Joshua Gans, professor of Strategic Management at the University of Toronto’s Rotman School of Management and author of the new book Information Wants to be Shared, discusses modern media economics, including how books, movies, music, and news will be supported in the future.
Gans argues that sharing enhances most information’s value. He also explains that the business models of traditional media companies, gatekeepers who have relied on scarcity and control, have collapsed in the face of new technologies. Equally important, he argues that sharing can revive moribund, threatened industries even as he examines platforms that have, almost accidentally, thrived in this new environment.
Download
Related Links
This morning, the Federal Communications Commission (FCC) released its eagerly-awaited “Future of Media” report. The 475-page final report is entitled, “The Information Needs of Communities: The Changing Media Landscape in a Broadband Age.” [Here’s a 2-page summary and the official press release.] The report is a bit overdue; the effort was supposed to be wrapped up late last year. Comments in the proceeding were filed over a year ago. Here are some of the major ones. Also, here is the 80-page monster filing that I submitted with my former PFF colleagues Berin Szoka and Ken Ferree.
Quick refresher… Federal policymakers have been taking a greater interest in the health of media and journalism in recent years. In 2009, the Senate held hearings about “the future of journalism,” and Senator Benjamin L. Cardin (D-MD) introduced the “Newspaper Revitalization Act,” which would allow newspapers to become tax-exempt non-profits in an effort to help them stay afloat. In 2010, the Federal Trade Commission hosted two workshops asking “How Will Journalism Survive the Internet Age?” and also released a staff report on “Potential Policy Recommendations to Support the Reinvention of Journalism.” (As I noted here and here, the FTC was blasted for that report and quickly backed off the issue. The agency has since gone radio silent on the issue.) The FCC also launched its “Examination of the Future of Media and Information in a Digital Age” in 2010, and today’s report wraps up their work on this front.
My first reaction after scanning the FCC’s final report is one of relief. For those of us who care about the First Amendment, media freedom, and free-market experimentation with new media business models, it feels like we’ve dodged a major bullet. The report does not recommend sweeping regulatory actions that might have seen Washington inserting itself into the affairs of the press or bailing out dying business models.
Continue reading →
I sincerely hope it was a Washington Post editor, and not New America Foundation president Steve Coll, who picked the title for his editorial today, “Why Fox News Should Help Fund NPR.” After all, Coll certainly must be smart enough to know that there is no law or regulation on the books today that gives the Federal Communications Commission (FCC) or any other agency the ability to force private media providers to fund their public media competitors. Moreover, it takes a lot of chutzpah to try to spin NPR’s recent Juan Williams fiasco into an excuse for private media providers like Fox News to fund NPR, but, shockingly, that’s exactly what Coll does. “The Williams imbroglio is teachable, but its lessons actually point in the opposite direction: America’s public media system, including NPR, requires more funding, not less.” Hmm… that’s not exactly the lesson most of the rest of the world took away from this episode!
Coll first argues it makes sense for private media funds to be transferred to NPR becuase “In this time of niche publications and cable networks that thrive on ideological anger, we should be seeking to strengthen NPR’s role as a convener of the public square, a demagogue-free zone where all political and social groups — including conservatives and others opposed to federal funding of public media — should be welcome on equal terms.” This is indicative of the all-too-common “progressive” impulse to force media upon us that we don’t want or even find offensive. To be clear, I am
not one of those people who finds NPR to be a hopelessly biased bastion of Leftist thinking. While I think it’s clear to everyone that many of NPR’s stories and reporters do lean that direction, I also think there’s some outstanding reporting to be found there. But if Steve Coll and his colleagues at the New America Foundation want to see NPR get more funding, they should do the same thing I do: Open up their wallets and make the voluntary choice to fund it. To force everyone else to do so is despicable.
Continue reading →
There’s an inherent paradox in the Federal Communications Commission’s (FCC) media ownership regulations and the new Notice of Inquiry that the agency has just launched looking into those rules. Like everything else the FCC has been doing lately, this NOI poses hundreds of questions about the topic at hand. In this case, the agency is interested in knowing what the impact of its byzantine regulatory regime for media ownership has been. Complicating matters even more is that fact that the FCC wants people to provide detailed answers about the impact of these rules on amorphous values like “diversity” and “localism.” So, the agency asks, what has been the impact of the local TV ownership rule, the local radio ownership rule, the newspaper/broadcast cross-ownership rule, the radio/TV cross-ownership rule, the dual network rule, and so on, on the marketplace, competition, diversity, localism, etc.
But therein lies the fundamental paradox of the FCC’s inquiry and the media ownership regulations in general:
So long as the rules are preemptive and prophylactic in character, we will never get clear answers to the questions the agency poses. By definition, the agency’s media ownership rules make experimentation with new business models illegal. It is per se criminal to enter into combinations that the agency has presumptively divined to be counter to “the public interest,” whatever that means. Thus, we can never get definitive answers to the questions the agency poses when “the marketplace” isn’t a truly free marketplace at all. It is a regulatory construct artificially constrained in countless ways.
So, what’s the answer here? In a word: Antitrust. While I’m no fan of over-zealous antitrust regulation, it has one huge advantage over the media ownership regime that the FCC enforces: It doesn’t preemptively seek to determine supposedly sensible market structures or ownership patterns. The threat of antitrust intervention can be a very dangerous thing, and wrecking-ball style antitrust interventions are rarely sensible, but at least the DOJ and FTC aren’t turning the regulatory dials on a massive media marketplace industrial policy the way the Federal Communications Commission does with its media ownership regulations. Continue reading →
I’m keeping tabs on who filed “major” comments (more than a 10-15 pages) in the Federal Communications Commission’s “Future of Media” proceeding (GN Docket No. 10-25). As I noted last week, The Progress & Freedom Foundation submitted almost 80 pages of comments (single-spaced!) in the matter, so it’s something I care deeply about and will be tracking closely going forward.
Incidentally, the general consensus of those who filed (especially if you count “minor” comments) is fairly overwhelming:
Bring on Big Government! Seriously, I only found a handful of comments that object strenuously to government meddling in media markets or that raised concerns about the potential for the State’s increasing involvement in the journalism profession. Even many of the affected industries appear to be suffering from a bit of Stockholm syndrome here. Most of them just play up the good things they are doing but barely utter a peep about the dangers of federal encroachment into the affairs of the Press.
Anyway, for those of you who care to track the gradual federalization of media and journalism, I think what you see below is a fairly comprehensive listing of the major filings submitted thus far in the FCC’s “Future of Media” proceeding. I’ll try to add more as I find them. You might also want to track what was filed in the Federal Trade Commission’s workshops on “How Will Journalism Survive the Internet Age.” Finally, if you care to learn more of this issue, I’m hosting an event on the morning of May 20th to discuss these issues in more detail.
Continue reading →
Thought you all might be interested in this upcoming PFF event on “Can Government Help Save the Press?” It will take place on Thursday, May 20, 2010 from 8:30 a.m. – 12:00 p.m. in the International Gateway Room, Mezzanine Level of the Ronald Reagan Building on 1300 Pennsylvania Ave, N.W. here in DC. This event will consider the FCC’s “Future of Media” proceeding (comments are due this Friday) and debate what role the government should play (if any) in sustaining struggling media enterprises, “saving journalism,” or promoting more “public media” or “public interest” content. [You can find all our essays about this here.]
The event will feature a keynote address by
Ellen P. Goodman of the FCC’s Future of Media team. Ellen is one of the sharpest minds in the media policy universe today, and a real asset to the FCC team. She is a Distinguished Visiting Scholar at the FCC, a Research Fellow at American University’s Center for Social Media, and a Visiting Scholar at the University of Pennsylvania’s Annenberg School of Communications. She is also a Professor at Rutgers University School of Law at Camden, specializing in information law and policy. She has spoken before a wide range of audiences around the world on media policy issues, has consulted with the U.S. government on communications policy, and served as an advisor to President Obama’s presidential campaign and transition team.
After Ellen Goodman brings us up to speed with where the FCC’s Future of Media process stands, we’ll hear from a diverse panel of experts that I am still busy assembling. But so far it includes
Charlie Firestone of the Aspen Institute, who will be on hand to discuss the work he’s been doing with the Knight Commission on this front. I’ve also invited a rep from the Newspaper Association of America to come and talk about the diversity of new media monetization models that they have been aggregating. (Check out the appendix of their outstanding FTC filing last Nov.) And Kurt Wimmer of Covington & Burling, who represents broadcasters among others, will talk about the need for regulatory flexibility / forbearance, especially on ownership issues. Again, more panelists to come. But please sign up now!
In the latest PFF TechCast, I discuss the issues considered in the second essay in our ongoing series, “The Wrong Way to Reinvent Media.” In this 6-minute podcast, PFF’s press director Mike Wendy chats with me about proposals to impose taxes on broadcast spectrum licenses to funnel money to public media or “public interest” content. In my paper and this podcast, I make the case again socially engineering media choices and outcomes through the tax code.
MP3 file: PFF TechCast #2 – Saving the Media Through Broadcast Spectrum Taxes (4/5/2010)
My central lament in everything I have said so far about the Federal Communications Commission’s ambitious new National Broadband Plan is that, well, it’s just too ambitious! The agency has taken an everything-plus-the-kitchen-sink approach to the issue and the sheer scope of their imperial ambitions is breathtaking. I’ve likened it to an industrial policy for the Internet because the agency is essentially trying to centrally plan and engineer from above virtually every aspect of America’s broadband future despite its proclamation that, “Technologies, costs and consumer preferences are changing too quickly in this dynamic part of the economy to make accurate predictions.” But very little humility seems to be on display throughout the 376-page blueprint, which includes dissertations on everything from privacy to child safety issues to set-top box regulation.
And then there’s Chapter 15 on “civic engagement,” which calls for a wide variety of things to “strengthen the citizenry and its government,” and to “build a robust digital media ecosystem.” Although some of the ideas floated in the chapter are harmless enough–and some, like the call for more open and transparent government, would actually be beneficial–for the life of me I don’t understand why any of this needs to be in a plan about broadband deployment and diffusion. Particularly bizarre is the call here for Congress to create “a trust fund for digital public media,” which would fund the “production, distribution, and archiving of digital public media.” It would apparently be funded by “the revenues from a voluntary auction of spectrum licensed to public television.” (see pgs. 303-4)
Look, if the FCC wants Congress to create the equivalent of the PBS on Steroids, fine. Let’s have that debate. (In fact, I thought it was a debate that the FCC was already considering as part of its “Future of Media” effort). But why, again, is this in broadband plan? It’s a serious stretch to claim that this is somehow crucial to the task of getting more broadband out to the masses. Moreover, should our government really be in charge of “building a robust digital media ecosystem”? Here are a few reasons we might want to avoid having the government in the driver’s seat when it comes to charting the future course of America’s media sector.
Can we steer people toward hard news — and get them to financially support it — through the use of “news vouchers” or “public interest vouchers”? That’s the subject of this latest installment in my ongoing series on proposals to have the government play a greater role in the media sector in the name of sustaining struggling enterprises or “saving journalism.”
As I mentioned here previously, last week I testified at the FCC’s first “Future of Media” workshop on “Serving the Public Interest in the Digital Era.” (@3:29 mark of video). It was a great pleasure to testify alongside the all-star cast there that day, which included the always-provocative Jeff Jarvis of the CUNY Graduate School of Journalism. He delivered some very entertaining remarks and vociferously pushed back against many of the ideas that others were suggesting about “saving journalism.” Jeff is a very optimistic guy–far more optimistic than me, in fact–about the prospect that new media and citizen journalism will help fill whatever void is left by the death of many traditional media operators and institutions. He had a lively exchange with Srinandan Kasi, Vice President, General Counsel and Secretary of the Associated Press, that is worth watching (somewhere after the 5-hour mark on the video).
Nonetheless, Jarvis is a enough of a realist to know that it has
always been difficult to find resources to fund hard news, which he creatively refers to as “broccoli journalism.” This is what is keeping the FCC, the FTC (workshop today), and many media worrywarts up at night; the fear that as traditional financing mechanisms falter (advertising, classifieds, subscription revenues, etc) many traditional news-gathering efforts and institutions will disappear. Of course, while it is certainly true we are in the midst of a gut-wrenching media revolution with a great deal of creative destruction taking place, it is equally true that exciting new media business models and opportunities are developing. We shouldn’t over look that, as I argued here and here.
Anyway, a lot of different proposals are being put forth by scholars and policymakers to find new ways to finance news-gathering or “save journalism.” One of the ideas that has been gaining some steam as of late is the idea of crafting a “public interest voucher” or what Robert W. McChesney & John Nichols, authors of the new book The Death and Life of American Journalism, call a “Citizenship News Voucher.” And McChesney discussed this idea in more detail when he spoke at today’s FTC event on saving journalism. Continue reading →
“We’re from government and we’re here to help save journalism.”
That seems to be the hot new meme in media policy circles these days. Last week, it was the Federal Communications Commission (FCC) kicking off their “Future of Media” effort with a workshop on “Serving the Public Interest in the Digital Era.” This week, it’s the Federal Trade Commission’s (FTC) turn as they host the second in their series of workshops on How Will Journalism Survive the Internet Age? Meanwhile, the Senate has already held hearings about “the future of journalism,” and Senator Benjamin L. Cardin (D-MD) recently introduced the “Newspaper Revitalization Act,” which would allow newspapers to become nonprofit organizations in an effort to help them stay afloat.
I have no doubt that many of the public policymakers behind these efforts have the best of intentions and really are concerned about what many believe to be a crisis in the field of journalism. But here are my three primary concerns with Washington’s sudden interest in “saving journalism”: Continue reading →
The Technology Liberation Front is the tech policy blog dedicated to keeping politicians' hands off the 'net and everything else related to technology.
List of Major Comments in FCC “Future of Media” Proceeding
by Adam Thierer on May 10, 2010 · 8 comments
I’m keeping tabs on who filed “major” comments (more than a 10-15 pages) in the Federal Communications Commission’s “Future of Media” proceeding (GN Docket No. 10-25). As I noted last week, The Progress & Freedom Foundation submitted almost 80 pages of comments (single-spaced!) in the matter, so it’s something I care deeply about and will be tracking closely going forward.
Incidentally, the general consensus of those who filed (especially if you count “minor” comments) is fairly overwhelming: Bring on Big Government! Seriously, I only found a handful of comments that object strenuously to government meddling in media markets or that raised concerns about the potential for the State’s increasing involvement in the journalism profession. Even many of the affected industries appear to be suffering from a bit of Stockholm syndrome here. Most of them just play up the good things they are doing but barely utter a peep about the dangers of federal encroachment into the affairs of the Press.
Anyway, for those of you who care to track the gradual federalization of media and journalism, I think what you see below is a fairly comprehensive listing of the major filings submitted thus far in the FCC’s “Future of Media” proceeding. I’ll try to add more as I find them. You might also want to track what was filed in the Federal Trade Commission’s workshops on “How Will Journalism Survive the Internet Age.” Finally, if you care to learn more of this issue, I’m hosting an event on the morning of May 20th to discuss these issues in more detail.
Continue reading →