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May 31 2013

14:08

This Week in Review: Debating journalists’ role in DOJ seizures, and Facebook tackles hate speech

james-rosen-fox-news

Blame for both the DOJ and journalists: The story of the U.S. Department of Justice’s seizure of news organizations’ phone and email records moved into “who knew what and when” stage, especially regarding the case of Fox News reporter James Rosen. Fox didn’t know Rosen’s phone records and emails had been taken until it became public last week, but The Wall Street Journal reported this week that its parent company, News Corp., was notified by the DOJ in 2010 but didn’t tell Fox.

News Corp. issued some mixed signals in response, initially saying it had no record of notification from the DOJ but eventually conceding that it didn’t dispute the DOJ’s claim that notification was sent. The New Yorker’s Ryan Lizza put forward a theory as to why it’s in News Corp.’s interest to be more deferential to the Obama administration DOJ, but in Fox News’ interest to be more antagonistic. However, The Atlantic Wire’s Elspeth Reeve noted that Fox News doesn’t have a very good track record on advocating for journalists’ freedom in these cases.

The metastasizing issue — coupled with the DOJ’s seizure of what the Associated Press claims is “thousands and thousands” of its phone records — has led Attorney General Eric Holder to plan a meeting with the top representatives of several major news organizations to hash out guidelines for DOJ intrusion. Several news organizations, including The New York Times and AP, announced, however, that they wouldn’t attend the meeting because it’s set to be off the record. The Daily Beast’s Daniel Klaidman wrote a thorough piece on Holder’s regrets in these cases, saying that it’s not part of the progressive image in which he views himself, and Salon’s Alex Pareene explained why Holder’s likely to keep his job despite the outcry.

In a pair of stories, The New York Times reported on the remarkable scale of many of the Obama administration’s leak inquiries and journalists’ charges that such efforts are creating a chilling effect on investigative journalism on the federal government. Glenn Greenwald of The Guardian expressed his dismay at journalists’ lack of action against the administration’s actions: In the current climate, he said, “it’s very difficult to imagine the US press corps taking any meaningful steps to push back against these attacks. And as long as that’s true, it’s very hard to see why the Obama administration would possibly stop doing it.”

At the same time, several others argued that the press’s self-defense reaction is a bit too knee-jerk in this case. Slate’s Fred Kaplan and The Washington Post’s Walter Pincus both argued that Rosen’s source was not a whistleblower exposing corruption but someone simply breaking the law and revealing harmful information. And Reuters’ Jack Shafer contended that Obama has not declared war on the press, as his crusade against leaks has been much more on the supply side than the demand side.

Still others, including Peter Sterne of the New York Observer and Matthew Cooper of the National Journal, were concerned that the proposed shield law wouldn’t do enough to protect journalists. Kevin Drum of Mother Jones tried to find a middle way between their concern for journalists and the objections of those such as Pincus.

Facebook rape ad

Facebook, hate speech, and censorship: Yet another debate over Facebook’s control over its users’ content simmered this week, though it was a bit different from the privacy flaps of the past. A coalition of feminist groups called Women, Action, and the Media wrote an open letter to Facebook last week urging it to remove content that trivializes or glorifies violence against women, noting that Facebook already moderates what it considers hate speech and pornographic content.

The groups also campaigned to Facebook’s advertisers, succeeding in getting several of them to pull their advertising until Facebook took some action. Facebook ultimately responded by posting a statement saying it hadn’t policed gender-related hate speech as well as it should have and vowing to take several steps to more closely moderate such content. The New York Times has a good, quick summary tying together the advertiser campaign and Facebook’s response.

While Valleywag’s Sam Biddle argued that all Facebook did was try to placate those protesting rather than commit to any real action, while Forbes’ Kashmir Hill and Reuters’ Jack Shafer noted that Facebook probably didn’t do this out of any morally consistent concern over content, but simply because of advertiser pressure. Hill concluded that “the procedure appears to be that they will draw the line when advertisers start complaining to them,” and Shafer argued that Facebook has only pushed this discourse underground, further away from the voices of reason and shame.

And while everyone seemed to agree that Facebook’s well within its rights to police speech on its own platform (and that it’s clamping down on a particularly heinous form of speech in this case), they also wondered about the precedent. Mathew Ingram of GigaOM wondered about the slippery slope of what Facebook considers hate speech.

newsweek feature

Newsweek on the block (again): Variety reported that IAC is attempting to sell Newsweek, a month after its chairman, Barry Diller, called his purchase of the magazine a “mistake.” IAC shut down Newsweek’s print edition at the end of 2012, turning it into a web-only publication. As Variety noted, most every indicator at Newsweek — subscriptions, traffic, cash flow — is trending downward.

Newsweek confirmed the attempted sale with an internal memo, saying that Newsweek is drawing resources away from its sister site, The Daily Beast. Forbes’ Jeff Bercovici offered a more detailed explanation: Diller bought Newsweek thinking he needed a print publication to supplement its digital ad base, but since it’s failed at that, it’s become a mere distraction (and drag on the bottom line). Gawker’s Hamilton Nolan urged prospective buyers to stay away, though Mathew Ingram of paidContent offered some tips for its new owner: drop the paywall, aggregate, go deep on particular topics, develop a strong voice, and embrace mobile.

Reading roundup: Despite the quiet week overall, there were several smaller stories to watch:

— Rob Fishman of BuzzFeed wrote a thoughtful piece questioning whether the social media editor might be an endangered species at news organizations, as engagement with social media becomes a deeper part of each journalists’ work and routines. Reuters’ Anthony De Rosa (more on him in a bit) said social media editors are more important than ever, and Digital First’s Mandy Jenkins countered that many news organizations (especially smaller ones) still have a need for someone dedicated to newsroom-wide social media integration and gave some useful advice about how to do it. Elsewhere in social media, Twitter said it wants to partner with media companies rather than become one of them, and Jeswin and Jesse Koepke talked on Medium about how undo Facebook’s massification of online social interaction.

— One of the news industry’s most prominent social media editors, Anthony De Rosa, announced he’s leaving Reuters to join Circa, the startup that summarizes top news stories by breaking them down into “atomic units.” PaidContent’s Mathew Ingram explained what Circa’s up to, and Fast Company’s Anjali Mullany published a Q&A with De Rosa about his plans there.

— A few News Corp. pieces: It announced it will officially split into a publishing company (called News Corp.) and an entertainment company (21st Century Fox) on June 28. It introduced its retooled News Corp. logo, and the new News Corp.’s head, Robert Thomson, declared that it would have “relentless” cuts in store after the split.

— BuzzFeed announced a new YouTube channel featuring video through a partnership with CNN. The Wall Street Journal explained what’s behind both companies’ move deeper into online video.

— Finally, a couple of smart pieces on the native advertising phenomenon: CUNY’s Jeff Jarvis made the case against news orgs getting into native advertising, and Publish2′s Scott Karp laid out some of the difficulties of making native advertising scale.

August 15 2012

20:28

The newsonomics of breakthrough digital TV, from Aereo to Dyle and MundoFox to Google Fiber

In 1998, when Rupert Murdoch’s News Corp. bought the Los Angeles Dodgers, the storied franchise was worth $380 million. News Corp. sold the team in 2003 for $430 million. After winning the ability to negotiate a new multi-billion sports TV contract this fall, they sold earlier this year for $2 billion, blowing the lid off sports property values.

In 1994, the San Diego Padres were worth $80 million. After recently signing a 20-year deal with Fox Sports for $1.2 billion, they sold (pending league approval) for $800 million.

Meanwhile, in 2000, the Los Angeles Times was worth at least $1.5 billion when it was sold as part of Times Mirror to Tribune Company. Today, as it is newly readied for market out of the Tribune bankruptcy, it would go for something less than $250 million. The San Diego Union-Tribune, once valued near a billion dollars, sold for about $35 million in 2009 and about $110 million in 2011.

It’s a reversal of fortune: Newspaper franchises that once outvalued baseball teams by 3-1 or 5-1 or 10-1 now see the inverse of that ratio. Why?

Two letters: TV.

Those numbers tell us a lot about the continuing power of television, in worth, in value creation, and in the news business itself. If we look just at recent events in the ongoing transformation of broadcast and cable to digital, we now see multiple breakthroughs on their path to digital. They give us indications of what the news business, video and text, will look like in the coming years. While we can argue endlessly about the relative virtues and vices of print and TV news, we must acknowledge the relative ascendance of TV and think about what that means for the news business overall.

TV’s revenues are holding up far better than newspaper companies’, and TV is better positioned to survive the great digital disruption.

TV has continued to have great audience. Nearly three in four Americans tune in to local TV news at least weekly, surpassing newspaper penetration, even as Pew Research points out they mainly do it for three topics: breaking news, weather, and traffic. Further, it retains great ad strength — 42 percent of national ad spending, matching the actual number of minutes Americans spend with the medium and making it the only medium still ahead of digital spending as digital has surpassed print (newspapers + magazines this year, both in the U.S. and globally). Yes, TV remains a gorilla. While Netflix won headlines when it announced it had streamed one billion hours of TV and movies in a single month, that huge number compared to about 43 billion hours of U.S. TV consumption, according to Nielsen’s 4Q 2011 Cross-Platform report.

In a nutshell, that’s the difference between TV and video, circa 2012. Video is the next wave — incorporating TV perhaps, but still the very young kid on the block.

Today, TV is no longer a box. Sure, even with all the Rokus, Boxees, and Apple TVs, it seems like TV isn’t yet an out-of-the-box experience. But with Hulu, Netflix, and Comcast’s Xfinity, it’s emerging quickly, escaping our fixed idea of what it once was — the boob tube in the living room. If it’s not just a box anymore, it’s a platform. From that platform, we see both the disruptors and the incumbents doubling down their bets. As in most things digital, few of these launches will be huge winners — but some will drive big breakthroughs. Some of the iconic legacy companies we’ve long known will be absorbed in the woodwork as new brands supplant them. Consider the spate of recent innovation, as we quickly assess the newsonomics going forward:

  • NBC, bashed up and down Twitter, nonetheless proved out a new business model with its multi-platform approach to Olympics coverage. Whatever you think of the tape delays or the suspended reality of Bob Costas’ gaze, NBC made the economics work, surprising itself and others. Its live streaming has ratified the development of cable- and satellite-authenticated, all-access digital delivery. That reinforces cable/satellite value. Further, it whetted prime-time viewing appetites, boosting ratings and earning NBC more ad revenue than it had projected. That’s icing on the cake for NBC, which, under Comcast ownership, has rocketed forward in digital strategy. The network has made a number of moves to transform itself into a global, video-forward, digital news company, joining the Digital Dozen global news pack. Recently, it bought out Microsoft’s share of msnbc.com, a leading Internet news portal. It immediately rechristened it NBCNews.com. In short order, it appointed Patricia Fili-Krushel as the new head of NBCUniversal News Group, an entity made up of NBC News, CNBC, MSNBC, and the Weather Channel. A former president of ABC, with 10 years of experience at Time Warner, she heads a growing news operation. Earlier this year, NBC combined its sports properties into a unified NBC Sports Group, merging NBC’s broadcast sports unit and Comcast’s regional sports networks. NBC is growing out of its digital adolescence. (See “One year after she was hired, Vivian Schiller’s ‘wild ride’ at NBC is just beginning.”)
  • Aereo, the TV startup funded by media magnate Barry Diller, is expanding its footprint from its current New York City base, and starting to offer multiple promotional deals. Diller’s in-your-face challenge to over-the-air broadcasters (CBS, NBC, Fox, ABC, CW, PBS) takes their signals and delivers that programming via the Internet. It charges consumers $12 a month, or as little as a dollar a day. They can then watch those TV stations on up to five devices; in addition, they can deliver these signals to a TV via Apple TV or Roku. Aereo also offers DVR capability, with 40 hours of storage. It’s classic disruption, with Aereo upping the pressure on the cable bundle and messing with the “retrans” fees that broadcasters get from cable companies to run their programming. Is it really legal, as a court recently found? It may be as legal as Google presenting snippets from every publisher and directory provider.
  • Local broadcasters — representing a broad swath of ownership groups organized in a newer company called Pearl — are bringing local TV to our mobile devices themselves. Just a week ago, Metro PCS started selling a Samsung Galaxy S phone with a TV receiver chip in 12 markets. That’s just the first push of Mobile Content Ventures, a collection of Pearl, NBC, Fox, and others. Expect mobile TV, marketed as Dyle, to be available for other phones and tablets, either with built-in chips or after-market accessories — although price points are an issue, with $100-plus premiums likely over the next year. So what does this innovation mean? Simply, that broadcasters are going direct to mobile consumers — no Internet needed, no data charges applying, and maybe providing more consistent video connectivity — with live programming; whatever is on TV at that moment is also on your phone or tablet. Broadcasters just use part of their digital signal to, uh, broadcast to us on our phones. It’s that antenna, and its cost, that’s the issue. Business questions abound. Given the timing of the launch, Dyle seems like an aspiring Aereo killer, and certainly broadcasters would like to see it do that, if further court action doesn’t. More deeply, though, broadcasters want to maintain their direct-to-consumer brand identity as they do a balancing act and try to keep those retrans fees from cable and satellite companies. They don’t want to be left out of the digital party.
  • Social TV pulls up a chair. First it was startup Second Screen, matching tablet ads to real-time TV viewing. Now ConnecTV, partnered with Pearl, is trying to corner the activity as it takes off. Its promise: “synchronization of local news, weather, sports, and entertainment programming along with social polls.” Ah, synchronicity, a Holy Grail of our digital aspirations. Last week, Cory Bergman (a man of at least three full-time digital lives, with MSNBC, Next Door Media, and Lost Remote) sold his Last Remote social-TV site to Mediabistro.
  • Then there’s the disruptor of everything on planet Earth, Google. The company recently announced it is putting another $200 million into YouTube Channels, building on its initial $150 million investment. The move emphasizes how quickly YouTube is growing beyond its homegrown, user-generated roots. Now partnering with dozens of prime video producers, creating more than 100 new channels, it is trying to establish itself in viewers’ lives as a go-to video aggregation source. Major video producers are still wary of Google getting between them and their customers, both ad and viewer, but many others are signed on. Meanwhile, in Kansas City, Google Fiber TV (TV that’s healthier for you?) launches. It’s a rocket shot at the cable, telco, and satellite incumbents. It’s also a demonstration project: providing more, cheaper. The more: interactive search for TV that combs your DVR and third-party services such as Netflix. (Yes, The Singularity ["The newsonomics of Google ad singularity"] marches on.) Google Fiber TV combines DVR and third-party (Netflix-plus) search. Its DVR holds 500 hours of storage of shows in 1080p and the ability to record eight TV shows simultaneously. Bandwidthpalooza. Google’s goal: Toss a hand grenade among the TV-as-usual business models, and pick up some of the pieces, adding new significant revenue lines.
  • CNN moves to break out of its identity funk, figuring out what that powerful global brand means in this fast-changing digital news world. CNN President Jim Walton recently stepped down, clearly acknowledging that his 10-year run had reached an end. “CNN needs new thinking,” he said in a farewell note. On TV, CNN has been beaten up badly both both Fox News and MSNBC. In 2Q, CNN showed its worst numbers in 20 years, down 35 percent year-over-year. On the web, it’a a top-three news player. But overall, it’s become the Rodney Dangerfield of news entities, getting little respect. Its cable fees — the strength of its revenues — could be challenged by low ratings. Going forward and competing against other global news brands — many of which are transitioning their own businesses to gain far greater digital reader revenue — it is, at this moment, caught betwixt and between. How it brings together a single — and global — digital/TV identity is at the core of its continuing journalistic importance and financial performance.

That’s a short list. We could easily add HuffPo’s streaming initiative and The Wall Street Journal’s wider video embrace. Or Les Moonves’ digital moves at CBS. And Fox’s new MundoFox, Spanish-language TV network, taking on Telemundo and Impremedia. The new network, at birth, offers a strong digital component, working at launch with advertisers along those lines. Let’s note some quick takeaways here, all of which we’ll be talking about in 2013:

  • Note how much you see the names News Corp. and Fox here. While segregating its text assets (and liabilities), News Corp. is investing greatly in the video future.
  • Cable bundling’s longevity is uncertain. There’s a lot of residual power here, but we know how quickly that can fade in legacy media. Yes, the unbundling of cable and satellite has been overestimated by some, as Peter Kafka pointed out recently. Yet, these multiple digital strategies may still push a tipping point. Clearly, legacy TV media, despite their public protestations, sees that potential and is acting in multiple ways to prepare for it.
  • Though broadcasters are making major digital pushes, they start from a lowly digital position. Many broadcasters can count no more than 5 percent of their total revenues coming from digital. That compares to 15-20 percent or more for newspaper companies. While there are other sources of revenue have been more stable than those of newspapers, they need to grow digital revenues quickly to make up for inevitable erosion of older money streams.
  • TV ≠ newspapers. Much of broadcasters’ revenues are made on non-news programming, as much as one-half to two-thirds for most local broadcasters. While learning from TV experience here is useful, given lots of differences, the learnings must be smartly applied. As news consumers and advertisers move increasingly digital, though, that thick line that separate local TV from local newspapers thins by the day.

The all-access, news-anywhere, entertainment-everywhere era has created a new massive business competition. Which brands will be top of mind? Who will consumers pay? How valuable is news itself in this contest?

Comcast, Time Warner, Verizon, AT&T — pipes companies — are in one corner. CNN, NBC, CBS, ABC, Fox, HBO, Showtime, and other known-to-consumer brands in another. Aggregators like Netflix and Hulu over there. Media marketers like Amazon and Apple holding court. Google. The local broadcasters fighting for their place in this digital ring. This new battle of brands, in and around “TV,” is now joined.

November 19 2010

15:00

November 12 2010

21:18

4 Minute Roundup: Newsweek-Daily Beast Merger; Slate Hurting?

news21 small.jpg

4MR is sponsored by Carnegie-Knight News21, an alliance of 12 journalism schools in which top students tell complex stories in inventive ways. See tips for spurring innovation and digital learning at Learn.News21.com.

In this week's 4MR podcast, I discuss the recent merger announcement between Newsweek magazine and online publication The Daily Beast. The deal becoming finalized was first reported by Nick Summers, a former Newsweek reporter now at the New York Observer. I talked with Summers about the challenges Newsweek has faced, and his back-and-forth online with Slate's Jacob Weisberg about the current state of Slate.

Check it out:

4mrbareaudio111210.mp3

>>> Subscribe to 4MR <<<

>>> Subscribe to 4MR via iTunes <<<

Listen to my entire interview with Nick Summers:

summers final.mp3

Background music is "What the World Needs" by the The Ukelele Hipster Kings via PodSafe Music Network.

Here are some links to related sites and stories mentioned in the podcast:

Observer Exclusive - Newsweek and Daily Beast to Merge at NY Observer

New Details Emerge on Newsweek-Beast Merger at NY Observer

Daily Beast, Newsweek to Wed! at Daily Beast

Newsweek, The Daily Beast Combine at Newsweek

Jacob Weisberg Was a Web Pioneer. But He Doesn't Much Care for What Works on the Web Now. Can Slate Recover? at NY Observer

Press Clips - The New York Observer's New Disclosure Problems at the Village Voice

Weisberg - NYO wrong; Slate's going gangbusters in memo at Romenesko

Slate's Traffic Is Gangbusters, Except When It's Not at NY Observer

Also, be sure to vote in our poll about who you think is the winner in the Daily Beast-Newsweek merger:




Who will come out the winner in the Daily Beast-Newsweek merger?customer surveys

Mark Glaser is executive editor of MediaShift and Idea Lab. He also writes the bi-weekly OPA Intelligence Report email newsletter for the Online Publishers Association. He lives in San Francisco with his son Julian. You can follow him on Twitter @mediatwit.

news21 small.jpg

4MR is sponsored by Carnegie-Knight News21, an alliance of 12 journalism schools in which top students tell complex stories in inventive ways. See tips for spurring innovation and digital learning at Learn.News21.com.

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