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Bamboozled at the Revolution

Peter Wayner writes: "If you're one of the last few who believe that the numbers on your portfolio statement are any more permanent than a spring day, a sun tan, or a wink in a bar, you may want to tune into John Motavalli's new book, Bamboozled At the Revolution: How Big Media Lost Billions in the Battle for the Internet. The book follows the stumbling attempt by the old school in the media to turn their so-called power into dominance over the new domain. Numbers fly back and forth. Executives fret over turf. Dreams of glory float skywards. Yet in the end, it's just as Ecclesiastes warned: 'All are of the dust, and all turn to dust again.'" Read on below. Bamboozled at the Revolution: How Big Media Lost Billions in the Battle for the Internet author John Motavalli pages 334 publisher Viking rating 7.0 reviewer Peter Wayner ISBN 0670899801 summary Stories from the big media boardrooms and their quest to extend their dominance.

The book is an inside tale told by an insider who chronicles the frantic days when the insiders were certain that the Internet was going to change everything. In this case, the insiders were the golden boys at media conglomerates who managed through some mixture of luck, devotion, and talent to control the worlds of cable television, newspapers, magazines, and movies. In the mid 1990's, the Internet threatened to overturn their world when they realized that anyone could set up a website, turn a bedroom into a corner office, and join the media. One minute some Mom in NJ is burning spaghetti sauce, the next minute Madonna is coming over for a chat on her weblog.

Reading the book is an ideal way for Slashdot readers to stick their nose into the exclusive tent filled with media moguls. The book does an ideal job of conveying the NY mindset that the world is made up of billions of sheep just waiting for the media to tell them how to bleat. When the Internet threatens to lure some of the flock, the big guys with the big corner offices start writing checks hoping to find a way to own a piece of it.

The book is played out chronologically and begins with Time-Warner's desire to build a full-service, interactive cable system in 1993. The final epilog was probably written in April and it's already a bit dated because it went to press before the accounting upheaval at AOL. In between, the executives of the big media companies struggle to find an Internet strategy-- something that never really gels for anyone.

Motavalli documents the progression with details that matter to media executives. We learn where people went to college (Haverford, Harvard), where they ate dinner (City Grill, "a gross strip mall" in Vienna, VA that serves great pizza,), the names of their yachts (Highlander), if their offices were big (yes), and if they got along (no). All of the executives in this book are always getting irked, losing confidence, chafing at some new org chart, or jettisoning some division.

Nothing seems to work for these guys. They try merging with each other; they try pop-up ads; and they try building portals. Yet through it all, the value of advertising just keeps dropping. The more time people spend on-line, the more page views they create. That means, more viewers mean lower ad prices. Uh-oh. The law of supply and demand seems to insist that success only begets failure. How are people going to make money on-line? We may never know, because nothing except the severance packages ever work out for the guys in the corner offices. The Internet won't be tamed.

To some extent, the title of the book is a misnomer. There aren't many stories of fast talking Internet guys pulling the wool over the eyes of the old media guys, at least in the way that Lyle Lanley talked the town of Springfield into building a monorail. The media moguls knew that the Internet was going to be big and they knew they only way they could be part of it was to invest. As Bob Pittman says at the beginning of the book, the networks ignored cable channels and then woke up one day to see that the upstarts controlled the new landscape. The old school media magnates knew they had no choice and they spent freely.

The title is also a bit wrong because the bamboozled are usually outright losers, conned completely -- and that certainly hasn't happened to all of the media titans. The list of the top news sites from Jupiter Media Metrix includes plenty of old corporate names . Despite the loss of cash, some of the old media companies were able to dominate the Internet. That doesn't mean they'll stay in the business and it doesn't mean that they're making money, but no one is worrying about the Mom in NJ.

This world view is a bit myopic. It should come as no surprise that web sites like the Drudge Report or Slashdot don't make it into the conversation. This is really a book about the few guys at the top of the New York media empires and their desire to somehow, some way, get a handle on this Internet thing. Truly interactive sites like Slashdot seem to be beyond the understanding of these guys because Motavalli notes that despite the "Letters to the Editors" section, most magazine and newspapers editors don't understand how to interact with readers.

The most telling details may be what didn't make the book. Motavalli spends little time talking about the words and images on the web pages. His subjects liked to use the word "content" as an abstraction for what the little guys serve to the little sheep. No one seemed to wonder whether it was good or bad, noir or funny, juvenile or sophisticated, or anything more than pure content. Aside from an occasional note about some truly lame web site, there's little discussion about what makes a web site good.

This is too bad because a few parts of the book hint that the guys below the big guys were really struggling to find the right voice for the on-line medium. They were asking questions like whether audience liked the ability to pick and choose the video snippets in the evening news. Was an on-line soap opera compelling enough to watch every day? Was there anyone who was willing to camp out by their keyboard to be the first to access some web site? Was buying an MP3 like buying a single or a full album? Did people want one portal or many?

As anyone who's posted to Slashdot in search of karma knows, finding a way to please the crowds is not an easy task. Every artist knows that after all of the hype, all of the press, and all of the marketing, a song, a book, an article, or a Slashdot comment needs to stand alone on the stage, if only for a brief second, and live or die on its merits. Motavalli's book best contribution may be showing us how little the media big wigs cared about these moments. It wasn't about the story or the presentation or even what the sheep seemed to like. It was all about the org chart.

Peter Wayner is a writer, consultant and media mogul himself. If you're one of the sheep reading this far, you might consider consuming his latest content on secure information handling ( Translucent Databases ) or his content on steganography ( Disappearing Cryptography). You can purchase Bamboozled from bn.com. Slashdot welcomes readers' book reviews -- to see your own review here, read the book review guidelines, then visit the submission page.

8 of 144 comments (clear)

  1. Doc Searles and the Cluetrain group ... by shrinkwrap · · Score: 2, Interesting

    ... were right after all.

  2. Maybe this is why SSSCA etc by dspeyer · · Score: 2, Interesting
    We've been seeing a lot lately how the mass media wants to attack computers and the internet wherever possible, usually on the basis of piracy, even though all available evidence suggests piracy is good for them. OTOH, if the main function of the internet (and this is true for me) is to produce and distribute content independantly of the mass media, and they know they can't control it, no wonder they're trying to shut it down!

    If this keeps up a few more years, they won't even be able to censure the news anymore.

  3. We have been SOOO Lucky! by heretic108 · · Score: 5, Interesting

    About the only reason the Net is quasi-democratic today, and why it isn't *only* a marketing force-feed to disempowered consumers, is timing and surprise.

    The traditional media playing field is a sheer vertical cliff, but the Internet turned out to be merely a steep hill.

    Why?

    Because decades before the net attracted real interest from Big Media, the universities with their more open philosophies built the underlying TCP/IP layers on a peer2peer premise.

    Yes, folks - yes, RIAA/MPAA/BSA - the core infrastructure of the Net is Peer2Peer!

    It would have taken only one media magnate, back in the 1970s, to envision the possibilities, and start taking interest in, investing in, and ultimately controlling the evolution of the technology, and the internet today (and the world) would have been a totally different place.

    Instead of TCP/IP, we could have instead seen a network architecture based on strictly one-way client-server, with absolutely no possibility of peer connections.

    Like, imagine if the Internet was instead completely modelled on SNA (or a variant thereof), where all protocols and protocol implementations were tightly patented and copyrighted, where you can't even log in without Big Media knowing about it and adding to your bill, where Big Media owns all the international backbones, routers, switches.

    As an example - in such a regime, you would need to sign a strict and expensive licensing agreement , and purchase and install expensive equipment, just to run a web server - and Big Media's editors would have total veto power all your content. They would charge whatever they like for each hit to your site - even $1/click. Any content clashing with their editorial policy would get pulled, and your site possibly terminated.

    Phew!

    History has been so kind to us! It feels to me that the Net is the offer of redemption for centuries of people's mass folly in giving away their rights.

    Let's not get complacent and lose what little freedom we have left in this new frontier.

    --
    -- In the beginning was the WORD, and the WORD was UNSIGNED, and the main(){} was without form and void...
  4. Re:why did they fuck up? by Golias · · Score: 3, Interesting
    While I agree that it's not really charity to give away somebody else's money, and I was never a fan of the pinko duo running Ben & Jerry's, I am compelled to point out two points:

    1. Lots of companies give generously to charity and/or the arts. It's good PR, and therefore it's like an advertising expense that you can write off your taxes, so it's not really all that irresponsible.

    2. Ben & Jerry's had the policy of charitable donations in place before they became a publicly traded company, so every investor who bought shares knew, going int, that they were buying into a company that gave money away. Pretty tough to argue that they were making the donations without shareholder consent under those circumstances.

    --

    Information wants to be anthropomorphized.

  5. Re:it's because they don't understand their custom by capt.Hij · · Score: 3, Interesting

    Your comments also imply that they do not understand the medium. This is somewhat ironic given that these are the people who are a part of the media and are supposed to have the best formal training on what the media is.

    One key lesson here is that you have to understand the medium that you are a part of, and you must also be willing to innovate. In this case that means be willing to give your customers some control, and more importantly allow your customers to have some sort of way to have their say.

    One of the reasons that some radio call in shows are so popular is that they allow at least a small subset of their listeners to add their $0.02. This has always been a vital key to the succcess of many radio show. Most content sources on the internet are still one way. I'd rather read the NY Times in print then simply read it on a screen.

  6. Fearful symmetry by elocutio · · Score: 3, Interesting

    I don't think that anything is beyond chance, and perhaps I mistakenly read a premise into the review that wasn't really there. However, if the book leaves the impression that the Internet is finally beyond the grasp of the media monoliths, I would have to strongly disagree.

    1. M & A Still Lives.

    In the 1970's, small, independent state banks dotted the landscape. You could drive any two miles of any commercial strip of any mid-American town, and you'd see no less that ten different independent banks. Then, in the 1980's, the winds of change began. Chase Manhattan became JP Morgan Chase. Citicorp merged with Travelers and became Citigroup. To me, the most interesting merger showed up on radar around 1983, when NCNB of North Carolina started buying banks in the southeastern United States before merging with C&S/Sovran to form NationsBank. Nations then played hardball and aquired Boatmen's, a leading Midwestern bank, and Barnett, the top bank in Florida.

    Meanwhile, BankAmerica also grew through acquisitions, operating mainly in California until the early 1980s, when it purchased Seafirst, a Seattle-based bank that operated in the Northwest. In the late 1980s, BankAmerica began purchasing failed savings and loans, and following its acquisition of Security Pacific Corp. in 1992, the bank had a major presence in 10 states.

    After merging with NationsBank, Bank of America became the world's largest bank.

    This story is completely relevant, because that is exactly what will continue to happen in the internet community. The media moguls will continue to jockey over key internet properties, and the whittling down of diverse sub-groups will be the result. Even venerable Slashdot became the property of a parent group, OSDN (although I happen to think that's a good thing).

    2. Taming the Whirlwind is the ultimate challenge.

    Just like Pecos Bill rode the cyclone into submission, you can bet there are many young, fresh MBA-types who want to be "the one who changed everything." Eventually, inevitably, someone will come out with a stronger business model or a more aggressive acquisition plan. The power-gobblers will try again.

    3. The Unification Siren

    I'm a web programmer by trade, and I'll admit that I'm a big fan of standardization. At the top of my wishlist are things like, one better-than-http protocol, one standard reference implementation of CSS, DHTML, Javascript, blah, blah. However, I fear that soon after the standardization cycle matures, we will witness the ownership of key pieces of the public internet pass from the hands of many to the hands of a few.

    I realize I'm being a tad alarmist, and there are measures that prevent this scenario. For one, the OSS community is flourishing, which is excellent. New, serious players are entering the Linux community every day, which is a good thing.

    But the diversity of power on the internet is still threatened by certain influential groups, like the RIAA. Legislative authority over internet and digital property is beginning to emerge, and as the constant stream of attorneys makes its way down the niches carved by the internet of the '90's, EULAs will get more aggressive. Serious debate about digital intellectual property will ensue. The next decade could be a very litigious time in the internet world. It may be that the virtual gunslingers of that coming era will parallel those who calmed the Western American frontier. I just hope the good guys win.

  7. Re:Misattribution by tempest303 · · Score: 4, Interesting

    I like seeing Ecclesiastes quoted once in a while. It's an incredible work that most Western Christians (or even people who are neither Christian nor Jewish, but interested in theology) don't seem to pay nearly as much attention to as it deserves.

    I couldn't agree more. I haven't been Christian for a very long time, but I have always held that particular book of the Bible in the highest regard. Talk about old school existentialism - this stuff beats Sartre by 2000 years. :-) And yet, unlike Sartre or Camus, Ecclesiastes isn't hopeless - rather a lesson in humility that is often unfortunately ignored. While most religions could really use a good reading of Ecclesiastes, I find it sad that most Christians themselves have very little, if any knowledge, of that particular book. My respect goes out to any priests/pastors/reverends/etc that manages to even halfway-successfully preach a sermon on Ecclesiastical wisdom in a modern Christian church.

  8. they understand by twitter · · Score: 3, Interesting
    The RIAA understands that people won't all chose the same 40 songs if they could see what's really available. That means that the five music publishers will have a hard time making money mass producing music.

    Print publishers understand that the web offers more current and more informative news and entertinment than they can put on paper. This means they won't be able to make NYT best sellers or the NYT itself on paper.

    Telcoms realize that they won't be able to charge per minute if they don't own all the physical media between people's houses and prevent all other technology.

    The government understands that it won't be able to control public opinion if public opinion is not controled by five music publishers, three or four broadcasters, API/UPI, and three or four "independent" news services.

    This is why you pay more now than ever for telcom, your cable company prevents you from running "servers" and there is little hope laws will be reasonable. Lots of people will lose their corner offices, but someone else will take their places and there will be fewer of them.

    --

    Friends don't help friends install M$ junk.