may be changing, what with financial speculators trying to squeeze more and more juice from the melon, but it has always been a business. Right? Right?

We've been disabused of our naiveté and arrogance. All our business models (for newspapers, magazines, network news) are now in retreat, if not rout. The Internet is stealing our audiences and our ads. Few of us imagined ourselves as heirs to textile or steelworkers, disemployed by new competition and technology. But we are.

This, I believe, is a conflation of issues. The internet is bringing a new reality to newspapers (and all other media), but in this age of predatory Wall Street speculation in the news industry, I don't think the layoffs can be laid at the feet of a new technology.

How does a medium "steal" audiences? Especially when newspapers are right here in that new medium? It's not like there's no money in the internet. Why is it that web ventures are able to monetize their websites but newspapers fail at it so terribly? And why do old media folks then demonstrate the bad manners of blaming the messenger? --I mean, if they notice at all.

In Ad Age today, Simon Dumenco has an answer:

Who or what is really killing print? Craig Newmark? Blogs? YouTube, maybe? The internet in general? Or any of the other usual suspects?

Nah, print is killing print. More specifically, a handful of half-wit overlords at many -- if not most -- big print-media companies are killing print.

We see evidence of this every day.

An internet-company executive I know says of his vague and mysterious job: "I create value." That's an M.B.A.-enabled, blowhardy thing to say, of course, but he means it -- and when he says it, it occurs to me new-economy guys like him are at dead odds with many print-media executives these days, who seem to specialize in destroying value, even as they pay lip service to the "convergence of traditional and electronic media."

It's like watching a monkey thrash around, unwilling to let go of the apple in the jar.

So what's happening here, really? Perhaps it's that our taste for news is changing, and the old guard are unwilling to come along.

[Aside: Personally I think the real tragedy is what's been happening in television "news." In the end, Samantha Bee may have the best take. Who knows -- maybe as video penetration and integration in the web increases, we'll see the internet start to do to television news what it has been doing for print: Make it better.]

This kind tectonic economic and cultural shift and resulting backlash is happening across the board. And even small-scale ventures are affected. Look at what has happened at JPG Magazine. I just have to shake my head at how some people just don't get it. As Molly Holzschlag notes:

As soon as I began reading what happened regarding JPG Magazine, I knew that here was even more evidence of my long-held belief that the room for inauthentic, manipulative voices in our wired culture is becoming very small.

And while the internet has provided avenues for alternative means of finding and evaluating information, it's not the internet's fault that old, comfortable oligarchies and would-be manipulators are feeling the pinch as conversations replace PR broadsides. We all know, or should know, that it's not the internet itself that's the issue, it's what people do with it that matters. And forget the gloom and doom voices crying that the sky is falling. The real excitement, in my book, is that, in the end, it's what people can do using the internet that is our greatest hope to make the world just a little (or a lot) better.

Back to Molly:

Authenticity is not a flaw, nor should it be seen as an “act” of transparency. This is courage. These are actions that just might help save the world.

I have always stated that the Web gives the masses the potential to do just that, and it is clear that we can, via our communities and social networks, improve ourselves and gain more enlightened global perspectives that are based in truth and forgiveness rather than lies and manipulation. Idealistic? You bet. Optimistic, well, yes, but it’s not like I believe that this won’t take a very long time or that it will be a successful endeavor. I just feel it terribly, terribly important that we all realize what’s going on. The testing of boundaries and breaking them are part of this shift toward a world where honesty will truly be the best policy. Breaking those boundaries will cause pain and bruising for us all as we go through it, but go through it we must or the chance to better ourselves as individuals and society at large might pass us by.

Indeed.