Who is going to start a movement to stop the social media giants from milking us like witless data cows? (Why a keiretsu-cooperative could be a better idea)

indoor rainbow 2 SC postgutenberg@gmail.com copy

Indoor rainbow, through a crack in a glass pane

Will the conversation about forcing Big Tech — especially Facebook and Google — to pay us for stripping our lives of personal information they sell to advertisers lead to a revised business model for newspaper publishing?

We launched this site in 2011 with a proposal that newspaper and other media websites share with commenters (then referred to as ‘bloggers’) the economic value that they add with their comments — a scheme we have updated intermittently since we first outlined it in 2010 as ‘The Keiretsu-Cooperative: A Model for Post-Gutenberg Publishing’.

In a paper released at the close of 2017, ** five scholars and computer experts at elite U.S. institutions are calling for social media users to unite to demand payment for the streams of data about us that have made Big Tech rich, and insist on our right to determine where that information goes and on what terms.

That is the essence of the boldest conclusion of those thinkers, collaborating over the fence from these places: the School of Engineering and the Department of Economics at Stanford; Columbia’s Department of Economics; Microsoft’s Office of the Chief Technology Officer, and the Department of Economics and Law School at Yale.

Their justification for their call to action is technical, apparently aimed at mandarins (wonks) drafting economic policy, whom they hope to persuade that governments must shift ‘ownership rights in data to the users that generate them.’ (About time, we say.) They couch their arguments in basic economic theory — the theory of the firm — whose jargon and quasi-mathematical symbols obscure concepts that are easy to express in plain English. The overall impression is of rabbis presenting scriptural sanction that they felt obliged to seek in the Talmud to bolster a commonsensical moral argument: social media users must not accept being milked for our data without compensation or control.

How likely are we to see the birth of a movement with such a rallying cry? Not very, we suspect. For a start, hardly anyone seems to have heard of its ivory tower recommendation or the paper in which that was made. We only learnt of this document’s publication by chance, browsing on the site of The Financial Times [ ft.com ]. There, the final paragraph of John Thornhill’s helpful outline and commentary reminds us that the exploited have historically got the attention of their exploiters by going on strike — and suggests ‘digitally picketing social media groups under the slogan: “No posts without pay!”’

In his column’s comments section, some readers urged the FT to set an example. This one, for instance:

FTcom reader's comment on John Thornhill column

Organising movements and keeping up their momentum can be frustrating enough to drive surpassingly patient saints to distraction. Time and patience are scarce, and we have all grown used to instant gratification on the net. Anyone can sign up for an account on Twitter and broadcast a maiden tweet in minutes. A newcomer to WordPress could write and publish a first blog post in less than an hour. By contrast, although launchers of a movement to get us paid for our data could use, say, Change.org’s tools to collect signatures for petitions, that would only be the first stage of years of hard graft, gathering political support for drafting laws to regulate the ownership and sale of users’ data.

Media organisations implementing our own proposal for treating users fairly could get results faster and lead in setting standards for post-Gutenberg economic equity. These are the principal components of a ‘keiretsu-cooperative,’ or economic structure for the future — a keiretsu being a sort of Japanese industrial club made up of companies pursuing similar or complementary aims:

• A newspaper publisher might create a meta-site with one or more book publishers with which its audience overlaps — and these partners could share this site’s capital improvement and running costs.

• Reader-commenters visiting the site would not be paid for individual comments. Instead, they would buy subscriptions that would also be small financial stakes in the keiretsu publishers’ meta-site.

What would be the attractions of a scheme like this for today’s corporate media owners?

• It would reduce their dependence on advertising, which social media giants have been diverting into their coffers.

• Offering readers co-ownership of a site where they read and contribute comments would give the keiretsu publishers an edge over Facebook — which, as we have argued in this space repeatedly, should be a cooperative owned by its users.

• Drawing up rules for paying readers and commenters for each individual contribution would be a lot more complicated than allowing them to buy stakes in the meta-site. Making them co-owners would ensure their loyalty and give them an incentive to return to participate often — making the site more attractive to advertisers.

We have laid out other advantages and other dimensions of our proposal here: ‘Adapt-or-die advice for newspapers being squeezed out by Facebook: create symphysis with your reader-commenters!’

Despite our reservations about it, a movement to end social media’s data theft is guaranteed our whole-hearted support.

** ‘Should We Treat Data as Labor? Moving Beyond “Free,”’ Imanol Arrieta Ibarra, Leonard Goff, Diego Jiménez Hernández, Jaron Lanier and E. Glen Weyl, American Economic Association Papers & Proceedings, Vol. 1, No. 1, (forthcoming).

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