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Charles Warner

Charles Warner

Posted: March 18, 2010 12:00 AM

The Media Tragedy of the Commons

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The Tragedy of the Commons

In an article in Science magazine in 1968, Garrett Hardin described a situation in which people, each acting independently in their own self-interest, will ultimately deplete a shared limited resource even when it is clear that it is not in anyone's long-term interest to destroy the value of that resource.


The idea of the commons refers to farmers sharing a common plot of land, on which they are each entitled to let their cows graze. It is in each farmer's interest to put more and more cows onto the land, even if the capacity of the common is exceeded and eventually there isn't enough grass to sustain everyone's herds. The farmer receives all of the benefits from an additional cow, while the damage to the common is shared by the entire group. If all farmers come to the same individually rational economic decision, the common will be destroyed to the detriment of all.

Newspapers Go Online

Beginning in 1996, major newspapers (the Washington Post and the New York Times) decided to extend the reach of their content and began to offer free online versions of their papers. At the time this seemed like a good idea, a way to make a little extra money. You know, just as the farmers put more and more cows out to graze on the commons without thinking ahead about the long-term consequences of their actions. And eventually all newspapers and virtually all magazines followed the lead of these venerable newspapers and offered their content free online.


Of course, what they were doing is reinforcing the internet hacker's mantra that "information wants to be free" and training everyone that they could get the information and content they wanted online free. Why subscribe to the New York Times or Washington Post when you get the content free online? Plus, environmentally sensitive people realized they could not only get their news free but could also save trees and cut down on waste by reading their newspapers online. What a good, green deal.

Newspapers, magazines, and other news organizations created a tragedy of the commons of sorts by unthinkingly conditioning people not to pay for their trusted content.

The Current Tragedy

Just like the farmers in medieval times who took too much advantage of a good grazing thing and faced an overgrazed dust bowl, newspapers and other news content providers today face an ever diminishing amount of advertising dollars. It isn't merely pessimism; the glass really is half full, and it's getting less full each passing month.

And the recession isn't the problem. On March 15, the Pew Project for Excellence in Journalism released its annual State of the News Media report which indicated that http://www.stateofthemedia.org/2010/overview_intro.php "in 2009 newspapers, including online, saw ad revenue fall 26 percent during the year, which brings the total loss over the last three years to 43 percent."

What's the Solution?

To solve the problem of overgrazing in earlier times, there were several solutions, one being government intervention in the form of passing laws or instituting regulations that punished offending overgrazers. But bureaucracy comes with government regulation, and we have plenty of bureaucrats and regulations, and both of them don't work much. So, no thanks.

Another way of handling the problem is with non-government sanctions, which require collaboration and cooperation among the majority. For example, in some communities that have common grazing land, farmers and herders agree to put up a fence and a gate and have someone man the gate at all times. They agree, for example, that three cows per family will keep the common viable and anyone who wants to graze more than three cows isn't allowed in the gate.

Modern media companies can't collaborate legally (it's called collusion) and agree that everyone has to charge for content and set a minimum price what they will charge (it's called price fixing).

But here's what they can do: the New York Times, the , the Wall Street Journal, all big city newspapers, the New Yorker, The Atlantic, the Weekly Standard, the Nation, Time, Newsweek, BusinessWeek, and all quality news and information websites and blogs, such as ProPublica, and Talking Points Memo can form a Quality Publications Association (GPA) and charge fairly hefty dues based on circulation or web traffic.

Members of the QPA can't all agree to charge for their content or what to charge. However, they all have the future of their publications on their minds. They are all concerned about long-term survival. They know what's good for themselves.

Therefore, one of them that is not charging now has to bite the bullet and charge for content (the Wall Street Journal already does charge for some content) and the rest have to voluntarily fall into line and charge a similar amount. Once all the quality publications start charging, the dominoes will fall and the others in the association will start charging for content.

The QPA would merge with the National Newspaper Association and other similar associations and can then figure out cool bundles and discounts and loyalty programs. For example, I could pay The New York Times $200 a year or pay the QPA $600 and get access to all the QPA members content. I could also earn loyalty points for clicking on ads on QPA members' advertisers' content. Why not let The New York Times make some money when I click on an ad it carries rather than let Google make money when I click on one of its search-term ads? I'd rather see The Times make some money than for Google to get even richer.

The QPA could run a national ad campaign on all of its sites, newspapers, and magazines and on television, the theme of which would be "You get what you pay for." The campaign would make the point that just like with insurance or cars or fishing rods, with information to get quality stuff, you've got to pay for it. The purpose of the campaign would be to educate people that information theoretically may want to be free, but good information costs money to collect, so if people want reliable information, they will have to pay for it.

It's an education and pricing problem. Apple showed that most people would pay $.99 for a song rather than steal it if it were easy to do so. The QPA and its members would have to fuss around for a couple of years to find the right price points and bundles, but it could be done.

The education problem is stickier. But the QPA could run a commercial showing a rich-looking man with red suspenders, cuff-linked shirts, and a bow tie ranting about the need for national security and keeping the Army in Afghanistan and then calling his lawyer to set up an offshore tax shelter to avoid paying income taxes. The tag line would be "What's wrong with this picture? Remember, you get what you pay for. If you want good stuff you have to pay for it."

 

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02:07 PM on 03/19/2010
The right would say Kodak lost to digital cameras. They didn't adapt. Ford and Chevy lost because of unions.

I drive Subaru's and support unions and use digital cameras mad in Osaka.

Newspapers, magazines and other forms of the old media house our people. Our people are smarter and need to be heard. We control the government and Rush Limbaugh rules the AM radio waves.

John F. Kerry wants Rush to be stopped as the "right" are too naive. Kerry supports the Fairness Doctrine and we should too. Even though the scientists are saying that Global warming is not occurring, we know better.

The plot of land that journalists share now is infinite. We need to regulate it so we have more control in order to control the tea baggers and Sarah Palin.

We need government subsidy for the old media. We should mandate that our intellectual content be digested by all. The "right" is wrong on this matter. Obama went to law school. The right has most scientists and engineers as their intellectual representation and they have not been trained in government.

Government does know best, we know that. Let Go, Let Nacy Pelosi!
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JScott
John Galt's last name is McGuffin-Smithee
11:22 AM on 03/19/2010
Oh please the pay for content works if the the paid content is worth paying for....perfect example of it working even tho no one will admit it is PORN WEBSITES.
11:17 PM on 03/18/2010
I don't quite understand your rationale. You seem to be saying that the new media business model is to replace advertising revenue with subscription revenue. This is like replacing "rivers of gold" with "trickles of tin". Until major media learn anew how to relate to their customers and to retain their attention and loyalty - and hence provide themselves with a rejuvenated pitch to their advertisers - any talk of associations, fees, subscriptions and such like is something of an irrelevance. Your idea may be a good one, but it is NOT a solution to the overall media business model conundrum.

Major media would do well to learn the dynamic relationships that have evolved between bloggers and their adherents/readers/communities, instead of regardig their customers merely as faithless fodder for circulation statistics.

Advertisers are pretty uncomplicated folk. They follow the customers' eyes and mouths. Major media follow their customers' hands (reaching for a dime, an on/off switch or a remote control). No wonder they're losing out.
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healthanalyst
Banned from commenting, so?
11:03 PM on 03/18/2010
As far as I'm concerned, I rather like the headline

Ford to City

Drop Dead

Miss the Wall Street Journal? Under Murdoch, I think not. Same with all the other papers.

The solution to the tragedy of the commons was to have government oversight. When I went for a PhD in political science they couldn't figure that out. Basic economics. But you had to have calculus to take economics. God forbid calculus in pol sci. They couldn't handle it.

Guess the ivory tower isn't any better at NYU or The New School.

Maybe a real degree from a real school? That was a quote to me once in a problem a PhD couldn't solve. I did 6 months later. Seems to fit here.
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gulopartisan
My micro-bio is empty.
03:06 PM on 03/18/2010
The two fallacies in this piece are telling. First, "The Tragedy of the Commons," as defined by Hardin, was a straw dog. The true commons was self-regulating for centuries, and that was partly because the land actually belonged to the nobility (the ME's 1%) and was lent to the common folk on the condition that they didn't ruin it. In other words, it was governed by "the invisible hand of Power."

Second, this "solution" for newspapers rests on the faulty assumption that we want to save them. Newspapers began as the voices of the people and quickly became the voice of Sauron. Hearst begat Murdoch. Big media is just another instance of the corporate "persons" who prey on humans. We've known how to solve this problem for millions of years: Eat their eggs.
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Raugiel
04:52 PM on 03/18/2010
Well said! Why on earth would we want to pay for "trusted" news that we already know isn't trustworthy? You can't even come close to a good idea of truth without reading several versions of the same story, which means several subscriptions under this model.
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CharlesWarner
09:48 PM on 03/18/2010
Yes, we need several trusted sources of original reporting.
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CharlesWarner
09:39 PM on 03/18/2010
Hardin's tragedy of the commons concept was not based on historical fact but the commons was used as a hypothetical illustration of the notion that people often tend to act in their own short-term self-interest to the detriment of the long-term interests of the greater societal good. There are plenty of recent examples: Greedy Wall Street bankers and brokers making themselves richer and impoverishing the country, Republicans voting against health care reform, rich people using offshore tax shelters to avoid paying taxes.

I'm not suggesting we want to save newspapers but rather we need to save responsible journalism. Publicly owned corporate media are a problem; they are concerned with short-term profits, the long-term interests of society.
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Raugiel
07:52 PM on 03/19/2010
We need to save responsible journalism. However, no subscription or "paywall" system will work until there are some reporting outfits that can show that they are actually reliable and trustworthy. Few people going to pay to find out if the media cleaned up its act once they started charging for content.

The media has seriously wasted its common resource, but that resource is the public trust. The major news media is disingenuous and sloppy at best, and willing to outright lie to get viewers and readers at worst. Those people who care about the news enough to potentially pay for it , know that the media has been more concerned with how they make money off the news than whether the news is actually news. Cable news networks seem to have lead the charge on this, but other media has quickly followed suit. Facts are misrepresented. Journalists are cowed by our most extreme media figures. Debates are framed in the media discourse in ways that have little connection with actual reality. When it comes to politics, the public barely engages with actual facts - the one thing news media is supposed to provide.

If news media wants us to pay for their product, they have to make one that is more factually accurate than the Daily Show, which is free. Is it any surprise that no one wants to pay for "real news" when "fake news" is more honest and reliable?
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NickHP
engineer, human, humane
09:58 AM on 03/18/2010
No. I won't pay a la carte. However I would support a flat monthly ISP tax that is dispersed across content producers according to web visits. Sort of like the radio play copyright fees.
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CharlesWarner
09:41 PM on 03/18/2010
That's a cool solution. The purpose of my blog post is to get people thinking about how to fund responsible reporting and investigative journalism.
08:33 AM on 03/18/2010
Some of us are desperate to put dying institutions on life support. All of this unnecessary extension of life is bankrupting us. It's time to move on to our future.
01:11 AM on 03/18/2010
Who will guard your fortress of information? Who will police the electronic frontier looking for those articles that too closely match one written by your organization. What will you do with the offenders? If they persist will you physically raid their home to protect your digital fiefdom?

It's not that information wants to be free. It's that it is free. That's why people who have information that is proprietary have to go to such great lengths to protect it. I submit that we never paid for the content of newspapers, but rather the mechanism of information delivery that printed periodicals had a monopoly on. Absent that monopoly, information resumes its normal flow.

The relevant questions are how will the news of tomorrow be collected and how will we fund a vigorous fourth estate absent government intervention and a total collapse into infotainment?

I suspect that the need to have correct and relevant information to make monetary and political decisions will find a way to fund quality independent journalism. I suspect I am participating in its genesis here.
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CharlesWarner
09:46 PM on 03/18/2010
You make excellent points about "how will the news of tomorrow be collected and how will we fund a vigorous fourth estate absent government intervention and a total collapse into infotainment?

I suspect that the need to have correct and relevant information to make monetary and political decisions will find a way to fund quality independent journalism. I suspect I am participating in its genesis here."

By "here," I assume you're referring to The Huffington Post, which may not be making a profit. Yes, as a society we must find a way to support good content, including The Huff Po, so we might have to pay for it somehow.
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unitron
My email notifications are in Spanish now...
12:26 AM on 03/18/2010
"Newspapers, magazines, and other news organizations created a tragedy of the commons of sorts by unthinkingly conditioning people not to pay for their trusted content."

And the internet helped us learn how foolish we were to blindly trust their content at any price.
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CharlesWarner
09:47 PM on 03/18/2010
Yes! Well said.