Archive: Economist

How charging for online content might work

14 August 2009 13:50

Categories: *, Blogging, Current affairs, Economics, Internet, Media, Newspapers, Scotland, Technology

Charged debate

A series of posts

Are newspapers ready to charge for online content?
How charging for online content might work

In my previous article, I argued that the problems that are hitting journalism are more to do with the quality of the content than with the fact that it’s difficult to charge for content these days. “Why pay to read Telegraph Digg-bait when you can read BBC churnalism for free?”, I asked.

I am sure plenty of journalists realise this if they stop to think about the situation. The fact that so many professionals blame bloggers for the industry’s ills says it all. Despite journalists’ qualifications, experience and resources, their entire business is supposedly being dismantled by a bunch of hobbyists who spend the odd hour of their spare time opining on the internet.

A few weeks ago I met a journalist at a party and I engaged him in a conversation about the future of his industry. He told me he hates bloggers (whoops! — I kept schtoom). But he told me that in his view the biggest problem was people scooping him on web forums! If the professionals see online discussion forums as not only competing with them but doing better than them, that surely must make them wonder if the product they are asking people to buy simply is not good enough.

Anyone who thinks that bloggers and the mainstream media are competing is wrong. If they are competing, the media simply isn’t doing its job properly. Let us face facts. For the most part, bloggers don’t have the contacts, the resources or the expertise to do, for instance, a big investigative story.

If the media is worried about amateur bloggers, it is a pretty bad reflection on the professionals. Perhaps to distinguish itself, the media should be focussing on those aspects of content production that bloggers cannot do.

The supply of mediocre content is too high. Too much of the same sort of content is as readily available to news junkies as sea water is to beach-goers. In effect, for the past decade or so newspapers have been driving up to the beach with a tankful of sea water, then pumping their water into the sea. Later they started stretching out their hands like beggars wondering, “why won’t these beach-goers pay us for all this seawater we’re providing them?!”

So what is the answer? In my view, less is more. What newspapers need to do is offer something distinctive and different. They should specialise more and differentiate their content from everyone else’s. They need to offer less, but better, content.

Newspapers should forget about reporting all the same hard news as every other outlet is. It is a crowded marketplace so there is no money to be made there. Instead, they should work on more exclusives, investigative reporting, analysis and features.

Actually, there is a problem with that idea, which is that it won’t save all newspapers as we know them at all. It points to a future where many daily newspapers may wither. But weeklies, monthlies and specialist publications are more likely to thrive. It wouldn’t stop the press from having a difficult period of job losses and paper closures. But it would mean those who could get it right would be able to charge for content quite comfortably.

Evidence suggests that this shift may already be happening. Speaking personally, there is not one daily newspaper that I would be happy to pay for. But up until recently I was perfectly happy to pay for the weekly Economist (and in truth, I only stopped because I didn’t have the time to read it). As for specialist publications, I still like to read the monthly F1 Racing if I get the chance.

It may be the same for other people too. Recent evidence seems to suggest that many specialist publications are doing well at the moment, even amid all the turmoil in the press and the worst recession in living memory. According to Malcolm Coles, 216,000 people are perfectly happy to pay £7.75 per month for an online subscription to Which?.

Yesterday I also read about two major news websites relaunching — with less emphasis on news. On the new LA Times website, Hamilton Nolan at Gawker wrote:

Scroll down from the top of page at the new LAT site and you find: Health, Food, Education, Technology, Sports, Blogs, Columns, Opinion, Photos & Video, Summer Hot List, and “Your Scene, Your Comments.” Did you miss the, say, ‘International news’ section? It is way up at the top in tiny tiny type. Below the top fifth or so of the page, there is no “hard news” at all.

As for the new Newsday website… well, just take a look.

Someone still has to do the worthy news stories though. Maybe that can be better left to agencies or major broadcasters. But maybe a simple reduction in the number of newspapers would suffice. Iain Hepburn recently estimated that as many as 17 major media outlets are all aiming at the same audience in Scotland. We make do without 17 major supermarket chains — five or six different ones satisfy most consumers. So do we need more than five or six major news outlets?

A merger here, a takeover there and even the odd shutdown or two might be a good thing. Fewer outlets can have a higher market share, more resources, more of the best journalists — and they’ll produce a better product as a result. Five or six excellent news sources would be much better than 17 so-so ones, which is more or less what we’ve got at the moment. Surely that is what’s needed to make news a viable business going forward.

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Rebels turning to the Tories

12 July 2008 01:02

Categories: Current affairs, General, Politics, University

Erk. I had a big pile of things I wanted to write about. But a lack of time and a mild bout of blog depression have meant I haven’t been updating. I didn’t realise my last post was as long ago as last Wednesday, but there we go.

Anyway, before I can get motivated enough to write something decent, I thought I’d mention an interesting article I read in last week’s Economist. It touches on a similar topic recently covered on this blog — student apathy.

In addition to the idea that students are politically motivated in general, there is also a stereotype that most of them tend to be left-wing. The statistics in The Economist‘s article then make for very interesting reading.

In 2004–2005 the Liberal Democrats were, perhaps unsurprisingly, the most popular party among students. What’s surprising is the fact that they apparently had the support of over 50% of students! Amazing. Of course, that period saw them at the height of their powers due to their stance on the hugely unpopular Iraq War. Since then, in a reflection of the wider trend, support for the Lib Dems has fallen a fair amount.

That probably correlates a lot with my political views. Back in 2004–2005 I was quite an ardent supporter of the Lib Dems. Now I am more lukewarm.

What is also perhaps surprising is that Labour’s support has not decreased all that much. Even though Labour are limping around, the long-term trend among students is more topsy-turvy and the fall certainly isn’t as dramatic as the Lib Dems’. Nevertheless, fallen they have.

So the Conservatives now apparently have the support of 45% of students. Interesting. The Economist has been having a bit of fun and games with this. “A man who is not a socialist at 20 has no heart, whereas one who is still a socialist at 40 has no head” — so are today’s students heartless?

I suppose one obvious response to this would be to say that Labour are not socialists. But nor are the Conservatives. You would expect a surge in support for the Greens or another far-left party (SSP / Respect / what-have-you). But the Tories?

I think the answer lies more in this:

For today’s young rebels in search of a cause, the Left is the establishment: an 18-year-old starting university this autumn will have been just seven when Labour came to power.

Students are not disproportionately left-wing in my view. If they were, then they aren’t now. I think most people my age are pretty weary of socialism because a basic reading of its history should tell you to be weary of it. In my highly unscientific and no doubt prejudicial straw poll that I have conducted in my head, many of the most left-wing people at university were also the ones who probably had the highest incomes.

Just as for those who grew up in the 1980s the Conservatives were the establishment party not to be trusted, today’s youngsters are growing up with a deep, deep resentment towards the Labour party. These days it is almost certainly cooler to be a Conservative supporter than a Labour supporter. And given Labour’s record in government, who can blame students for thinking so?

As a side-effect, if it finally means the world will finally be rid of those deeply hypocritical Che Guevara t-shirts, then thank goodness for that!

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Keeping comments under control

12 June 2008 00:49

Categories: Blogging, Current affairs, Internet, Media, Newspapers, Politics, Scotland, Technology

Ideas of Civilisation has written a really interesting post about the state of the Scottish blogosphere compared with the dodgy comments that get posted on The Herald‘s website, Scotsman.com and the like.

The Scottish blogosphere is indeed, by and large, a pretty good place for a debate. Nowadays it is probably dominated a bit too much by SNP supporters, but I think the debate is usually pretty respectful. IoC asks, why does this respectful atmosphere not cross over into the mainstream media comment sites?

The answer is that they are mainstream media comment sites. As I have pointed out before, trolls, flamers and knuckle-draggers are attracted to MSM comment sites like flies on a shit. The blog spEak You’re bRanes, a blog I mention many times, does a good job of compiling the most ridiculous comments posted to MSM outlets.

The thing is that IoC is right when he says that the debate in the Scottish blogosphere is good. But this isn’t peculiar to Scotland. The debate in the blogosphere world-wide is also good. Meanwhile, the phenomenon of extreme comments in MSM websites does not just exist on Scottish websites (although Scotland does have a distinct phenomenon with its ‘cybernats’). It is known to media outlets the world over, and even some big websites such as Digg and YouTube.

So why is there such a difference? After all, the point of blogging is meant to be that it’s really easy to get involved in. So why don’t people with poisonous views pollute the blogosphere so easily?

The answer is that it’s so simple to avoid poisonous people in the blogosphere. Does someone have a terrible blog? That’s okay, because no-one will read it. Knuckle-dragging extremists find that they will reach a far wider audience if they post on a website like Scotsman.com or the BBC.

There is another answer. Even though in theory it is easy to set up a blog, the reality is slightly different. You still have to put in quite a lot of effort. It can be time-consuming and you have to come up with the goods to make sure people read it. If you are not interested in having a genuine discussion, you will soon find that blogging is quite costly. But for those who are willing to put the effort in for there to be a good debate, the pay-off can be good. For this reason, bloggers tend to be more articulate, reasoned and intelligent than your average Have Your Sayer.

Does this mean that we should give up on the idea of having comments on the BBC’s blogs or The Herald‘s political stories? Far from it. All you have to do to improve the nature of the debate is create the right mechanism to ensure that the cream will rise up.

Websites such as Digg and YouTube have implemented a voting mechanism in an attempt to get rid of trolls. You can choose to give a comment a ‘thumbs up’ or a ‘thumbs down’. The BBC’s Have Your Say has a similar voting mechanism. However, this doesn’t work in my view. In fact, if anything, it exacerbates the problem. It just makes the comments section even more of a hotbed of demagoguery — the loudest attention seekers, not the most reasoned and articulate, will grab the most votes.

Some websites are just lucky enough to have a good audience that respects debate. The Economist‘s website is said to be relatively free of HYS-style trolls. That is probably due to the target audience of the publication. I suspect many HYSers aren’t even aware of the existence of The Economist and if they are, they aren’t interested in posting there because it’s not a publication for them.

However, for the more mass-market audiences of the likes of the BBC, The Herald and The Scotsman, it’s too late to do anything about this. They made a decision long ago to appeal to the masses, so its audience will have that demagogic element that will be reflected in the comments.

Another alternative might be to force users to post under their real names. It is generally believed that once people’s cloak of anonymity has been removed, their online debating style becomes more respectful and considered.

On the other hand, many bloggers and commenters have genuine reason to wish to remain anonymous. And, barring the universal adoption of an OpenID-style system, it would be nigh on impossible to police. A decent ‘middle ground’ option might be to place OpenID comments at the top of the thread and hide the anonymous comments towards the bottom of the page.

Another possible solution is simply to make it costly for the ill-informed jokers to take part. For some, it may be an anathema to make people pay to post comments — almost against the culture of the web. But it needn’t be.

There is one big website that is known for having decent comments sections that avoid the numbskullery of sites such as YouTube — MetaFilter. There it costs $5 to post comments. That is a one-time life-long fee. Pay $5 and you can post to your heart’s content. There is also a one-week time lag between signing up and being able to post.

This ensures that only the people who are interested in contributing properly get involved. $5 is quite a small fee for those who really value MetaFilter, but it is enough to deter time-wasting trolls. A one-week time lag also prevents people from just posting a crazy extreme rant in the heat of the moment. Just like blogging, MetaFilter is costly for the time-wasters, but beneficial for those who want to make a genuine contribution.

The solution for the MSM websites if they want to clean out their comment sections is therefore to somehow create a mechanism that makes it costly for extremist ranters to post, but makes it beneficial for those who want to take part in a reasoned debate.

Perhaps a MeFi-style one-off fee or a time lag might do the trick. If you had to pay, say, £5 to open a lifetime account on Scotsman.com to allow you to post, you might just go for it if that £5 was enough to deter the ranting trolls. It could also be a handy (though potentially small) additional source of income for the media outlets.

IoC’s issue isn’t just with the media websites though. It’s also with the Scottish Government’s website. If a government website becomes an outlet for extreme views, that is undoubtedly a problem. The Scottish Government’s “National Conversation” has been accused of being “a chatroom for cybernats“. That was probably always inevitable. After all, a “conversation” about independence initiated by the SNP is bound not to last long or be very meaningful.

Nonetheless, I have to applaud the Scottish Government for going ahead with the project. To have user-generated content on a government website is pretty big stuff if you ask me and it’s probably the right thing to do — engaging the citizens in the policy-making process and all that.

But the contributions have to be meaningful. I’ve not been following the National Conversation very closely. Skimming through it just now, it doesn’t look too bad, but obviously it’s caused concern among some.

Perhaps for user-generated content on government websites there should be an expectation that you do not contribute anonymously. I think that is probably a reasonable expectation for someone who wants to take part in civic society. People who write a letter to their MP or MSP or another figure in public office can’t expect a reply without supplying a name and address. The Government’s e-petition website also requires you to enter a name and address. The authenticity of some of these names is questionable though.

Perhaps future projects like the National Conversation might require people to supply real names and addresses (not publicly viewable of course) in order to participate. This would remove the cloak of anonymity and improve the likelihood of there being a sensible debate. Looking at the National Conversation website, it looks like most (but not all) participants are contributing under their real names anyway. Still, it’s a thought.

3 comments

Extremist literature

14 February 2008 16:07

Categories: Blogging, Current affairs, General, Internet, Media, Newspapers, Personal, Technology, University

Am I the only one who thinks that the logo for The Economist‘s audio edition looks like a bomb made out of Economists?

(NB. Posts will remain at this low standard until around the 25^th. I am currently writing my dissertation, and it is these little things that keep me sane. Yesterday I got really excited when the author of one of the journal articles I was reading was named Orley.)

Update: I happened to notice just then that the 5,000^th legitimate comment on this blog was recently published! Jose takes the honours. No prizes unfortunately!

3 comments

The future of music: pretty boxes

19 January 2008 22:57

Categories: Current affairs, Economics, Entertainment, Internet, Music, Technology

Copyshite

A series of posts

Copyshite
The entertainment industry’s wrong turns
The future of music: gigs and t-shirts
The future of music: pretty boxes

There are only two things in the world that give us absolute total happiness. One is seeing other people fail. The other is unwrapping a newly-bought CD.

–Armando Iannucci

In the wake of all the upheaval that the recorded music industry is facing, a lot of people have been predicting the death of the CD. After all, the very reason why music is cheap or free these days is because they don’t need to be put on a physical object which then has to be transported around the world. Surely digital downloads are the only conceivable future for music distribution.

I don’t like the idea of this. If I was five years younger it would probably make perfect sense to me. Last week’s edition of The Economist tells the story of a focus group that EMI held. It was aimed at understanding yoofs better. At the end of the meeting, the teenagers were invited to take as many free CDs from a pile on a table as they wanted. Not a single person took a CD.

It’s just the latest example of a recorded music industry that has always found it difficult to adapt to new technology. Historically, consumers have gone for the most convenient and cheapest format rather than the technically excellent one. So says Fredric Dannen if you scroll a long way down.

When the long-playing record (LP) format was introduced by Columbia Records back in the late 1940s, the industry as a whole resisted it, and many predicted it would never take off because 78s sounded better. Without question, early LPs did not sound nearly as good as 78s. But given the choice of listening to all of Beethoven’s Ninth Symphony on two sides of one record versus sixteen sides of eight records, the consumer opted for convenience and simplicity (not to mention less shelf space).

…You can always count on the record industry to cling to the past, and to fight innovation.

So does the arrival of MP3 mean the death of the CD? I personally hope not. I love CDs. I am of that generation, probably a small five–ten year window of people who wouldn’t consider vinyl but had no access to file sharing as they grew up. Napster came onto the scene in 2000, when I was 14 — well into my music-consuming life.

I have been collecting CDs since I was nine years old. I haven’t counted, but I must have around 600 CDs. I only bought my first vinyl records a few years ago. I bought them grudgingly, only because they were not available on CD. I reckon today I have 30 vinyl records.

I have only ever bought around a dozen MP3s — again, because they were not readily available on CD or vinyl. (I have downloaded a few dozen more because they weren’t commercially available at all — mainly live bootlegs and demos.) I would consider buying more. But although MP3 is the format du jour, there is a big block in my mind preventing me from buying something that I will never be able to see or touch.

I suppose this makes me a collector. (Yes, my collection is in alphabetical order — or it was until I ran out of space.) Collectors tend to be fans of vinyl though, which makes me an anomaly.

It would be nice to think that the CD will limp on and eventually survive another day in the MP3 era just as vinyl has done in the CD era. I have grown up with CDs and I love them. I’m not an audiophile, so the sound quality issue doesn’t worry me too much. And to be honest, I can’t be bothered with the faff of vinyl.

Whether it is CD or vinyl, there will always be people like me who treasure the physical presence of an album. It’s not just about a collection of notes. It about an event, a happening. It’s the artwork, the packaging. The sleevenotes, the lyrics. The smell of the booklet. It has an aura. When you hold a copy of a good album, you are transported to its space without even having to put it on. Could all of this really die because of the internet?

When Radiohead released In Rainbows, the pricing structure grabbed all of the headlines. But that wasn’t the interesting thing for me. The pay-what-you-want method is just a belated recognition of the fact that people could choose to pay nothing anyway.

The other aspect of the release of In Rainbows interested me much more. I didn’t pay anything for the MP3s. I downloaded them for free when they were released on 10 October. That’s because I got them as part of the £40 “discbox” set.

The discbox is a premium edition of In Rainbows. It comprises a CD of the album, an second CD with eight extra tracks and enhanced content, a 2× vinyl edition of the album, and generally all-round badass packaging.

£40 is the most I have ever paid for an album. I hesitated before I ordered it — but not much. Although I am sort of a collector, I have never been a completist. I am usually happy to have the CD version on its own. But I couldn’t resist the awesomeness of the discbox — despite the fact that I hadn’t even heard the album.

This was largely ignored in the media coverage of the album, but to me it was the most notable aspect of the unconventional release of In Rainbows. When I first posted about In Rainbows, I neglected to even mention the fact that the MP3s were free. I didn’t find it that interesting.

People like me, who love the physical formats, will be continue to be catered for. It is easy to make money out of us. Slap a sticker saying ‘limited edition’ on a record and suddenly demand for it will become price inelastic. Suckers like me will buy premium versions of albums at higher prices than we would otherwise consider. And this will become ever more important for the record companies as physical sales continue to get eaten into by the internet, where profit seeking is impossible.

In Rainbows wasn’t the start of this. Limited edition versions of albums have been around for a very long time. But in an age where it is becoming increasingly difficult to make money out of recorded music, it is becoming more and more prevalent.

When I went shopping for Sigur Rós’s Heima DVD I thought £17 was a bit steep. Then I saw the limited edition version for £25 and bought it.

The deluxe multi-format edition seems to be becoming more common as well. Björk’s latest single, ‘Declare Independence’, is available as a deluxe edition, yours for only £19.99.

Formatted in the same extravagant packaging as the Volta double LP, this contains all conceivable formats of the single: double vinyl, CD and DVD.

Something else that is becoming more and more common is for people to automatically get the MP3 version for free when they order a physical version. For instance, Nonesuch has started doing this. You can choose between standard 128kbps MP3s or maximum quality 320kpbs at no extra cost.

It makes sense to me. Being able to have your entire music collection on a portable device is becoming an expectation these days. Since vinyl is a bit more tricky to get onto your iPod, it would be good to get the MP3s of music that you have already bought automatically for free. Hopefully more record companies will adopt this approach.

A lot of people have wondered aloud if the fact that we can now get music for free from the internet is devaluing music. But it seems to me as though the internet is not only driving the price of music down — it’s also driving the price of CDs and records up.

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