Digital media reaches a 'tipping point'

Digital media consumption has reached a tipping point; more average consumers are discovering all sorts of cool ways to get their media fix. And with radio’s final bastion – the car – quickly being penetrated by Internet radio and devices that make it easy to consume, traditional radio could have an uphill battle in 2011.

Bridge Ratings will soon publish its revenue projections for 2011 and the forecast is not as rosy as 2010.

2009 revenue was down 18%.

2010 traditional radio revenue will be up 4%.

2011 revenue will be down 2%.

via Navigate the Future

I just bought a new car stereo a few months ago. I can hook up an iPod or iPhone no problem. Or any kind of USB memory device with audio on it. HD Radio was an expensive add-on option. Satellite radio was as well (not to mention the subscription fee).

So far, wireless data plans for cars or other non-phone mobile use still relatively rare, expensive and don’t really travel all that well due to variable coverage.

But give it 5 years. I’ll buy a new media and data center for the car by then, I’m sure of it.

Closed vs. Open: Why public media struggles with new media

Public broadcasting has always had trouble engaging in the new media world. Now NYU professor Jay Rosen has come up with an explanation that sheds light on media culture problems I’ve seen and experienced.

In a talk at the World Bank earlier this month, he offered “Rosen’s New Media Maxims,” a set of four rules or observations about the media world in which we now live. And the second maxim was particularly illuminating for me:

Open systems don’t work like closed systems; if you expect them to you’ll get nothing but misery and failure

In the case of public media, the “closed” system represents the old way of doing things: broadcasting from a single control point to a passive mass audience and allowing for virtually no feedback or participation. Or when there is a feedback channel, it’s narrow and tightly controlled. While there are regulatory reasons for controlling broadcast signals in this way, the notion of “we broadcast and you watch” pretty much permeates the culture I’ve experienced.

Online media function differently, however, because by their very nature, they’re two-way or multi-way systems. Top-down still works online, but that misses the point and the power of a networked media system. In an online world, media and conversations flow top to bottom, left to right and back again.

In moving online, most of the stations I’ve seen have done so either in a broadcast fashion or they’ve done tiny projects off to the side that don’t threaten the old system (and consequently can’t lead the company in a new direction). In many ways this makes sense — the money is still coming from broadcast-based memberships and advertising, plus the CPB is, well… the CPB and can’t put too much effort toward non-broadcast service.

Given the sturm and drang I’ve watched (and participated in) Rosen’s open/closed maxim stood out as exceptionally true. In this video excerpt, he makes a full explanation then goes into a lengthy answer to an audience question of how to bring openness to a company that’s always been closed:

http://vimeo.com/moogaloop.swf?clip_id=11972820&server=vimeo.com&show_title=0&show_byline=0&show_portrait=0&color=ff9933&fullscreen=1

Philosophical Differences

So it’s not a technological difference. It’s not a financial difference. Fundamentally, closed and open systems are philosophically different, possibly opposed. One embraces community, drawing in participation and “hosting” conversation and engagement. The other treats the public as a media receiver. Sure, there are some middle grounds here, but this is a big difference that has powered, silently, a lot of conversations in which I’ve participated, without realizing it.

No wonder we struggle with this. No wonder there’s both dismissal of the new as irrelevant to the mission and nevertheless pitched battles over who will control the social network engagements, who gets or shares in the online revenue, and how and when content will or won’t appear online. We’ve been experiencing the “misery and failure” of a closed system trying to adopt an open one, not understanding why it’s not working.

Rosen’s New Media Maxims

In addition to the open vs. closed systems maxim, there are three more Rosen rules, all in this extended excerpt from his talk at the World Bank. Recommended viewing.

http://vimeo.com/moogaloop.swf?clip_id=11972971&server=vimeo.com&show_title=1&show_byline=0&show_portrait=0&color=ff9933&fullscreen=1

The complete talk (more than 1 hour including audience Q&A) is available via YouTube here.

When a PBS journalist attacks

NOTE: Updates added at the bottom of the post.

Late last week the host of a major PBS program took aim, in a pseudo-blog-post, at NYU journalism professor and innovator Jay Rosen because Rosen said he didn’t like that hosts’s program — a weekly talking-heads affair based out of Washington, DC.

I won’t link to the host or their complaint here because they didn’t bother to link to Rosen’s original piece in the Washington Post or his blog or his fascinating Twitter feed. And that host was deliberately ignorant of Rosen’s work, failing to do a shred of research. They didn’t even watch a video of Rosen appearing on PBS a little over a year ago.

But I will link to that insightful Jay Rosen appearance on PBS — with the now-retired Bill Moyers — in which he specifically critiqued the problem of Washington insider journalism, including the many insiders that appear on the outraged host’s program every week (I would have embedded the video here, but the video isn’t embeddable without stealing it). I encourage you to watch, despite the length, because Rosen shares a highly nuanced view of Washington journalists, politicians and their mutual interest in preserving status quo power.

In the reaction to Rosen’s appeal to put this particular insider show out to pasture, the host’s post (yeah, I know this is tedious, but I’m making a point) never referred to Rosen by name, never linked to anything he’s done, including the source article that ticked off the host in the first place, never addressed Rosen’s concerns and in fact reinforced his long-standing critique of beltway insider gamesmanship.

Only calling Rosen “the NYU professor” and failing to link to the source piece is an intentional slap in the face from an elder in what Rosen calls the “Church of the Savvy.” Dismissing his argument simply reinforces his point: that this program, the host and its guests are beltway insiders talking shop rather than helping the public hold politicians to account in meaningful, public-service ways. The host’s total mischaracterization of Rosen’s arguments also proves the prediction that beltway insiders reflexively dismiss outsiders, thus retaining their positions.

I defend anybody’s right to comment on the news of the day – whether it is Chris Matthews or Bill O’Reilly or Larry King or Jon Stewart. I even defend the NYU professor, however misguided he might be.

<sarcasm>How generous of you. Thank God you’re standing up for Jay Rosen’s free speech rights! And you know, you’re right… Bill O’Reilly and Jay Rosen are cut from the same cloth, aren’t they?</sarcasm>

In effect, the host played directly into Rosen’s analysis. But worse, the show’s audience has been denied a serious discussion about the mission of such programs. There may be valid reasons for having an insider show, perhaps as part of a larger programming strategy, but the claim that the show “saves marriages” (I’m not making that up — that’s in the reaction post) is utterly unserious and demonstrates the intense contempt this insider has for meaningful media criticism from a serious and even credentialed source.

What to do?

Look, I’m not on the “cancel this show” bandwagon. It makes viewers happy, which helps bring in the bucks. And for a talking head show, it’s a considerable step above what you get on cable channels. But the demonization of Rosen is breathtakingly ignorant and/or deliberately dismissive at a level unbecoming of a PBS-sanctioned “journalism” host.

I don’t think an apology is in order. I think the next show should have Rosen on as a guest. If you’re not a guardian of the Church of the Savvy, you’ve got nothing to fear. Bill Moyers didn’t shy away from this issue, why should you? And hey — this could be the equivalent of Jon Stewart appearing on CNN’s Crossfire.

Be More: Resourceful

[1] Here’s a brief example (video) of how “savviness” cuts off legitimate debate in the professional press:

http://www.youtube.com/v/ms548AkFP5s&hl=en_US&fs=1&rel=0

[2] And here’s a little more on what savviness is, directly from Jay Rosen.

[3] Meanwhile, if you like talking head shows examining national politics, forget the snoozy Friday evening PBS fare and go for something more entertaining and at least a little further outside the beltway. I highly recommend Slate’s Political Gabfest (also entertaining on Facebook), which has only 1 beltway insider (who also has appeared on the aggrieved host’s show). If you must stick to public media sources, go for Left, Right and Center, which has insiders, but at least it’s from California.

[4] And about linking… Why didn’t the host link to Rosen’s original piece at the Washington Post? Because the host was obeying old-media rules, in addition to being dismissive. Rosen explains the rules in this discussion of outbound linking:

http://www.youtube.com/v/RIMB9Kx18hw&hl=en_US&fs=1&rel=0

[5] And if you’ve never seen it, here’s the Jon Stewart appearance on Crossfire that pretty much ended the show. It exposed this extreme Church-of-the-Savvy example for what it was:

http://www.youtube.com/v/aFQFB5YpDZE&hl=en_US&fs=1&rel=0

UPDATE 1: There’s another great Jay Rosen piece, in which he refers to the unnamed PBS program: Audience Atomization Overcome: Why the Internet Weakens the Authority of the Press. And in this piece, he goes on to explain some concepts about how the mainstream press — especially the insiders — defines what ate and aren’t legitimate news and discussion points for consideration in public life.

UPDATE 2: One of my favorite firebrands, Michael Rosenblum, took our subject to task in a seething post that posits our dear host as a member of a doomed noble class.

Media Evolution

Seth Godin on the evolution of every medium, when applied to the television industry:

TV used to be driven by the guys who knew how to run cameras and transmitters. Then it got handed off to the Ernie Kovacs/Rod Serling types. Then the financial operators like ITT and Gulf + Western milked it. And finally it’s just a job.

Yep. TV has become predictable.

Though I wasn’t part of the early days of public broadcasting, every account I’ve heard or read suggests it was a time of remarkable innovation and experimentation. There wasn’t a lot of money, but there was a lot of passion tied to a powerful mission. These days public TV doesn’t do commercial-style media well.  But it also doesn’t do mission-based media well.

There are outstanding examples of great media creation within the pubcasting world, but as a whole we’ve blanded the place up and disconnected it from our communities. Time to rethink the mission and re-energize the work. And it might just have to start with the engineers.

MacBreak Weekly explores NPR/station disintermediation

On each MacBreak Weekly — a podcast focusing on all things Mac (and iPhone / iPod) — the host and guests make “picks of the week” in which they highlight hardware or software from every imaginable corner of the Mac and iPhone universe. Some stuff is small, some stuff is big, some is expensive and some is free. This week one of the guests — Alex Lindsay, a videography and special effects pro — picked the tremendously popular NPR News iPhone app (currently #4 in the free News apps category in the iTunes App Store).

In discussing the NPR News app, host Leo Laporte and Alex lavish praise on NPR itself for doing such a great job meeting the needs of Internet users that want access to NPR News and other public radio content and stations. They also rave about This American Life (currently the #2 podcast in the entire iTunes podcast directory) and the heavily revised NPR.org.

But then things get interesting.

Laporte and Lindsay don’t stop with reviewing the app or praising NPR. Together they demonstrate both tremendous insight and notable ignorance of how public radio is architected in the U.S. Here’s what’s right and what’s wrong in their discussion:

Right

  • The NPR News app, combined with the new NPR.org, is one of the most advanced distribution approaches in use by a major media company today.
  • Livio is offering an Internet-connected radio with built-in NPR branding and features ($200).
  • NPR was afraid to offer fully atomized programming elements via the web in an on-demand fashion for many years due to fears of station backlash, and resisted that through the early days of podcasting, despite prodding from Laporte and others in the tech world.
  • Donations from listeners are still primarily directed toward stations, not NPR itself, and national producers reinforce that notion currently.
  • NPR has done what many media entities have not done: face the future and make significant changes to the way they distribute content, answering the requests of listeners, even if it means stepping on local station toes.
  • NPR produces industry-leading audio programming; it’s the “gold standard” in audio production and other professionals use it as a benchmark for their work.
  • This American Life includes advertising in its podcast (it may be “sponsorship,” but it sounds to listeners like advertising). Laporte also realizes that advertising in a podcast gets around FCC regulations governing nonprofits and broadcast advertising.
  • This disintermediation — content flowing from producers to listeners directly, without local stations — could be “the beginning of the end” for NPR stations across the country.
  • Given the way content is produced and distributed in this new model, there needs to be a “reversal” of how the system works, in that NPR should pay local station reporters for news gathering (this is also listed below in the “wrong” section).

Wrong

  • Alex says the app is “either free or $0.99” — it’s free, no question about it.
  • All Things Considered is not produced by a network other than NPR — it’s not from APM, it’s not from PRI, etc.
  • Lindsay suggests that NPR should be paying local reporters for their reporting. What he doesn’t know is that NPR already does this, it just does it on a pay scale and frequency that’s not sustainable for local journalists.

Given how badly most people understand the public radio system in the U.S., they get a ton of this stuff right. And they instinctively know how the disintermediation game works — Laporte used to work on the defunct cable channel TechTV but today has built his own network of audio (and now video) podcasts and streams, amassing more than $1,000,000 in annual revenues for his 2-4 person multimedia production house. (For the record, he’s also a commercial radio broadcaster.)

“The Reversal”

I was shocked by Alex Lindsay’s suggestion that the economic model on which the network/stations system works should be turned on its head. That’s something I’ve been saying since about 2006, once I realized that the content power rests with NPR, but the radio distribution power and the social relationship power rests with geographically-bound stations.

I’ve been laughed out of more than one conversation when suggesting NPR should pay stations to distribute their content. Or at the very least, NPR should be passing its content to stations for free or for the cost of operating the distribution system (PRSS / ContentDepot).

Today, stations pay anywhere from tens of thousands to millions of dollars annually to NPR for the “privilege” to carry their content (depending on market size and lots of other factors). That’s the bulk of NPR’s income: fees collected from local stations. That’s why you pay your local station and not NPR (although NPR does sell advertising space nationally and they do seek high-dollar gifts from rich donors).

Some think the annual CPB operating grants go straight to NPR and PBS, but they do not. Only tiny bits go to a few specialized programs or services at the networks — the vast majority of CPB’s money goes out to 600 public radio stations and 350 public television stations every year (67% to TV). That model has been in place for decades.

But it’s time we rethink this model. Maybe we don’t need a total reversal of all the flows. But the balance of power has shifted dramatically into the hands of the major national producers at the same time they’ve sucked the life out of most local public media outlets in the country with their incredibly hefty (extortionary?) fees. Money collected locally keeps the lights on and pays the national producers, but it affords precious little local production of any sizable amount or quality.

This has to change. Or we might as well just nationalize the system, a la BBC, and get it over with. Either approach can be made to work, but the current model doesn’t match how the world works in the 21st century.

Listen for Yourself

In any case, check out the conversation to hear these comments and insights from outside the public radio universe. It starts around 1 hour, 20 minutes in the original podcast. Or just listen to the excerpt I’ve clipped here (or click the play button below). The excerpt is about 5 minutes long (MP3).

Advice: Develop a digital media offense, not defense

Great interview with Ken Auletta on topics covered in his forthcoming book.

“More than a few traditional media executives fervently believe Google aims to conquer the world. By obsessing about Google’s ‘evil’ intentions they spend too much time playing defense and not enough time figuring out their own digital offense.”

Hat tip to @matthewfelling for the find.

Complete 'Chaos Scenario' speech from Bob Garfield

God bless Bob Garfield. Though he can sometimes be too clever by half in hosting NPR’s On the Media, his new in-your-face book and speaking tour, The Chaos Scenario, hits a home run.

And he’s done a wildly smart thing by sharing his premise in a semi-lengthy but very listenable speech, billed as perfect for marketing, PR and media folks who are already inside a disruption wave.

Excellent listening and good viewing.

http://vimeo.com/moogaloop.swf?clip_id=6873200&server=vimeo.com&show_title=1&show_byline=0&show_portrait=0&color=00ADEF&fullscreen=1

The Chaos Scenario from Greg Stielstra on Vimeo.

J-Week 2008: Web Extras Toolkit

Welcome Journalism Week 2008 visitors from Anchorage, Alaska! If you’re looking for the “Web Extras Toolkit” handout from Saturday, April 19, 2008, you’ve come to the right place.

And feel free to recommend your own toolkit additions or corrections via the site comment feature.