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

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.

Leveson hearings: can a ‘blind and unreasoning’ or partisan press censoring citizen-journalists be good for democracy?

obscurity - postgutenberg@gmail.com

[ Addendum, 23 February:

Although The Guardian has unquestionably deleted courteous posts about proposals for press reform and media evolution from the Comment-is-free section of its site, as recorded on this blog on 7 November and 15 November, I might owe that newspaper an apology for suggesting in the entry below that its moderators broke links to post-gutenberg.com posted on its site in January. Please see the footnote** for details.  ]

A remarkable statement went unnoticed by the few commentators on a morning of superb theatre at the Leveson hearings on press practices, culture and ethics in Britain on 31 January.

As noted earlier on this blog, press coverage of the Leveson Inquiry has been scant. It has focused on tabloid phone-hacking and emphasised paeans to press freedom by well-known witnesses, but under-reported criticism of the media (for instance, the excoriating but mostly well-founded testimony of the former journalist and prime ministerial communications adviser Alastair Campbell.)

Giving evidence last week, Christopher Meyer, the former chairman of the Press Complaints Commission – a body roundly criticised for being too close to newspaper editors to handle accusations against them objectively — said in a fleeting aside that the press is free to be partisan in a democracy. He said that as if stating a self-evident truth, accepted as such. I could not find any record of his remark in the transcript of the proceedings, but there was this exchange between the ex-chairman and his surgically incisive interrogator, Robert Jay QC.

Q: … I think the point you’re making there is that the press is free to comment and be partisan and it’s not the role of the PCC in a democracy to seek to curb that democratic activity?

A:  Yeah, that’s fair enough.

That could stand as a marker for the extent of the shift from the last century’s ideal of a neutral press to one in which the media openly take sides – or, as The Economist put it last July, are becoming ‘more opinionated, polarised and partisan’.  Not the faintest note of doubt intruded on the former PCC chairman’s declaration or confirmation of his position on partisanship, even though media bias is not what the public wants, if we can take as representative the 73 per cent of 2,700-odd Economist readers who have so far voted ‘yes’ in answer to the question, ‘Should news organisations always remain impartial?’. Bias has rightly been worrying experts like this political scientist, who asked in 2010 on ‘a plain blog about politics‘:

Will we have a robust, vigorous, and almost completely partisan press?  Will there still be a place for neutrality?  How will this play out for state and local politics?  What kinds of norms will the partisan press develop?

Some of us who have noticed the British and American press grow more aggressively one-sided in recent years cannot help wondering whether that has meant getting fewer of the objective reports and facts that a democracy needs to make good decisions about policies and politicians.

Partisanship is disturbing in itself, when you consider the dictionary definition of ‘partisan’ as ‘adherent, esp. a blind or unreasoning adherent’ (Chambers, 2006).  How can it be consistent with this classic list of guidelines for journalists doing their ‘duty of providing the people with the information they need to be free and self-governing’ – from Bill Kovach and Tom Rosenstiel in The Elements of Journalism:

1. Journalism’s first obligation is to the truth.

2. Its first loyalty is to the citizens.

3. Its essence is discipline of verification.

4. Its practitioners must maintain an independence from those they cover.

5. It must serve as an independent monitor of power.

6. It must provide a forum for public criticism and compromise.

7. It must strive to make the significant interesting, and relevant.

8. It must keep the news comprehensive and proportional.

9. Its practitioners must be allowed to exercise their personal conscience.

Some of us have noticed ways in which partisan has begun to mean punitive – as in censoring healthy disagreement and opposition.

If we accept that a newspaper has the right to push a particular agenda at us, does that give it the right to stifle dissent about that agenda – from, for instance, citizen journalists, which all of us become when we react to articles in the comments sections of the online press? Moderators at online sites attached to famously liberal and left-wing mastheads unhesitatingly delete comments that challenge the biases of those newspapers, even when phrased cautiously and politely. (See ‘Why is The Guardian censoring debate about press reform and ignoring the Lord Chief Justice’s endorsement of citizen journalism?’)

There is proof that I am not alone in wondering about this in the Wikipedia entry for ‘Media democracy’ – a concept that elicited a curious response from an editor at the New York Times, mentioned in this spot last month.

The concept of “democratizing the media” has no real meaning within the terms of political discourse in Western society. In fact, the phrase has a paradoxical or even vaguely subversive ring to it. Citizen participation would be considered an infringement on freedom of the press, a blow struck against the independence of the media that would distort the mission they have undertaken to inform the public without fear or favor… this is because the general public must be reduced to its traditional apathy and obedience, and frightened away from the arena of political debate and action.

Addressing the Alpach Technology Forum in Germany last August, William Dutton, the outgoing director of the Oxford Internet Institute, identified ‘Journalists and the Mass Media – imitating, co-opting, competing,’ as one collective enemy of  the 5th Estate, which includes citizen-journalists. (See ‘The Future of the Internet for Networked Individuals of the Fifth Estate’.)

If not for Justice Leveson and his supremely necessary investigation, I might have been depressed by the results that came up when I typed into search boxes the once-hallowed phrase, ‘Without fear or favour’. It encapsulated a consensus among the most admirable practitioners of journalism about the importance of rising above partisanship.  When I used the English spelling of the word ‘favour’, the first Google results page brought up scarcely any links to sites unconnected with Africa, New Zealand, Australia or Malaysia. With American spelling, dropping the ‘u’, the first page of findings did supply links to sites related to the U. S., but too few of them led to anyone expressing the outrage about the increasingly hollow sound of those words that I had hoped to see.

A press that no longer sees neutrality as essential to democracy in the west would explain why some of us have been given our first visceral impressions of what samizdat resistance under the old Soviet Union felt like, as commenters repeatedly censored – improbably enough – by The Guardian, a standard-bearer for liberalism.

Since I published these posts deleted by that paper on this blog on 7 November and 15 November, interference with my comments appears to have turned covert.

In the last two weeks, every link to this site posted in comments there has been broken either by Guardian moderators or by some profoundly mysterious line of rogue code in the newspaper’s software. (Anyone curious enough to run a paranoia test can search on  ‘CheryllBarron’ beneath Peter Guillam’s contribution, ‘The capitalism debate is anaemic – it must dig deeper‘.  Compare the results from pasting the URLs I have posted there into your own browser with clicking on the same URLs on the Guardian page – which only leads to variations of ‘Oops! Page not  found’.)

‘Censor’ is a word that came to us from the Roman Empire – although it mainly alluded to a lofty being entrusted with conducting the census and guarding public morality. ‘Censorship’ was a novelty that the Gutenberg press spawned. As the historian John Hale has explained,

It was in Germany, where printing was pioneered, that censorship was first introduced. In 1475 the University of Cologne, jealous of the freelance expression of ideas, obtained from the Pope the right to grant licences for the publication of books and to punish those who published or read unauthorized ones.

[…]

By [1515] the flood of books and the realization that a new, less instructed and more excitable audience for them was being reached, moved a number of European secular authorities to insist on manuscripts being submitted to them before printing.

Who could have predicted a punitive partisan press being allowed – so far – to get away with silencing democratic opposition in our own media revolution, five centuries later?

______________________

** Links to post-gutenberg.com yielding a ‘not found’ notice

Since I reported on what appeared to be a novel form of censorship, I have discovered the identical problem on this WordPress site. Something has been – inconsistently – inserting an extra ‘http’into texts of mine where there should be only one in each URL, with results like this (the unwanted duplicate is highlighted in bold):

This curious repetition disables the link. A technical support specialist at WordPress has so far been unable to trace the trouble to its source – or explain it.

Until the investigation is concluded, I feel I owe The Guardian the benefit of the doubt – and an apology for an unjust accusation.

I hope to know more soon.

Approaching the keiretsu-cooperative: Nick Clegg, Jaron Lanier, and a bold move at Ladies’ Home Journal

… Now and then, as in this week’s entry, post-gutenberg.com will spotlight signs that the keiretsu-cooperative — a structure for co-owning media — is an idea whose time has come …

Ladies' Home Journal: Art Deco cover, 1922

Media maidens venturing boldly into the future

That the Ladies’ Home Journal – an American magazine founded in 1883 – was still being published at all came as a bigger shock than reading about its plan for avoiding extinction. It is a title I have only ever seen mentioned in biographies of writers and political history, but it apparently has a circulation of over three million. A headline caught my eye:  ‘A New Ladies’ Home Journal Written Mostly by Readers’.

Aha! I thought, could that signal an evolutionary leap in the treatment of  ‘user-generated content’? Had I stumbled on the experiment in co-owned media that is long overdue, for some of us – as a first stage of true media reform?

No it is not, but that could conceivably be the next stage of the LHJ  plan. From its March issue onwards, the magazine is to be filled with articles by amateurs paid at professional rates, whose facts will be checked by the editors. The publisher, Diane Malloy, explained that

research showed the magazine’s readers wanted more of their voices reflected in the content and to feel as if they belonged to a community.

If the LHJ  were to go on to give readers a stake in the magazine, that would ensure far more passionate commitment and loyalty to their community.

Nick Clegg

A speech for the ages by Nick Clegg

Co-owned media got an indirect vote of confidence from Nick Clegg, Britain’s deputy prime minister,  in a 16 January speech more thoughtful than any set of utterances by a politician I have seen for a long time. What he proposed, addressing business leaders in the City of London– no less – is the most intelligent solution to the widening social inequality on which the Occupy movement has focused our attention. Somehow, that clear implication of what he said went largely unreported in media coverage of the event.

[W]e … need a better distribution of power within our economy.

… [I]t’s not just shareholder power that matters. Ultimately investors seek profits … Some enlightened shareholders might see the benefits of a well-rewarded workforce, but the people best placed to look after the interests of staff are staff. And that is what, so far, has been missing from this debate: ordinary people.

[W]e don’t believe our problem is too much capitalism: we think it’s that too few people have capital. We need more individuals to have a real stake in their firms. 

Readers of this blog will know how closely aligned his conclusions are with ideas expressed here – in ‘Wanted: a brave newspaper for an experiment in which readers become stakeholders’, and ‘Co-owning media is on the horizon, and press coverage of the Leveson enquiry shows why we need this.’

In a speech last July,  the P. M.’ s deputy took a stand against the unhealthy concentration of power in the media:

[D]iversity of ownership is an indelible liberal principle because a corporate media monopoly threatens a free press almost as much as a state monopoly does.

Jaron Lanier

Jaron Lanier comes to the right conclusion about paying for content — or rather, paying whom

A super-geek he may be, down to his last dreadlock, but Jaron Lanier inspects the classic positions and tenets of the geekocracy with a coolly objective eye. He advocates compensating the ‘ordinary people’ Nick Clegg mentioned, not — so far — as stakeholders, but as suppliers of ‘content’ that media moguls and their giant corporations, like Facebook, are exploiting shamelessly. He asked in the New York Times last week:

What if ordinary users routinely earned micropayments for their contributions? If all content were valued instead of only mogul content, perhaps an information economy would elevate success for all. But under the current terms of debate that idea can barely be whispered.

Obviously, the editors at the Ladies’ Home Journal – paying their readers the same fees for content as professionals – are shouting, not  whispering, their understanding of the way media reform will now proceed.

Oxford Street branch of the John Lewis Partnership, 1936

An instructive poll for the Guardian

It was astonishing to see the results of a poll on the Guardian site related to the Clegg co-ownership proposal. Eighty-seven per cent of the poll-takers voted ‘yes’ in answer to a question referring to Britain’s most famous employee-owned company: ‘Would you like to live in a John Lewis style economy?’ That surely added up to endorsing a recommendation of  such a structure for ownership of the Guardian itself, or some part of it — even if proposals made in the online paper’s comments section for experimentally co-owning bits of it with readers  were censored more than once last year.  Ahem.

Nick Clegg and his personal think tank appeared to have anticipated precisely such — erm, discouragement, when he suggested in the same speech,

… giving employees a new, universal “Right to Request” shares. Imagine: an automatic opportunity for every employee to seek to enter into a share scheme, enjoying the tax benefits that come with it, taking what for many people might seem out of their reach, and turning it into a routine decision …

In other words, no one would be censored or punished simply for asking an employer for a stake in a company… Still, well done, Gruan, for conducting that poll.  Soon, you might almost be as brave as the Ladies’ Home Journal.

Will 2012 be the year of a great leap forward into media’s future — even at The New York Times?

Back to the future 1: barn-raising

Back to the future 2: the work of quilting bees -- Steven Heller

My new year will begin not with a resolution but a hope.

It has been a bit lonely, trying to persuade other people intimately acquainted with mainstream media to discuss specific proposals for media reform. But three short essays published in the last month – to which I am about to post links – show that I am in good company in suspecting that co-owning media with readers and viewers could be the most realistic route into the future. It is no longer quixotic to hope that the most rigid opponents of reform will give alternatives to the status quo a friendlier reception.

With any luck, I will soon be able to drop the subject of media restructuring from this blog because powerful media people persistently refusing to discuss it have, at last, picked up the torch.

My personal high-water mark for the media establishment’s resistance to the new dates from the spring of 2010, when I emailed a question to an editor near the top of The New York Times.

The press has been critical to the success of democracy as a form of government; how is it responding to its own democratisation, and how far would it be prepared to go on that road — voluntarily? If you could recommend the right person at the paper for these questions, I’d be immensely grateful.

Zzzzzzzzzing! … the editor’s reply came fast enough to set heads spinning:

I don’t know that anyone would have a specific opinion on this, at least not one that represented the Times in general. You might look to see if an editorial has ever been written about it. If not, I suspect your question doesn’t have an answer.  [my ital.]

No search engine brings up any such NYT editorial. What that response was surely supposed to impress on me was that ‘our’ never having addressed the question meant that it was inherently unanswerable.

Which is patently untrue – but that was then, and I cannot believe that anyone with a senior role in running the newspaper would respond so loftily today. The subject of co-owned institutions is not apparently off-limits for the editors there, as it is for large numbers of their fellow-citizens. Nor do they automatically dismiss it as ‘socialism’, very nearly a term of abuse in much of the U. S. — a fact that has always struck me as a bit odd about a country that is not only the home of capitalism and Ayn Rand’s woolgathering about the ‘virtues of selfishness,’ but of cherished memories of communal barn-raising and quilting bees.

On 14 December, the NYT  gave Gar Alperovitz, the author of America Beyond Capitalism, the chance to tell us, in ‘Worker-Owners of America, Unite!’:

[M]ore and more Americans are involved in co-ops, worker-owned companies and other alternatives to the traditional capitalist model. We may, in fact, be moving toward a hybrid system, something different from both traditional capitalism and socialism, without anyone even noticing.

Some 130 million Americans, for example, now participate in the ownership of co-op businesses and credit unions. More than 13 million Americans have become worker-owners of more than 11,000 employee-owned companies, six million more than belong to private-sector unions.

Out in the blogosphere, these posts were waiting to be discovered:

In a 9 December entry on the site of Harvard’s Nieman Journalism Lab, Tom Stites, the president and founder of the Banyan Project — which is building a model for web journalism as a reader-owned cooperative focusing on local news — asked: ‘Might the new web journalism model be neither for-profit nor nonprofit?’ He said, in part:

In this era of rampant deceptive business practices,[…] 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 the what a community’s people need rather than from today’s dominant approaches […] The web is inherently collaborative — just as co-ops are — and at the local level this creates the potential for civic synergy that could add still more value to co-op community journalism.

On 19 December, Jeff Jarvis, a new media expert, suggested that The New York Times should consider using a ‘reverse pay meter’.

As I ponder the future of The New York Times, it occurred to me that its pay meter could be exactly reversed. I’ll also tell you why this wouldn’t work in a minute. But in any case, this is a way to illustrate how how media are valuing our readers/users/customers opposite how we should, rewarding the freeriders and taxing—and perhaps turning away—the valuable users.

[…]

Imagine that you pay to get access to The Times. […] But whenever you add value to The Times, you earn a credit that delays the next bill.

»  You see ads, you get credit.

»  You click: more credit.

»  You come back often and read many pages: credit.

»  You promote The Times on Twitter, Facebook, Google+, or your blog: credit. The more folks share what you’ve shared, the more credit you get.

[ … and several other suggestions along these lines …]

He said in closing:

Readers bring value to sites if the sites are smart enough to have the mechanisms to recognize, exploit, and reward that value, which comes in many forms…

Regular visitors to post-Gutenberg.com will have noticed a striking overlap between the essence of the Stites and Jarvis schemes and the proposal for a ‘keiretsu-cooperative’ as the ideal structure for media of the future. (New readers will want to see: The Keiretsu-Cooperative: A Model for Post-Gutenberg Publishing.)

May this most welcome parallelism lead to actual change — soon.

In the meanwhile,  Happy New Year!