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  • feedwordpress 23:29:34 on 2018/06/19 Permalink
    Tags: , , , facebook, , , , , ,   

    My Senate Testimony 

    (image) Today I had a chance to testify to the US Senate on the subject of Facebook, Cambridge Analytica, and data privacy. It was an honor, and a bit scary, but overall an experience I’ll never forget. Below is the written testimony I delivered to the Commerce committee on Sunday, released on its site today. If you’d like to watch, head right here, I think it’ll be up soon.  Forgive the way the links work, I had to consider that this would be printed and bound in the Congressional Record. I might post a shorter version that I read in as my verbal remarks next…we’ll see.


     

    Honorable Committee Members –

     

    My name is John Battelle, for more than thirty years, I’ve made my career reporting, writing, and starting companies at the intersection of technology, society, and business. I appreciate the opportunity to submit this written and verbal testimony to your committee.

    Over the years I’ve written extensively about the business models, strategies, and societal impact of technology companies, with a particular emphasis on the role of data, and the role of large, well-known firms. In the 1980s and 90s I focused on Apple and Microsoft, among others. In the late 90s I focused on the nascent Internet industry, the early 2000s brought my attention to Google, Amazon, and later, Twitter and Facebook. My writings tend to be observational, predictive, analytical, and opinionated.

    Concurrently I’ve been an entrepreneur, founding or co-founding and leading half a dozen companies in the media and technology industries. All of these companies, which span magazines, digital publishing tools, events, and advertising technology platforms, have been active participants in what is broadly understood to be the “technology industry” in the United States and, on several occasions, abroad as well. Over the years these companies have employed thousands of staff members, including hundreds of journalists, and helped to support tens of thousands of independent creators across the Internet. I also serve on the boards of several companies, all of which are deeply involved in the technology and data industries.

    In the past few years my work has focused on the role of the corporation in society, with a particular emphasis on the role technology plays in transforming that role. Given this focus, a natural subject of my work has been on companies that are the most visible exemplars of technology’s impact on business and society. Of these, Facebook has been perhaps my most frequent subject in the past year or two.

    Given the focus of this hearing, the remainder of my written testimony will focus on a number of observations related generally to Facebook, and specifically to the impact of the Cambridge Analytica story. For purposes of brevity, I will summarize many of my points here, and provide links to longer form writings that can be found on the open Internet.

    Facebook broke through the traditional Valley startup company noise in the mid 2000s, a typical founder-driven success story backed by all the right venture capital, replete with a narrative of early intrigue between partners, an ambitious mission (“to make the world more open and connected”), a sky-high private valuation, and any number of controversial decisions around its relationship to its initial customers, the users of its service (later in its life, Facebook’s core customers bifurcated to include advertisers). I was initially skeptical about the service, but when Sheryl Sandberg, a respected Google executive, moved to Facebook to run its advertising business, I became certain it would grow to be one of the most important companies in technology. I was convinced Facebook would challenge Google for supremacy in the hyper-growth world of personalized advertising. In those early days, I often made the point that while Google’s early corporate culture sprang from the open, interconnected world wide web, Facebook was built on the precept of an insular walled garden, where a user’s experience was entirely controlled by the Facebook service itself. This approach to creating a digital service not only threatened the core business model of Google (which was based on indexing and creating value from open web pages), it also raised a significant question of what kind of public commons we wanted to inhabit as we migrated our attention and our social relationships to the web. (Examples: https://battellemedia.com/archives/2012/02/its-not-whether-googles-threatened-its-asking-ourselves-what-commons-do-we-wish-for ; https://battellemedia.com/archives/2012/03/why-hath-google-forsaken-us-a-meditation)

    In the past five or so years, of course, Facebook has come to dominate what is colloquially known as the public square – the metaphorical space where our society comes together to communicate with itself, to debate matters of public interest, and to privately and publicly converse on any number of topics. Since the dawn of the American republic, independent publishers (often referred to as the Fourth Estate – from pamphleteers to journalists to bloggers) have always been important actors in the center of this space. As a publisher myself, I became increasingly concerned that Facebook’s appropriation of public discourse would imperil the viability of independent publishers. This of course has come to pass.

    As is well understood by members of this committee, Facebook employed two crucial strategies to grow its service in its early days. The first was what is universally known as the News Feed, which mixed personal news from “friends” with public stories from independent publishers. The second strategy was the Facebook “Platform,” which encouraged developers to create useful (and sometimes not so useful) products and services inside Facebook’s walled garden service. During the rise of both News Feed and Platform, I repeatedly warned independent publishers to avoid committing themselves and their future viability to either News Feed or the Platform, as Facebook would likely change its policies in the future, leaving publishers without recourse. (Examples: https://battellemedia.com/archives/2012/01/put-your-taproot-into-the-independent-web ; https://battellemedia.com/archives/2012/11/facebook-is-now-making-its-own-weather ; https://shift.newco.co/we-can-fix-this-f-cking-mess-bf6595ac6ccd ; https://shift.newco.co/ads-blocking-and-tackling-18129db3c352)

    Of course, the potent mix of News Feed and a subset of independent publishers combined to deliver us the Cambridge Analytica scandal, and we are still grappling with the implications of this incident on our democracy. But it is important to remember that while the Cambridge Analytica breach seems unusual, it is in fact not – it represents business as usual for Facebook. Facebook’s business model is driven by its role as a data broker. Early in its history, Facebook realized it could grow faster if it allowed third parties, often referred to as developers, to access its burgeoning trove of user data, then manipulate that data to create services on Facebook’s platform that increased a Facebook user’s engagement on the platform. Indeed, in his early years as CEO of Facebook, Mark Zuckerberg was enamored with the “platform business model,” and hoped to emulate such icons as Bill Gates (who built the Windows platform) or Steve Jobs (who later built the iOS/app store platform).

    However, Facebook’s core business model of advertising, driven as it is by the brokerage of its users’ personal information, stood in conflict with Zuckerberg’s stated goal of creating a world-beating platform. By their nature, platforms are places where third parties can create value. They do so by leveraging the structure, assets, and distribution inherent to the platform. In the case of Windows, for example, developers capitalized on Microsoft’s well-understood user interface, its core code base, and its massive adoption by hundreds of millions of computer users. Bill Gates famously defined a successful platform as one that creates more value for the ecosystem that gathers around it than for the platform itself. By this test – known as the Gates Line – Facebook’s early platform fell far short. Developers who leveraged access to Facebook’s core asset – its user data – failed to make enough advertising revenue to be viable, because Facebook (and its advertisers) would always preference Facebook’s own advertising inventory over that of its developer partners. In retrospect, it’s now commonly understood in the Valley that Facebook’s platform efforts were a failure in terms of creating a true ecosystem of value, but a success in terms of driving ever more engagement through Facebook’s service.

    For an advertising-based business model, engagement trumps all other possible metrics. As it grew into one of the most successful public companies in the history of business, Facebook nimbly identified the most engaging portions of its developer ecosystem, incorporated those ideas into its core services, and became a ruthlessly efficient acquirer and manipulator of its users’ engagement. It then processed that engagement into advertising opportunities, leveraging its extraordinary data assets in the process. Those advertising opportunities drew millions of advertisers large and small, and built the business whose impact we now struggle to understand.

    To truly understand the impact of Facebook on our culture, we must first understand the business model it employs. Interested observers of Facebook will draw ill-informed conclusions about the company absent a deep comprehension of its core driver – the business of personalized advertising. I have written extensively on this subject, but a core takeaway is this: The technology infrastructure that allows companies like Facebook to identify exactly the right message to put in front of exactly the right person at exactly the right time are, in all aspects of the word, marvelous. But the externalities of manufacturing attention and selling it to the highest bidder have not been fully examined by our society. (Examples: https://shift.newco.co/its-the-advertising-model-stupid-b843cd7edbe9 ; https://shift.newco.co/its-the-advertising-model-stupid-b843cd7edbe9 ; https://shift.newco.co/lost-context-how-did-we-end-up-here-fd680c0cb6da ; https://battellemedia.com/archives/2013/11/why-the-banner-ad-is-heroic-and-adtech-is-our-greatest-technology-artifact ; https://shift.newco.co/do-big-advertisers-even-matter-to-the-platforms-9c8ccfe6d3dc )

    The Cambridge Analytica scandal has finally focused our attention on these externalities, and we should use this opportunity to go beyond the specifics of that incident, and consider the broader implications. The “failure” of Facebook’s Platform initiative is not a failure of the concept of an open platform. It is instead a failure by an immature, blinkered company (Facebook) to properly govern its own platform, as well as a failure of our own regulatory oversight to govern the environment in which Facebook operates. Truly open platforms are regulated by the platform creator in a way that allows for explosive innovation (see the Gates Line) and shared value creation. (Examples: https://shift.newco.co/its-not-the-platforms-that-need-regulation-2f55177a2297 ; https://shift.newco.co/memo-to-techs-titans-please-remember-what-it-was-like-to-be-small-d6668a8fa630)

    The absolutely wrong conclusion to draw from the Cambridge Analytica scandal is that entities like Facebook must build ever-higher walls around their services and their data. In fact, the conclusion should be the opposite. A truly open society should allow individuals and properly governed third parties to share their data so as to create a society of what Nobel laureate Edmond Phelps calls “mass flourishing.” My own work now centers on how our society might shift what I call the “social architecture of data” from one where the control, processing and value exchange around data is managed entirely by massive, closed entities like Facebook, to one where individuals and their contracted agents manage that process themselves. (Examples: https://shift.newco.co/are-we-dumb-terminals-86f1e1315a63 ; https://shift.newco.co/facebook-tear-down-this-wall-400385b7475d ; https://shift.newco.co/how-facebook-google-amazon-and-their-peers-could-change-techs-awful-narrative-9a758516210a ; https://shift.newco.co/on-facebook-a156710f2679 ; https://battellemedia.com/archives/2014/03/branded-data-preferences )

    Another mistaken belief to emerge from the Cambridge Analytica scandal is that any company, no matter how powerful, well intentioned, or intelligent, can by itself “fix” the problems the scandal has revealed. Facebook has grown to a size, scope, and impact on our society that outstrips its ability to manage the externalities it has created. To presume otherwise is to succumb to arrogance, ignorance, or worse. The bald truth is this: Not even Mark Zuckerberg understands how Facebook works, nor does he comprehend its impact on our society. (Examples: https://shift.newco.co/we-allowed-this-to-happen-were-sorry-we-need-your-help-e26ed0bc87ac ; https://shift.newco.co/i-apologize-d5c831ce0690 ; https://shift.newco.co/facebooks-data-trove-may-well-determine-trump-s-fate-71047fd86921 ; https://shift.newco.co/its-time-to-ask-ourselves-how-tech-is-changing-our-kids-and-our-future-2ce1d0e59c3c )

    Another misconception: Facebook does not “sell” its data to any third parties. While Facebook may not sell copies of its data to these third parties, it certainly sells leases to that data, and this distinction bears significant scrutiny. The company may not wish to be understood as such, but it is most certainly the largest data broker in the history of the data industry.

    Lastly, the Cambridge Analytica scandal may seem to be entirely about a violation of privacy, but to truly understand its impact, we must consider the implications relating to future economic innovation. Facebook has used the scandal as an excuse to limit third party data sharing across and outside its platform. While this seems logical on first glance, it is in fact destructive to long term economic value creation.

    So what might be done about all of this? While I understand the lure of sweeping legislation that attempts to “cure” the ills of technological progress, such approaches often have their own unexpected consequences. For example, the EU’s adoption of GDPR, drafted to limit the power of companies like Facebook, may in fact only strengthen that company’s grip on its market, while severely limiting entrepreneurial innovation in the process (Example: https://shift.newco.co/how-gdpr-kills-the-innovation-economy-844570b70a7a )

    As policy makers and informed citizens, we should strive to create a flexible, secure, and innovation friendly approach to data governance that allows for maximum innovation while also insuring maximum control over the data by all effected parties, including individuals, and importantly, the beneficiaries of future innovation yet conceived and created. To play forward the current architecture of data in our society – where most of the valuable information is controlled by an increasingly small oligarchy of massive corporations – is to imagine a sterile landscape hostile to new ideas and mass flourishing.

    Instead, we must explore a world governed by an enlightened regulatory framework that encourages data sharing, high standards of governance, and maximum value creation, with the individual at the center of that value exchange. As I recently wrote: “Imagine … you can download your own Facebook or Amazon “token,” a magic data coin containing not only all the useful data and insights about you, but a control panel that allows you to set and revoke permissions around that data for any context. You might pass your Amazon token to Walmart, set its permissions to “view purchase history” and ask Walmart to determine how much money it might have saved you had you purchased those items on Walmart’s service instead of Amazon. You might pass your Facebook token to Google, set the permissions to compare your social graph with others across Google’s network, and then ask Google to show you search results based on your social relationships. You might pass your Google token to a startup that already has your genome and your health history, and ask it to munge the two in case your 20-year history of searching might infer some insights into your health outcomes. This might seem like a parlor game, but this is the kind of parlor game that could unleash an explosion of new use cases for data, new startups, new jobs, and new economic value.”

    It is our responsibility to examine our current body of legislation as it relates to how corporations such as Facebook impact the lives of consumers and the norms of our society overall. Much of the argument around this issue turns on the definition of “consumer harm” under current policy. Given that data is non-rivalrous and services such as Facebook are free of charge, it is often presumed there is no harm to consumers (or by extension, to society) in its use. This also applies to arguments about antitrust enforcement. I think our society will look back on this line of reasoning as deeply flawed once we evolve to an understanding of data as equal to – or possibly even more valuable than – monetary currency.

    Most observers of technology agree that data is a new class of currency in society, yet we continue to struggle to understand its impact, and how best to govern it. The manufacturing of data into currency is the main business of Facebook and countless other information age businesses. Currently the only participatory right in this value creation for a user of these services is to A/engage with the services offered and B/purchase the stock of the company offering the services. Neither of these options affords the user – or society – compensation commensurate with the value created for the firm. We can and must do better as a society, and we can and must expect more of our business leaders.

    (More: https://shift.newco.co/its-time-for-platforms-to-come-clean-on-political-advertising-69311f582955 ; https://shift.newco.co/come-on-what-did-you-think-they-do-with-your-data-396fd855e7e1 ; https://shift.newco.co/tech-is-public-enemy-1-so-now-what-dee0c0cc40fe ; https://shift.newco.co/why-is-amazons-go-not-bodega-2-0-6f148075afd5 ; https://shift.newco.co/predictions-2017-cfe0806bed84 ; https://shift.newco.co/the-automatic-weapons-of-social-media-3ccce92553ad )

    Respectfully submitted,

    John Battelle

    Ross, California

    June 17, 2018

     
  • feedwordpress 23:59:30 on 2018/06/01 Permalink
    Tags: , , , , crypto, , , facebook, , , , , , , , , world wide web   

    Do We Want A Society Built On The Architecture of Dumb Terminals? 

    The post Do We Want A Society Built On The Architecture of Dumb Terminals? appeared first on John Battelle's Search Blog.

    God, “innovation.” First banalized by undereducated entrepreneurs in the oughts, then ground to pablum by corporate grammarians over the past decade, “innovation” – at least when applied to business – deserves an unheralded etymological death.

    But.

    This will be a post about innovation. However, whenever I feel the need to peck that insipid word into my keyboard, I’m going to use some variant of the verb “to flourish” instead. Blame Nobel laureate Edmond Phelps for this: I recently read his Mass Flourishing, which outlines the decline of western capitalism, and I find its titular terminology far less annoying.

    So flourishing it will be.

    In his 2013 work, Phelps (who received the 2006 Nobel in economics) credits mass participation in a process of innovation (sorry, there’s that word again) as central to mass flourishing, and further argues – with plenty of economic statistics to back him up – that it’s been more than a full generation since we’ve seen mass flourishing in any society. He writes:

    …prosperity on a national scale—mass flourishing—comes from broad involvement of people in the processes of innovation: the conception, development, and spread of new methods and products—indigenous innovation down to the grassroots. This dynamism may be narrowed or weakened by institutions arising from imperfect understanding or competing objectives. But institutions alone cannot create it. Broad dynamism must be fueled by the right values and not too diluted by other values.

    Phelps argues the last “mass flourishing” economy was the 1960s in the United States (with a brief but doomed resurgence during the first years of the open web…but that promise went unfulfilled). And he warns that “nations unaware of how their prosperity is generated may take steps that cost them much of their dynamism.” Phelps further warns of a new kind of corporatism, a “techno nationalism” that blends state actors with corporate interests eager to collude with the state to cement market advantage (think Double Irish with a Dutch Sandwich).

    These warnings were proffered largely before our current debate about the role of the tech giants now so dominant in our society. But it sets an interesting context and raises important questions. What happens, for instance, when large corporations capture the regulatory framework of a nation and lock in their current market dominance (and, in the case of Big Tech, their policies around data use?).

    I began this post with Phelps to make a point: The rise of massive data monopolies in nearly every aspect of our society is not only choking off shared prosperity, it’s also blinkered our shared vision for the kind of future we could possibly inhabit, if only we architect our society to enable it. But to imagine a different kind of future, we first have to examine the present we inhabit.

    The Social Architecture of Data 

    I use the term “architecture” intentionally, it’s been front of mind for several reasons. Perhaps the most difficult thing for any society to do is to share a vision of the future, one that a majority might agree upon. Envisioning the future of a complex living system – a city, a corporation, a nation – is challenging work, work we usually outsource to trusted institutions like government, religions, or McKinsey (half joking…).

    But in the past few decades, something has changed when it comes to society’s future vision. Digital technology became synonymous with “the future,” and along the way, we outsourced that future to the most successful corporations creating digital technology. Everything of value in our society is being transformed into data, and extraordinary corporations have risen which refine that data into insight, knowledge, and ultimately economic power. Driven as they are by this core commodity of data, these companies have acted to cement their control over it.

    This is not unusual economic behavior, in fact, it’s quite predictable. So predictable, in fact, that it’s developed its own structure – an architecture, if you will, of how data is managed in today’s information society. I’ve a hypothesis about this architecture – unproven at this point (as all are) – but one I strongly suspect is accurate. Here’s how it might look on a whiteboard:

    We “users” deliver raw data to a service provider, like Facebook or Google, which then captures, refines, processes, and delivers that data back as services to us. The social contract we make is captured in these services’ Terms of Services – we may “own” the data, but for all intents and purposes, the power over that information rests with the platform. The user doesn’t have a lot of creative license to do much with that data he or she “owns” – it lives on the platform, and the platform controls what can be done with it.

    Now, if this sounds familiar, you’re likely a student of early computing architectures. Back before the PC revolution, most data, refined or not, lived on a centralized platform known as a mainframe. Nearly all data storage and compute processing occurred on the mainframe. Applications and services were broadcast from the mainframe back to “dumb terminals,” in front of which early knowledge workers toiled. Here’s a graph of that early mainframe architecture:

     

    This mainframe architecture had many drawbacks – a central point of failure chief among them, but perhaps its most damning characteristic was its hierarchical, top down architecture. From an user’s point of view, all the power resided at the center. This was great if you ran IT at a large corporation, but suffice to say the mainframe architecture didn’t encourage creativity or a flourishing culture.

    The mainframe architecture was supplanted over time with a “client server” architecture, where processing power migrated from the center to the edge, or node. This was due in large part to the rise the networked personal computer (servers were used  for storing services or databases of information too large to fit on PCs). Because they put processing power and data storage into the hands of the user, PCs became synonymous with a massive increase in productivity and creativity (Steve Jobs called them “bicycles for the mind.”) With the PC revolution power transferred from the “platform” to the user – a major architectural shift.

    The rise of networked personal computers became the seedbed for the world wide web, which had its own revolutionary architecture. I won’t trace it here (many good books exist on the topic), but suffice to say the core principle of the early web’s architecture was its distributed nature. Data was packetized and distributed independent of where (or how) it might be processed. As more and more “web servers” came online, each capable of processing data as well as distributing it, the web became a tangled, hot mess of interoperable computing resources. What mattered wasn’t the pipes or the journey of the data, but the service created or experienced by the user at the point of that service delivery, which in the early days was of course a browser window (later on, those points of delivery became smartphone apps and more).

    If you were to attempt to map the social architecture of data in the early web, your map would look a lot like the night sky – hundreds of millions of dots scattered in various constellations across the sky, each representing a node where data might be shared, processed, and distributed. In those early days the ethos of the web was that data should be widely shared between consenting parties so it might be “mixed and mashed” so as to create new products and services. There was no “mainframe in the sky” anymore – it seemed everyone on the web had equal and open opportunities to create and exchange value.

    This is why the late 1990s through mid oughts were a heady time in the web world – nearly any idea could be tried out, and as the web evolved into a more robust set of standards, one could be forgiven for presuming that the open, distributed nature of the web would inform its essential social architecture.

    But as web-based companies began to understand the true value of controlling vast amounts of data, that dream began to fade. As we grew addicted to some of the most revelatory web services – first Google search, then Amazon commerce, then Facebook’s social dopamine – those companies began to centralize their data and processing policies, to the point where we are now: Fearing these giants’ power over us, even as we love their products and services.

    An Argument for Mass Flourishing

    So where does that leave us if we wish to heed the concerns of Professor Phelps? Well, let’s not forget his admonition: “nations unaware of how their prosperity is generated may take steps that cost them much of their dynamism.” My hypothesis is simply this: Adopting a mainframe architecture for our most important data – our intentions (Google), our purchases (Amazon), our communications and social relationships (Facebook) – is not only insane, it’s also massively deprecative of future innovation (damn, sorry, but sometimes the word fits). In Facebook, Tear Down This Wall, I argued:

    … it’s impossible for one company to fabricate reality for billions of individuals independent of the interconnected experiences and relationships that exist outside of that fabricated reality. It’s an utterly brittle product model, and it’s doomed to fail. Banning third party agents from engaging with Facebook’s platform insures that the only information that will inform Facebook will be derived from and/or controlled by Facebook itself. That kind of ecosystem will ultimately collapse on itself. No single entity can manage such complexity. It presumes a God complex.

    So what might be a better architecture? I hinted at it in the same post:

    Facebook should commit itself to being an open and neutral platform for the exchange of value across not only its own services, but every service in the world.

    In other words, free the data, and let the user decide what do to with it. I know how utterly ridiculous this sounds, in particular to anyone reading from Facebook proper, but I am convinced that this is the only architecture for data that will allow a massively flourishing society.

    Now this concept has its own terminology: Data portability.  And this very concept is enshrined in the EU’s GDPR legislation, which took effect one week ago. However, there’s data portability, and then there’s flourishing data portability – and the difference between the two really matters. The GDPR applies only to data that a user *gives* to a service, not data *co-created* with that service. You also can’t gather any insights the service may have inferred about you based on the data you either gave or co-created with it. Not to mention, none of that data is exported in a machine readable fashion, essentially limiting its utility.

    But imagine if that weren’t the case. Imagine instead you can download your own Facebook or Amazon “token,” a magic data coin containing not only all the useful data and insights about you, but a control panel that allows you to set and revoke permissions around that data for any context. You might pass your Amazon token to Walmart, set its permissions to “view purchase history” and ask Walmart to determine how much money it might have saved you had you purchased those items on Walmart’s service instead of Amazon. You might pass your Facebook token to Google, set the permissions to compare your social graph with others across Google’s network, and then ask Google to show you search results based on your social relationships. You might pass your Google token to a startup that already has your genome and your health history, and ask it to munge the two in case your 20-year history of searching might infer some insights into your health outcomes.

    This might seem like a parlor game, but this is the kind of parlor game that could unleash an explosion of new use cases for data, new startups, new jobs, and new economic value. Tokens would (and must) have auditing, trust, value exchange, and the like built in (I tried to write this entire post without mentioned blockchain, but there, I just did it), but presuming they did, imagine what might be built if we truly set the data free, and instead of outsourcing its power and control to massive platforms, we took that power and control and, just like we did with the PC and the web, pushed it to the edge, to the node…to ourselves?

    I rather like the sound of that, and I suspect Mssr. Phelps would as well. Now, how might we get there? I’ve no idea, but exploring possible paths certainly sounds like an interesting project…

    The post Do We Want A Society Built On The Architecture of Dumb Terminals? appeared first on John Battelle's Search Blog.

     
  • feedwordpress 22:11:05 on 2017/05/17 Permalink
    Tags: , , facebook, , , , ,   

    The Internet Big Five Is Now The World’s Big Five 

    The post The Internet Big Five Is Now The World’s Big Five appeared first on John Battelle's Search Blog.

    Back in December of 2011, I wrote a piece I called “The Internet Big Five,” in which I noted what seemed a significant trend: Apple, Microsoft, Google, Amazon, and Facebook were becoming the most important companies not only in the technology world, but in the world at large. At that point, Facebook had not yet gone public, but I thought it would be interesting to compare each of them by various metrics, including market cap (Facebook’s was private at the time, but widely reported). Here’s the original chart:

    I called it “Draft 1” because I had a sense there was a franchise of sorts brewing. I had no idea. I started to chart out the various strengths and relative weaknesses of the Big Five, but work on NewCo shifted my focus for a spell.

    Three years later, in 2014, I updated the chart. The growth in market cap was staggering:

    Nearly a trillion dollars in net market cap growth in less than three years! My goodness!

    But since 2014, the Big Five have rapidly accelerated their growth. Let’s look at the same chart, updated to today:

    Ummm..HOLY SHIT! Almost two trillion dollars of market cap added in less than seven years. And the “Big Five” have become, with a few limited incursions by Berkshire Hathaway, the five largest public companies in the US. This has been noted by just about everyone lately, including The Atlantic, which just employed the very talented Alexis Madrigal to pay attention to them on a regular basis. In his maiden piece, Madrigal notes that the open, utopian world of the web just ten years ago (Web 2, remember that? I certainly do…) has lost, bigly, to a world of walled-garden market cap monsters.

    I agree and disagree. Peter Thiel is fond of saying that the best companies are monopolists by nature, and his predictions seem to be coming true. But monopolies grow old, fray, and usually fail to benefit society over time. There’s a crisis of social responsibility and leadership looming for the Big Five — they’ve got all the power, now it’s time for them to face their responsibility. I’ll be writing much more about that in coming weeks and months. As I’ve said elsewhere, in a world where our politics has devolved to bomb throwing and sideshows, we must expect our businesses — in particular our most valuable ones — to lead.

    The post The Internet Big Five Is Now The World’s Big Five appeared first on John Battelle's Search Blog.

     
  • feedwordpress 21:30:55 on 2017/05/07 Permalink
    Tags: , facebook, , ,   

    Dear Facebook…Please Give Me Agency Over The Feed 

    The post Dear Facebook…Please Give Me Agency Over The Feed appeared first on John Battelle's Search Blog.

    (cross posted from NewCo Shift)

    Like you, I am on Facebook. In two ways, actually. There’s this public page, which Facebook gives to people who are “public figures.” My story of becoming a Facebook public figure is tortured (years ago, I went Facebook bankrupt after reaching my “friend” limit), but the end result is a place that feels a bit like Twitter, but with more opportunities for me to buy ads that promote my posts (I’ve tried doing that, and while it certainly increases my exposure, I’m not entirely sure why that matters).

    Then there’s my “personal” page. Facebook was kind enough to help me fix this up after my “bankruptcy.” On this personal page I try to keep my friends to people I actually know, with mixed success. But the same problems I’ve always had with Facebook are apparent here — some people I’m actually friends with, others I know, but not well enough to call true “friends.” But I don’t want to be an ass…so I click “confirm” and move on.

    On my public page, I post stuff from my work. I readily admit I’m not very good at engaging with this page, and I feel shitty whenever I visit, mainly because I don’t like being bad at media (and Facebook is extremely good at surfacing metrics that prove you suck, then suggesting ways to spend money to fix that problem). But, if you want to follow what I’m up to — mostly stuff I write or stuff we post on NewCo Shift, well, it’s probably a pretty decent way to do that.

    However, on my personal page, I’m utterly hopeless. Except for the very occasional random post (a picture of my drum kit? a photo of my kids here and there to appease my guilt?), I don’t view Facebook as a place to curate a “feed” of my life. The place kind of creeps me out, in ways I can’t exactly explain. It feels like work, like a responsibility, like a drug I should avoid, so I avoid it. I’ve had enough work (and drugs) in my life.

    But unlike me, most of true friends put a lot of care and feeding into their Facebook pages. It’s become a place where they announce important milestones, like births, graduations, separations, deaths, the works. These insanely important moments, alas, are all interspersed with random shots of pie, flowers, cocktails, sunsets, and endless, endless, endless advertisements for shit I really don’t care about.

    Taken together, the Facebook newsfeed is a place that I’ve decided isn’t worth the time it demands to truly be useful. I know, I could invest the time to mute this and like that, and perhaps Facebook’s great algos would deliver me a better feed. But I don’t, and I feel alone in this determination. And lately it’s begun to seriously fuck up my relationships with important people in my life, namely, my…true friends.

    I won’t go into details (it’s personal, after all), but suffice to say I’ve missed some pretty important events in my friends’ lives because everyone else is paying attention to Facebook, but I am not. As a result, I’ve come off looking like an asshole. No, wait, let me rephrase that. I have become an actual asshole, because the definition of an asshole is someone who puts themself above others, and by not paying attention to Facebook, that’s what I’ve become.

    That kind of sucks.

    It strikes me that this is entirely fixable. One way, of course, is for me to just swallow my pride and pick up the habit of perusing Facebook every day. I just tried that very thing again this weekend. It takes about half an hour or more each day to cull through the endless stream of posts from my 500+ friends, and the experience is just as terrible as it’s always been. For every one truly important detail I find, I have to endure a hundred things I’d really rather not see. Many of them are trivial, some are annoying, and at least ten or so are downright awful.

    And guess what? I’m only seeing a minority of the posts that my friends have actually created! I know Facebook is doing its best to deliver to me the stuff I care about, but for me, it’s utterly failing.

    Now, it’s fair to say that I’m an outlier — for most people, Facebook works just fine. The Feed seems to nourish most of its sucklers, and there’s no reason to change it just because one grumpy tech OG is complaining. BUT…my problem with my feed is in fact allegorical to what’s become a massive societal problem with the Feed overall: It’s simply untenable to have one company’s algorithms control the personalized feeds of billions of humans around the world. It’s untenable on so many axes, it’s almost not worth going into, but for a bit of background, read the work of Tristan Harris, who puts it in ethical terms, or Eli Parser, who puts it in political terms, or danah boyd, who frames it in socio-cultural terms. Oh, and then there’s the whole Fake News, trolling, and abuse problem…which despite its cheapening by our president, is actually a Really, Really Big Deal, and one that threatens Facebook in particular (did you see they’re hiring 3,000 people to address it? Does that scale? Really?!)

    It’s time for the model to change. And I have a modest and probably far too simple proposal for you to consider.

    This proposal breaks all manner of Silicon Valley product high holy-isms, but bear with me. I think at the end of the day, it’s what we need to get beyond the structural limitations of trusting one company with so much power over our informational diets.

    The short form version of my solution is this: Give me filter control over my feed. I know — this probably breaks Facebook’s stranglehold on our attention, and therefore, impacts their business model in unacceptable ways. But I could argue the reverse is true (but this is already getting long, and that’s another post.)

    So, when I come to Facebook, here’s what I’d love: Ask me what I’m looking for, and present me with simple ways to filter by the things I want to see. As far as I can tell, the only way to filter your Feed today is to toggle between “Top Stories” and “Most Recent.” That’s lame. Here are some possible additions:

    • Close Friends. Let me see just posts from folks I’m truly close to. Facebook already lets you tag people as “close friends,” but you can’t see only what they post and nothing else. You can “see first” people, but that feels like a half measure at best.
    • Key Moments. Let everyone tag posts they believe are truly important — the deaths, the births, the divorces, the new job, the graduations. Sure, there will be spammers, but hell, Facebook’s good at catching that shit. I know Facebook lets you tag your posts as “Life Events” (did you know that?! I just found out…), but… why can’t you filter the Feed so you only see the ones that matter?
    • Outrage. This is a kind of a joke, but with a purpose: let me see just posts that are political rants. This kind of content has overtaken Facebook, so why not give it a filter of its own so you can see it when you want, or filter it out if you don’t?
    • Kittens. This is the fluff setting. Users, posters, and Facebook’s own AI/Algos can identify this stuff and filter it into a category of its own. This is where the funny videos and pictures of pets go. This is where the endless stream of food porn goes. This is where most of the content from Buzzfeed goes.
    • Bubble Breaker. Show me posts that present views opposite my own, or that force me to engage with ideas I’ve not considered before. This could become an incredibly powerful feature, if it’s done right.

    There are probably tons more, and most likely these examples aren’t even the best ones to focus on. And I am sure the smart folks at Facebook have considered this idea, and determined it’s a terrible one for all manner of fine reasons.

    But my point is this: Facebook does not really allow us to decide what the Feed is feeding us, and that’s a major problem. It leaves agency in the hands (digits?) of Facebook’s algorithms, and as much as I’d like to believe the company can create super intelligent AIs that nourish us all, I think the facts on the ground state the opposite. So give us back the power to determine what we want to see. We might just surprise you.

    The post Dear Facebook…Please Give Me Agency Over The Feed appeared first on John Battelle's Search Blog.

     
  • feedwordpress 16:11:29 on 2017/03/22 Permalink
    Tags: facebook, , , viral,   

    It’s Time For Facebook to Start Making Media 

    The post It’s Time For Facebook to Start Making Media appeared first on John Battelle's Search Blog.

    There’s only one company that can possibly spin media gold on Facebook. And that’s Facebook.

    Round and round and round goes the debate — Facebook’s not a media company, Facebook’s not a traditional media company, Facebook’s a new kind of media company. Facebook’s gonna pay media creators to make stuff on Facebook! Wait, no they’re not. Wait, maybe they will make it themselves! Gah

    We’ve seen this debate before — Google refused to call itself a media business for years and years. Now, well…YouTube. And Play. Twitter had similar reluctancies, and now…the NFL (oh, and college softball!). Microsoft tried, but ultimately failed, to be a media company (there’s a reason it’s called MSNBC), and had the sense to retreat from “social media” into “enterprise tools” so as to not beg confusion. Then again, it just bought LinkedIn, so the debate will most certainly flare up (wait, is LinkedIn a media company?!).

    Truth is, with all these platform players, media is not only a crucial product, it’s the primary product. I’m not going to get into why in this post (I will next time, promise.) Instead I’ll predict that quite soon, platforms, including Facebook, will lose their equivocation and embrace content creation.

    In the meantime, let’s talk about cute toddlers, shall we?

    Here’s a video of two cute toddlers practicing for a future as nightclub promoters (or WWF entertainers, it’s hard to decide). It’s been watched nearly 70 million times on Facebook. In one day.

    Did you read that right? Yep. 70 million times. In one day.

    The video is two minutes long. Scores of “traditional” media outlets have somehow gotten access to the video, chroming it up with their own logos, music, and advertising. But the thing went viral on Facebook, and it’s Facebook that insured the kids got their 140 million minutes of fame (and counting).

    Here’s the thing. There are literally dozens, if not thousands, of these kinds of media objects on Facebook every day. Sure, maybe they’re not all 70-million-views-in-one-day big, but nevertheless, they’re media gold. They spread all over Facebook, all day long, but what drives me crazy is there’s no way to find them reliably. There’s no media product on Facebook that curates these gems, there’s only media distribution. And as everyone in the Valley (and in media) will tell you, Product Matters.

    So it’s time for Facebook to start making good media products. I mean, who wouldn’t want to visit a “Facebook trending viral videos” product at least once a day? Right? Search for viral videos on Facebook now, and you get dreck like this. I don’t know what angle these jokers’ are playing (I mean, there’s no ads there…), but it ain’t what Facebook, with their inside knowledge of what makes stuff go viral, could create.

    Sure, there are a ton of “media” players trying to find a way to make a living on Facebook — and the entire media world is now fretting over how dependent they’ve become on the attention black hole Facebook’s become. But the truth is, only Facebook knows what’s really happening behind that 2 billion person curtain. Anyone else making shit for Facebook is running with cement in their shoes.

    Facebook will never open up its ecosystem and let a million media flowers bloom. And the “media experience” on the site blows. Soon enough, they’ll have to fix it. It’s time for them to get on with it.

    The post It’s Time For Facebook to Start Making Media appeared first on John Battelle's Search Blog.

     
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