Cheryll Barron

Archive for the ‘The future of publishing’ Category

The lost wisdom of co-ops: a conversation about the key to future creative freedom for artists and inventors of every stripe

In 4th Estate moves, Blogging and bloggers, Cooperatives, Leveson Inquiry, The 5th Estate in action, The future of publishing on 20/05/2012 at 9:43 pm

All artists now want to work on terms they co-determine.
Photograph by MIL22.

Post-Gutenberg will occasionally be letting visitors eavesdrop on discussions between our colleagues – starting with the pseudonymous and gender-free Escargot and Mustrun, who are not quite ready to divulge any personal details, except in warning about their tendency to be over-earnest, humourless, and on occasion, dull. Not the best qualifications for bloggers, we agree, but we make do with what we have – or rather, who.

Mustrun: I see that on Sunday we linked to The Observer — to a sharp John Naughton column about the Facebook hype falling flat on Wall Street. Someone here dropped into a comment there a link to our Valentine’s Day post about snubbing Facebook and re-inventing social networking sites as co-ops.

Escargot: So that’s why our traffic numbers have gone zooming into outer space. We’re not used to thundering herds of visitors shattering the monastic silence in these parts.

Mustrun: Right. Co-op promoters are the slave trade-killers of tomorrow.

Escargot: Trying to be aphoristic again, are we? Don’t. That one’s as clear as mud.

Mustrun: Just saying. All the clever people were sure for over two millennia that slavery would always be with us. Anyone trying to abolish it was written off as a lunatic or idealistic fool.

Escargot: Oh. Quite. Last week that lovely Leveson Inquiry judge, more owly than we are, was asking eminent witnesses to suggest how to make the British press behave in the future, and be less hopeless at holding politicians to account. No one mentioned redesigning media organisations as co-ops, but it’s surely a solution whose day has come. Not to mention dead relevant.

Mustrun: You’re thinking of the Harvard journalism lab experiment? Something to do with an Indian tree that looks like a multi-limbed goddess on steroids?

Escargot: The Banyan Project, yes. It’s been building a prototype for doing online journalism as a cooperative enterprise, focusing on local news. The man behind it, Tom Stites, has exactly the right idea. We’ve quoted him on post-Gutenberg before.

Mustrun: We have? Well, you know me. Any subject not mentioned in a post header, or that I didn’t write about myself, does not register.

Escargot: [sighing inaudibly] So as usual, you want me to urp up what he said, to fill you in?

Mustrun: Leopard, spots; all in the hard-wiring – yes? … If you would, please, Scargo.

Escargot: [reads through imperceptibly gritted teeth] ‘A significant source of co-ops’ strength is the trustworthiness inherent in their democratic and accountable structure. … This is also an era of rampant mistrust of journalism, so co-op news sites’ trustworthiness has the potential to add value to what they publish. Further, the co-op form allows, or rather demands, that news coverage decisions arise from what a community’s people need … The web is inherently collaborative — just as co-ops are — and at the local level this creates the potential for civic synergy — ’.

Mustrun: Translation: co-ops and the internet were made for each other. Spot-on, in that long-winded Murrican way. He might add that it’s strange but true that large parts of the internet sit on top of ‘peer-to-peer computing’. But this Justice Leveson, … how is he supposed to go from applauding a fine example like Banyan – assuming he does any such thing – to persuading the media to try out co-ops? He’s hardly going to order them to alter what we’re supposed to call their ‘business model’.

Escargot: Right. Britain is not a dictatorship. But he might recommend that the government offer old or new media organisations tax breaks for setting up co-ops – in the oldies’ case, by reinventing themselves, or parts of their operations, as co-operative outfits.

Mustrun: You think journos would sign on? Remember that the majority so detest the idea of any change that they can’t even bring themselves to report that Nick Davies — the journo hero of the phone hacking saga — told Leveson that the press cannot be trusted to regulate itself.

Escargot: Mmmm. Some of them will sign on, certainly. More will as the idea loses its strangeness, I suspect. There are editors and journalists who’d leap at the chance co-ops could give them to set rules and policies collaboratively. Mainly, I suspect, the craft-focused ones — hoping, like artists and writers everywhere, that this net revolution really will get rid of hierarchies and gatekeepers.

You saw the Tom Friedman column celebrating some of that on the New York Times site yesterday – yes?… But then of course, many journos live not so much for the craft as for the clubbiness in the profession. And sort of think of themselves as football teams – the women just as much as the men.

Mustrun: Clipped Friedman for skimming, later. Journos are petrified of more democratic media organisations, especially of any plan that involves making room for outsiders — for more varied contributors and voices. I’m always asked the same nervous-Nellie question about posts on here like ‘Co-owning media is on the horizon …’. It’s this: will working in a media co-op mean that trained journalists get paid the same as bloggers and citizen-journalists?

Escargot: Oh, I’m asked that. All the time. No matter how many times we explain that the way a co-op works will depend on the particular set of rules its owner-members agree on, the journos and media managers revert to projecting their most paranoid fears onto any mention of  co-operatives.

Mustrun: Someone ought to re-publish that superb Tom Lester article about co-ops in the disintegrating copy of Management Today you once disinterred from our archive. It’d make a terrific contribution to the new e-publishing collections of long-form journalism – with an introduction setting it in context, of course, and updated facts. Remind me of the year it was published?

Escargot: Imagine you proposing anything in long form, Musto. The owner of the world’s most attenuated attention span. The Lester piece — the cover date for the magazine says February 1979 — deserves every last gram of your praise.

Mustrun: Even text-grazers like me have to stop for a real meal, now and then. What he pulled off in that article is amazing. His subject was the failure of the Kirkby Co-operative in a depressed manufacturing town near Liverpool. Yet by the end of his dissection of how Kirkby was done in by badly-designed rules, you somehow feel hugely optimistic about a well-designed co-op’s chances of succeeding.

Escargot: Yes, yes, and yes. The piece partly answers the question of how journalists might be paid in relation to bloggers – not that we existed, then — by explaining the rules for profit-sharing in one of the world’s biggest and most brilliant co-ops. Mondragon, in the Basque country of northern Spain.

Mustrun: ‘Mondragon’ sounds like something in Lord of the Rings. Lester uses its exotic history — it was started by a Catholic priest in the desperate aftermath of the Spanish Civil War — to create a riveting context for a step-by-explanation of exactly how an individual could join a co-op and help run it.

Escargot: [ swipes over to scanned copy of the article in a tablet computer ] The ratios may have changed, but in 1979, Lester said that at least 30 per cent of a Mondragon co-op’s profits had to be put away in the collective reserve funds. Then, ‘the other 70 per cent is divided up among the members of the co-op according to a points system reflecting job status.’ … And of course, every member could help to decide the status of one job in relation to another.

Mustrun: But in addition to practical, nitty-gritty details like that, he tells about some of the lunacy that seemed to go hand-in-hand with the passionate idealism behind co-ops of the past.

Escargot: Mmmm. ‘No shortage of idealism,’ he says about Mondragon, ‘…but mixed with hard-headed realism.’

Mustrun: Yes, but noisy idealism has been the biggest enemy of co-ops. Makes sensible people mistrustful.

Escargot: Quite. If only people who believe in them and have the right skills – extroverts, unlike us – would just get on with setting them up with no fuss. The way, for instance, Tim Berners-Lee quietly invented this World Wide Web. What could be more idealistic than a way of communicating as powerful as this one, connecting the whole planet –  but given away, free? A scientist silently beavers away in a lab in Geneva and without any self-advertisement, no speechifying whatsoever, changes the world.

Mustrun: Well, I really must, … you know …

Escargot: Right. Off you go, then.

Will Leveson end blessing press partisanship and slamming the brakes on the rise of new media and the 5th Estate?

In 4th Estate moves, Leveson Inquiry, Re-arranging publishing for the 5th Estate, The future of publishing on 15/05/2012 at 11:00 am

Lord Justice Leveson interrogating Rebekah Brooks, the former News International chief.

Why is this blog keeping a close eye on the progress of the Leveson Inquiry? Not because of minutiae about Rupert Murdoch and his henchwoman Rebekah Brooks jumping in and out of bed with British prime ministers, metaphorically speaking – as important as those shenanigans are to grasping the extent to which the governing of Britian has been infested by parasitical media magnates.

Under his Inquiry’s terms of reference, Lord Justice Leveson will have to make recommendations about the future of press regulation in Britain. These are bound to influence the debate about policy in other parts of the world. The expectation about the effect of his prescriptions that we at post-Gutenberg find most exciting is in this advice the judge has received:

…[I]f you do get the regulatory framework right for print journalism, I think that will have a profound effect on the way the Internet develops. […] What I think is happening is that we’re going to end up in a position where there has to be a redefinition essentially of what a journalist is.  … [I]t would be absurd to expect you to have regulation for every single person who is on Facebook and Twitter because then you’re not far off from saying we have to regulate the content of text messaging and so forth. [...] So I think there has to be a definition of what a journalist is, what a media organisation is, and [though] this is where I have some sympathy for the print industry, it’s not just about the print industry.

That was part of yesterday’s testimony by Alastair Campbell, the much-reviled political strategist and press adviser to Tony Blair. Further justifying this blog’s praise for his contribution at an earlier hearing a few months ago,  Campbell has proved to be incontestably the clearest and best-informed thinker among those assisting the Inquiry.

Lord Justice Leveson’s obvious grasp of the most subtle aspects of what Campbell told him was particularly welcome after undercurrents at last week’s hearings suggested that perhaps David Cameron’s government – even though it commissioned this Inquiry – had been warning the judiciary, off-stage, about excessive zealousness.

The presiding judge’s unfailing good humour had up to then been as striking as his scrupulously fair treatment of all witnesses. But a newspaper quoted him as having said, last Thursday, with unprecedented irritability, that he was impatient to reach the end of the hearings and get back to ‘productive judicial work’. As this followed his rejection, the week before, of the government’s request for privileged ‘core participant’ status in the proceedings, it seems most likely that friction between the executive and judicial overseers of our democracy played some part in darkening his mood.

There were other apparent reactions to unpleasant, behind-the-scenes manoeuvring – as in the somewhat tortured and meandering summing-up by the chief interrogator, Counsel Robert Jay, of the chief issues raised by the hearings. Formally addressing the Lord Chief Justice, he delivered a sort of pre-mastication of findings from witness testimony to date. In this, he partly echoed quixotic attempts by the media to justify a partisan press – of which the most bizarre has been an argument offered by The Economist, dissected in an earlier post on this blog.

‘The fearlessness and vibrancy of our press is something of which we should be enormously proud,’ Counsel Jay, usually a model of calm rationality, said in a rare rhetorical passage. He also said:

Newspapers are entitled to be partisan in a democracy, to campaign in favour of causes, policies and political parties; and were the State to legislate otherwise that would be undemocratic, as well as, under our current settlement, an abrogation of human rights.

This paean clashed with his clear understanding – obvious from his thinly veiled outrage, in one interrogation after another – of the damage done by partisanship.  On Friday, grilling Rebekah Brooks, the former chief executive of News International, he sought to underline that the payoff for newspapers, for pushing the agenda of their chosen political parties, is the ability to influence policy — and that this seriously undermines democracy. A New York Times report spotlighted his repeated insistence to Brooks that

…. media executives and editors were ‘unelected forces’ influencing policy by exercising power over governments …

Post-Gutenberg wondered, watching a video feed from Leveson:  since when has the concept of press partisanship been warped by being treated as an essential component of press freedom?  Not everyone is taken in by this Orwellian obfuscation. Gus O’Donnell – a Whitehall mandarin who has served three governments as cabinet secretary –  testified just before Alastair Campbell yesterday. In his written statement submitted to the Inquiry in advance, he said unequivocally,

Newspapers can and do actively support political parties, meaning it can be difficult to obtain objective information from them …

… then, in his live testimony, added:

 … [I]t’s in their strong interests for politicians to talk to newspaper editors and proprietors to try and explain their policies, try and explain why that newspaper should support them.  That’s been going on and continues to go on and that’s the structure we have.  And as long as you have newspapers which are allowed to strongly support and come out very overtly in favour of political parties, that relationship is going to continue.

Where I would like to see a change, perhaps, is […] if you contrast the newspapers, say, in the United States with the United Kingdom, you’ll find in the United States newspapers in general tend to separate out opinion and news much more.  So you’ll get a page of opinion, which basically says, “We strongly     support this politician or this set of policies”, in a very kind of almost propaganda-ish way, and then you’ll get the news columns, which tend to be pretty straight.

I think if you looked at our newspapers, where they differ is that you’ll find that you get all the opinion in the same way but in the news stories. [my ital.]

… Why is the press so desperate to convince us that media partisanship is a good thing? Because, if the public approves of the press siding with particular political leaders and parties — instead of preferring press impartiality,  as it actually does, at present – the 4th Estate can continue to assume king-making powers.

Politicians will continue to put themselves at the beck and call of newspaper proprietors and editors in the hope of winning their nominations in elections. As Campbell pointed out yesterday, Murdoch’s is not the only press fiefdom involved in what O’Donnell characterised earlier in the day as ‘a co-dependent relationship between politicians and the media’.

Alastair Campbell noted:

Because Murdoch’s the biggest figure and because the phone hacking has led to this Inquiry, there’s been a huge amount of focus on him, but this goes right across the media panoply.  I mean, I was in charge of Tony Blair’s  media operation and we had strategies for all of these papers and we had approaches out to all of these papers.

Let us hope that Lord Justice Leveson, when he sits down to write his report, proposes a regulatory framework that puts an end to the toxic mutual manipulation that goes with press partisanship. Let us hope that he can resist the huge pressure being brought to bear on him to stop citizen journalists and other outsiders from breaking up the exclusionary symbiosis of old media and government.

One thoughtful witness after another has recommended greater transparency and accountability in press dealings with the government and politicians. Excellent and essential ideas, yes. But the Lord Justice should, in addition, do all he can to let the new technologies at our disposal open the way to many more disseminators of facts, and to challengers of media warping or omitting inconvenient facts.

New voices must be heard from – in whatever framework he advocates — on equal terms with today’s media powerhouses, even as the lights dim in these institutions, and they bow before the force of the onrushing 5th Estate.

Murdoch’s end shows why the 4th Estate needs competition, power-sharing, and watchdogs as astute as Lord Justice Leveson — on permanent duty

In 4th Estate moves, Leveson Inquiry, Re-arranging publishing for the 5th Estate, The 5th Estate in action, The future of publishing on 30/04/2012 at 9:36 am

Rupert the piteously wronged: it should not have taken 30 years to see him flushed down the sewer of history

Questions that came to mind, watching segments of Rupert Murdoch’s testimony last week at the Leveson Inquiry into the culture, practice and ethics of the British press:

Why did it take over three decades — the lifespan of some loyal readers here — for the outing of Rupert Murdoch as the most pernicious influence on British journalism for at least a century?

Max Hastings, who was for some years the editor of The Daily Telegraph – but has voted for both Labour and the Tories, in different elections — is almost the last man standing at the profession’s summit who deserves deepest respect. His account of competing with Murdoch and his newspapers in a memoir published ten years ago, Editor: An Inside Story of Newspapers, reveals why the man went unchallenged for so long, and offered a deft portrait of him:

… Murdoch, as always when I encountered him, cut a curiously joyless figure. He appeared to have no life beyond his business, no cultural or aesthetic interests. [… He] will leave this planet having added precious little to the store of decency, culture, humanity …

[…]

One of the most sensitive issues for many British newspapers is that of how they treat their rivals in print. There is a shameless, self-serving compact between companies, that the personal embarrassments of newspaper owners are not reported by competitors. Anyone who attempts to write about Rupert Murdoch’s or his family’s domestic arrangements for another publication is likely to receive  a call (or, more likely, his editor or managing director will do so) from one of the great tycoon’s senior stooges at News International, drawing attention to the proprietors’ pact, and warning without much subtlety about the inevitability of retaliation if the convention is breached. The preposterous Barclay brothers ruthlessly assert their right to be spared personal publicity of any kind, even about the fortress they have constructed in the Channel Islands, and even though they have chosen to become newspaper owners.

It always seems pretty rich, that titles which derive most of their income from laying bare the private lives of others should show no embarrassment about protecting their own proprietors from scrutiny, through what amounts to a system of social nuclear deterrence.

All that being known on Fleet Street, why are none of the newspaper chieftains conceding, as they analyse the implications of Murdoch’s toppling, that he and they were all in the same club? … Why are none of them explaining the wider consequences of that to their readers? … For instance, that staffers on their papers were as entangled with politicians as Murdoch and his lieutenants were – so much so, that the two most important scoops of the last decade about power in Britain came not from staffers but freelance journalists?

As far as I can tell, there has been just one noble exception to this selective blindness. An Observer columnist, Henry Porter, wrote at the weekend:

The point of regulations and institutions is to defend the relatively fragile democratic process from people like Murdoch. The fact that none of the safeguards worked and we came within a whisker of allowing his near total dominance of the marketplace further erodes our faith in the political class to act in the interests of the public. Let’s not forget that it was largely accident, and the dedication of a very few journalists, that exposed the cover-up, of which Murdoch now claims, with eye-watering hypocrisy, that he was a victim.

Actually, it was one dogged and intuitive reporter – Nick Davies, working as an outside contributor to a broadsheet newspaper, who was able to capitalise on the ‘accident’ that exposed the extent of phone hacking by Murdoch’s minions.

Why did staff journalists anywhere fail to publish that ugliness hidden in plain sight, or break the political horror story of 2009, the MPs’ expenses scandal – the revelations about members of parliament misusing allowances and expense accounts to pay for pornography and cleaning their castle moats, among other fraudulent acts?

This scoop was also the triumph of a freelance journalist, Heather Brooke – operating outside the cosy club in which the country’s leading parliamentary correspondents wined and cuddled politicians.

The inescapable conclusion?

The club walls need tearing down. It is time for the long reign of 4th Estate journalism to give way to the 5th Estate, in which new rules and conventions will allow for the full participation of outsiders, including citizen-journalists.

Like everyone else who cares about making democracy work, David Puttnam, a genuinely idealistic politician and activist who is also a hugely successful film producer – of Chariots of Fire, for one – perceives a clear need for media reform:

In the House of Lords and elsewhere, I have repeatedly called for a comprehensive cross-media impact study – so far to no avail. At the end of his session with Lord Justice Leveson, Rupert Murdoch described the digital landscape, which we have now entered, as one in which tablets and GPS-enabled smartphones are displacing newsprint. The potential of this technology to engender even greater competitive diversity in an intelligently regulated democracy ought to be very welcome. It should result in a broadening of the lens through which we see the world, not a narrowing of it.

But that requires a clear regulatory framework that encourages, in fact enables, media plurality to flourish. We cannot, for example, legislate for good journalism, but we can legislate for the conditions under which the very best journalism is nurtured and sustained.

There were some hostile early reactions to the Leveson Inquiry from the 4th Estate — when it was not ignoring it altogether — like this bit of ludicrous exaggeration by the Guardian columnist and former editor of two newspapers, Simon Jenkins: ‘As with a military occupation, the longer Leveson’s tanks stay on Fleet Street’s lawn, the less benign they seem.’  But lately, some leaders there have apparently begun to hope that the judiciary’s interest in their doings might be used to protect them from being overrun by the 5th Estate.

A Guardian editorial last week adopted a surprising new tone:

The other revealing moment in Murdoch’s testimony last week was when he launched into an incoherent rant about – and against – the internet. […] As Murdoch rambled, waving his arms despairingly and pounding the table, it was difficult to determine what point he was trying to make, other than the unfairness of governments regulating newspapers while the wild west web remains untamed. Was it just that he senses his powers ebbing away, flowing towards the new masters of the digital universe – the Sergey Brins, Larry Pages and Mark Zuckerbergs of this world?

Will they turn out to be any better than the media moguls who preceded them? And who will play Lord Justice Leveson’s role if they don’t?

As this blog pointed out, when newspapers on both sides of the Atlantic were doing their best to ignore the judicial probe, the two-man team of Lord Justice Leveson and Robert Jay has been giving us an astonishing demonstration of judicial skill and insight. This is British justice at its dazzling best.

David Cameron would do well to put these same men at the head of the organisation that replaces the disgraced Press Complaints Commission – at least, for the first few years of its existence.

Above all, let us hope that in his recommendations at the Inquiry’s end, this Lord Justice spotlights the need for the media to adapt for the future, in a reinvention guided by maximising inclusiveness and transparency – through, for instance, co-ownership. See:

(for an explanation of why the old order has to give way to the new: )

Good Guardian, bad Guardian, and two more censored comments

http://post-gutenberg.com/2011/11/15/good-guardian-bad-guardian-and-two-more-censored-comments/

Also:

Why a keiretsu-cooperative is a gentle transition for old media

http://post-gutenberg.com/2012/02/21/why-a-keiretsu-cooperative-is-a-gentle-transition-for-old-media-and-how-about-saying-an-exaltation-of-bloggers/

Co-owning media is on the horizon — and press coverage of the Leveson Inquiry shows why we need this

http://post-gutenberg.com/2011/12/06/co-owning-media-with-audiences-is-on-the-horizon-and-press-coverage-of-the-leveson-inquiry-shows-why-we-need-this/

Why is The Guardian censoring debate about press reform and ignoring the Lord Chief Justice’s endorsement of citizen journalism?

http://post-gutenberg.com/2011/11/07/why-is-the-guardian-censoring-discussion-of-press-restructuring-and-ignoring-the-top-judges-support-for-citizen-journalism/

Is Amazon a bully, beating publishers into submission? Dear writers: some publishers were aiming for totalitarian rule of the book business

In 4th Estate moves, E-books, Re-arranging publishing for the 5th Estate, The future of publishing on 23/04/2012 at 8:28 pm

Writers forever scooter-riders, while publishers travel in limousines? Photograph by MIL22.

Not many writers visit the book fair. ‘It’d be like bringing a cow for a stroll around a meat market,’ said one editor.

report on the London Book Fair by Patrick Barkham, 18 April 2012

[ the date is what matters most, here: ]… Publishing is moving towards a crisis. One should expect to see a number of respected publishing houses quietly exit the scene.  […]  Authors’ incomes are low for an embarrassingly simple reason: publishers do not sell enough copies of their books. […] For every copy of a hardcover book sold at its normal retail price, one book is sold as a remainder – a book that goes from the publisher to the remainder dealer for less than the cost of producing it and with zero income to the author. No other industry can make this claim.

– Leonard Shatzkin, In Cold Type: Overcoming the Book Crisis, 1982

Someone once said that his favourite times in history were when things were collapsing, because that meant that something new was being born.

– Julian Barnes, The Sense of an Ending, 2011

Writers are deeply confused by e-publishing and its implications. They are mistaking friends for enemies, and embracing their most shameless exploiters – for centuries – like Little Red Riding Hood hugging the beast tricked out as her granny.

I read with eyes popping in disbelief a veteran publisher, Dan Cafaro, advising young writers to ‘mentally prepare to endure as a starving artist.’ He said that last October. Then, referring to the digital revolution, he suggested that they ‘carve out a patchwork career in the creative arts by complying with the behaviours of this new paradigm of publishing’.

How could he have come by the wisdom in his second pronouncement without understanding that the ‘paradigm’ taking shape represents the best chance that has come along – ever – to change the meek acceptance of hunger and suffering as inevitably the lot of scribes? … Yes, thank you, I have read my history. I know that this has been thoroughly conventional wisdom for a long time. But why not consider that for aeons, everywhere, the wisest heads once saw the fates of kulaks, their poorer fellow-peasants, and Hindu caste untouchables, as equally immutable – until these social doormats seized their chance for rebellion?

I would like writers who care about being able to make a reasonable living some day to get just two things right: (i) Amazon is their true friend, as this blog has explained before, and not members of the old print club, like the five publishers fined by the U.S. justice department on the 11th — with Apple – for collusive price-fixing.  (ii) Far from gobbling up book publishing on every continent and turning everyone else in the business into a forelock-tugging serf, the giant retailer could just let us rewrite the sad story of writers and their wages into a far happier narrative.

Scott Turow, the president of the American Authors’ Guild, is simply wrong to say that the antitrust suit risks ‘killing real competition in order to save the appearance of competition.’

Consider these arguments by one of the few voices of sanity in the hullabaloo over Amazon’s well-deserved victory over the price-fixers. What Eduardo Porter said in his ‘Economic Scene’ column in the New York Times last week is not merely true. It correctly puts the welfare of writers — the workers without whom there would be neither books nor e-texts — at the centre of the picture.

To believe publishers and authors, the government just handed Amazon a monopoly over the book market: The price-fixing suit against Apple and the nation’s top publishers […] will free Amazon to offer ruinous discounts in the booming new market of electronic books, drive brick-and-mortar bookstores out of existence and kill off publishers’ lucrative business of ink on paper.

[…]

Yet there is a different reading to this story. Publishing companies — like bookstores — fear they are on the losing end of a technological whirlwind of digital distribution that will make much of what they do obsolete. They would like to stop it. But though publishers may be happy to subvert competition to protect their business, this can entail a heavy cost for the rest of society.

Why have none of the hysterical media commentators Porter contradicted in his analysis – for instance, David Carr, writing for the same newspaper – met a journalist’s obligation to state the whole truth, which is that Amazon’s share of e-book sales has fallen dramatically over the last two years? As Porter says,

While Amazon remains dominant, its share of the e-book market has fallen to about 60 percent from 90 percent.

Carr dug out a law professor in New York to say, for his column: ‘It is not clear that lower prices are necessarily in the long-term interests of the public at large.’ He found a New York lawyer for a gloomy summing-up: ‘The book business is both hermetic and dwindling. There is not a drop of new capital coming into this business … The margins are low and there is almost no growth …’.

The only trouble with orchestrating this condemnation of Amazon is that the same mournful dirge was being played for book publishers thirty years ago. Then, there were no e-books or gigantic e-booksellers. E-publishing existed exclusively in the misty visions of futurists.

In In Cold Type: Overcoming the Book Crisis, Leonard Shatzkin, a respected senior executive in the New York book business, wrote three decades ago:

There is no longer very much doubt that trade book publishing is suffering from more than its share of our present economic malaise … The immediate future for … book publishing in general is bleak …’. [his ital.]

A number-cruncher at heart, Shatzkin diagnosed poor sales forecasting and inefficient stocking and inventory management as the chief cause of book business woes. He dreamt up complex mathematical formulae for calculating the ideal size of a publisher’s sales force, and techniques of regression analysis for projecting book sales.

Though it is clear throughout his book that he was a civilised man who cared about readers, sound editorial policies, and publishing’s ‘contribution to the health of our democratic culture’, only one of his sixteen chapters was devoted to writers: ‘Don’t Forget the Author’. Who does his book treat as the lead characters in the business? Publishers, book distributors, and booksellers.

Encapsulating his recommendations for curing publishing of its ills, he advocated precisely the reverse of what actually happened after Amazon entered the scene about ten years later – that publishers aim at complete control of the book business by wresting power from book distributors:

It does not seem too far-fetched to suggest that some of the larger publishers will some day make publisher control of inventory a condition for doing business with a book retailer. […] The introduction of rational, publisher-controlled and publisher-responsible distribution implies other desirable consequences. […] Distribution controlled by the publisher will reduce the shameful waste resulting from the present need to guess how many copies will be needed on publication day …

And what was the happiest result he foresaw? It is hair-raisingly ironic for anyone listening to the raving by Amazon’s critics about the steady decline in book prices that it has brought about:

The reduction in production waste and in the waste of handling and processing of returns […] and all the activities concerned with distribution, should lead to a reduction in the retail price of books. Even at half their present levels, book prices will give publishers much greater margins than they now enjoy.

Ahem.

So, was Leonard Shatzkin – who died ten years ago – a lone, batty eccentric, mostly ignored by his cohorts when he wrote his book? Very much to the contrary, In Cold Type’s publisher, Boston-based Houghton-Mifflin – one of the most blue-blooded imprints in the U.S. – inserted an extraordinary note into the copyright page, which read in part:

It is not often that Houghton Mifflin adds a statement to a book it has published …[W]hen a publisher presents a book containing strong opinions about … American trade publishing, it may be thought that such a book represents, in some measure the philosophy of the publisher as well as that of the author.

Instead of publishers devouring the book chain, as Shatzkin and Houghton hoped, the panic in 2012 is about the chain – or rather, one member of it – making a meal of all publishing.

From the perspective of writers who care most about their craft and the particular manuscript they happen to be working on today, the fight is about as interesting as competition between football teams for someone whose game is boules. Yes,  certainly, who wins – and how – will have crucial consequences for their ability to make ends meet. But to survive financially, writers are better off ignoring the memory-loss endemic among Amazon’s critics and thinking flexibly, like Eduardo Porter, about a universe of possibilities lying before us:

For sure, if brick-and-mortar bookstores disappear, browsing will die with them. But writers and publishers will have plenty of other ways — think Amazon, Facebook or Google — of letting readers know about their books. E-books, moreover, can be profitable. […]  And even if every existing publisher were driven out of business, reading would probably survive. Without the middlemen, publishers might even pay higher royalties to creators.

Let us toast that prospect — make mine a two-shot latte, please.

The Kickstarter-kicking has begun: don’t let crowd-funding of pigs-in-pokes ruin the promise of micropayments

In 4th Estate moves, Micropayments, Re-arranging publishing for the 5th Estate, Social media and networking, The future of publishing on 16/04/2012 at 12:27 am

Looking for an image of a pig in a poke led to this preliminary sketch by Victor Juhasz, on his site showing visitors how he makes decisions about directing his delectable line. www.drawger.com

This post-Gutenberg blog typically takes the giraffe-necked – that is, very long – view. It hardly expects instant gratification for recommendations about the future of publishing, or suggestions for its evolution. That made it both unsurprising and shocking to find the gist of these cautions about micropayments and crowd-funding prove justified in less than a month:

  • Could crowd-funding art with cash advances amassed from micropayments be less helpful than getting artists decent compensation from micropayments collected for finished work?
  • … [Artists] transferring the balance of cash-gathering sweat to work that has yet to be done is surely a bad idea …
  • There is some danger that disappointment with microfunding could lead to disenchantment with micropayments of every kind. That could delay the shift from conventional ways of selling art (through publishers, galleries and so on) to the liberating alternatives that new technological inventions have begun to bring us.

Only six months ago, Gizmodo, one of the most influential technology-watching sites on the web – it counted Steve Jobs among its avid readers – was raving about the prospects of online fundraising for new projects of every sort, from new-fangled gizmos like iPad stands to artistic schemes, inventions, and gigs. Its enthusiasm was concentrated on Kickstarter, the most prominent go-between for creators and the random collections of small-scale investors contributing to ‘crowd-funding’ creative toil:

10 November 2011

Kickstarter is full of awful, ill conceived, downright dumb ideas. So is the internet. So is the universe. But it’s also festooned with crazy-good thinking, ingenuity, and imagination. It’s fun and unfettered.

[…]

Kickstarter is the only viable place any average Jonny Internet can take a decent idea and stand a chance of making it real. No venture capital vampires, no hype …

The recommendations of old print media usually follow in Gizmodo’s wake, but in January, The Economist appeared to boast about leading the applause:

This newspaper has written about Kickstarter several times in the past two years, including an overview of how crowdfunding works after the firm had raised about $15m in its first year. At the time, it was unclear whether such crowdfunding (also called micropatronage) was a passing fad or a rising alternative to conventional starter financing for creative media.

Kickstarter’s performance in 2011 bolsters the latter case.

Though that ancient cosmopolite’s bible did mention the odd disappointment for both fund-seekers and micro-patrons, it has yet to regret its championship of crowd-funding. But for Gizmodo – far more closely in touch with thinking among the twentysomethings who dominate online innovation – it was time for sackcloth and ashes a fortnight ago. In a piece headed, ‘We’re done with Kickstarter,’ Gizmodo explained:

29 March 2012

We look at hundreds of products every week. Sometimes thousands. At first all of us were pretty stoked about Kickstarter, because it seemed like a genuine font of unfettered innovation—the hive mind coming up with products that we truly needed but had never even thought of before. And maybe it was. But it’s not anymore. It’s a sea of bad videos, bad renderings, and poorly made prototypes. Some might be good. Many are poorly made. And some are downright fraudulent, taking peoples’ money without delivering the promised rewards. This has happened to me.

[…]

Hopefully Kickstarter will evolve into something a little more trustworthy that we can feel comfortable sharing with you. Because in this game, a source you can’t trust is a source you can’t use.

In comments on its lamentation, readers railed at Gizmodo in posts like this one from @anamnet:

Giz introduced me to Kickstarter and now they are the first who’re sick of it. Makes them sound like a teenage girl who’s getting over a fad.

Actually, Gizmodo deserves to be congratulated for its forthright mea culpa. Next, it would be wonderful to find on that site a piece weighing all the reasons given here for preferring post-production micropayments – especially for artists and writers, starting with this one:

Seeking and accepting money in advance can constrain creativity. Anticipating prospective backers’ anxiety about squandering even small sums on inconsequential, pig-in-a-poke projects, artists are puffing up their planned works and divulging details of visions that have yet to meet the challenge of execution. How much room for creative manoeuvring and play – or simply changing their minds – will they have when, to reward their micro-investors’ trust, they feel that they must treat proposals as promises?

… Gizmodo’s helpful admission about reading the tea leaves incorrectly on crowd-funding is not just admirable in itself but made a salutary contrast, in my week’s reading, with an older publication’s delusion that it  comprehends what readers want in post-Gutenberg publishing. An extract from a mesmerising report in the latest Private Eye:

‘Last weekend we did something extraordinary.’ That was the verdict of Guardian editor Alan Rusbridger on his ‘Open Weekend’ … at which readers descended on the paper’s offices to gawp at [Guardian journalists].

Never mind that the newspaper is losing money galore. The bring-your-readers-to-work idea represented the way forward for ‘Open Journalism’ – apparently something to do with internet clouds, killer apps, crowd-sourcing and trouser-presses.

Many hacks in the building looked on the jamboree with jaundiced eyes […] but were assured that this is the way forward for Journalism 4.0 as the Guardian set off on its exciting transformation from newspaper to online events organiser.

Alas! The ‘new paradigm’ seems no more profitable than the old one. After totting up the figures, Grauniad beancounters have discovered that the self-styled ‘festival of readers and reasonableness’ – attended by 5,000 people paying between  £60 and £70 – made a net loss of £150,000.

Dear Grauniad, your ‘Open Weekend’ is surely the daftest idea anyone has heard for reshaping publishing. No, your sensible readers do not wish to crowd-fund your survival. Nor do they want to pay to peer at your writers, or throw peanuts through the bars of their cages. How about showing some glimmer of grasping what this post-Gutenberg revolution is really all about? See:

Wanted: a brave newspaper for an experiment in which readers become stakeholders … & … Why a keiretsu-cooperative is a gentle transition for old media — and how about saying, ‘an exaltation of bloggers’?

Micro-funded advances for artists is good news: micropayments for finished work — like paying for mobile apps — would be better

In E-books, Micropayments, Re-arranging publishing for the 5th Estate, Social media and networking, The future of publishing on 20/03/2012 at 10:45 am

The tall droid was originally a female bimbo. Photograph: http://www.zazzle.com/starwarselection

Creativity needs flexibility, as I was reminded through the demise of someone who had a hand in creating robots who inhabit a patch of my dreams.

R2D2 is the fictional character of the last hundred years I would choose to give the run of my house – in an eye-blink – although I would settle for his Star Wars comrade, C3PO.  A domestic cleaner-robot with charm is my only hope of indoor snow – of experiencing inside my house the supreme happiness of watching frozen H2O blanket everything messy and unsightly in a landscape and turn it into a serene Japanese garden. Yes, reader, untidiness is one of my besetting sins. I like the idea of being pandered to by a droid whose raison d’être is serving humans, and it hardly matters that Threepio’s responsibilities in the George Lucas series are protocol, etiquette and translation (from ‘six million forms of communication’ – really, just look up his wiki). He is programmable. He is sophisticated. Being so much more intelligent, he would sail over the hurdle before which I always collapse – I mean, work out how to de-clutter my existence without hobbling my attempts to do the few things that justify it. He would strap his frilly apron in place and get on with it, expecting me to do no more than keep his antivirus software up-to-date.

But Threepio might never have found his way onto cinema screens. If not for a sort of creative miscarriage, he would not have been born, and this relates to a question I have been weighing since last week’s post about micropayments. Could crowd-funding art with cash advances amassed from micropayments be less helpful than getting artists decent compensation from micropayments collected for finished work?

Let me explain.

You can pay a carpenter an advance on a set of kitchen shelves, agree on a design and choice of wood, and receive more or less what you thought you would. Though the best carpenters are unquestionably artists of a kind, they rarely derail expectations comprehensively – delivering, say, a four-poster bed in pine instead of the birch shelving grid promised for your heirloom pots and pans. Things are rather less predictable in the arts – even in the most extroverted and collaborative branches, like film-making for mass audiences. Capricious flitting about is of the essence of imagining.

C3PO, you see, was originally a woman – not just an anyone with breasts, but ‘a tall, elegant, expression-less Art Decoesque golden female robot’. I made this discovery a few days ago in a New York Times obituary for Ralph McQuarrie,  an artist who served as a sort of medium for directors of science-fiction and fantasy films. He rendered in gouache detailed externalisations, through  interpretation, of their vague imaginative stirrings about characters – a skill he acquired as a technical illustrator and from some years spent at an animation company. The obituary records that his help was crucial to the success of George Lucas’s quest for the financial backing he needed to make Star Wars – to

… persuading the board of directors of 20th Century Fox to finance the first film in the series, and to distribute the others …

“These paintings helped George get the movie approved by Fox because it gave them something to visualize, instead of just a script,” said Steve Sansweet, the author of 16 “Star Wars” books and until recently the director of fan relations for Lucasfilm.

Now, I reckon that those producers made no fuss about a sex-change operation on what is, for some of us, one of the most endearing characters in the series (not Luke Skywalker, Princess Leia or Darth Vader, who are merely archetypes of the hero, heroine and villain as old as mankind). Hollywood has always worked the way small towns do – like publishing does in London or New York. Those producers would have known quite a lot about George Lucas before they invested in him. I could be mistaken, but am guessing that clubbiness would have given him the creative license of a friend who was once so well-connected in literary New York that her publisher made no protest when she used the advance paid for a non-fiction book about wild animals giving birth to submit, instead, a romantic novel involving safaris and social justice.

A cautiously optimistic report last Saturday by Patricia Cohen, an author and arts & culture editor at the NYT, noted surging interest in online backing for artistic projects by small-scale investors being given credit for betting on and supporting talent. Many – if not most of these actual or prospective micro-investors — do not seem to know the artists they are helping.

Some consequences and implications of this particular route to aiding struggling artists are bothering me:

● Seeking and accepting money in advance can constrain creativity. Anticipating prospective backers’ anxiety about squandering even small sums on inconsequential, pig-in-a-poke projects, artists are puffing up their planned works and divulging details of visions that have yet to meet the challenge of execution. How much room for creative manoeuvring and play – or simply changing their minds – will they have when, to reward their micro-investors’ trust, they feel that they must treat proposals as promises?

● Whereas George Lucas had Ralph McQuarrie toiling over the supply of his mock-ups, artists are being diverted from their own work to create elaborate sales pitches – like the multi-media presentations of a bold new British book-funding and publishing site, Unbound. (See, for instance, this lively appeal by five women historians for their planned collaboration on Our Reigning Queens.)

● The clarity and precision required to design and deliver an investment pitch do not fit the fuzzy, dreamlike state that neuroscience is revealing to be ideal for creativity – as Jonah Lehrer has shown in his new book on the subject.  Yes, the fund-raising part of a creator’s life can be separated more or less from doing the actual work, but there is arguably too much inimical to the right frame of mind claiming our attention already — even for people keeping their distance from social media. As Lehrer puts it, ‘… we live in an age that worships focus—we are always forcing ourselves to concentrate, chugging caffeine’, even though this bias of the zeitgeist ‘can inhibit the imagination’.

● People are confusing micro-advances for art and literature with micropayments for  work that has been completed independently and put up for sale – like the small sums that authors of short e-books or long e-essays have begun to ask for, both independently and through conventional publishers.

Of course payments ‘upfront’ and for finished work are not mutually exclusive. But transferring the balance of cash-gathering sweat to work that has yet to be done is surely a bad idea.

There is some danger that disappointment with microfunding could lead to disenchantment with micropayments of every kind. That could delay the shift from conventional ways of selling art (through publishers, galleries and so on) to the liberating alternatives that new technological inventions have begun to bring us.

I am thinking once again of Threepio’s trans-gender leap. What if one of George Lucas’s backers for a Star Wars script financed by micro-investors had been an ardent feminist who contributed $500 for the pleasure of introducing audiences to a female robot in a key supporting role – and then had to confront  the horror – oh, the horror!  — of a gender re-programming?

… I say, let’s focus on using micropayments to make it easy for painters, film-makers, sculptors, writers, musicians and their kin to be paid for their ‘products’ — as easy as for developers of software apps for our portable electrovices. ( Sorry, that was meant to read, electronic devices.)

The market for apps has been booming. Why should someone who can afford to pay €3.47 — or its equivalent — for an electronic game app not part as readily with the same amount for a short story by an up-and-coming Gabriel Garcia Marquez, and be drawn inexorably, blissfully and unforgettably into an opening like this one, for GGM’s ‘Maria Dos Prazeres’:

The man from the undertaking establishment was so punctual that Maria dos Prazeres was still in her bathrobe, with her hair in curlers, and she just had time to put a red rose behind her ear to keep from looking as unattractive as she felt …

Do we need a campaign for micropayments to support ‘lyric perception’?

In Micropayments, Re-arranging publishing for the 5th Estate, The future of publishing on 12/03/2012 at 10:00 am

Photograph by MIL22

This helpless thing, lyric perception, is an authentic response to the world’s impossible contradictions which seem to resolve themselves, finally, as beauty. In fact, I believe that lyricism represents a form of courage, for it is the only response as thoroughly vulnerable as the jeopardized world itself is.

Patricia Hampl,  Spillville,  1987

'1 2 3 4 QUARTETTO b' MIL22

As more writers and artists without formal qualifications but with undeniable gifts find audiences for their work on the net, will micropayments finally take off?

By micropayments I mean fractions of €10 or $10 notes – or their equivalent – paid through a transactional service like Kachingle or Flattr to look at an image or video, read a text, or listen to a musical performance or composition. These are payments so minuscule that they barely register with our pocketbooks, but do earn their creators some measurable income in the aggregate.

Popular writers and artists would still far out-earn rivals who cater to more specialised tastes, but some of those appreciated by smaller audiences might be able to retain more of the earnings that they must give away, at present, to middlemen they cannot really afford to pay at all – intermediaries who rarely have the time or inclination to spend much time promoting their work.

So far, so-called Millennials – the generation in their twenties and early thirties now shaping our experience of the net — have shown little enthusiasm for micro-transactions. Their complaints about feeling cheated by corporate middlemen in the music business, when obliged to pay for the pleasure of  ‘sharing’ a song, are not completely incomprehensible.

But why are they so unenthusiastic about experimenting with micropayments — direct transactions between buyers and sellers?

Many ardent campaigners for the so-called ‘Freemium’ economy willingly pay small ransoms for the latest gadgets – even when these are only minor improvements or enhancements of last year’s versions, and are designed to fatten the profits of the hated capitalists. Few of them learn to cook simple meals from scratch: they are happy to pay huge mark-ups for bland microwaveable fare cooked and packaged by giant corporations, or to patronise  fast-food chains.

Why is it seemingly only art that turns them into Scrooges?

If more Millennials come to see themselves as artists, writers and musicians in years to come – using the democratic new publishing tools – will they become less unsympathetic?

Now, net-shunning Private Eye outranks even The Economist as Britain’s most popular current affairs magazine

In 4th Estate moves, Blogging and bloggers, Cooperatives, Leveson Inquiry, Re-arranging publishing for the 5th Estate, The 5th Estate in action, The future of publishing on 05/03/2012 at 9:00 am

Ian Hislop, who has been Private Eye's editor since 1986

Private Eye cover, 12 April 2008

All hail Private Eye, whose circulation grew by more than ten per cent last year, when so many famous names linked to old media were — are — howling about print meeting its doom.

All hail Private Eye, not least because, as far as I can tell, no one in mainstream media has, on this occasion. There have been no laurel wreaths from its rivals, no adulatory editorials or delving into the reasons for its astonishing success since the Audit Bureau of Circulations released the latest figures in mid-February – although the media section of one broadsheet did carry brief news items on the subject.

All hail Private Eye because, in spite of its (affectionate) marginalisation as a ‘satirical magazine,’ it looks as if it could be becoming Britons’ most reliable source of printed information about what is happening in the UK — or close to that. The trade publication Media Week anointed it ‘the leading news and current affairs magazine by issue in the country, nearly 18,000 copies ahead of The Economist,’ with the minor qualifier that ‘its rival title is published weekly.’ (That qualifier is probably meaningless, since I reckon that most subscribers would be delighted to buy it once a week.)

There is no reason to disagree with the Eye’s managing director, Sheila Molnar, who explained two years ago that ‘People always turn to us in times of trouble because they trust us. With the MPs’ expenses row and the banks, people trust Private Eye and what they read in it.’

Though the Eye has no digital edition and is virtually ignoring the internet, its pages are saturated with the fearless, irreverent, outsider ethos of the web and blogging world – most obvious in its ‘Street of Shame’ column. There, as its editor Ian Hislop told Lord Justice Leveson in January at the official Inquiry into press culture and standards, his writers concentrate on the foibles of the 4th Estate — on

… stories about

journalists misbehaving. It tends to be anything from

making up stories, drunkenness, stealing stories from

each other, printing things that are totally and utterly

untrue, promoting each other for reasons that aren’t

terribly ethical, sucking up to their proprietors, being

told what to do by their proprietors, running stories

because their proprietors insist on it, marshalling the

facts towards a conclusion that they’ve already decided

on.

Private Eye’s robustness confirms these suspicions at post-Gutenberg about the secrets of media thriving in the transition to the 5th Estate – in its case, with only token contributions to its operating budget from advertisers, which is why it cannot afford to give away its contents on the net:

It is strictly non-partisan

The political left, right and centre are all flayed with equal relish. As noted here last month, highly-placed apologists for a worrying shift in 4th Estate practices feel that there is nothing wrong with abandoning political neutrality – but a reader poll on the site of The Economist shows that this is, overwhelmingly, the very opposite of what the public wants.

It is – without fear or favour – supplying the uncomfortable, true facts indispensable to government by the people, or what we call democracy

It might just as well be called The Whistleblower Wire. It tackles malfeasance as no other publication does, across a staggering breadth of public life. A small sample: ‘Called to Ordure’ (parliamentary proceedings); ‘Medicine Balls’ (mainly, the National Health Service); ‘Signal Failures’ (the railway network); ‘The Agri Brigade’ (farming and food policies); ‘Rotten Boroughs’ (local government); ‘Music and Musicians’; ‘Keeping the Lights On’ (the law and lawyers); ‘Books and Bookmen’ (cronyism in book publishing).

It relies on its readers for its peerless investigative reporting

… and did so long before the internet came along with its promise of building reader ‘communities’.  As Ian Hislop said in his Leveson evidence, his magazine

operates as a sort of club where people not only buy the

magazine, they write a lot of it, which is the principle

we work on. Broadly, the sources come from people

inside their professions, so the medical column, the

column about energy, the pieces in the back, a lot of

those are given by people directly involved.

None of its content is influenced by advertising

As it does not run on the advertising-centred business model for publishing — unlike virtually every other great name in print journalism — it has no need to court or bow to corporate panjandrums and satraps, and its articles are not distorted by their manipulations.

Its success underlines the undesirability of concentrated media ownership, as it has the extreme editorial independence only possible when a publication is not beholden to any single media mogul or proprietor trading favours, buying influence, or vulnerable to manipulation or blackmail

In some ways, Private Eye can be seen as an early prototype of the ‘keiretsu-cooperative,’ a model for post-Gutenberg publishing  in which sites are co-owned with clubs of reader-contributors. Its Wikipedia entry lists no fewer than seventeen shareholders, and says that the magazine has never disclosed exactly who has contributed what to its capitalization and upkeep.

What is an instance of this magazine’s uniqueness and indispensability? The other day, when all the broadsheets reported that the education secretary, Michael Gove, had condemned the Leveson Inquiry for its ‘chilling effect’ on the media, they failed to explain why he was complaining so bitterly about an investigation initiated by his own leader, David Cameron, and in the same tirade, lauding Rupert’s Murdoch’s launch of the Sun on Sunday. They also offered not a single example of what noble journalism the Inquiry has supposedly been inhibiting — just as he failed to do.

Mystification over all that was beginning to make me feel mildly unhinged when the latest Eye arrived. There I discovered that the education secretary is married to  — well, well, well, a journalist on the Times. And who owns the Times? Let us say, a certain Australian-born media mogul.

And, returning briefly to the subject of ownership … As diligent use of both inductive and deductive logic has yet to yield incontrovertible proof of his existence, I must reluctantly dismiss as speculation all hints to the effect that Private Eye does in fact have a proprietor — a reclusive individual writing occasionally under the rubric, ‘A Message From Lord Gnome’. The same goes for any suggestion that he is simply too shy or coy to (a) scotch rumours that his life’s ambition is to be more elusive than the putative Higgs boson particle, and (b), admit that he has no help from ghostwriters in recording his sublime meditations, as on the subject of the recent fate of bankers:

[W]here, we must ask, will this witchhunt end? Which other leading figures in the economic life of our country will be next to be hunted down, to be publicly humiliated, as their names are execrated across the land?

Why a keiretsu-cooperative is a gentle transition for old media — and how about saying, ‘an exaltation of bloggers’?

In 4th Estate moves, Blogging and bloggers, Cooperatives, Re-arranging publishing for the 5th Estate, Social media and networking, The 5th Estate in action, The future of publishing on 21/02/2012 at 9:27 am

Parallel and convergent thinking about co-ownership

What’s in a name?

A lot, I suspect, when the subject is cooperatives.

Writers delete or tear up drafts, painters scrape paint off canvases that refuse to match the visions of a mind’s eye – and versions of co-owned enterprises, surely hundreds of thousands of them over the years, have ended up on some equivalent of the cutting-room floor.

But associations with failures of the past should hardly be allowed to stain the excellent solution cooperatives could be. Certainly not now, when – as noted on post-Gutenberg last week in a post about Facebook – the World Wide Web is proving to be a matchless engine for running them, and getting around the classic banes of collaborative ownership and administration.

What if our name for these organisations has become the chief enemy of their promise? Should we call them something else? Say, leaps – as in a leap of leopards, to convey a  jump in the right direction for co-ownership and co-action? Peer-to-peer pods, anyone? Straightforwardly, collaboratives? Or just flats, perhaps, as shorthand emphasising that these are anti-hierarchical, anti-authoritarian and decentralised structures.

The next few years should see the evolution of specialised terms for variations of such online organisations – or simply net-related groupings – that meet different needs. I have for some time been fondly considering an exaltation of bloggers for our key-tapping multitude, in a nod to the seductive title of James Lipton’s book about collective nouns, An Exaltation of Larks.

Since last week, search engines have led me to others who think that Facebook should be turned into a cooperative – although there was little open support for this suggestion when it was first proposed under the screen name ‘postgutenberg’ last September in a comment beneath David Mitchell’s semi-serious call for the ‘nationalisation’ of the social mega-network. (That comment, too, was inexplicably censored by The Guardian, but I have a copy of the page as it was before the axe descended.)

A writer for Reuters, Paul Smalera, carefully set out the reasons why a collaboratively owned and run Facebook makes sense:

Why not share the company itself? It’s fine to talk about technology’s power to change the world if you’re the one who’s going to profit from it. But this isn’t really a change […] it should become a nearly one-of-a-kind company for the technology sector: a co-op.

[…]

Facebook wouldn’t be forgoing its fundraising if it abandoned its IPO and became a co-op. [...] In Facebook’s virtual community, its 845 million users could easily pay a small sum — say $5 in the U.S. and some locally adjusted equivalent in other countries — to become an owner. Some of that money would be used to buy out existing stock owners and set up the new management model — it would still have Zuckerberg as CEO with a management team, but with the same one vote that every other member has. Over time, if Facebook’s owners keep the cost of becoming a member as low as possible without in any way starving the site for cash, Facebook could even become the world’s first trillion-dollar company — just in a way no one has ever previously imagined.

He went on to give even more specific suggestions for how it might operate:

Facebook already offers voting tools, organization pages, recommendation links, polling, etc. With the help of a management team and committee structure, it would be pretty easy to let members assign themselves to committees and shape Facebook into the community they want it to be.

[…]

[T]hink of a sample proposal. Say a user wants Facebook to give 10 percent of its income to charity.

1. She creates a new page and persuades her friends to follow it. The page holds the pro and con discussions of the proposal.

2. After hitting a certain threshold of followers, the page makes the Revenue Committee agenda, where a subcommittee is assigned to study its feasibility and write a summary about the proposal’s impact on Facebook, including how it would affect the bottom line.

3. The committee then votes on the summary — if it’s approved, it goes into a general Facebook meeting, where the entire user base gets to vote. […]

Commenters on the Smalera piece were understandably pessimistic about the chances of Mark Zuckerberg handing over Facebook to its members. So was a colleague of his, Edward Hadas, in a critical but beautifully balanced consideration of his arguments a few days later. He concluded on an encouraging note:

[T]he limited success of the cooperative movement does not equate to a resounding triumph for its ideological opposite – the shareholder value cult. If profits were all that mattered for the economy, then more than a quarter of all American workers would not be employed by enterprises that function, often quite well, without profit motive – 17 percent by governments and another 11 percent by private, not-for-profit, organisations.

[…]

In organising the economy, greedy schemers and utopian dreamers are not the only alternatives. Like well-run government agencies and prudent shareholder-owned companies, well-designed cooperatives can be efficient servants of the common good.

The expectation of resistance to a pure cooperative explains why the keirestu-cooperative — first proposed two years ago for the evolution of publishing – does not entail starting a co-owned enterprise from scratch.

It lays out, instead, a scheme that amounts to a halfway house for old print media moving into the future. A newspaper publisher could experiment with sharing ownership of a segment of its site with readers paying small sums for their subscriptions or shares. This section would ideally be one in which readers already contribute most of the content today, in their role as commenters.

As part of the experiment, the co-owners would share any profits from advertising attracted to the trial site, which would give them an extra incentive to lure more readers and part-owners to it.

Setting up such a site – starting with software design and registering co-owners – would cost money. A newspaper publisher could share that, and the expense of site administration, by entering simultaneously into a funding partnership with, say, a book publisher catering to essentially the same audience.

That would make for a collaboration resembling the loose affiliations between firms that the Japanese call a keiretsu.

People who reject that word as too exotic need to know that it is easy to say – ky-ret-su – and should remember that there was a time when we were just as frightened of the word karaoke, which has since become as unremarkable as pizza.

The scheme is all. A keiretsu-cooperative by any other name would be fine by me – as long as someone, I mean, some few, are brave enough to try it out.

A better Facebook — or why cooperatives run on the web should work better than the old hippie kind

In Blogging and bloggers, Cooperatives, Social media and networking, The 5th Estate in action, The future of publishing on 14/02/2012 at 12:00 am

‘Sometimes it lasts in love, but sometimes it hurts instead.’ When the music suddenly breaks from its expected pattern, our sympathetic nervous system goes on high alert; our hearts race and we start to sweat … [E]motionally intense music releases dopamine in the pleasure and reward centres of the brain, similar to the effects of food, sex and drugs.’

Anatomy of a Tear-Jerker,’

Michaeleen Doucleff,  The Wall Street Journal, 11 February 2012

Digesting a grisly dissection of the bio-chemical effects of romance set to music in a financial newspaper told me that February the 14th can only become a more diabolical conspiracy between commercial and scientific calculation.

No sooner had I slogged through the neuroscientific perspective on l’amour than I found an email message from Hewlett-Packard offering me a 50 per cent discount on printer ink with the coupon code ‘HPLOVE20’. The promotion was not stingy with fake sentiment: ‘Our adoration for you is lasting – this offer is not.’

And there you have the reasons why post-gutenberg.com would rather dedicate today not to courtship or its consequences but to the perfect potential marriage of means and ends that we have in the World Wide Web — for redesigning the way companies make money from social networking.

The plan for this Alternative Valentine’s Day was inspired by reading Deborah Orr’s thoughtful anti-Facebook protest in The Guardian last week:

“While the US was extolling the virtues of neoliberal corporatism […] Tim Berners-Lee was inventing the world wide web, and gifting it to the planet, for people like Mark Zuckerberg to exploit.”

And to make sure no one had missed the significance of what she said, commenters on her piece underlined its essence:

Not sure how many will realise that what Deborah is saying amounts to this:

(i) Tim Berners-Lee, while working as a research scientist in Geneva, gave us all the World Wide Web for nothing

(ii) Facebook users are giving the world information about themselves for nothing

(iii) Mark Zuckerberg came along and used Tim’s and everyone else’s generosity to everyone else to make a pile for himself.

1 extremely remarkable member of the 1% indeed.

When will the average Facebook user catch on?

That users are beginning to grasp the dimensions of the Facebook heist – in plain sight and with the full cooperation of its victims – is clear from  newspaper articles elsewhere:

Facebook Users Ask, ‘Where’s Our Cut?

Nick Bilton

The New York Times

February 5, 2012, 11:00 am

SAN FRANCISCO — By my calculation, Mark Zuckerberg, Facebook’s founder and chief executive, owes me about $50.

Without me, and the other 844,999,999 people poking, liking and sharing on the site, Facebook would look like a scene from the postapocalyptic movie “The Day After Tomorrow”: bleak, desolate and really quite sad. (Or MySpace, if that is easier to imagine.) Facebook surely would never be valued at anything close to $100 billion, which it very well could be in its coming initial public offering.

So all this leaves me with a question: Where’s my cut? I helped build this thing, too. Facebook laid the foundation of the house and put in the plumbing, but we put up the walls, picked out the furniture, painted and hung photos, and invited everyone over for dinner parties.

Some of Deborah Orr’s commenters – or at least one – thought the remedy for this injustice obvious:

[ lightly edited for repetition ]

[W]e need to start a movement to turn Facebook into a giant cooperative — in which the users make up the rules, and personal information is not sold to anyone.

[…]

Alternatively, …I have heard that a new, improved Mark Zuckerberg wants to be perceived as a force for good in society — and that he is clashing with the strictly business-oriented senior executives in his company over this…. If he’s serious, why not acknowledge that Facebook’s users supply the personal information about themselves that he has exploited to get rich — as Deborah Orr says — and that this is deeply wrong, …and flip ownership of his company over to Facebook’s members?

Lots of us had our first encounters with cooperatives in the 1970s — as places owned and run by early evangelists for whole-grain and organic foods that were hard to find anywhere else. Sometimes, those hairy hippies operated cafés where you could eat earnest, do-gooder sandwiches fringed with medicinal bean sprouts and tasting like specially aged damp sawdust.

Many such organisations disintegrated because of warring and secretive factions that did not always share what they knew; slow communication between members; the logistical difficulties that meeting in person often entailed, and confusion about aims and aspirations.

For cooperatives using these digital thingies we all have now, many of those problems would never arise.  The new tools make it easy for everyone to see the same information, and to spell out goals and policies crisply. And, as the same commenter said.

To run an organisation designed as a cooperative, everyone involved could study complex new information together online, and decide questions at the blinding speed that, … for instance, … The Guardian’s opinion polls work on this very site.

Consider, please:

‘the scheme of social organisation which places the means of production of wealth and the distribution of that wealth into the hands of the community.’

That is a dictionary definition (Chambers) of what became a dirty word for many of us, because the idea was so corrupted in its execution. Yes, I mean, socialism.

But that was before this means of communicating and transparent  decision-making was invented.

A hybrid between socialism and capitalism is what we need as a transitional scheme, and you can download a no-holds-barred exchange on that subject here (a free download: see the comments and response to them at the end, if in a hurry): The Keiretsu-Cooperative: a Model for Post-Gutenberg Publishing http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1532173

Well alright, I’ll admit that those comments closely echo sentiments expressed on this blog. They might even have been made by the same tiresome blogger.

Cooperatives sound embarrassingly utopian. But they are the finest examples of socialism in action that we have. An earlier entry in this spot quoted an authority on the subject saying that in the U.S., capitalism’s Mecca, 13 million American already work for these organisations.

Some people react to philosophical nudges in that direction with a silence in which you can almost hear them thinking, ‘But who are you to propose evolutionary possibilities for business?

Actually, nobody. But Albert Einstein anticipated this little difficulty. In a 1949 essay, ‘Why Socialism?’,  he reached far back into history to analyse people’s reluctance to break out of well-established patterns, noting:

The priests, in control of education, made the class division of society into a permanent institution and created a system of values by which the people were thenceforth, to a large extent unconsciously, guided in their social behavior.

But, as he said in his conclusion,

[W]e should not assume that experts are the only ones who have a right to express themselves on questions affecting the organization of society.

Where is it engraved in stone that Facebook has to be owned by a wealthy 1 per cent enriched by the 99 per cent sharing their private information as unquestioningly as feudal serfs?

Publishing and the gatekeepers’ understandable fear of the penalty: what if we vetted and corrected people before they could speak?

In Re-arranging publishing for the 5th Estate, The future of publishing on 30/01/2012 at 12:15 pm

Imagine that you were an editor at a London publishing house, circa 1930 — effectively a gatekeeper at the sacred portal of literature. Would you give these lines an up or down vote?

Extract 1    [ from a poem sent to Thomas McGreevy, 4 November 1932 ]

see-saw she is blurred in sleep

she is fat she is half dead the rest is freewheeling

past the black shag the pelt

is ashen woad

snarl and howl in the wood wake all the birds

hound the whores out of the ferns

this damnfool twilight threshing in the brake

bleating to be bloodied

this crapulent hush

tear its heart out …

Extract 2    [ from a poem sent to Thomas McGreevy, 13 May 1933 ]

Donabate sad swans of Turvey Swords

pounding along in three ratios like a sonata

like a reiter [for ritter] with pummeled scrotum atra cura on

the step

Botticelli from the fork down pestling the transmission

tires bleeding voiding zeep the high road

all heaven in my sphincter

müüüüüüde now

potwalloping now through the promenaders

this trusty all-steel this super-real

bound for home like a good boy

where I was born with a clunk with the green of the larches

oh to be back in the caul now with no trusts

no fingers no spoilt loves

belting along in the meantime clutching the bike …

I found those parts of drafts of Samuel Beckett’s poetry (included in his magnificent collected letters) invigorating, even when they were not forcing bursts of oxygen from uncontrollable laughter into my lungs. My fingers danced, typing out thought-streams nearly eighty years old. Yet it is strange to consider that even now, they would earn their author, as a writer still unknown, a long string of rejections.

Because modernism was well established decades before most readers of this blog and I were born, you might take it as a foregone conclusion that Beckett’s wordy jiggle-juggling would delight any lover of literature. But in literary chat forums on the net these last few years, I have been surprised to find that too many arbiters in high positions in publishing or the teaching of literature still dismiss rambunctious free verse very like that – when unattached to any famous name – as nonsensical, pretentious or illiterate (or all three).

Why they do that would take a conversation of several pots of coffee to sort out. All I will say, for the moment, is that every day, it becomes more absurd to think of anyone being paid to decide what collections of words and thoughts should be admitted to the public domain and backed with large or small sums of money, and marketing sweat.

Pity the poor gatekeepers. They must decide which texts meet the prevailing literary standards. They must both cater to contemporary taste and anticipate its evolution. They risk becoming Frank Sinatra mocked for pontificating that ‘Rock ‘n’ roll has no future.’

What if people’s accents, intonation, vocabulary and grammar were vetted and corrected every time we opened our mouths to speak? … Well! Now that everyone can tap out unmediated texts in some form all day long, that is exactly how absurd the gatekeeping enterprise in publishing will soon seem — in a future so close that it is very nearly our present.

In addition, only fools setting up as publishers will presume to decide what is appropriate reading matter for whom. This has been on my mind since I read the following paragraph on the New York Times site yesterday:

In 1962, when “A Wrinkle in Time,” after 26 rejections, was acquired by John Farrar at Farrar, Straus & Giroux, science fiction by women and aimed at female readers was a rarity. The genre was thought to be down-market and not up to the standards of children’s literature — the stuff of pulp and comic books for errant schoolboys. Even today, girls and grown women are not generally fans. Half of 18- to 24-year-old men say that science fiction is their favorite type of book, compared with only one-fourth of young women, according to a 2010 study by the Codex Group, a consulting firm to the publishing industry. And while a sizable portion of men continue to read science fiction throughout their lives, women don’t. Thirty-two percent of adult male book buyers are science-fiction fans compared with only 12 percent of women. When Joanna Russ, one of the few successful female science-fiction writers, died last year, her obituary in The New York Times referred to her as a writer who helped “deliver science fiction into the hands of the most alien creatures the genre had yet seen — women.”

A Wrinkle in Time is a children’s book by Madeleine L’Engle that went on to win more than one literary prize. It has never been out of print.

Yes, stories like this are tediously familiar. Why should anyone but the author of a text be asked to bet on whether it can defy stereotypical reader choices?