I’ve just released a new PFF white paper looking at the hysteria that has often accompanied major media mergers and then taking a look at the marketplace reality years after the fact. Here’s the PDF, but I have also pasted the entire thing down below.
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A Brief History of Media Merger Hysteria:
From AOL-Time Warner to Comcast-NBC
by Adam Thierer
Although the pending union of Comcast and NBC Universal has not yet made it to the altar, Chicken Little-esque wails about the marriage have already begun in earnest. For example, the pro-regulatory media organization Free Press has already set up a website to complain about the deal.[1] And Jeff Chester, executive director of the Center for Digital Democracy, has called it “an unholy marriage.”[2] The fever only promises to spread once the deal is formally announced, and a lengthy fight over the deal is expected at the Federal Communications Commission (FCC) and whichever antitrust agency reviews the deal.[3]
But reality tends to play out somewhat less dramatically than the script penned by the media worrywarts. It’s worth looking back at some of the more prominent examples of media merger hysteria in recent years to understand why such panic is unwarranted, and why a deal between Comcast and NBC Universal is unlikely to lead to the sort of problems that the pessimists suggest.[4] Continue reading →
A few months ago, I penned a mega book review about the growing divide between “Internet optimists and pessimists.” I noted that the Internet optimists — people like Chris Anderson, Clay Shirky, Yochai Benkler, Kevin Kelly, and others — believe that the Internet is generally improving our culture, economy, and society for the better. They believe the Net has empowered and liberated the masses, sparked unparalleled human creativity and communication, provided greater personalization and customization of media content, and created greater diversity of thought and a more deliberative democracy. By contrast, the Internet pessimists — including Nick Carr, Andrew Keen, Lee Siegel, and others — argue that the Internet is destroying popular culture and professional media, calling “truth” and “authority” into question by over-glamorizing amateurism and user-generated content, and that increased personalization is damaging deliberative democracy by leading to homogenization, close-mindedness, and an online echo-chamber. Needless to say, it’s a very heated debate!
I am currently working on a greatly expanded version of my “Net optimists vs. pessimists” essay for a magazine in which I will draw out more of these distinctions and weigh the arguments made by those in both camps. I plan on concluding that article by arguing that the optimists generally have the better of the argument, but that the pessimists make some fair points about the downsides of the Net’s radically disintermediating role on culture and economy.
So, this got me thinking that I needed to come up with some sort of a label for my middle-of-the-road position as well as a statement of my personal beliefs. As far as labels go, I guess I would call myself a “pragmatic optimist” since I generally side with the optimists in most of these debates, but not without some occasional reservations. Specifically, I don’t always subscribe to the Pollyanna-ish, rose-colored view of the world that some optimists seem to adopt. But the outright Chicken Little-like Ludditism of some Internet pessimists is even more over-the-top at times. Anyway, what follows is my “Pragmatic (Internet) Optimist’s Creed” which better explains my views. (Again, read my old essay first for some context about the relevant battle lines in this intellectual war).
Continue reading →
I just finished reading through The Economist’s new 14-page special report on cloud computing, “Let It Rise” in which Ludwig Siegele provides an outstanding overview of cloud computing and why it is so important:
The rise of the cloud is more than just another platform shift that gets geeks excited. It will undoubtedly transform the information technology (IT) industry, but it will also profoundly change the way people work and companies operate. It will allow digital technology to penetrate every nook and cranny of the economy and of society, creating some tricky political problems along the way.
Even if you are very familiar with cloud computing, I recommend you take a look at the article. Anyway, while I was reading it, I was unsurprised to come across some comments from Nicholas Carr, whose new book The Big Switch: Rewiring the World, from Edison to Google, is essentially an early history of cloud computing and an investigation into its effects on our economy, culture, and society. And that also reminded me that, even though I have mentioned Carr’s book here several times since it was released earlier this year, I have failed to give it a dedicated review. And it certain deserves one because “The Big Switch” is easily one of the most important technology policy books of 2008.
Continue reading →
By Berin Szoka & Adam Thierer as part of an ongoing series
With Google celebrating its 10th anniversary this week, many panicky pundits are using the occasion to claim that Google has become the Great “Satan” of the Internet. Nick Carr wonders what the future holds for “The OmniGoogle.” The normally level-headed Mike Malone worries that Google is “turning into Big Brother.” And Washington Post’s Rob Dubbin says that he can’t escape Google’s “tentacles,” even for just 24 hours. Meanwhile, speculation abounds that the Justice Department is preparing a major antitrust lawsuit against Google concerning its advertising partnership with Yahoo! or perhaps even a broader suit concerning Google’s “dominance” of online advertising generally.
Carr quotes Google co-founder Sergey Brin’s now-famous 2003 interview:
I think people tend to exaggerate Google’s significance in both directions. Some say Google is God. Others say Google is Satan. But if they think Google is too powerful, remember that with search engines, unlike other companies, all it takes is a single click to go to another search engine. People come to Google because they choose to. We don’t trick them.
In the last five years, Google has become far more than just a search engine. As Google’s suite of suite of complementary products continues to grow, so too does the specter of Google as an all-knowing and therefore all-powerful economic colossus. Yet Google isn’t even close to being the sort of nefarious monopolist out to destroy user privacy at every turn, as some seem to imply—if not exclaim. Indeed, in our view, the Net is overall a far better place because of the existence of Google and the many free services it provides consumers.
Our point is not that Google should be immune from criticism. Indeed, healthy criticism of corporate actions plays a vital role in the free market by disciplining corporate policies and behavior—often thus providing an effective alternative to government regulation. This is particularly important in the area of consumer privacy protection, as demonstrated by Google’s quick response to public concern about its Chrome EULA. Continue reading →
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The Technology Liberation Front is the tech policy blog dedicated to keeping politicians' hands off the 'net and everything else related to technology.
