Mathew Ingram covers (new) media for GigaOm. He writes often on how old media simply doesn't get it. They don't understand twitter. Or "free". They fail to grasp the futility of paywalls. A "conversation" with readers is alien to them. Digitization and abundance are ideas that frighten them. Those writers that complain that their stories are essentially "aggregated" by others, including GigaOm, are dinosaurs.
Unlike, say, his employer, GigaOm. Which resides in the heart of those that "get it"; Silicon Valley.
A sampling from Mr. Ingram. From just the past 2-3 weeks:
I’ve argued before that the news occurs in different ways now than it used to; it’s no longer a packaged product that newspapers and TV stations create, but a process that involves Twitter reports and blog posts and video clips and all kinds of chaos.
There are plenty of reasons why the traditional media business — including the advertising industry — is in the shape it is in, including a failure to move quickly enough to adapt to changing market conditions. But one of the primary flaws is a failure to appreciate how the structure of the media industry has been disrupted by the web and the democracy of distribution.
Traditional media critics attack the Huffington Post for its aggregation, but as Nieman fellow David Skok pointed out recently at the Nieman Lab blog, aggregation is deeply embedded in the DNA of the media industry, and always has been. And as we’ve tried to point out before at GigaOM, aggregation and particularly curation are two of the skills that modern media companies need the most.
The NYT needs a lot more than just a paywall. Another thing the NYT could — and should — be thinking about is what the role of an information provider is in the digital age.
Om has described in his posts about the “democratization of distribution,” and as I’ve pointed out in posts about the disruption of the business of journalism. If anything, the original sin of newspapers was a failure to appreciate all the ways in which the internet was going to fundamentally change the nature of their business, and a failure to try and adapt to those changes quickly enough.
Sky News joins the anti-social media brigade
One of the realities of a world in which distribution of content — including news — has been fundamentally democratized is that the value of a “scoop” or breaking news update is declining rapidly. The half-life of that kind of news is so short, and it becomes a commodity so quickly, that there is little value in trying to protect it for very long.
Mr Ingram's views are clear. And, as he so often quotes his boss, founder Om Malik, likely the consensus view of the site. To wit, old media fails to understand the *realities* of new media, the "democratization of distribution", the fallacy of the paywall, the power of social media and in all ways are watching their readership and financials collapse because ours is now a "digital age" and they have "failed" to "adapt to these changes quickly enough."
But is this true?
Perhaps. Traditional media outlets can't seem to earn a profit. Are not growing. Paywalls have not proven beneficial to most newspapers. Their financial tell us as much.
Maybe Ingram and GigaOm are right, then, about old media. If so, how come they can't seem to make it on their own in this brave new world?
Consider how GigaOm describes itself:
Founded in 2006, GigaOM has grown into the leading provider of online media, events and research for global technology innovators. The company is one of the most credible and insightful voices at the intersection of business and technology, with an online audience of more than 4.5 million monthly unique visitors; industry-leading events, including Structure, Mobilize, GigaOM RoadMap, and Structure:Data; and a pioneering market research service and digital community, GigaOM Pro, which provides expert analysis and research on emerging technology markets.
Six years in, a "leading provider" of online media, events and research. "One of the most" credible voices on business and technology and operator of "industry leading" events.
Then tell me, why has it required over $14 million in venture capital funding, at least, to sustain GigaOm? For such a leader, an enterprise that truly gets the new world of new media, has the company earned a profit? Ever?
Are they in the black? When are they expected to do so?
Last week, GigaOm purchased PaidContent -- the "biggest deal in their five-and-a-half year history". They refused to say how much. My guess is the price was far less than the nearly $10 million the Guardian was rumored to have purchased PaidContent for in 2008.
Can the leaders of new media, so quick to teach old media the error of their ways, similarly not eke out a profit? Even without the legacy costs?
Last year, TechCrunch was acquired by AOL. TechCrunch was Silicon Valley's king of digital media. And was privately held. The company did not reveal whether or not it ever actually earned a profit on content -- or whether it was even able to generate the cash required to create and aggregate content.
Early this year, yet another Silicon Valley new media outlet "at the intersection of business and technology" was started: PandoDaily. This wretchedly named site is, yes, funded by venture capital and a variety of very wealthy Silicon Valley insiders.
I wonder: in their business plan, did PandoDaily pledge *ever* to earn a profit off content?
All of which raises several questions, none of which connected to all the bullshit the leaders of new media have been preaching to the dinosaurs of old media.
In the heart of Silicon Valley, the leading, best funded, most popular media outlets may be unable to actually generate a profit.
Why are they not talking about this?
And what does this portend for all the other businesses and business models in Silicon Valley? In buying PaidContent, Om Malik stated:
We are quite strategic about our acquisitions — we acquire media entities only if we love the people and believe that we are at the starting phase of a trend. In 2008, we acquired jkOnTheRun as our tip of the hat to the growing demand for mobile devices and the changes it would bring into society. Later that year, we brought in The Apple Blog because we knew the best was yet to come for Apple. Both of those acquisitions have helped GigaOM cover the issues that matter most to our ultimate customers — you, the reader — in a smart, sensible fashion.
Nice, but did either of those blogs earn a profit? Ever?
Are we getting the truth from new media? Can we?
What if every "leading" media outlet covering the auto industry, for example, was effectively funded and controlled by wealthy auto execs? No doubt we would learn of the latest gadgets. There would be stories on the horsepower in the newest sports models. Snide remarks would fill the posts mocking those without the latest, greatest autos.
Would we receive the full story on speed limits, however? What would be their take on the auto bailout?
Such sites may indeed offer the highest quality news and/or most posts on this year's line-up of cars but would they dare broach the subject of global warming, for example? Or of personal safety?
What would they not cover? Do we spend too much on roads and not enough on public transit? Are all these car-centric neighborhoods bad for our health? What are the hidden costs?
Considering the growing importance of technology (and Silicon Valley) in our lives, we must ask: Why do the best and brightest covering Silicon Valley require what appears to be a continuous stream of benefactor funding? Why are they not actively attacking the very business model -- display ads and "industry (insider) events" -- for *limiting* what we read and for limiting what is possible in a world where content creation itself has almost no barriers?
In announcing their purchase of PaidContent -- for an unstated amount -- GigaOm head, Om Malik, stated:
We are in a time of chaos where the very idea of media is being questioned. And as a Chinese proverb says, from chaos emerges opportunity. I believe the best is yet to come for media.
Over the past few years we have started to see the transformation of media by new technologies, new methods of distribution and newer ways to consume information. Mathew Ingram has been writing about these disruptions on a regular basis, and now we are going to double down on what we think is a great new chapter in the media industry.
Frankly, this is the Silicon Valley party line. We readers deserve better.
Yes, yes...from chaos, opportunity. Disruptions, understood. Doubling down -- that means buying up. All of which is the *exact* language and the exact thought processes of those funding our (new) media.
This is, I'm afraid, a story they never tell.
Certainly, these sites will congratulate themselves for their "transparency", informing us if a company they cover is similarly owned/funded by their specific benefactors. But this badly misses the larger story of what is and is not covered and why.
Perhaps I will be accused of simply "not getting it". But I believe that media is best when not controlled by a few wealthy insiders. I believe media works best when it has the ability to stand on its own, which I'm not sure that any of the big blogs of Silicon Valley can do -- or have ever done.
I believe that when the people who are the leading funders of an industry are also the leading funders of (all) the primary media covering that industry, than we will never have the coverage -- of all the issues -- that we readers deserve.
Maybe the very first story a free and independent new media outelt should cover is: why aren't the best and brightest at the most powerful, most innovative, most disruptive technology firms, which we cover regularly, able to build an infrastructure which can support us?