Category Archives: writers and money

Proofs of concept for a keiretsu-cooperative to succeed the data collection and ad-dependent legacy publishing model— from TikTok, the online Daily Mail … and Shakespeare

. 4th Estate moves, Big Data collection, Business models for publishing, Commercial surveillance, Cooperatives, Keiretsu-cooperative, Surveillance business model, The 5th Estate in action, The future of publishing, writers and money . , , , , , , , , , ,
By becoming a shareholder in an acting and theatre-owning joint-stock company, Shakespeare — a ‘country boy’ outsider — ‘was the first to turn playmaking into a potentially rewarding profession’ — Soul of the Age: A Biography of the Mind of William Shakespeare, Jonathan Bate

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A live scroll of 3,700 readers’ comments on U.K. taxation and a comment invitation box on the 6 March home page of the online Daily Mail look like illustrations for William Dutton’s The Fifth Estate: The Power Shift of the Digital Age

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Real-life counterparts of conceptions of things to come can appear in unlikely places, including some in the past. 

But, you may say — surely not the online Daily Mail coupled to the Chinese user-videos-plus-shopping platform, TikTok? Yes, and yes. But also from, of all people, the supreme William Shakespeare — or what literary experts and historians searching for the indisputable facts about his life have unearthed in recent decades. 

This improbable group answers the question of what evidence there is for the practicality of a keiretsu-cooperative to succeed the noxious advertising and personal data collection-dependent  surveillance business model for journalism and publishing. 

Though legacy media’s need for an innovative financing scheme and structure has proceeded from dire to desperate, this has somehow gone unmentioned in 2024’s mournful stream of reports about the decimation of employment in the news business. 

In noting that over five hundred jobs in U.S. print, broadcast and digital media fell to cost-cutters’ axes in January, Politico said that this followed layoffs of 3,087 in the same categories in 2023 and 2020’s high watermark of 16,060. A 5 March reminder in the Financial Times of 450 journalists losing their jobs in Britain’s dominant Reach publishing conglomerate last year — because of an advertising slump linked to a steep slide in its newspapers’ online reader numbers — was not accompanied by any discussion or speculation about ways to stop or reverse the trend. Legacy publishers exhibit no outward signs of interest in remedies except for tried and tired variations of subscription terms or experiments in taking paywalls up or down to limit what visitors to their sites can read. 

The New Year’s Day post here drew attention to the lone, faint glimmer in this doom-saturated panorama: old media managers do at last understand that reader-commenters are poised to become the core of their economic survival plans — the same people at the heart of the keiretsu-cooperative. 

These are the visitors — effectively, informal, indie micro-publishers — luring and engaging site traffic who in 2010 were still commonly referred to as ‘bloggers’. January’s  p-G jottings about them recorded that the business brains at some newspapers have begun to treat reader-commenters’ reactions and other ‘content’ like gold dust. As a result, some of them have begun — shamefully — to slap copyright claims with no legal justification onto those contributions from audience members, including many who are handing over cash as site subscribers.

How long is it going to take before most of them understand all the transformations underway sufficiently to see that reader-commenters are well on their way to morphing into: 

— CONVERSATION PARTNERS ON EQUAL TERMS 

or ‘interactive’ audiences who are no longer mere receivers for broadcasts by newspaper reporters and opinion writers. On 6 March, anyone popping in at the online Daily Mail would have noticed an apparent experiment — placing at the centre of its home page a blank commenting box inviting readers to have their say on the U.K. government’s spring taxation and budget announcement. 

This invitation was set in a screen within a screen with a moving scroll of other readers’ thoughts on the topic (see screenshot above, taken when the comment count had reached 3,700). 

The overall impression was of a live demo of William Dutton’s portrayals in The Fifth Estate (2023) of ‘networked individuals’ becoming powerful as ‘a new source of accountability, not only in government and politics but also in all sectors of society.’

— CO-PERFORMERS 

The online Daily Mail is the world’s fifth most-popular English language news title. It also magnetises more visitors to TikTok than any other purveyor of news on this Chinese-owned (ByteDance) social media platform where anyone can upload short videos they have made; earn cash from advertisers through product placements and promotions if they can lure enough traffic; and buy things hawked to them.

Publishing for people catching up on news where they go for relief from boredom, to play amateur auteur or entrepreneur, or to risk becoming shopaholics looks unavoidably like the future of journalism — because these people are disproportionately the youngest adults. 

In a mid-January feather-fluffing announcement, the Daily Mail Online claimed to have ‘surpassed 10 million followers’ on TikTok (estimated by backlinko.com, to have soared beyond X-Twitter, Telegram, Reddit, Pinterest and Snapchat in platform popularity measured by ‘monthly active users.’) 

The paper summed up its TikTok triumph as icing on the cake for its ‘unrivalled position as no.1 for engagement with audiences across all platforms.’ It explained that ‘[a]ccording to research by the Reuters Institute for the Study of Journalism, 20 per cent of 18-24s use TikTok to learn about current events, which was an increase of five percentage points from the previous year.’ A follow-up story in February quoted other research ‘showing that more than 40 per cent of 18-24s receive news from the Chinese-owned social media giant once or more times a day, compared with 19 per cent for the BBC, Instagram (44 per cent), Facebook (33 per cent) and Elon Musk‘s X (24 per cent), formerly known as Twitter.’

Luck being what luck is, my 2010 outline of a scheme for post-Gutenberg publishing, six years before the birth of TikTok, began:

New communication technologies have created a karaoke world. It is not just that we have the means to ensure, cheaply and easily, that—as Andy Warhol predicted— everyone could be world-famous for fifteen minutes … Practically nobody is content any more to be just a spectator, reader, passive listener or viewer. Audience participation as well as the right to talk back—which includes non-expert reviewing of works or performances by trained and seasoned professionals—have become absolutely standard expectations. 

— STAKEHOLDERS AND CO-DETERMINISTS

Few card-carrying cultural elitists inclined to shrug loftily about TikTokers earning cash from homespun, unmediated webcasting — making them de facto stakeholders in the platform’s success — will know that without the democratisation of culture in his own revolutionary epoch, we would never have heard of William Shakespeare. That man of mystery incommensurably more gifted than any other literary genius — forget TikTokers — has emerged from recent literary and historical sleuthing not as the aristocrat lurking behind a pseudonym in the centuries-old rumour, but incontestably a ‘country boy.’ 

He was ‘the grandson of a yeoman farmer and the son of a failed provincial shopkeeper,’ in his portrait by today’s pre-eminent Shakespearean scholar, Jonathan Bate, in Soul of the Age: A Biography of the Mind of William Shakespeare (2009). He got his start in playwriting by polishing the scripts of other writers while enduring mockery as ‘an upstart crow,’ a ‘rude groom,’ and a ‘peasant.’

But this book’s most unexpected revelation, for many, will be about Shakespeare’s business acumen, an asset as rare in writers then as it is now. He died a prosperous landowner at fifty-two, leaving his wife and the children he had fathered before his twenty-first birthday well provided for from his earnings as a shareholder in an acting company that operated very like a cross between an artists’ collective and a cooperative venture in our time.

Through becoming a shareholder, Shakespeare was the first to turn play-making into a potentially rewarding profession that could support a marriage and a family. His fortune was made not by a literary innovation but by a business decision. In his early career, Shakespeare would have noted the raw deal suffered by the script writers, who were paid only a few pounds per play. The serious money was made by manager Henslowe and lead actor Alleyn, who ran the Rose Theatre as an entrepreneurial partnership. Shakespeare and his close associates came up with an alternative arrangement: the Lord Chamberlain’s Men was formed in 1594 as a joint-stock company, with the profits shared among the players.

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What could have been the equivalent of reader-commenter power for Shakespearean audiences? 

The 20th-century historian John Hale has shown that unlike the ‘patron-fostered painters of Italy, the Low Countries and Germany,’ the Bard ‘was reliant on popular support, as were his fellow playwrights.’ Their works and the venues for their performances were part of a democratically inclined ‘theatrical machinery that both responded to and increased the number of spectators and dramatists.’ Another impression from reading The Civilization of Europe in the Renaissance is  of how uncannily today’s social media frenzy resembles the explosion in early 17th-century mass entertainment in London:

During the boom period of new plays, 1600-10 … the places available each year in the commercial theatre, discounting Sundays and Lent, may have topped a staggering two million when the population of London was two hundred and fifty thousand. Never before in Europe had there been so heavy a vote of confidence in a single form of cultural activity.

In another prefiguring of the present, Civilization shows the joys of expanding free expression for playwrights soon proving to be too much for the authorities:

Altogether the appetite for theatrical dialogue and effects was so constant as to enable a playwright to indulge his own aspirations short of flagrantly inviting political and religious censorship; bawdiness was let slip with a shrug, a contributory reason for the Puritan criticism which led eventually, in 1642, to the order that the theatres should be closed altogether, an order honoured almost as much in the breach as in the observance.

Some of the Puritans especially disgusted by their inability to control this tide in public affairs presumably let a different one carry them away to found a new colony on the other side of the sea. But here we are now, being reminded that the most satisfying narrative arcs can turn out to be circles. 

The keiretsu-cooperative seems to rhyme naturally with what has gone before, not just with what will or should be.

What should a writer’s position be on the battle between Amazon and the Hachette publishing conglomerate? Let’s have some basic information, for a start

. Culture after Gutenberg, E-books, The future of publishing, writers and money . , , ,

alley

– photograph by MIL22

As print publishing firms competing with digital rivals have less than ever to give the majority of writers – who have no record as best-sellers — where should scribblers’ sympathies lie in the fight between the Hachette publishing empire and Amazon?

The essential details of what they are quarrelling about are being hidden from us on grounds of commercial secrecy — as noted in one report after another**. These are negotiations conducted down dark alleys. Without those details, we can only puzzle over the tones of ringing certainty in which newspaper commentators have unanimously been denouncing Amazon – although the bookselling giant was plainly wrong to punish Hachette and its authors in these ways noted by The Los Angeles Times:

Amazon is subjecting many books from Hachette to artificial purchase delays. Books that had been available for next-day delivery now take 2-5 weeks to ship. Some titles don’t surface in search as they should. … As a result, Hachette will sell fewer books.

Strangely absent from coverage of the war is an eye-popping point for writers made by a sharp-eyed reader of The New York Times:

To the Editor:

Neither Amazon nor the publishers are pure of heart. Amazon is facing serious pressure on the profitability front from investors, so it is looking to increase margins and reduce costs.

The publishers see e-books as their largest profit area. A Publisher’s Lunch article last year showed the profit breakdown for HarperCollins:A $27.99 hardcover provides a $5.67 profit to the publisher and a $4.20 royalty to the author; a $14.99 e-book provides a $7.87 profit to the publisher and a $2.62 royalty to the author.

While the publishers are making a claim to a noble struggle against Amazon’s efforts to devalue publishing, they are also seeking to protect their higher profits on e-books, not higher royalties for writers. While Amazon claims to want to offer readers the best pricing, Amazon has no qualms about using its powerful market leverage to get what it seeks while inflicting collateral pain on readers to boost its profits.

The two players that are suffering in this situation are the authors (book sales delayed or prevented, dramatically lower royalties) and the consumers, many of whom have invested heavily in the Kindle-based environment.

CHRIS WATSON

Barrington, R.I., May 31, 2014

For authors to extract a bigger share of e-royalties, we are guessing that more scribblers with market power ranging from middling to great will have to start publishing e-books on their own, and do well at it. What advantages of being conventionally published do they give up, when they take the indie road? Fewer and fewer. Many more authors who have tried both the old route to being published and the new say exactly what this Guardian reader did last month, reacting in the comments section of a blog post about self-publishing:

remittancegirl

29 May 2014

I’m not a fan of self-publishing, but I don’t think this article addresses some of the salient reasons for its rise. Nothing is mentioned of the radical shift in traditional publishing to put marketing efforts into nothing but established writers with blockbuster track records, or its abandonment of a good editorial process.

Having been one of those writers who did get published by a major publisher, it quickly became obvious that it was a waste of time and financially costly. The royalty rates offered (especially on electronic sales) are, frankly, laughable. There is no effort at marketing. As a new author, you are expected to do all the publicity and marketing for yourself anyway. The least one might expect was a decent line edit, but the book I published through a major house was published with typographical errors aplenty. So, exactly how does it benefit new writers to even consider submitting to a traditional publisher?

Forget the money. What about the cultural landscape? Are publishers are lining up to publish radically new forms of narrative? No. In fact, the chances of you getting a publishing deal for your book depends, most notably, on how much it resembles another book that’s done well.

And if a writer opts for self-publishing and does well with it, there is a far better chance of having a major publisher will pick you up, republish your work, offer far better terms, better editors and some marketing – now that you no longer need it.

… [T]he disdain in this article for the self-published work doesn’t take into account what is driving many authors to circumvent the publishing apparatus altogether.

The Independent noted,

At least one author, Barry Eisler, is standing up for Amazon, saying: “More people are buying more books than ever and more people are making a living by writing them. Why do millionaire authors want to destroy the one company that’s made this all possible?”

The problem for many in publishing is that the dominance of this one company, with its Kindle store, keeps growing. It is estimated that e-book sales will soar to almost $9bn this year in America, while print book sales fall below $20bn, down from $26bn in 2010.

Yes, it’s clear from those numbers that Amazon has too much power in e-publishing. But to see what can be done about it, let’s have some more information about precisely what terms it was arguing about with Hachette.

Transparency, please.

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** For instance, although The Los Angeles Times’s handy summary of the dispute is highlighted as an instance of ‘an unusually public battle’ — in ‘Amazon and Hachette: The dispute in 13 easy steps,’ — its step 6 says:

Amazon has not commented to The Times regarding this dispute other than to point us to a message-board posting in the Kindle discussion forums on its site. There, it explained that Hachette was one of its 70,000 suppliers and that the two had been unable to reach acceptable terms (without disclosing what was being negotiated).