Will content become a serf?

November 7th, 2009

People used to say that content was king. Amid the recent upheaval in mass media, Time Magazine recently demoted content to a pauper. But an article in the current issue of Wired makes me think Time set the bar too high. Content — or at least content creators — may be headed for serfdom.

The story is about Demand Media, a privately-held Web company that will earn $200 million in revenues this year producing thousands upon thousands of  content bits using a combination of algorithms and freelancers.

The algorithms sift through search terms to anticipate what people might want to know; determine whether there is a glut or surfeit of content in that regard; then estimates the likely revenue-potential of that content through pay per click advertising.

Human freelance editors turn these machine-generated leads into topics that are posted on a work board (Wired author Daniel Roth says, “It’s the online equivalent of day laborers waiting in front of Home Depot.”) Freelancers claim the topics. Short how-to articles may be worth $15. Brief videos $20.

As the article says, Demand Media has discovered that “online content is not worth very much.”

Surely that bodes ill for content creators.

Tough love for newspapers

October 5th, 2009

Working at the center of the newspaper industry meltdown has been humbling. I can’t recall how many goodbye cakes I’ve tasted in the last few years. I’ve quite lost my appetite for them.

But I agree with Jack Shafer of Slate who thoroughly debunks the notion of legislation to benefit newspapers. In his piece, “Saving Newspapers from their Saviors,” Shafer writes:

Propping up troubled papers has a cost. It weakens the enterprises that are rising from below to compete with them to deliver advertising and, yes, deliver news.

If market forces doom incumbent media that doesn’t mean using news to build a community can’t be a money-making venture. It just means new people with fresh ideas will have to figure out how to do it. Meanwhile, as one of the incumbents who hasn’t been moved out or moved on, I have to work harder and think differently, because this is an interesting time to be in media.

Newspaper ad revenues slide to ’60s levels

August 21st, 2009

Ryan Chittum of Columbia Journalism Review takes a look at newspaper advertising in 2009 which is expected to collapse to $31.6 billion, or just below 1993 levels. When he adjusts for inflation the situation gets far worse:

You have to go back to 1965 to find a year with revenue lower in 2009 dollars than what this year is projected to be. That year, the industry took in $4.42 billion, which works out to $30.22 billion in current dollars. The industry can only hope this year hits 1966 levels, which work out to $32.4 billion in real dollars.

I wondered how the revenue picture aligned with newsroom staffing. I wasn’t able to find a comparable time series but I did scan a recent Congressional Research Service report on the state of the newspaper  industry which said:

Daily papers cut their newsrooms by 11% in 2008, the biggest one-year drop since 1978. Daily newsroom staffing is off 17% from the recent, 2001 peak of 56,400.28 According to Erica Smith, a reporter with the St. Louis Post-Dispatch, nearly 10,000 journalists were laid-off or took buyouts in the first five months of 2009 alone.29

Navy journalist by chance

June 22nd, 2009

(Continued from last week when I first considered enlisting because I was broke.)

Although I had forgotten completely about the Navy and journalism, chance intervened. My mother’s birthday is in February and I went over to visit her one day. While I was in her kitchen the phone rang. It was Petty Officer Hall. There was an opening in the Defense Information School, the training site for military journalists. Did I still want to enlist? He had to know and get me signed up in order to guarantee me the training. I remember standing there thinking that this must be karma. I rarely visited my mother. If I had not been there at that very moment it is doubtful that I would have gotten the message or acted upon it in time. So I said yes and took the train back to Coney Island to sign the papers. A few weeks later I went off to boot camp to complete basic training and be indoctrinated as a sailor, which was the prerequisite to getting the journalism training that I wanted.

Boot camp was a memorable experience. It is an exercise in brainwashing accomplished through a great deal of yelling and insistence on following meaningless rules just for the sake of building the habit of taking orders. If I close my eyes I can still remember the hot bourbon-and-tobacco breath of my drill instructor, Petty Officer First Class Gibson, standing almost nose to nose with me, screaming, “Do I look like your momma, recruit?” One instance from that 9-weeks of calculated abuse pertains to my journalism saga.

It was about midway through the cycle when I was told I had to take a typing test to qualify for the journalism training program. I used an old manual typewriter. I had to type either a dozen or 15 words per minute accurately. I failed. The boot camp authorities told me I could not go to the training program. No problem, I said. You can send me home. Because I was guaranteed a spot in the school and if you can’t hold up your end of the bargain, I should not have to finish my enlistment. I would have been more than happy at that point to call the whole Navy thing off. But whoever was in charge of such decisions figured it was the journalism program’s problem to teach me to type. Boot camp couldn’t afford to lose a recruit.

Next: DINFOS-trained killer

Stumbling into journalism

June 12th, 2009

My first job in journalism was for the U.S. Navy. How that came to be takes me back to the winter of 1973 when I dropped out of New York University. I was about 19 and barely getting by as a waiter at a restaurant when I got laid off.  I briefly managed to get a job installing windows but I lost that after just a couple of weeks and so one day I found myself with only train fare, then 35 cents, to get myself to the Navy recruiting station in Coney Island.

Why the Navy? To see the world. I naively thought I could enlist and get whisked away that very same day. It turned out to be more involved than that. I also chanced to get an outstanding recruiter, Petty Officer Hall, who took the time to talk me through the various specialties for which I was eligible to get trained.

What caught my eye was a designation called Navy Journalist. Watergate was then all the rage and I was impressed by the potential for having the same title as the guys who had brought down Richard Nixon. Petty Officer Hall told me I would have to wait for an opening in that training program, and I said fine. As the reality of joining the service loomed closer, I had started to get cold feet. He asked me for a phone number. I didn’t have a phone so I gave him my mom’s number. Then I jumped the turnstile to take the train back to the apartment I had expected never to see again – I literally had only one-way train fare at the time.

When I arrived home I found in my mailbox a financial aid check for about $1,500 dollars. I should have returned it but instead I took it as a sign that I was not destined to join the military. I paid the rent and took a ski trip with my then girl-friend.

But the money went quickly and within a month or two I was broke again.

To be continued.

Death of the Salesman?

June 5th, 2009

I read an article in Wired that was scary — from the POV of the beleaguered newspaper industry. It explains how Google uses auctions to price advertisements. I understood it not all too well which was the scariest part. They have implemented an auction-based approach to selling and they do it on such a routine basis that it seems unbeatable. The customers essentially sell themselves. I don’t know if it is adaptable to newspapers or online news media. I hope so. It is such a powerful selling advantage to have a mathematical formula assign value — provided there are customers who want to buy the medium.

Follow the audience into the 21st Century

November 17th, 2008

(An edited version of an essay that appeared in April) 

Doug Millison mashes up a 1979 B&W graphic by Josh Gosfield

In this final essay in a series let me explain why I accuse mass media of dereliction of duty for helping mislead the nation into war, for uncritically swallowing the sensational and for too often ignoring complex problems until they erupt into crisis.

 Idealistically I am just a very sad American who feels that our nation has strayed from Lincoln’s mission to be “the last best hope of Earth” and that much of responsibility for this lies with the failure of the working press, of which I am part — although I am now on vacation and speak only for myself.

 But I am a pragmatist who does not put much stock in hand-wringing. And while Mario Savio’s impassioned remarks (see graphic above or watch video ) resonate with me, I would not take his suggestion literally because only two types of persons throw anything, especially themselves, into machinery — saboteurs and candidates for the meat grinder. I am neither.

Nor have I merely been critical, for more authoritative critiques abound, including “Breaking the News,” “Rich Media, Poor Democracy,” “The Vanishing Newspaper,” “Fighting for Air,” and “The New Media Monopoly“.

So I have suggested how to improve the credibility of mass media by giving rank-and-file media workers blogs, hosted on company websites, so as to drill thousands of connections down into communities, and from these to pull up ideas and stories that would make better journalism and better business than the all-too-common practice of rewriting the empty press releases issued by the officialdom.

It’s good business because it is people who subscribe to newspapers, tune in to broadcasts or click on web sites. And they like to see and hear themselves. Two Stanford business school professors wrote a great article in which they asked Hoover Adams, founding publisher of the Dunn, North Carolina, Daily Record how his paper had achieved a market penetration above 100 percent. This is what the publisher told the eggheads:

It’s because of three things: Names, names, and names . . . . A local newspaper can never get enough local names. I’d happily hire two more typesetters and add two more pages in every edition if we had the names to fill them up.”

Liberating these suppressed voices is a business opportunity because interactive media is not like mass media. Interactive media is about making connections. People to people. People to information. People to products. Whatever. The old media business model based on distribution is dead. Stick a fork in it. Web-heads like David Weinberger have been trying to tell us for a very long time the Internet is a two-way street. But we still have this mindset of the one-way trip to the driveway. And cannot get to these new land of connections with Soviet-style central planning. We must allow newsrooms to follow their audiences into the 21st Century.

In many years of covering Silicon Valley I’ve noticed how those guys promulgate “laws” to lend authority to their educated guesses. I’d call this a cheap trick but make lots of money doing this so let me tell you about Metcalfe’s law which says the more people who use a network the more valuable it becomes. More connections means greater value plus better journalism. It’s a win-win.

(Question: Is community the new media business model?)