Wednesday, August 01, 2012

Media Rants: Resist Predatory Paywalls

Resist Predatory Paywalls

Media Rants by Tony Palmeri 

Question: What do American newspapers, colleges and universities, and religious establishments have in common?
Answer: They are all 19th century institutions addicted to flawed 20th century corporate business models that undermine their ability to survive meaningfully in the digital 21st century.

That question and answer occurred to me recently when the Oshkosh Northwestern, the Appleton Post Crescent and most other Gannett Empire print products announced that online readers would have to pay for accessing news content online. The imposition by newspaper corporations of “digital paywalls” is not new; the WallStreet Journal pioneered the payola scheme in 1997. Declining ad and subscriber revenues pushed other papers to play with paywalls, most notably the New York Times. The only surprise about Gannett is that it took them so long to join the paywall ring.

Gannett’s is a “soft” paywall because nonpaying customers get unlimited access to some content as well as a certain number of “free” articles each month before the paywall kicks in. If you’re not a paid digital subscriber, each time you click on illuminating stories like “UFO Over Grand Chute” or “Burger King Betting on Bacon Sundae” (that story was quite  the whopper) you’re  reminded how many articles you have left before being coerced into paying the Gannet Empire Download Duty.
Paywalls are a 20th century solution to a 21st century problem. It’s like religious institutions responding to declining church membership by squeezing more money out of the remaining loyal flock. Or colleges and universities responding to dwindling external funding by raising tuition to levels that force some out and others into decades of debt.
How did these cultural institutions, all of which should play primary roles in making America a more just society, get to this crisis point? The answer deals with the flawed manner in which each institution defines its relationship to The Public. I only have enough space to deal with newspapers, but a similar dynamic exists across institutions.

In the 19th century, American newspapers in the new nation saw The Public as something to “shape.” Newspapers were “propaganda” organs preaching values consistent with the revolutionary ideals of the Founding Fathers. Van Wyck Brooks once wrote that the “American mind” is not shaped by books, but by “newspapers and the Bible.”

The legendary New York World publisher Joseph Pulitzer epitomized the shaping function when he lent the weight of the World to raising money for construction of the Statue of Liberty pedestal. Pulitzer of course saw his actions as a way to promote the paper, but his fixation on getting Americans to support “liberty” made it difficult to think of profit as his major motivator.

Eventually Pulitzer did become primarily business centered. He and the New York Journal’s William Randolph Hearst were dueling innovators skilled at exploiting scandal and sensationalism to grow circulation and enhance advertising revenue. By the early 20th century, the commercial newspaper business sees The Public not as something to shape but to “seduce.” Advertising rates increase as publishers deliver more readers; the more seductive the content, the more eyes on the page. As media scholar Dallas Smythe argued, 20th century mass media secured windfall profits by selling audiences to advertisers. To get audiences to play such a subordinate role requires sophisticated seduction.

Digital paywalls are an extension of the 20th century seduction model. Audiences are made to feel that they are somehow “freeloaders” if they click links without subscribing. By paying up, the audience member is somehow “supporting journalism” even though journalism worthy of the name was sacrificed long ago in the interest of the corporate bottom line. By signing up for a digital subscription to a Gannett paper (or any paper), all you are really doing is improving the media corporation’s chances of raising digital advertising rates.

I’ve heard responses to Gannett’s paywall announcement similar to what blogger Matt Yglesias wrote about the Wall Street Journal paywall: “I read the WSJ sometimes. But it’s going to be a cold day in hell before I voluntarily surrender money to firms controlled by Rupert Murdoch when there are alternatives.”

Ben Bagdikian’s classic The Media Monopoly describes Gannett as “an outstanding contemporary performer of the ancient rite of self serving myths, of committing acts of greed and exploitation but describing them through its own machinery as heroic epics.” If you need to read a Gannett paper, maybe the paywall is the excuse you’ve been waiting for to take that daily walk to the public library. There you can read the paper for FREE.  

Paywalls improve the corporate bottom line in the short term. For newspapers to survive in the long term, a new relationship to The Public is necessary. The new relationship must be one of “service.”  Josiah W. Gitt, late editor of the York, PA Gazette & Daily many years ago articulated a vision for newspapers that transcended shaping and seduction: “A newspaper is a public servant and to be permanently successful must be faithful to the interests of the public it serves. It dare not be selfish. It dare not be mercenary.”

Media corporations are by definition selfish and mercenary. The new relationship can be developed only by independent newspapers not fixated on the bottom line. Want to save journalism? Resist predatory paywalls and contribute instead to independent publications.

5 comments:

Marc Eisen said...

So, like, what kind of economic model do you have in mind that will sustain newspapers and allow them to pay reporters, editors and other staffers to report the news? Why their hard work should be considered a free public good makes no sense unless you think journalists should sleep on park benches and beg for their morning coffee.

tony palmeri said...

Not sure where you've been the last 30 years, but the economic model in place has been horrible for reporters, editors, and other staffers. Gannett (and other corporate media giants), like Wal-Mart, set out to destroy locally produced media and largely succeeded. The results were great for their bottom line, but horrendous for Journalism in general.

I have some ideas about the kinds of models that could recusitate journalism as a profession, and I may write about them at some point. All of my ideas for reform require the dismantling of top-down, corporate models of journalism. So if you buy into that model, you won't have much interest in what I have to say.

Marc Eisen said...

I've been working in journalism for the last 30 years.

I am no fan of Gannett, particularly its Wisconsin papers. No argument there.

But the arrogant notion that a valuable product like journalism should be free makes no more sense than saying electricity and cars should be free.

Somebody has to pay for that hard work! A coffee can to gather voluntary contributions won't do it.

I don't mean to be rude, but your suggestion of "dismantling.. top-down, corporate models of journalism" for some unspecified reform seems untethered to the real world.

If people can pay 99 cents for some foolish app, they can pay for online reporting.

I mean, why shouldn't they?

tony palmeri said...

My piece never says that journalism should be done for free. I have subscribed and will continue to subscribe to publications that I think have journalistic integrity.

The argument is that paywalls are part of the failed 20th century model of corporate media. I don't think that that Gannett, the Wall St. Journal, etc. are under any illusion that paywalls are anything other than a short term fix.

My feeling is that every 99 cents that goes to Gannett, the NYT, etc. is 99 cents that doesn't go to independent publications. The idea that people in Oshkosh, Appleton, or any other part of the Fox Valley have to worry about Gannett's bottom line seems odd to me.

There's an Italian Newspaper called "Il Fatto Quotidiano" (The Daily Facts) that I think has a model that might work. They make their profits from subscribers (print) and newsstand sales. There is no online paywall. The reason why it works for them is that they are radically independent--no Italian readers see them as flacks for the government or corporate interests. Here's a link http://newsentrepreneurs.blogspot.com/2012/06/in-italy-independent-newspaper-startup.html

If you think of all the American newspapers using paywalls, not one of them can claim to be a truly independent voice. They are pretty much all bottom line outfits.

That Italian newspaper, by the way, seems very similar to George Seldes' old _In Fact_ newsletter from the 1940s and 1950s. Seldes was undermined by McCarthyism, but I think his model is ultimately the one that can save a journalism worthy of the name.

Thanks for the feedback

loninappleton said...

I'm pretty late in the day on this one but there are some informed observations in Juan Gonzalez and Joseph Torres' book called "News For All The People". It is a people's histpory of journalism which would remind one of the late Howard Zinn and very enjoyable to read.

The point to take with regard to paywalls is gentrification. It has to do with limiting, not expanding the readership to those who can and will afford it in order to jack up the rates of advertisers.

Gonzales and Torres describe this effect as a result of dwindling competition.

The takeaway is they can can solicit more ads for snooty food and middle brow performing arts entertainments meaningful to no one on a more selective basis.