Media Regulation

In a previous essay, I critiqued Andrew Keen’s thesis that our culture was better off in the age of scarcity than it is in today’s world of media and cultural abundance. In this essay, I want to make a few comments about his latest anti-Web 2.0 rant regarding how, in addition to destroying art and culture, the age of abundance and “amateur” content creation is going to result in the death of advertising.

In an AdWeek guest editorial this week, Keen argues that:

Web 2.0 is, in truth, the very worst piece of news for the advertising industry since the birth of mass media. In the short term, the Web 2.0 hysteria marks the end of the golden age of advertising; in the long term, it might even mark the end of advertising itself.

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[F]or the advertiser, media content is indeed losing its value, a value historically derived from its scarcity. This devaluation of media isn’t hard to quantify: It can be measured everywhere, in falling CPM and the failure of social networks to develop viable business models. No new technology—neither the false dawn of mobile, nor the holy grail of personalized, targeted advertising—is going to save the advertising business now. No, the truth is that advertising can only be saved if we can re-create media scarcity. That means less user-generated content and more professionally created information and entertainment, less technology and more creativity. The advertising community desperately needs more gatekeepers, more professional creative authorities, more so-called media “elites” who will curate, filter and organize content. That’s the way to re-establish the value of the message. It’s the one commercial antidote to Web 2.0’s radically destructive cultural democracy.

Oh my, where to begin…

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To continue my long-running series of essays about media DE-consolidation…

One of the America’s oldest media operations, the E.W. Scripps Company, announced a major plan to split up its operations yesterday. With a loan from his brothers in 1878, E.W. Scripps went on to establish a successful penny press newspaper business that later blossomed into a nationwide media empire with newspapers, syndicated features, cable networks and Internet / interactive properties.

But now the Scripps media empire will be dividing into two different companies. One, which will still be called “E.W. Scripps,” will cover “old media” print properties and stick to covering local markets. The other company, which will be called “Scripps Network Interactive,” will focus on “new media” efforts of an interactive nature and with national scope. This is somewhat along the lines of the Viacom-CBS split a few years ago, which I wrote about here.

It’s all just more proof that the modern media marketplace is far more dynamic than the pro-regulation media critics ever want to admit. These stories about media breakups get relegated to the backpages of newspapers and buried on websites, if they get reported at all. By contrast, whenever there is a merger, it’s always front-page news full of Chicken Little quotes about the coming media apocalypse. It’s all quite silly.

Andrew Keen is the web’s favorite whipping boy these days, and in some ways he has it coming. His latest book, The Cult of the Amateur: How Today’s Internet is Killing Our Culture, is an anti-all-things-Web 2.0 screed. Keen lambastes “Internet democracy” (specifically the Wiki model of collaborative creation) and decries the rising tide of user-generated everything. When you get right down to it, Keen’s view of the world is unapologetically techno-conservative and culturally elitist. He’s angry that there are fewer intermediaries minding the culture. As a result, he argues, “professional” media (by which he means to say “better” media) is giving way to “amateur” media (which he regards as synonymous with, well… crap).

Unsurprisingly, the blogosphere has fought back with a vengeance and called Keen every nasty name in the book. But the best and most level-headed critique of Keen’s work is still this old essay by the ever-insightful Clay Shirky. Clay’s response rightly concedes that Keen in correct in pointing out that some important things have been lost with the rise of the Internet. There certainly are fewer intermediaries filtering our culture for us, and that will sound like a great thing to many of us. But it’s important to realize that some of those mediating forces serve a valuable role. Editors, for example, play an important, but often overlooked, role in terms of improving the quality of great deal of media content of all varieties (journalism, books, movies, music, etc). The blogosphere is becoming an editor-free zone, and at times it really shows. There are times when some particularly insulting things are said or silly mistakes are made that probably would have been corrected had a good editor been responsible for overseeing the final product.

On the other hand, the unfiltered Web 2.0 experience is wonderfully refreshing. Sometimes it’s nice to see what the uninhibited exchange of ideas results in. Regardless, the bottom line is that the editing profession (broadly defined) is changing because of the Internet. That is undeniable. And other mediating forces or institutions are seeing their power or relative importance in the cultural creation process diminished as the Internet-spawned disintermediation continues unabated.

Will that create short term problems? Undeniably. But Keen thinks these developments are contributing to a sort of cultural catastrophe and that we are collectively much worse off because of this disintermediation and empowerment of the “amateur.” This goes much too far in my opinion.

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Last week was a whirlwind of activity for the telecommunications, media and technology project with which I had been engaged since August 2006.

The folks at the Berkman Center for Internet and Society at Harvard were kind enough to invite me to speak in their luncheon series on Tuesday, October 9. I discussed “Media Tracker, FCC Watch, and the Politics of Telecom, Media and Technology.” I’m happy to report that the event is now archived on Media Berkman as a webcast.

I spoke about the work of the “Well Connected” Project at the Center for Public Integrity for which I was responsible. I devoted most of my time in the lecture to the Media Tracker, the interactive database at the heart of the project. The Media Tracker combines data from publicly available sources in a new and unique way, mapping out media and telecom ownership at the ZIP code level. Ownership is linked to lobbying expenditures and campaign contributions by company. The level of contribution by a telecom, media or technology company to any federal candidate can be viewed – documenting who has received what from whom.

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The Power of New Media

by on September 24, 2007 · 1 comment

Back in 2005, I wrote a book called Media Myths and one of the myths I attempted to debunk in the book dealt with the power of new media outlets and technologies relative to the old mass media. Specifically, I made the argument that, contrary to what many media critics claimed, new media could provide both a credible alternative to many traditional mass media providers as well as a powerful check on them and their power.

That argument was certainly harder to advance back in 2005 when the general public was just beginning to gain an appreciation for the power of the Internet, blogs, and so on. Today, however, I think most people “get it.” I remember back then how many people would stare at me funny when I explained to them how I started my day by reading Google News and checking my Bloglines account for updates to my favorite blogs. But now I seem almost old fashion when I say that to an audience as many have moved on to even more sophisticated ways of gathering news and information daily.

And with each passing week, I continue to discover new and exciting ways that new media outlets and technologies are shaking things up and providing a credible alternative to old media. Last week, for example, provided us with two powerful examples:

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The Parents Television Council has a new report out this week about the supposed decline of the TV “Family Hour.” The City Journal has just posted my response to that PTC report here. It begins as follows…
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Who Killed TV’s “Family Hour”?

It’s not who you think.

by Adam D. Thierer
7 September 2007

The nonprofit Parents Television Council (PTC) released a report this week lamenting the supposed death of broadcast television’s “family hour.” Though neither the Federal Communications Commission nor Congress ever mandated it, 8 to 9 PM Monday through Saturday (Eastern time), and 7 to 9 PM on Sunday, have traditionally been devoted to family-friendly programming. But the PTC’s new report claims that these blocks of time are now “no place for children,” because “corporate interests have hijacked the family hour” and “have pushed more and more adult-oriented programming to the early hours of the evening.”

One might respond to this claim by questioning the PTC’s methodology, particularly its definitions of foul language. Simon Vozick-Levinson of Entertainment Weekly’s “PopWatch Blog” takes this approach, accusing the PTC of “cooking the numbers” to suit its cultural agenda. But I don’t want to engage in methodological nit-picking, since it quickly devolves into a subjective squabble about acceptable language and appropriate programming. Instead, I want to point out the fundamental flaw in the report’s premise. The family hour may well be dead—but parents, not broadcasters, were the ones who killed it.

read the rest at the City Journal’s website.

A reporter from Education Week called me today to get my comments about the supposed persistence of the “digital divide” among U.S. schools and school children. Apparently a speaker at a conference that this reporter had attended recently had made the point that although the divide in computer use and basic Web access has been bridged, a new divide is emerging in Web 2.0 applications, high-speed Internet, and laptops and mobile technologies The reporter asked for my comments.

Back in the late 1990s, I used to do a lot of work on this issue and the same point I made during those old debates is still true today. Namely, although the pace of technological diffusion is never perfectly even, the good news is that digital technology is getting out to the masses faster than every previous media or communications technology known to man. In fact, children are gaining access to digital technology and software and a breakneck pace. The problem that many parents (and schools) will face in the near future is not too little technology being available to children, but rather, too much!

But there was another point I used to always make in those old digital divide debates that still holds true today as well: We should be careful not to confuse the debates over “goods-based divides” versus “skills-based divides.” Debates about what goods and gadgets kids have access to are interesting and at times can be important since some gaps can persist longer than others. But, again, when it comes to digital technologies, those gaps tend to close very quickly. That’s because the market for digital technologies continues to expand rapidly and costs fall almost as quickly. A lot of it is even free, of course.

But skill-based divides are another matter entirely. There are deep and persistent divides in our educational system. The basic skills our children need to take full advantage of digital technologies are not always being instilled in them. But let’s not pretend that this has anything to do with access to technology or the supposed existence of a “digital divide.” This is about an broken, state-run education system that has short-changed our children in terms of basic skills. Let’s find ways of fixing that mess and stop pretending that digital hardware or software has anything to do with this.

ASPEN, Colo. – Federal Communications Commission Chairman Kevin Martin on Tuesday offered two proposals that he said would address concerns about objectionable content and add “access to new voices in the media.”

Martin repeated his proposal to require cable operators to sell television programming a la carte, or on a per-channel basis. “The ability to pick and choose among the content being offered them by the cable operators,” he said at the Aspen Forum on Communications and Society here.

Parents would have “much have meaningful choices” in the programming they could watch, he said. Currently, “there is little or no incentive for the market or programmers to respond” to parents’ demands for less racy content.

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If you’re following the ongoing debate over efforts to mandate a la carte regulation for cable and satellite TV, there’s an interesting piece in yesterday’s Wall Street Journal entitled, “TV Channels Move to Web, Think Outside the Cable Box” [subscription only] that deserves your attention. Author Bobby White argues that “The Internet is offering a new outlet for voices — including those of ethnic minorities — that weren’t heard from as much under old media.” He highlights how the Black Family Channel and some other new networks that haven’t found a home on the cable dial have decided to give it a go online instead:

Across the cable TV industry, other independent channels are also turning away from TV to the Internet. The Lime Channel, which focuses on healthy living, pulled out of cable last year and now offers its programming online and as video on demand. The Employment and Career Channel, which began streaming online in 2002, has junked its attempts to be a cable TV channel to be an online-only outlet. Others, like the Horror Channel and HorseTV (which revolves around equestrian events), have also opted to go online.

The shift illustrates how the Internet is offering a second chance to certain segments of old media. Web-based TV is now becoming a more viable business route, and Internet video is exploding. Running an online-only video channel, which doesn’t require expensive cameras and broadcasting gear, is cheaper than operating a cable TV channel. While starting a new cable channel today takes an initial investment of $100 million to $200 million, a broadband channel needs just $5 million to $10 million to get going, says Boston-based research firm Broadband Directions.

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WSJ As James points out, there’s already a lot of huffin’-and-puffin’ going on about Rupert Murdoch’s deal for The Wall Street Journal. (Just look at the silly things that presidential candidate John Edwards had to say today about it). The City Journal has just posted an editorial I have written responding to this hysteria…

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“Rupert Murdoch, Meet Chicken Little”
by Adam Thierer
8/2/07

Help, the sky is falling! So say the pro-regulation media agitators at Free Press, which fired off what is sure to be the first of many hysteria-ridden press releases about Rupert Murdoch’s successful acquisition of the Wall Street Journal and its parent company, Dow Jones & Co. “This takeover is bad news for anyone who cares about quality journalism and a healthy democracy,” argued Robert W. McChesney, president of Free Press. “Giving any single company—let alone one controlled by Rupert Murdoch—this much media power is unconscionable.”

The argument that the Murdoch–Dow Jones marriage will have a significant impact on American journalism or democracy is absurd. Don’t get me wrong. The Journal is a great paper; in my opinion, it represents the pinnacle of journalistic excellence. Nonetheless, it’s just one of many voices shouting to be heard in today’s media cacophony. Indeed, the modern media marketplace is extraordinarily dynamic, with new outlets and technologies developing constantly. Despite the existence of a handful of very large conglomerates, dozens of other important media companies continue to thrive and fill important niches that the big firms have missed. As Columbia University’s Eli Noam has noted of the modern media marketplace, “While the fish in the pond have grown in size, the pond did grow, too, and there have been new fish and new ponds.”

Read the rest of the piece here.