media policy – Technology Liberation Front https://techliberation.com Keeping politicians' hands off the Net & everything else related to technology Mon, 17 Aug 2009 14:04:40 +0000 en-US hourly 1 6772528 YouTube, Power Laws & the Persistence of Media Inequality https://techliberation.com/2009/07/09/youtube-power-laws-the-persistence-of-media-inequality/ https://techliberation.com/2009/07/09/youtube-power-laws-the-persistence-of-media-inequality/#comments Fri, 10 Jul 2009 01:43:29 +0000 http://techliberation.com/?p=19351

“Liberty upsets patterns.” That was one of the many lessons that the late Harvard philosopher Robert Nozick taught us in his 1974 masterpiece “Anarchy, State, and Utopia.” What Nozick meant was that there is a fundamental tension between liberty and egalitarianism such that when people are left to their own devices, some forms of inequality would be inevitable and persistent throughout society. (Correspondingly, any attempt to force patterns, or outcomes, upon society requires a surrender of liberty.)

No duh, right? Most people understand this today–even if some of them are all too happy to hand their rights over to the government in exchange for momentary security or some other promise.  In the world of media policy, however, many people still labor under the illusion that liberty and patterned equality are somehow reconcilable. That is, some media policy utopians and Internet pollyannas would like us to believe that if you give every man, woman, and child a platform on which to speak, everyone will be equally heard.  Moreover, in pursuit of that goal, some of them argue government should act to “upset patterns” and push to achieve more “balanced” media outcomes. That is the philosophy that has guided the “media access” movement for decades and it what fuels the “media reformista” movement that is led by groups like the (inappropriately named) Free Press, which was founded by neo-Marxist media theorist Robert McChesney.

Alas, perfect media equality remains an illusive pipe dream. As I have pointed out here before, there has never been anything close to “equal outcomes” when it comes to the distribution or relative success of books, magazines, music, movies, book sales, theater tickets, etc.  A small handful of titles have always dominated, usually according to a classic “power law” or “80-20” distribution, with roughly 20% of the titles getting 80% of the traffic / revenue.  And this trend is increasing, not decreasing, for newer and more “democratic” online media.

For example, recent research has revealed that “the top 10% of prolific Twitter users accounted for over 90% of tweets” and  “the top 15% of the most prolific [Wkipedia] editors account for 90% of Wikipedia’s edits.” As Clay Shirky taught us back in 2003 in this classic essay, the same has long held true for blogging, where outcomes are radically inegalitarian, with a tiny number of blogs getting the overwhelming volume of blogosphere attention.  The reason, Shirky pointed out, is that:

In systems where many people are free to choose between many options, a small subset of the whole will get a disproportionate amount of traffic (or attention, or income), even if no members of the system actively work towards such an outcome. This has nothing to do with moral weakness, selling out, or any other psychological explanation. The very act of choosing, spread widely enough and freely enough, creates a power law distribution.

The latest proof of the persistence of power laws in the media world comes from Slate’s Chris Wilson, who recently analyzed traffic distribution over on YouTube to answer the question: “Will My Video Get 1 Million Views on YouTube?” Alas, YouTube proves every bit as anti-egalitarian as every other media platform throughout history:

This is the great promise of YouTube: Your video can soar in popularity through sheer word-of mouth—or rather, click-of-mouth—until eventually people are making T-shirts about it. No one ever said this was going to happen for everyone. So, what are your chances of achieving YouTube stardom? I crunched the numbers to find out what percentage of YouTube videos hit it big, cracking even 10,000 or 100,000 views. The results: You might have better odds playing the lottery than of becoming a viral video sensation.

And after he runs the numbers to show how such a small percentage of videos dominate YouTube, Wilson goes on to note:

These figures certainly don’t ratify the grand promise of social media. Not everyone uses YouTube to launch their showbiz or political career, but the potential to do so is central to the Web 2.0 narrative that figures in so many newsmagazine panegyrics. When the odds of even 1,000 people viewing your video in a month’s time are only 3 percent, however, it’s tough to argue that hitting it big on YouTube is anything more than dumb luck. You could argue that this is the way it’s always been in show biz, and you’d be right. But wasn’t the Web supposed to change all that?

Indeed, why is that?  After all, as Wilson suggests, the Internet, blogs, social networks, Twitter, YouTube, and so on, were the revolutionary platforms that were supposed to democratize all media and give everyone a fighting chance to be heard.  Instead, power laws and media inequality have proven relentlessly persistent.  Here’s how I explained why this is the case in an earlier essay:

There are several reasons that power laws always exist in all media contexts. We used to think it was because the economics of media are quite different than most other industries. Namely, media industries typically exhibit “public good” qualities; high fixed (production costs), but lower distribution costs.  But the primary reason why power laws are probably more prevent in media industries than other sectors of the economy is because the creation and consumption of news and popular culture is a truly social phenomenon. Think of it as the economics of popular choice and the sociology of fashion and fads. People (and consumers) react to what others are reading or watching. Word-of-mouth counts. Bandwagon effects exist. First-mover advantages are significant. And so on.  The end result is a hopeless imbalance of outcomes or outputs.  Media egalitarianism is simply an impossibility.

OK, so now that I’ve said all this and rained on the New-Media-Will-Produce-Perfect-Outcomes-Parade, let me explain why NONE OF THIS MAKES A DAMN BIT OF DIFFERENCE.   What is really important is equality of media opportunity, not equality of media outcomes.  A focus on the latter is both foolish and destructive. It is foolish because media equality is an impossibility absent extreme measures, which in turn explains why it is destructive. We would need totalitarian government controls on media outputs and consumption in order to achieve anything remotely close to “balance” or “equality” in terms of media results.

Again, all that really counts is that people have a chance to be heard, not whether millions are listening.  New media platforms really do change some things for the better because at least we now all have an equal chance to make a go at it and grab a bit of that audience. That’s certainly more than could be said back in the old analog media world, in which we suffered from outlet scarcity and information poverty. Today, by contrast, will live in a wonderful world of media abundance, where every man, woman, and child really does have a soapbox on which to stand and speak to the world.

Of course, no one may be listening.  And there will always be someone else who will nab greater audience share than you.

Get used to it. It is the way the media world has always worked, and it is the way every media platform will work until the end of time.  So long as citizens are free to choose, media inequality is inevitable.

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Tim Wu on Obama, McCain, and “a Chicken in Every Pot” https://techliberation.com/2008/09/10/tim-wu-on-obama-mccain-and-a-chicken-in-every-pot/ https://techliberation.com/2008/09/10/tim-wu-on-obama-mccain-and-a-chicken-in-every-pot/#comments Wed, 10 Sep 2008 19:03:56 +0000 http://techliberation.com/?p=12582

Writing at Slate, Tim Wu tries to make Obama out to be the real Big Government candidate on media policy, who will deliver “if not a chicken in every pot, a fiber-optic cable in every home.” By contrast, Wu implies that McCain is just another pro-big business lackey who doesn’t understand “that the media and information industries are special—that like the transportation, energy, or financial industries, they are deeply entwined with the public interest.” Wu goes on to say:

Ultimately, most of the difference in Obama’s and McCain’s media policies boils down to questions about whether the media is special and a dispute over how much to trust the private sector. Camp McCain would tend to leave the private sector alone, with faith that it will deliver to most Americans what they want and deserve. The Obama camp would probably administer a more frequent kick in the pants, in the belief that good behavior just isn’t always natural.

First, as a factual matter, Wu is just wrong about McCain being some sort of a radical hands-off, pro-market liberalizer on media policy issues. Oh, if only that were true! But for those of us who have been in DC covering telecom and media policy for many years, it is widely understood there is no nailing down John McCain on any tech, telecom or media policy issue. He’s been all over the board. While he has sponsored or supported some deregulatory initiatives on the telecom front in the past, he’s also been a supporter of other regulatory causes. His battles with broadcasters and cable, for example, are well-known. Most recently, McCain has been leading the effort to impose a la carte mandates on cable and satellite operators. And if you’re all about Big Government credentials, then don’t forget McCain-Feingold, a law that made it a felony for corporations, nonprofit advocacy groups, and labor unions to run ads that criticize–or even name or show–members of Congress within 60 days of a federal election. And then there was the far more troubling McCain-Feingold II. Although it did not pass, McCain’s measure would have required broadcasters to run 12 hours of “candidate-centered and issue-centered programming” in the six weeks prior to primary and general elections—without giving broadcasters any control over those 12 hours (half of which would have had to run during prime time). The bill would have created a voucher system for the purchase of airtime for political advertisements, financed by an annual spectrum-use fee on all broadcast license holders. In sum, the legislation would have forced broadcast stations to pay a tax to the federal government that would in turn finance a pool of funds that politicians could turn around and spend to run ads on those very stations!

This sounds like the sort of Big Government Media Agenda that should make Tim Wu happy, but he doesn’t mention any of it in his essay.

But let me address the more fundamental, and quite mistaken, premise that underlies Wu’s essay — namely, that increased government activism in the media and broadband marketplace will somehow lead us to techno-nirvana. When Wu states that “the difference in Obama’s and McCain’s media policies boils down to questions about whether the media is special and a dispute over how much to trust the private sector,” he conveniently ignores the flip-side of that statement. That is, shouldn’t the real question here be: “How much do we trust the public sector”? Wu apparently assumes that “public interest” regulation will be all wine and roses. Enlightened, benevolent lawmakers and regulators who understand that media is “special” will concoct just the right mix of regulatory policies that will be pro-consumer, pro-democracy, and pro-free speech.

Sorry, but I’m not buying it. One would need to ignore 100 years worth of experience to believe such fanciful notions, and Wu seemingly does. Somehow, all will be different now. Regulators won’t be captured by special interests. Command-and-control regulation will suddenly become far more efficient and not deter innovation. And policymakers will resist the urge to censor speech.

Do you believe that story? If you’ve read your economic history, you’re probably just as skeptical as I am. It is revisionist history to say that the era of regulated monopoly and “public interest” media regulation was some sort of pro-consumer, pro-innovation, pro-free speech paradise. In reality, a “chicken in every pot” means a regulator on every cyber-corner. And I just don’t understand how someone as smart as Tim Wu thinks the entire process won’t once again come to be captured by the very interests he hopes to “kick in the pants.” They will be wearing the pants before it is over!

I invite Tim Wu and all his activist-minded friends on the Left to take another look at the definitive 2-volume Economics of Regulation by a more enlightened and experienced Democrat, Professor Alfred E. Kahn. In that masterwork, they will find the following words of wisdom (and caution):

When a commission is responsible for the performance of an industry, it is under never completely escapable pressure to protect the health of the companies it regulates, to assure a desirable performance by relying on those monopolistic chosen instruments and its own controls rather than on the unplanned and unplannable forces of competition. […] Responsible for the continued provision and improvement of service, [the regulatory commission] comes increasingly and understandably to identify the interest of the public with that of the existing companies on whom it must rely to deliver goods.
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Media Deconsolidation (Part 23): Cox Selling Most of its Newspapers https://techliberation.com/2008/08/14/media-deconsolidation-part-23-cox-selling-most-of-its-newspapers/ https://techliberation.com/2008/08/14/media-deconsolidation-part-23-cox-selling-most-of-its-newspapers/#comments Thu, 14 Aug 2008 15:39:08 +0000 http://techliberation.com/?p=11943

My ongoing media DE-consolidation series represents an effort to set the record straight regarding one of the leading myths about the media marketplace today: the notion that rampant consolidation is taking place and that operators are only growing larger and devouring more and more companies.

Nothing could be further from the truth. Over the past 3 to 5 years, traditional media operators and sectors have been coming apart at the seams in the face of unprecedented innovation and competition. The volume of divestiture activity has been quite intense, and most traditional media operators have been getting smaller, not bigger. “Traditional media’s numbers are shrinking,” argued FCC Commissioner Robert McDowell in a recent speech. “The ironic truth is,” McDowell continued, that “in many cases, media consolidation has actually become media divestiture. Companies… have been shedding properties to raise capital for new ventures.”

And so that trend continues today with the announcement from Cox Enterprises that it will be selling almost all its newspapers. According to the The Atlanta Journal-Constitution:

Cox Enterprises, the Atlanta-based media conglomerate that built a multibillion-dollar business from a single Ohio newspaper, announced Wednesday that it plans to sell all but three of its newspaper holdings. The company will retain flagship newspapers in Dayton, Ohio; West Palm Beach, Fla.; and Atlanta — including The Atlanta Journal-Constitution — but sell dozens of daily and weekly newspapers in Colorado, North Carolina and Texas. Company officials did not disclose an asking price for the properties but said revenue from the sales will be used to pay down debt and free up capital for other investments. Cox will also sell Valpak, the company’s nationwide direct-mail advertising division, officials said. Sandy Schwartz, the Cox president over the newspaper division, said the company has no plans to sell its newspapers in Atlanta, Dayton and West Palm Beach, which are moving aggressively to contain costs and establish strong online readerships. The sale comes amid slumping revenues and declining values for newspapers across the country as print media lose market share to the Internet.

Once again we see how life in the newspaper business can be a turbulent affair with grim long-term growth prospects. Nonetheless, let’s not lose sight of the fact that traditional media operations are once again growing smaller, just like all the media critics supposedly want. So, I eagerly look forward to the press releases from Free Press and Media Access Project noting that fact. But something tells me I shouldn’t hold my breath in anticipation of those statements since we know the media reformistas have a far more ambitious and radical “reform” agenda in mind.

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