Archive for the ‘Media Business’ Category

How Much Would It Take to Endow Nonprofit Journalism?

Tuesday, October 20th, 2009

In their analysis of what ails the journalism business (CJR.org, 10/19/09), Leonard Downie, Jr., and Michael Schudson seem to pooh-pooh the idea that newspapers could be turned into non-profits funded by endowments, "as though they were museums."

"It would take an endowment of billions of dollars to produce enough investment income to run a single sizeable newspaper," Downie and Schudson write, "much less large numbers of papers in communities across the country."

But would it really? At another point in the article they note that the Baltimore Sun is down to 150 reporters--but it seems like you'd still have to call that a "sizeable newspaper," able to do a great deal of the "accountability journalism" that Downie and Schudson are rightly focused on...particularly since, based on the figures they give, the typical state capital only has seven full-time reporters. Let's say you can hire a reporter for $100,000; that would give you a journalistic payroll of $15 million.   To get that using the average rate of return for college and university endowments for 1998-2007, you would need a nest egg of about $174 million.   If you had an endowment of $2 billion and got that rate of return, you could hire more than 1,700 reporters--maybe that's what Downie and Schudson mean by "sizeable."

Is it possible for the public to amass that kind of funding to support journalism?  The same group that provided the college investment income figures, the National Association of College and University Business Officers, reports that a total of 785 academic institutions across North America had a combined endowment of $411 billion--enough to hire 350,000 reporters.

Education is important; so is journalism.  The difference is that our society recognizes that capitalism is not going to provide us with all the educational institutions that we need.  When we realize that the same thing is true for journalism, we'll be able to find the resources.

Bon Jovi Is News?

Monday, October 19th, 2009

The New York Times reported (10/15/09) that rocker Jon Bon Jovi has arranged an unusual deal to become an "artist in residency" on NBC, appearing across the network's various shows to promote an upcoming album. The deal is all the more striking because it includes a segment on NBC Nightly News--part of the show's "Making a Difference" series--to promote Bon Jovi's philanthropic pursuits.

The idea apparently originated with Bon Jovi, who took it to NBC.  The financial arrangements behind the deal don't appear to be available, but the network already seems devoted to the idea: "NBC indicated that it intended to make the artist in residence concept a regular feature of programs on its broadcast and cable channels."

FTC Fights the Blog Schwag Menace

Tuesday, October 6th, 2009

The New York Times reported (10/6/09)  that the Federal Trade Commission was planning to establish new rules for bloggers:

The FTC said that beginning on December 1, bloggers who review products must disclose any connection with advertisers, including, in most cases, the receipt of free products and whether or not they were paid in any way by advertisers, as occurs frequently....

For bloggers who review products, this means that the days of an unimpeded flow of giveaways may be over. More broadly, the move suggests that the government is intent on bringing to bear on the Internet the same sorts of regulations that have governed other forms of media, like television or print.

"It crushes the idea that the Internet is separate from the kinds of concerns that have been attached to previous media," said Clay Shirky, a professor at New York University.

The strange thing here is the idea that such disclosure rules are "the same sorts of regulations that have governed other forms of media, like television or print." When's the last time you saw a print or TV book or music review that mentioned that the reviewer didn't pay for the book or album under consideration? Such freebies aren't even considered unethical--unlike the practice of restaurant critics getting free food, or travel writers getting free trips, though such deals happen often and are generally not disclosed when they do. One would think that Tim Arango, the author of the Times piece, would be more familiar with how print journalism operates.

Wired.com has more on the general kookiness of the proposed regulation.  Apparently amateur bloggers will have to disclose freebies, while professional websites--and traditional media outlets--won't. The logic, if you can call it that, is that if you can afford to pay for it yourself, then you don't have to.

John Stossel, Free at Last

Tuesday, October 6th, 2009

Rupert Murdoch's latest hire John Stossel, speaking at a Michigan college:

I quit ABC a couple weeks ago partly because they didn't like what I was doing. They viewed it as too biased.

Yes, ABC promoted Stossel to 20/20 anchor, gave him regular "Give Me a Break" commentary segments and one-hour, factually challenged primetime specials...all because they didn't like him. It's scary to think what the network would have done if they did like him.

Localism: Corporate Media's Ultimate Bogeyman

Sunday, September 20th, 2009

On his Media Citizen blog, Free Press' Timothy Karr (9/17/09) has compiled some astounding Glenn Beck, Rush Limbaugh and Lou Dobbs quotes propounding a "fear that's laced with paranoia, stoked by misinformation and prejudice and fed to millions of people via powerful media"--namely that "the most anti-American notion of the lot is the idea that we need to reform the media itself":

While Beck and his ilk want to portray diversity and localism as a dangerous conspiracy to censor, the fact remains that these ideas have been staples of communications policy since the beginning. The central mandate of the Federal Communications Commission--as enshrined in the Communications Act of 1934--is to promote localism, diversity and competition in the media. This same principle of localism has been a rallying cry for several generations of true conservatives.

Broadcasters get hundreds of billions of dollars' worth of subsidies and the right to use our airwaves in exchange for a basic commitment to be responsive to the interests of local communities.

Moreover, the Supreme Court recognized that "safeguarding the public's right to receive a diversity of views and information over the airwaves is ... an integral component of the FCC's mission."

Sadly, the FCC has failed to live up to this standard.

"What mainstream media's fear-merchants are most afraid of," writes Karr, "is not censorship, but an FCC that actually does its job--creating more opportunities for people like you and me to participate in media."

See the FAIR publication Extra! Update: "The Great Spectrum Giveaway" (10/95) by Jim Naureckas.

Lauding 'Those Who Chose to Look' at Economic Crisis

Wednesday, September 16th, 2009

By now it's old news to any reasonably critical observer that corporate outlets' "business reporters failed to see the crisis in the mortgage and credit markets as it brewed and bubbled," as former City Limits editor Alyssa Katz puts it (CJR.org, 9/14/09), but Katz also gives props to others who noticed how "evidence of its unsustainability was plain to see for those who chose to look":

The fact is, and as immodest as it may seem to say, independents were repeatedly ahead of the curve on covering the mortgage and real estate bubble and in connecting the dots between vital elements of the bigger story—especially the links between predatory and lending and the metastasizing mortgage-backed securities market.

In 2002, the Nation warned that the mortgage-backed securities market’s bottomless appetite for subprime mortgages was financing an epidemic of destructive lending. In 2003, Southern Exposure exhaustively documented Citigroup’s move into the mass production of high-interest loans designed to drain borrowers' meager wealth. In 2005, Mother Jones assigned me to find out why the streets of Cleveland were lined with vacant houses. A reasonable question, and I found the answers on the Wall Street credit securities market. Indeed, all through this period, alt-weeklies told tales found in living rooms and legal services offices of homeowners who had believed a mortgage broker’s misleading sales pitch and wound up facing foreclosure.

Examining "the fact" that "independent journalists exposed the dimensions of the problem with a depth and timeliness that mainstream news organizations simply and regrettably did not match," Katz thinks "it's not about being better journalists; it is about being tuned to a different audience and set of interests." Read FAIR's magazine Extra!: "Busted Bubble: The Press Fell Down on the Job on Housing Prices" (11–12/08) by Veronica Cassidy.

Newsweek Continues Wrestling With Aggregators

Thursday, September 10th, 2009

Under the charming headline "Eliminate the Parasites," Newsweek's Daniel Lyons (9/12/09) advances another brilliant scheme to save corporate media from the menace of Google.

Lyons likes the idea put forward by billionaire Ayn Rand fan Mark Cuban:

Cuban's advice: declare war on the "aggregator" Web sites that get a free ride on content. These aggregators--sites like Drudge Report, Newser and countless others--don't create much original material. They mostly just synopsize stuff from mainstream newspapers and magazines, and provide a link to the original....

He says the media companies should kill off these parasites by using a little piece of software that blocks incoming links from aggregators. If the aggregators can't link to other people's stories, they die. With a few lines of code, the old-media guys could snuff them out.

Great idea--except that aggregator sites don't actually have to link to the original articles--they could just synopsize the news they find and leave searching for the original article as an exercise for the reader.  As Cuban himself notes, "very few readers actually click through to the original story," so they can't be the main attraction of the aggregators. Apparently, people go to them because they are a quick way to learn the news of the day--and they're going to keep being that, unless you make it a crime to tell people what the news is. I don't think we want to do that.

The links are mainly there as a courtesy to the content-producer, and they ought to appreciate that courtesy, because more important than the traffic that such links generate directly (though this can be quite attractive, as evidenced by outlets' relentless pursuit of Drudge links) is the fact that they boost your search-engine visibility, particularly on Google. If you stopped people from linking to you, you'd be basically invisible online. And this would be good for corporate media how?

Rather than coming up with a scheme for how to get back at Google, Huffington Post or whomever, corporate media would be better off thinking about why people use aggregator sites. When people are looking for a roundup of all the news in the world, why don't they turn to a newspaper?  And when they do click on your sites, why doesn't that make you more money? Corporate media is, after all, the business of selling audiences to advertisers--if they can't do that as well as Google does, then they just aren't very good at their jobs.

NY Post Steals From, Refuses to Credit Bloggers

Saturday, September 5th, 2009

In looking at "all the angst over online appropriation of newspapers' work," Nieman Foundation blogger Zachary M. Seward (Nieman Journalism Lab, 9/4/09) thinks that "information actually flows in all directions, right?"

As "blog posts inspire newspaper articles, newspapers lift from other newspapers, and radio stations do the rip-and-read," Seward writes that "when a blogger uncovered a major zoning violation in her Brooklyn neighborhood last month, it was only natural that the New York Post would pick up the story":

But credit the blogger? That would be a violation of policy.

The Post prohibits crediting blogs and other competitors for scoops, according to the reporter, Alex Ginsberg, who noted the zoning violation two weeks after it was reported by the blogger, who calls herself Miss Heather. "Post policy prevented me from crediting you in print," Ginsberg wrote in a gracious comment on the blog. "Allow me to do so now. You did a fantastic reporting job. All I had to do was follow your steps (and make a few extra phone calls)."

The policy may have more to do with the Post's rival, the Daily News, than with blogs, but it appears to apply across the board. In an email to Miss Heather, Ginsberg wrote, "The rule is this: If every detail, fact and quote can be independently verified, then we don’t have to credit anyone."

Seward finds it "hard, of course, to defend this rule on journalistic grounds," particularly when "News Corp., which publishes the Post, has described the way Google handles its content as parasitic. How would the company describe relying on someone else's work without credit?"

Read FAIR's magazine Extra!: "Did Google Kill the Newspaper Star?" by Peter Hart (7/09).

Big Media Ponder Source of Right's 'Media Firestorms'

Friday, September 4th, 2009

One of the items enumerated in Glenn Greenwald's round-up of "Various Matters" for Salon (9/4/09, ad-viewing required) addresses how NBC's "Chuck Todd this week noted the series of petty scandals the right has been manufacturing and remarked: 'The ability of some conservatives to create media firestorms is still much greater than liberals these days'"--which viewpoint Greenwald calls out as really

reflective of one of the more irritating media syndromes: their tendency to talk about media coverage as though they have nothing to do with it and can't exert any influence over it; media coverage is just something that happens to them. During my interview with Todd a couple of months ago, he said:

Now you're getting--this has always been something that I've been--not to go off on a sidebar here--but I've been waiting for somebody, during the campaign, to ask both candidates. Because both of them, in the general elections, and frankly even during the primary with then Senator Clinton, all said that the Bush administration tried too hard to expand executive powers. And then you would say, which executive powers are you willing to give up? And none of them would actually say which executive powers, because once you're president you don't want to give up any of your powers.

He was "waiting for somebody" to ask the presidential candidates which executives powers they would relinquish. It's as though someone forgot to tell him he works at NBC News. It's very common for media stars to lament how the media covers petty stories or otherwise distorts them--as though someone is forcing them to do it and they have no agency.

Explaining that "if the right is better at 'creating media firestorms,' that's due to what 'the media does," Greenwald goes on to ask, "does anyone ever wonder why the right would be better at that if we had a Liberal Media?"

Legal Transparency Another Victim of Ailing MSM

Tuesday, September 1st, 2009

Adam Liptak of the New York Times (8/31/09) says that we can thank Riverside, California's Press-Enterprise for having "fought ferociously" in multiple Supreme Court battles ensuring "the press and the public have nearly an absolute constitutional right to attend jury selection in criminal cases."

According to Liptak, "news organizations used to consider those kinds of lawsuits a matter of civic responsibility":

"For the last four decades, maybe longer, citizens have been able to rely on small, medium and large news organizations, mostly newspapers, to fight their access battles on their behalf," said Lucy Dalglish, the executive director of the Reporters Committee for Freedom of the Press....

These days, she said, "the access litigations have dried up."

It is notable, for instance, that the American Civil Liberties Union and other civil rights groups have taken the leading role in trying to shake loose information about the Bush administration's policies and actions, while news organizations have largely sat on the sidelines.

Also notable are exactly which public interests the Times usually wields its own considerable budget in favor of--still, its valuable, if disconcerting, to read Adam Liptak reporting that the Press-Enterprise is now "so strapped that it’s quit distributing free copies of the paper to staff members in the city room."

Way Cleared for More 'Excessive Media Consolidation'

Saturday, August 29th, 2009

On news that "today, a federal court threw out the Federal Communications Commission's rule to cap cable ownership at 30 percent," Free Press (8/28/09) comments "the rule served as an important consumer protection from media consolidation and growing cable cartels, and encouraged diversity in ownership in the cable industry."

The media advocacy group's Ben Scott further calls it

regrettable that the court tossed out an important public interest protection against excessive media consolidation. Congressional intent in the Cable Act of 1992 is very clear--the goals of federal policy in the cable industry are to promote competition, consumer choice and a diversity of programming. And yet today we have a cable cartel--the video industry is dominated by only a handful of large cable operators and studios.

Today consumers experience perpetual price hikes by large operators that already have market dominating purchasing power to decide the fate of new channels. The promises of lower prices through competition from satellite and telecom companies in the video business have never been realized.

While today "the court ruled the FCC's action as 'arbitrary and capricious,'" Free Press reminds us of how "the same court threw out the rule in 2001, but it was reinstated by the FCC in 2008 due to fears of growing market power of big cable companies."

WSJ 'Scumbag' Columnist Gets Predictably Slimy

Friday, August 28th, 2009

Noticing that Democratic strategist Mark Penn "is the Wall Street Journal's 'Microtrend'-spotting columnist" and "also CEO of PR giant Burson-Marsteller," Gawker blogger Hamilton Nolan (8/26/09) posits that "only a scumbag would abuse the former to drum up business for the latter."

Alas, "Scumbag spotted!" is Nolan's cry when writing that

Penn's latest (old, and none too insightful) "Microtrend" column is about "glamping"--glamorous camping. It ran last weekend. By Monday, according to an internal email obtained by Gawker, Burson was already trying to recruit companies from the industry featured in the column as clients.


Nolan goes on to remind us that "Penn was canned as Hillary Clinton's campaign strategist after it emerged that his firm was trying to get a contract to do PR work for the nation of Colombia—work that went against Clinton's own political position." It's particularly interesting to recall that scandal as "a story that the WSJ broke," considering how, as Nolan puts it, "moonlighting from his PR career has already screwed a politician," but "now he's screwing a newspaper the same way."

The Downside to Murdoch's Plan to Control Online News

Tuesday, August 25th, 2009

The problem with Rupert Murdoch's proposal to create an online news consortium, in which major publishers would all band together to put their news content behind pay walls (L.A. Times, 8/21/09), is that it's not illegal to discuss news events online.  And you don't want to make it illegal to discuss news events online.

And yet, absent a law forbidding such discussions, there's nothing to stop someone from buying subscriptions to the various pay news sites and starting a website (like this one, but more so) in which they write about what they've learned from them--thus offering for free what the Murdoch's news trust would be trying to get people to pay for.  You can't copyright facts, and any attempt to change the law to allow publishers to do so would run straight into the shoals of the First Amendment and the concept of democracy itself.

Let's say you could keep the "tech tapeworms in the intestines of the Internet" (as a Murdoch editor memorably calls them) from passing along the news for free.  According to the L.A. Times piece, News Corp points to the Wall Street Journal as a success story with its website's 1 million paying customers, and has encouraged the New York Times Co., Washington Post Co., Hearst Corp. and Tribune Co. to follow its lead. Imagine that each of those publishers was as successful, and that the paying readers they attracted did not significantly overlap (both rather unrealistic assumptions, it strikes me)--that would be great news for publishers but something of a disaster for democracy, with the news generated by these leading (and not-so-leading) outlets confined to an elite audience of 5 million--or roughly 1-2 percent of the citizenry.

It's not like we have a particularly well-informed electorate as it is; if Murdoch's plan for an online news cartel is at all successful, though, today's voters may seem like Encyclopedia Brown.

Telecoms' 'Fake Grassroots' Push Net Misinformation

Monday, August 24th, 2009

Diligent media reformers Free Press (8/19/09) have announced a nifty new "online interactive tool to expose phony grassroots groups hired by big phone and cable companies to advance their political agenda." They're talking about "'astroturf' organizations--many of which also work for the health insurance, energy and tobacco industries"-- that "are mobilizing to spread misinformation about Network Neutrality and Internet policies."

The group's graphic presentation "tracks the huge amounts of money that phone and cable companies spend on lobbyists and campaign contributions" and

reveals the contradictory and dishonest claims about Net Neutrality and other issues from top industry executives; and it puts a spotlight on the deceptive activities of groups like FreedomWorks, Americans for Prosperity, NetCompetition and the Heartland Institute.

"The fake grassroots groups are spending major resources to deceive the public and promote agendas of the corporations that sign their paychecks," said Timothy Karr, campaign director of Free Press. "We need transparency, accountability and honest debate. The crucial policy decisions being made right now about the future of the Internet must be based on independent research, reliable data and facts. The phone and cable companies must stop distorting the issues and hiding behind their astroturf groups, sock puppets and hired shills."

Along with exposing astroturf groups, the interactive tool features "The Money Trail," which tabulates spending by big phone and cable on an army of lobbyists to push their agenda in Washington.

Some disturbing totals from the past two years: "Comcast spent more than $45 million on campaigns and lobbying," which otherwise "could have provided one year of broadband service to 150,000 households"; and Time Warner Cable spent $24 million on lobbying, instead of potentially having "subsidized 100,000 low-income households for one year of broadband service."

NYT Love Letter to Longtime NYT Food Critic

Friday, August 21st, 2009

Eater blog editor Amanda Kludt (8/20/09) has a sneak look at an embarrassingly fawning New York Times review of a new book by their own recently resigned food critic, Frank Bruni--and, "according to a tipster with a copy (not yet online), it's a looooovefest":

Exhibit A:

His writing has always been muscular and clear. Now that I have devoured his memoir, I hold him in even greater estimation, not only for his discernment and his accomplished prose but for his bravery.


OK, Dominique Browning, so you're impressed. But how about sending some more kisses Bruni's way? Exhibit B:

The love with which Bruni writes about his family is breathtaking. His relationship with his mother was one of ferocious tenderness; as I read Bruni's description of her struggle with cancer, I choked with tears.

"One benefit of holding a job of high import at the New York Times is that when you write a book, outlets line up to review it," notes Kludt--but isn't it a bit inappropriate that this should this be "including the esteemed Sunday Book Review"?