Welcome to Googlewood

Interesting — if inconclusive piece by Richard Siklos about whether Google is a friend or a foe for traditional media companies.

Is Google a media company? The last time I checked, a media company was generally defined as a business that accumulates audiences and sells access to them to marketers.

And Mr. Schmidt said recently: “Ultimately, our goal at Google is to have the strongest advertising network and all the world’s information. That’s part of our mission.” And if it is a media company, it is the world’s biggest, with a market capitalization of $144 billion.

But when I spoke to David Eun, Google’s vice president for content partnerships, he took umbrage with the media designation. He noted that Google did not create or own content — in his mind, part of the definition of a media company. Rather, he said, Google is a technology company: “I would say we’re a conduit connecting our users with content and advertisers.”

The point may be semantic, but it reminded me of the longstanding friction between cable companies and TV broadcasters over whether cable should pay for distributing the free over-the-air signals — or whether cable was doing the broadcasters a favor by putting their signals onto the system through which most people watch television.

Again, Mr. Eun disagreed, noting that Google is not a distributor: it tries to push people to other Web sites and takes immense geek pride in how quickly it does so.

Indeed, a search for “Google” and “friend or foe” took me 0.10 seconds and elicited 271,000 results. It took Mr. Eun not much longer to try to explain to me that Google (a) respects copyrights, (b) gives any content owner a choice of opting in or out of its search results and (c) focuses on ways to help its media partners achieve their goals. “I say firmly: we are friend because we are trying to build your business objectives,” Mr. Eun said.

The future’s already here

The Observer has an edited version of my rant to the Society of Editors Conference in Glasgow…

In any other industry, the discovery that your potential future customers weren’t interested in buying your product would prompt an investigation into whether there was something wrong with the product. But what one hears – still – from the newspaper industry is that there’s something wrong with the customers. And what one finds, on closer examination, is that the industry seems determined either to insult or to ignore them…

The Wikipedia cycle

Fastinating post by LeeAnn Prescott based on Hitwise data about how people access Wikipedia. The chart shows

the steadily increasing market share of visits to Wikipedia. What you’ll notice upon closer examination is that Wikipedia’s traffic is tied to the academic school year. That bump in December 2005? Finals and term paper time. The subsequent dip? Christmas vacation. The larger bump in May 06? Finals again. Another dip in traffic during the summer months, and another surge in September as school starts.

State of the Blogosphere, October, 2006

Hooray! Dave Sifri’s latest State of the Blogosphere is online. Highlights:

  • 57 million blogs
  • 3 million blogs created during third quarter of 2006
  • 100,000 blogs created every day
  • 55% of all blogs are ‘active’ — defined as having been updated at least once in the last three months (doesn’t seem very active to me)
  • The blogosphere is doubling in size approximately every 230 days
  • About 1.3 million postings every day
  • Most popular languages are English (39%), Japanese (33%), Chinese (10%), Spanish (3%), Italian, Russian, Portuguese, French (all equal on 2%). Farsi (1%) has pushed its way into the top ten for the first time.
  • The Wealth of Networks

    Paul Miller has a nice, succinct review in the Financial Times. Sample:

    What Benkler sees is an emerging pattern in the way we use network technologies which he thinks is positive for democracy and innovation, but not without its downsides. He argues that the internet is making obvious an existing form of exchange – social sharing – and taking it from the periphery to the mainstream of the economy. Conventional economics can’t explain why volunteer-generated projects such as Wikipedia or open-source software, which are given away for free, have been so successful. He proposes his own theory of “social production” – “commons-based peer production” – to fill the gap.

    It’s a counterpoint to the received wisdom that creating and exploiting intellectual property (patents and copyright) is the only way to do business in the 21st century. He points out that in 2003 IBM made twice as much money from providing open-source services as it did from intellectual property – despite the fact that between 1999 and 2004 it created more patents than any other US company. Benkler proposes that this is a pattern we will see repeated. The thesis is unsettling for those businesses, particularly entertainment ones, that have relied on controlling distribution of copyrighted material. He says not that they will disappear overnight but that social production is more than a fad. It is no surprise to Benkler that: “We find ourselves in the midst of a battle over the institutional ecology of the digital environment.”

    Brillo Pad rides again!

    Andrew Neil (aka Brillo Pad) gave the Keynote Address to the Society of Editors conference. This picture was taken just as the TV director was switching from a questioner (standing) back to BP.

    His Address was an entertaining farrago of insights, half-truths and thinly-veiled attacks on his enemies. It went like this:

    New media bring challenges… time for a new mindset…an opportunity not a threat…all technological change brings upheaval…much to be positive about… bad news only for red top tabloids… the Guardian has used the web astutely to reinvent the Guardian brand… Sunday Times is selling more copies today than it did under his editorship…the Economist is doing brilliantly… the FT is thriving again, showing what can be done when a newspaper comes to terms with the Net…journalists who are so good at lecturing others about the need to adapt to disruptive change are not very good at learning to live with it themselves…the days of spending the day working on a piece, filing it just before five and heading off to the pub are over…all media organisations must become 24×7 operations…’reach’ is the key to getting a true measure of our proposition… 38% of people’s leisure time now spent online (more than watching TV) but 38% of advertising spend hasn’t followed it — yet: but that will change as advertisers follow the eyeballs…Google now has more ad revenue than ITV… but Google is growing fat on the backs of poor unpaid journalists and their employers … time for a conversation with Google about this matter …need for a new breed of journalist … journalists will become brands in their own right… broadband has transformed the Net into a multimedia channel… there’s a premium on moving-picture ads…. newspapers must get into that… there’s never been a better time to be a journalist… these new journalist-brands “will write blogs because you wouldn’t give them a column, and then they’ll sell the Blog back to you for an inflated price”…

    He finished off with some incomprehensible score-settling about the Scottish Media Group, the Scotsman, the Herald and the unalloyed stupidity of the Scottish political class.

    In questioning, he revealed that he had bought Handbag.com for £300,000 and sold it a short time later for £22 million.

    Update… Roy Greenslade is also at the conference. Here’s his Blog’s take on Brillo Pad.

    Nielsen conference on user-generated media bans blogging

    From Greg Verdino’s Blog.

    Today, I am off to Nielsen BuzzMetrics’ clients-only CGM Summit 2006.  The agenda is cram packed with sessions covering all aspects of Consumer Generated Media (CGM) including an overview of where we are today, why people do this stuff, where CGM is going in the future, and how exactly marketers can leverage and measure this powerful channel.  Ironically, the confirmation email I received for the event includes this warning:

    “Off The Record: the CGM Summit is off the record, so please no blogging, reporting, recording or broadcasting.”

    Hmmm…  So how can you host an event about consumer generated media and not let your consumers, um, generate media?

    So what do we need journalists for?

    Juan Antonio Giner has some admirably sarcastic answers…

    To re-package the same news from the same sources?

    To attend the same boring press conferences?

    To publish today the same news that our readers knew YESTERDAY?

    To produce pages and pages of commodity information with no value added?

    To edit pages and pages of listings that could go directly to our web site?

    To attend long and badly planned news meetings?

    To expend hours and hours in front of our computers?

    To work with not real feed-back from your editors?

    To work with no time to think?

    The real challenge in our industry is not how many people do we need, but to know how to change the rules and traditions of a newsroom management system that does not work anymore.

    First fix the newsroom management system, and then let´s discuss how many people do we need. And then we will not have any problem to keep or find the best talent. Today´s problem is the opposite: newspapers are loosing or not attracting talented people because our newsrooms are not creative places to work, to discuss, and to dream.

    I am not worried about the people that leave (many of them with great early retirement packages) but about the people that stay in our newsrooms to work under the same conditions.

    Amen, brother.

    Thanks to Roy Greenslade for the link.

    980 journalists!!!!!!

    Roy Greenslade on Why cutbacks in US papers may not be all bad

    I admire Howard Kurtz, the Washington Post’s media commentator because his articles are almost always on the button. But I am not so certain about the message in his latest piece. He points to the staff cutbacks at many US papers, citing the redundancy announcements at the Dallas Morning News (19%), the Cleveland Plain Dealer (17%), the Philadelphia Inquirer (15% already, with more to follow), the Washington Post (8%) and the Los Angeles Times (10%). He also notes that TV networks are pruning news staff too. Then he records some of American journalism’s successes in rooting out important stories. You can probably see where this is going. His conclusion? If too many journalists disappear it means “fewer bodies to pore over records at city hall, the statehouse or federal agencies.”

    Well, it does, and it doesn’t. Without wishing to be unduly rude about US journalists, seen from the British perspective, it appears that there are far too many of them being far too unproductive. The LA Times has 980 journalists at present, a huge staff compared to any serious British national paper. Yet we manage to hold our government to account. Ask Tony Blair is he can get away with anything without being scrutinised…

    The implications of Clearchannel’s retreat

    Nice, uncompromising post by Jeff Jarvis…

    It couldn’t happen to a nicer bunch of assholes*. Clear Channel, the radio monster, is looking to sell itself to go private, according to the Times. Why? Because the radio business sucks.

    This is why I have not feared media consolidation. Clear Channel, the poster child for evil media conglomerates, bought up stations and sucked cash out of them but now there’s not much left to suck. Consolidation is the act of a dying industry. Well, broadcast won’t die. But it sure as hell won’t grow…