Media Regulation

Google Trends for websites reveals all kinds of fascinating insights into the way technology is reshaping the world. Among them is the fact that the HuffingtonPost.com has matured from a scruffy group blog into a new media powerhouse to rival the Wall Street Journal and Washington Post:

HuffPo WSJ WashPo

Note that the convergence of these three sites has happened both because HuffPo has doubled its audience and because the audience for the WashingtonPost.com has shrunk by half.  While WSJ.com’s audience has returned to roughly its pre-election level, the decline of NYTimes.com suggests that the Internet really is splintering audiences and bringing the giants of news media like the “Gray Lady” down from their once unassailable heights:

HuffPo WSJ WashPo NyTimes

newspapers on fireTwo great articles today about the dangers of government getting too involved in the newspaper business as the industry experiences serious marketplace difficulties. Slate’s Jack Shafer (“Saving Newspapers From Their Saviors“) and Mark Hopkins of Silicon Angle (“Obama Administration ‘Open’ to State Run Newspapers“) both raise concerns about President Obama’s recent comments hinting that he is open to legislation that might grant struggling news organizations tax breaks if they were to restructure as nonprofit businesses.

In a piece for the City Journal back in March entitled “Socializing Media in Order to Save It,” I discussed the specific proposal in question, Senator Benjamin L. Cardin’s (D-MD) bill, S. 673, the “Newspaper Revitalization Act,” which would allow newspapers to become nonprofit organizations in an effort to help them stay afloat. Importantly, however, the measure would also disallow political endorsements on their editorial pages as part of the deal.  In my essay, I pointed out how “If the FCC received grant-making authority to dole out subsidies to media operators… it’s hard to imagine how journalists won’t be expected to surrender something in exchange.”  And that something would be their journalistic independence.

Shafer and Hopkins raise similar concerns in their essays.  Continue reading →

Thanks to Adam for the kind introduction; for folks to whom I’m unfamiliar, my Ars Technica archive has the bulk of my tech writing over the past year and change, though plenty of it is straight reporting now well past its expiration date.  It’s been suggested that for openers, I crosspost last week’s Cato @ Liberty thumbsucker on behavioral advertising regulation, which riffs on some of the commentary here, but in the interest of avoiding redundancy, I’ll just do the digest version and let the curious click through. Since they say the first day in lockup, you should pick a fight with the biggest mofo in the yard, I’ll excerpt the part where I disagree with Berin a bit:

First, while it’s certainly true that there are privacy advocates who seem incapable of grasping that not all rational people place an equally high premium on anonymity, it strikes me as unduly dismissive to suggest, as Berin Szoka does, that it’s inherently elitist or condescending to question whether most users are making informed choices about their privacy. If you’re a reasonably tech-savvy reader, you probably know something about conventional browser cookies, how they can be used by advertisers to create a trail of your travels across the Internet, and how you can limit this.  But how much do you know about Flash cookies? Did you know about the old CSS hack I can use to infer the contents of your browser history even without tracking cookies? And that’s without getting really tricksy. If you knew all those things, congratulations, you’re an enormous geek too — but normal people don’t.  And indeed, polls suggest that people generally hold a variety of false beliefs about common online commercial privacy practices.  Proof, you might say, that people just don’t care that much about privacy or they’d be attending more scrupulously to Web privacy policies — except this turns out to impose a significant economic cost in itself.

I still end up rejecting most of the proposed arguments for regulation, though a couple of the suggested rules (notice requirement, liquidated damages for intentional breach of stated privacy policy) struck me as more defensible, if not especially urgent.

That aside, I want to get down to the more important business of suggesting a TLF theme song: The Magnetic Fields’ sardonic “Technical (You’re So)” (whence the title of this post),  in which wordsmith/crooner Stephin Merritt delivers such lines as: “There are no papers on you /  The laws don’t cover what you do / You and your think-tank entourage / Are all counterculture demigods” and “You’re a Libertarian / The death of the left was you / You look like Herbert Von Karajan / You live underneath the zoo.”  Sure, they’re meant as mockery when Merritt sings them, but then, “queer” used to be a pejorative too. Reappropriation, baby.

Also, rhyming “Libertarian” with “Von Karajan” is the greatest act of poetry in music since Sting paired “He starts to shake and cough” with “the old man in / that book by Nabakov.” Fact.

Polish designer Jacek Utko acknowledged that, in the long-run, nothing can save the newspaper as a print medium, but makes a pretty good case newspapers’ ability to  stay afloat while figuring out how to make the transition to digital media depends heavily on shaking up the graphic design and layout of papers.

If nothing else, this should remind us all that innovation and entrepreneurship aren’t just about technical improvements or better business savvy, but aesthetics, too! The art of commercial culture is like the oxygen we breath: all around us but something we scarcely notice.

A coalition of ten self-described “consumer and privacy advocacy organizations” today demanded legislation that would restrict the collection and use of data online for customizing advertising based on Internet users’ interests. I’ll have more to say on this but here are my initial comments:

These so-called “consumer advocates” are actually anti-consumer elitists.  Not only do they presume that consumers are too stupid or lazy to make their own decisions about privacy, but they ignore the benefits to consumers: more relevant advertising plus more and better content.

Advertising has been the “mother’s milk” of media in America since colonial times and the future of media depends on the ability of publishers to replicate that revenue model online.  Micropayments, donations, subscriptions alone simply can’t fund a vibrant marketplace of ideas.  Only personalized advertising can sustain publishers through the Digital Revolution.

Regulatory advocates haven’t demonstrated any harm to consumers that would justify such sweeping preemptive regulation.  By strangling funding for new media, such regulations would amount to an “Industrial Policy” for the Internet.  Instead, policymakers should focus on educating consumers and empowering them by promoting development of better privacy management tools.

The D.C. Circuit has struck down as arbitrary and capricious the FCC’s “cable cap.”  The cap prevented a single cable operator from serving more than 30% of U.S. homes—precisely the same percentage limit struck down by the court in 2001.  The court ruled that the FCC had failed to demonstrate that “allowing a cable operator to serve more than 30% of all cable subscribers would threaten to reduce either competition or diversity in programming.”

The court’s decision rested on the two critical charts (both generated by my PFF colleague Adam Thierer in his excellent Media Metrics special report) at the heart of the PFF amicus brief I wrote with our president, Ken Ferree:

First, the record is replete with evidence of ever increasing competition among video providers: Satellite and fiber optic video providers have entered the market and grown in market share since the Congress passed the 1992 Act, and particularly in recent years. Cable operators, therefore, no longer have the bottleneck power over programming that concerned the Congress in 1992.

Increasing Competition in the MVPD Marketplace

Second, over the same period there has been a dramatic increase both in the number of cable networks and in the programming available to subscribers.

Our chart shows the explosion in the number of programmers (though not the total amount of programming), as well as the falling rate of affiliation between cable operators and programmers, which was among the prime factors motivating Congress when it authorized a cable cap in the 1992 Cable Act:

Video Choices & Vertical Integration in the Multichannel Video Marketplace

Continue reading →

I wonder, now that the FCC has a blog, shouldn’t the Fairness Doctrine apply? I want my equal time on that soapbox!  Every citizen should be given a chance to have their say.  It’s only fair, right?

Twitter Power Laws

by on August 17, 2009 · 12 comments

Thanks to Mashable, we clearly see power laws at work on Twitter. While many protest this as evidence of “media inequality,” the “non-tweeting will always be with us” (to paraphrase Jesus’s comment about the persistence of “the poor”)—and this is nothing to get bent out of shape about, as Adam has explained.

Courtesy of Mashable

Courtesy of Mashable, David McCandless

Dan Rather actually made the following two contradictory statements in the same speech:

I personally encourage the president to establish a White House commission on public media.

and then:

A truly free and independent press is the red beating heart of democracy and freedom.

He’s right that the free press is a “watchdog on power.” But that’s not compatible with the idea that, as reported, “the government makes an effort to ensure the survival of the free press.” A press funded, promoted, propped up, subsidized by government is not a free press. Nor is it in any position to be a watchdog; it’s more likely to become a megaphone for the states preferred ideas and expansion of government in other spheres, like health care, energy, finance, telecommunications, scientific research and policy and so on.

Democracy as a concept and political system is not at stake, as Rather thinks, when a particular business model engaged in public communications and broadcasting suffers at a particular point in history. It’s been beaten to death, but everyone knows the transformative importance of the Internet and its role in making voices heard that never had a chance when Rather and his two rival channels dominated the news and airwaves for 30 minutes each evening.

Continue reading →

What Unites Advocates of Speech Controls & Privacy Regulation? [pdf]

by Adam Thierer & Berin Szoka
The Progress & Freedom Foundation, Progress on Point No. 16.19

Anyone who has spent time following debates about speech and privacy regulation comes to recognize the striking parallels between these two policy arenas. In this paper we will highlight the common rhetoric, proposals, and tactics that unite these regulatory movements. Moreover, we will argue that, at root, what often animates calls for regulation of both speech and privacy are two remarkably elitist beliefs:

  1. People are too ignorant (or simply too busy) to be trusted to make wise decisions for themselves (or their children); and/or,
  2. All or most people share essentially the same values or concerns and, therefore, “community standards” should trump household (or individual) standards.

While our use of the term “elitism” may unduly offend some understandably sensitive to populist demagoguery, our aim here is not to launch a broadside against elitism as Time magazine culture critic William H. Henry once defined it: “The willingness to assert unyieldingly that one idea, contribution or attainment is better than another.”[1] Rather, our aim here is to critique that elitism which rises to the level of political condescension and legal sanction. We attack not so much the beliefs of some leaders, activists, or intellectuals that they have a better idea of what it in the public’s best interest than the public itself does, but rather the imposition of those beliefs through coercive, top-down mandates.

That sort of elitism—elitism enforced by law—is often the objective of speech and privacy regulatory advocates. Our goal is to identify the common themes that unite these regulatory movements, explain why such political elitism is unwarranted, and make it clear how it threatens individual liberty as well as the future of free and open Internet. As an alternative to this elitist vision, we advocate an empowerment agenda: fostering an environment in which users have the tools and information they need to make decisions for themselves and their families. Continue reading →