Thank Criminy Someone's Talking Sense at Last (Even if it's Too Late)
I wish I wore a hat more often, because if I did, I'd take it off to Andrew Zolli, a Brooklyn-based consultant, who has often been ahead of his time when it came to talking about technology, and has just put himself forward as the first person to offer a high-profile apology for spreading the lunatic maxim that information on the Internet should be free.
I interviewed Zolli for DC Velocity, as it happens, back in 2003, about his wild ideas that Bluetooth and other technologies would mean that a great deal of our information would in the future come to us handed on like a baton from one machine to another, obviating the need for a cellphone tower every few miles, and that this would help transform transportation management, among other things.
Back then, and until recently, like a lot of other self-styled cyber-hipsters, Zolli was all for the idea that "information wants to be free," as Stewart Brand, editor of the Whole Earth Catalog, said at the first Hackers' Conference in 1984 - an idea adopted by Chris Anderson, editor of über-trendy magazine Wired, in his seminal 2008 book, "Free: The Future of a Radical Price".
Zolli toured the country giving high-energy talks about how the introduction of electronic media, and its implications for vastly-lowered costs, meant that the business of delivering information - the core business of newspapers, magazines, radio, TV, music companies, and movie production houses - should now be able support itself through advertising alone, and that there should be no charges to the consumer at all for content. Now, in a Business Week column, he's recanted. "On behalf of all misdirected Internet visionaries, I'm sorry," Zolli says. "The idea that we Internet visionaries sold is a total load of crap."
What a shame he's too late. Let's survey the damage. It's not just that venerable newspapers such as The Rocky Mountain News have shuttered, and the Seattle Post-Intelligencer has ceased its print run. (It's now all-digital which, in theory, could simply signal a healthy shift to an information delivery technology that has superseded the old one. It isn't.) It's not just that Business Insider magazine called 2009 "the year the newspaper died." What's really terrible is that the newspapers that survive do so on a staff that's an order of magnitude smaller than ten years ago. You used to lay down your 50 cents for a newspaper, confident that the newsroom producing it teemed with reporters engaged in cut-throat competition to deliver the finest fruits of their investigative energy. (As one who worked in several, I can report they were also dens of in-fighting, backbiting, time-wasting, and tawdry romances, as well as being curiously reliable refuges for boozers and losers.) Now, sadly, on the other side of the veil, there's almost nobody there. Tumbleweeds blow down the corridors. A few empty bourbon bottles clatter in the emptiness. A single, horribly overworked, probably quite young, and certainly underpaid person taps frantically on a computer terminal, cribbing information from the World Wide Web, trying to make it look like freshly killed news.
It's not just that the newspaper died. Maybe we don't need the paper part of it: it's yesterday's technology, after all. It's that the news died. And that's a problem. The death of Real News, gathered from primary sources, checked and calibrated against multiple other, reliable sources, is partly to blame for our ill-judged war in Iraq. If the media hadn't been busy eating its own tail, we might have gotten the real story about the threat Saddam Hussein posed to the world before we invaded on spurious information. (Carl Rove recently called his own lack of pushback "one of the worst mistakes [I] made during the Bush presidency.")
Honestly, though, the blame for the collapse of a relatively respectable news-gathering industry rests not entirely on the head of Mr. Zolli and his ilk. Here's why: It's not such a crazy idea that information delivery companies should rely on revenue exclusively from advertisers eager to reach their millions of consumer customers. Ten years ago, if you took away the huge expense of typesetting, printing, and distributing print-on-paper products, you removed somewhere around 40% of the total costs of producing the average newspaper or magazine. Roughly, this was around the proportion that was covered by subscription and newsstand sales. Advertising was always a major contributor (typically 40-70%) to the financial viability of a magazine or newspaper. There wasn't a major magazine or paper in the country, in the world, that lived and died by reader revenue. If the Internet made it almost free to distribute an article about whether or not Saddam Hussein was harboring weapons of mass destruction, then maybe the cost of paying an international network of investigative reporters to write and edit that article could, indeed, be supported by advertising alone. (Obviously the equation was somewhat different for TV and radio, who still need to spend vast sums on physical infrastructure.) It wasn't a sure-fire thing, by any means. But, perhaps with a two-tier system where you paid only for premium content, it might just have worked.
The trial never happened, though, because of what happened in the boardrooms of major media corporations after the Internet announced its inevitable presence in the mid-90s. Most newspaper conglomerates were owned or run by Dead White Men who quaked in fear at their inability to wrap their heads around the mere idea of the new technology, and how the heck to stop it from cannibalizing their decades-old revenue model, let alone monetize it. They instead leapt into bed and hoped it would all go away. Meanwhile, eager young people who totally embraced the new thang, started providing content on the Internet instead, shifting the readership and audiences - who were eager for the shiny new experience of news delivery their trusted sources were refusing to give them - away from the traditional providers. (It was around this time the movie industry, who were still hoping they might stay in the business of making lots of little plastic disks in China rather than providing movies quickly and easily in an electronic form that consumers actually wanted, started putting out trendy ads about how downloading movies was stealing. This was also around the time I started shouting back at the cinema screen, to the intense embarrassment of my husband: "So, friggin' charge me for it!")
Part of the reason the newbies didn't charge anything for what they uploaded to the Internet for our delectation was that most of the content was, in fact, stolen, so it didn't cost them anything to produce, and it cost them almost nothing to deliver, either (which was precisely the point that the dinosaurs were refusing to get). Another reason was that they were young, it was cool, they didn't need to make much money, and, besides, now you could charge $15,000 a day to go around the country telling the Dead White Executives, who were just beginning to lower their trembling bed sheets and peer back into the gloom of the future of communication, that they needed to get smart, Daddy-O, and stop charging for content. Because this was as much of a mental mind-flip as the mere idea that you could turn on a thingy on your desk and be instantly assailed by text and images from all over the world, the dinosaurs bought it.
Crucially, however, it took a while. Zolli wasn't really saying anything wrong, in theory. But, by the time these lumbering alligators, who'd grown fat and lazy on the fact that newspapers used to be a license to print money, realized there was a fabulous new way to deliver information at virtually no cost, they'd already lost their audiences, so the advertising-only revenue idea no longer stood up. Those advertising dollars were now going to the zippy new contenders - blogs, and Google, and the million little pieces into which the news delivery business had fragmented.
Something else happened around this time that made it all a lot worse. For some reason I'm not equipped to explain, just as they became less economically viable than they'd been in a hundred years, conventional newspapers and magazines became attractive as investment vehicles for companies and people who were not in the information business. There was, it's true, a wild idea in circulation at the time that adding a ".com" to a traditional media company's name would add a similar number of zeros to revenue. A lot of publications changed hands, and started being run by folks who decided their main loyalty was to shareholder value (with themselves as major shareholders, of course) rather than readers. They saw lots of fat, and began whittling costs to the quick. Honestly, I can't entirely blame them. There's a certain amount of lassitude required in a newsroom, so that you can instantly put three reporters on a hot, breaking story; or pay someone to sift through the Governor's travel records for six months. Add to that the fact that the lumbering alligators who waited around to be fed all day weren't strictly limited to the board room, and there was a surprising amount of down-time on view. However, imperfect as it was, that was the nature of the beast.
These brave new corporate raiders believed, correctly, that no-one would notice at first how plain flimsy their newspaper had become. Like I say, you don't quiz your newsstand seller when you buy a newspaper: "Say, how many guys they got covering City Hall these days?" And, even if you did begin to poke into such matters, it's not as if, any more, there's another newspaper in your town with more gumshoes down at City Hall.
The new Masters of the Media calculated that, by the time readers woke up to the poorer content and started complaining (I'm sure this is going to happen any day now. I really am. I really hope so.), the media company would have been sold at a vast profit, or leveraged to death, and the guys who made all the disastrous cuts long gone.
Meanwhile, without economies of scale in news gathering, despite the vast number of news and information sites on the Web, the actual pool of original sources from which that news and information came shrank faster than the Aral Sea. A lot of people stopped paying money for news, so that revenue began to disappear. The rest of it - the money that came from the remaining paying readers, and from the advertisers - was dispersed among a dizzying number of Web and conventional news providers. Suddenly, almost no-one could afford a Moscow correspondent, or a full-time Arabic speaker to translate for a reporter who actually wanted to cover the situation in Iraq from outside the Green Zone.
The result is that we have, firstly, a whole generation of young people who answered the call to investigative journalism and, if lucky, are detailed to see if they can't dig up something embarrassing about Miley Cyrus, because that's the information from which a quick buck can be made - about the only currency with weight in today's media business. Further, the generation of journalists who preceded them now face, in middle-age, with families and mortgages to worry about, eternal unemployment. Those who do manage to get work writing for a paper or magazine are usually paid rubbish for it, because the great old media corporations are still clinging to the idea that, if you are blessed by having your photo spread published in The New York Times, say, you will get lots of lucrative work elsewhere on the back of it. But elsewhere is now nowhere, or it has even less money to pay you than The Times does. In other words, journalism doesn't pay. It never paid well, but at least it constituted a profession, not a hobby, which is what it is for me now, I'm sad to say.
Of course, the other, more widely troubling result, is that we have execrable news services in the West today - credulous, sloppy, lazily researched, and often just plain wrong. I'm not the first to point out that inaccurate news reporting can be fatal.
There is hope, however. New technology promises to patch and mend where the old-new technology slashed and burned. Fresh formats, such as Kindle and the iPad tablet, make it possible for new locks to be put on content and, it seems, media companies are braced for the backlash against charging people for information they got used to having for free. Cable TV channels such as HBO and Showtime, also, have proven you can charge a self-selecting audience enough to fund the making of high-quality content.
But HBO and Showtime don't report news, and the companies that do are either too flimsy to rely upon, or are the burned-out hulks of former behemoths. It will take a long time to build up the massive international infrastructure of reliable news gathering again. At best, we will look back on the 00s as the Decade That Information Integrity Forgot.



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