Category Archives: Content

Internet Packages like Cable TV Instead of Net Neutrality

packages.jpg Apparently people have trouble imagining what a telco-packaged non-neutral Internet would look like. Think of cable TV. Look at AT&T’s Blue Room. Or look at this graphic, which apparently was originally drawn in May 2006.

Hey, this version doesn’t include Amazon or Craig’s List. So sorry; guess they didn’t pay for access.

-jsq

PS: Seen on BoingBoing.

NYTimes Sets Itself Free

times_select.gif Two years ago the New York Times made its best marketing estimate of how to derive income from the web, and put many of its back stories beyond a paywall called TimeSelect, at $49.95/year or $7.95/month. Times change:
In addition to opening the entire site to all readers, The Times will also make available its archives from 1987 to the present without charge, as well as those from 1851 to 1922, which are in the public domain. There will be charges for some material from the period 1923 to 1986, and some will be free.

The Times said the project had met expectations, drawing 227,000 paying subscribers — out of 787,000 over all — and generating about $10 million a year in revenue.

“But our projections for growth on that paid subscriber base were low, compared to the growth of online advertising,” said Vivian L. Schiller, senior vice president and general manager of the site, NYTimes.com.

What changed, The Times said, was that many more readers started coming to the site from search engines and links on other sites instead of coming directly to NYTimes.com. These indirect readers, unable to get access to articles behind the pay wall and less likely to pay subscription fees than the more loyal direct users, were seen as opportunities for more page views and increased advertising revenue.

“What wasn’t anticipated was the explosion in how much of our traffic would be generated by Google, by Yahoo and some others,” Ms. Schiller said.

Times to Stop Charging for Parts of Its Web Site, By RICHARD PÉREZ-PEÑA, New York Times, September 18, 2007

This is why it’s a bad idea to let the telcos and cablecos determine what we can see or do on the web. Nobody can predict what will work best, especially for deriving revenue.

Hm, this would also mean that the duopoly’s insistence on TV as the future of Internet revenue could be just as wrong for them as it is for the rest of us.

-jsq

PS: Seen on BoingBoing.

The Amazon Channel

packages.gif It’s all very well to talk about net neutrality or Internet freedom and how it affects 700Mhz spectrum sales or freedom of the press. But what does all this have to do with the average Internet user?

Suppose the telcos and cablecos get everything they want.

To buy a BBQ grill on eBay, you’ll have to pay for the eBay channel. This is above whatever you pay the seller for the grill or eBay for your membership. You’ll have to pay your local Internet access company just to let you get to eBay to participate in the auction. Oh, maybe you’ll be able to get there anyway, but your access may be so slow that you’ll pay for the eBay channel out of frustration.

If you want to buy a book from Amazon, you’ll have to pay for the Amazon channel. For search you’ll need the Yahoo channel or the ask.com channel or the google channel. Assuming your favorite search engine is even offered as a channel. Many smaller services probably won’t be.

Maybe it won’t be quite this bad. Continue reading

Duopoly Spies

Mike_McConnell.jpg Well, I had been waiting to post something about the telcos and domestic wiretapping until more news came out, since much of it was still hearsay. But now National Intelligence Director and former National Security Agency Director Mike McConnell has confirmed it:
Now the second part of the issue was under the president’s program, the terrorist surveillance program, the private sector had assisted us. Because if you’re going to get access you’ve got to have a partner and they were being sued. Now if you play out the suits at the value they’re claimed, it would bankrupt these companies. So my position was we have to provide liability protection to these private sector entities.

Transcript: Debate on the foreign intelligence surveillance act, By Chris Roberts, ©El Paso Times, Article Launched: 08/22/2007 01:05:57 AM MDT

Ryan Singel points out in Wired’s Threat Level blog that this is even though the same McConnell signed a sworn declaration in April saying to reveal that NSA and Verizon had such a relationship “would cause exceptionally grave harm to the national security.” Continue reading

Malamud Court Gadfly

gadfly.jpg Carl Malamud is at it again. After getting patents and SEC filings and Congressional subcommittee hearings available online, now he’s going for court case law.
Last week, Mr. Malamud began using advanced computer scanning technology to copy decisions, which have been available only in law libraries or via subscription from the Thomson West unit of the Canadian publishing conglomerate Thomson, and LexisNexis, a division of Reed Elsevier, based in London.

The two companies control the bulk of the nearly $5 billion legal publishing market. (A third, but niche, player is the Commerce Clearing House division of Wolters Kluwer).

He has placed the first batch of 1,000 pages of court decisions from the 1880s online at the public.resource.org site. He obtained the documents from a used Thomson microfiche, he said.

A Quest to Get More Court Rulings Online, and Free, By JOHN MARKOFF, New York Times, Published: August 20, 2007

Markoff refers to Malamud as a gadfly. Hey, Socrates was a gadfly, too. Not bad company.

Now what happens if the Internet first mile access duopoly decides to give Thomson and LexisNexis and Wolters Kluwer high-speed high-quality transit and deprioritizes the Internet Archive?

-jsq

Rage Against Distributive and Content Control

51052~Rage-Against-The-Machine-Posters.jpg
And now you do what they told ya,
now you’re under control
The Pearl Jam (and John Butler Trio and Flaming Lips and Rage Against the Machine) AT&T censorship fiasco has reached the attention of an FCC commissioner:
FCC Commissioner Michael Copps, fire-breathing advocate of network neutrality regulation and opponent of media consolidation, has taken a stand on AT&T’s now infamous censorship of Pearl Jam front man Eddie Vedder’s anti-Bush remarks at Lollapalooza. In an interview with OpenLeft.com’s Matt Stoller, Copps supported the idea that there’s a link between AT&T’s deletion of Vedder’s political comments from a webcast of the concert and the network neutrality fight that’s brewing in the halls of Congress.

“Events like this are connected to the larger issue of network neutrality, so it is very very important,” Copps said in response to a question about whether or not AT&T’s censorship of Vedder has any implications for network neutrality. He went on to say, “So when something like the episode occurs with Pearl Jam that you’re referencing that ought to concern all of us… because if you can do it for one group, you can do it to any group and say ‘Well, it’s not intentional,’ and things like that. But nobody should have that power to do that and then be able to exercise distributive control over the distribution and control over the content too.

FCC Commissioner: Pearl Jam censorship linked to net neutrality fight, By Jon Stokes, ars technica, Published: August 17, 2007 – 01:56PM

And it’s good that Copps sees the connection between this episode and media consolidation. Copps talks a good talk, but will he do more than “grudgingly accept” this sort of thing, like he did the bogus 700Mhz auction rules? Will he vote against, and will he persuade other commissioners to do the same? And can someone persuade Congress to change the FCC’s tune? It’s all very well to rage against the machine, but who’s going to change it?

Or can we get some Internet access competition? Then we could have Internet freedom.

-jsq

Crack Google?

robberbarons.jpg Cringely gets anxious over Google’s floor bid for 700Mhz. After pointing out that Verizon and AT&T coming around to Kevin Martin’s leaked counterproposal of watered down “open access” rules, he says:
Look who Google is up against — all the largest Internet service providers in the U.S. Google will not win this even if they win the auction, because the telcos and cable companies are far more skilled and cunning when it comes to lobbying and controlling politicians than Google can ever hope to be. The telcos have spent more than a century at this game and Google hasn’t even been in it for a decade. And Google’s pockets are no deeper than those of the other potential bidders.

Is Google on Crack?: Eric Schmidt bets the ranch on wireless spectrum, Robert X. Cringely, Pulpit, 27 July 2007

Cringely is missing the point about who Google is up against. These outfits have not been the largest ISPs for more than a century. They’ve been telephone companies for more than a century. And being around for a long time isn’t necessarily a sure win. Look at the Vatican; it’s been around for two thousand years, and it’s managed to lose most of its traditional heartland of Europe. Sure, Google is fragile, in some senses even more fragile than Microsoft, as Cringely points out. But even Microsoft is losing market share from IE to an open source browser, Firefox. Google, as a proponent of open source that actually understands it, has a fair chance here. The incumbent duopoly telcos aren’t really in the Internet business; Google is.

Maybe Cringely’s right that Google alone couldn’t win the auction. But Google and Sprint possibly could. Sure, Sprint is a phone company, too. But that doesn’t mean it’s going to side with the rest if it scents profit. Maybe with a little help from Apple.

Let’s hope that’s what Google is really up to, rather than expecting to get Martin to change the rules and then wait for AT&T to deliver another striped bass.

I also don’t think Cringely is taking into account the stakes here. Continue reading

The Internet As a Market: Al Gore and Reasoned Discourse

al-gore.jpg So I’ve been wondering what to say about Al Gore’s book, The Assault on Reason. A story in The Economist helped me out. After lauding Gore for calling Mr. Bush’s risky schemes well before most people, for denouncing the invasion of Iraq back in 2002, for his Oscar, and for being “the man who changed the climate of opinion climate change”, it then ridicules the book’s core thesis:
But he does not stop there. He worries about America’s money-saturated politics. He lambasts television for infantilising the electorate.

He sometimes comes across as eccentric—as when he lambasts television for killing public discourse, then celebrates the internet as its potential saviour. A few minutes online, reading the zealots on either the right or the left, should have been enough to explode that illusion.

Gore in the balance, From The Economist print edition, May 31st 2007

That last would appear to be the sort of trivialized, perhaps even infantilized, reaction Gore is lamenting. The big advantage of the Internet is you get not just a few zealots at extreme ends of an arbitrary spectrum: you get all the shadings and colors and depth you can absorb. And you can weave your own strands in this home-made tapestry. Continue reading

Internet Radio: DRM Air

wexelblat.jpg Previously we saw a last-minute reprieve for Internet Radio. I read SoundExchange’s press release, but I didn’t catch this:
Under the new proposal, to be implemented by remand to the CRJs, SoundExchange has offered to cap the $500 per channel minimum fee at $50,000 per year for webcasters who agree to provide more detailed reporting of the music that they play and work to stop users from engaging in “streamripping” ­ turning Internet radio performances into a digital music library.

SoundExchange Confirms Minimum Fee Offer: Reminds Commercial Webcasters of Obligations to Pay New Royalty Rates, Press Release, SoundExchange, 13 July 2007

Alan Wexelblat explains that part about “streamripping”:
So it’s that simple. Become our agents in preventing people from recording Web radio streams or face the financial axe.

When is a Reprieve Not a Reprieve, by Alan Wexelblat , Copyfight, July 19, 2007

Continue reading

Broadband Produces Employment

crandall.jpg
lehr.jpg
Litan.jpg
Many have assumed that broadband is good for the economy; now here’s a study with rivets:
More specifically, for every one percentage point increase in broadband penetration in a state, employment is projected to increase by 0.2 to 0.3 percent per year.

The Effects of Broadband Deployment on Output and Employment: A Cross-sectional Analysis of U.S. Data, By Robert Crandall, William Lehr and Robert Litan, Brookings Institution, 2007

Of course, this is like saying every state in medieval Germany that had a printing press produced employment in the printing industry. There are economic and social effects far beyond mere employment. What should be done?

The paper has a few recommendations:

The surest route to lower prices is provided by increasing competition in the delivery of broadband services.
Continue reading