OMFG! Change! Media freaks out!

April 5th, 2012

I got a call today from ABC.com’s Joanna Stern about Google’s Goggles. She’s very nice. But I had a fit when she started by asking me about all that could go wrong with the new technology. That is your angle? I screeched?

OMFG. Why must that be the starting point for media? Technology bad. Technology scary. Ooh. Ooh. We must save world from new technology. We must think all bad things to happen with technology. Our people sheep. Sheep scared. Stupid sheep. We big protectors.

GMAFB. (Figure it out.)

I said: Imagine all the wonderful things this amazing technology could do, alerting people to news around them, enabling them to report news around them, finding out information, staying connected… I can’t wait to try on a pair.

I suggested she look at the case of the heinous Girls Near Me app this week. It made terrible and disgusting use of technology that could be used to good ends — to, for example, find Starbucks near me or friends near me or repair people near me or cops near me. The world quickly freaked out and for good reason. Apple and Facebook quickly cut the assholes off. Case solved. System worked.

I said that when phones came with cameras, we heard freakouts about people taking them into gym locker rooms. Gyms promptly banned them. Case solved. System worked.

New technologies arrive. We take a little time — as quickly as days as long as months or even years — to negotiate our new norms. And then life proceeds — better, thanks to said new technology.

Why the hell must media and government begin with the default of Chicken Little? I’m sick of it.

Here is Stern’s piece. I had much more to say. You can now imagine what I said.

Mapping new opportunities in technology and news

April 5th, 2012

At CUNY’s Tow-Knight Center for Entrepreneurial Journalism, we believe technology provides many still-untapped opportunities for news. So we commissioned Dr. Nicholas Diakopoulos to research and map that territory. He came back with a very good and readable paper and with an exercise/game to help media folks find that opportunity. We’re offering that game to journalism schools and media companies.

Here is Andrew Phelps’ report on the research at Niemanlab. See my longer post about the effort here; see Nick’s paper here as PDF, here on Scribd.

Online News Association members: Nick and my CUNY colleague Jeremy Caplan have volunteered to run brainstorming sessions at this year’s conference. So please vote for their session here. We’ll bring lots of games to give to participants. You can also email us to ask for them here (but — as with anything free — supplies are limited!).

Says Phelps: “The paper is high-concept but short, and everyone who wants to reinvent journalism should read it…. Breaking down the problems makes solutions a lot more attainable.” That’s the idea.

The importance of JOBS

April 5th, 2012

The JOBS bill being signed by President Obama today is critical to the emergence and growth of the next generation of industries as ecosystems.

Those ecosystems are made up of three layers: Platforms (Google, Amazon, Salesforce, Facebook, Kickstarter, Federal Express, Foxconn), which make it possible for entrepreneurial ventures to be built at lower cost with less capital and reduced risk at greater speed. To provide the critical mass that large corporations used to provide — to, for example, sell advertising at scale or acquire distribution or acquire goods or services at volume — sometimes these ventures need to band together in networks (Glam, YouTube, Etsy, eBay). This is how I simplistically draw it in a whiteboard:

ecosystemwhiteboard

Our economy — equity markets, regulation, taxation — has been built to support The Firm: large companies that controlled the entire chain from design to manufacturing to marketing to distribution, gaining efficiency and control as they gained size. The new ecosystem still benefits large companies if they are platforms, as today much — perhaps most — of the value created via the net falls to new corporate behemoths: Google, Amazon, Facebook….

But it’s at the entrepreneurial layer that the real work is being done, the real efficiency is being found, and the real value is being built. But they need capital — not much, but they need it. And they need to be able to recognize the value they create. That’s what I hope Steve Case and others worked toward with the JOBS bill. Andrew Ross Sorkin is worries that the new law’s loosened regulation for some companies will mean that more will lose money. But Henry Blodget counters that it’s not the SEC’s job to save you if you’re stupid enough to invest in Groupon (told ya!). The lighter regulation certainly bears watching.

But the part of the bill that encourages me is the ability of small companies to raise small amounts from small investors. I see this as economically democratizing on both sides of the transaction: more small companies disrupting large firms and more real investors able to get in on the opportunities (and risks) of a platform-enabled entrepreneurial economy.

Such small-scale investment has already been possible in the U.K. — not just possible but encouraged through 30% tax break on investments. Recently I got email from a company set to benefit, Escape the City (soon to be renamed escape.co), which helps would-be refugees from London’s financial district build new and one hopes better lives outside it. Cofounder Mikey Howe kindly wrote to me because he’d read What Would Google Do? and said it helped him think in new ways. (Thank you, Mikey.)

Howe wrote on the occasion of the company sending a letter to its 57,000 members inviting them to pledge to invest in the venture. Within one hour, $6.6 million was pledged. I checked back with him three weeks later and 2,200 members had pledged $15 million (more than they will end up raising). What’s exciting is not just that a small company can more easily raise investment funds but that this small company knows its potential investors. They are members of the service already: a community of customers and investors. Imagine what that relationship could do to help a startup, when your users, your customers have a stake in your success. (I also enjoy the notion that their venture attempts to disrupt the financial district they left.)

Start Something You Love: Escape the City…1 year on from Escape the City on Vimeo.

Until the JOBS bill, about the closest thing we had in America was Kickstarter. My entrepreneurial journalism students are eager to try to use it to raise funds — perhaps a bit too eager, I caution them, for funding a single product or project does not a sustainable strategy make (any more than begging for grants from foundations). But properly used, Kickstarter reduces risk by performing the best possible market research (pre-orders) and allowing an entrepreneur to use her customers’ capital to start her venture while also turning customers into marketers. Kickstarter could not sell equity. Should it? I think that’s an entirely different proposition. In any case, now we can see Kickstarters of a new sort help more new companies. See also the U.K.’s Funding Circle, which loans capital to startups (and which just got an investment from New York’s Union Square Ventures).

The irony of the JOBS bill’s title (it stands for Jumpstart Our Business Startups) is that it may end up killing more jobs than it creates as it funds highly disruptive and highly efficient new ventures that will try to replace large and now inefficient companies in old vertical industries. (See my post, the jobless future.)

But if the disruption is inevitable — and I believe it is, across many industries from media to retail, banking to travel and even manufacturing — then the only sane response is to find the opportunity in the change. The JOBS act helps more people, entrepreneurs and investors, find more opportunity. That, more than bailouts, is the wise role for government to play in the shift from an industrial to a digital economy.

Lies

March 17th, 2012

You need not take a journalist’s oath to tell the truth. You need only be born to a mother such as mine, who told me and my sister often–very often–that “there’s nothing worse than a liar.” It worked on us. My sister became a minister and I became a journalist.

Mike Daisey became a storyteller, a performer, a bald-faced liar whose lies only betrayed the cause he cares about. I just listened to the devastating — devastatingly honest — retraction This American Life issued for Daisey’s stories — his jumbled fiction, his trumped-up tales — about Apple’s factories in China. The most humiliating moments were those filled with silence — which public radio editors usually snip out, to make people sound surer, smarter — when Daisey couldn’t fabricate his next lie.

The worst of this episode to me is Daisey’s insistance — and he’s hardly the first — that he need not be held to a standard of truth and he need not be expected to deliver facts because he is not a journalist. Now journalists might enjoy the notion that they hold a monopoly on truth. But, of course, this idea is just a bullshit layer cake.

Isn’t telling the truth the norm in our society? Don’t you expect anyone you know — friend, family member, coworker — to tell you the truth? If they don’t, aren’t you at least disappointed? If caught in a lie don’t you expect your credibility to be diminished? Isn’t there a cost to lying in society?

So how could that norm be canceled for public figures, for politicians who insist we’ll have death panels or for performers on stage who think the spotlight forgives lies?

I hope not and I don’t think so. But perhaps we haven’t made the price of lying for them high enough. So they think they can get away with it to accomplish what they want to accomplish. I’m given hope that This American Life and a Marketplace reporter, Rob Schmitz, held Daisey to their standard of truth, and that fact-checking of politicians and pundits has become a fad online. I’d say that’s a possible good use of crowdsourcing energy: Wikipedia editors who are now bored because they have written about everything possible would do well to turn their attention to our public figures.

When anyone — performer, politician, blogger — says he has a license to lie because he’s not a journalist, he’s lying.

Whither capitalism?

March 4th, 2012

I’ve been arguing for sometime that technology leads to efficiency over growth and that that will have profound impact on society we can only begin to grasp. Michel Bauwens now furthers the argument, asking whether capitalism can continue. I don’t think I’ll go that far yet. But his arguments are fascinating.

Where there is no tension between supply and demand, there can be no market and no capital accumulation. What peer producers are doing, for now mostly producing intangible entities such as knowledge, software and design, is to create an abundance of easily reproduced information and actionable knowledge.

This cannot be directly translated into market value, because it is not at all scarce – it’s over-abundant. And this activity, moreover, is done by knowledge workers, whose ranks are steadily expanding. This over-supply threatens to make knowledge workers’ jobs precarious. Hence, an increased exodus of productive capacities, in the form of direct use value production, outside the existing system of monetisation, which only operates at its margins. In the past, whenever such an exodus occurred – of slaves in the decaying Roman Empire, or of serfs in the waning Middle Ages – that is precisely the time when conditions were set for major societal and economic changes.

Indeed, without a core reliance on capital, commodities and labour, it is hard to imagine a continuation of the capitalist system.

The problem is this: internet collaboration has enabled the creation of use value in a way that totally bypasses the normal functioning of our economic system. Normally, increases in productivity are somehow rewarded, and these rewards enable consumers to derive an income and buy products.

But this is no longer happening. Facebook and Google users create commercial value for their platforms, but only very indirectly. And they are not at all rewarded for their own value creation. Since what they are creating is not what is commodified on the market for scarce goods, these value creators do not receive income. Social media platforms are exposing an important fault line in our economic system.

Gutenberg the Geek, reviewed

February 29th, 2012

Some kind folks have reviewed my Kindle Single Gutenberg the Geek. Snippets:

Craig Newmark: Gutenberg was a geek (I prefer “nerd”, being one) whose work invented our current day, much like our work together on the Internet is defining the future. Jeff does a great job with the story of Gutenberg, correcting misconceptions including my own, and then show how it relates to Silicon Valley entrepreneurship and its context in evolving world history. This is a really big deal, beyond my ability to articulate.

Rex Hammock: (My only disappointment: He should have named the ebook What Would Gutenberg Do? in reference to his previous book, What Would Google Do?)…. In Jarvis’ compact and concise book, he fills it with inside-geek references to today’s era of new technology and new business models built on that technology while revealing that others have gone down this path before — hundreds of years before. I feel certain no one else has written a book of any length that finds parallels in how Gutenberg and the founders of Airbnb.com funded their startups — but it’s that kind of informative, and fun, comparison that enables this to be an informative, but quick, read.

Walter Reade: I listen to Jeff Jarvis every week on the “This Week in Google” podcast. He drives me crazy 80% of the time. But, he’s worth listening to the other 20%. Jeff is not afraid to think. He is not afraid to weave narratives and create hypotheses from observations from the modern world and from the world of history. He has a relentless habit of extracting meaning from events and trends, and expressing it is ways that make me think. Gutenberg the Geek is a wonderful example of Jeff’s style of thinking. The “Kindle Single” is worth reading simply as a summary of the life and accomplishment of Gutenberg. It is an important reminder to us how Gutenberg worked for years to achieve what he did. He didn’t wake up and invent the printing press. He perfected his craft improvement upon improvement, while at the same time wrestling with the challenges of life and business. If you’re so inclined, though, the book will also give you a major serving of food for thought. In short, can we afford to stifle the modern-day equivalent of the printing press (i.e., the internet), because it too, like the printing press, is disruptive to various powers that be? Jeff raises those questions quite eloquently.

Jeremy Aldrich: …This Kindle Single isn’t really about what made Gutenberg a geek; it’s about what made him a great start-up founder. Jarvis gives the facts (as much as we can know them) of Gutenberg’s story and writes that “In all, Gutenberg — just like a modern-day startup — depended on exploiting new efficiencies, achieving scale, reusing assets, dividing specialized labor, and setting standards.” I had always pictured Gutenberg working alone and tinkering with the design of his printing press, but the author describes the business side of the story (which is quite compelling) and makes frequent comparisons to modern-day companies and entrepreneurs. At the very end, he pivots to a frequent (for Jeff Jarvis) theme of advocating for Internet freedom, which felt a little awkwardly tacked on. And speaking of awkwardly tacked on, here are two quotes I highlighted: “This was a time of change and disruption — which is like planting season for entrepreneurs.”
“Don’t today’s entrepreneurs dream for a fraction of Gutenberg’s impact? He was the inventor of history’s greatest platform.” A good quick read, stylistically somewhere between a Wikipedia entry and an article in WIRED.

Rewired youth?

February 29th, 2012

Pew and Elon University surveyed a bunch of blatherers, including me, about the impact of the internet on youth, asking us to respond to a number of contrary scenarios about the year 2020. Lots of interesting responses here. I saved mine. Snippets:

* Survey on rewired youth: In 2020 the brains of multitasking teens and young adults are “wired” differently from those over age 35 and overall it yields helpful results. They do not suffer notable cognitive shortcomings as they multitask and cycle quickly through personal- and work-related tasks. Rather, they are learning more and they are more adept at finding answers to deep questions, in part because they can search effectively and access collective intelligence via the Internet. In sum, the changes in learning behavior and cognition among the young generally produce positive outcomes.

In 2020, the brains of multitasking teens and young adults are “wired” differently from those over age 35 and overall it yields baleful results. They do not retain information; they spend most of their energy sharing short social messages, being entertained, and being distracted away from deep engagement with people and knowledge. They lack deep-thinking capabilities; they lack face-to-face social skills; they depend in unhealthy ways on the Internet and mobile devices to function. In sum, the changes in behavior and cognition among the young are generally negative outcomes.

* Me: I don’t buy the punchline but I do buy the joke. I do not believe technology will change our brains and how we are “wired.” But it can change how we cognate and navigate our world. We will adapt and find the benefits in this change.

Hark back to Gutenberg. Elizabeth Eisenstein, our leading Gutenberg scholar, says that after the press, people no longer needed to use rhyme as a tool to memorize recipes and other such information. Instead, we now relied on text printed on paper. I have no doubt that curmudgeons at the time lamented lost skills. Text became our new collective memory. Sound familiar? Google is simply an even more effective cultural memory machine. I think it has already made us a more fact-based; when in doubt about a fact, we no longer have to trudge to the library but can expect to find the answer in seconds.

Scholars at the University of Southern Denmark have coined the wonderful phrase “the Gutenberg Parenthesis” to examine the shift into and now out of a textually based society. Before the press, information was passed mouth-to-ear, scribe-to-scribe; it was changed in the process; there was little sense of ownership and authorship. In the five-century-long Gutenberg era, text did set how we see our world: serially with a neat beginning and a defined end; permanent; authored. Now, we are passing out of this textual era and that may well affect how we *look* at our world. That may appear to change how we think. But it won’t change our wires.

* Survey on education: In 2020, higher education will not be much different from the way it is today. While people will be accessing more resources in classrooms through the use of large screens, teleconferencing, and personal wireless smart devices, most universities will mostly require in-person, on-campus attendance of students most of the time at courses featuring a lot of traditional lectures. Most universities’ assessment of learning and their requirements for graduation will be about the same as they are now.

By 2020, higher education will be quite different from the way it is today. There will be mass adoption of teleconferencing and distance learning to leverage expert resources. Significant numbers of learning activities will move to individualized, just-in-time learning approaches. There will be a transition to “hybrid” classes that combine online learning components with less-frequent on-campus, in-person class meetings. Most universities’ assessment of learning will take into account more individually-oriented outcomes and capacities that are relevant to subject mastery. Requirements for graduation will be significantly shifted to customized outcomes.

Me: The disruption that has overtaken media will next take on education.

It simply does not make sense for thousands of educators around the world to write and deliver the same lecture on, say, capillary action — most of them bad. The best can be shared and found. Then, I believe, in-person education becomes more a matter of tutoring. Think of the Oxbridge lecturer/tutor structure distributed via the net. This quickly changes the economics of education: The marginal cost of another student learning from the finest lecturers in the world is zero. Teachers will need to see how they are needed and how they add value.

In my book, What Would Google Do?, I looked at separating the functions of a university: teaching, certification, research, socialization. These need not be accomplished all in the same space. Will there still be universities? Likely, but not certain. I also discussed the idea that our current educational system, start to end, is built for an industrial era, churning out students like widgets who are taught to churn our widgets themselves. This is a world where there is one right answer: we spew it from a lecturn; we exepct it to be spewed back in a test. That kind of education does not produce the innovators who would invent Google.

The real need for education in the economy will be re-education. As industries go through disruption and jobs are lost forever, people will need to be retrained for new roles. Our present educational structure is not built for that but in that I see great entrepreneurial opportunity.

* Survey on commerce: By 2020, most people will have embraced and fully adopted the use of smart-device swiping for purchases they make, nearly eliminating the need for cash or credit cards. People will come to trust and rely on personal hardware and software for handling monetary transactions over the Internet and in stores. Cash and credit cards will have mostly disappeared from many of the transactions that occur in advanced countries.

People will not trust the use of near-field communications devices and there will not be major conversion of money to an all-digital-all-the-time format. By 2020, payments through the use of mobile devices will not have gained a lot of traction as a method for transactions. The security implications raise too many concerns among consumers about the safety of their money. And people are resistant to letting technology companies learn even more about their personal purchasing habits. Cash and credit cards will still be the dominant method of carrying out transactions in advanced countries.

Me: Not only will our notion of currency change as it becomes electronic and (even more) virtual, but I see the possibility for new currencies measuring new value. We could, for example, award and trade in points for responsible environmental behavior. I also see the possibility to create new currencies that cut across national borders, independent of governments. We have already seen the first nascent attempts to do this. It won’t be easy but it is theoretically possible.

Survey on apps: In 2020, most people will prefer to use specific applications (apps) accessible by Internet connection to accomplish most online work, play, communication, and content creation. The ease of use and perceived security and quality-assurance characteristics of apps will be seen as superior when compared with the open Web. Most industry innovation and activity will be devoted to apps development and updates, and use of apps will occupy the majority of technology-users’ time. There will be a widespread belief that the World Wide Web is less important and useful than in the past and apps are the dominant factor in people’s lives.

In 2020, the World Wide Web is stronger than ever in users’ lives. The open Web continues to thrive and grow as a vibrant place where most people do most of their work, play, communication, and content creation. Apps accessed through iPads, Kindles, Nooks, smartphones, Droid devices, and their progeny – the online tools GigaOM referred to as “the anti-Internet” –  will be useful as specialized options for a finite number of information and entertainment functions. There will be a widespread belief that, compared to apps, the Web is more important and useful and is the dominant factor in people’s lives.

Me: Oh, I have downloaded lots of apps. But I use only a small number of them and I have seen research showing that this is typical. This survey showed that people use apps for certain obvious activities — such as games — but use their browsers for content, mail, and other functions. Since that data was gathered, Ugly Birds was ported to HTML5 and the browser.

The browser — or its future equivalent — will continue to have key advantages over apps: they are connected to the entire net; they offer full interoperability; they give the user more power than the developer or publisher. Yes, publishers have dreamed that apps would return to them the control of content, experience, business model, and pricing that the net took from them, but they are merely deluding themselves. The value is not in their control of content but in the ability to become platforms for users to do what they want to do.

* Survey on big data: Thanks to many changes, including the building of “the Internet of Things,” human and machine analysis of large data sets will improve social, political, and economic intelligence by 2020. The rise of what is known as “Big Data” will facilitate things like  ”nowcasting” (real-time “forecasting” of events); the development of “inferential software” that assesses data patterns to project outcomes; and the creation of algorithms for advanced correlations that enable new understanding of the world. Overall, the rise of Big Data is a huge positive for society in nearly all respects.

Thanks to many changes, including the building of “the Internet of Things,” human and machine analysis of Big Data will cause more problems than it solves by 2020. The existence of huge data sets for analysis will engender false confidence in our predictive powers and will lead many to make significant and hurtful mistakes. Moreover, analysis of Big Data will be misused by powerful people and institutions with selfish agendas who manipulate findings to make the case for what they want. And the advent of Big Data has a harmful impact because it serves the majority (at times inaccurately) while diminishing the minority and ignoring important outliers. Overall, the rise of Big Data is a big negative for society in nearly all respects.

Me: Media and regulators are demonizing Big Data and its supposed threat to privacy. Such moral panics have occurred often thanks to changes in technology. I examine this in Public Parts. With the advent of the press, authors feared having their ideas attached to their names, stored permanently and distributed widely. The invention of the Kodak portable camera caused the first serious discussion of a legal right to privacy in 1890. Now the internet and its ability to gather, store, spread, and analyze data is causing similar fears — witness the Wall Street Journal’s effort to whip up a moral manic over cookies and “what *they* know.” That’s not to say that we should not guard against untoward outcomes; technology itself is neutral and can be used for good ends and bad. But the wise will look for and exploit the new opportunities technology provides.

Case in point: the researchers who found that by analyzing the mood of twitter — a set of six emotions and their opposites — they could, with stunning reliability, predict daily ups and downs in the Dow index. Not surprisingly, their formulae are now the basis of a hedge fund. Someone found value in the supposedly worthless blathering about our lives. I would not be surprised if others find the same value and neutralize the researchers’ advantage or even if clever spammers find ways to game the mood on Twitter. But the moral of the story remains: there is value to be found in this data, value in our newfound publicness.

Google’s founders have urged government regulators not to require them to quickly delete searches because, in their patterns and anomalies, they have found the ability to track the outbreak of the flu before health officials could and they believe that by similarly tracking a pandemic, millions of lives could be saved.

Demonizing data, big or small, is demonizing knowledge and that is never wise.

* Survey on games: By 2020, gamification (the use of game mechanics, feedback loops, and rewards to spur interaction and boost engagement, loyalty, fun and/or learning) will not be implemented in most everyday digital activities for most people. While game use and game-like structures will remain an important segment of the communications scene and will have been adopted in new ways, the gamification of other aspects of communications will not really have advanced much beyond being an interesting development implemented occasionally by some segments of the population in some circumstances.

By 2020, there will have been significant advances in the adoption and use of gamification. It will be making waves on the communications scene and will have been implemented in many new ways for education, health, work, and other aspects of human connection and it will play a role in the everyday activities of many of the people who are actively using communications networks in their daily lives.

Me: I think gamification is overblown, but that could simply be because I am not a gamer. Angry Birds was fun while it lasted, but it didn’t change my life.

* Survey on connected homes: By 2020, the connected household has become a model of efficiency, as people are able to manage consumption of resources (electricity, water, food, even bandwidth) in ways that place less of a burden on the environment while saving households money. Thanks to what is known as “Smart Systems,” the “Home of the Future” that has often been foretold is coming closer and closer to becoming a reality.

By 2020, most initiatives to embed IP-enabled devices in the home have failed due to difficulties in gaining consumer trust and because of the complexities in using new services. As a result, the home of 2020 looks about the same as the home of 2011 in terms of resource consumption and management.Once again, the “Home of the Future” does not come to resemble the future projected in the recent past.

Me: Complexity is a solvable problem in the right hands. We should wish for the iHome from Apple. Connectivity will lead to efficiency when economics dictate: when we save a lot of money with our air-conditioning or when we are penalized for not doing so or when we penalize cable companies for the power-hogging boxes.

Survey on freedom: In 2020, technology firms with their headquarters in democratic countries will be expected to abide by a set of norms – for instance, the “Responsibility to Protect” (R2P) citizens being attacked or challenged by their governments. In this world, for instance, a Western telecommunications firm would not be able to selectively monitor or block the Internet activity of protestors at the behest of an authoritarian government without significant penalties in other markets.

In 2020, technology firms headquartered in democratic countries will have taken steps to minimize their usefulness as tools for political organizing by dissidents. They will reason that too much association with sensitive activities will put them in disfavor with autocratic governments. Indeed, in this world, commercial firms derive significant income from filtering and editing their services on behalf of the world’s authoritarian regimes.

Me: Pardon me for the plug, but this is in the end the point of my next book, Public Parts: It is a call for us to protect our tools of publicness. At the e-G8, I urged President Sarkozy to join with the national leaders he was about to meet and take a Hippocratic oath for the internet: first do no harm. His reflex and that of governments is to control and regulate. We, the citizens of the net, must resist and I believe the way to do that is to discuss the principles of the network. In the book, I propose a set of principles. They are wrong. Indeed, in our distributed internet, we will never — we should never — end up with one set of principles from one governance. The fact that no one can control the net is what makes the net free. But we do need to discuss the principles that underly our net so we can point to them when governments and companies violate them and so we can give cover to good actors who try to resist control from bad governments.

Gutenberg the Geek: A Kindle Single

February 28th, 2012

I’ve just published Gutenberg the Geek, arguing that the inventor of printing was our first geek, the original technology entrepreneur. I find wonderful parallels in the challenges and opportunities he faced and those that face Silicon Valley (or entrepreneurial journalism) startups today. So I retell his story from an entrepreneurial perspective, examining how he overcame technology hurdles, how he operated with the secrecy of a Steve Jobs but then shifted to openness, how he raised capital and mitigated risk, and how, in the end, his cash flow and equity structure did him in. This is also the inspiring story of a great disruptor. That is why I say Gutenberg is the patron saint of entrepreneurs.

The Kindle Single came out of my obsession with Gutenberg that developed while I researched Public Parts. I also wanted to learn how Kindle Singles work (more on that later) -… and prove that I have nothing against charging for content! But I’m not charging much, only 99 cents (free in the Amazon lending library).

Tomorrow, I’ll link to an excerpt from the piece. I’d be honored if you bought the piece and said what you think here or at the Amazon page.

Leave our net alone*

February 27th, 2012

The internet’s not broken.

So then why are there so many attempts to regulate it? Under the guises of piracy, privacy, pornography, predators, indecency, and security, not to mention censorship, tyranny, and civilization, governments from the U.S. to France to Germany to China to Iran to Canada — as well as the European Union and the United Nations — are trying to exert control over the internet.

Why? Is it not working? Is it presenting some new danger to society? Is it fundamentally operating any differently today than it was five or ten years ago? No, no, and no.

So why are governments so eager to claim authority over it? Why would legacy corporations, industries, and institutions egg them on? Because the net is working better than ever. Because they finally recognize how powerful it is and how disruptive it is to their power.

And that is precisely why we must fight against their attempts to regulate it, to change it, to throttle it, to oversee it, to insert controls into it, to grant them sovereignty over it. We also must resist the temptation to compromise, to accept the lesser of evils. Last week, Federal Communications Commissioner Robert McDowell warned of the danger of the U.N. asserting governance over the net, but then he turned around and argued that “merely saying ‘no’ to any changes to the current structure of Internet governance is likely to be a losing proposition.”

Why? I repeat: It’s not broken. This is why I urged French President Nicolas Sarkozy to take a Hippocratic oath for the net. This is why I have come to side with Sen. Al Franken on at least this: Net neutrality is not regulation; it is protecting the net from companies trying to change it. This is why the Reddit community is writing the Free Internet Act.

This is why I argued in Public Parts that we must have a discussion of the principles of an open society and the tools of publicness that enable it. This is why I wrote Public Parts. And that is why I’m posting the last chapter of the book, which argues that governments and companies are not protectors of the net and that we must be.

It’s not broken. Don’t fix it. Leave our net alone.

*Sung to the tune of….

We don’t need no regulation.
We dont need no thought control
No dark sarcasm in the network
Government: Leave our net alone
Hey! Government! Leave our net alone!
All in all it’s just another brick in the wall.
All in all you’re just another brick in the wall.

Piracy v. do not track

February 23rd, 2012

Consider the similarities between piracy and do not track. They’re greater than you think, for both reduce value for content creators. And both are excuses for internet regulation.

In piracy, a content company sets business rules: You must pay for my product; if you take it without paying for it, you are robbing me of value.

With do not track, an advertising-supported content company sets business rules: You will get my content for free because I will serve you ads and I will increase their efficiency, performance, and value by targeting them to your interests and behavior; if you block the cookies that make that possible, you are robbing me of value.

The difference between the two is that there is a furor over piracy as theft but, quite to the contrary, there is a rush to enable the blocking of ad tracking as a virtue.

If you listen to The Wall Street Journal, Apple was a good guy for blocking by default third-party cookies (ask what Apple gets out of that). And it’s good news that technology companies just agreed to implement a do-not-track button on browsers.

There is nothing sinister about third-party ad tracking cookies. They’ve been used since very early in the history of the web when General Motors, for example, insisted in serving its own ads on content sites so it could verify what was bought and optimize its targeting. Without that ability, many large advertisers will refuse to buy ads and the value of ad-supported media could plummet — just at a time when we are concerned about how we will support news media.

Odd that a media company wouldn’t be crying foul. The Journal’s owner, Rupert Murdoch, cries bloody murder over piracy — going so far as to accuse Google of theft — but his paper crusades for blocking tracking, claiming it is a violation of privacy (though in most cases, the cookies have no personally identifiable information and so it’s hard to justify a moral panic based on their use).

Murdoch’s News Corp is, at its core, an entertainment company, thus a paid-content company. The ad-supported portion of his P&L is not only small but is causing him much agita as his journalists in the U.K. are accused of violating laws of the nation and the profession.

I’m not building a conspiracy theory. I’m just pointing to the priorities that emerge when one follows the money.

So what about the rest of the industry — the media, advertising, and technology industries, that is? Oh, they blew it. They were never transparent enough about what technology they were using, what data they were gathering, and why — not to mention the benefits that accrued to their users (i.e., free content). That opened the door for other parties — privacy scare-mongers, competitors for our media attention, and government regulators — to demonize the mysterious cookie and stir up this moral panic and paranoia. The M.A.T. industries have only themselves to blame.

In the EU, government regulators have decreed that sites must obtain opt-in permission to set cookies. In the US, the industry agreement today announced is an attempt to forestall government regulation with self-regulation.

But don’t be too quick to celebrate as if these are consumer victories. I believe the EU dictum could lead to (a) a much poorer web experience as we are bombarded with boxes to tick and (b) poorer media companies and thus (c) the possibility of less free media and more pay walls. And in the U.S., it has been shown that one can whip up an anti-net hysteria and bring even giant technology companies to expose their soft underbellies. Each leads to more threats of regulation of the net. That’s what I fear.

It is time for technology companies especially to adopt radical transparency of how they operate so they can’t find themselves in gotcha moments when the hysterical “discover” something they’ve been doing all along. Under such openness, it is also time for them to learn that doing sneaky things will not benefit them. And it is also time for the media, advertising, and technology companies to start fighting back against accusers’ misinformation and explain the truth of what they are doing and how we benefit. That is transparency’s dividend.

LATER: By the way, this post was inspired and informed by a discussion last night on This Week in Google, in which Leo Laporte said he was grateful that I was going so far that I was making him look moderate.

One more point from that discussion: We all practice blocking ads when we fast-forward through commercials on our DVRs. And the industry adapted and still prospers (for now). That’s what may happen here. But one should still recognize the impact of one’s actions — whether skipping or blocking — on the economics of what is provided. And one difference is that we have to skip each commercial manually (especially since, as Leo pointed out, a company that provided easy 30-second skipping was hounded out of business as a result). In the case of do not track, especially government-mandated opt-in — that is wholesale devaluing of advertising in a medium.

A letter to 2040

February 22nd, 2012

Zeit Online is having some of us write letters to a child just born, to be read in the year 2040. After reviewing David Weinberger’s Too Big to Know, they asked me to write about wisdom. I wrote about media. It being a letter to a German child, I of course wrote about Gutenberg, too. Here’s the German translation. Here’s the English text:

I’ll bet that 2040 will prove to be a pivotal year in the future of knowledge. But you’ll have to collect on that bet for me.

It so happens that 2040 is the year when—according to projections of the downward trajectory of the American news industry—it is believed that the last newspaper could come off the last press.

Yes, the last press. Already, what we call printers do more than press ink on paper. They use jets to precisely place matter on matter, producing not just text but also manufactured parts, chocolate, even concrete buildings and perhaps soon human organs.

2040 also comes about 50 years after Sir Tim Berners-Lee’s invention of the World Wide Web. That is an important milestone. Elizabeth Eisenstein, the leading scholar on Gutenberg, said it took 50 years for the book to leave behind its scribal roots–it was first considered just “automated writing”–and take on its form. As I write this, the products of the press—books, magazines, newspapers—have not broken out of their past to take full advantage of their digital fate. I hope they soon will. Could you be wondering now, “What’s a book?”

By the time you read this, I hope that knowledge will have broken free of its imprisonment in media to explode in new forms. An author and friend of mine named David Weinberger wrote a book called Too Big to Know in 2012 in which he argued that our very understanding of wisdom will transform.

Before Gutenberg, people revered and sought to preserve the knowledge of the ancients of Greece and Rome. After the invention of the press—during what a group of Danish academics call the Gutenberg Parenthesis—we came to honor the work of authors and experts, the people who had access to the press and the authority in conferred. Then, after the passing of the age of the press and the advent of the internet we began to value the knowledge of the network.

“The smartest person in the room isn’t the person standing at the front lecturing us, and isn’t the collective wisdom of those in the room,” Weinberger wrote. “The smartest person in the room is the room itself: the network that joins the people and ideas in the room, and connects to those outside of it.”

So I hope you live in the age of networked knowledge, when information and the analysis and understanding of it can flow freely among many people and their machines, building worth as it spreads and gains speed. I hope you live in an age that values these new connections over the old notion of nations and institutions and their artificial boundaries. I hope you will define wisdom as the fruit of connections.

2040 is roughly the 600th anniversary of Gutenberg’s invention. By then his magnificent technological disruption may live on mostly as a memory and an exhibit in the Gutenberg Museum in Mainz. I hope you will visit it there to see where the idea of manufacturing knowledge began and how far it has come.

Profitable news

February 19th, 2012

One of the most controversial things I have said (you’re welcome for that straight line) is that I insist my entrepreneurial journalism students at CUNY build only for-profit businesses. When I said that at a recent symposium for teachers of entrepreneurial journalism, I thought some of the gasping participants would tar-and-feather me.

I’m not against not-for-profit, charitably supported journalism any more than I’m against pay walls. I, too, crunch granola (and sell books). But I do not believe that begging for money from foundations, the public, or especially government is the solution to journalism’s problems. And I am certain that there is not enough charity in the nation to support the journalism it needs. Lately we are seeing too much evidence that the siren call of not-for-profit journalism seduces news organizations away from sustainability, survival, and success (more on the Chicago News Cooperative and Bay Citizen in a moment).

I insist on teaching our students the higher discipline and the greater rigor of seeking to create profitable enterprises. I also believe they are more likely to build better journalistic products, services, and platforms if they are accountable to the marketplace. When class starts, many students invariably talk about what they want to do. In my best imitation of a gruff old-timer, I tell them nobody gives a shit what they want to do, save perhaps their mothers. They should care about what the public — their customers — want and need them to do. They need to care about the market if they have any hope of the market sustaining them. That is why they start every term talking with the public they hope to serve. They always come back with surprises.

Of course, the market, too, can be corrupting. I’m tempted to use Rupert Murdoch as the best exhibit of the argument, though in that case, it’s hard to tell which came first, the rabid chicken or the rotten egg. In the long run, cynically giving the public only what it thinks it wants will not deliver value and will fade like the fad it must be. I have that much faith in the market.

And, of course, we can point to many valuable and well-sustained not-for-profit news enterprises: NPR is the best we have, but as its former CEO Vivian Schiller has said, it is very much run like a business, complete with advertisers (pardon me, [cough] underwriters). Texas Tribune is doing a brilliant job of bringing in the support needed to continue its brilliant work (though I argued with its founder and funder, John Thornton, a venture capitalist, that he’d serve the news industry better by demonstrating profitable models). Pro Publica is already a national treasure (though let’s note that it had to get a grant from the Knight Foundation just to figure out how to diversify its funding beyond its original patron, mortgage man Herb Sandler).

But there are other less shining examples. Now we turn to the Chicago News Cooperative, which just announced its closing. It found itself too dependent on a foundation (MacArthur), a customer/benefactor (The New York Times), not to mention the IRS (which needs to clarify the rules for not-for-profit news). Dan Sinker argues that it never met is promise of building news with the community.

Then there’s the Bay Citizen, which ran through $11.4 million in 2010 [see this comment for a correction] before collapsing last year; it will merge in still-uncertain terms with the better-run, more penurious Center for Investigative Reporting. When the Bay Citizen started with a pot of cash from investor Warren Hellman, I remember the San Francisco Chronicle complaining that this non-market player could unfairly compete with the paper and hasten its demise, an unintended consequence that didn’t come to pass mainly because the Bay Citizen was to terribly run. Non-market entities often are.

I recently judged a contest for an international journalism organization that received a large grant from a very large corporation to fund journalism startups and — here’s why I’m naming neither — I was appalled at the complete lack of thought that went into sustainability and responsible fiscal management in every one of the proposals. I urged the organization to not give away one penny and to start over. It didn’t quite do that.

The problem is that journalists don’t know shit about business. Culturally, they don’t want to. I often hear from journalists who are downright hostile to corporations and even capitalism not because they’re commies but because they believe they’re above it all (there is the root, I believe, of much of their cynicism about Google and other large technology companies). As I’ve said here before, when I came up through journalism’s academy, I was taught that mere contact with business was corrupting. I’ve had bosses scold me for considering the business of journalism. When I started Entertainment Weekly, I could not protect my baby from the expensive idiocy of my business-side colleagues because I didn’t have the biz cred. I vowed that would not happen again. That’s why I insisted on learning the business of journalism.

That is why I insisted on teaching the business of journalism. For we journalists have proven to be terrible, irresponsible stewards of the craft and its value to the nation. Feeding at the teat of monopolies, we grew fat and complacent and snotty about the markets we were to serve. We wasted so much money on duplicative, commodity coverage for the sake of our egos. We were willfully ignorant of how our industry operated and thus how it is dying, making us complicit in its death. We have only ourselves to hold responsible.

And that is why I so respect my friend John Paton, a newsman’s newsman who learned the business of journalism and is taking responsibility for its fate, as head of Digital First Media (where I am an advisor), which now runs the second-largest newspaper group in the U.S. John does not have the answers but he does have the questions and he’s not afraid to challenge executives in our industry with them. He’s willing to disrupt and experiment and learn. And he’s willing to teach what he learns. “Crappy newspaper executives,” he just said, “are a bigger threat to journalism’s future than any changes wrought by the Internet.”

Yes, it’s not just not-for-profit thinking that’s dangerous to journalism. It’s the unprofitable thinking of for-profit news companies. That is why, again, I insist on holding students and the industry they’ll lead to the more diligent standard of true sustainability. That means profitability. There’s nothing wrong with that.