Annenberg-Oxford Summer Institute: Continuing the Conversation

A couple of years ago, I spoke at the Oxford Internet Institute, and after my talk, the conversation carried on via Strange Attractor and the blogs written by some of the students there. I went back to Oxford today to talk about social media, journalism and broader media trends with the very international group of “scholars and regulators? at the Annenberg-Oxford Summer Institute.

As I did from my talk a few years ago at the OII, I’ll follow up some questions that came after my talk and some questions that came in via Twitter.

Does participatory media make public service media obsolete?

I met Shawn Powers at the Al Jazeera Forum in Doha in May, and he invited me to give a talk at the institute. After my talk, he highlighted what he thought was a contradiction in my presentation, which he thought could be interpreted as supporting James Murdoch’s attack on the BBC. Not to over-simplify his point, but with all of the examples I gave of people creating their own media, Shawn wondered if I was making the point that British society no longer needed a public broadcaster like the BBC.

It never really occurred to me that my presentation could be interpreted like this because four years after I left the BBC, I value public service media even more than when I was working there. Most of the examples I talk about in my presentation (a version is here on SlideShare) are collaborations between professional journalists and members of the public not examples of the public supplanting or replacing journalists.

When I came to London in 2005 to research how BBC News could use blogging, I actually saw the possibility of a public service broadcaster like the BBC deepening its public role by developing stronger relationships with people formerly known as the audience.

James Murdoch’s argument delivered in Edinburgh last year:

We seem to have decided to let independence and plurality wither. To let the BBC throttle the news market, and get bigger to compensate

I see commercial media and public service media combined with emerging participatory media as creating greater plurality, not throttling it. Murdoch’s argument is a rather unsophisticated and transparent attack on the BBC because he knows that most surveys show that when consumers are asked to pay for news online, most of them (74%) would switch to free options, such as the BBC. Only about 5% in the paidcontent.co.uk and Harris survey would pay to continue to use the service. (For a good critique of the Murdochs’ hard paywall that they just erected around The Times and The Sunday Times, see Steve Outing’s look at different commercial strategies.)

Returning to the strategic white paper I wrote for the BBC, I also thought by encouraging media creation by a wider part of the population that it actually would expand civic participation in new ways and possibly reverse trends in the decline in traditional forms of democratic participation such as voting. (Andy Carvin at NPR is demonstrating how social media is public service media can be a powerful combination.)

Maybe in the future, I should start with a statement of principles or values. I assume that my career choices say a lot about my journalistic values. I have worked for two very unique journalism organisations, the publicly-funded BBC and the trust-supported Guardian. It was an honour to work at two places that value journalism as much as the BBC and The Guardian.  I don’t see social media as an argument for ending subsidies to public media in favour of a “pure” market-based media eco-system. Rather, I see my interest in social media as a perfectly logical extension of my passion for the social mission of journalism, a mission to inform and engage people and to empower them as citizens in democratic societies.

Choosing the right tool for the job

Another person at the institute raised the issue of whether I was focusing on the tools rather than the editorial goals. Was I seeing social media as the hammer and every story as a nail?

In reality, I’ve long argued against using a tool for the sake of using a tool. In my original presentation at the BBC, one of my slides was a herd of cattle with a little Photoshopped brand on one of the bulls labelled MSM (mainstream media), complete with the song Rawhide playing in the background. I said that the media was engaging in a lot of herd-like behaviour, rushing off to blog without any clear reason as to why. I used to play a clip of Jon Stewart of the Daily Show sarcastically congratulating MSNBC and their blogging efforts as “giving a voice to the already voiced”. I questioned why the media needed blogs when we already had publishing platforms.

To justify blogging, we had to have clear editorial goals and not just blog because it was the new media flavour of the month. I did see benefits in blogging and using social media. We could engage our audiences directly and take our journalism to where they were instead of relying on them to come our site. We could enhance our journalism by expanding our sources, adding new voices and highlighting expertise in our audience.

Often people saw blogging not as a conversational, engagement focused media but as a means to secure their own column. They didn’t want to write more than once a week. They had no interest in actually responding to comments. Although I didn’t see this as an appropriate use of blogging, usually, they got a blog because I wasn’t in a position to deny them one.

It’s important to understand that social media is only one tool in a journalist’s toolkit. It is powerful, but it is very important to understand when it is appropriate to use social media and when it isn’t.

As someone at Oxford also pointed out, as journalists we need to make sure that we don’t over-interpret opinion on Twitter, Facebook and other social networks as truly representative. I often use social networks and blogging to find expertise and first person experience of an event, not necessarily to canvas for opinion. The same student at Oxford also was concerned that journalists would rely solely on online social networks to source stories or generate story ideas. That’s the mark of either a lazy journalist or one who is so overburdened with work due to staffing cuts that social media becomes an all too easy shortcut. (I understand only too well the time pressures that journalists are under due to the hollowing out of newsrooms.)

Do location-based networks have staying power?

One of the students told me that she had asked a few questions via Twitter while I was talking, and here is one of her questions:

#AnOx10 Kevin Anderson @kevglobal– Social Media for Social Change: great talk today but do u really think Loc-base has staying power?

I’ve been working with location for a couple of years ago, starting with my coverage of the US elections in 2008. I’ve been testing location-based networks like BrightKite and the location features with Twitter since 2008, and I’ve been trying the newer networks such as FourSquare in preparation for a keynote that I’m giving at the SpotOn conference in Helsinki in September.

As I started saying in 2005, in this age of information-overload, two things are key to success: Relationship and relevance. Social media allows news organisations to much more directly build and maintain their relationships with both members of the public who simply want to consume their content and also with people who want to collaborate or contribute to news coverage. In a world with so many information choices, relevance is extremely valuable. This weekend, I spoke to the Gates Scholars at Cambridge, and many of the questions to the panel that I was on were about finding and filtering the vast ocean of information available. To me location is one filter for relevance.

There are two ways to interpret this question: Will the current generation of location-based networks have staying power? Will location itself have staying power?

In using FourSquare, I actually find the game element rather simplistic. Without a native app on my Nokia N82 (am considering buying Gravity, but its £8 is higher than my impulse threshold for buying a mobile app), the friction is too high for me. I am too aware that FourSquare is trying to trick me into surfacing my location. For Google’s Latitude, I set it and forget it, and I see my friends on my Google Map. That service hasn’t hit a critical mass of users in my offline social networks to be all that useful.

However, in convincing people to reveal their location, FourSquare is already beginning to partner with media and other companies to sell other location-based services. Frankly, I don’t need the psychological trickery of points and mayor-ships to get me to check-in, if I get a useful service from revealing my location.

That’s where I see location being interesting, not as an element of games like Gowalla or FourSquare, but as a fundamental enabling technology like RSS. Very few people use RSS directly in standalone readers as I do, but many more people use RSS without even knowing it. Location will be one of those underlying, enabling technologies.

The big difference between RSS and location is the issue of privacy and security connected to revealing one’s location. Lots of people follow me on Twitter who I don’t know. I have a category of contacts on Facebook “People I don’t know”. I am not going to let people I don’t know in the real world know where I am in the real world. I’m working through whether I want to be selective in my contacts on FourSquare or selective in checking in.

Location is going to be a powerful feature in new services. That has staying power. Part of me thinks that services like Gowalla and FourSquare are very first generation at this point. They have a certain Friendster feel about them. However, FourSquare is evolving very quickly, and its very clear business model means that it will have the space to experiment.

Those are the questions that I can think of off the top of my head. If people have more, leave a comment. I’ll try to answer them before Suw and I start our summer break on Thursday.

Battle for the Living Room: Apple TV shifting to app strategy?

The living room (lounge for UK readers) is one of the most interesting tech spaces right now, and it’s got nothing to do with 3-D TV. (Just for the record, I’ve been referring to this as the Battle for the Living Room for a while now, lest anyone think I’m just ripping off Mashable headlines.) The blurring of the lines between internet video and broadcast television and between computers and traditional televisions is bringing consumer electronics companies and computer companies into a new competitive space.

Nick Bilton at the New York Times’ Bits Blog looks at how Apple could be looking to re-invent its rather sleepy Apple TV line. One of the big changes is that a new Apple TV could be based on the iOS that powers Apple’s iPhone and iPad. Why is this important?

If Apple does use the iOS software, it would allow people to download applications like the Netflix app, which allows streaming movies and TV shows; ABC’s TV player; or Hulu’s latest video streaming application.

This space is getting very crowded. As both Mashable and Nick pointed out, Google and Sony are going to launch Google TV. It will be based on its Android operating system, and an Android marketplace for Google TV will launch in early 2011.

Alt media centre software maker Boxee has its own apps and has launched its own hardware, the first Boxee box is coming from D-Link. (It was supposed to be out in the second quarter of this year, but it has now been delayed until November.)

Here in the UK, the BBC has won approval to proceed with its own project to bring its iPlayer catch-up service to the living room with Project Canvas. What is Project Canvas? From a story on the BBC News website:

Project Canvas is a partnership between the BBC, ITV, BT, Five, Channel 4 and TalkTalk to develop a so-called Internet Protocol Television standard.

The technology will be built into a number of set-top boxes. However, Canvas is UK-only, and as Robert Andrews at paidContent points out, there is a pan-European standard that has beaten Canvas to market: HbbTV.

Of course, hyper-competitive also leaves the potential for consumer confusion, and this looks like it might make the VHS v Beta battle look like minor scrap. Right now, we’re in the gold rush period, with a mad dash by a lot of major players to dominate this space. It’s very early days, and a lot of the products are little more than announcements. What is very interesting is that we’ve got a lot of major companies coming from sectors that previously didn’t overlap that much apart from some of the major Japanese players. They will not back down without a fight. It will be very interesting to see what our living rooms look like in 2015.

links for 2010-07-03

  • Kevin: The Guardian (where I worked from September 2006 to March 2010) has launched a WordPress plug-in allowing people to take full feeds of their content for free as long as they agree to display Guardian advertising. That's an extension of ad networks, and I'm not entirely sure that there is solid evidence that this will add significant revenue, although much of the data we have must be understood in the context of the recession. I do see some interesting possibilities with respect to building a blogging network. Mathew Ingram explores that well in this article.

Honesty in the age of the paywall

After months of discussion and speculation, The Times and The Sunday Times have disappeared behind a paywall or have asked their readers to pay for the journalism that they value, depending on which side of an almost religious divide you fall on. Like a lot of commentary, I find the punditry and posturing around paywalls uninformed, over-simplistic and, frequently, disingenuous.

It is often said that people paid for journalism in print so they should pay for journalism online. If ‘they’ value journalism, they should pay for it.

No. As many people have pointed out, the cover price of a newspaper really just paid for the high capital costs of printing and distributing a newspaper. To put it bluntly: People paid for the platform, not for the content.

As the OECD said in its recent survey of the newspaper industry in 30 countries:

On the cost side, costs unrelated to editorial work such as production, maintenance, administration, promotion and advertising, and distribution dominate newspaper costs. These large fixed costs make newspaper organisations more vulnerable to the downturns and less agile in reacting to the online news environment.

For every newspaper journalist who moans about how much money their publication spends on running their website, I would ask them if they know how much the outlay is for printing the newspaper. Business Insider calculated that for the cost of printing and distribution the New York Times was twice the cost of sending every single subscriber Amazon’s Kindle e-reader.

Google’s chief economist Hal Varian looked at the US industry and found that in terms of core costs, only 14% of costs as a percentage of revenue went to pay for editorial. Production costs were 52% of newspaper costs by revenue. (Varian has sourced all of his statistics from the US Statistical Abstract, the Newspaper Association of America, the Pew Foundation and academic sources.)

Newspaper revenue and the great digital divide

However, here lies the conundrum for newspapers, which commenters point out on Business Insider. For most newspapers, the printed newspaper brings in roughly 80% of their revenue. With the current revenue mix, shutting off the presses is simply not an option without dramatically cutting the editorial staff. One example of this is the Seattle-Post Intelligencer, which went online only in 2009. Hearst laid off 160 employees and retained 20 “news gatherers”. It’s not necessarily a recipe for success, with traffic declining by 20% after the shift.

Digital must and can make up more of the revenue mix at newspapers. In its report, the OECD found that “online advertising only accounted for around four per cent of total newspaper revenues in 2009, and fell strongly in 2009”. However, and this is key, the report said:

In general, the online revenues of newspapers are miniscule in comparison to total revenues and online revenues of other digital content industries.

Many will say that it’s not possible to make enough money online to replace the revenue that used to flow to print. We have traded dollars in print for pennies online, they say. This is not an iron-clad law of digital content. Yes, digital margins are lower, but many content companies make money online.

In a recent Folio profile of Justin Smith’s turnaround of The Atlantic. Smith pushed for a digital first strategy, which to many in the newspaper industry probably sounds like heresy in 2010. The simple rebuttal to that would be Smith’s record of success. The Atlantic had seen declining circulation and revenue since the 1960s. In 2010, they project a turn to profit, with digital representing 39% of their revenue mix.

Innovating on the commercial side

The problem with newspapers’ digital strategies has been that they have largely been content strategies without effective commercial strategies. For too long at too many publications, digital advertising has simply been a sweetener bundled in with the print ad sales. For too long, we have not done enough to know our audiences online, understand their needs and adjust our strategies accordingly.

Those who have succeeded online often have innovated in terms of commercial models as much as they have in content creation. Google’s main revenue engine is advertising, serving up ads to people based on what they are searching for. Without that commercial innovation, Google would not be the billion-dollar company it is today if it’s business model was based solely on undifferentiated ads supporting a search service.

Indeed, I agree with this post on ExchangeWire that the publications that will benefit the most in the future “will be able to leverage that audience to generate more revenue from targeted ads or data trading” and goes on to say:

But if they are to have a commercial future, pubs will need to be become absolutely obsessed about their data and how it can be best used to unlock new revenue.

We’ll have to re-think print and digital and the revenue streams that support journalism on those platforms. We’ll need to re-think advertising and have commercial strategies that reflect differences in audiences and in editorial approaches.

Oversimplifying an issue is something that media excels at, and now, its lack of sophistication in dealing with issues is hitting closer to home. This is not simply an issue of free versus paid, not simply an issue of jettisoning freeloaders and extracting value from those who value journalism enough to pay for it. Creating such false dichotomies makes a good column in which complex issues are transformed into black and white choices for easy consumption, but simple analyses often lead to simple and simply ineffectual solutions.

Newspapers must end their dependence on the revenue from print or face continuing decline leading for many to total collapse. The industry has been having this civil war over paid versus free. Surely, the argument should be profitable versus unsustainable? We didn’t need Murdoch to build his paywall to prove a point, we already have examples of newspapers and magazines realising that they are in the news business not just the paper business.

For those labouring in the digital side of the business, once you’re making the majority of the revenue, you’ll not just have a seat at the table, in many cases, you’ll be at the head of it. It’s achievable. It’s necessary. There is no time to waste. The future of journalism (as opposed to the future of newspapers) depends on it.

links for 2010-07-01

Chart: Who Participates And What People Are Doing Online

Kevin: An interesting chart based on Forrester Research that looks at online behaviours across age groups in the US. One thing that is very interesting is the relatively small group of "Collectors", those who use RSS and tag content to gather information. Even amongst the very active Gen Y group (22-26), the highest group of collectors is 18%.