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Billpapa.org)
Reading the business section of yesterday's New York Times, you couldn't help but notice the juxtaposition of two seemingly different companies, which, at second glance, have more in common that you might think. One is Bloomberg, the financial data juggernaut that has enough cash to aspire to become “the world’s most influential news organization.” The company has placed its bets on the acquisition of the venerable BusinessWeek, trusting that it will broaden its reach into a mainstream business audience. A few pages later, Digital Domain columnist Randall Stross reveals Apple’s pending patent application for a new advertising pop-up technology that forces users of devices and web sites to acknowledge the reception of the commercial message.
What Apple calls “enforcement routine” is basically a radical ad-based model that offers consumers to use Apple’s products and services for free or at a discount if they “watch ads they may not want to watch.” Stross writes: “Its distinctive feature is a design that doesn’t simply invite a user to pay attention to an ad--it also compels attention. The technology can freeze the device until the user clicks a button or answers a test question to demonstrate that he or she has dutifully noticed the commercial message. Because this technology would be embedded in the innermost core of the device, the ads could appear on the screen at any time, no matter what one is doing.” As Stross points out, other brands went down this path before and utterly failed, and he is stunned that Apple, if it is serious about this technology, seems to be willing to risk its reputation of consumer-friendly “cool.”
One story can be read in the context of the other: Bloomberg and Apple not only share a zealously rigid culture and a “walled garden” business model based on selling high-grade packages at a premium price; they are also both media companies. Both have strong communities driven by the Three C’s of Communities--connectivity, content, and context--and both are wondering which of these parameters they can exploit more aggressively without jeopardizing the integrity of the community that is the foundation of their business. Both Apple and Blooomberg create value by heavily relying on network effects within an ecosystem that they tightly control. Both are distributing content to raise demand for their products. And both have a strong brand to extend – and to lose.
With the acquisition of BusinessWeek, Bloomberg’s strategic trajectory is clear: Owning a proprietary technology platform (it sold 300,000 terminals to date), the company is looking for ways to reach more potential buyers (and sell premium services). Apple’s “terminals,” on the other hand, are its iTunes store and its user interfaces, and the recent patent application indicates that the company might explore the exploitation of attention generated through these properties. Bloomberg is buying attention to open up new sources of revenue, Apple might be selling it.
The two brands have one last trait in common: They are not really embracing social media, to put it mildly. Apple, as a company, does not engage, and Bloomberg even discourages its employees to engage. Apple and Bloomberg, in some ways, are the antidotes to a marketplace that – propelled by the forces of the Social Web – is becoming increasingly atomized, hyper-distributed, open, and transparent. Secrecy, compliance, top-down hierarchies, rigid communication policies, and walled gardens are characteristics that may be somewhat outdated in this era, and yet they seem to be the very cornerstones of Apple’s and Bloomberg’s success as the two firms thrive as the surprise champions of their respective categories. Both came to save ailing industries, ripe for innovation: Apple reinvented the music industry and the Smart Phone market. Bloomberg is determined to reinvent the news business. But in the long term, can Apple sustain its community of loyal users without becoming a more transparent organization? And can Bloomberg really emerge as “the world’s most influential news organization” without going social?
Forgive me but I have to plug something my company (Frog Design) is involved in. I'm only doing this because it is such a neat event: In collaboration with Frog, NPR will host a unique Digital Think In this Friday in our offices in San Francisco, bringing together 60 thought leaders at the intersection of media and technology to explore new approaches to content creation, distribution, and funding for NPR and NPR member stations.
Hosted by NPR CEO and President Vivian Schiller and Digital Media SVP and General Manager Kinsey Wilson, the Think In will harness the collective expertise and creativity of an exceptional group of entrepreneurs, executives, and innovators. Participants include leaders at the leading edge of technology and media innovation from academia, venture capital, internet design, public media, social media, and research. Notable participants contributing to the day-long brainstorm include: Craig Newmark, Founder of craigslist; Reid Hoffman, Chairman and co-Founder of LinkedIn; Roger McNamee, Managing Director and Co-Founder of Elevation Partners; Chris Beard, Chief Innovation Officer of Mozilla; Krishna Bharat, Principal Scientist and creator of Google News; and Sue Gardner, Executive Director of Wikimedia Foundation, among many others.
The Think In will explore five main topics that are significant to NPR's ecosystem and its future: social media and connection to the audience, the organization's national network of more than 800 stations, the potential of its open API, expansion of platforms, and its diversified revenue model. After an NPR overview and an opening session, participants will break out into small groups to develop concepts that NPR can incorporate into its organizational roadmap.
The event will be live-blogged and the Digital Think In micro-site will feature live video streams of the opening and closing sessions. In addition, attendees will be tweeting the event throughout the day using the hashtag #nprthinkin. NPR's Andy Carvin will be posting to YouTube and Flickr under "nprthink," and updating NPR's Facebook page.
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AdSoftTheWorld)
Jeff Jarvis, who’s admirably trying to prevent the news industry from becoming the next music industry, recently wrote an interesting blog post in which he heralded “hyper-distribution” as a valuable new business model for news organizations. Responding to some industry pundits who propose embracing shrinking audiences as an effective means of consolidation and audience loyalty, Jarvis argued:
“Since when did it become OK for media people to shrink their audiences? Since they gave up on the ad model, that’s when. But I am not ready to surrender to the idea that advertising, which has supported mass media since its creation, is over. Yes, ad rates are lower; welcome to competition. That’s all the more reason why publishers must attract larger audiences publics – make it up on volume – as well as more targeted and valuable communities.”
To grow audiences through hyper-distribution, Jarvis proposes that news outlets utilize readers as distributors and embrace the very hyper-fragmented forces of the social web that might pose the most existential threat to them: reverse-syndication, “embeddable paper” formats, APIs, specialization, and engagement on social networks.
These are viable concepts (and some of them are already used, i.e. by the New York Times, the Silicon Insider, and others) but, if you were to be cynical, you could also view them as belated means of catching up to a new media reality in which the traditional notion of an advertising- funded news market is no longer valid. While hyper-distribution may provide formats for the post-article era, it still clings to the idealistic assumption that the world needs professional news organizations. But what if it doesn’t? What if the student who famously told the New York Times a year ago, “If the news is that important, it will find me,” doesn’t really consider news media to be trusted sources of news anymore, no matter how good they are in deploying social distribution channels to push them to him? What, in fact, if news brands don’t really matter anymore to Gen Y – as sources of news, trusted or not?
Arguably, CNN has lost some cachet through its #CNNfail debacle during the Iranian election (and similar defining news moments that seem to have shifted the intertwined powers of authority and attention to Twitter, i.e. the Hudson River plane crash and so on), and already, individual experts manage to establish themselves as the nimbler news aggregators on Twitter, cultivating individual audiences (of followers). What if the new news brand is @name? Or newsrooms, dispersed online, that converge amateurs, professionals, and experts? Google’s Marissa Mayer has hinted at what this scenario might look like: "hyperpersonal news streams," in which stories break like (Google) “Waves” and become the publication of collaborative processes rather than finished articles – constant iterations instead of interpretations.
Hyper-distribution may indeed overestimate the demand for trusted commercial news providers. As long as NPR, BBC, and other public services provide first-hand news coverage for free, chances are that the blogo-and Twittersphere will self-aggregate and hyper-distribute news without the mediation of commercial hyper-distributors. For them, innovating their distribution formats to catch up with social media may not be enough – they may want to innovate the very meaning of news. Rather than trying to generate incremental value against over-supply, they could generate disruptive value by creating a new kind of demand – pursuing a “reconstructionist” approach and yielding the type of “value innovation” that is commonly labeled under the sticky metaphor Blue Ocean Strategy.
And yet, two of the venerable US news weeklies, Time and, recently, Newsweek, are pursuing a third way out of the industry misery. They are neither adapting to the new rules of competition in a ‘red ocean’ nor are they creating a ‘blue ocean’ – instead, they are carving out a blue ocean within the red ocean, so to speak, by increasing their publications’ exclusivity. Both are deliberately reducing circulation to create a more loyal and targeted readership, and shifting their positioning from mere news engine to high-end background reportage and political commentary; and both are diametrically opposed to Jarvis’ hyper-distribution paradigm. Newsweek, 76 years old, is determined to shrink its circulation from 2.7 million to little more than half of that. Time’s circulation, which 20 years ago was close to five million, is now at 3.4 million.
Interestingly, it is another renowned weekly that presents the exception from this trend, and boasts surging circulation and ad revenue numbers: The Economist. According to the Publishers Information Bureau, the magazine’s revenues increased last year by a whopping 25 percent, whereas Newsweek’s and Time’s dropped 27 percent and 14 percent, respectively. With its US circulation nearing 800,000, The Economist may ultimately even overtake Newsweek in the States. Given that this growth trajectory has been consistent in the past few years, what is it that makes The Economist thrive while others are drowning in red ink? Michael Hirschorn, in a recent article in The Atlantic, opines that “The real value of The Economist lies in its smart analysis of everything it deems worth knowing – and smart packaging, which may be the last truly unique attribute in the digital age.”
Smart packaging of course means smart branding. The Economist has successfully branded itself as the de-facto print magazine for the global elite. “The secret to The Economist’s success is not its brilliance, or its hauteur, or its typeface,” Hirschorn contends, “The writing in Time and Newsweek may be every bit as smart, as assured, as the writing in The Economist. But neither one feels like the only magazine you need to read. You may like the new Time and Newsweek. But you must – or at least, brilliant marketing has convinced you that you must – subscribe to The Economist.”
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Magazineer)
Similar value is associated with Tyler Brule’s Monocle, a “briefing on world affairs,” as the monthly describes itself, delightfully packaged and suavely combined with fashion features, frequent traveler tips, and stylish gizmos – plus, online, a truly earnest old school radio podcast. The Economist and Monocle are both examples of the power of niche positioning, as Michael Hirschorn points out: “In the digital age, razor-sharp clarity and definition are the keys to success. Knowing what and who you are, and conveying that idea to an audience, is the only way to break through to readers ADD’ed out on an infinitude of choices. General-interest is out; niche is in. The irony, as restaurateurs and club-owners and sneaker companies and Facebook and Martha Stewart know – and as The Economist demonstrates, week in and week out – is that niche is sometimes the smartest way to take over the world.”
“News doesn’t build a brand anymore,” says serial German Web entrepreneur Alexander Görlach, who is poised to fill a niche with his new online magazine The European, which will launch at the end of September. Görlach believes that “To date, online formats have been designed as extensions of print outlet. But [in Germany], there is no autonomous online news brand that focuses exclusively on commentary and opinion.” The European will give experts and authors a voice, and cherish a culture of debate without violating the principles of the web by offering text-heavy articles. “Strong opinions. Journalism for the Web. No perks,” the tagline provides cues for what to expect. For US audiences, this formula may sound familiar: When Görlach promises rich multimedia programming and a departure from conventional section structures, one can’t help think that the Huffington Post is coming to Germany. In any event, The European, targeting 25-60 year old web users who earn more than 2,500 Euro per month, is one to watch, especially with a classy title like this that indicates that the publisher seems to have a good hand with branding and a confident, somewhat ironic grasp on history: "The European" was also the name of a British weekly newspaper in the 90s, billed as “Europe’s first national newspaper,” as well as that of a privately circulated cultural and political magazine that was published in the 50s. Obviously, neither lasted long.
The main lesson to be learned from the success of The Economist and Monocle and (quite possibly) The European: Culture beats economies of scale. Hyper-distribution (and hyper-localization) might be a (controversial) option for newspapers; it is certainly not an option at all for distinct magazine titles. For them, creating artificial scarcity in a sea of abundance – the essence of branding – remains the main imperative. I’m not saying that all outlets in the high-end category – The Economist, Monocle, Vogue, Vanity Fair, the New Yorker, and others – can survive simply because of their strong brands, but they stand much better chances of maintaining loyal audiences because of it. Access to information is important, sure, and innovative distribution models are to be explored, too, but it all comes down to the power of branding, the power of your voice. Distinction saves you from extinction. What do you stand for? What do you know? What do you have to offer as a handle on the world, a firm point of view in a world that is increasingly complex and full of ambiguity?
If brand is so important, then why is BusinessWeek up for sale, a supposedly strong name? Well, maybe precisely because its brand has suffered. By pioneering a compelling, state-of-the-art web presence – one of the best among business publications – BusinessWeek may not have done itself a favor; rather, it inadvertently over-extended its brand and diluted its editorial voice. It has experimented a lot but not really carved out a new identity: Is it a business magazine, a news portal, a blog network, or a social network?
While BusinessWeek expanded into digital formats and gradually blurred the boundaries between its print and online offerings, The Economist succeeded by sticking to it guns. It was very late to the web game and in fact never really caught up to the latest trends (and fads) of online journalism. It did not embrace the principles of the “link economy” as BusinessWeek did so fervently, and if you ask anyone about The Economist, you will certainly hear that it’s a weekly print publication. That’s all. Similarly, German business monthly Brand Eins, an award-winning collection of philosophical essays and reportages on the people behind the numbers, has never really hidden its disdain for the web – and its print circulation keeps growing. Both Brand Eins and The Economist have never compromised their print brands, never open-sourced their content to anyone, and are now in the most enviable position to defy Jarvis’ calls for “hyper-distribution.”
Perhaps, the most innovative thing you can do if you’re a publisher these days is to ignore the action bias – and not innovate.
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Multileveler)
Looking at the many positive responses it received, Pico Iyer’s recent NY Times blog post on "The Joy of Less" appears to have struck a chord:
"But at some point, I decided that, for me at least, happiness arose out of all I didn’t want or need, not all I did. And it seemed quite useful to take a clear, hard look at what really led to peace of mind or absorption (the closest I’ve come to understanding happiness). Not having a car gives me volumes not to think or worry about, and makes walks around the neighborhood a daily adventure. Lacking a cell phone and high-speed Internet, I have time to play ping-pong every evening, to write long letters to old friends and to go shopping for my sweetheart (or to track down old baubles for two kids who are now out in the world)."
I take Iyer’s account as further anecdotal proof of my thesis that we are moving towards a new era of post-materialism, in which the quest for meaning, simply put: collective action for the common good, social impact, sustainability, enlightenment, values, etc., trumps purebred material satisfaction derived from the accumulation of things. If ownership, the tyranny of more, means slavery to objects, the less is ephemeral and offers an infinite number of possibilities.
However, I disagree with Iyer on the role of media stimuli. I tend to have a more optimistic view and believe that Twitter, as the modern, accelerated Haiku, can indeed provide you with that “joy of less” that Iyer describes. To counter Iyer with the very Hamlet citation he uses in his text: “There is nothing either good or bad, but thinking makes it so.” What if Twitter is the impulse purchase of the enlightened digital citizen? What if it has shifted the need for instant gratification from a purely materialistic to a more intellectual realm? On Twitter, the only thing you can truly own is your account; everything else, even your followers, are ever-changing and highly volatile. Needless to say that tweets come and go as much as anything can come and go, and that Twitter doesn’t have a memory, so that all lives on it are limited to the here and now. That’s quite a moment of Zen. And yet, paradoxically, while ‘less is more’ certainly applies to its tweet format, the true attraction of Twitter lies in a ‘more is more’ network effect. The more people join, the more valuable the social conversation becomes.
This weekend, in the aftermath of the Iranian election, Twitter’s ability to build a mass audience by virally connecting myriad micro-audiences through micro-messages has proven again to have real impact. When the Iranian police started cracking down on protesters, CNN chose to air a repeat of Larry King’s interview with the stars of the American Chopper show, which drove the Twittersphere berserk. Other news networks, too, failed to properly cover the dramatic events that unfolded in Iran, but CNN was an easy target because it is so iconic. While the world was tweeting, the ‘most trusted source in news’ misjudged the situation and failed to turn history in the making into a story. In fact, it completely missed the beat and responded somewhat defensively to Twitterers’ accusations:
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CNN)
The anger at CNN may have been collateral damage of Twitterers’ frustration due to having only limited impact over the events in Iran. But the effect was impressive: Within a couple of hours, #cnnfail became one of the top trending topics on Twitter, CNN was faced with a major image backlash, and you could follow the development live on Twitter. Twitter effectively acted as “media watchdog,” as Mashable commented. Citizen journalism outperformed professional journalism -- in real-time. When Ahmadinejad shut down all mobile services and social networks, only a few Iranian Twitterers, with just the trusted authority of a genuine voice, were able to stay connected to the rest of the world and report on the frightening events in Iran. Synchronicity, real-time reporting, should have been CNN’s bastion but it didn’t get any of this. Twitter did.
The parallels are striking: The tentative revolution in Iran coincided with a revolution in the American living room. The protests against the Iran regime corresponded with protests against old school gatekeeper media. The social media grassroots campaign against traditional media became a mainstream media story itself. It will be interesting to see if CNN realizes the other startling parallel, the elephant in the room: Both Iran and CNN have cracks in the wall. The days of the old models are numbered. The revolution will happen but it won’t be televised.
The other key take-away from this media weekend is that on Twitter the main story was not the story. The main story is never the story. Twitter is the mainstream for alternative streams. This is why Twitterfall, which displays tweets grouped by trending topics as a top-down waterfall, is the congenial visualization, the most effective user interface for Twitter. Twitterfall expresses the escalation that is an inherent part of Twitter. On Saturday night, #iranelection and #cnnfail tweets broke down in staccato-pace, many tweets per second. It was hard to take your eyes off; it was too easy, too tempting to stand still amidst the constant motion.
Events are synchronous, multi-dimensional, multi-layered, and social, and so must be news. What if the future of news was Google Wave, as Jeff Jarvis suggests, or other "email cum wikis cum Twitter cum groupware"? “Imagine a team of reporters - together with witnesses on the scene - able to contribute photos and news to the same Wave (formerly known as a story or a page). One can write up what is known; a witness can add facts from the scene and photos; an editor or reader can ask questions. And it is all contained under a single address - a permalink for the story - that is constantly updated from a collaborative team.”
Or is there a news model based on a horizontal comparison of real-time and filtered search (Twitter vs. Google), a la Twoquick? In either case, the aggregators will win (or have already won). The only model that would keep mainstream media in the game would be to combine vertical motion (Twitterfall) with contextual content that is carefully curated: immediacy AND accuracy, intimacy AND authority. Mashable gets it right when it interprets this weekend’s events as an opportunity rather than a swan song for traditional media: “While social media sites are both a source of unfiltered information and a venue for public discussion, we still look to CNN, the BBC and their ilk to add context and meaning to this flood of data. And when they fail us, we demand more of them.“
These days, you don't need to launch portal sites that vie for new audiences. You're better served leveraging existing applications to provide new functionality for venues that already attract a fair share of eyeballs or that even cultivate their own communities.
Internet activist Lawrence Lessig points out a feature of Apture, a rich media content compilation platform, that promotes government transparency by allowing bloggers and other publishers to embed links to rich media background info on politicians and their records (i.e., key moments of testimony in videos, historical source materials, government documents, and even bills and resolutions).
Apture announced Monday that it will partner with The Washington Post to promote this application, offering readers "a highly engaging way to view political data, congressional records, video, news and abstracts within a single Washingtonpost.com browser experience."
The Apture technology will integrate with Washingtonpost.com's congressional votes database to provide up-to-date information on the latest House and Senate votes. In addition, Washingtonpost.com will make this data and content available to any blog or Web site that uses the Apture publishing platform.
This partnership marks a larger trend: no longer concerned about "leakage" (visitors exiting a site following external links), news outlets are opening their portals to dynamically aggregated third-party content. Another prominent example is The New York Times and its recent beta-launch of Times Extra. The service aggregates news headlines from other publications (including blogs) and attaches them to relevant articles on The New York Times home page.
Denise Warren, chief advertising officer of the New York Times Media Group, said in a statement: "We are addressing a common desire for comprehensiveness, enabling people to find all the news and information they could want from all sorts of sources. Initiatives such as Times Extra and our other new products allow us to do an even better job of responding to our audiences' demands for interactivity, community, multimedia and news and information on an increasingly wide range of topics."
Both The Washington Post and The New York Times get the new "openness" of news media: they are gradually morphing into software companies, serving as curators of digital content from both inside and outside of their own newsrooms.
It's a few weeks old but still worth pointing out as another recent example of "Disruptive Realism" - a clever twist on the slogan of the New York Times: 'All the news we hope to print:'
Good News! from Blake Whitman on Vimeo.
From the press release (linked to the Prankster group The Yes Men):
"Early this morning, commuters nationwide were delighted to find out that while they were sleeping, the wars in Iraq and Afghanistan had come to an end. If, that is, they happened to read a "special edition" of today's New York Times. In an elaborate operation six months in the planning, 1.2 million papers were printed at six different presses and driven to prearranged pickup locations, where thousands of volunteers stood ready to pass them out on the street. Articles in the paper announce dozens of new initiatives including the establishment of national health care, the abolition of corporate lobbying, a maximum wage for C.E.O.s, and, of course, the end of the war. The paper, an exact replica of The New York Times, includes International, National, New York, and Business sections, as well as editorials, corrections, and a number of advertisements, including a recall notice for all cars that run on gasoline."
[via the Gothamist]
I like her line on mainstream media vs. blogs: "Mainstream media have an attention deficit disorder, blogs have an obsessive compulsive disorder."
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Florence20)
Nothing is more old news than the good old newspaper from yesterday. Silicon Alley Insider reports on the New York Times' attempt to counter the continued print media decline by establishing new revenue streams through its online initiatives. Marc Frons, chief technology officer of the Times' digital operations, provides cues as to where the company is placing its bets: "Widgets, iPhone apps, APIs, and more."
In essence, this means the Times is turning into a software company, applying the same business model philosophy "as many start-ups in Silicon Valley:" "Build neat tools, get traction, and then figure out how to make money off them later," as the Silicon Alley Insider describes it.
The Times' plans indicate a larger trend in the media industries: Responding to the effects of the "Distributed Internet," content companies have begun to compartmentalize their content and provide it through myriad, hyper-targeted, personalized, socially aggregated micro-channels. Hard content is becoming soft, and, who knows, maybe news will soon be coming straight from the "clowd," with Google serving as the only editorial filter.
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Ford)
I know this blog is about product design and innovation but let's talk about PR for a minute. Why? Because the way you talk about your product should be part of your design process. The product design ought to incorporate the product story you want to tell. Sometimes, the story even becomes the product. Moreover, some may think PR is immune to innovation, but is in fact a field that is currently going through a series of pretty radical disruptions. The rise of social media has challenged the old way of promoting messages, and today's PR practitioners face the daunting challenge of doing effective public relations when it's more and more the public itself that does all of the relating for you.
Enter the social media news release (SMNR), originally conceived by SHIFT Communications, a viable new format to spark and cultivate online conversations about a product. Todd Defren, Shel Holtz, Chris Heuer, and other bloggers have been on the soapbox preaching about SMNRs for almost a year now. The list of companies that have used the SMNR includes Coca-Cola, BEA, SAP, Novell, and Belkin, among many other smaller companies.
And now--hat tip to Geoff Livingston--Ford has released an especially glowing example of a SMNR for its new 2008 Focus. It's quite a production and includes a vast array of social media elements. Flickr-sized Images, RSS feeds, suggested meta-tags, YouTube videos, PDF fact sheets, bulleted facts, and a variety of executive quotes make this release eye and conversation candy--lavish yet informative.
Livingston writes: "This new social media news release takes the emerging form to a new level, and demonstrates that companies can reinvigorate, static and boring parenthetical form with dynamic content. The result: a virtual work sheet that any blogger, journalist or analyst can use as starting point for a story."
It is definitely a step in the right direction even though the release is not yet fully social media-enabled: it lacks broader social bookmarking capabilities, and it also does not allow the recipients to comment on the release itself and pick up the conversation right there. I also doubt that Ford has put their release out over the traditional news wires, as they still seem to lack the ability to handle this kind of rich multimedia package.
Questions for the Social Media Group, the PR firm that crafted the release for Ford (and is probably tracking this conversation): How do you measure its effectiveness? What would make it a successful release for you?
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