New York Times media columnist Ben Smith reports on efforts to compel Google and Facebook to turn over some of their advertising revenues to the news organizations whose content they repurpose without compensation.
The debate over what platform companies owe the news business goes back many years and has come to resemble a theological dispute in its passions and the certainty expressed by those on either side. Indeed, longtime digital-news pundit Jeff Jarvis immediately weighed in with a smoking hot Twitter thread responding to Smith.
Oh FFS, no, the news business crushed itself by relying on protectionism over innovation. @benyt goes all Murdoch & endorses Australia's digital Stamp Act. This isn't media criticism. It's lobbying. "Big Tech Has Crushed the News Business" https://t.co/vZJXLn4L4n
I’m not going to resolve that debate here. Rather, I want to offer some context. First, something like 90% of all new spending on digital advertising goes to Google and Facebook. Second, Google’s auction system for brokering ads destroyed any hopes news publishers had of making actual money from online advertising. How bad is it? Here’s an except from my 2018 book, “The Return of the Moguls”:
Nicco Mele, the former senior vice president and deputy publisher of the Los Angeles Times, who’s now the director of the Shorenstein Center on Media, Politics and Public Policy at Harvard’s Kennedy School [he has since moved on], explained at a Shorenstein seminar why a digital advertising strategy based on clicks simply doesn’t work for news organizations that are built around original (which is to say expensive) journalism. “Google has fundamentally shaped the future of advertising by charging on a performance basis — cost per click,” he said. “And that has been a giant, unimaginable anchor weight dragging down all advertising pricing.”
For example, Mele said that a full-page weekday ad in the LA Times, which would reach 500,000 people, costs about $50,000. To reach the same 500,000 people on LATimes.com costs about $7,000. And if that ad appeared on LATimes.com via Google, it might bring in no more than $20. “Models built on scale make zero sense to me,” Mele said, “because I just don’t see any future there.” Yet it has led even our best newspapers to supplement their high-quality journalism with a pursuit of clicks for the sake of clicks.
From $50,000 to $7,000 to $20. This is why the advertising model for digital news is broken, and it’s why newspapers have gone all-in on paid subscriptions.
As I wrote Monday, I thought the most significant part of Nick Ciubotariu’s post in defense of Amazon was his flat-out denial that the company fires a certain number of employees every year as a way of “culling” the staff. So I want to note that The New York Times is now asserting that its reporting is correct and that Ciubotariu is simply wrong:
His points contradicted the accounts of many former and current colleagues, and some of his assertions were incorrect, including a statement that the company does not cull employees on an annual basis. An Amazon spokesman previously confirmed that the company sought to manage out a certain percentage of its work force annually. The number varies from year to year.
The responses to the Times’ megastory on Amazon’s workplace environment, reported and written by Jodi Kantor and David Streitfeld, continue to roll in. Here are a few — none of them long — that I think are worth your time.
At Fortune, Mathew Ingram argues that though the Times’ reporting may be accurate, it lacks context. “For some, it is probably a cruel place where they [employees] feel unwelcome, and their performance is judged more harshly than they would like,” Ingram writes, “but for others I expect it is a challenging environment that makes them do things they might not have even thought they were capable of.”
Ingram also makes an important point that I couldn’t help but notice as I was reading the Times opus: an underlying dismissiveness of Amazon because it’s a mere retailer (not actually true, but whatever). Ingram puts it this way:
I think part of the reason that Amazon gets singled out is that it is seen as just a retailer, not a company like Apple that is making magical products to improve people’s lives or fill them with joy. This tone runs throughout the New York Times piece, which talks about how employees are subjected to inhuman treatment “with words like ‘mission’ used to describe lightning-quick delivery of Cocoa Krispies or selfie sticks.” The implication is that selling things somehow isn’t a worthwhile goal.
Buzz Machine blogger Jeff Jarvis thinks the Times article lacks balance, and says that though it did manage to take note of the fact that Amazon chief executive Jeff Bezos also owns The Washington Post, more emphasis should have been placed on the Times’ rivalry with the Post.
“The Times did not say until halfway down its very long piece that Amazon founder Jeff Bezos owns the Washington Post, which some say is closing in on The Times,” Jarvis writes. “The problem at a moment like this is that once one starts to believe The Times might have an agenda, one is left trying to suss out what it might be.”
Former Poynter faculty member Bill Mitchell, a colleague of mine at Northeastern, praises the Times article for its use of on-the-record sources rather than relying on anonymous whispers. “I don’t recall an anonymous source amid the 6,700 words,” he writes. Actually, there are a few, but he’s right that the story is better documented than many such stories.
Mitchell also hails the Times for its “even-handed tone,” which I find interesting mainly because of how different readers interpret the same material in different ways. I thought the Times article was overwhelmingly negative, and that the Amazon employees and officials who spoke favorably about the company were cast in the role of corporate stooges.
Anyway, much to chew over — as there should be given Amazon’s role as a paradigm of the new economy.
An all-star panel came together on Friday evening at the Online News Association conference in Chicago to discuss The New York Times’ celebrated Innovation Report — an internal document about the Times’ efforts to adjust to the digital age that became public when it was leaked to BuzzFeed.
The report, wrote Joshua Benton of the Nieman Journalism Lab last May, is “one of the most remarkable documents I’ve seen in my years running the Lab.” Both the full document and a comprehensive summary are available as part of Benton’s piece, and they are well worth reading. The report describes how the Times — in many ways an innovator in the transition to digital — is still being held back by an antiquated management structure, an overemphasis on what goes on page one of the print edition, and a lack of understanding of how to promote and distribute the Times’ journalism.
The ONA panel was moderated by Ann Marie Lipinski (@AMLwhere), curator of Harvard’s Nieman Foundation. The panelists were Amy O’Leary (@amyoleary), deputy editor for digital operations at the Times and one of the authors of the report; Tyson Evans (@tysone), the Times’ editor of newsroom strategy, who also contributed to the report; and Alex MacCallum (@alexmaccallum), recently promoted to a newly created assistant managing editor’s slot to oversee audience engagement.
Hundreds of people were on hand, and many of them — including me — live-tweeted the panel. Bursts of fragmentary news are no substitute for a well-crafted story about the event (here’s one by a student who covered it), but they can give you some flavor of the discussion. Here’s what I had say, including a couple of retweets that I thought were worth sharing.
Normally I’m not a big fan of journalists’ signing petitions. But preserving net neutrality is so fundamental to what we do that we should all send President Obama a strong message. We need net neutrality to provide the public with the information it needs for self-government — it’s that basic.
If you care about Net Neutrality, take 1 minute & sign this White House petition http://t.co/tAU7yJUJjq
This particular petition is endorsed by Tim Wu, who literally coined the phrase. I haven’t checked out all the prominent supporters, but I know that Jeff Jarvis is among them. If the possibility of democratic media is important to you, please sign.
What should a 21st-century news organization look like? A single entity, run from the top, with a common set of values? Or a loose network of related projects, sharing a brand and to some extent a mission but operating semi-independently?
With the likely departure of Ezra Klein from The Washington Post, the management of one of our last great newspapers might be showing signs of preferring the former approach. Klein, who founded and runs the widely read Wonkblog at washingtonpost.com, is reportedly leaving for a new venture, as yet undefined. According to Ravi Somaiya in The New York Times, Klein sought an eight-figure Post investment in the new project. Klein already has his own Wonkblog staff, but clearly he has something much bigger in mind — perhaps an all-purpose independent news organization along the lines of Talking Points Memo. (Although it wouldn’t be called Wonkblog — the Post owns the name and will be keeping it, writes The Huffington Post’s Michael Calderone, who broke the news about Klein’s proposal last month.)
We can’t know everything that went into the decision. Maybe it came down to money. But Wonkblog generates a hefty amount of Web traffic — more than 4 million page views a month, according to a profile of Klein in The New Republic last February. “It’s ‘fuck you traffic,’” a Post source told TNR’s Julia Ioffe. “He’s always had enough traffic to end any argument with the senior editors.” Apparently, that’s no longer the case.
Significantly, the Times reports that new Post owner Jeff Bezos was involved in the decision to let Klein leave. Last September, shortly after announcing his intention to buy the Post for $250 million, the Amazon.com founder lauded the “daily ritual” of reading the morning paper — which led to some chiding by one of the Post’s own journalists, Timothy B. Lee. Despite Bezos’ well-earned reputation as a clear-eyed digital visionary, he appears to have some romantic notions about the business he’s bought into. And allowing entrepreneurs such as the twentysomething Klein run his own shop inside the Post might not fit with that vision.
What makes the likely Klein departure even more significant is that in 2006 the Post, under the ownership of the Graham family, allowed John Harris and Jim VandeHei to walk out the door and start Politico. Now, I have a lot of problems with Politico’s gossipy “drive the day” approach. But as Times columnist Ross Douthat has observed, much of the media conversation about Washington politics has shifted from the Post to Politico, threatening one of the Post’s franchises. It would have been enormously beneficial to the Post if Politico had been launched under its own umbrella. And Politico itself might be better.
So if the Post is reluctant to loosen the reins, are there any other news organizations that are taking a different approach? Walt Mossberg and Kara Swisher walked away from their AllThingsD site at The Wall Street Journal and set up a new project called Re/code in partnership with NBC. Perhaps the most famous example is Nate Silver, who brought his FiveThirtyEight poll-analysis site to The New York Times a few years ago and then moved it lock, stock and barrel to ESPN. In that regard, I suppose you could say NBC and ESPN have embraced the network approach. To some extent you might say also that of The Huffington Post, as it combines professional journalists, unpaid bloggers (I’m one) and a dizzying array content — from Calderone’s excellent media coverage to the notorious Sideboob vertical.
Jeff Jarvis recently argued that Patch — AOL’s incredibly shrinking hyperlocal news project — might have stood a chance if AOL chief executive Tim Armstrong had taken a network approach. Rather than running cookie-cutter community sites from the top down, Jarvis asked, what if Patch had offered advertising and support services to a network of independent or semi-independent sites?
The problem with such scenarios is that media executives — and business leaders in general — are not accustomed to the idea of giving up control. Calderone reports that some Post staffers have long grumbled at what they see as “preferential treatment” for Klein, which suggests the depth of the problem. But entrepreneurial journalists like Harris and VandeHei, like Mossberg and Swisher, and like Silver and Klein have a proven track record.
Legacy news organizations need to find a way to tap into that success outside the old models of ownership and not worry about obsolete notions of employer-employee relationships. Reach and influence are what matter. And they are proving to be incompatible with the ambitions of young journalists like Ezra Klein.
If you haven’t heard AOL chief executive Tim Armstrong’s nauseating conference call with Patch employees — complete with the mid-call firing of Patch creative director Abel Lenz, who had the audacity to take the great man’s photo — then by all means avail yourself of the opportunity. (Via Jim Romenesko, who has been diligently tracking the story of Patch’s woes.)
The end seems to be near for Patch, AOL’s network of hyperlocal websites, which never had a business model that made sense. Given that Patch is failing in precisely the way it was predicted to fail (see, for instance, this archive of Patch articles at Business Insider), Friday’s conference call was a time for Armstrong to show some decency and humility — not to strut around like a ’roided-up rooster.
The cuts Armstrong announced were devastating — over the next week, hundreds of employees will be laid off and around 400 Patch sites will be closed or somehow partnered with other sites, according to Darrell Etherington of TechCrunch. That’s nearly half of Patch’s 900 or so sites.
At this point, the most merciful thing Armstrong could do is shut down the whole thing and help the hard-working local editors become owner-operators. I suspect many of these sites could be viable if the corporate bureaucracy AOL has laid on top of them were removed.
Howard Owens, publisher of The Batavian, an independent online news site in western New York, makes a compelling case at NetNewsCheck that the economies of scale AOL promised not only haven’t materialized, but that putting together a vast network of hyperlocal site actually costs more than launching independents. The problems, he writes, include enormous tech investments and highly paid supervisors at corporate headquarters:
Armstrong chased scale: IT infrastructure scales, server farms scale, message systems scale, cloud computing scales. But local news does not scale.
Widget makers understand scale. The most expensive widget is the first one. Each new widget is comparatively pennies on the dollar.
In the news business, the first story costs just as much as the third or the 30th or the last. Online, it’s possible to get more production out of a single reporter, but time is not elastic. At the end of the day comes the end of the day.
What Armstrong should have done, Owens adds, is fund independent start-ups — an idea that AOL could still pursue, writes City University of New York journalism professor Jeff Jarvis at his blog, Buzz Machine. Jarvis offers this advice to Armstrong:
Set up independent entrepreneurs — your employees, my entrepreneurial graduates, unemployed newspaper folks — to take over the sites. Offer them the benefit of continued network ad sales — that’s enlightened self-interest for Patch and Aol. Offer them training. Offer them technology. And even offer them some startup capital.
You could end up better off than you ever were by being a member of an ecosystem instead of trying to own it.
Whether AOL steps or not, at least one other funding source for converting Patches into independent news sites has emerged. Over the weekend Debbie Galant, co-founder of the pioneering hyperlocal site Baristanet and now the director of the New Jersey News Commons at Montclair State University, announced on Twitter that her program was ready to offer grants and training to New Jersey Patch employees who lose their jobs. (There are 89 Patch sites in New Jersey, according to Patch’s online listings.)
As I found in “The Wired City,” hyperlocal online news is alive and well, with a variety of nonprofit and for-profit sites thriving. But as Owens says, local doesn’t scale. Independence and grassroots control are keys. Chain ownership was deadly to the newspaper business, and it was never a good idea for online news, either.
If the demise of Patch can lead to something better, then let’s get started.
Edward Jay Epstein has written an innuendo-laden column for The Wall Street Journal in which he strongly insinuates that filmmaker Laura Poitras and/or journalist/blogger/lawyer Glenn Greenwald of The Guardian criminally assisted Edward Snowden in leaking National Security Agency documents.
Epstein’s toxic brew of archly worded questions leads to the inescapable conclusion that he believes the two journalists ought to be investigated and possibly charged under the World War I-era Espionage Act.
The First Amendment and press freedom questions that haunt the Espionage Act are particularly important right now. Changes in media and technology have put the tools of journalism and media making in the hands of more and more people, challenging old assumptions about who is a journalist and how journalism is done. Increasingly, independent journalists, nonprofit news outlets and citizens are playing critical roles in newsgathering and reporting on the most important issues of our time.
I don’t think Stearns gives sufficient weight to the idea that merely publishing leaked documents is, in fact, a violation of the law, and that investigative journalism depends on the hopeful notion that the government won’t use its authority. Otherwise, though, it’s a useful guide to the issues at stake.
More: Greenwald responds to the Epstein column in this Storify involving (mainly) Jeff Jarvis and Michael Wolff.
The media — all 15,000-plus reporters, photographers, editors, producers and assorted hangers-on who’ve descended on this unlovely, brutally humid old city — are having a nervous breakdown. And you’re invited to watch.
With the Republican National Convention making no news, and with the Democratic convention destined to be similarly vacuous, it seems the only story media people are talking about is the fact that there’s no story.
I wrote those words 12 years ago in Philadelphia, where I was covering the nomination of George W. Bush for the Boston Phoenix. If anything, the ennui that has come to permeate our national political conventions has grown even more pronounced since then. Nothing newsworthy will take place inside the Tampa Bay Times Forum this week or at Bank of America Forum in Charlotte, N.C., the following week.
But, once again, some 15,000 members of the media have showed up anyway, and most of them will be covering the same non-story. As the noted media observer Jeff Jarvis wrote on his blog, Buzz Machine, the financially strapped news business is spending some $60 million to attend two conventions even while cutting far more important coverage elsewhere. Jarvis continued:
Note that even while newspapers and news organizations have shrunken drastically, we are sending the same number of journalists to the conventions that we sent in 2008 and 2004. Why? Editorial ego: It’s fun to be there, in the pack. It’s fun for a paper or station to say, “We have our man/woman in Tampa/Charlotte.” Well goody for you. It’s a waste.
Yet it doesn’t have to be that way. Yes, way too many journalists are attending the conventions, and many if not most of the folks carrying press credentials this week should have stayed home. But I never found any shortage of news at the four national conventions I covered from 1996 to 2004. The secret — and it’s really no secret at all — is to get out of the hall and look for stories. I was a reporter for the Phoenix, an alternative weekly, during those years, so leaving the media pack behind wasn’t just tolerated; it was required.
In 1996, when I covered the Republican convention in San Diego, I was one of a surprisingly small group of reporters who took a bus to a rally at which Pat Buchanan made his last stand. No doubt other journalists were afraid of missing out on even a moment of Dole-Kemp mania.
In 2000, covering the Republicans in Philadelphia and the Democrats in Los Angeles, I followed protesters around the city streets and reported on two “Shadow Conventions” — left-leaning events organized by Arianna Huffington, who had only recently moved from the conservative to the progressive side of the political spectrum.
At the Democratic convention in 2004, on my home turf in Boston, I skipped Barack Obama’s keynote address because I was writing on deadline. So what? Yes, I missed a bit of history, but it’s not as though his speech wasn’t covered. What mattered was that my fellow Phoenix reporters and I went looking for news outside the building — and found plenty of it, from a meeting of gay and lesbian Democrats to a church service/rally in honor of the late senator Paul Wellstone, from demonstrations in the streets to panel discussions on the sad state of political journalism.
I have little doubt that Jeff Jarvis will be proven right, although there will be a few honorable exceptions. But it doesn’t have to be that way. All the media have to do is get off their collective rear ends and go looking for news. (And let me give a plug to David Bernstein and Chris Faraone, who are heading up the Phoenix’s Tampa coverage.)
I’ll close here as I did in Philadelphia in 2000:
Sure, the media will cover the horse race — who’s up, who’s down, who’s gaining, who’s losing — as well as the accusations and responses, the biographical retrospectives, and the gotchas. That’s all valuable stuff.
But they’ll almost certainly miss the biggest political story of all: the profound disconnect between average citizens and their elected officials…. A sign at the Shadow Convention put it best: “We Can Only Vote Every Four Years; Money Votes Every Day.”
It’s a story the media could have tried to cover during convention week, but — with rare exceptions — they didn’t even try. Instead, the story coming out of Philadelphia was that there was no story. There was. If journalists would start focusing more on the public’s alienation and less on their own, maybe they could start to tell it.
Photo (cc) by Gage Skidmore and republished here under a Creative Commons license. Some rights reserved.
New Haven’s final pre-primary mayoral debate in what has been a spirited campaign was held Thursday — and the New Haven Register, the Journal Register Co.’s flagship, didn’t bother to cover it. Instead, the Register linked to a story in the New Haven Independent, a nonprofit news site.
It was a curious decision, to say the least, and it comes at a time when JRC chief executive John Paton is the toast of the newspaper business for espousing a “Digital First” strategy.
In late August I had a chance to interview Matt DeRienzo, the new editor of the Register (as well as of two other Connecticut dailies). He struck me as a nice guy and genuinely committed to Paton’s goal of reinventing the daily-newspaper business online. But even though this particular debate was not as high-profile as previous ones, it still seems strange to outsource a story about an important city election to another news organization.
Among the Journal Register Co.’s high-profile advisers is Jeff Jarvis, well known for saying, “Do what you do best and link to the rest.” Good advice. But if covering a mayoral debate is not among the things a city newspaper does best, then I think we have to ask why.
Maybe someone got sick — though I’d hate to think the Register is so thinly staffed that no one else was available to send into battle.
Update. Paton responds via Twitter: “NHR doesn’t cover one event and you think that calls into question Digital First as a strategy? Ridiculous.”
The case for Apple’s iPad seems clear enough. Some 700,000 were sold on Saturday, which was double what had been predicted.
The case against the iPad is based on two different but related arguments. First, critics say the iPad is designed mainly for consuming rather than creating content, and that it thus represents a corporate-driven attempt to put the Internet genie back in the bottle and return us to our former status as passive couch potatoes. Second, the iPad is a closed system controlled entirely by Apple, and will therefore stifle the sort of innovation that gave rise to such phenomena as Google and Twitter.
Both propositions are true. Yet they strike me as overblown.
The case against the iPad as a consumption-oriented device is summed up well by Jeff Jarvis, who writes — accurately, I think — that a principal reason the device has been the recipient of so much media buzz is that media executives see this as a chance for a do-over: this time, moguls will control the content and consumers will pay for it. Jarvis writes:
The iPad is retrograde. It tries to turn us back into an audience again. That is why media companies and advertisers are embracing it so fervently, because they think it returns us all to their good old days when we just consumed, we didn’t create, when they controlled our media experience and business models and we came to them.
Yet the iPad isn’t just a repository for paid apps; it’s also a pretty good machine for browsing the Web. If you are currently reading the New York Times on the Web rather than paying for electronic delivery through Times Reader, for instance, well, the iPad will let you keep right on doing that.
As for participation and conversation, the iPad’s virtual keyboard is pretty lousy (based on my brief encounter with it at the Apple store in Peabody on Saturday), but it’s good enough for posting to Twitter and Facebook, or even for writing short blog posts.
Besides, as Howard Owens notes, “The vast majority of people … are media consumers, they are lurkers, not creators.”
The tech argument against the iPad strikes me as even more esoteric. The idea is that by requiring developers to write apps within a rigid, closed universe, to get them approved by Apple and to share revenues with Apple, Steve Jobs is stifling the innovation that gave rise to both the personal computer and the Internet.
At BoingBoing, Cory Doctorow waxes rhapsodic over the days when the Apple II Plus came with schematics for the circuit boards, and quotes something called the “Maker Manifesto” in writing, “Screws not glue.” Doctorow’s point is that we should be able to rip our devices apart and customize them the way we like. Needless to say, Doctorow is not talking to too many people — just his fellow hackers.
Now, I don’t find either Jarvis’ or Doctorow’s critiques to be entirely without merit. But I’m proceeding on the assumption that the iPad is not going to take over the world. The iPad is an auxiliary device that will not take the place of computers. It’s also only one model for how to make a tablet computer. As Jarvis notes, Google is said to be working on a model, and it’s likely to be far more open than Apple’s. We’ll see if it’s as popular.
Personally, I’m not all that impressed with the iPad. I got to spend about 10 minutes with one on Saturday. Granted, that wasn’t really enough time to put it through its paces. But it was enough to see that the display is no better than that of a good-quality laptop; that the virtual keyboard is fairly unusable (you’ll be able to buy a plug-in keyboard, but wouldn’t you rather have a netbook?); and that it’s too heavy to wield like a magazine or newspaper.
Even for pure media consumption, it’s not necessarily better than a laptop. I’d rather take an iPad into the living room. But a laptop is better for propping up on the kitchen table during breakfast, because you don’t have to hold it up in front of you. I might get a later, presumably lighter, version. But I’m not salivating.
The ridiculous amount of hype that has surrounded the iPad, to which I am now contributing, has made all of us think this is more important than it really is. It’s not going to save the traditional media, however much media executives may wish it, and however much Jarvis and Doctorow may be gnashing their teeth.
Media Nation 