July 2012

Murdoch’s Change of Heart

[Commentary] News Corporation’s board voted to quarantine the newspapers that Rupert Murdoch has so lovingly nurtured, separating them into a new company. Cleaving the giant media conglomerate in two will free the lucrative entertainment division to find a share price more befitting its stellar run.

Murdoch had long resisted such a move, so it’s fair to wonder why one of the most stubborn operators on the planet had such a significant change of heart. The specter of Murdoch being steered to a new place by those around him is not something we have seen in his long reign at News Corporation. Murdoch may have taken the leap, but he was pushed by a decline in the fortunes of print that was more rapid than anyone had anticipated. He was worn down by his most senior executives, a board that was suddenly listening to them as well as him, and his own instinct for self-preservation.

Social Media Is the Message for Olympics

At the Olympic Games in London, set to begin this month, the official motto of “swifter, higher, stronger” will be supplemented by a new label. If some marketers, fans and athletes have anything to say, these Games will be the first Social Media Olympics — the “Socialympics,” as some are calling them.

Even the Olympic movement, which sometimes steps into the future with great caution, has warily accepted the idea. As befits an event surrounded by superlative athletic, logistical and marketing feats, there is a bit of exaggeration in this description. The biggest social media platforms have been around for several previous Olympics, including the Beijing Summer Games of 2008 and the Vancouver Winter Games of 2010. Twitter was founded in 2006, YouTube in 2005 and Facebook in 2004. Broadly defined, social media go back even further: Blogging dates at least to the 1990s. But every Olympics needs a story line, preferably a “first.” Thus, the Athens Games of 2004 took the Olympic movement back to its ancient home. The Beijing Games carried the torch to a large, previously untapped market. In Britain, a midsize country that has been host to the Games before and where people’s enthusiasm for the event appears to be lukewarm, there is a new narrative. In the four years since the Beijing Games, use of social media platforms has surged.

On YouTube, Amateur Is the New Pro

Founded in 2005 and owned by Google since 2007, YouTube today contains multitudes: 72 hours of video are uploaded onto the service every minute. For some, it is an infinite museum of moving images: Patti Smith singing “You Light Up My Life” on a 1970s kids’ show; Mike Wallace puffing Luckys through an interview with Salvador Dalí; forgotten teenage dance shows. For others, this is the medium of the one-off “viral” video — the often accidentally funny home movie or blooper that is e-mailed, linked and tweeted into collective consciousness. There is also an endless variety of produced material: “supercut” mash-ups, TED Talks, book trailers, brand campaigns.

Then there are the YouTube stars — people like Ray William Johnson, Mystery Guitar Man, Smosh, Michelle Phan, the ShayTards, Jenna Marbles, Freddie Wong, What the Buck or Philip DeFranco. If these names mean nothing to you, trust me: these are famous, successful YouTubers. Their videos get millions of views, and because they get a share of the resulting ad revenue, they are almost certainly among the “hundreds” that the company says earn six figures or better from their videos.

'Silly' Apple and Google

[Commentary] There were great expectations when technology giants Apple and Google squared off in court, each accusing the other of violating its patents in competing mobile phones. No one expected this case would end in a whimper, with one of the country's most influential judges dismissing the claims as "silly."

In the process, the judge, Richard Posner of the Seventh U.S. Circuit Court of Appeals, described a patent law system in "chaos" and needing basic reform. Judge Posner is also a University of Chicago law professor, author of some 40 books, and the most frequently cited living legal scholar, so his criticism carries considerable intellectual weight. At issue was Apple's effort to protect its iPhone against competition from Google's Android phones. Today's smartphones include some 250,000 claimed patents. The low bar for patents makes it impossible for any maker to avoid a claim for breach. Judge Posner, hearing this case as a trial judge, observed: "Patents in the field of information technology often have little if any value except defensively."

In bouncing this high-profile case, Judge Posner lays out a road map for Congress, patent regulators and other judges to re-establish the original purpose of intellectual property, which is to encourage both innovation and competition. If he succeeds, technologists at both Apple and Google should be delighted to have lost this case so they can go back to innovating instead of litigating.

As Google gets ready to launch its gigabit network, Kansas City asks: Now what?

After getting picked for Google Fiber, Kansas City (Kansas and Missouri) is grappling with a far more complex challenge: What to do with it?

In the most optimistic scenarios, Google Fiber -- which will be one of the world's fastest broadband networks with speeds of 1 gigabit, more than 100 times as fast as the average broadband connection -- has the potential to make the two Kansas Cities the most entrepreneurial place in the world, the center of a health care revolution, and a leader in education reform. But along with frustration over delays in the launch, the project has also bred anxiety that it will widen the digital divide or overwhelm the cities with a flood of new high-tech immigrants who drive up the cost of living. Perhaps the greatest fear, though, is that Google Fiber will change nothing, that somehow the two cities will squander this moment, when the eyes of the world are watching, to invent the future. Google hopes the project will spur efforts to find ways to bring more people online, as well as to build such networks across the country. Kansas City understands that if that happens, then the window in which the cities have an advantage over the rest of the world could close quickly.

"This is the question that keeps me up every night," said Cameron Cushman, manager in the entrepreneurship program at the Ewing Marion Kauffman Foundation, one of the cities' largest philanthropic organizations. "Great, we're going to have an advantage on every other city in the world. Now, how do we make Kansas City the most entrepreneurial place in the world?"

Networked moms are the new soccer moms – and they're not on the sidelines

[Commentary] The landscape has changed since the 'soccer mom' term gained prevalence. With technology at our disposal, we moms are now powerfully networked and politically active. Politicians take note: 'Networked moms' are definitely in the game – and changing it – not watching from the sidelines.

[Kristin Rowe-Finkbeiner is co-founder and CEO of MomsRising, an online and on-the-ground organization of more than a million members working to mobilize grassroots action on the issues facing women, mothers, and families.]

Tribune investigating ethics policy violation by content provider Journatic

A national radio report revealing that hyperlocal content provider Journatic used false bylines in several stories that ran in TribLocal online has prompted an investigation by the Chicago Tribune.

Journatic, brought in to run part of the Tribune's community news operation, has acknowledged its mistake and said it would discontinue the practice. "This American Life," which is produced by Chicago public radio station WBEZ-FM, included a 23-minute segment focusing on Journatic's use of low-paid Filipino freelancers to cull and format information for stories, some of which were published under aliases. In interviews this weekend with the Tribune, Journatic co-founder and CEO Brian Timpone said altered bylines were commonly used for its Blockshopper.com real estate stories, a separate enterprise from its newspaper content service. Timpone said some of its newspaper clients, including TribLocal, had asked to republish those stories on their hyperlocal sites, which Journatic allowed. But the company neglected to remove the altered bylines.

Mobile Technology Frees Workers to Work Any 20 Hours a Day They Choose

Mobile technology is allowing workers to work wherever and whenever they choose. As most people already know, the shift means less time in the office, but also more time working.

A new survey from Good Technology finds that the typical American is working more than a month and a half of overtime per year just in the amount of time spent answering work phone calls and responding to email. The amount of total work done outside of the confines of the office adds up to 30 hours per month for the average worker. And while more than half of workers ascribe a lot of that work to just trying to keep organize, nearly half feel like they have no choice but to stay connected. So how is all this extra work going over at home? Well, a quarter of those polled said it’s led to at least some disagreements with their partner, though more than half reported no arguments, presumably because their spouse or significant other was too busy doing their own work to notice.

Britain’s media and regulation

[Commentary] During his nine-month public inquiry into press standards, Lord Justice Leveson has heard many witnesses air legitimate complaints about the misconduct of the media. Now he must turn his mind to what to do about it.

How should Britain’s free press be regulated? The inquiry has set out sensible criteria for future regulation: whatever system is chosen must be effective, cheap, cover all “newspapers”, preserve media freedom and be a free service that protects the vulnerable. But finding a mechanism that delivers all this will not be simple. The primary purpose of regulation must be to protect the public – especially those without recourse to costly lawyers – from unfair treatment at the media’s hands. The existing system, in the form of the Press Complaints Commission, has palpably failed. While the PCC does much good work mediating in disputes between newspapers and the public, it is too close to those that it regulates and too weak to hold them to account. The best solution would be to move to a system of “independent regulation”. This would fall short of formal state regulation or licensing of journalists – both of which could expose the press to political interference. Independent laymen, appointed by a credible mechanism free from state control, would be in a majority on the new regulatory body. This would dispel the impression of a magic circle of editors or newspaper executives sitting in judgment on itself.

Apple Settles iPad Suit

Apple will pay $60 million to settle a trademark dispute with a Chinese company over the iPad name, according to a Chinese court, potentially resolving a case that illustrated new intellectual-property challenges for foreign businesses in China.

An attorney for the China-based unit of a Hong Kong computer monitor maker, Proview International Holdings Ltd., said on Monday that the settlement had been reached via mediation. A post on the official microblog account of the Guangdong High People's Court's confirmed that settlement had been reached as well as the settlement amount, and said it took effect on June 25. If the settlement resolves other court fights between Proview and Apple related to the iPad name, it would remove a cloud over Apple in what has become a crucial market. High demand for iPhones and iPads has made China Apple's biggest market outside the U.S., representing 11.5% of Apple's global revenue in 2011, or roughly $12.5 billion. Apple shipped an estimated 4.1 million tablets there last year, according to research firm IDC.