| 00:00:31 | Kerry, John F. | RUNNING A LITTLE BIT BEHIND SCHEDULE. BUT HOPEFULLY WE'LL GET A LITTLE BIT OF A BREATHER HERE SO WE CAN HAVE SOME UNINTERRUPTED MOMENTS HERE WHICH WE WOULD LIKE TO HAVE. WELCOME ALL TO A BRAVE NEW WORLD. THIS HEARING IS GENERALLY GEARED TO EXAMINE, THE TO UNDERSTAND WHAT WE DON'T KNOW, TO TRY TO FIGURE OUT FROM VARIOUS PEOPLE IN THESE FIELDS OF EXPERTISE OF NEW MEDIA AND THE EXISTING MEDIA OF WHERE WE'RE GOING. SOME PEOPLE MIGHT ASK WHY THE COMMITTEE? WHY IS THE GOVERNMENT INTERESTED IN AND WHAT ARE WE LOOKING AT? THE FACT IS THAT WE DO HAVE A RESPONSIBILITY FOR THE LICENSING OF BROADCASTS. WE HAVE A RESPONSIBILITY FOR THE REGULATORY OVERSIGHT OF OWNERSHIP OF CABLE, SATELLITE, OTHER ISSUES WITH RESPECT TO COMMUNICATIONS. AND NEEDLESS TO SAY, HOW THE AMERICAN PEOPLE GET THEIR INFORMATION, WHAT THE STRUCTURE OF OWNERSHIP IS, IS OF ENORMOUS INTEREST TO ALL OF US, BECAUSE IT IS THE FOUNDATION OF OUR DEMOCRACY. A BRAS PLAQUE ON A WALL AT COLUMBIA UNIVERSITY OF JOURNALISM BEARS THE WORDS OF THE LEGENDARY NEWSPAPER PUB LIBBER, JOSEPH PULITZER. OUR REPUBLIC AND ITS PRESS WILL RISE AND FALL TOGETHER. IF WE TAKE SERIOUSLY THIS NOTION THAT THE PRESS IS THE FOURTH ESTATE OR THE FOURTH BRANCH OF GOVERNMENT, THEN WE NEED TO EXAMINE THE FUTURE OF JOURNALISM IN THE DIGITAL INFORMATION AGE, WHAT IT MEANS TO OUR REPUBLIC AND TO OUR DEMOCRACY. AMERICANS ONCE COUNTED ON NEWSPAPERS TO BE THE ROCK ON WHICH JOURNALISM, THE BEST SENSE OF THE WORD JOURNALISM WAS BASED. AS PRINCETON UNIVERSITY COMMUNICATION PROFESSOR NOTES IN HIS MOST RECENT EDITION OF COLUMBIA REVIEW" MORE THAN ANY OTHER MEDIUM, NEWSPAPERS HAS BEEN THE EYES ON THE STATE, OUR CHECK ON PRIVATE ABUSES, OUR CIVIC ALARM SYSTEMS. MOST OF US IN THIS ROOM PROBABLY BEGIN OUR DAY STILL WITH A NEWSPAPER. MAYBE TWO OR THREE. NEWSPAPERS HAVE BEEN A PART OF OUR DAILY LIVES SINCE WE WERE OLD ENOUGH TO READ AND WE RERN LEARNED ABOUT OUR NEIGHBORHOODS AND OUR COUNTRIES AND OUR WORLD. THEY ENTERTAINED US AND ALWAYS INFORMED US. BUT TODAY IT'S FAIR TO SAY NEWSPAPERS LOOK LIKE AN ENDANGERED SPECIES AND MANY PEOPLE IN THE INDUSTRY AND OUTSIDE OF IT WILL SO WRITING. THE LATEST CIRCULATION FIGURE RES LEASED JUST LAST WEEK SHOW THAT THE LARGEST METRO NEWSPAPERS ARE CONTINUING TO LOSE DAILY AND SUNDAY READERS. A LONG TIME TREND I MIGHT ADD A TREND THAT BEGAN BEFORE THE ECONOMIC DOWNTURN IN THE COUNTRY. BUT IT IS A TREND THAT'S ACCELERATE TO RECORD RATES. MAJOR METRO DAILIES IN GREAT CITIES LIKE BOSTON, SAN FRANCISCO, HOUSTON, MIAMI AND ATLANTA ALL SAW DOUBLE-DIGIT PERCENTAGE DECREASES IN DAILY CIRCULATION. THE 150-YEAR-OLD ROCKY MOUNTAIN NEWS CEASED PUBLISHING ALTOGETHER THIS YEAR. THE 146-YEAR-OLD SEATTLE POST INTELLIGENCE AND THE 100-YEAR-OLD CHRISTIAN SCIENCE MONITOR SHIFTED COMPLETELY TO THE WEB. AND THE "DETROIT FREE PRESS"" CUT HOME DELIVERY TO ONLY THREE DAYS. IT TOOK A WEEK OF NEGOTIATIONS BEFORE A TENTATIVE DEAL BETWEEN THE NEW YORK TIMES COMPANY AND THE BOSTON NEWSPAPER GUILD COULD BE REACHED TO PREVENT THE BOSTON CLOEB FROM SHUTTING ITS DOORS. LET ME EMPHASIZE THAT THIS HEARING IS NOT AND NEVER WAS INTENDED TO BE A HEARING ABOUT BOSTON NEWSPAPERS. IT'S ABOUT OUR NATION'S NEWSPAPERS AND THE CONCEPT AND TIMING OF THIS HEARING WAS SET WELL BEFORE WE EVEN KNEW ABOUT THE ISSUES WITH RESPECT TO BOSTON. IF YOU LOOK AT THE STOCK MARKET, THE FORTUNES OF THE NEWSPAPER INDUSTRY ARE TOUGH. EARLIER THIS YEAR, A SHARE OF THE NEW YORK TIMES SOLD FORLESS THAN THE $4 IT COST FOR A SUNDAY ADDITION OF THE TIMES, THOUGH I'VE SEEN THAT THOSE PRICES NOW PROBABLY GO UP. IN 2008, NEWSPAPER STOCK PRICES FELL AN ASTOUNDING 83%. THE THE NEW YORK TIMES BOUGHT THE BOSTON SGLOEB FOR $1. BILLION BUT THE PRICE IS NOW WORTH $800 MILLION. THE ORACLE OF OMAHA HIMSELF, WARREN BUFFET, GAVE NEWSPAPERS A VOTE OF NO-CONFIDENCE WHEN HE SAID HE WOULDN'T INVEST IN NEWSPAPERS AT ANY PRICE. THESE ARE STARK NUMBERS. BROADCAST JOURNALISM IS NOT MUCH BETTER. WE'RE HERE TO TALK NOT ONLY ABOUT THE CONDITIONS THAT LED TO THESE DOLT JOLTING STATISTICS BUT ABOUT WHAT THEY MEAN TO US, WHAT THEY MAY MEAN TO A COUNTRY THAT APPEARS TO BE READINGLESS OR THAT FINDS INFORMATION IN SNIPETS RATHER THAN WHOLE PIECES. WE NEED TO UNDERSTAND WHAT IT MEANS ABOUT NEWS DELIVERY DURING A TIME OF GREAT CREATIVE TURMOIL AND TRANSITION WITHIN THE MARKET FOR NEWS DELIVERY. AND HOW WE MIGHT PRESERVE THE CORE SOCIETAL FUNCTION THAT IS SERVED BY AN INDEPENDENT AND DIVERSE NEWS MEDIA. WE SAW A SIGN OF THE TIMES JUST THIS MORNING WHEN AMAZON INTRODUCED A NEW LARGER VERSION OF ITS E BOOK READER KINDLE AS AN ALTERNATIVE TO THE NEWSPAPER IN AN EFFORT TO SALVAGE THE CHALLENGED PRINT MEDIA. AS A MEANS OF CONVEYING NEWS IN A TIMELY WAY, PAPER AND INK ARE LESS ENVOGUE, ECLIPSED BY THE POWER, EFFICIENTLY IS AND TECHNOLOGICAL ELEGANCE OF THE INTERNET. BUT JUST LOOKING AT THE EROSION OF NEWSPAPERS IS NOT THE FULL PICTURE. IT'S JUST ONE CASUALTY OF A COMPLETELY SHIFTS AND CHURNING INFORMATION LANDSCAPE. MOST EXPERTS BELIEVE THAT WHAT WE ARE SEEING HAPPEN IN NEWSPAPERS IS JUST THE BEGINNING. SOON, PERHAPS IN A MATTER OF A FEW YEARS, SOEM PREDICT THAT TELEVISION AND RADIO WILL EXPERIENCE WHAT NEWSPAPERS ARE EXPERIENCING NOW. ONE OF THE REASONS I THINK WE FIND THIS IMPORTANT IS I CAN REMEMBER SITTING RIGHT HERE IN THIS ROOM IN 1996 WHEN UNDER THE STEWARDSHIP OF SENATOR HOLLINGS AND OTHERS, WE REWROTE THE TELECOMMUNICATIONS ACT OF THE COUNTRY AND WE HAD LONG DEBATES ALL THROUGH 1996 ABOUT TELEPHANY. LITTLE DID WE KNOW THAT ALMOST WITHIN FIVE MONTHS OR SIX MONTHS OF THE SIGNING OF THE BILL AND THE PASSAGE OF THE REORDERING IN AMERICA, TELEPHONY WAS ALMOST OBSOLETE, ECLIPSED BY DATA. AND WE HAD BARELY HAD A DISCUSSION OF DATA DURING THAT TIME. IT'S REALLY BASED PARTLY ON THAT LESSON THAT WE'RE HAVING THIS HEARING TODAY. SO THAT WE TROO TO FIGURE OUT AHEAD OF TIME WHAT MIGHT BE OCCURRING AND WE THINK RAGS RATIONALLY, CAREFULLY, AND OBVIOUSLY WITH SOME SENSITIVITY OF ALL THE ISSUES WE'LL GET INTO TODAY ABOUT WHAT THE FUTURE WILL LOOK LIKE. THE RISE OF NEWSPAPERS AND BROADCAST NEWS WAS MADE POSSIBLE BY THE FACT THAT THEY SERVED AS MARKET INTERMEDIARIES. THAT IS THEY CONNECTED BUYERS AND SELLERS THROUGH ADVERTISING. BUT THE INTERNET MAKES IT POSSIBLE FOR BUY AERNS SELLERS TO MEET AT VIRTUALLY NO COST. IT'S NO SURPRISE THEN THAT WITH ADVERTISING DOLLARS GOING ELSEWHERE, THESE ARE HARD TIMES FOR WHAT IS NOW BEING CALLED THE LEGACY MEDIA. THESE ARE TIMES OF GREAT INVASION. AS JOURNALISTS BOTH INSIDE AND OUTSIDE OF THE MAINSTREAM MEDIA ARE COLLECTIVELY SEARCHING FOR AN ECONOMIC SUPPORT SYSTEM FOR GOOD, SOLID REPORTING. JOURNALISTS LAID OFF OR BOUGHT OUT BY THE OLD MEDIA ARE BUILDING UP WEB-ONLY NEWS SITES IN CITIES ACROSS THE COUNTRY TO MAKE UP FOR THE SHRINKING NEWS ROOMS IN LOCAL NEWSPAPERS OR TO REACH SPECIALIZED AUDIENCES. OBVIOUSLY ONE OF THE QUESTIONS IS, IS THIS JUST A NATURAL TRANSFORMATION WHERE THAT IS GOING TO BE REPLACED IN A NATURAL WAY? AS THE ECONOMIC MODEL CONTINUES TO SHIFT IMPORTANT QUESTIONS REQUIRE ANSWERS. AS ADVERTISING REVENUES CONTINUE TO VANISH, WILL THERE BE ROOM IN THE BUDGET FOR THE GREAT INVESTIGATIVE JOURNALISM THAT MARKED THE LAST HALF OF THE 20th CENTURY? WILL THE EMERGING NEWS MEDIA BE MORE FRAGMENTED BY INTERESTS, FINANCIAL INTERESTS, OTHER INTERESTS, POLITICAL PARTISANSHIP? THERE ALSO IS THE IMPORTANT QUESTION OF WHETHER ONLINE JOURNALISM WILL SUSTAIN THE VALUES OF FROFGSAL JOURNALISM, THE WAY THE NEWSPAPER INDUSTRY HAS. THE NEW DIGITAL ENVIRONMENT CERTAINLY IS MORE OPEN TO CITIZEN JOURNALISM. BLOGGERS AND THE FREE EXPRESSION OF OPINIONS. IN THE LAST EIGHT YEARS WE'VE GONE FROM ZERO BLOGGERS TO MORE THAN 70 MILLION. AND NEWS IS BROKEN OVER TWITTER FEEDS AND CELL PHONE INS STEAD OF OVER BROADCAST NETWORKS. JUST LOOK AT THE WAY THAT JANICE, A NEW YORK CITY FERRY PASSENGER BROKE THE NEWS THAT FLIGHT 1549 OUT OF LaGUARDIA HAD LANDED IN THE HUDSON RIVER. HE TOOK PICTURE HIMSELF AND TWEETED THE FEED TO AN AUDIENCE OF THOUSANDS. CONSIDER THIS. GOOGLE TOPPED $21.7 BILLION IN ADVERTISING REVENUE 2008, BUT THE NEWS IT PROVIDES IS AN AGGREGATE FROM FREE NEWS SERVICES. CRAIGSLIST WHICH PROVIDES FREE CLASSIFY ADS ONLINE GETS ABOUT 1 BILLION VISITS A MONTH, COSTING NEWSPAPERS BILLIONS OF DOLLARS A YEAR. YOUTUBE HAS MORE THAN 100 MILLION VIEWERS EACH DAY AND ABOUT 65,000 NEW ITEMS, VIDEOS, UPLOADED DAILY. ITS AD REVENUE REPORTEDLY TOTALS SOMEWHERE BETWEEN $120 MILLION A YEAR. FACEBOOK NOW HAS 200 MILLION USERS AND IS ADDING 700,000 NEW USERS A DAY. IRONICALLY, THE NEW YORK TIMES HAS A PAID CIRCULATION OF 1.45 MILLION. BUT ON FACEBOOK, THEY HAVE 424,926 FRIENDS. MOBILE SUBSCRIBERS TOTAL SOME 250 MILLION IN THE UNITED STATES AND SEND MORE THAN A BILLION TEXT MESSAGES EACH DAY. THIS TWO-WAY INTERACTIVE MEDIA IS GETTING MORE AND MORE ATTENTION FROM ADVERTISER PIPTS'S ESTIMATED THAT THE MOBILE ADVERTISING INDUSTRY ALREADY EXCEEDS 2 BILLION ANNUALLY. THE WORDS OF JOSEPH PULITZER ARE STILL TRUE, I BELIEVE. OUR REPUBLIC AND ITS PRESS WILL RISE OR FALL TOGETHER. CERTAINLY THE QUALITY OF THE DIALOGUE IN THE REPUBLIC WILL. WE ARE JUST TALKING ABOUT A NEW KIND OF PRESS, A NEW MEDIA. ONE THAT PULITZER AND ALL OF THE OTHER NEWSPAPER BARE RECONNAISSANCE OF THIS COUNTRY NEVER ENVISIONED. THIS NEW KIND OF PRESS, THIS NEW MEDIA IS GOING TO REQUIRE A NEW ECONOMIC MODEL. AND THAT IS SOMETHING THAT EVERYONE IS STILL TRYING TO FIGURE OUT. THAT'S WHY I WANTED US ALL TO SIT DOWN AND TALK ABOUT IT AND TRY TO FIGURE IT OUT TOGETHER. IS THERE ANY GOVERNMENT ROLE AT ALL? I DON'T KNOW THE ANSWER TO THAT. BUT WE WANT TO TRY TO UNDERSTAND IT. IS THERE SIMPLY A NORMAL TRANSITION IN THE MARKETPLACE? AND WILL EVERYTHING TURN OUT JUST FINE? WE'RE GOING TO HEAR FROM SOME VERY, VERY INTERESTING PEOPLE WHO ARE THE VANGUARD, IN THE MIDDLE OF THIS TRANSFORMATION IN VARIOUS WAYS. LET ME JUST MENTION ONE QUICK THING BEFORE WE BEGIN. WHILE WE'RE SEARCHING FOR ANSWERS TO THESE QUESTIONS, ONE THING WE CAN DO TODAY IS RECOGNIZE THIS TRANSITION SOMEWHAT IN OUR OWN LIVES, AND THAT IS TO UNDERSTAND THE CONTRIBUTIONS OF ONLIENG JOURNALISTS WHO SHOULDER THE RESPONSIBILITY THAT COMES WITH COVERING CONGRESS. AND WE OUGHT TO MAKE SURE THE RULES FOR CREDENTIALIZING CONGRESSIONAL REPORTERS ARE MODERNIZED. I INTEND TO WORK WITH CHUCK SCHUMER AND THE STANDING COMMITTEE OF CORRESPONDENTS TO MAKE SURE THAT WE DO THAT. THE STANDING COMMITTEE OF CORRESPONDENTS WAS CREATED IN 1877 AS A WAY TO ORGANIZE AND REGULATE MEDIA ACCESS TO THE HALLS OF CONGRESS. IT WAS CREATED TO RID THE PRESS GALLERIES OF LOBBYISTS. I GUESS THINGS HAVEN'T CHANGED. OR CLAIMS AGENTS AS THEY WERE ONCE CALLED. AND IT WAS CREATED TO REPLACE A SYSTEM OF QUESTIONABLE JOURNALISM PRACTICES. BEFORE THE COMMITTEE WAS CREATED, IN FACT, MARK TWAIN WORKED AS A SECRETARY TO SENATOR WILLIAM STEWART OF NEVADA AT THE SAME TIME HE WAS ALSO A LETTER WRITER TO TWO NEWSPAPERS. THE CONGRESSIONAL CREDENTIALIZING SYSTEM HAS ACTUALLY WORKED WELL FOR MORE THAN 130 YEARS SO WE WANT TO BE CAREFUL HOW WE CHANGE IT, BUT THE RULES HAVE UNDERGONE SOME CHANGES OVER THE YEARS. AND IN THE LAST THREE YEARS, THE COMMITTEE HAS STRUGGLED WITH HOW TO ADDRESS THE DIGITAL INFORMATION AGE. NOW IS THE TIME TO MAKE SURE WE TREAT ONLINE REPORTERS FAIRLY AND WE'RE GOING TO WORK TO TRY TO DO THAT. SENATOR INAYE? |
| 00:14:27 | Inouye, Daniel K. | I WANT TO COMMEND YOU FOR SCHEDULING THIS HEARING. IT'S A VERY IMPORTANT MATTER BRFR US. YOUR STATEMENT HAS COVERED THE LANDSCAPE LANDSCAPE. I HAVE A STATEMENT BUT I DON'T WISH TO BE REDUNDANT. CONGRATULATIONS, SIR, AND THANK YOU FOR WHAT YOU'RE DOING. |
| 00:14:57 | Kerry, John F. | THANK YOU FOR YOUR LEADERSHIP SO MANY YEAR SS. THIS IS THE FIRST SUBCOMMITTEE OWN COMMUNICATIONS TECHNOLOGY AND THE INTERNET. WE HAVE A LOT OF WORK TO DO IN TERMS OF PRIVACY, INTERNET NEUTRALITY AND OTHER ISSUES. SENATOR McCASKILL? I'M SORRY, SENATOR UDALL. |
| 00:15:33 | >> | THANK YOU FOR THAT EXCELLENT STATEMENT. I LIKE SENATOR INOUYE WILL PUT MY STATEMENT IN THE RECORD. THE "ALBUQUERQUE TRIBUNE" HAS FOLDED IN THE LAST COUPLE OF YEARS. THE LARGEST NEWSPAPER IN OUR SECOND LARGEST CITY HAS HAD TO LAY PEOPLE OFF. SO WHAT SENATOR CARDIN IS TRYING TO DO, LOOK AT SOLUTIONS, I THINK ALL OF US FEEL THAT WE ARE BEING PRESSED TO THE LIMITS IN TERMS OF WHAT WE'RE DOING ON GOOD, STRONG INVESTIGATIVE JOURNALISM. AND SO I WOULD LIKE TO SEE SOME PROGRESS AND I KNOW MY FRIEND BEN CARDIN IS HERE TO TESTIFY AND HE HAS ONE PROPOSAL AND I HOPE OUR WITNESSES WILL COME UP WITH MANY MORE AND WE CAN PROCEED DOWN THE ROAD ON THIS. I PUT MY STATEMENT IN THE RECORD WITH YOUR CONSENT, MR. CHAIRMAN AND PROCEED TO THE WITNESSES AS QUICKLY AS POSSIBLE. |
| 00:16:39 | Kerry, John F. | THANK YOU VERY MUCH, SENATOR UDALL. |
| 00:16:55 | Thune, John R. | THANK YOU. I THINK WHEREVER YOU LIVE IN THE COUNTRY, WHERE YOU READ "THE WASHINGTON POST" OR MY HOMETOWN NEWSPAPER, ALL OF THOSE NEWSPAPERS MAKE A CONTRIBUTION TO THEIR COMMUNITIES. BUT I THINK WHAT WE'RE SEEING TODAY IS THEY'RE LOOKING AT DRAMATICALLY DIFFERENT FORMS OF DELIVERING NEWS THAN THEY EVER HAVE BEFORE. I THINK THAT'S SOMETHING THAT IS WITH US AND WITH US PERMANENTLY. I HAVE TWO TEENAGE DAUGHTERS. ONE IS NOT A TEENAGER, BOTH ARE IN COLLEGE. NEITHER OF WHOM READS THE NEWSPAPERS, BUT THEY ALL LIVE ON THE WEB AND BETWEEN INTERNET BLOGS, MOBILE HAND HELD DEVICES AND 24-HOUR CABLE NEWS COVERAGE, SATELLITE NEWS ROOM PRAMMING, THERE'S SO MANY OTHER WAYS PEOPLE ARE GETTING NOW THEIR INFORMATION. IT DOES PRESENT SOME VERY DISTRESSING CHALLENGES FOR NEWSPAPERS IN THE FORM OF DECREASING SUBSCRIBERSHIPS AND CLASSIFIEDS. AS YOU SEE MORE AND MORE OF THE LARGER NEWSPAPERS THAT ARE HAVING TO GO OUT OF BUSINESS OR DECLARE BANKRUPTCY OR LOOK FOR BUYER, IT'S A GREAT CONCERN TO ALL OF US. I'M NOT SURE I KNOW WHAT THE ANSWERS ARE EITHER BUT I'M ANXIOUS TO HEAR FROM THE FANLS ABOUT WHAT THEIR VIEWS ARE ON THE STATE OF THE INDUSTRY AND WHAT MIGHT BE DONE TO PRESERVE THIS IMPORTANT PART OF OUR HERITAGE AND DEMOCRACY. WITH THAT, MR. CHAIRMAN, I WOULD YIELD BACK. |
| 00:18:33 | Cantwell, Maria | I WOULD LIKE TO IF I COULD ENTER SOME SYSTEM FROM THE SEATTLE TIMES. |
| 00:18:41 | Kerry, John F. | ABSOLUTELY. SORRY I PASSED YOU BY. |
| 00:18:44 | McCaskill, Claire | NO, I WANT TO WAIT IN QUESTIONING. |
| 00:18:50 | Kerry, John F. | SENATOR CARDIN THANKS VERY MUCH FOR BEING HERE. WE LOOK FORWARD TO YOUR TESTIMONY. |
| 00:18:59 | Cardin, Benjamin L. | WELL, CHAIRMAN KERRY, THANK YOU VERY MUCH. |
| 00:19:02 | Kerry, John F. | IS THAT WORKING? |
| 00:19:04 | Cardin, Benjamin L. | THE LIGHT IS ON. |
| 00:19:05 | Kerry, John F. | THERE YOU GO. PULL THAT CLOSER. |
| 00:19:09 | Cardin, Benjamin L. | THANK YOU VERY MUCH FOR CONDUCTING THIS HEARING. I HAVE A STATEMENT I'LL MAKE AVAILABLE FOR THE RECORD. I SHARE YOUR CONCERN ABOUT THE FUTURE OF JOURNALISM. OUR NEWSPAPERS ARE OUR PRIME SOURCE OF JOURNALISM OF INVESTIGATIVE REPORTING OF NEWS SOURCES FOR RADIO, TV AND THE INTERNET. AND THEY'RE GOING OUT OF BUSINESS. THEY'RE CLOSING THEIR ON RATIONS. THEY'RE SLASHING THEIR STAFFS. YOU GAVE A LIST OF THOSE NEWSPAPERS THAT HAVE EITHER TERMINATED THEIR TRADITIONAL OPERATIONS OR ARE IN BANKRUPTCY. IF I COULD JUST ADD ONE MORE TO THAT LIST. THAT'S THE "BALTIMORE SUN" MY HOMETOWN PAPER IN BANKRUPTCY AND IS IN DANGER OF WHETHER IT CAN STAY IN BUSINESS OR NOT. IT'S CLEAR TO ME THAT OUR NEWSPAPERS ARE A CHECK ON NOT JUST LEL GOVERNMENT AND THE FEDERAL GOVERNMENT, BUT ON CORPORATIONS, ON BUSINESSES, ON COMMUNITY ACTIVITIES. IT'S A PRIME PART OF OUR DEMOCRATIC SYSTEM. AND YES, I DO THINK THAT GOOGLE AND YAHOO AND BLOGS ARE IMPORTANT. I DO. BUT WHEN IT COMES TO IN DEPTH REPORTING AND THE SOURCE FOR MUCH OF OUR NEWS THAT WE SEE ECHOED IN BLOGS AND ON THE INTERNET, WE RELY UPON THE NEWS BUREAUS OF OUR NEWSPAPERS. IT'S IMPORTANT TO HAVE TIMELY VIDEO, AS YOU POINT OUT, OF A PARTICULAR NEWS EVENT. AND ANALYTICAL JOURNALISM IS IMPORTANT, BUT INVESTIGATIVE JOURNALISM WHERE WE GET MOST OF OUR BREAKING NEWS COMES FROM OUR LOCAL NEWSPAPER BUREAUS. AND WE'RE IN DANGER OF LOSING THAT. NEWSPAPER REPORTERS FORGE RELATIONSHIPS WITH PEOPLE. THEY BUILD A NETWORK WHICH CREATING AVENUES TO INFORMATION. A 2003 STUDY FOUND A DIRECT RELATIONSHIP BETWEEN THE FREE CITY, LAGS OF THE DAILY NEWSPAPER PER PERSON AND CORRUPTION. THE LOWER THE CIRCULATION, THE HIGHER THE CORRUPTION. PRINCETON UNIVERSITY REPORTED ON THE CLOSER OF THE "CINCINNATI POST." THE LOCAL ELECTIONS WERE LESS COMPETITIVE. IF VOTER TURNOVER A BROAD CHOICE OF CANDIDATES ARE IMPORTANT TO DEMOCRACY, WE SIDE WITH THOSE WHO LAMENT NEWSPAPERS DECLINE. SIMPLY PUT, THE CURRENT MODEL DOESN'T WORK. ADVERTISING AS YOU POINTED OUT, MR. CHAIRMAN, IS NOT THE TYPE OF FINANCIAL SUPPORT THAT PAPERS TRADITIONALLY COULD RELY UPON. SUBSCRIPTIONS ARE SIGNIFICANTLY REDUCED BECAUSE PEOPLE ARE GETTING THEIR NEWS OFF OF THE INTERNET OR FROM THE RADIO OR TV. BY 2008, 59% OF OUR NEWSPAPERS HAD REDUCED THEIR STAFFS, 61% HAD LESS SPACE DEVOTED TO NEWS, AND OVER HALF OF OUR STATES DID NOT HAVE A NEWS COVERAGE OF WHAT WAS HAPPENING DIRECTLY IN CONGRESS. THEY HAD TO RELY UPON THIRD PARTY SOURCES. SO I INTRODUCED THE NEWSPAPER REVITALIZATION ACT. WE NEED TO EXPLORE DIFFERENT ECONOMIC MODELS. IT WAS FILED IN AN EFFORT TO CREATE AN INTERNATIONAL DEBATE AS TO HOW WE CAN PRESERVE OUR LOCAL NEWS OPERATIONS. MY LEGISLATION USES THE 501 C 3 MODEL, SIMILAR TO WHAT A CHURCH WOULD USE OR WHAT AN EDUCATIONAL INSTITUTION WOULD USE A PUBLIC BROADCASTING AND OTHER NONPROFITS. NOW THIS MAY BE AN ADVANTAGE FOR SOME PAPERS TO BE ABLE TO CONTINUE. WHY? BECAUSE IT GIVES AN AVENUE FOR LOCAL SUPPORTERS. WHETHER THEY BE INDIVIDUALS OR FOUNDATIONS OR EDUCATIONAL INSTITUTIONS TO BE ABLE TO COME TOGETHER AND PRESERVE THEIR LOCAL NEWSPAPER. LET ME SAY WHAT IT DOESN'T DO. WHAT IT DOES DO IS ALLOW COMMUNITIES TO COME TOGETHER TO SAVE A LOCAL NEWSPAPER. WHAT IT DOESN'T DO AND WHAT I DO NOT SUPPORT IS GOVERNMENT INTERFERENCE WITH THE FREE PRESS. I DO NOT WANT TO SEE US DO ANYTHING THAT COULD COMPROMISE THE NEWSPAPERS. I DON'T THINK THAT'S AN APPROPRIATE WAY FOR US TO MOVE FORWARD. THIS BILL -- MY RECOMMENDATION WOULD NOT DO THAT. MOST NEWSPAPERS AREN'T PAYING ANY FEDERAL TAXES. BY MAKING THEM A NONPROFIT, WE'RE NOT GIVING UP ANY GOVERNMENT REVENUES. THEY STILL COULD EDITORIALIZE AS I THINK THEY SHOULD. IT GIVES A CHOICE TO A COMMUNITY TO PRESERVE THEIR LOCAL PAPER. THOMASASJEFFERSON, A A MAN WHO WAS LIFIED BY NEWSPARSRS DAI ONCE SAID IF I HAD A CHOIC BETWNN GOVERNMENT WITHOUT NEWSPAPERS OR NEWT NOOUPS WITHOUT GOVERNMENT, I WOULDN'T HESITATE TO CHOOSE THE LATTER. WE NEED TO SAVE OUR CMUMUNITY NEWSPAPERS AND THE INVESTIGATIVE JOURNALISM THAT THEY PROVIDE AND I BELIEVE THIS HERE HEARING IS AN IMPORTANT STEP FORWARD. |
| 00:24:37 | Kerry, John F. | THANK YOU VERY MUCH. |
| 00:24:39 | Kerry, John F. | THANK YOU FOR A CLEAR, CON FIES AND BRIEF SUMMARY. IT'S THOUGHTFUL PROVOCATIVE CONCEPT AND ONE WE'LL THINK ABOUT AND TALK ABOUT AND ENGAGE WITH OUR PANEL ON. |
| 00:25:00 | Kerry, John F. | IF I COULD INVITE MEMBERS OF THE SECOND PANEL COME UP. WE HAVE MS. MARISSA MAYER, VICE PRESIDENT OF GOOGLE MR. DAVID SIMON, AUTHOR, TELEVISION PRODUCER AND FORMER NEWSPAPER MAN FROM BALTIMORE, MARYLAND. MR. ALBERTO IBARGUEN, THE PRESIDENT OF THE KNIGHT FOUNDATION FROM FLORIDA. MR. JAMES MORONEY, AND MS. ARIANNA HUFFINGTON, THE CO-FOUNDER AND EDITOR IN CHIEF OF THE HUFFINGTON POST IN CALIFORNIA. WE'RE REALLY DELIGHTED TO SEE YOU HERE. MS. MAYER COULD I ASK YOU TO LEAD OFF AND WE'LL RUN DOWN THE LINE? AND IF YOU WANT TO TURN ON THE MIKE ON AND TURN IT UP CLOSE TO YOU SO EVERYBODY CAN HEAR, THAT WOULD BE HELPFUL. |
| 00:26:06 | Mayer, Marissa | THANK YOU FOR INVITING ME TO CONTRIBUTE TO THIS DISCUSSION. |
| 00:26:10 | Kerry, John F. | PULL THE MIKE A LITTLE CLOSER IF YOU CAN. |
| 00:26:17 | Mayer, Marissa | AS CO-CHAIRMAN OF THE KNIGHT COMMISSION OF COMMUNITIES IN THE DEMOCRACY, I WOULD LIKE TO SPEAK TO THE INTERSECTION OF THE DEMOCRACY AND TECHNOLOGY. IN MY TESTIMONY TODAY, I WOULD LIKE TO COVER THREE MAIN POINTS. FIRST, HOW WEB SEARCH ACTS AS A CONDUIT JOURNALISM BY CONNECTING INDIVIDUALS TO THE NEWS STORY THEY ARE SEEKING. SECOND, HOW GOOGLE CREATES ECONOMIC OPPORTUNITY FOR PUBLISHERS AND PROVIDES TOOLS TO CREATE MORE ENGAGING ONLINE EXPERIENCES AND FINALLY, I'LL TALK ABOUT THE VERY STRUCTURE OF THE WEB AND HOW IT REPRESENTS THE CHALLENGES AND OPPORTUNITIES FOR THE FUTURE OF JOURNALISM. LET'S LOOK AT SEARCH AS A CONDUIT TO JOURNALISM. EVERY DAY, MILLIONS OF PEOPLE SEARCH THE WEB FOR RELEVANT ANSWERS TO THEIR QUESTIONS. THEY CAN COME IN A VARIETY OF FORM, AN IMAGE, A VIDEO OR NEWS STORY. SEARCH ENGINES LIKE GOOGLE PLAY THE ROLE OF CONNECTING USERS WITH HIGH QUALITY CONTENT ULTIMATELY SENDING TRAFFIC TO THE PUBLISHER'S WEBSITE. TOGETHER, GOOGLE NEWS AND GOOGLE SEARCH PROVIDE AN ANNUAL FREE SERVICE TO ONLINE NEWSPAPERS BY SENDING INTERESTED READERS TO THEIR SITE AT A RATE OF $1 BILLION CLICKS PER MONTH. THEY USE IT TO GENERATE ADDITIONAL REVENUE. THE POLICY IS TO RESPECT THE RIGHT OF OWNERS. THEY HAVE THE RIGHT TO CONTROL WHETHER OR NOT THEIR CONTENT APPEARS IN GOOGLE WEB SEARCH OR NEWS. BECAUSE OUR COMMISSION IS TO ORGANIZE THE WORLD'S INFORMATION AND MAKE IT UNIVERSALLY ACCESSIBLE AND USEFUL, HIGH QUALITY CONTENT IS INCREDIBLE IMPORTANT TO KOOG GOOGLE AND OUR USERS. THE PLATFORM HELPS GENERATE REVENUE FROM THEIR CONTENT. GOOGLE CREATES BILLIONS OF DOLLARS IN REVENUE FOR PUBLISHERS. THAT FIG KBRUR EXCEEDED $5 BILLION IN REVENUE FOR PUBLISHER PUBLISHERS USING AD CENTS. GOOGLE ALSO OFFERS MANY TOOLS FOR SHARING INFORMATION THAT ARE BEING USED BY NEWSPAPERS. THE "LOS ANGELES TIMES" WEBSITE FOLLOWED THE PATH OF THE SOUTHERN CALIFORNIA WILDFIRES THROUGH GOOGLE MAPS. OUR WEB TECHNOLOGIES ARE POWERFUL INFORMATION TOOLS AND WE HOPE TO CONTINUE TO EMPOWER CONTENT CREATION THROUGH THEM. FINALLY, I WOULD LIKE TO OFFER OBSERVATIONS ON HOW THE PRESENTATION SHOULD BE FUNDAMENTALLY DIFFERENT THANES IN PRINT. LET'S START WITH THE BASIC LOOK AT CONSUMPTION, THE AT TOM. THE AT TOM IS OFTEN DISRUPTED BY EMERGING MEDIA. FOR EXAMPLE, DIGITAL MUSIC CAUSED PEOPLE TO THINK ABOUT THEIR PURCHASES AS SYRINGE SONGS RATHER THAN FULL ALBUMS. THE AT TOM OF CONSUMPTION MIGRATED FROM THE FULL NEWSPAPER TO THE INDIVIDUAL ARTICLE. WITH ONLINE NEWS, A READER IS MUCH MORE LIKELY TO ARRIVE AT A SPECIFIC ARTICLE RATHER THAN, SAY, THE HOME PAGE. THAT MEANS THE PUBLISHER MUST ASSUME THAT A READER MAY BE VIEWING AN ARTICLE ON ITS OWN, INDEPENDENT OF THE REST OF THE PUBLICATION. TO MAKE A STAND ALONE ARTICLE EFFECTIVE REQUIRES PROVIDING SUFFICIENT CONTEXT FOR FIRST-TIME READERS WHILE CLEARLY CALLING OUT THE LATEST INFORMATION FOR THOSE FOLLOWING THE STORY OVER A PERIOD OF TILE. THESE TYPES OF CHANGES WILL REQUIRE INVASION AND EXPERIMENT EXPERIMENTATION IN HOW NEWS IS DELIVERED ONLINE AND HOW ADVERTISING CAN SUPPORT IT. IT ALLOWS JOURNALIST TO PUBLISH AND UPDATE STORIES AS THEY HAPPEN. CREATE LIVING STORIES. THE PARALLEL WEB PAGES COMPETE AGAINST EACH OTHER IN TERMS OF AUTHORITY AND PLACEMENT IN SEARCH RESULTS. IF THE STORY WERE PUSHED AS A SINGLE, CHANGING LIVING UPDATE ENTITY. THE RESULT IS A SINGLE AUTHORITATIVE PAGE WITH A CONSISTENT REFERENCE POINT THAT GAINS CLOUT AND FOLLOWERS USERS OVER TIME. CHAIRMAN KERRY AND MEMBERS OF THE COMMITTEE, LET ME CONCLUDE BY THANKING YOU FOR HAVING ME HERE TO PARTICIPATE IN THIS TODAY. GOOG SL DOING OUR PART BY DRIVING SIGNIFICANT TRAFFIC BY HELPING THEM GENERATE REVENUE THROUGH ADVERTISING AND BY PROVIDING TOOLS AND PLATFORMS ENABLING THEM TO REACH MILLIONS OF PEOPLE. THERE CERTAINLY ARE MANY CHANGS IN ADAPTING THE LONG TRADITION OF JOURNALISM TO THE ONLINE WORLD. I'M HOPEFUL THAT INVASION AND EXPERIMENTATION WILL PRESERVE JOURNALISM. THANK YOU. |
| 00:31:35 | Kerry, John F. | THANK YOU VERY MUCH, MS. MAYER. I MISTAKENLY GAVE THE ORDER EARLIER. WE WOULD LIKE TO BEGIN WITH ONLINE AND END WITH ONLINE. I WOULD LIKE TO GO TO MR. COL WILL, MR. SIMON. MR. COLL, YOU'RE NEXT. |
| 00:32:00 | >> | THANK YOU FOR THE OPPORTUNITY TO TESTIFY. I WILL PREPARE A WRITTEN STACHLT WHICH I WILL -- STATEMENT THIS I SUBMITTED FOR THE RECORD. I'LL TRY TO SUMMARIZE THAT HERE AND OFFER A FEW POLICY SUGGESTIONS. AMERICAN JOURNALISM HAS ENTERED A PHASE OF WHAT THE ECONOMIST JOSEPH SCHUMPETER CALL CREATIVE DESTRUCTION DESTRUCTION. BOTH CREATIVE AND DESTRUCTIVE FORCES ARE AT WORK ON AMERICAN JOURNALISM SIMULTANEOUSLY AND AT A STUNNING PACE. ON THE CREATIVE SIDE THERE'S MUCH TO CELEBRATE. THE WORLDWIDE WEB HAS COLLAPSED THE BARRIERS TO ENTRY AND BY DOING SO OPENED AMERICAN PUBLIC DISCOURSE TO COUNTLESS NEW VOICES. IN JOURNALISM SINCE THE LATE 1990s, WE WITNESSED THE ADVENT OF ENTREPRENEURIAL JOURNALISTS ACROSS THE UNITED STATES, SOME WORKING IN FOR-PROFIT SETTINGS AND OTHERS IN NON-PROFIT SETTINGS. NO DOUBT THESE AND OTHER NEW IT RATIONS OF JOURNALISMS AND ITS CONSUMPTION USHERED IN BY THE DIGITAL REVOLUTION WILL CONTINUE TO EXPAND AND MAKE MANY IMPORTANT CONTRIBUTIONS TO OUR PUBLIC CULTURE AND CONSTITUTIONALAL SYSTEM. UNFORTUNATELY AT PRESENT, THE RATE OF DESTRUCTION OF PROFESSION JOURNALISM WITH THE INDEPENDENT REPORTING PRODUCED MAINLY BY NEWSPAPERS DURING THE LAST FOUR DECADES IS FAR OUTPACING THE ABILITY OF NEW INSTITUTIONS TO REPRODUCE WHAT IS BEING LOST. THIS INDEPENDENT REPORTING, COMPLEX VEST INVESTIGATIONS USING PUBLIC RECORDS, THE IDENTIFICATION AND VETTING OF WHISTLEBLOWERS, THE TRACKING OF LEGISLATIVE DEBATES AND LOBBYING AT THE LOCAL, STATE AND NATIONAL LEVEL. AND INDEPENDENT TRANSPARENT WITNESS REPORTS OF IMPORTANT EVENTS HERE AND OVERSEAS HAS PLAYED A VERY IMPORTANT ROLE IN FOREIGN POLICY SINCE THE 1960s AT LEAST ITS SUDDEN DIMINISHMENT SEEMS AN UR GENT MATTER OF THE PUBLIC INTEREST. IN TIME, PERHAPS INSTITUTIONS AND PRACTICES WILL MAKE UP CURRENT LOSSES OF INDEPENDENT REPORTING. BUT EVEN THE MOST OPTIMISTIC PRACTITIONERS SEEM TO ACCEPT A WORLD IN WHICH WEB-BASED PUBLISHERS ARING A GATORS COULD AFFORD TO SIMULTANEOUSLY FUND AND OPERATE PROFESSIONAL JOURNALISM BUREAUS IN BAG DPAD, KABUL, ISLAMABAD, EUROPE AND ASIA IS NOT FORESEEABLE AT PRESENT. THESE NEW PRACTITIONERS DO HOPE TO FILL SOME OF THE GAP AT THE LOCAL AND STATE LEVELS BUT EVEN THERE IT IS CLEAR THEIR REPLACEMENT REPORTING AS IT WERE WILL BE AT BEST A SMALL FRACTION OF WHAT IS NOW BEING DESTROYED FOR THE FORESEEABLE FUTURE. SO WHERE DO SOLUTIONS LIE IT? 'S UNCOMFORTABLE AND EVEN COUNTERINTUITIVE FOR A JOURNALIST TO SUGGEST THAT CONGRESS MIGHT CONSIDER A CRISIS IN JOURNALISM AS A VENUE FOR LEGISLATIVE ACTION. INDEPENDENCE OF JOURNALISM FROM THE GOVERNMENT IS A STRENGTH FOR OUR SYSTEM. BUT NECHLSVERTHELESS, AS YOU SAID IN LIMITED AND APPROPRIATE WAYS, CONGRESS ALREADY SHAPES THE ENVIRONMENT IN WHICH AMERICAN JOURNALISM IS PRACTICED. FOR EXAMPLE, IN THE AUTHORIZING THE LICENSES OF SCARCE BROADCASTING SPECTRUM, CONGRESS HAS CORRECTLY INSISTED THE PUBLIC INTEREST BE CONSIDERED IN THIS PROCESS. ALSO FOR FOUR DECADES YEAR IN AND YEAR OUT, THROUGH THE NATIONAL ENDOWMENT FOR THE HUMANITIES, CONGRESS HAS OVERSEEN ARMS LENGTH SYSTEMS OF FEDERAL FUNDING THAT TOUCH UPON JOURNALISTIC INSTITUTIONS AND ACTIVITY, ALBEIT WITH MIXED RESULTS. IN THE TAX CODES GOVERNING CHARITABLE ACTIVITY, CONGRESS HAS APPROPRIATELY DESIGNATED AS CHARITABLE, THE ACTIVITIES OF SOME NONPROFIT JOURNALISTIC INSTITUTIONS ALTHOUGH THEY HAVE DONE SO WITHOUT AN ADEQUATE DEGREE OF CHARITY. I THINK SENATOR CARDIN'S BILL IS AN ATTEMPT TO CLARIFY THOSE RULES.. AS AN OLD ORDER ORDER IS DYING IN JOURNALISM A NEW ONE IS RISING. ARE THERE WAYING TO CREATE A STRONGER BRIDGE BETWEEN THESE ERAS. WHAT ARE SOME SPECIFIC SUGGESTIONS? I WOULD OFFER THESE REALLY AS JUST A FRAME WORK. I HAVEN'T THOUGHT ABOUT ALL OF THE POSSIBLE IDEAS THAT MIGHT BE RESPONSIVE IN THIS WAY, BUT BUT I THINK I CAN OFFER A FEW TO COMPLEMENT SENATOR CARDIN'S LEGISLATION. FIRST, I DO BELIEVE IN HIS LEGISLATION CLARIFYING SECTION 501 C-3 OF THE INTERNAL REVENUE CODE CAN SO AS TO EASE THE POTENTIAL CONVERSION FOR FOR-PROFIT NEWSPAPERS TO CHARITABLE STATUS IS A VERY CONSTRUCTIVE STEP. IT'S NOT A PANACEA BUT IF EVEN A HANDFUL OF NEWSPAPERS FIND THE VISION AND COMMUNITY SUPPORT OF THE KIND OF SENATOR CARDIN DESCRIBED TO ADAPT THEIR NEWSROOMS IN THIS MANNER, THEIR SURVIVAL AND MORE GRADUAL EVOLUTION INTO THE NEW MEDIA WORLD COULD PRESERVE IMPORTANT INDEPENDENT REPORTING. ESPECIALLY AT THE LOCAL LEVEL. I THINK THERE'S ROOM TO REFORM AND STRENGTHEN THE CORPORATION FOR PUBLIC BROADCASTING SO THAT ITS INVESTMENTS IN PUBLIC BROADCASTING STATIONS MORE FULLY AND SUCCESSFULLY ADDRESS THE LOSSES IN INDEPENDENT REPORTING ON PUBLIC INSTITUTIONS AND EVEN INTERNATIONAL AFFAIRS EXPERIENCED BY FOR-PROFIT NEWSPAPERS AND BROADCASTERS, PARTICULARLY BY PROMOTING INVESTMENTS IN REPORTING DISTRIBUTED THROUGH NEW MEDIA. THE THIRD IDEA IS TO REFORM AND STRENGTHEN THE NATIONAL ENDOWMENT OF THE HUMANITIES SO THAT ITS ARMS LENGTH COMPETITIVE PEER REVIEWED GRANT MAKING HELPS TO INCUBATE THE CAREERS, SKILLS AND NEW MEDIA FORUMS NECESSARY TO FILL THE REPORTING GAPS LEFT BY RETREATING OLD MEDIA. THE NEWS CHALLENGE GRANT IS AN EXAMPLE OF WHAT I CONSIDER A SUCCESSFUL PROGRAM OF THIS KIND THAT ARE REFORMED AND EXPANDED NEH MIGHT TRY TO SUPPORT OR REPLICATE. FINALLY, I WOULD SUGGEST CONSIDERING INSTRUCTING THE FEDERAL COMMUNICATIONS COMMISSION TO STRENGTHEN THE PUBLIC SERVICE REQUIREMENT FOR BROADCASTERS OPERATING WITH LICENSE SPECTRUM, PERHAPS ALLOWING THIS REQUIREMENT TO BE SATISFIED BY CONTRIBUTIONS TO A FUND THAT WOULD BE USED TO FINANCE REPORTING ON PUBLIC INSTITUTIONS AND PUBLIC ISSUES, PERHAPS THROUGH THE CPD OR OTHER MEANS. IN CONCLUSION, OBVIOUSLY THE FEDERAL GOVERNMENT CANNOT AND SHOULD NOT TRY TO SOLVE THE CRISIS IN NEWSPAPERS OR THE TRANSITION IN JOURNALISM THAT I'VE TRIED TO SUMMARIZE. BUT ULTIMATELY, THE NEXT ERA OF JOURNALISM LIKE THE LAST ONE WILL BE SHAPED FIRST AND FOREMOST BY PRIVATE INVESTMENT. SECONDLY, BY FEDERAL POLICY. NONETHELESS, THE PUBLIC INTEREST THAT IS LOCATED IN THE CURRENT CRISIS SHOULD MOVE CONGRESS TO CREATIVELY RECONSIDER THE ROLE THAT IT ALREADY PLAYS. I THINK THIS CAN MAKE A SIGNIFICANT DIFFERENCE. THANK YOU. |
| 00:38:18 | Kerry, John F. | THANK YOU VERY MUCH, MR. COLL. THAT'S VERY HELPFUL. MR. SUTTON? |
| 00:38:22 | >> | THANK YOU, SENATOR. I WOULD ALSO LIKE TO SAY I'M PROUD TO BE FOLLOWING MR. COLL, WHOSE WORK WITH THE POST AND "NEW YORKER" AND IN HIS BOOKS REPRESENTS THE HIGHEST STANDARDS OF CRAFT. ENDORSE THE LAST SEVEN MINUTES OF TESTIMONY. MY NAME IS DAVID SIMON. I USED TO BE A NEWSPAPER MAN IN BALTIMORE. WHAT I SAY WILL LIKELY CONFLICT WITH WHAT REPRESENTATIVES OF THE NEWSPAPER INDUSTRY WILL CLAIM AND I CAN IMAGINE LITTLE AGREEMENT WITH THOSE WHO SPEAK FOR NEW MEDIA. FROM THE CAPTAINS OF THE NEWSPAPER INDUSTRY, YOU MAY HEAR A CERTAIN MARTYROLOGY, A CLAIM THEY WERE SERVING DEMOCRACY ONLY TO BE UNDONE BY A CATACLYSMIC SHIFT IN TECHNOLOGY. FROM THOSE SPEAKING ON BEHALF OF NEW MEDIA, WEB LOGS AND THAT WHICH GOES TWITTER, YOU WILL BE TREATED TO ASSURANCES THAT AMERICAN JOURNALISM HAS A FINE FUTURE ONLINE. WELL, A PLAGUE ON BOTH THEIR HOUSES. HIGH END JOURNALISM IS DYING IN AMERICA AND UNLESS A NEW ECONOMIC MODEL IS ACHIEVED, IT WILL NOT BE REBORN ON THE WEB OR ANYWHERE ELSE. THE INTERNET IS A MARVELOUS TOOL AND CLEARLY, IT IS THE INFORMATION DELIVERY SYSTEM OF OUR FUTURE, BUT THUS FAR, IT DOES NOT DELIVER MUCH FIRST GENERATION REPORTING. INSTEAD, IT LEECHES THAT REPORTING FROM MAINSTREAM NEWS PUBLICATIONS, WHERE UPON GAGTING WEBSITES AND BLOGGERS CONTRIBUTE LITTLE MORE THAN REPETITION, COMMENTARY AND FROTH. READERS ACQUIRE NEWS FROM AGGREGATORS AND ABANDON ITS POINT OF ORIGIN, NAMELY THE NEWSPAPERS THEMSELVES. THE PARASITE IS SLOWLY KILLING THE HOST. IT'S NICE TO GET STUFF FOR FREE, OF COURSE, AND IT'S NICE THAT MORE PEOPLE CAN HAVE THEIR SAY IN NEW MEDIA. WHILE SOME OF OUR INTERNET COMMUNITY IS IDEALOGICAL, INACCURATE AND OCCASIONALLY JUVENILE, SOME OF IT IS ALSO QUITE GOOD. EVEN ORIGINAL. UNDERSTAND I'M NOT MAKING AN ARGUMENT AGAINST THE INTERNET AND ALL THAT IT OFFERS. BUT YOU DO NOT IN MY CITY RUN INTO BLOGGERS OR SO-CALLED CITIZEN JOURNALISTS AT CITY HALL OR IN THE COURTHOUSE HALLWAYS OR AT THE BARS WHERE POLICE OFFICERS GATHER. YOU DON'T SEE THEM CONSISTENTLY NURTURING AND THEN PRESSING SOURCES. YOU DON'T SEE THEM HOLDING INSTITUTIONS ACCOUNTABLE ON A DAILY BASIS. WHY? BECAUSE HIGH END JOURNALISM IS A PROFESSION. IT REQUIRES DAILY FULL-TIME COMMITMENT BY TRAINED MEN AND WOMEN WHO RETURN TO THE SAME BEATS DAY IN AND DAY OUT, REPORTING WAS THE HARDEST AND IN SOME WAYS MOST GRATIFYING JOB I EVER HAD. I'M OFFENDED TO THINK ANYONE, ANYWHERE BELIEVES AMERICAN MON OH LITS AS INSULATED, SELF-PRESERVING AND SELF- SELF-JUSTIFYING AS SCHOOL DISTRICTS AND CHIEF EXECUTIVES CAN BE HELD TO TASK BY AMATEURS PURSUING THE TASK WITHOUT COMPENSATION, TRAINING OR FOR THAT MATTER, SUFFICIENT STANDING TO MAKE PUBLIC OFFICIALS EVEN CARE WHO IT IS THEY'RE LYING TO OR WHO THEY ARE WITHHOLDING INFORMATION FROM. INDEED, THE VERY PHRASE CITIZEN JOURNALIST STRIKES MY EARS ORWELLIAN. A NEIGHBOR WHO CARES AND LISTENS TO PEOPLE IS A GOOD NEIGHBOR. HE IS NOT A CITIZEN SOCIAL WORKER. JUST AS A NEIGHBOR WITH A GARDEN HOSE AND GOOD INTENTIONS IS NOT A CITIZEN FIREFIGHTER. TO SAY SO IS A HEEDLESS INSULT TO TRAINED SOCIAL WORKERS AND FIREFIGHTERS. WELL, SO MUCH FOR NEW MEDIA. BUT WHAT ABOUT OLD MEDIA? WELL, ANYONE LISTENING CAREFULLY MAY HAVE NOTED THAT -- I'M SORRY. CUT THAT PART. ANYONE LISTENING CAREFULLY MAY HAVE NOTED I WAS BROUGHT OUT OF MY REPORTING POSITION IN 1995. THAT'S WELL BEFORE THE INTERNET BEGAN TO THREATEN THE INDUSTRY, BEFORE CRAIGS LIST AND DEPARTMENT STORE CONSOLIDATION GUTTED THE AD BASE, BEFORE ANY OF THE CURRENT ECONOMIC CONDITIONS APPLIED. IN FACT, WHEN NEWSPAPER CHAINS BEGAN CUTTING PERSONNEL AND CONTENT, THE INDUSTRY WAS ONE OF THE MOST PROFITABLE YET DISCOVERED BY WALL STREET. WE KNOW NOW BECAUSE BANKRUPTCY HAS OPENED THE BOOKS THAT THE BALTIMORE SUN WAS ELIMINATING ITS AFTERNOON EDITION AND TRIMMING NEARLY 100 REPORTERS AND EDITORS IN AN ERA WHEN THE PAPER WAS ACHIEVING 37% PROFITS. SUCH SHORT-SIGHTED ARROGANCE RIVALS THAT OF DETROIT IN THE 1970s WHEN AUTOMAKERS OFFERED VEGAS AND PACERS AND GREMLINS WITHOUT THE SLIGHTEST WORRY OF BEING CHALLENGED BY BETTER MADE CARS BY GERMANY OR JAPAN. MY INDUSTRY BUTCHERED ITSELF AND WE DID SO AT THE BEHEST OF WALL STREET AND THE FREE MARKET LOGIC THAT HAS PROVEN DISASTROUS FOR SO MANY INDUSTRIES. THE ORIGINAL SIN OF AMERICAN NEWSPAPERING LIES IN GOING TO WALL STREET IN THE FIRST PLACE. WHEN LOCALLY BASED FAMILY OWNED NEWSPAPERS WERE CONSOLIDATED, AN ESSENTIAL DYNAMIC, AN ESSENTIAL TRUST, WAS BETRAYED. ECONOMICALLY, THE DISCONNECT IS NOW OBVIOUS. WHAT THE NEWSPAPER EXECUTIVES IN LOS ANGELES OR CHICAGO CARE WHETHER READERS IN BALTIMORE HAVE A BETTER NEWSPAPER, ESPECIALLY WHEN YOU CAN MAKE MORE MONEY PUTTING OUT A MEDIOCRE PAPER THAN A WORTHY ONE. WHERE FAMILY OWNERSHIP MIGHT HAVE BEEN CONTENT WITH 10% OR 15% PROFIT, THE CHAINS DEMANDED DOUBLE THAT AND MORE AND THE CUTTING BEGAN, LONG BEFORE THE THREAT OF NEW TECHNOLOGY WAS EVER SENSED. AT A TIME THIS BROUGHT AN UGLY DISCONNECT INTO THE NEWSROOM AND INTO THE COMMUNITY. A FEW YEARS LATER, THE SUN SOLD AND FRESH EDITORS ARRIVED FROM OUT OF TOWN TO TAKE OVER THE REINS OF THE PAPER. THEY LOOKED UPON BALTIMORE NOT AS ESSENTIAL TRADE TO BE COVERED WITH CONSISTENCY, TO BE EXPLAINED IN ALL ITS COMPLEXITY YEAR IN AND YEAR OUT FOR READERS WHO HAD AND WOULD LIVE THEIR WHOLE LIVES IN BALTIMORE. WHY WOULD THEY. THEY HAD ARRIVED FROM SOMEWHERE ELSE AND IF THEY WON A PRIZE OR TWO, THEY WOULD BE MOVING ON TO BIGGER AND BETTER OPPORTUNITIES WITHIN THE CHAIN. SO WELL BEFORE THE ARRIVAL OF THE INTERNET, VETERAN REPORTERS AND HOME-GROWN EDITORS TOOK BUYOUTS, NEWS BEATS WERE DROPPED AND LESS AND LESS WAS COVERED WITH RIGOR OR COMPLEXITY. IN A CITY IN WHICH HALF THE ADULT BLACK MALES ARE WITHOUT CONSISTENT WORK, THE POVERTY AND SOCIAL SERVICES BEAT WAS ABANDONED. IN RIEJA REGION WHERE UNIONS ARE IMPLODING AND THE BANKRUPTCY OF A STEEL MANUFACTURER MEANT THOUSANDS LOST MEDICAL BENEFITS AND PENSIONS, THERE WAS NO LABOR REPORTER. THOUGH IT'S ONE OF THE MOST VIOLENT CITIES IN AMERICA, THE BALTIMORE CREDIT COURTS WENT UNCOVERED FOR MORE THAN A YEAR. MEANWHILE, THE OUT OF TOWN EDITORS USED MAN POWER TO PURSUE A HANDFUL OF PRIZE PROJECTS. THE SELF GRATIFICATION OF MY PROFESSION DOES NOT COME FROM COVERING A CITY AND COVERING IT WELL. FROM EXPLAINING AN INCREASINGLY COMPLEX INTERCONNECTED WORLD TO CITIZENS, FROM HOLDING BASIC INSTITUTIONS ACCOUNTABLE. IT COMES FROM SOMEONE HANDING YOU A PLAQUE AND TAKING YOUR PICTURE. SO BUYOUT AFTER BUYOUT FROM THE FIRST STAFF REDUCTION IN 1992 TO THE LATEST ROUND LAST WEEK, IN WHICH NEARLY A THIRD OF THE REMAINING NEWS ROOM WAS FIRE, A NEWSPAPER THAT MIGHT HAVE CARED ENOUGH TO CHARGE FOR CONTENT, WENT MISSING. I DON'T KNOW IF IT'S NOT TOO LATE ALREADY FOR AMERICAN NEWSPAPERING. IF THERE IS TO BE A RENEWAL OF THE INDUSTRY, A FEW THINGS ARE CERTAIN AND OBVIOUS. FIRST, THE INDUSTRY WILL HAVE TO FIND A WAY TO CHARGE FOR ONLINE CONTENT. I HAVE HEARD THE POST-MODERN RALLYING CRY THAT INFORMATION WANTS TO BE FREE BUT INFORMATION ISN'T. IT COSTS MONEY TO SEND REPORTERS TO LONDON, TO FALLUJAH, TO CAPITOL HILL AND TO SEND PHOTOGRAPHERS WITH THEM, TO KEEP THEM THERE DAY AFTER DAY. IT COSTS MONEY TO HIRE THE BEST INVESTIGATORS AND WRITERS AND BACK THEM UP WITH THE BEST EDITORS AND HOW ANYONE CAN BELIEVE THE INDUSTRY CAN FUND THIS KIND OF EXPENSE BY GIVING ITS PRODUCT AWAY ONLINE TO AGGREGATORS AND BLOGGERS IS A SOURCE OF ENDLESS FASCINATION TO ME. A FRESHMAN MARKETING MAJOR IN ANY COMMUNITY COLLEGE CAN TELL YOU THAT IF YOU DON'T HAVE A PRODUCT FOR WHICH YOU CAN CHARGE PEOPLE, YOU DON'T ACTUALLY HAVE A PRODUCT. SECOND, WALL STREET AND FREE MARKET LOGIC HAVING BEEN A DESTRUCTIVE FORCE IN JOURNALISM OVER THE LAST FEW DECADES IS NOW NOT SUDDENLY THE ANSWER. WE ARE RAW CAPITALISM IS NEVER THE ANSWER WHEN A PUBLIC TRUST OR MISSION IS AT ISSUE. SIMILARLY, THERE CAN BE NO SERIOUS CONSIDERATION OF PUBLIC FUNDING FOR NEWSPAPERS. HIGH END JOURNALISM CAN AND SHOULD BITE ANY HAND THAT TRIES TO FEET IT AND SHOULD BITE A GOVERNING HAND VICIOUSLY. IT'S THE RIGHT OF EVERY AMERICAN TO DESPISE HIS LOCAL NEWSPAPER FOR BEING TOO LIBERAL, TOO CONSERVATIVE, FOR COVERING ACTS AND NOT WHY, FOR SPELLING YOUR NAME WRONG WHEN YOU DO SOMETHING NOTABLE AND FOR SPELLING IT CORRECTLY WHEN YOU DO SOMETHING DISHONORABLE. AS LOVE/HATE RELATIONSHIPS GO, IT'S AN INTRICATE ONE. AN EXCHANGE OF PUBLIC MONEY WOULD BE UNACCEPTABLE TO ALL. A NONPROFIT MODEL INTRIGUES. ESPECIALLY IF THAT MODEL ALLOWS FOR LOCALLY BASED OWNERSHIP AND CONTROL OF NEWS ORGANIZATIONS. ANYTHING THE GOVERNMENT CAN DO IN THE WAY OF CREATING NONPROFIT STATUS FOR NEWSPAPERS SHOULD BE SERIOUSLY PURSUED. FURTHER, ANYTHING THAT CAN BE DONE TO CREATE FINANCIAL OR TAX BASED INCENTIVES FOR BANKRUPT OR NEAR BANKRUPT NEWSPAPER CHAINS TO DONATE UNPROFITABLE PUBLICATIONS TO LOCALLY BASED NONPROFITS SHOULD ALSO BE CONSIDERED. LASTLY, I WOULD URGE CONGRESS TO CONSIDER RELAXING CERTAINLY ANTITRUST PROHIBITIONS SO THE "WASHINGTON POST," "NEW YORK TIMES" AND VARIOUS OTHER NEWSPAPERS CAN OPENLY DISCUSS PROTECTING COPYRIGHT FROM AGGREGATORS AND PLAN A TRANSITION TO A PAID ONLINE SUBSCRIBER BASE. WHENEVER MONEY COMES WILL PROVE ESSENTIAL TO HIRING BACK THE TALENT, COMMITMENT AND INSTITUTIONAL MEMORY THAT HAS BEEN SQUANDERED. ABSENT THIS BASIC AND BELATED ACKNOWLEDGMENT THAT CONTENT MATTERS, IN FACT, CONTENT IS ALL, I DON'T THINK ANYTHING CAN BE DONE TO SAVE HIGH END PROFESSIONAL JOURNALISM. THANKS FOR YOUR TIME AND YOUR KIND INVITATION. |
| 00:47:24 | Kerry, John F. | THANKS FOR YOUR TERRIFIC TESTIMONY. WE APPRECIATE IT VERY, VERY MUCH. |
| 00:47:30 | >> | THANK YOU, MR. CHAIRMAN AND MEMBERS OF THE COMMITTEE, FOR INVITING ME TO TESTIFY. FOR THE FIRST TIME IN THE HISTORY OF THE REPUBLIC, IT'S EASIER FOR A HIGH SCHOOL STUDENT TO LEARN ABOUT THE CRISIS IN DARFUR ONLINE THAN CORRUPTION IN LOCAL GOVERNMENT IN MANY LOCAL PAPERS, UNTIL RECENTLY, THE CIRCULATION AREA OF A NEWSPAPER OR THE REACH OF A WILL LOCAL TELEVISION OR RADIO SIGNAL ROUGHLY COINCIDED WITH THE PHYSICAL BOUNDARIES OF CITIES AND COUNTIES FROM WHICH WE ELECTED MAYORS, SCHOOL BOARDS AND MEMBERS OF CONGRESS. EVEN IF WE DIDN'T KNOW WHAT WAS HAPPENING HALFWAY AROUND THE WORLD, FOR US, ALL POLITICS WAS LOCAL AND SO WAS DAILY NEWS COVERAGE. AND IT WAS THE NEWS COVERAGE -- IT WAS NEWS COVERAGE THAT WAS SHARED GENERALLY CONNECTING BUYERS AND SELLERS, AS YOU POINTED OUT, SENATOR, BUT ALSO CITIZENS TO OTHER CITIZENS. OUR INFORMATION SYSTEMS HELPED DEFINE AMERICAN COMMUNITIES AND HELPED GIVE THEM INDIVIDUALITY AND CHARACTER. THOSE SYSTEMS HAVE CHANGED. THE NEW SYSTEMS ARE DIGITAL AND MOBILE AND NOT BOUND BY GEOGRAPHY. THE CITIZEN IS A USER OF INFORMATION MORE THAN A PASSIVE CONSUMER. I'M NOT HERE TO LAMENT THE PAST. THAT PAST WHICH EXCLUDED MANY AMERICANS, ESPECIALLY WOMEN AND MINORITIES, FROM THE MAIN PAGES OF NEWSPAPERS OR THE EVENING TELEVISION BROADCAST. ON THE CONTRARY, I WELCOME THE DEMOCRITIIZATION OF NEWSPAPERS. THE QUESTION IS NOT HOW TO SAVE THE TRADITIONAL NEWS INDUSTRY BUT HOW TO MEET THE INFORMATION NEEDS OF COMMUNITIES IN A DEMOCRACY SO THAT THE PEOPLE MIGHT, AS JACK KNIGHT USED TO PUT IT, DETERMINE THEIR OWN TRUE INTERESTS. THE STUNNING CLARITY OF THE FIRST AMENDMENT THAT CONGRESS SHALL MAKE NO LAW ABRIDGING THE BASIC FREEDOMS INCLUDING FREE SPEECH AND FREE PRESS, SHOULD INFORM EVERY ACTION YOU TAKE. NEVERTHELESS, THERE SEEM AT LEAST FOUR AREAS WHERE CONGRESSIONAL ACTION MIGHT PROPERLY AND SIGNIFICANTLY SUPPORT OUR NATIONAL TRANSITION TO DIGITAL. NUMBER ONE, I BELIEVE NOTHING CONGRESS CAN DO IS AS IMPORTANT AS PROVIDING UNIVERSAL, AFFORDABLE, DIGITAL ACCESS AND ADOPTION. IF THE FUTURE OF DEMOCRACY'S NEWS AND INFORMATION IS ONLINE, THEN WE MUST ASSURE THAT EVERYONE IS ONLINE AND BRINGING TECHNOLOGY TRAINING, DIGITAL LITERACY AND HIGHER QUALITY NETWORKS TO OUR LOCAL COMMUNITIES, THREE GREAT DIVIDES BLOCK THAT GOAL AND THEY'RE ECONOMIC, GENERATIONAL AND GEO GEOGRAPHIC. IN AN AGE WHERE ENTRY LEVEL JOBS AT McDONALD'S OR WALMART'S REQUIRES ONLINE APPLICATIONS, ACCESS MUST BE GENERAL AND AVAILABLE AND AFFORDABLE. RURAL AREAS ARE NOTORIOUSLY UNDERSERVED AND SHOULD BE THE FOCUS OF YOUR CONCERN TO PROVIDE EQUAL ACCESS TO THE WHOLE NATION, AND AGE IS THE THIRD GREAT DIVIDE, AND GROUPS LIKE AARP ARE ALREADY FOCUSING ON THIS ISSUE, AND MIGHT BE WILLING PARTNERS IN TRAINING AND OUTREACH. FEDERAL STIMULUS MONEY FOR UNIVERSAL DIGITAL ACCESS IS A SMART INITIAL INVESTMENT. SUPPORT SHOULD ALSO BE GIVEN TO MEDIA LITERACY PROGRAMS THAT ALREADY HAVE TRAINED THOUSANDS OF STUDENTS TO BE MORE SOPHISTICATED MEDIA USERS. NUMBER TWO, THIS IS A TIME FOR EXPERIMENTATION AND GOVERNMENT SHOULD SUPPORT THAT. THE EXAMPLES OF EXPERIMENTS THAT KNIGHT FOUNDATION HAS FUNDED AND THAT I CITED IN MY WRITTEN TESTIMONY WERE OFFERED AS ILLUSTRATIONS OF WHAT ONE ORGANIZATION, SMALL BY COMPARISON TO GOVERNMENT, CAN DO TO SUPPORT THE IMAGINATION OF PEOPLE WHO WILL EVENTUALLY FIGURE OUT WHAT WILL WORK THROUGH FUNDING OF UNIVERSITIES AND OTHER NOT-FOR-PROFIT GROUPS, I BELIEVE THERE'S A ROLE FOR GOVERNMENT IN SPURRING INNOVATION IN NEWS DELIVERY. NUMBER THREE, NEWSPAPERS AND BROADCASTS ARE NOT DEAD AND THERE MAY BE WAYS TO SUPPORT THEIR EXTENDED USEFULNESS. THERE ARE IMPLICATIONS IN THE DECLINE OF NEWSPAPERS, SEPARATE FROM THE DELIVERY OF INFORMATION, OF COURSE, IN MANY COMMUNITIES INCLUDING MY OWN HOMETOWN OF MIAMI. NEWSPAPERS MEAN GOOD JOBS, NOT JUST FOR THE WRITERS BUT FOR TRUCK DRIVERS, PRESS OPERATORS AND THE LARGE SALES FORCE. CONGRESS MIGHT SEEK TO ENCOURAGE THE CREATION OF NOT-FOR-PROFITS OR LCCs. LOCAL ORGANIZATIONS, I AGREE WITH MR. SIMON, WOULD PERHAPS ENCOURAGE THE CONVERSION OF FOR-PROFIT NEWS BUSINESSES INTO NOT-FOR-PROFIT COMMUNITY-BASED MISSION-DRIVEN ORGANIZATIONS. THESE MEASURES WILL UNFORTUNATELY NOT SOLVE THE REVENUE SHORTFALLS OF TRADITIONAL MEDIA, NOR TURN AROUND CURRENT ECONOMIC CONDITIONS, BUT BY RELIEVING PROFIT PRESSURES MIGHT HELP THEM EXTEND THEIR USEFUL LIFE UNTIL WE FIGURE OUT WHAT'S NEXT AND WHAT ONLINE MODEL CAN AFFORD PROFESSIONAL JOURNALISTS. NUMBER FOUR, I BELIEVE THERE'S A ROLE FOR PUBLIC MEDIA. PUBLIC MEDIA REACHES THE ENTIRE NATION. THAT HAS ENORMOUS EDUCATIONAL, NEWS AND SECURITY IMPLICATIONS. CONTEMPLATING NEW TECHNOLOGIES TO DISTRIBUTE INFORMATION, THE OBAMA TRANSITION TEAM DISCUSSED THE CONCEPT THEY CALLED PUBLIC MEDIA 2.0, AN APPROACH THAT WOULD MAKE PBS AND NPR MORE INCLUSIVE AND ENGAGING OF THEIR AUDIENCES. I BELIEVE THAT SHOULD BE ENCOURAGED. WE'RE LIVING A MOMENT OF EXTRAORDINARY CREATIVITY. WE WILL BE A NATION OF MEDIA USERS, NOT CONSUMERS. WE'RE GOING FROM THE INFORMATION MODEL OF ONE TO MANY, OF I BROADCAST, YOU LISTEN, TO MANY TO MANY, ALL AMADE POSSIBLE BY TECHNOLOGY. BEFORE GUTTENBERG, MONKS COPIED MANU SCRIPTS AND LONG BEFORE THAT, THERE WAS THE RENAISSANCE, WHEN SOCIETY HAD MORE OR LESS FIGURED OUT HOW TO HANDLE INFORMATION. BUT THOSE UNCERTAIN YEARS IN BETWEEN WHEN GUTTENBERG'S TECHNOLOGY BROKE THE OLD RULES AND ALLOWED SOMETHING NEW CALLED LITERACY ARE LIKE THE YEARS WE LIVE IN TODAY. CONGRESSIONAL ACTION TO DETERMINE WHAT NEWS AND INFORMATION GETS TO OUR CITIZENS IS CERTAINLY NOT YOUR INTENT AND I AGREE WITH YOU. BUT I HOPE THIS IS THE BEGINNING OF GREAT AND SERIOUS ACTION BY CONGRESS LEADING TO THE ENCOURAGEMENT OF EXPERIMENTATION, TO ENABLE MARKETS TO FIND THEIR WAY, TO PROMOTE THE EVOLUTION OF PUBLIC MEDIA 2.0, AND MOST URGENT OF ALL, TO PROVIDE AFFORDABLE, DIGITAL ACCESS TO EVERY AMERICAN. THANK YOU FOR THIS OPPORTUNITY. |
| 00:54:01 | Kerry, John F. | THANK YOU FOR THAT THOUGHTFUL STATEMENT, APPRECIATE IT. |
| 00:54:03 | >> | GOOD AFTERNOON. CHAIRMAN KERRY, I WANT TO THANK YOU FOR HOLDING THIS HEARING TODAY ON THE FUTURE OF JOURNALISM. I'M APPEARING TODAY IN MY ROLE AS PUBLISHER AND CEO OF THE DALLAS MORNING NEWS AND ALSO AS A MEMBER OF THE EXECUTIVE COMMITTEE OF THE NEWSPAPER ASSOCIATION OF AMERICA. IN COMMUNITIES OF ALL SIZES THROUGHOUT OUR COUNTRY, DAILY NEWSPAPERS PLAY AN INDISPENSABLE ROLE IN FORMING OUR CITIZENS ABOUT LOCAL ISSUES AND NEWSWORTHY EVENTS WHICH IS CRITICAL TO THE FUNCTIONING OF A VIBRANT DEMOCRACY. THE REASON NEWSPAPERS ARE SO ESSENTIAL TO A WELL-INFORMED PUBLIC IS SIMPLE. IN MOST MARKETS, NEWSPAPERS HAVE FAR AND AWAY THE MOST EXTENSIVE NEWS GATHERING RESOURCES OF ANY LOCAL MEDIA. AT THE DALLAS MORNING NEWS, FOR EXAMPLE, WE SPEND MORE THAN $30 MILLION PER YEAR IN OUR NEWS GATHERING OPERATION AND WE HAVE MORE REPORTERS ON THE STREET THAN THE ABC, NBC, CBS AND FOX AFFILIATES IN OUR MARKET COMBINED. IT HAS BEEN WELL DOCUMENTED THAT THE NEWSPAPER IS IN A VERY REAL CRISIS. IN THE PAST SEVERAL MONTHS ALONE, ONE MAJOR MARKET DAILY HAS FOLDED. ANOTHER IS SURVIVING ONLY AS A SCALED-DOWN ONLINE NEWS SERVICE AND A HANDFUL OF OTHERS HAVE CUT BACK THEIR PRINTING OPERATIONS. SINCE DECEMBER, FIVE MAJOR NEWS COMPANIES HAVE DECLARED BANKRUPTCY. VIRTUALLY ALL PUBLISHERS IN EVERY MARKET, LARGE AND SMALL, HAVE BEEN FORCED TO LAY OFF HIGHLY VALUED JOURNALISTS AND OTHER EMPLOYEES AND TAKE OTHER DRASTIC COST-SAVING MEASURES. UNFORTUNATELY, WE HAVE NOT BEEN IMMUNE TO THESE TRENDS AT THE DALLAS MORNING NEWS. THE PROBLEM IRONICALLY IS NOT REALLY A LOSS OF AUDIENCE. NEWSPAPER READERSHIP REMAINS VERY STRONG, IN FACT, MORE PEOPLE READ A NEWSPAPER THE MONDAY AFTER THIS YEAR'S SUPER BOWL THAN ACTUALLY WATCHED THE BIG GAME ON SUNDAY AND THAT DOESN'T INCLUDE ALL THE PEOPLE WHO GO ONLINE TO READ WHAT NEWSPAPERS PUBLISH. THE PROBLEM IS THAT BECAUSE OF THE INTENSE COMPETITION FOR ADVERTISING, PARTICULARLY FROM INTERNET-BASED COMPANIES, THE NEWSPAPER SHARE OF THE OVERALL ADVERTISING MARKET HAS DROPPED DRAMATICALLY. IF THE CURRENT DOWNWARD TREND CONTINUES AND WE HAVE SEEN IT THIS WAY FOR THE FIRST FOUR MONTHS OF THIS YEAR, NEWSPAPERS WILL HAVE EXPERIENCED AS MUCH AS A 50% DROP IN ADVERTISING REVENUES OVER A THREE-YEAR PERIOD, REVENUES THAT REPRESENT 80% OF NEWSPAPERS' TOTAL REVENUE. EVEN ONLINE ADVERTISING WHICH HAS OFTEN BEEN HAILED AS THE INDUSTRY'S MOST PROMISING FUTURE GROWTH ENGINE, DECLINED IN 2008 AND ACCOUNTED FOR LESS THAN 10% OF OVERALL NEWSPAPER REVENUES. THE END OF THE RECESSION AND THERE WILL BE ONE, WILL NOT NECESSARILY MEAN THAT THESE ADVERTISING REVENUES WILL RETURN TO NEWSPAPERS. NEWSPAPERS ARE IN THE MIDST OF A SECULARSHIP THAT IS POSING A SERIOUS LONG TERM THREAT TO THE REVENUES THAT MAKE IT POSSIBLE FOR THE PUBLIC SERVICE JOURNALISM THAT IS DONE BY NEWSPAPERS ACROSS THIS COUNTRY EACH AND EVERY DAY. SO WHAT CAN CONGRESS DO TO HELP NEWSPAPERS? HERE ARE THREE THINGS. FIRST, AS A MEANS OF PROVIDING NEWSPAPER PUBLISHERS WITH A CRITICAL AND IMMEDIATE INFUSION OF CAPITAL, CONGRESS SHOULD PASS THE BAUCUS-SNOWE BILL THAT WOULD EXTEND THE CARRY-BACK PERIOD FOR NET OPERATING LOSSES FROM TWO TO FIVE YEARS FOR ALL BUSINESSES, NOT JUST NEWSPAPERS. A SIMILAR PROVISION WAS INCLUDED IN THE ECONOMIC STIMULUS PACKAGE BUT UNFORTUNATELY, THIS RELIEF WAS LIMITED TO ONLY SMALL BUSINESSES. SECOND, CONGRESS SHOULD ACT QUICKLY ON LEGISLATION PROVIDING A LIMITED ANTITRUST EXEMPTION THAT WILL ALLOW NEWSPAPERS SOME BREATHING ROOM TO SHARE IDEAS AND JOINTLY EXPLORE INNOVATIVE BUSINESS MODELS. THIS RELIEF, WITH PROPER BUT EXPEDITED REVIEW AT THE JUSTICE DEPARTMENT, WOULD HELP NEWSPAPERS TRANSITION TO THE FUTURE. THIRD, CONGRESS SHOULD ENSURE THAT NEWSPAPER PUBLISHERS HAVE THE MEANS TO OBTAIN REASONABLE COMPENSATION FROM INTERNET COMPANIES THAT REPRODUCE THEIR CONTENT FOR THEIR OWN COMMERCIAL GAIN. SOME INTERNET OPERATORS ROUTINELY FREE RIDE ON THE INVESTMENTS THAT NEWSPAPERS ARE MAKING IN LOCAL JOURNALISM BY COPYING OR SUMMARIZING NEWSPAPER CONTENT IN ORDER TO DRIVE AUDIENCES TO THEIR WEBSITES AND THEN GAIN REVENUE THROUGH THE SELLING OF ADVERTISING. CONGRESS COULD CONSIDER THE ESTABLISHMENT OF A CONSENT FOR CONTENT PRINCIPLE THAT WOULD APPLY TO BREAKING NEWS. THIS PRINCIPLE BEARS AN INTERESTING SIMILARITY TO THE SYSTEM OF RETRANSMISSION CONSENT ADOPTED BY THIS COMMITTEE AND THE CONGRESS IN THE 1992 CABLE ACT. AGAIN, I WANT TO THANK YOU FOR THE OPPORTUNITY TO APPEAR AT THIS HEARING TODAY. I HOPE THAT THESE DISCUSSIONS WILL LEAD TO PRACTICAL ACTIONS THAT WILL HELP MAINTAIN THE TYPE OF JOURNALISM THAT OUR LOCAL COMMUNITIES DESERVE, EXPECT AND NEED. |
| 00:58:56 | Kerry, John F. | THANKS, MR. MORONEY. THANKS FOR REFERENCING THE RETRANSMISSION CONCEPT WHICH I THINK DOES HAVE SOME RELEVANCE IN THE CONVERSATION. SO WE'LL TALK ABOUT IT, PICK UP ON IT. MISS HUFFINGTON. |
| 00:59:08 | Huffington, Arianna S. | THANK YOU, CHAIRMAN KERRY AND MEMBERS OF THE COMMITTEE, FOR INVITING ME TO BE PART OF TODAY'S DISCUSSION ON THE FUTURE OF JUDICIALISM. LIKE ANY GOOD NEWS STORY, LET ME START WITH A HEAD LINE. JOURNALISM WILL NOT ONLY SURVIVE, IT WILL THRIVE. BUT THE DISCUSSION NEEDS TO MOVE FROM HOW DO WE SAVE NEWSPAPERS TO HOW DO WE SAVE AND STRENGTHEN JOURNALISM, HOWEVER IT IS DELIVERED. DESPITE ALL THE DIRE NEWS ABOUT THE STATE OF THE NEWSPAPER INDUSTRY, WE ARE ACTUALLY IN THE MIDDLE OF A GOLDEN AGE FOR NEWS CONSUMERS WHO CAN SURF THE NET, USE SEARCH ENGINES, ACCESS THE BEST STORIES FROM AROUND THE WORLD AND BE ABLE TO COMMENT, INTERACT AND FORM COMMUNITIES. JOURNALISM PLAYS AN IN DISPENSABLE ROLE IN OUR DEMOCRACY BUT IT'S IMPORTANT TO REMEMBER THAT THE FUTURE OF JOURNALISM IS NOT DEPENDENT ON THE FUTURE OF NEWSPAPERS. THE GREAT UPHEAVAL THE NEWS INDUSTRY IS GOING THROUGH IS THE RESULT OF A PERFECT STORM OF TRANSFORMATIVE TECHNOLOGY, THE ADVENT OF CRAIGS LIST, DRAMATIC CHANGES IN CONSUMER HABITS AND THE DIRE IMPACT ECONOMIC CRISIS HAS HAD ON ADVERTISING. AND THERE IS NO QUESTION THAT AS THE INDUSTRY MOVES FORWARD, WE WILL NEED TO HAVE AN ENORMOUS AMOUNT OF EXPERIMENTATION WITH NEW REVENUE MODELS AND NEW DEVICES LIKE THE KINDLE THAT YOU, SENATOR, MENTIONED AT THE BEGINNING. BUT WHAT WON'T WORK AND WHAT CAN'T WORK IS TO PRETEND THAT THE LAST 15 YEARS NEVER HAPPENED, THAT WE'RE STILL OPERATING IN THE OLD CONTENT ECONOMY AS OPPOSED TO WHAT JEFF JARVIS HAS CALLED THE NEW LINKED ECONOMY, AND THAT THE SURVIVAL OF THE INDUSTRY WILL BE FOUND BY PROTECTING CONTENT BEHIND WALLED GARDENS. WE HAVE SEEN THAT MOVIE AND CONSUMERS HAVE GIVEN IT LOUSY REVIEWS. AS THE GREEK PHILOSOPHER SAID 2500 YEARS AGO, WE CANNOT ENTER INTO THE SAME RIVER TWICE DESPITE MR. SIMON'S WISHES. NOW, THE FUTURE IS TO BE FOUND ELSEWHERE. IT'S A LINKED ECONOMY. IT'S SEARCH ENGINES, IT'S ONLINE ADVERTISING, IT'S CITIZEN JOURNALISM, AND THE FOUNDATIONS SUPPORT IT. THAT'S WHERE THE FUTURE IS. IF YOU CAN'T FIND YOUR WAY TO THAT, THEN YOU JUST CAN'T FIND YOUR WAY. MANY ONLINE VIDEO PROVIDERS ARE SHOWING US HOW. INSTEAD OF STICKING THEIR FINGER IN THE DIKE TRYING TO HOLD BACK THE FLOW OF INNOVATION BY HOARDING THEIR CONTENT, SMART COMPANIES BEGIN PROVIDING PLAYERS THAT ALLOWED THAT CONTENT TO BE POSTED ALL OVER THE WEB ACCOMPANIED BY LINKS AND ADS THAT HELP GENERATE ADDITIONAL TRAFFIC AND REVENUE. WHICH IS WHY MANY, MANY MORE PEOPLE, MILLIONS MORE, SAW TINA FEY IMPERSONATE SARAH PALIN ELSEWHERE AND NOT ON "SATURDAY NIGHT LIVE." AS ADVERTISING EXECUTIVE LINDA CAPLAN PUT IT, WE NEVER KNOW WHO THE CONSUMER IS GOING TO BE AT ANY POINT IN TIME SO WE HAVE TO FIND A WAY TO BE EVERYWHERE. UBIQUITY IS THE NEW EXCLUSIVITY. WHEN I HEAR THE HEADS OF MEDIA COMPANIES TALKING ABOUT RESTRICTING CONTENT, I CAN'T HELP FEELING THE SAME WAY I DID IN 2001, WHEN I WAS ONE OF THE CO-FOUNDERS OF THE DETROIT PROJECT AND WATCHED AS THE HEADS OF THE AUTO INDUSTRY DECIDED THAT INSTEAD OF EMBRACING THE FUTURE, THEY WOULD RATHER SPEND CONSIDERABLE ENERGY AND CONSIDERABLE AMOUNTS OF MONEY LOBBYING THE GOVERNMENT FOR TAX LOOPHOLES, FOR GAS-GUZZLING SUVs, AND FIGHTING BACK FUEL EFFICIENCY STANDARDS. AND WE SAW, MR. CHAIRMAN, HOW WELL THAT TURNED OUT. SO INSTEAD OF SIMILARLY TRYING TO HOLD BACK THE FUTURE, I SUGGEST THAT MEDIA EXECUTIVES READ THE INNOVATORS DILEMMA BY HARVARD PROFESSOR CLAYTON CHRISTIANSON, AND SEE WHAT HE HAS TO SAY ABOUT DISRUPTIVE INNOVATION AND THE FUTILITY OF RESISTING IT INSTEAD OF SEIZING THE OPPORTUNITIES IT PROVIDES. THAT'S WHY IT'S IMPERATIVE, MR. CHAIRMAN, THAT CONGRESS AND THE FCC MAKE SURE THEY HAVE IN PLACE SMART POLICIES THAT BRIDGE THE DIGITAL DIVIDE AND PROTECT INNOVATORS AND CONSUMERS FROM ATTEMPTS TO UNDERMINE NET NEUTRALITY OR IMPOSE, AS WE HAVE ALREADY SEEN, UNJUSTIFIED CHARGES LIKE METERING ON INTERNET USERS. AND WHY IT'S ALSO VERY IMPORTANT TO UPDATE THE PRESS CREDENTIALING RULES. DIGITAL NEWS IS A CLASSIC CASE OF DISRUPTIVE INNOVATION. EVEN SO, I THINK ALL THE OBITUARIES FOR NEWSPAPERS ARE PREMATURE. MANY PAPERS ARE BELATEDLY BUT SUCCESSFULLY ADAPTING TO THE NEW NEWS ENVIRONMENT. PLUS, UNTIL THOSE OF US WHO CAME OF AGE BEFORE THE INTERNET ALL DIE OFF, THERE WILL BE A MARKET FOR PRINT VERSIONS OF NEWSPAPERS BECAUSE IT APPEARS TO BE IN OUR COLLECTIVE DNA. THAT'S WHY I FIRMLY BELIEVE IN A HYBRID FUTURE, WHERE ALL THE MEDIA PLAYERS EMBRACE THE WAYS OF NEW MEDIA, ESPECIALLY TRANSPARENCY, INTERACTIVITY AND IMMEDIACY AND NEW MEDIA COMPANIES ADOPT THE BEST PRACTICE OF ALL MEDIA, ESPECIALLY FAIRNESS, ACCURACY AND HIGH IMPACT INVESTIGATIVE JOURNALISM. SO TO CONCLUDE, THIS HYBRID FUTURE WILL INCLUDE NONPROFIT, FOR-PROFIT MODELS LIKE THE INVESTIGATIVE FUND THAT THE HUFFINGTON POST RECENTLY LAUNCHED, WHICH IS BACKED BY A NONPROFIT FOUNDATION, AND PROVIDES BOTH STAFF REPORTERS AND FREELANCE JOURNALISTS WHO HAVE LOST THEIR JOBS THE OPPORTUNITY TO PURSUE IMPORTANT STORIES. THERE ARE MANY OTHER MODELS LIKE THAT, THE CENTER FOR PUBLIC INTEGRITY, THE CENTER FOR INVESTIGATIVE REPORTING AND I'M SURE THERE WILL BE MANY MORE TO FOLLOW. AND LET'S NOT FORGET THAT OUR CURRENT MEDIA CULTURE FAILED TO SERVE THE PUBLIC INTEREST BY MISSING WITH MANY HONORABLE EXCEPTIONS THE TWO BIGGEST STORIES OF OUR TIME. THE WAR IN IRAQ AND THE FINANCIAL MELTDOWN. WE HAVE HAD FAR TOO MANY AUTOPSIES AND NOT ENOUGH BIOPSIES. ONLINE NEWS IS SUITED TO FOLLOW A STORY UNTIL IT BREAKS THROUGH THE STATIC. SO WE NEED TO REMIND OURSELVES THAT THE MISSION OF JOURNALISM HAS ALWAYS BEEN TRUTH SEEKING, NOT AS IT HAS TOO OFTEN BECOME STRIKING SOME FICTITIOUS BALANCE BETWEEN TWO SIDES. SO WE STAND ON THE THRESHOLD OF A VERY CHALLENGING BUT VERY EXCITING FUTURE. INDEED, I AM CONVINCED THAT THE BEST DAYS OF JOURNALISM LIE AHEAD. JUST SO LONG AS WE EMBRACE INNOVATION AND DON'T TRY TO PRETEND THAT WE CAN SOMEHOW HOP INTO A JOURNALISTIC WAY-BACK MACHINE AND RETURN TO A PATH THAT NO LONGER EXISTS AND CAN NO LONGER BE RESURRECTED. |
| 01:06:22 | Kerry, John F. | THANK YOU VERY MUCH, MISS HUFFINGTON. VERY IMPORTANT TESTIMONY AND WE ENGAGE AN INTERESTING CONVERSATION, I THINK. MR. SIMON, YOU SAID IN THE COURSE OF YOUR TESTIMONY, YOU INTERESTINGLY NOTED THAT SOME OF THESE NEWSPAPERS STRIPPED AWAY THEIR CAPACITY PRIOR TO, YOU KNOW, OVER A NUMBER OF YEARS AND AS A CONSEQUENCE OF THAT, THEY DIDN'T HAVE AN ENTITY THAT WAS FUNDAMENTALLY ABLE TO DELIVER AND COMPETE. BUT IS THAT IN FACT REALLY TRUE? I MEAN, THE "WALL STREET JOURNAL" AND OTHERS HAVE TRIED TO MODEL A FOR-SUBSCRIPTION PRODUCT THAT'S BEEN A PRETTY GOOD PRODUCT BY ALL ACCOUNTS, COMPETITIVE AND STILL UP TO A HIGH STANDARD, YET THEY WEREN'T ABLE TO MAKE IT. SO WHAT IS IT ABOUT THE CURRENT BUSINESS STRUCTURE THAT PROHIBITS EVEN A QUALITY OPERATION WITH A KNOWN REPUTATION WITH TOP-LEVEL REPORTERS AND COLUMNISTS FROM BEING ABLE TO MAKE IT? |
| 01:07:24 | >> | I WOULD ARGUE THAT THE NEWSPAPERS AT A CRITICAL MOMENT WHEN THE MONEY WAS THERE TRADED AWAY THEIR BIRTHRIGHT. TRAGICALLY SO. WHEN I WAS IN JOURNALISM SCHOOL IN THE '70s, THEY TOLD US THAT IN THE IMMEDIATE THREAT WAS TELEVISION AND THE LOSS OF IMMEDIATACY IN THE NEWS COVERAGE. WE WOULD HAVE TO SEE THE AMBULANCE CHASING AND OVERNIGHT NEWS TO TELEVISION. THEY TOLD US WE WOULD BECOME MORE SOPHISTICATED, MORE LIKE MAGAZINES, THAT SPECIALIZED BEAT REPORTER WAS GOING TO BECOME MORE IMPORTANT, THAT WE WERE GOING TO BECOME MORE ESSENTIAL BY EXPLAINING THINGS IN GREATER DETAIL AND WITH GREATER SOPHISTICATION. THAT DIDN'T HAPPEN. BECAUSE WHEN THE MONEY WAS THERE, WHEN CHAINS LIKE THE TRIBUNE COMPANY WERE EARNING 37.5% PROFIT, THE MONEY WENT TO CEO SALARIES AND BIG MONEY INVESTORS AND WENT RIGHT OUT OF THE PROFESSION. AND THIS WAS, YOU KNOW, WALL STREET CALLED THE TUNE. AND IF YOU LOOK AT THAT 37% AS THE R & D MONEY THAT ANY HEALTHY INDUSTRY MIGHT HAVE APPLIED, LOOKING FORWARD, CONTEMPLATING THE INTERNET, THE NAIVETE WITH WHICH NEWSPAPER MANAGEMENT PERCEIVED THE INTERNET IN THE '90s AS MERELY ADVERTISING ITS PRODUCT WHEN IT WAS THE PRODUCT IS INCREDIBLE. |
| 01:08:37 | Kerry, John F. | BUT THOSE WHO DID GO ONLINE AND TRIED TO SELL THE PRODUCT THAT THEY HAD -- |
| 01:08:41 | >> | IF THEY DON'T DO IT INDUSTRY-WIDE, IT CAN'T WORK. BECAUSE IF EVERYONE IS AN A.P. OR REUTERS MEMBER AND IF THE AGGREGATORS HAVE MEMBERSHIP IN A.P. OR REUTERS, FOR A PAPER LIKE THE BALTIMORE SUN OR BOSTON GLOBE OR ANY INDIVIDUAL TO TRY TO SWIM AGAINST THE TIDE AND MAINTAIN COPYRIGHT WHEN, YOU KNOW, AT THAT POINT IT'S NOT EVEN A LEAKY GLASS. THERE'S NO GLASS AT ALL. ULTIMATELY, THE INDUSTRY AS A WHOLE HAD TO LOOK THIS SQUARE IN THE EYE AND SAY WAIT A SEC, IF WE DON'T HAVE CONTROL OVER OUR PRODUCT, IF IT'S GOING TO GO ELSEWHERE, WE CAN'T BRING PEOPLE TO OUR TENT, WHAT ARE WE DOING. |
| 01:09:22 | Kerry, John F. | THAT'S REALLY A MAJOR PLACE OF FOCUS HERE. I'M INTERESTED IN THIS CONCEPT OF LIMITED ANTITRUST EXEMPTION AND I WONDER, THOSE OF YOU WHO ARE ONLINE, PARTICULARLY WHAT YOU THINK ABOUT WHAT THAT DOES IN TERMS OF CREATING SOME EKE BALANCE HERE. IF YOU'RE THE AGGREGATOR -- EXCUSE ME, IF YOU'RE OUT THERE DOING THE FOOTWORK AND YOU'VE GOT A TOP LEVEL REPORTER IN A BUREAU SOMEWHERE IN THE WORLD OR YOU'RE DOING A MAJOR INVESTIGATIVE STORY AND YOU PUT THE PIECES TOGETHER, THAT TAKES MONEY, IT TAKES TIME, IT TAKES SKILL. ONCE THEY HAVE PUT IT TOGETHER AND THEY HAVE PUT THEIR STORY UP, IF SOMEBODY COMES TO GOOGLE, FOR INSTANCE, AND HITS THE SUBJECT MATTER AND THEY GET VARIOUS OUTSOURCES, PLACES WHERE THEY CAN GO, IT'S COMPLETELY DISSIPATED. THEY ARE NOT GOING TO GET REMUN RATED FOR THE LEVEL THAT THEY PUT INTO THAT, BUT EVERYBODY'S GOING TO HAVE ACCESS TO IT. SO IS THERE A FAIRER WAY TO TRY TO SPREADDHE COST HERE? |
| 01:10:26 | Mayer, Marissa | THINK IT'SS I IORORTA T RECOCOGNIZE THATSNIPPETS ALONE, AT W WSHSHOW ON GOOGLE, EITRR IN GOOGL NEWS OR IN WEB SEARCH, AREN'T A COMPLETE PICTURE. AND USERS DO NEED TOLILICK THROUGH TO ACTUALLY READ THE STORY. IN FAC T THEY DO. THEY CLICK THROUGH AT THE RATE A AT LEAST ONE BILLION CLICKS PER MONTH. I DO THINK THAT THE BENEFIT -- O ONCE THEY CLICK THROUGH, L ME GO THROUGH THIS WITH YOU. THEY FIND IT THROUGH YOU, THEY CLICK THROUGH THROUGH YOU, THEY COME UP WITH THE STORY WHICH IS CURRENTLY FREE. SO THEY'RE STILL NOT GETTING PAID FOR IT. |
| 01:10:55 | Mayer, Marissa | THERE IS USUALLY ADVERTISEMENTS ON THE PAGE WHEN THEY LAND THERE. SO IN A FREE MODEL, USUALLY THE PAGE WITH THE STORY ON IT WILL HAVE ADVERTISEMENTS. IN FACT, DO PAY FOR THE VIEWING OF THAT ARTICLE. |
| 01:11:06 | Kerry, John F. | THEY HAVE NOT BEEN ABLE TO FIND THAT THAT PROVIDES -- THEY'RE NOT GETTING IN MANY CASES, I DON'T THINK THEY'RE GETTING THAT ADVERTISING REVENUE AND IT CERTAINLY ISN'T COVERING THE COST OF DOING BUSINESS. |
| 01:11:17 | Mayer, Marissa | MY VIEW IS THAT IT'S STILL VERY EARLY. AND THAT IF YOU LOOK AT MANY MATURE BUSINESS MODELS, THEY OFTEN END UP IN A HYBRID APPROACH, WHETHER IT'S BOTH SUBSCRIPTION OR DIRECT PAYMENT IN ADDITION TO ADVERTISING, CABLE TELEVISION, MAGAZINES, NEWSPAPERS, ALL OPERATE ON THAT MODEL, WHERE THERE'S DIRECT PAYMENT FROM THE CONSUMER AND ADVERTISER. |
| 01:11:36 | Kerry, John F. | WHEN YOU SAY IT'S EARLY, IT'S NOT EARLY FOR THE DENVER POST OR SEATTLE INTELLIGENCER, A BUNCH OF FOLKS FACING BANKRUPTCY TODAY. |
| 01:11:44 | Mayer, Marissa | IT'S EARLY IN TERMS OF THE SITUATION REACHING A BALANCE AND US HAVING A PRODUCT ONLINE THAT FILLS THE NEEDS OF BOTH THE USERS AND THE MONETIZATION NEEDS OF THE REPORTING. |
| 01:11:53 | Kerry, John F. | MISS HUFFINGTON, YOU'VE BEEN PERHAPS THE MOST SINGLE SUCCESSFUL PERSON ON THE INTERNET IN TERMS OF PRESENTING AN ENTIRELY NEW PRODUCT IN ALMOST NEWSPAPER FORM. WHICH HAS BECOME ITS OWN DESTINATION SITE. FIRST OF ALL, HOW MANY PEOPLE PUT THAT TOGETHER AT THIS POINT? HOW MANY PEOPLE ON STAFF ARE WORKING WOULD YOU SAY PART OF YOUR -- |
| 01:12:17 | Huffington, Arianna S. | RIGHT NOW, THE HUFFINGTON POST EMPLOYS 60 PEOPLE AND THE INVESTIGATIVE FUND WE LAUNCHED LAST MONTH WILL EMPLOY TEN FULL-TIME PEOPLE, THEN HUNDREDS OF FREELANCERS WHO WILL BE ASSIGNED SPECIFIC STORIES. BUT A FOLLOW ON MISS MAYOR'S POINT, THERE ARE ALREADY LAWS IN PLACE, MR. CHAIRMAN, FAIR USE LAWS, SO NO AGGREGATOR CAN ACTUALLY JUST TAKE A STORY. THEY HAVE TO TAKE A SMALL PART OF THE STORY TO GIVE A TASTE TO THE CONSUMER OF WHAT THE STORY'S ABOUT, BUT IN ORDER TO READ THE FULL STORY, THEY WOULD HAVE TO GO TO THE CONTENT CREATOR AND MONETIZING THAT IS REALLY THE FUTURE. AS VIDEO PRODUCERS THE MANY NETWORKS HAVE DONE, CABLE COMPANIES HAVE DONE, THROUGH THESE EMBEDABLE PLAYERS, WHERE THEY PUT ADVERTISING, THEY PUT LINKS TO OTHER STORIES ON THEIR NETWORK OR CABLE COMPANY. |
| 01:13:19 | Kerry, John F. | WHAT YOU'VE DONE ESSENTIALLY IS CREATE A NONPROFIT ENTITY UNDER THE UMBRELLA OF YOUR FOR-PROFIT ENTITY AND THE NONPROFIT ENTITY WILL GO OUT AND DO THE INVESTIGATIVE PIECE. IS THAT CORRECT? |
| 01:13:33 | Huffington, Arianna S. | BUT THE NOT FOR PROFIT ENTITY WILL BE OPEN SOURCE WHICH MEANS THE CONTENT THAT THE NOT FOR PROFIT ENTITY PRODUCES WILL BE AVAILABLE TO ANYBODY AT THE SAME TIME AS IT IS AVAILABLE TO THE HUFFINGTON POST. SO THE "NEW YORK TIMES" COULD TAKE IT AT THE SAME TIME ANYBODY COULD. AND THE WAY WE WOULD ALL MONETIZE THAT IS AGAIN THROUGH ADVERTISING. IN A WAY, IT IS ABSOLUTELY TRUE THAT ADVERTISING HAS NOT MOVED ONLINE AS EYEBALLS HAVE MOVED ONLINE BUT THAT'S THE PERIOD OF TRANSITION THAT WE ARE AT AT THE MOMENT. |
| 01:14:03 | Kerry, John F. | THIS WILL BE MY LAST QUESTION. IF WE CAN -- CLEARLY, THE FOLKS WHO ARE IN WHAT HAS BEEN DUBBED LEGACY SIDE OF THE INDUSTRY ARE STRUGGLING BECAUSE THEY'RE NOT GETTING THE REVENUE THAT THEY USED TO GET TO PAY FOR THE OVERHEAD FOR THEIR TYPE OF OPERATION. NOW ADMITTEDLY, THINGS ARE CHANGING AND THINGS CHANGE IN THE BUSINESS WORLD AND THEY HAVE TO CHANGE THEIR BUSINESS MODEL BUT EVEN ASSUMING THEY ADJUST AND CHANGE THE BUSINESS MODEL AND MOVE, THERE'S STILL A CERTAIN LEVEL OF SKILL AND QUALITY AND EXPERIENCE AND STANDARD AND SO FORTH THAT MR. SIMON AND OTHERS HAVE REFERRED TO, AND DEPLOYMENT. PUTTING PEOPLE INTO KABUL, PUTTING PEOPLE INTO ISLAMABAD, HAVING PEOPLE ON THE GROUND, BUILDING RELATIONSHIPS. THERE'S NOT EVIDENCE YET AT LEAST OF, I MEAN, THIS PARASITE ISSUE IS REAL AND TO THE DEGREE PEOPLE FEEL THAT THE INTERNET IS PROVIDING THEIR WORK WITHOUT AN ADEQUATE LEVEL OF COMPENSATION FOR WHAT IT COSTS THEM TO PRODUCE IT. |
| 01:15:13 | Huffington, Arianna S. | THAT'S WHY, MR. CHAIRMAN, I TALKED ABOUT A HYBRID MODEL. AT THE HUFFINGTON POST, FOR EXAMPLE, WE HAVE A LICENSING AGREEMENT WITH A.P. WE PAY FOR THAT. WE PAY FOR THE A.P. STORIES THAT WE POST ON THE HUFFINGTON POST. WE ALSO HAVE ORIGINAL BLOGS ON THE SITE. YOU HAVE KINDLY BLOGGED ON THE HUFFINGTON POST. THERE'S A LOT OF ORIGINAL CONTENT ON THE SITE. |
| 01:15:39 | Kerry, John F. | MY CASE, IT WAS VERY ORIGINAL. |
| 01:15:44 | Huffington, Arianna S. | WHICH IS AVAILABLE TO OTHERS TO LINK TO AND USE AGAIN WITHOUT CHARGE. |
| 01:15:48 | Kerry, John F. | I'M SURE WE'RE GOING TO PURSUE THIS MORE. I WANT TO LET MY COLLEAGUES HAVE A CHANCE. KAY BAILEY HUTCHINSON IS THE RANKING MEMBER OF THE ENTIRE COMMITTEE. IN DEFERENCE TO HER, I WANT TO ALLOW HER AN OPPORTUNITY TO HAVE HER OPENING STATEMENT, THEN I WILL COME BACK TO YOU. |
| 01:16:02 | Hutchison, Kay Bailey | THANK YOU VERY MUCH, MR. CHAIRMAN. THIS IS SUCH AN APPROPRIATE AND TIMELY SUBJECT FOR US TO DISCUSS, ESPECIALLY AFTER THE NEWSPAPER OF YOUR STATE HAS JUST MADE AN AGREEMENT AT THE 4:00 THIS MORNING, I UNDERSTAND, TO TRY TO STAY IN BUSINESS, BUT THE FACT OF THE MATTER IS WE'RE LOOKING ALL OVER THE COUNTRY AT NEWSPAPERS THAT ARE GOING UNDER, STRUGGLING OR MAKING DRASTIC CUTS IN ORDER TO CONTINUE SERVICE, AND I ASKED THAT JIM MORONEY BE ONE OF THE WITNESSES AND I APPRECIATE THAT YOU HAD HIM HERE, AND I WAS CHAIRING ANOTHER HEARING AND THAT'S WHY I'M LATE. BUT I WOULD LIKE TO JUST TAKE YOUR LINE OF QUESTIONING AND GO FORWARD AND ASK FOR THE NEWSPAPER RESPONSE, BECAUSE I STILL HAVE THE SAME SKEPTICISM THAT YOU ARE EXHIBITING ABOUT HOW YOU CAN REALLY DO THE IN-DEPTH NECESSARY REPORTING AND PAY FOR THAT IN ANY KIND OF A BUSINESS MODEL AND CONTINUE TO HAVE THAT SERVICE, WHETHER IT IS FROM A LEGACY NEWSPAPER OR ASSOCIATED PRESS OR ANY OTHER ENTITY, AND LET ME SAY, I THINK THAT WHAT HAS HAPPENED IN THE INTERNET WORLD AND THE HUFFINGTON POST AND GOOGLE AND ALL OF THE NEW THINGS THAT HAVE EXPLODED IN THE NEWS BUSINESS ARE FABULOUS. THEY ARE FABULOUS FOR SO MANY DIFFERENT TYPES OF NEWS GATHERING AND ALSO THE DIFFERENT TYPES OF PEOPLE WHO ARE GETTING THEIR NEWS IN DIFFERENT WAYS. BUT I WOULD LIKE TO ALSO MAKE SURE THERE'S A LEVEL PLAYING FIELD SO THAT THE INVESTMENTS THAT ARE MADE FOR THE IN-DEPTH REPORTING AND ALL OF THE BUREAUS HAVE THE CAPABILITY TO SUCCEED SO THAT WE CONTINUE TO HAVE THAT MAIN OUTLET THAT WE HAVE HAD THROUGH THE YEARS OF NEWSPAPERS. SO I WOULD LIKE TO ASK MR. MORONEY IF HE WOULD TAKE THE ARGUMENT ABOUT HOW YOU CAN, WITH A BUSINESS MODEL, DO THE IN-DEPTH REPORTING WHEN YOU ARE NOT ABLE TO GET WHAT I ASSUME IS A SUFFICIENT REVENUE FOR YOUR ONLINE VERSIONS WHICH YOU ALSO HAVE, AND ALSO HOW YOU WOULD BE ABLE TO GET THE FAIR RETURN FOR THE INVESTMENT YOU'RE MAKING SO THAT A NEWSPAPER HAS A FAIR CHANCE. |
| 01:18:57 | >> | WELL, AS I MENTIONED IN MY ORAL TESTIMONY, THE DALLAS MORNING NEWS INVESTS OVER $30 MILLION EACH YEAR IN ITS NEWS GATHERING OPERATIONS. THE IDEA THAT THERE MIGHT BE A NONPROFIT MODEL TO SUPPORT THAT IS A LITTLE DIFFICULT FOR ME TO COME TO QUANTITATIVELY. I THINK ABOUT NEWS ORGANIZATIONS THAT GIVE OUT ABOUT 5% OF THEIR INCOME A YEAR TO SUPPORT $30 MILLION OF ANNUAL INVESTMENT, WOULD TAKE UPWARDS OF $600 MILLION DEDICATED NOTHING BUT TO SUPPORTING THE SCALE OF NEWS RESOURCES WE EMPLOY IN THE DALLAS-FT. WORTH AREA. SO THERE MAY BE SOME LIMITED OPPORTUNITIES FOR NONPROFIT HELP AND I BELIEVE THERE ARE, BUT AT THE SCALE OF NEWS RESOURCES, WHICH IS WHAT I BELIEVE THIS IS REALLY ABOUT, NOT ABOUT SAVING NEWSPAPERS, PER SE, BUT SAVING THE SCALE OF THE NEWSROOMS THAT NEWSPAPERS EMPLOY ACROSS THIS COUNTRY IS WHAT WE'RE TRYING TO DO, AND THE ONLINE MODEL, DALLASNEWS.COM ATTRACTS OVER 50 MILLION PAGE VIEWS A MONTH AND SIX MILLION UNIQUE VISITORS A MONTH, AND IT CAN'T PAY FOR TWO-THIRDS OF THE COST OF THE NEWSROOM THAT THE NEWSPAPER SUPPORTS. THE FINANCIAL FACTS ARE JUST THAT THE NEWSPAPER MODEL TODAY, THE PRINT, THE INK ON PAPER PRINT MODEL, IS THE ONE THAT CAN SUPPORT THE SCALE OF THESE NEWSROOMS WE EMPLOY. SO FINDING A WAY FOR US TO BE ABLE TO GET A FAIR RETURN ON THE INVESTMENT WE'RE MAKING, ON THE CONTENT THAT WE PUBLISH DIGITALLY I THINK IS VERY IMPORTANT. I WOULD AGREE WITH MISS MAYOR, THERE HAS BEEN A DIFFERENT ATOMIZATION OF NEWS AND SHE SAID IT WAS DOWN TO THE ARTICLE LEVEL. I BELIEVE IT'S DOWN TO THE FIRST FOUR LINES OF THE ARTICLE LEVEL. THAT'S WHY WHAT SHE CALLS A FAIR USE OF OUR CONTENT I DON'T BELIEVE IS A FAIR USE. THEY ARE MAKING PLENTY OF MONEY OFF OF THOSE FIRST FOUR LINES AND WE HAVE AS ESTABLISHED IN THE HOT NEWS CASE THAT WAS DONE IN THE EARLY PART OF THE 19th CENTURY -- 1900s AND REAFFIRMED IN THE NEW YORK STATE COURTS IN THE LAST YEAR THAT THERE IS A QUASI PROPERTY RIGHT TO BREAKING NEWS AND I BELIEVE WE NEED TO LOOK AT THAT STANDARD AS FOR WHAT IT IS THAT NEWSPAPER COMPANIES AND HOW THEY CAN GET A FAIR RETURN FOR THE INVESTMENT THEY'RE MAKING AND THE JOURNALISM WE'RE PUBLISHING DIGITALLY. |
| 01:21:28 | Hutchison, Kay Bailey | LET ME JUST ASK ANYONE ELSE ON THE PANEL WHO WOULD RESPOND THAT IF THERE IS A PROPERTY RIGHT AND SOME PROPRIETARY RIGHT FOR ALL OF THIS INVESTMENT, IF THERE ARE OTHER IDEAS ABOUT HOW THERE COULD BE A FAIR COMPENSATION, BECAUSE WE CAN'T SAY THAT THE ADVERTISING ONLINE WOULD PAY FOR THAT KIND OF INVESTMENT. THERE'S JUST -- THAT JUST CAN'T BE SAID WITH A STRAIGHT FACE, I DON'T THINK. SO WHAT WOULD BE THE FAIR WAY TO COMPENSATE, THEN, FOR WHAT WOULD BE USED ONLINE THAT WOULD BE OBTAINED EITHER CHEAPLY OR FREE, SO THAT YOU COULD KEEP THAT LEVEL PLAYING FIELD AND CONTINUE TO HAVE THE FULL ARRAY OF NEWS SOURCES? MISS HUFFINGTON, MISS MAYOR? |
| 01:22:22 | Huffington, Arianna S. | WELL, ALREADY, WE SEE THAT ADVERTISING, BECAUSE OF THE DROP THAT EVERYBODY HAS MENTIONED HERE TODAY AT THE PRINT LEVEL, CANNOT SUPPORT THE PRINT NEWSPAPERS. SO WHAT WE'RE SEEING IS THAT WHAT NEEDS TO HAPPEN IS TO MONETIZE TRAFFIC, AND ANY TIME GOOGLE OR THE HUFFINGTON POST OR ANY NEWS AGGREGATOR OR NEWS CUREATOR LINKS TO A STORY, HE DOES DRIVE TRAFFIC. THAT CAN BE DOCUMENTED. HUNDREDS OF MILLIONS OF PAGE VIEWS ARE GENERATED BECAUSE OF LINKING. SO WHAT ALL THE DIFFERENT CONTENT CREATORS NEED TO EXPERIMENT WITH, AND IT'S ABSOLUTELY TRUE IT'S A TRANSITIONAL PERIOD, IS MONETIZING THAT TRAFFIC. AND THOSE WHO ARE USING EMBEDDABLE PLAYERS HAVE FOUND A LOT OF WAYS TO DO THAT BECAUSE THEY ARE ACTUALLY FOLLOWING WHERE THE CONSUMERS ARE. ALREADY, WE HEARD SENATOR KERRY TALK ABOUT HOW MANY HUNDREDS OF THOUSANDS OF FRIENDS THE "NEW YORK TIMES" HAS ON FACEBOOK. THESE ARE REAL CONSUMERS OF NEWS. SO THAT CONTENT IS FREE ON FACEBOOK, BUT IT CAN BE MONETIZED THROUGH ADVERTISING. |
| 01:23:33 | Mayer, Marissa | I ALSO WOULD LIKE -- |
| 01:23:37 | Kerry, John F. | SENATOR McCASKILL? SOMEBODY ELSE? SORRY. |
| 01:23:41 | Mayer, Marissa | I ALSO WANTED TO CHIME IN. IN 2008, MORE THAN $5 BILLION WAS EARNED THROUGH GOOGLE ADS ALONE ON PUBLISHER SITES. THAT'S NOT GOOGLE REVENUE, THAT'S REVENUE THAT THE PUBLISHERS EARNED ON THEIR SITE. THERE'S A LOT OF REVENUE THAT CAN BE EARNED THROUGH ONLINE ADVERTISING. WHEN YOU COUPLE THAT WITH A HYBRID MODEL WHERE CONSUMERS MAY PAY DIRECTLY OR SUBSCRIBE ONLINE, I THINK MONETARILY, WE CAN GET THERE. I THINK IT'S ALSO IMPORTANT TO POINT OUT THAT I REALLY NEED TO PUSH BACK ON THE NOTION THAT WITH THE FIRST 200 CHARACTERS OF A STORY, YOU GET THE COMPLETE INFORMATION. IN FACT, THE ONE BILLION CLICKS PER MONTH THAT WE SEND ON TO NEWSPAPERS SHOW THAT PEOPLE NEED TO CLICK THROUGH TO REALLY GET THE FULL CONTEXT. IT'S ALSO IMPORTANT TO POINT OUT THAT THERE ARE INDUSTRY STANDARD OPT OUTS. IT'S VERY EASY TO OPT OUT OF A SEARCH ENGINE OR OUT OF GOOGLE NEWS WITH A REBOTS.TXT FILE THAT SIMPLY SAYS YOU DON'T WANT THIS CONTENT TO BE DISPLAYED THERE. |
| 01:24:35 | Kerry, John F. | THANK YOU, SIR. |
| 01:24:37 | >> | IT WOULD BE HELPFUL IF MISS MAYOR COULD COME BACK AND TELL US WHAT PERCENT OF THAT $5 BILLION IS GOING TO NEWSPAPER PUBLISHERS. I BELIEVE WHEN SHE USES THE TERM PUBLISHER, SHE MEANS ANYBODY WHO IS PUBLISHING ANY KIND OF CONTENT ON THE INTERNET, INCLUDING BLOGGERS AND SO FORTH. I DON'T THINK VERY MUCH OF IT IS COMING BACK TO THE NEWSPAPER PUBLISHERS. |
| 01:24:57 | Kerry, John F. | SENATOR McCASKILL? |
| 01:24:58 | McCaskill, Claire | WELL, I WANT TO HONE IN FIRST OF ALL, I WILL TRY NOT TO GUSH, MR. SIMON. I'M A HUGE FAN OF THE WIRE. MY SON, I USED TO -- I AM A FORMER PROSECUTOR AND I HAVE ALWAYS LOOKED DOWN MY NOSE AT CRIME DRAMA ON THE TELEVISION AND MY SON SAID MOM, YOU BETTER WATCH THIS BECAUSE I THINK YOU MIGHT APPRECIATE IT. OTHER THAN THE FACT I HAD TO TRANSLATE MOST OF IT FOR MY HUSBAND, HE KEPT SAYING WHAT'S A PACKAGE, I HAD TO -- |
| 01:25:23 | >> | CAN MEAN DIFFERENT THINGS. |
| 01:25:24 | McCaskill, Claire | IT CAN MEAN DIFFERENT THINGS. THAT'S AN UNDERSTATEMENT. YOU KNOW, TWO THINGS THAT I THINK WERE MISSING IN THIS DISCUSSION SO FAR THAT I THINK MR. SIMON IS VERY PAINED ABOUT AND I'M PAINED ABOUT, AND THAT IS THE INVESTIGATIVE JOURNALIST |
| 01:25:41 | >> | RIGHT. |
| 01:25:43 | McCaskill, Claire | I UNDERSTAND MISS HUFFINGTON, THAT YOU ARE WORKING ON AN INVESTIGATIVE MODEL BUT FOR YOUR AUDIENCE, THERE'S NOT GOING TO BE A LOT OF STORIES ABOUT THE COP THAT HAS BEEN RUNNING THE DICE GAME ON THE SIDE OR THE COP WHO HAS BEEN, YOU KNOW, TAKING A HIT OF MONEY FROM VARIOUS PEOPLE. THE WAY YOU GET THOSE STORIES IS BY INVESTING IN PEOPLE BECAUSE IT'S VERY LABOR-INTENSIVE AND IT'S ABOUT BUILDING RELATIONSHIPS AT A LOCAL LEVEL. IT'S LIKE NAMING THE GOOD TEACHERS THAT I HAD IN MY LIFE. I CAN SIT HERE RIGHT NOW AND NAME THE GOOD JOURNALISTS THAT I RESPECT AND THAT I FEAR AND THAT I KNOW THAT THEY'LL CONTINUE ASKING THE QUESTIONS AND BUILDING THE RELATIONSHIPS AND HANGING OUT IN THE PLACES WHERE THE PEOPLE THAT KNOW THE FACTS WILL ULTIMATELY GIVE THEM TO THEM, AND YOU KNOW, IT IS INCREDIBLY IMPORTANT TO OUR DEMOCRACY. IT IS INCREDIBLY IMPORTANT TO OUR LOCAL COMMUNITIES AND TO OUR STATES AND RIGHT NOW, WHERE THE JOURNALISTS ARE FLEEING, IT'S IN COURTHOUSES AND IT'S IN POLICE DEPARTMENTS AND IT'S IN STATE CAPITOLS. WE STILL HAVE A BUNCH AROUND HERE AND THAT'S GREAT. WE DON'T HAVE AS MANY AS WE USED TO. BUT THAT'S WHERE THERE REALLY ARE ENDANGERED SPECIES, THE INVESTIGATIVE JOURNALISTS. AND THE OTHER THING, AND MR. SIMON OR MISS HUFFINGTON, THE EDITOR. I KNOW YOU HATE THEM, JOURNALISTS, GOOD JOURNALISTS. I KNOW ALSO THERE'S GOOD ONES THAT YOU LOVE. I JUST HAD SOMETHING HAPPEN TO ME WHILE WE'RE SITTING HERE WHERE SOMEONE PUBLISHED A STORY ONLINE IN ST. LOUIS AND THEY CALLED ME AT 1:00, CALLED MY PRESS SHOP AT 1:00, WE HADN'T CALLED BACK IN AN HOUR. THEY CALLED AGAIN AT 2:30 AND THEY HAD ALREADY PUT IT UP ONLINE TEN MINUTES EARLIER, WITHOUT A RESPONSE FROM ME. NOW, THAT WOULDN'T HAVE HAPPENED IN A NEWSPAPER BECAUSE AN EDITOR WOULD HAVE SAID YOU'VE GOT TO TRY AGAIN TO GET AHOLD OF HIM BEFORE WE PRINT IT. IT WOULDN'T HAVE HAPPENED, BUT IT HAPPENED, BECAUSE OBVIOUSLY, WE THINK THEY GOT THE STORY WRONG THAT THEY PUT UP ONLINE AND WE YELLED AT THEM AND THIS ALL HAPPENED ON MY BLACKBERRY WHILE I'M SITTING HERE, AND I'M APPROVING QUOTES AS I SIT HERE, TRYING TO CORRECT A STORY, SO THERE ARE TWO THINGS I'M WORRIED ABOUT. THE LOCAL INVESTIGATIVE REPORTER AND THE EDITOR. AND HOW DOES THIS NEW MODEL, HOW DO WE DEAL WITH THAT? |
| 01:28:15 | >> | I WOULD REALLY LIKE TO AFFIRM THAT. THERE HAS BEEN AN EQUIVOCATION UP HERE BETWEEN PEOPLE DISCUSSING WHAT'S GOING TO HAPPEN WITH JOURNALISM AT THE HIGH END COVERING WASHINGTON, COVERING NATIONAL AND INTERN NATIONAL ISSUES. THERE IS ALREADY AN ECONOMY OF SCALE WHICH PROVIDES FOR POLITICO ONE LINE. WHAT IS DYING, WHAT IS NOT BEING ADDRESSED UP HERE BY THE PEOPLE SUPPORTING NEW MEDIA IS THE FACT THAT AT THE STATE AND LOCAL LEVEL, IT'S AMERICA'S REGIONAL NEWSPAPERS THAT ARE IMPLODING FASTER. IN SOME WAYS, THE INDUSTRY ITSELF HAS BEEN OBLIVIOUS TO IT BECAUSE IT'S LIKE THE SHARK WAS EATING EVERYBODY FROM THE BOTTOM AND "NEW YORK TIMES" AND "WASHINGTON POST" FELT IT LAST. WHEN THEY HAVE A BUYOUT OF 100, 200 PEOPLE AND A NEWSROOM WITH 1300 PEOPLE, IT DOESN'T FEEL THE SAME AS 200 PEOPLE WALKING OUT OF A NEWS ROOM OF 400 IN A REGIONAL AREA. THAT MEANS THAT ALL OF A SUDDEN, THERE'S NOBODY COVERING THE COP SHOP, NOBODY COVERING THE ZONING BOARD. THE DAY I RUN INTO A HUFFINGTON POST REPORTER AT A BALTIMORE ZONING BOARD HEARING IS THE DAY THAT I WILL BE CONFIDENT THAT WE HAVE ACTUALLY REACHED SOME SORT OF BALANCE. THERE'S NO GLORY IN THAT KIND OF JOURNALISM BUT THAT IS THE BEDROCK OF WHAT KEEPS -- THE NEXT 10 OR 15 YEARS IN THIS COUNTRY ARE GOING TO BE A HALCYON ERA FOR STATE AND LOCAL POLITICAL CORRUPTION. IT WILL BE ONE OF THE GREAT TIMES TO BE A CORRUPT POLITICIAN. I REALLY ENVY THEM. I REALLY DO. |
| 01:29:34 | McCaskill, Claire | YOU KNOW, I KNOW WE GIGGLE ABOUT IT BUT I THINK IT'S VERY SERIOUS. YOU KNOW, MR. CHAIRMAN, I'M GLAD YOU'RE HAVING THIS HEARING AND YOU KNOW, IT'S NOT THAT THESE REPORTERS ARE EXPENSIVE IN TERMS OF WHAT THEY MAKE A YEAR. IT'S JUST IT TAKES A LONG TIME FOR THEM TO PRODUCE SOMETHING AND IF WE CAN COME TO A NOT-FOR-PROFIT MODEL THAT WAS FOCUSED ON THAT, THE INVESTIGATIVE JOURNALISM AT THE STATE AND LOCAL LEVEL, I THINK THAT MIGHT BE WAY MORE IMPORTANT THAN A NOT-FOR-PROFIT MODEL THAT'S GOING TO MAKE SURE WE'VE GOT SOMEBODY ELSE FOLLOWING PRESIDENTIAL POLITICS. |
| 01:30:08 | Huffington, Arianna S. | SENATOR McCASKILL, ACTUALLY, IF YOU LOOK AT, FOR EXAMPLE, VOICES OF SAN DIEGO, WHICH IS A NOT-FOR-PROFIT SITE THAT IS EXPOSING PRECISELY WHAT YOU AND MR. SIMON ARE TALKING ABOUT, LOCAL CORRUPTION, AND ACTUALLY HAVING REAL IMPACT INVESTIGATIVE JOURNALISM, THAT IS HAPPENING AROUND THE COUNTRY. AND THAT IS HAPPENING IN PRECISELY THE WAY THAT YOU WOULD LIKE IT TO HAPPEN. THE HUFFINGTON POST IS EXPANDING INTO 12 CITIES. WE ARE GOING TO MAKE SURE BALTIMORE IS INCLUDED, MR. SIMON, FOR YOUR SAKE. |
| 01:30:37 | >> | CAN'T WAIT. |
| 01:30:41 | Huffington, Arianna S. | AND IN THESE CITIES, CITIZEN JOURNALISTS ARE INCREDIBLY IMPORTANT. I'M SORRY TO HEAR MR. SIMON DISMISS THEM. I'M SURE YOU'RE FAMILIAR WITH THE ATTORNEY GENERAL SCANDAL. THAT WAS REVEALED BECAUSE OF CITIZEN JOURNALISTS WORKING TOGETHER ALL AROUND THE COUNTRY, JOSH MARSHALL IN TALKING POINTS MEMO HAD PUT IT TOGETHER, PROVIDED THE PLATFORM, BUT THE WORK WAS DONE BY CITIZEN JOURNALISTS. THEY LOVE THAT WORK. WE CAN GET ANY KIND OF DOCUMENT DUMP AS WE ARE CALLING IT AND PUT IT OUT TO THE THOUSANDS OF COMMUNITY JOURNALISTS ON THE HUFFINGTON POST AND WE GET AMAZING STUFF BACK. FOR SOME REASON, PEOPLE WANT TO PARTICIPATE IN EXPOSING WHAT IS HAPPENING. THAT'S HAPPENING, FOR EXAMPLE, ON THE BANK BAILOUT EVERY DAY. THE TAPE THAT WE PUT OUT ON THE HUFFINGTON POST OF THE MORGAN STANLEY EXECUTIVE WHO TALKED ABOUT BONUSES BEING CALLED RETENTION AWARDS, THAT CAME FROM A CITIZEN JOURNALIST. THE STORY ABOUT PRESIDENT OBAMA'S COMMENTS AT A FUND-RAISER CAME FROM A CITIZEN JOURNALIST. SO THE IMPORTANCE OF THE CITIZEN JOURNALIST CANNOT BE UNDERESTIMATED. |
| 01:31:48 | McCaskill, Claire | ARE THERE EDITORS IN THAT MODEL? |
| 01:31:51 | Huffington, Arianna S. | ABSOLUTELY THERE ARE EDITORS. |
| 01:31:53 | McCaskill, Claire | WHO PAYS THE EDITORS? |
| 01:31:54 | Huffington, Arianna S. | THE ONLINE PROVIDERS, THE NEWSPAPERS, WE ARE ALL PAYING EDITORS BUT IT'S REALLY WHAT IS BEING CALLED PRO-AM MODEL, PROFESSIONAL AND AMATEUR MODEL WORKING TOGETHER. |
| 01:32:08 | >> | IF I MAY, SENATOR, THERE ARE A NUMBER OF SIMILAR KINDS OF LOCAL AND MISSION-DRIVEN ORGANIZATIONS THAT ARE SET UP AS NONPROFITS. THE VOICE OF SAN DIEGO IS ONE OF THEM. MINPOST IN MINNEAPOLIS IS ANOTHER. CHI-TOWN DAILY NEWS IN CHICAGO. GOTHAM GAZETTE IN NEWARK, VILLAGE SOUP IN MAINE. THOSE ARE JUST A HANDFUL THAT OUR FOUNDATION HAPPENS TO SUPPORT. WE ALSO HAVE OFFERED TO COMMUNITY FOUNDATIONS TO MATCH WHATEVER, DOLLAR FOR DOLLAR, WHATEVER CONTRIBUTIONS THEY MAKE TO THIS SORT OF ORGANIZATION. THESE ARE NOT, THOUGH, AND THIS IS A SENSE IN WHICH I REALLY DO AGREE WITH MARISSA SAYING THAT THIS IS EARLY. YOU'RE RIGHT, SENATOR, IT'S LATE FOR A NEWSPAPER THAT'S GONE INTO BANKRUPTCY BUT IT'S EARLY IN THE EVOLUTION OF THIS TECHNOLOGY, AND EARLY IN OUR FIGURING OUT HOW THIS IS GOING TO WORK AT THE LOCAL LEVEL. WHERE MOST JOURNALISM IN AMERICA ACTUALLY HAPPENS. NOT AT THE "NEW YORK TIMES" OR AT THE "WASHINGTON POST," IT SEEMS TO ME. SO I THINK WE NEED TO LOOK FOR WAYS TO ENCOURAGE INNOVATION LOCALLY. IF IT'S NONPROFIT -- IF IT'S ENHANCING THE CAPACITY OR THE ABILITY OF HAVING A CHAIN UNLOAD ONE OF ITS PAPERS AND TURN IT OVER TO A COMMUNITY GROUP AS A NONPROFIT, IF THERE ARE WAYS OF ENCOURAGING THAT SORT OF THING, I THINK YOU OUGHT TO LOOK AT IT. I THINK THERE ARE ALREADY LOTS OF PEOPLE WHO ARE INNOVATING AND SURVIVING, THE FIVE THAT I JUST MENTIONED HAVE BEEN AROUND, EACH OF THEM, FOR A COUPLE OF YEARS. IS THAT AS LONG AS MY OLD PAPER AT THE MIAMI HERALD? 110 YEARS? NO, OF COURSE NOT. BUT I THINK THEY'RE SERIOUS AND I THINK THEY WILL GET MORE SERIOUS, THEY WILL GET BETTER, THEY WILL DEVELOP THEIR PRACTICES AND I THINK EVENTUALLY -- I JUST HAVE A TERRIBLE FEELING THAT WHAT WE MUSTN'T DO, IT SEEMS TO ME, IS TO TRY TO FIGURE OUT THE OPPOSITE OF WHAT YOGI BERA SAID. IF FANS DON'T WANT TO COME TO THE BALLPARK, NOBODY CAN STOP THEM. IF PEOPLE ARE GOING TO GIVE EACH OTHER INFORMATION DIGITALLY, ON MOBILE, I THINK OUR EFFORTS OUGHT TO BE ON FIGURING OUT HOW YOU DELIVER THAT KIND OF INFORMATION, HOW YOU FACILITATE THAT KIND OF INFORMATION AND AS I SAID IN MY REMARKS, HOW YOU MAKE SURE THAT YOU DON'T LEAVE OUT THE 40% OF AMERICANS WHO ARE DIVIDED ON THE OTHER SIDE BECAUSE THEY LIVE IN A RURAL AREA, BECAUSE THEY'RE POOR, OR BECAUSE THEY'RE ELDERLY. |
| 01:34:47 | Kerry, John F. | THANK YOU VERY MUCH. SENATOR CAMPBELL? |
| 01:34:51 | Cantwell, Maria | THANK YOU, MR. CHAIRMAN. THANK YOU FOR HAVING THIS IMPORTANT HEARING AND I HAVE TO SAY THAT HAVING LISTENED TO THE MANY WITNESSES, I'M NOT SURE THERE'S MUCH ACTUALLY I DISAGREE WITH IN THE SENSE OF I'D LIKE TO SEE SOME OF THE THINGS THAT MAYBE I COULD HAVE WITNESSES ANSWER WHERE I CAN UNDERSTAND WHETHER YOU ARE IN DISAGREEMENT. I GUESS THAT IS TO SAY IT SEEMS TO ME THAT THERE IS PROBABLY IN THE EARLY DAYS OF RADIO, A PROCLAMATION THAT MAYBE THE NEWSPAPER INDUSTRY WAS GOING TO GO UNDER AND I'M SURE THERE WAS WITH TELEVISION, THAT THE NEWSPAPER INDUSTRY WAS GOING TO GO UNDER, AND NOW I'M SURE WITH THE INTERNET, BUT AS MUCH AS THE CHAIRMAN I KNOW, I THINK IN YOUR COMMENTS, SAID THAT NEWSPAPERS ARE ENDANGERED SPECIES, I ACTUALLY LIKE GOING TO THE HUFFINGTON POST ON MY MOBILE BLACKBERRY AND SEEING THAT HEADLINE AND SEEING THE CHAIRMAN THERE AND READING THAT STORY AND HAVING THE ABILITY TO HAVE ACCESS TO THAT. SO TO ME, THIS IS ABOUT HAVING THE BEST OF BOTH WORLDS. I CAN'T WAIT UNTIL SOMEBODY OFFERS ME A SUBSCRIPTION TO A NEWSPAPER THAT GIVES ME FULL ACCESS TO THEIR INTERNET SITE WITHOUT JUMPING THROUGH A BUNCH OF DIFFERENT HOOPS AND PROBABLY ALSO GIVES ME A DISCOUNT ON SOMETHING ELSE, EITHER THE COFFEE I DRINK OR THE ME A DISCOUNT ON SOMETHING ELSE, THE COFFEE I DRINK OR THE AIRLINE I FLY, GIVES ME SOMETHING FOR BEING A GOOD CUSTOMER. THIS IS REALLY ABOUT NEW BUSINESS MODELS AND HOW LONG IT'S GOING TO TAKE FOR THOSE NEW BUSINESS MODELS TO DEVELOP. AND WHAT ARE WE WILLING TO DO TO HELP IN THE MEANTIME, THE INDUSTRY AS THE NEW BUSINESS MODELS DEVELOP. NOW I FOR ONE AM WILLING TO DO SOMETHING, I CERTAINLY SUPPORT THE, THE CARRY-BACK PROVISIONS FOR NET OPERATING CLAUSE FOR A LONGER PERIOD OF TIME. I NEED TO KNOW A LITTLE MORE THE ANTITRUST PROVISIONS. TO UNDERSTAND THAT, EXACTLY. BUT I'M FOR SUPPORTING THAT. AND I GUESS I WANTED TO START WITH YOU, MRS. HUFFINGTON, WHAT DO YOU THINK ABOUT THE ANTITRUST PROVISIONS. AND WHETHER YOU WOULD SUPPORT THOSE AND WOULD BE FAVORABLE TOWARDS SOME OF THE TAX BREAKS THAT HAVE BEEN TALKED ABOUT AS WELL. |
| 01:37:05 | Huffington, Arianna S. | IT SEEMS TO ME THAT ANTITRUST PROVISIONS WOULD CREATE MORE ORGANIZATIONS THAT ARE TOO BIG TO FAIL. AND AGAIN, WE'VE SEEN HOW THAT HAS NOT WORKED IN OTHER AREAS OF OUR LIFE. SO LET'S NOT CREATE ANY MORE BEHEMOTHS THAT THEN WILL BECOME TOO BIG TO FAIL. I WOULD SUGGEST THAT IF WE ALLOW THE PROCESS OF INNOVATION TO UNFOLD, AND SUPPORT THE NONPROFIT INVESTIGATIVE EFFORTS AND ALSO SUPPORT THE HYBRIDS THAT WE'VE BEEN DISCUSSING HERE, WE WILL GET THERE. AND WE'LL GET THERE IN A WAY THAT HAS BEEN BETTER THAN WHAT WE'VE HAD. BECAUSE I DON'T THINK WE CAN UNDERESTIMATE THIS BIG STORY THAT WE HAVE MISSED. IF JOURNALISM IS WORKING OUT SO WELL, HOW COME SO MANY ECONOMIC JOURNALISTS ARE MISSED THE ECONOMIC MELTDOWN. THEY NEED TO SELL THEIR JOURNALISTIC CREDENTIALS FOR ACCESS. WE SEE IT HAPPENING EVERY DAY. INCLUDING NOW IN THE WAY THE BAILOUT AND THE BANKING CRISIS IS BEING COVERED. |
| 01:38:09 | Cantwell, Maria | I AGREE, THERE COULD BE MUCH MORE ATTENTION TO THAT. AS SOMEBODY WHO SUFFERED THROUGH THE ENRON CRISES AND NOW THE CREDIT DEFAULT SWAP CRISIS. MORE KNOWLEDGE FOR THE PUBLIC, MAYBE WOULD HAVE AVOIDED SOME OF THAT. BUT WHAT'S WRONG WITH MR. MARONY OR MR. SIMON GETTING THE ABILITY TO BECOME BETTER AGGREGATORS? AND IF THEY NEED THE ABILITY, TO TALK TO OTHER NEWS OPERATIONS, TO BECOME THOSE AGGREGATORS? WHAT'S WRONG WITH THAT? |
| 01:38:35 | Huffington, Arianna S. | WELL OF COURSE, THEY CAN ALREADY TALK TO EACH OTHER. WHAT WE'RE DISCUSSING IS WHETHER WE, YOU CAN GIVE THEM ANTITRUST PROTECTION, SO THAT THEY CAN ACTUALLY IMPLEMENT POLICIES THAT WOULD MAKE IT IMPOSSIBLE FOR OTHERS TO AGGREGATE CONTENT ONLINE. |
| 01:38:59 | Cantwell, Maria | MR. SIMON OR MR. MORONI, DO YOU WANT TO ADDRESS THAT? |
| 01:39:03 | >> | DOES CONTENT HAVE VALUE? EVERYTHING IN THE ONLINE DIGITAL WORLD HAS HAD TO FIGHT THIS BATTLE. PUBLISHERS, I'M AN AUTHOR, SO I KNOW, HAVE BEEN CONTENDING WITH GOOGLE AND OTHER AGGREGATORS, AS TO HOW MUCH OF THEIR WORK CAN BE ONLINE. I'M GETTING A SETTLEMENT FROM SOME LAWSUIT THAT WAS, THAT WAS OVER THIS VERY ISSUE. THE RECORDING INDUSTRY HAS HAD TO STRUGGLE WITH NAPSTER AND OTHER THINGS. ULTIMATELY, IT'S A LEAKY CUP. AND THAT'S INEVITABLE. BUT THERE HAS TO BE SOME KIND OF CUP. IF IT HAS NO VALUE. THEN EXPLAIN IT ME WHY THE LITTLE ROCK PAPER AND THE ALBUQUERQUE PAPER, WHICH ARE TWO OF THE FEW IN THIS COUNTRY, THAT DO NOT ALLOW THEIR WEBSITES TO BE PUBLIC WITHOUT SUBSCRIPTION. WHY THEIR CIRCULATION IS ACTUALLY UP AND THE REST OF THE NEWSPAPER WORLD IS DOWN. |
| 01:39:53 | Cantwell, Maria | CAN I -- I WANT TO GET TO THE SPECIFIC HERE, MAKE SURE I UNDERSTAND. BECAUSE I THINK WHAT MS. HUFFINGTON IS THAT FAIR LAWS COVER -- AND SHE'S ONLY USING CONTENT -- |
| 01:40:06 | >> | RIGHT. RIGHT NOW THE NEWSPAPERS HAVE -- AND I BELIEVE THEY BUTCHERED THIS GOING BACK TEN YEARS. RIGHT NOW, THEY HAVE SIGNED OFF ON FAIR USE AND THEY ARE HURLING THEIR STUFF OUT ONTO THE INTERNET FOR FREE. IT'S INSANE. AND HE THINK IT'S BEEN PROVEN INSANE AND IT'S HERALDED THIS INCREDIBLE IMPLOSION OF JOURNALISM. IF I THOUGHT THEY HAD THE CHNS TO DO IT OVER AGAIN, THEY WOULD LOOK HARD AT THAT DECISION AND THEY WOULD SAY, YOU KNOW WHAT, IT'S A LOT BETTER IF WE SAY, DO YOU WANT TO SUBSCRIBE TO THE "BALTIMORE SUN" AND GET IT TO YOUR HOME, IT'S $17 A MONTH. AND IF YOU WANT TO GET THE "BALTIMORE SUN" ONLINE, WE'LL ONLY CHARGE YOU $8 A MONTH, BUT WE GET THE $8. |
| 01:40:51 | Cantwell, Maria | I'M WILLING TO PAY $12 AND I WANT THE CHOICE OF PICKING THE NEWSPAPER UP ON ANY NEWSSTAND AND I WANT TO GET IT ONLINE WHEN I WANT IT. |
| 01:41:05 | >> | RIGHT NOW, THE HORSE HAS BEEN OUT OF THE BARN DOOR AND IT'S BEEN OUT OF THE BAR DOOR FOR TEN YEARS. AND PEOPLE SAY, YOU CAN'T GET BACK WHAT YOU GAVE AWAY FREE. NO AMERICAN IN THE FIRST 30 YEARS OF TELEVISION PAID ANYTHING FOR THEIR RABBIT EARS, NOW THEY PAY 60, $7 A MONTH FOR BETTER CONTENT. |
| 01:41:21 | Cantwell, Maria | THAT'S MY POINT FOR THE BUSINESS MODEL. TECHNOLOGY SHOWS US OVER AND OVER AGAIN. SOMETIMES IT TAKES 25 TO 30 YEARS BEFORE THE BUSINESS MODELS DEVELOP. |
| 01:41:30 | >> | IN THAT, LET ME JUST SAY, I'LL END THIS. IN THAT WINDOW, THE TALENT POOL AND THE INSTITUTIONAL MEMORY THAT WAS THE JOURNALISM WE SAW OVER THE LAST 50 YEARS, THE MODERN NEWSPAPER, IS LEECHING OUT. |
| 01:41:42 | Cantwell, Maria | WHICH IS WHY I'M SUPPORTIVE OF THINGS TO HELP IT IN THE MEANTIME. |
| 01:41:47 | >> | MR. SIMON IS EXACTLY RIGHT. THIS HORSE IS OUT OF THE BARN FOR TEN YEARS. TO TRY TO BRING IT BACK ONE WEBSITE AT A TIME, ONE DAILY NEWSPAPER WEBSITE AT A TIME, WILL NOT WORK. IF THE "DALLAS MORNING NEWS" PUT UP A PAID WALL OVER ITS CONTENT. PEOPLE WOULD GO TO THE "FORT WORTH STARTLE GRAM" TO GET THE INFORMATION ABOUT WHAT'S GOING ON THERE. AND IF THEY PUT UP A PAID WALL, THEY WOULD GO TO ANOTHER PAPER. IF WE COULD HAVE A LIMITED ANTITRUST EXEMPTION TO HAVE THE CONVERSATIONS AND SOME OF THOSE CONVERSATIONS ARE NOT PERMITTED WITHIN THE CONTEXT OF ANTITRUST. IF WE START TALKING ABOUT PRICING AND SO FORTH, WE'RE IN VIOLATION OF LAWS. WE NEED TO BE ABLE TO HAVE THAT CONSUMPTION WITH A LIMITED EXEMPTION AND BE ABLE TO TAKE ACTION AND DO IT AS QUICKLY AS POSSIBLE. FOR MANY OF MY COLLEAGUES HERE, TIME IS NOT ON OUR SIDE WITH THIS, FROM THE NEWSPAPER STANDPOINT. YES, THERE'S GOING TO BE A LONG EVOLUTION OF HOW CONTENT GETS CONSUME AND HOW JOURNALISM GETS DONE OVER TIME. BUT FOR THOSE NEWS ROOMS AND THOSE EMPLOYEES IN THOSE NEWSROOMS OF NEWSPAPERS, TIME IS NOT ON OUR SIDE. WE NEED HELP IN THIS WAY TODAY. |
| 01:43:00 | Cantwell, Maria | I KNOW MY TIME HAS EXPIRED, MR. CHAIRMAN, SO -- |
| 01:43:02 | Kerry, John F. | THAT'S ALL RIGHT. GO AHEAD. |
| 01:43:08 | Cantwell, Maria | WELL, I JUST -- SO YOU'RE SAYING ABOUT THE SPECIFIC INFORMATION, LIKE THIS EXAMPLE I JUST CAME UP WITH OF SAYING -- YOU KNOW, OFFERING TO YOUR READERSHIP THAT YOU COULD HAVE BOTH AN ONLINE AND PRINT. |
| 01:43:21 | >> | SURE, WE -- |
| 01:43:24 | Cantwell, Maria | YOU'RE SAYING RIGHT NOW THE COMPETITION -- |
| 01:43:26 | >> | BECAUSE SO MUCH OF OUR INFORMATION IS ALREADY OUT THERE FOR FREE. BECAUSE WE ARE PART OF THE A.P., FOR INSTANCE, BECAUSE THERE'S A COMPETITOR IN THE MARKETPLACE, BECAUSE THERE ARE OTHER PAPERS IN TEXAS COVERING THE STATE HOUSE, THERE'S A LOT OF PLACES TO GO FOR FREE. IF THE NEWSPAPER INDUSTRY ACTED IN CONCERT, THERE MIGHT BE AN OPPORTUNITY THEN FOR ALL OF US TO HAVE SORT OF OUR OWN INTRA-INDUSTRY LEVEL PLAYING FIELD. AND THEN BE ABLE TO GO TO EN MASSE, AS AN INDUSTRY, TO THE GOOGLES AND SO DPORTHFORTH. AND SAY, WE WANT TO BE PAID FOR CONSENT TO TAKE OUR INFORMATION. NOT UNLIKE WHAT THE BROADCAST TELEVISION STATIONS DID WITH CABLE TO HAVE LEAD TRANSMISSION CONSENT. IF WE DO THAT AS AN INDUSTRY, WE HAVE SOME CLOUT, WE HAVE SOME LEVERAGE. IF WE DO IT A NEWSPAPER AT A TIME IT JUST WON'T WORK. |
| 01:44:16 | Cantwell, Maria | I'M NOT SURE, I THINK BRAND COUNTS FOR A LOT. I THINK IT'S SOMETHING YOU HAVE. I THINK IT'S SOMETHING MS. HUFFINGTON IS BUILDING. I THINK IT'S ABOUT AGAIN, LEAVING AN AMOUNT OF TIME. PERHAPS WE CAN GO TO THE -- |
| 01:44:29 | Kerry, John F. | WE'LL COME BACK TO IT I WANT TO CONTINUE THIS CONVERSATION BECAUSE IT'S VERY IMPORTANT. ONE OF THE OBVIOUS QUESTIONS IS, HOW DO YOU, IF YOU DID THAT, PREVENT AN ABUSE OF THAT CONGLOMERATED CLOUT, SO THAT YOU DON'T SQUEEZE OUT WHAT MASSIVE NUMBS OF PEOPLE HAVE COME TO BELIEVE IS ALSO THEIR RIGHT, WHICH IS READY ACCESS TO WHAT THEY WANT, WHERE THEY WANT IT AND HOW THEY GET IT. IT COULD BE A VERY ANACHRONISTIC CONSEQUENCE, WHICH IS TO SORT OF GO BACKWARDS AND CREATE A STATUS QUO THAT ACTUALLY PREVENTS OUR TECHNOLOGIES AND THE OPEN ARCHITECTURE AND ALL THE VIRTUES OF THIS FROM TAKING OFF. WE NEED TO TALK ABOUT THAT. LET ME RECOGNIZE SENATOR PRYOR FIRST. |
| 01:45:10 | Pryor, Mark | THANK YOU, MR. CHAIRMAN. LET ME FOLLOW UP, IF I MAY, WITH SENATOR CANTWELL AND THE CHAIRMAN'S QUESTIONS AND COMMENTS, WITH YOU, MR. MORONI. IF WE'RE TALKING ABOUT AN ANTITRUST EXEMPTION, I THINK YOU SAID IT SHOULD BE LIMITED. DO YOU THINK IT SHOULD BE LIMITED IN SCOPE AND DURATION? |
| 01:45:27 | >> | I THINK BOTH. |
| 01:45:29 | Pryor, Mark | AND TELL ME THE LIMITS ON THE SCOPE, IF YOU CAN ARTICULATE THOSE TODAY, THAT WOULD BE GREAT. |
| 01:45:34 | >> | WELL, I WISH I COULD TELL YOU THAT I HAVE HAD ENOUGH TIME TO THINK THIS TRUE THROUGH AND HAD A PERFECT SOLUTION, BUT I DON'T. I JUST KNOW THAT IF WE COULD GET TOGETHER AS AN INDUSTRY AND HAVE THIS CONVERSATION. AND IF THERE WERE SOME LIMITS AROUND WHAT THAT CONVERSATION OR WHERE IT COULD GO OR WHAT ACTUAL BUSINESS MODEL WE COULD COME UP WITH, IT WOULD BE BETTER THAN WHAT WE HAVE TODAY. AND SOMETHING WILL DEFINITELY IN THIS CASE BE BETTER THAN NOTHING WE HAVE TODAY. SO I DON'T HAVE AN ANSWER FOR YOU, BUT I'M CONFIDENT THERE IS ONE, IF WE WERE GIVEN THE OPPORTUNITY TO WORK TOGETHER. |
| 01:46:06 | Pryor, Mark | MR. COLE, DO YOU HAVE ANY COMMENTS ON THAT, ON AN ANTITRUST EXEMPTION? |
| 01:46:13 | >> | I DON'T REALLY, SENATOR, THANK YOU FOR ASKING. |
| 01:46:17 | Pryor, Mark | LET ME ASK IF I CAN, WITH YOU, MR. MORONI, AGAIN, STAYING WITH THE ISSUE OF ANTITRUST AND THE DEPARTMENT OF JUSTICE AND YOU KNOW, THAT LEGAL REALM THAT YOU HAVE TO DEAL WITH, AS I UNDERSTAND IT, ONE OF THE QUESTIONS THAT THE JOURNALISTS ARE ASKING ABOUT THE INDUSTRY, IS SHOULD WE CHANGE THE DEFINITION, HAVE A MORE MODERN-DAY DEFINITION ABOUT THE ADVERTISING MARKET? IN OTHER WORDS, MAYBE BACK IN THE OLD DAYS YOUR NEWSPAPER BASICALLY JUST COMPETED AGAINST OTHER NEWSPAPERS IN ADVERTISING. BUT IN TODAY'S WORLD, YOU DO HAVE A LOT OF OTHER ENTITIES OUT THERE ON THE INTERNET AND OTHERWISE, THAT YOU ARE COMPETING WITH. EVEN MAYBE RADIO AND TELEVISION. WE COULD TALK ABOUT THAT AS WELL. BUT TELL ME ABOUT, IF YOU THINK WE SHOULD HAVE A NEW DEFINITION FOR YOU KNOW, THE ADVERTISING MARKET. |
| 01:47:18 | >> | I DO BELIEVE THERE SHOULD BE ONE TODAY, NEWSPAPERS ARE COMPETING WITH ALL KINDS OF OTHER MEDIA IN LOCAL MARKET FOR IMPRESSION-BASED ADVERTISING. THERE'S IMPRESSION-BASED ADVERTISING FOR TELEVISION. THERE'S IMPRESSION-BASED ADVERTISING WITH OUTDOOR BOARDS. |
| 01:47:35 | Pryor, Mark | HA DO YOU MEAN BY THAT? |
| 01:47:36 | >> | SOMEBODY IS PAYING ME A CERTAIN AMOUNT OF MONEY IN ORDER TO PUT SOMEBODY'S EYEBALLS IN FRONT OF AN AD THAT APPEARS IN SOME KIND OF MEDIA. COSTS PER THOUSANDS, COST PER POINTS, IT'S ALL THE SAME IDEA. FOR THE NUMBER OF PEOPLE WATCHING THAT COMMERCIAL OR THAT AD, THERE'S A FORMULA FOR PAYING THEM. AND THAT'S THE BASIS TODAY OF MOST OF THE ADVERTISING REVENUE IN TRADITIONAL MEDIA. IT'S IMPRESSION-BASED. AND THAT IS THE MODEL THAT WE INITIALLY TOOK TO THE INTERNET, TO BE PAID ON A CPM, COST PER THOUSAND, IMPRESSIONS BASIS. AND THEN WHEN YOU TAKE LOCAL MEDIA AND YOU PUT THEM ONLINE, THE TECHNOLOGICAL DISTINCTIONS, THE TECHNOLOGY A THAT AT ONE TIME DISTINGUISHED TELEVISION FROM NEWSPAPERS, FROM RADIO STATION, HAS DISAPPEARED. WE'RE ALL PLAYING WITH EXACTLY THE SAME TECHNOLOGY. AND SO NOW THAT MARKETPLACE IS NOT ONLY NOT JUST NEWSPAPER AGAINST NEWSPAPER, IT'S NEWSPAPER AGAINST ALL OTHER LOCAL MEDIA. AND THEN 40% OF THE TRAFFIC TO DALLASNEWS.COM COMES FROM OUTSIDE THE 26-COUNTY DALLAS-FORT WORTH DMA. SO WE ARE HAVING AUDIENCES COME IN FROM NOT ONLY ALL OVER THE UNITED STATES, BUT ALL OVER THE WORLD. SO THEYED THAT THERE'S A DEFINED MARKET FOR NEWSPAPERS, THAT IS REALLY GEOGRAPHIC AND NEWSPAPER AGAINST NEWSPAPER -- I JUST DON'T BELIEVE HOLDS IN THE WORLD WE LIVE IN TODAY. |
| 01:48:59 | Pryor, Mark | LET ME ASK YOU YOU THIS, IF YOU KNOW, IN TERMS OF CHANGING THAT DEFINITION, DOES THAT REQUIRE STATUTE? OR WHO DOES THAT? |
| 01:49:12 | >> | I GUESS TODAY, THE S.E.C. HAS DEFINED IN SOME WAYS, THE DEPARTMENT OF JUSTICE, NUMBER ONE. AND THEN THERE'S OF COURSE THE S.E.C., IS CROSS-OWNERSHIP. WHICH I THINK COMES OUT OF THE |
| 01:49:24 | Pryor, Mark | OKAY. |
| 01:49:26 | Pryor, Mark | MR. CHAIRMAN, THAT'S REALLY ALL I HAVE. THANK YOU. |
| 01:49:29 | Kerry, John F. | THANK YOU, VERY MUCH, SENATOR. |
| 01:49:34 | Kerry, John F. | SENATOR KLOBICHAR. |
| 01:49:37 | Klobuchar, Amy | THANK YOU VERY MUCH. IT'S TRUE TO THE PANELISTS THAT MY DAD, WHILE HE FIRST WAS A REPORTER AND THEN HE WAS A COLUMNIST, I NOW AT AGE 82, HE'S A BLOGGER. I'VE KIND OF SEEN THE WHOLE WORLD AND THE DIFFERENCES IN THE WORLD. HE DOESN'T GET PAID AS A BLOGGER. AND I WILL SAY HE CAME UP IN SORT OF THE GOLDEN TIMES OF JOURNALISM. HE ACTUALLY WAS WRITING FOR THE A.P. AND MINNESOTA WAS STILL OUT ON THE KENNEDY PRESIDENTIAL RACE. AND HE WROTE THE STORY. BECAUSE HE KNEW THAT THE IRON RANGE OF MINNESOTA WOULD GO FOR KENNEDY. AND HE CALLED IT FOR KENNEDY. AND KENNEDY WON. AND HE CAME UP AT A DIFFERENT TIME. SO GROWING UP, I KNEW THAT HE HAD A LOT OF THE EXCITING THINGS HE DID, FROM INTERVIEWING RONALD REAGAN TO GINGER RODGERS TO MIKE DITKA. AND I SAW THAT HE WAS A WITNESS TO HISTORY AND HE DID A GOOD JOB OF IT. AND I ALSO SEE THAT WE STILL NEED THAT ROLE IN OUR SOCIETY. AND I'M STILL, DESPITE I DO READ YOUR BLOG, MS. HUFFINGTON, I READ IT IN FACT TWO DAYS AGO. BUT I STILL DON'T SEE, MAYBE YOU WOULD SAY WE'RE IN TRANSITION, MS. MEYER. BUT COULD THINK WE'RE GOING TO GET IT QUITE YET FROM SOME OF THE BLOGS. THAT'S WHY I'M VERY CONCERNED ABOUT WHAT'S GOING ON IN TERMS OF SOCIETY. I KNOW THAT SENATOR MCCASKILL COVERED THE ISSUE I WAS FOCUSED ON, THE LOCAL COVERAGE. AND HOW IMPORTANT IT IS, THE LOCAL COURTHOUSES, THE LOCAL MAYORS IN MAKING SURE THAT WE HAVE WATCHDOGS OVER THE ACTIVITIES OF LOCAL GOVERNMENT. AND I KNOW WE CAN SET UP THESE NONPROFITS AND DO THESE THINGS. BUT I'M AFRAID WE'RE GOING TO LOSE THE WATCHDOG AND THAT CHECK. IF WE DON'T FIGURE THIS OUT. AND SO I WANTED TO ASK SOME QUESTIONS JUST TO FOLLOW UP ON WHAT'S GOING ON. WE KNOW WE'RE HAVING AN ADVERTISING DECLINE, IS THAT CORRECT, MR. MORONI? |
| 01:51:32 | >> | THAT'S CORRECT. |
| 01:51:34 | Klobuchar, Amy | OF GREAT PROPORTIONS, AND DO YOU SEE ANY HELP OF THAT WITH THE ECONOMY IMPROVING FOR OUR NEWSPAPERS? |
| 01:51:40 | >> | THERE IS A CYCLICAL DIMENSIONOR TO IT. BUT THERE IS ALSO A VERY SECULAR DIMENSION TO IT. SO AS THE ECONOMY IMPROVES, WHICH IT WILL, THERE WILL BE SOME REBOUNDING BACK FOR THAT CYCLICAL PART TO THE DOWNTURN. BUT THE SECULAR ISSUES, PARTICULARLY IN THE CLASSIFIED ADVERTISING SPACE AREN'T GOING TO TURN AROUND. THEY ARE SECULAR AND PERMANENT. |
| 01:52:01 | Klobuchar, Amy | AND THEN MANY OF THE NEWSPAPERS ARE IN BANKRUPTCY, THE "STAR TRIBUNE" IN MINNESOTA IS IN BANKRUPTCY. EVEN THOUGH IT'S I THINK THE TENTH BIGGEST NEWSPAPER FOR DAILY CIRCULATION. SIMILAR TO WHAT YOU'VE BEEN TALKING ABOUT, THE READERS ARE THERE. DO YOU THINK THERE'S ANYTHING THAT CAN BE DONE FOR BANKRUPTCY PROCEEDINGS? ANY THOUGHTS ON THAT, HOW TO EASE IT? |
| 01:52:24 | >> | I WOULD SAY THERE ARE SOME NEWSPAPERS WHOSE PARENT COMPANIES ARE IN BANKRUPTCY. BUT THOSE NEWSPAPERS THEMSELVES ARE STILL AS OPERATING COMPANIES, PROFITABLE. AND IT IS THE AMOUNT OF DEBT THAT WAS TAKEN ON. THE INTEREST THAT HAS TO BE PAID THAT HAS FORCED THESE COMPANIES INTO BANKRUPTCY. AND SO IF THE CREDITORS, WHICH NOT THE PURVIEW OF CONGRESS, BUT IF THE CREDITORS OF THESE COMPANIES WOULD BE WILLING TO REDUCE THE DEBT, TAKE A HAIRCUT ON THE DEBT THAT THEY HAVE, THE COMPANIES COULD COME OUT AND CONTINUE TO OPERATE, AT LEAST FOR SOME PERIOD OF TIME, PROFITABLY, BUT AGAIN, IF ADVERTISING REVENUES WERE DOWN 25, 30% THIS YEAR, EVEN THOSE COMPANIES THAT WERE OPERATING PROFITABLY IN 2008, MAY FIND IT VERY DIFFICULT TO BE OPERATING PROFITABLY IN '09. |
| 01:53:08 | Kerry, John F. | I WON'T TAKE THIS OUT OF YOUR TIME, BUT I JUST WANT TO -- WHERE WAS THE DEBT TAKEN ON FOR? DOES THAT VARY, ACCORDING TO -- |
| 01:53:14 | >> | EVERY DIFFERENT COMPANY HAS A DIFFERENT REASON. SOME WERE FOR CONSOLIDATION PURPOSES. OTHERS WOULD VARY BY COMPANY. |
| 01:53:26 | Kerry, John F. | ANY SENSE OF HOW MUCH WAS TAKEN ON FOR BAD JUDGMENTS, AS MR. SIMON REFERRED TO EARLIER? |
| 01:53:32 | >> | WELL, SENATOR, I DON'T. I DON'T, I CAN'T, I CAN'T SPEAK TO THAT. |
| 01:53:36 | Kerry, John F. | BUT YOU CLAIM TO BE IMMUNE FROM THAT? |
| 01:53:39 | >> | WELL, WE HAVE VERY, VERY LITTLE DEBT AT THE COMPANY THAT I WORK FOR. AND I'M GRATEFUL FOR THAT. BECAUSE IT MAKES IT EASIER FOR US TO WEATHER THIS STORM. BUT AS WE REPORTED, FIRST QUARTER EARNINGS FOR OUR COMPANY, WHICH HAS THREE NEWSPAPERS, NOT FAR FROM YOU, THE "PROVIDENCE JOURNAL" AND THE "PRESS RIVERSIDE." WE LOST MONEY, INCLUDING ALL EXPENSES, THE OPERATION, THE EBITDA WAS AT A MARGIN OF 1%, IN THE FISHLGT, SO JUST VIRTUALLY BREAK-EVEN. |
| 01:54:11 | Klobuchar, Amy | THANK YOU, THAT ALMOST WAS AS GOOD, SENATOR KERRY, AS THE QUESTION I DECIDED NOT TO ASK MS. HUFFINGTON THAT SOMEONE HAD GAVE ME, OF WHAT PERCENTAGE OF YOUR BLOG IS OPINION, AND WHAT PERCENTAGE IS FACTUAL. I THINK THOSE ARE TOUGH QUESTIONS. BUT MAYBE YOU WOULD WANT TO GET AT THAT. |
| 01:54:25 | Huffington, Arianna S. | I WOULD LOVE TO ANSWER IT. BECAUSE FIRST OF ALL, OPINION IS TO BE FACT-BASED. SO AT THE "HUFFINGTON POST" WE PUT A TREMENDOUS PREMIUM ON THAT. OUR RULES ARE THAT IF THERE'S ANY MISTAKE THAT A BLOGGER MAKES, THEY HAVE 24 HOURS IN WHICH TO WITHDRAW IT OR CORRECT IT OR THEIR PASSWORD IS REMOVED. WE ALSO HAVE HIRED 30 COMMENT MODERATORS WHO ARE WORKING AROUND THE CLOCK, TO MAKE SURE THAT WE MAINTAIN A CIVIL ATMOSPHERE ON THE SIDE. SO THAT WE DON'T HAVE ATTACKS AND TRIALS. AND LAST MONTH ALOBE WE HAD A MILLION COMMENTS. SO THERE'S A LOT WE'RE DOING TO ADOPT WHAT I SAID IN MY TESTIMONY, ARE THE BEST PARTS OF TRADITIONAL JOURNALISM. ACCURACY, FACT-CHECKING, FAIRNESS AND MAKING SURE THAT THERE IS A CIVIL ENVIRONMENT IN THE DEBATE THAT ENSUES. |
| 01:55:21 | Klobuchar, Amy | I STILL THINK AND I THINK MR. BARGAIN, DID I SAY YOUR NAME RIGHT? MAYBE YOU CAN GET AT THIS WITH SOME OF THE WORK. I KNOW YOU'VE HELPED WITH MIN POST, I THINK WE HAVE 1300 SUBSCRIBERS, AN INTERNET-BASED NEWS IN OUR STATE. BUT I JUST STILL DON'T UNDERSTAND HOW THAT IS ON A NATIONAL LEVEL, GOING TO GET TO THE KIND OF INVESTIGATIVE REPORTING. WHEN MY DAD WENT UNDERCOVER AS A PRISON INMATE FOR A WEEK. OR WHEN, WHEN WE HAVE THESE INTRICATE ISSUES IN OUR POLICE DEPARTMENTS, THAT PEOPLE WANT TO REPORT ON. I JUST DON'T KNOW HOW THAT MODEL CAN BE BROUGHT DOWN CITY BY CITY. AND IF I COULD ASK YOU THAT, PLEASE. |
| 01:56:01 | >> | WELL, I, I SUPPOSE IF I -- THE EXACT ANSWER TO THAT, I'D BE HOPE CLIPPING COUPONS. SO I, I REALLY DON'T. BUT IT SEEMS TO ME THAT "MIN POST" IS VERY SMALL COMPARED TO THE "STAR TRIBUNE" AT THIS POINT. BUT IF YOU LOOK AT THE TRENDS AND IF YOU LOOK AT. |
| 01:56:26 | >> | LOOK AT THE MEDIA USAGE AND THE INCREASING USE OF MEDIA, THE YOUNGER THE PERSON, THE HIGHER THE LIKELIHOOD IS OF USING DIGITAL MOBILE MEDIA. I THINK YOU'RE KIND OF WHISTLING PAST THE GRAVEYARD TO EXPECT THAT THAT'S NOT GOING TO BE THE WAY OF THE FUTURE. I THINK THE FOCUS OUGHT TO BE ON INSURING UNIVERSAL ACCESS. I THINK THE FOCUS OUGHT TO BE ON SPERTHING WITH THINGS, WITH ORGANIZATIONS LIKE "MIN POST." SO THAT YOU, A YEAR, FIVE YEARS, TEN YEARS FROM NOW, THOSE ORGANIZATIONS WILL HAVE DEVELOPED THE EXPERTISE TO DO THE KIND OF REPORTING THAT YOU STILL WANT. |
| 01:57:08 | Klobuchar, Amy | SENATOR KERRY, I'M GOING TO COME BACK. THIS IS WHAT HAPPENS WHEN YOU'RE THE SINGLE SENATOR. YOU'RE LITERALLY DOING TWO THINGS ALL THE TIME. |
| 01:57:19 | Kerry, John F. | NEVER MISSES AN OPPORTUNITY TO SAY WE NEED AL FRANKEN HERE. LET ME, IF I CAN, FIRST OF ALL, ALL HAVE BEEN TERRIFIC. BUT I WANT TO GET YOU TO DIG IN A LITTLE MORE, IF YOU CAN. I ENJOY DOING THESE AS ROUNDTABLES TO BE HONEST WITH YOU. AND I'VE DONE THAT A LOT ON THE FOREIGN RELATIONS COMMITTEE. I'D LOVE YOU TO THINK IF YOU CAN INTERACT A LITTLE BIT AND ASK EACH OTHER A QUESTION AND SORT OF REBUTT. I THINK IT WOULD ENGAGE US A LITTLE BIT IN SOME OF THE ISSUES THAT ARE ON YOUR MIND. I'M CONFIDENT WHEN YOU GET INTO A PRIVATE CONVERSATION OUTSIDE OF HERE, YOU'LL BE A LITTLE ADAMANT ABOUT YOUR SIDE, WHAT YOU NEED, WHAT'S MISSING. AND I'D LIKE TO HAVE A LITTLE OF THAT TAKE PLACE. TO THAT END, LET ME SORT OF ASK SOMETHING THAT I THINK IS AT THE CENTER OF THIS. |
| 01:58:14 | Kerry, John F. | GOOGLE'S RELATIONSHIP WITH THE CONTENT PROVIDERS, SORT OF, WHAT I'M HEAR INGING IS THAT THIS IS EXCITING, THE NEW FRONTIER OF JOURNALISM. AND I THINK IT IS. IT'S AN ENORMOUS TRANSFORMATION TAKING PLACE. AND ACTUALLY, YOU'RE CORRECT. I WANTED TO SIGNAL THAT WHEN YOU SAY IT'S EARLY, OBVIOUSLY IT'S NOT FOR THOSE FEELING THE PRESSURE RIGHT NOW. BUT IN TERMS OF THE EVOLUTION OF WHAT WE'RE GOING THROUGH RIGHT NOW, HE UNDERSTAND THAT. I DON'T THINK ANY OF US CAN SIT HERE TODAY AND ABSOLUTELY PREDICT WHAT SHAPE THIS IS GOING TO TAKE COMPLETELY. BUT PART OF THAT IS GOING TO DEPEND, FOLKS, ON HOW THIS INTELLECTUAL PROPERTY RIGHT IS EITHER RESPECTED OR NOT. AND HOW WE SORT OF DO WIND UP FAIRLY SHARING THE COST OF PROVIDING THE NEWS CONTENT THAT PEOPLE ARE GETTING. LET ME GIVE YOU AN EXAMPLE. IT'S MY UNDERSTAND INGING THAT YOU AS AN AGGREGATORS, YOU PULL TOGETHER, A SENATE NEWSPAPER HEARING. I THINK SOME 134 DIFFERENT ARTICLES CAME UP. IF WE CHOSE TO GO TO THOSE ARTICLES, EACH HIT THAT WE GO TO, YOU'RE GOING TO GET SOMETHING LIKE 40 CENTS, AS I UNDERSTAND THAT. YOU CAN CORRECT ME IF I'M WRONG. OR YOU GET SOMETHING OUT OF THAT. BUT FOR THE SINGLE HIT TO THE ARTICLE THAT WE GO TO, THE PROVIDER OF THAT ARTICLE, THE PEOPLE WHO PUT TOGETHER THE INTELLECTUAL CONTENT OF THAT, WIND UP GETTING ONLY FOR THE ONE TIME THAT IT WENT TO THEIR PARTICULAR ARTICLE. SO YOU MIGHT GET TEN TO THEIR ONE. OR SOMETHING THAT THEY HAVE PRODUCED, IS THAT ACCURATE, IS THAT FAIR? |
| 02:00:06 | Mayer, Marissa | THAT'S NOT QUITE RIGHT. |
| 02:00:07 | Kerry, John F. | SO HELP ME. |
| 02:00:09 | Mayer, Marissa | DISENTANGLING A FEW OF THE DIFFERENT PRODUCTS THAT ARE IN PLAY. THERE'S GOOGLE WEB SEARCH, OUR GENERAL SEARCH, WHERE YOU MIGHT GET BLOGS, WEB PAGES, NEWS STORIES, VIDEOS. THERE'S GOOGLE NEWS WHERE PEOPLE GO TO SEARCH FOR AND VIEW NEWS STORIES. AND THEN THERE'S THE ACTUAL PUBLISHERS' SITE. WHERE GOOGLE ADS CAN RUN OR COMPETITIVE ALTERNATIVES THERE. AND THE PURPOSES THAT USERS HAVE WHEN THEY GO TO THOSE SITES IS DIFFERENT. SO FOR EXAMPLE, SOMEONE SAY TYPING IN PORTUGUESE WATER DOG ON GOOGLE'S MAIN SEARCH MAY WANT TO SEE A VIDEO OF IT. THEY MAY WANT TO BUY ONE, OR THEY MAY WANT TO READ THE NEWS. ON GOOGLE NEWS, WE KNOW THEY WANT TO GO AND READ THE NEWS. IT'S POSSIBLE AFTER READING SEVERAL STORIES, IF THEY KEEP CLICKING AND COMING BACK, THEY MAY CLICK ON AN AD FOR THE PORTUGUESE WATER DOG. BUT THE SAME ARGUMENT CAN BE MADE ON THE PUBLISHER'S SITE, WHERE YOU SEE THE FULL STORY, THE FULL PICTURE, THAT THE ADS TEND TO PERFORM BETTER THERE. |
| 02:01:10 | Kerry, John F. | HELP US TO UNDERSTAND WHO GETS PAID WHERE. |
| 02:01:14 | Mayer, Marissa | SURE. ON THE PUBLISHER'S SIDE, THE PUBLISHER GETS PAID. AND ON OUR SITE, IF WE CLICK ON SAY AN AD ON NEWS OR AN AD ON GOOGLE WEB SEARCH, WE GET PAID THERE ARE MANY, THERE ARE MANY SEARCH HAS THAT ARE DONE WHERE THERE'S NOT A CLICK ON AN ADVERTISEMENT, BECAUSE THE USER INTENT IS DIFFERENT. |
| 02:01:35 | Kerry, John F. | IS IT ONLY ON THE CLICK ON THE AD THAT THERE'S ANY KIND OF |
| 02:01:39 | Mayer, Marissa | THAT'S RIGHT. |
| 02:01:42 | Kerry, John F. | SO IF YOU SIMPLY GO THROUGH AS THE AGGREGATOR, THEY HAVE SIMPLY BEEN DIRECTED TO THE SITE OF THE HOST? |
| 02:01:48 | Mayer, Marissa | THAT'S RIGHT. |
| 02:01:49 | Kerry, John F. | AND IN EFFECT THEY'RE THEN USING THE HOST CONTENT. NOW WHAT WOULD HAPPEN TO YOU IF THERE WAS THIS LIMITED, ANTITRUST EXEMPTION, LIMITED IN TIME, SCOPE, DURATION, BUT WOULD ALLOW THEM TO GET TO THE TABLE TO HAVE SOME SORT OF NEGOTIATION TO SEE IF YOU COULD GET THE HORSE INTO A BARN WITHOUT BECOMING RESTRICTIVE. AND ARINNA, I'M PARTICULARLY INTERESTED IN YOUR REACTION TO THIS. I DON'T WANT TO SEE US DO ANYTHING THAT HURTS THE OPENNESS AND INNOVATION AND SORT OF CREATIVITY WHICH HAS TAKEN PLACE. AND I THINK IN MANY WAYS PEOPLE HAVE GREATER ACCESS. BECAUSE THEY CAN GO ANYWHERE AND CHOOSE AND THERE'S A FREEDOM IN THAT AND SO FORTH. WE CAN MAKE A LOT OF ARGUMENTS. BUT THE FOLKS PUTTING TOGETHER MR. SIMON IS CORRECT AND MR. MORONI IS CORRECT. THE FOLKS WHO GOT THIS HUGE NEWS ROOM INVESTMENT WHICH PROVIDES A LOT OF LOCAL ACCOUNTABILITY, WHICH WE DON'T WANT TO LOSE. GETS, IS BEING DRIVEN OUT OF IT BECAUSE THEY'RE NOT BEING, THEY'RE LOSING THEIR REVENUE BASE. FROM FORCES OUT OF THEIR CONTROL. HELP US WITH THAT. |
| 02:03:03 | Huffington, Arianna S. | I WOULD FIRST OF ALL SAY THEY ARE NOT LOSING THEIR REVENUE BASE BECAUSE OF THE INTERNET. THEY'RE LOSING THEIR REVENUE BASE BECAUSE OF CRAIGSLIST, BECAUSE ADVERTISING IS DOWN BECAUSE OF THE ECONOMIC CRISIS. AND BECAUSE OF THE CHANGES IN CONSUMER HABITS. THEY'RE NOT LOSING IT BECAUSE OF OTHER AGGREGATORS. IN FACT WE'RE GETTING HUNDREDS OF REQUESTS EVERY WEEK FROM NEWSPAPERS TO MAKE TO THEM. AND I'M SURE THEY LOVE BEING LINKED TO GOOGLE BECAUSE IT DRIVES THEIR TRAFFIC. |
| 02:03:35 | Kerry, John F. | IS THERE A SYNERGY THAT CAN BE FOUND BETWEEN YOU IN THIS? I THINK THEY ARE LOSING IT BECAUSE OF ANY NUMBER OF THINGS. EBAY, YELLOW NET YELLOW PAGES, WAYS IN WHICH PEOPLE ARE LOSING THEM. BUT MOSTLY BECAUSE THERE ARE QUICKER, EASIER, SIMPLER WAYS THAT PEOPLE ARE CHOOSING TO GET INFORMATION. AND WE DON'T WANT TO DO ANYTHING TO TAMPEN THAT DOWN, THAT'S HEALTHY. BUT WITH RESPECT TO THEIR CONTENT, YOU'RE DEPENDANT IN FACT ON SOME OF THEIR CONTENT. WON'T YOU DO BETTER IN THE LONG RUN, IF YOU HELPED KEEP THAT CONTENT CAPACITY ALIVE? |
| 02:04:08 | Huffington, Arianna S. | ABSOLUTELY. WE WANT TO SEE THE CONTENT EXPANDED IN MULTIPLE WAYS. WE DON'T WANT JUST TO SURVIVE. WE WANT TO EXPAND. IT IS MY UNDERSTANDING THAT RUPERT MURDOCH IS ALREADY TAKING THE LEAD IN HAVING A LOT OF THIS CONVERSATIONS AMONG DIFFERENT CONTENT PROVIDERS, ABOUT HOW TO BE ABLE TO MAKE AGREEMENTS OF THE KIND THAT MR. MORONI WAS TALKING ABOUT. NOBODY AT THE MOMENT IS PROHIBITING CONTENT PROVIDERS TO HAVE THESE CONVERSATIONS, WHICH IS ONGOING. |
| 02:04:39 | Kerry, John F. | WOULD YOU FIND IT GOOGLE OR HUFFINGTON POST OR ANYBODY ELSE, WOULD YOU FIND IT ONEROUS TO BE IN A POSITION WHERE YOU HAVE TO SIT DOWN WITH THEM AS AN AGGREGATE, AND NEGOTIATE OUT SOMETHING WHERE THEY'RE MORE ABLE TO PROVIDE THIS CONTENT? ON A SUSTAINED BASIS? OR WOULD YOU FIND THAT THAT WOULD BE AN INTERRUPTION IN THE MARKETPLACE THAT SORT OF DISRUPTS WHERE THIS OUGHT TO GO ON ITS OWN? |
| 02:05:06 | Mayer, Marissa | WE THINK THAT JOURNALISM IS VERY IMPORTANT AND WE NEED TO FIND BUSINESS MODELS THAT CAN SUSTAIN IT. SO WE WOULD WELCOME SOMETHING THAT WOULD MAKE THE BUSINESS MODEL MORROW BUST. THE REAL ISSUE I SEE IN THE PRINT NEWSPAPERS, THE ADVERTISEMENTS WEREN'T INTRINSIC TO THE PRODUCT. THE CLASSIFIED COULD BE SEGMENTED OFF. AND WHEN YOU LOOK ONLINE, ADVERTISERS TEND TO BE MUCH MORE INTEGRATED AND TARGETED AND MEASURABLE. AND THAT HELPS TO INCREASE THE VALUE OF THOSE ADVERTISEMENTS, PEOPLE CAN TELL EXACTLY WHAT THEY'RE GETTING FROM IT. I THINK THE OTHER PIECE THAT'S BEEN MISSING FROM THIS DISCUSSION IS AROUND THEIR USE. ALL NEWSPAPERS, ALL PUBLISHERS RIGHT NOW CAN OPT OUT OF AGGREGATION. THERE ARE STANDARD INDUSTRY PRACTICES, FILES THAT YOU CAN PUT IN PLACE TO SAY, PLEASE DON'T COLLECT MY CONTENT. IT'S TRUE THAT MOST NEWSPAPERS IN FACT PREFER THE DISTRIBUTION, THE DISTRIBUTION IS BETTER FOR THEM AND BETTER FOR THE USERS. I WOULD ARGUE IT'S MUCH MORE POWERFUL TO READ AN ARTICLE FROM A PAPER IN TEXAS IN THE ACTUAL COMMUNITY WHERE SOMEONE DIED FROM THE SWINE FLU, THAN READING ONE OF THE DUPLICATE ARTICLES DOWN THE LINE. THE AMAZING DISTRIBUTION THAT COMES THROUGH THE INTERNET AND THROUGH THE INCLUSION OF AGGREGATORS IS VERY POWERFUL. SO I THINK WE NEED TO FIND WAYS TO SUSTAIN THAT AS WELL. |
| 02:06:28 | >> | THERE'S AN EQUIVOCATION HERE IN DETERMINES OF WHAT THE EXISTING REVENUE STREAM IS FOR NEWSPAPERS AND WHAT THE POTENTIAL REVENUE STREAM IS. AND THAT'S THE PROBLEM IN SOME OF THESE DISCUSSIONS. YES, ADVERTISING IS GOING DOWN. AND IT MAY NOT COME BACK TO THE DEGREE IT EVER DID. CRAIGSLIST CERTAINLY SEEMS TO HAVE A PERMANENCE THAT'S DRAMATIC AND FUNDAMENTAL. BUT WHAT WAS THE PROBLEM FOR NEWSPAPERS PERCEIVING THE INTERNET, AT THE KEY MOMENT, WAS THAT IF THERE'S IN THE CULTURE OF NEWSPAPERS, CIRCULATION FOR THE ENTIRE MODERN RUN OF THE NEWSPAPER, IT COSTS MONEY. IT COST MORE THAN THEY GOT FROM YOUR CIRCULATION DOLLARS TO GET THE PAPER TO YOUR DOORSTEP. SO WITH EVERY NEW CIRCULATION, THEY WERE MAKING NO MONEY. ALL THE REVENUE STREAM WAS IN ADVERTISING. AND THAT MIGHT HAVE STAYED THE SAME, AND THAT MIGHT HAVE MADE NEWSPAPERS INDIFFERENT TO THE IDEA OF CONTENT AND PRICING CONTENT AND RECEIVING REMUNERATION FOR CONTENT. EXCEPT THAT WE'VE ENTERED THIS BRAVE NEW WORLD. AND NOW THE ONLY CHANCE, I WOULD ARGUE, THAT NEWSPAPERS HAVE IS TO RETAIN THEIR CONTENT. I WILL GIVE YOU WHAT I IMAGINE TO BE THE ONLY VIABLE SOLUTION FOR OUR REGIONAL NEWS PRODUCT IN MY TOWN. AND WHEN I SAY NEWSPAPER, BY THE WAY, I MEAN ONLINE. I DON'T THINK WE'RE GOING TO BE CUTTING DOWN TREES VERY MUCH LONGER. BUT IF THE "BALTIMORE SUN" WERE ABLE TO CHARGE $10 A MONTH AND YOU COULD ONLY KNOW WHAT HAPPENS IN THE REGION IN BALTIMORE BY SUBSCRIBING, FOR $10 A MONTH, THAT'S $10 A MONTH OF PURE PROFIT. NO TRUCKS, NO NEWSPRINT, NO DELIVERY COST. THAT'S NEW REVENUE STREAM THAT MIGHT BE ABLE TO SUPPORT A METRO DESK OF 40 REPORTERS, 50 REPORTERS OF THE. GIVE THEM BENEFITS, LET THEM LIVE IN HOUSES WITH MORTGAGES. THE WANTON DESTRUCTION OF THE SOURCE OF ALL OF THIS NEWS, THAT THE AGGREGATORS ARE ENJOYING IS, IN A WAY, SELF-DEFEATING. BUT I THINK WE'VE HAD FOR THE LAST 20 YEARS, WE'VE SEEN THAT PEOPLE, YOU KNOW, IF THERE'S A SHORT-TERM PROFIT TO BE MADE, SOMEBODY WILL FIGURE OUT HOW TO MAKE IT AT THE EXPENSE OF THE ACTUAL INDUSTRY. |
| 02:08:34 | Kerry, John F. | WHAT DO YOU SAY TO THAT, MS. HUFFINGTON? |
| 02:08:36 | Huffington, Arianna S. | YEAH, I WAS NOT AROUND WHEN THE PRINTING PRESS WAS INVENTED. BUT IF I WERE AROUND, I WOULD IMAGINE THAT THE PEOPLE DEALING WITH STONE TABLETS WOULD BE MAKING A SIMILAR ARGUMENT. SAYING IF YOU JUST LEFT US ALONE AND FORGOT ABOUT THE PRINTING PRESS, WE COULD REALLY CHARGE YOU FOR THAT. THE ARGUMENT THAT THE "BALTIMORE SUN" COULD CHARGE FOR CONTENT THAT WOULD ONLY BE AVAILABLE TO THOSE PAYING SUBSCRIPTION TO THE "BALTIMORE SUN" SEEMS TO ME SO ANTIQUATED. IT SEEMS TO FLY IN THE FACE OF ALL THE CONSUMER HABITS. AND THE CEO OF GOOGLE SAID DURING A RECENT SPEECH -- |
| 02:09:16 | Kerry, John F. | LET ME INTERRUPT THREW FOR ONE MINUTE. IT'S A PRODUCT, IT'S CREATED BY SOMEBODY. IT'S AN INTELLECTUAL PROPERTY. WHICH WE RECOGNIZE AS HAVING A VALUE, CORRECT? |
| 02:09:25 | Huffington, Arianna S. | ABSOLUTELY. |
| 02:09:27 | Kerry, John F. | WHY DO THEY NOT HAVE A RIGHT, WHY IS IT ANTIQUATED TO BELIEVE THEY HAVE A RIGHT TO BE PAID FOR THEIR PRODUCT? |
| 02:09:32 | Huffington, Arianna S. | NO, NO. THE FACT THAT THEY, THAT THEY WISH THAT WAS THE CASE IS NOT ANTIQUATED. THE FACT THAT IT CANNOT HAPPEN IS ANTIQUATED. BECAUSE THAT'S NOT HOW PEOPLE ARE CONSUMING NEWS. |
| 02:09:45 | Kerry, John F. | IS IT THAT IT CANNOT HAPPEN, BECAUSE THEY HAVE DECIDED TO PROVIDE IT FREE AND YOU CAN'T PUT THE HORSE BACK INTO THE BARN? OR IS IT, IS IT BECAUSE IT CAN'T HAPPEN ANYWAY, NO MATTER WHAT OUR RULES WERE? FOR INSTANCE, IF YOU SAT DOWN, YOU SAID MOMENT AGO, MS. MEYER, THAT YOU WERE PREPARED, I THINK YOU WERE SAYING THAT IT'S IMPORTANT TO HAVE THE FOLKS CAPABLE OF DOING THIS. THEY'RE NOT GOING TO BE CAPABLE OF DOING THIS, IF THEY CAN'T HAVE A REVENUE STREAM THAT COMES TO THEM DIRECTLY FOR DOING IT. DO YOU AGREE WITH THAT OR NOT? |
| 02:10:15 | Mayer, Marissa | I THINK IT'S A FALSE DICHOTOMY. I THINK YOU COULD SAY, WELL WITH THE PRODUCT WE HAVE TODAY, IT'S NOT WORKING. BUT YOU COULD TRY AND PRESERVE THE BUSINESS MODEL AS IT EXISTS TODAY. OR YOU COULD ATTEMPT 20 CHANGE THE PRODUCT IN A WAY THAT MAINTAINS THE CORE OF WHAT'S WONDERFUL ABOUT JOURNALISM. BUT ULTIMATELY BECOMES MORE ENGAGED AND IN-DEPTH ONLINE. GENERATING MORE DEMAND. |
| 02:10:39 | Kerry, John F. | LOOK, I'M AN OLD PROSECUTOR, TOO, AS CLAIRE MCCASKILL WAS, AND I REMEMBER THE REPORTERS SNIFFING AROUND THE D.A.'S OFFICE IN THE COURTHOUSE. AND THEY HELD PEOPLE ACCOUNTABLE AND THEY GOT STORIES AND EVERYTHING ELSE. IS THAT GOING TO HAPPEN? |
| 02:10:57 | Mayer, Marissa | I THINK IT CAN. SOME OF THE THINGS GOING WRONG IN THE NEWSPAPER INDUSTRY, ISN'T ABOUT THE ACTUAL JOURNALISM, IT'S ABOUT THE STRUCTURE OF THE PRODUCT AND THE WAY IT'S DELIVERED. FOR EXAMPLE, WHEN A NEW UPDATE COMES INTO PLAY, DO YOU PUBLISH A WHOLE NEW WEB PAGE WITH ONE NEW SENTENCE AND FIVE PARAGRAPHS THAT SOMEBODY READ YESTERDAY? WHEN YOU GET TO THE BOTTOM OF AN ARTICLE, IN THE PRINT VERSION, WHEN YOU FINISH AN ARTICLE, THERE'S TEN OTHER ARTICLES IN VIEW, ANY ONE OF WHICH YOU COULD BEGIN. WHEN YOU GET TO THE BOTTOM OF AN ARTICLE ONLINE, OFTEN IT'S A STATIC VERSION, IT WAS PRINTED AND THERE'S NO OTHER WAY TO GO. WHEN YOU BUY THINGS ON AMAZON, THERE'S PRODUCTS YOU CAN BUY. WHEN YOU WATCH THINGS ON YOUTUBE, THERE'S OTHER VIDEOS TO WATCH. WHEN YOU FINISH READING AN ARTICLE ONLINE, AT THE END IT JUST SAYS, YOU CAN LEAVE A COMMENT. BUT THERE'S NO OTHER LINKS. IF WE COULD COME UP WITH A PRODUCT THAT CAN INCREASE EDGE GAUGEMENT THE WAY SOCIAL NETWORKING SITES HAVE, FOR EXAMPLE -- |
| 02:11:56 | Kerry, John F. | I THINK EVERYBODY IS ALL FOR DOING THAT. BUT YOU STILL HAVE THE INITIAL QUESTION -- I MEAN THAT'S AFTER YOU'VE READ THEIR PRODUCT. |
| 02:12:03 | >> | WAIT. |
| 02:12:06 | Kerry, John F. | YOU'VE STILL GOT TO GET THEIR PRODUCT IN ORDER TO GET THERE. |
| 02:12:08 | >> | WELL, SENATOR -- |
| 02:12:11 | Kerry, John F. | SORRY, GO AHEAD. |
| 02:12:15 | >> | YOU KNOW, THE DALLASNEWS.COM DOESN'T PUT UP PDF PAGES AND ATTRACT 50 MILLION PAGE-VIEWS A MONTH AND USERS WHO ARE WEB-SAVVY. |
| 02:12:29 | >> | THEY'RE NOT DOING VERY MANY OF THE THINGS SHE WAS TALKING ABOUT. WE WANT TO PROVIDE MORE CONTEXT AND ANALYSIS FROM OTHER SOURCES. WE'RE NOT AGAINST IT WHATSOEVER. THE PROBLEM IS THAT THAT MODEL TODAY, FOR ABOUT 60% OF THE INVENTORY WE GENERATE IS MONETIZED AT 40 CENTS A THOUSAND. I CAN'T MAKE A LIVING AT 40 CENTS A THOUSAND. THAT'S A MILLION DOLLAR AS YEAR TO THE "DALLAS MORNING NEWS." THAT'S THE COST OF MY NEWS ROOM. |
| 02:12:55 | Kerry, John F. | WHAT WOULD YOU NEED TO BE ABLE TO DO THAT? |
| 02:12:58 | >> | I GUESS I WOULD HAVE TO HAVE 30 TIMES 50, A BILLION FIVE, A BILLION 500 MILLION PAGE-VIEWS A MONTH, AND THAT ISN'T GOING TO HAPPEN FOR THE DALLASNEWS.COM. WE'RE NOT AGAINST WHAT MS. HUFFINGTON DOES AND WE'RE NOT AGAINST WHAT GOOGLE DOES. WE WANT TO HAVE A FAIR COMPENSATION FOR THE CONTENT THAT WE PUBLISH, IF IT BECOMES AVAILABLE DIGITALLY FOR OTHER PEOPLE TO USE. WE'RE NOT GETTING PAID FAIRLY FOR THAT ACROSS OUR INDUSTRY. AND I THINK YOU'RE EXACTLY RIGHT. BY THE WAY, SENATOR, I AGREE WITH YOU AND I THINK THEY'RE GOING TO ARGUE, THEY SHOULD WANT MY 30 MILLION DOLLARS WORTH OF INVESTMENT IN NEWS RESOURCES, TO CONTINUE TO BE AT 30 MILLION OR WHO, BECAUSE I PROVIDE THE KIND OF CONTENT THAT HELPS DRIVE TRAFFIC TO GOOGLE, OR TO MS. HUFFINGTON'S WEBSITE AND SO DPORTH. SO IN ONE WAY, I DO BELIEVE WE HAVE A MUTUAL INTEREST IN THIS. WE MAY HAVE A DIFFERENT WAY OF GOING ABOUT IT. |
| 02:13:56 | Huffington, Arianna S. | ABSOLUTELY WE HAVE A MUTUAL INTEREST. AND WHAT I BEGAN TO SAY IS THAT ERIC SCHMIDT, THE CEO OF GOOGLE, AND MARISSA, YOU CAN TALK TO THAT MORE, HAS ALREADY BEGUN TO SPEAK ABOUT AN APPLICATION THAT GOOGLE IS DEVELOPING, WHICH WILL ACTUALLY HELP NEWSPAPERS. BECAUSE IT WILL BE ABLE TO IDENTIFY SUBSCRIBERS AND WHAT THEY WANT AND WHAT THEIR TASTES ARE, IN A MUCH MORE GRANULAR DIRECTED WAY. WHICH WILL BE EASIER AND MORE EFFECTIVE TO MONETIZE. AND MARISSA, I DON'T KNOW IF YOU WANT TO ADDRESS THAT. ONE MORE THING, TWO DIFFERENT WAYS TO APPROACH THAT, SENATOR K. ONE IS TIME-SELECTED, WHEN THEY PUT SPECIFIC CONTENT BEHIND WALLS AND THEY HAD TO ACOWOWLEDGTHAT ITT D NOT W WOR D THTHEY P P T T W WLS DOWNWN AND WHATHTHE NEYOYORK TIMES IS COCONSIDERING DOIN N NOW WITH EE NEW KIND,, AS YOU MENTIOD.D. WAS ANNOUNCED TODAY. AND THERERE CONSIDER INGINING GETTING NEW SUBSCRIBERS TO BUYTT A MUCH REDUCED RATE. THE NEW KINDLE ON WHICH THEY CAN READ THE NEWSPAPER. AND IN EXCHANGE GET A LONG-TIME SUBSCRIPTION TO THE NEWSPAPER. SO THERE ARE MANY INNOVATIVE IDEAS LIKE THAT. INSTEAD OF COMING HERE AND ASKING FOR ANTITRUST LEGISLATION, IN ORDER TO PROTECT THEIR LEGACY. |
| 02:15:24 | >> | BUT SENATOR, THE KINDLE, WHICH I THINK IS A MARVELOUS DEVICE. THE BEST DEAL THAT AMAZON WILL GIVE TO THE "DALLAS MORNING NEWS" THEY WANT 70% OF THE SUBSCRIPTION REVENUE. I GET 30%, THEY GET 70%. ON TOP OF THAT, THEY HAVE SAID, WE GET THE RIGHT TO REPUBLISH YOUR INTELLECTUAL PROPERTY, ANYTHING YOU DO, TO ANY PORTABLE DEVICE. NOW IS THAT A BUSINESS MODEL THAT'S GOING TO WORK FOR NEWSPAPERS? I GET 30% OF THE SUBSCRIPTION PRICE AND THEY GET THE RIGHT TO LICENSE MY CONTENT TO ANY PORTABLE DEVICE, NOT JUST ONES MADE BY AMAZON. TO ME, THAT'S NOT A MODEL. NOW WHAT WHEN MAYBE WHAT PLASTIC LOGIC COMES UP WITH OR HEARST, MIGHT PROVIDE A GOOD MODEL. BUT TODAY, KINDLES ARE LESS THAN 1% PENETRATION TO THE NEWSPAPER MARKET. |
| 02:16:17 | >> | I'D ALSO LIKE TO SPEAK TO THE TIME-SELECT EXPERIMENT. I THINK THAT ACTUALLY POINTS UP THE NEED FOR THE ENTIRE INDUSTRY TO HAVE, TO HAVE AN OPEN DISCUSSION ABOUT CONTENT AND COPYRIGHT. WHAT IT SHOWED WAS THAT THE "TIMES" ACTING ALOAN, WITHOUT THE "WASHINGTON POST," WITHOUT OTHER COMPETITORS, COULD NOT GO IT ALONE. AND FIRST, FURTHERMORE -- |
| 02:16:38 | Kerry, John F. | THEY SIMPLY WENT ELSEWHERE. |
| 02:16:39 | >> | UNLESS EVERYBODY LOOKS UPON THIS, UNLESS THE NEWS HAS VALUE, UNLESS IT IS A PRODUCT AND UNLESS IT'S TREATED AS A PRODUCT AND UNLESS IT'S TREATED AS AN INTELLECTUAL PROPERTY, IT'S OVER THIS THING IS ALL OVER BUT THE SHOUTING. |
| 02:16:55 | Kerry, John F. | SENATOR, WE INTERRUPTED YOUR SESSION FOR A MOMENT. |
| 02:17:00 | Klobuchar, Amy | OKAY, THANK YOU VERY MUCH. MR. CHAIRMAN. THANK YOU AGAIN. BEFORE I LEFT WE WERE TALKING ABOUT THE STEPS THAT WE CAN TAKE. WE HAVE THE AD ISSUE WHICH MAYBE COULD IMPROVE SOME AS THE ECONOMY IMPROVES, THE BANKRUPTCY ISSUE, IT DIDN'T SEEM LIKE ANYONE THOUGHT THIS WAS MUCH TO DO THERE. SENATOR KERRY HAS BEEN EXPLORING THE IDEA OF HOW NEWSPAPERS GET PAID FOR CONTENT. AND I JUST WANTED TO GO BACK TO THE ANTITRUST ONE FOR ONE MINUTE. BECAUSE I KNOW THAT SPEAKER PELOSI HAS WRITTEN A LETTER URGING THE ATTORNEY GENERAL TO TAKE A BROADER VIEW OF NEWSPAPER COMPETITION. AND AGAIN, I KNOW WE WENT OVER THIS A LITTLE, BUT THERE'S THIS ISSUE OF THE COMPETITORS, IN VIEWING THAT DIFFERENTLY, OBVIOUSLY. BUT I WANT TO GET A SENSE OF HOW THIS WOULD HELP YOU, VIS-A-VIS, AS YOU TALK ABOUT YOUR NEGOTIATIONS, MR. MORONI, FOR THE "DALLAS NEWS" TRYING TO NEGOTIATE SOMETHING, FOR GETTING PAID FOR THE WORK OF YOUR REPORTERS. HOW WOULD THAT CHANGE THIS, IF THERE WAS SOME CHANGE TO THE ANTITRUST EXEMPTION? |
| 02:18:01 | >> | WELL AGAIN THERE'S TWO THINGS. ONE, IF THE INDUSTRY CAN COME TOGETHER, THERE'S A WHOLE DIFFERENT DISCUSSION THAT CAN BE HAD WITH AGGREGATORS AS LARGE AS GOOGLE OR EVEN SMALLER. FOR INSTANCE, I'M QUITE CONFIDENT THAT WE GO TO KINDLE AND STRIKE A DEAL BETTER THAN 70% OF THE REVENUE GOING TO KINDLE, IF WE ALL ACTED TOGETHER. BUT AS A SINGLE NEWSPAPER IN A SINGLE TOWN IN THE UNITED STATES, I DON'T HAVE ANY LEVERAGE OF A COMPANY AS LARGE AS AMAZON. |
| 02:18:25 | Klobuchar, Amy | RIGHT NOW YOU'RE PROHIBITED FROM TALKING TO NEWSPAPERS IN WHAT WAY? |
| 02:18:30 | >> | WE CAN'T COME TOGETHER AND TALK ABOUT PRICING, FOR INSTANCE. I COULDN'T GET TOGETHER WITH OTHER NEWSPAPERS AND SAY, LET'S GO TO KINDLE AND TALK ABOUT WHAT KIND OF PRICE WE WANT FROM THEM. WHAT KIND OF SHARE WE WOULD LIKE TO HAVE TOGETHER. WE'RE PROHIBITED FROM DOING THAT. UNDERSTANDABLY, YOU KNOW, IN THE WAY THE MARKETS HAVE BEEN REGULATED OVER TIME. BUT I THINK SOME LIMITED EXEMPTION FOR THE INDUSTRY TO COME TOGETHER FOR A PERIOD OF TIME, COULD ALLOW US TO REALLY FIND OUT WHAT MR. SIMON HAS BEEN TALKING ABOUT. WHICH IS, WHAT IS THE VALUE OF THIS CONTENT THAT WE DID, LET OUT OF THE BARN, OUT THERE FOR FREE. COULD WE GET BACK CONTROL OF IT AS AN INDUSTRY, AND DETERMINE WHAT THE VALUE OF OUR INTELLECTUAL PROPERTY IS. |
| 02:19:14 | Klobuchar, Amy | AND MS. HUFFINGTON, YOU TALK ABOUT HOW YOU DON'T WANT TO GO BACK IN THE WAY BACK MACHINE. AND IT SOUNDS LIKE MR. MORONI IS STRUGGLING TO GO FORWARD. HE WANTS TO DO SOMETHING DIFFERENTLY BY WORKING WITH OTHER NEWSPAPERS TO GET SOME LEVERAGE. DO YOU HAVE A PROBLEM WITH THAT? |
| 02:19:29 | Huffington, Arianna S. | NO, BUT IT IS MY UNDERSTANDING THAT NEWSPAPERS ARE ALREADY HAVING THESE CONVERSATIONS. MEAN THAT'S WHAT I'VE BEEN TOLD BY RUPERT MURDOCH HIMSELF, THAT THESE CONVERSATIONS ARE ONGOING. AND THAT -- AND THAT -- |
| 02:19:44 | >> | THAT THEY'RE ONGOING. |
| 02:19:45 | Klobuchar, Amy | DO YOU WANT TO FINISH? MR. SIMON WAS NODDING HIS HEAD NO. |
| 02:19:49 | Huffington, Arianna S. | BUT THEY'RE DEFINITELY ONGOING CONVERSATIONS. AND NOTHING PREVENTS OR SHOULD PREVENT THAT. |
| 02:19:54 | >> | THOSE CONVERSATIONS ARE SO LIMITED IN SCOPE, WE REALLY CAN'T COME TO SOME SORT OF BUSINESS MODEL, DESCRIBE IT AND GO FORWARD WITH TRYING TO ENACT IT. SO. |
| 02:20:05 | >> | MY UNDERSTANDING IS MR. MURDOCH IS TALKSING TO HIS OWN PEOPLE WITHIN HIS OWN INSTITUTIONS. AND HE HAS BEEN FLOATING A FEW BALLOONS OVER TO THE OTHER SIDE. BUT THERE CAN BE NO CONVERSATION. THE PROBLEM IS -- THE INDUSTRY HAS BEEN UNABLE TO PROTECT THE SANCTITY OF ITS COPYRIGHT AND ITS PRODUCT BY TALKING TO EACH OTHER AND DECIDING WHAT TO DO ABOUT THE NEW MEDIA. |
| 02:20:30 | Klobuchar, Amy | SO THE BALLOONS ARE OUT THERE. |
| 02:20:31 | >> | WHEN YOU NEGOTIATE INDIVIDUALLY AS THE DALLAS PAPER, DES MOINES PAPER, MINNESOTA PAPER -- |
| 02:20:39 | Kerry, John F. | HOW AGGREGATORS WOULD YOU HAVE TO NEGOTIATE WITH? |
| 02:20:42 | >> | I ASSUME UTD START WITH GOOGLE AND AOL ANDREA HOO TO BEGIN BEGIN WITH. AND YOU WOULD PROBABLY GO TO AMAZON AND SOME OF THE OTHER E-READER DEVELOPERS. I THINK THAT WOULD BE A GOOD START. |
| 02:20:54 | Klobuchar, Amy | MR. COLE, DO YOU WANT TO COMMENT? YOU'VE BEEN KIND OF QUIET OVER THERE. ON THE IDEA OF THE NEGOTIATION AND THE ANTITRUST EXEMPTION. |
| 02:21:05 | >> | I HONESTLY DON'T HAVE A VIEW ABOUT THE ANTITRUST EXEMPTION. BUT THE NEWSPAPER'S COLLECTIVE EFFORTS TO DEAL WITH THE RISE OF THE INTERNET. I WAS MANAGING EDITOR OF THE "WASHINGTON POST" BETWEEN 1998 AND 2005. AND THE INDUSTRY DID ATTEMPT TO COLLABORATE, TO DEFEND CLASSIFIED ADVERTISING THROUGH CLASSIFIED VENTURES ONLINE. IT DID THROUGH THE A.P. COOPERATIVE, WRESTLE WITH THE CHALLENGE OF THE RISE OF ONLINE NEWS. AND IT FAILED. IT FAILED AGAIN AND AGAIN, TO ANTICIPATE AND TO MANAGE THE CHALLENGE. THE WORLDWIDE WEB. AND IT WAS VERY FRUSTRATING, IN THOSE EARLY YEARS TO ARGUE THAT THE A.P., FOR EXAMPLE, SHOULD BE CAREFUL ABOUT SELLING PRO PROPRIETARY CONTENT TO ITS MEMBERS FOR SUBSCRIPTION TO RISING ONLINE PUBLISHERS, WITHOUT CONSIDERING WHAT IT MIGHT DO TO THE BUSINESS MODEL. I HAVE NO OBJECTION IF THE NEWSPAPER INDUSTRY IS FINALLY ABLE TO CORRAL THE INTELLECTUAL PROPERTY THAT IT MANAGED SO POORLY, IN MY OPINION, DURING THOSE YEARS. BUT I'M NOT OPTIMISTIC THAT THIS IS GOING TO PROVIDE THE SOLUTION TO THE QUESTION THAT YOU'VE BEEN ASKING AND SENATOR MCCASKILL AND SENATOR KERRY EARLIER, WHICH ASK CRITICAL, WHICH IS WHERE IS THE PUBLIC INTEREST IN THIS CRISIS? AND THE PUBLIC INTEREST IS NOT LOCATED IN THE BUSINESS COMPETITION BETWEEN BIG, WELL-FUNDED COOPERATIONS. THE PUBLIC INTEREST IS LOCATED IN THE REPORTING, ON PUBLIC MATTERS, ON GOVERNMENT, ON PRIVATE POWER, ON PUBLIC INSTITUTIONS. ON INTERNATIONAL AFFAIRS, PARTICULARLY AT THE LOCAL LEVEL. AND WE'RE IN A PERIOD OF TRANSITION. AND WHILE I DON'T SHARE MS. HUFFINGTON'S OPTIMISM ABOUT CITIZEN JOURNALISM AND FACT-BASED OPINION. I APPLAUD HER INNOVATION. AND I HOPE THAT SHE PROVES ME WRONG. WE'RE IN A PERIOD OF EXPERIMENTATION, THE PERIOD OF TRANSITION. THE QUESTION IS, HOW DO YOU PROTECT THE PUBLIC INTEREST DURING THIS TRANSITION? AND I THINK YOU'VE SURFACED A LOT OF THE POSSIBILITIES. I THINK THERE IS A KIND OF CIVIC MARKETPLACE FUNCTION, AS WELL AS A MARKETPLACE FUNCTION. I WANT TO ADD AN ELEMENT TO THE DISCUSSION OF HOW YOU GET THE REPORTERS INTO THE POLICE STATIONS AND HOW YOU GET THE ZONING HEARINGS AND WATCHING THE MAYORS AND THE GOVERNMENTS A THEY'RE ADMINISTERING PUBLIC TRUST OVER THE NEXT FIVE TO TEN, 15 YEARS. WE HAVE AN INFRASTRUCTURE IN THIS COUNTRY, IN PUBLIC BROADCASTING, THAT IS EMBEDDED IN EVERY ONE OF THESE COMMUNITIES. NOW NONE, NO SINGLE SOLUTION IS THE ANSWER. BUT IN THE MIX OF SOLUTIONS THAT INCLUDE SMALL EXPERIMENTS FUNDED BY FOUNDATIONS LIKE "MIN POST" AND VOICE OF SAN DIEGO AND THE HUFFINGTON POST INVELTS AND INVESTIGATIVE REPORTING, I HOPE THEY FLOURISH. BUT WE ALREADY HAVE A NATIONALLY-DISTRIBUTED, PUBLIC BROADCASTING INFRASTRUCTURE, THAT COULD BE REVITALIZED AND ADAPTED TO SEND REPORTERS DOWN TO LOCAL AND STATE GOVERNMENT AND SUSTAIN SOME OF THE CIVIL SERVICE MODELLED PROFESSIONAL REPORTING THAT IS WHAT WE ALL THINK WE'RE IN DANGER OF LOSING, WHICH IS WHERE PUBLIC INTEREST LIES. I WANTED TO JUST TO ADD THAT THOUGHT IN. IT'S COMPLIMENTS ALL OF THESE OTHER APPROACHES, BUT ITS ABSENCE IN THE DISCOURSE WORRIED ME. BECAUSE I DO THINK IT'S AN OPPORTUNITY WHERE THE WIRING IS ALREADY THERE. YOU JUST HAVE TO GO TO WORK ON REFORM AND REVITALIZATION. |
| 02:24:38 | Klobuchar, Amy | LAST WORD? |
| 02:24:40 | >> | I'D ALSO LIKE TO SECOND THAT. AND THIS IS WHERE I'M GOING TO HAVE TO PART COMPANY WITH MR. MORONI. I HAVE NO FAITH THAT IF THE NEW REVENUE STREAM WERE ESTABLISHED, AND NEWSPAPERS BEGAN TO THRIVE AGAIN, THAT THE CHAIN JOURNALISM THAT WAS NOT LOCALLY BASED, WAS NOT COMMITTED WITHIN THE COMMUNITIES THAT IT WAS COVERING, THAT WAS BASICALLY A CREATURE OF WALL STREET, OF THE PROFIT MARGIN, I HAVE NO FAITH THAT THAT NEW REVENUE STREAM WOULD NOT BE CANNIBALIZED INTO CEO SALARIES AND PRICE PER SHARE. IT WOULD NOT BE TRANSFORMED INTO NEW REPORTERS, NEW HIRES. THE REASON WE ALL PAY $60 A MONTH FOR OUR TELEVISION, WHICH USED TO BE FREE, IS THAT THE CONTENT EXPANDED, IT BECAME MORE COMPLEX AND SOPHISTICATED. WE'RE WILLING TO LAY OUT MONEY FOR SOMETHING WHICH WAS FREE FOR 30 YEARS. NEWSPAPERS SHRUNK PRIOR TO THE ARRIVAL OF THE INTERNET, AND THEY DID SO, BECAUSE THEY WERE NOT NONPROFIT. THE PUBLIC'S INTEREST AND THE PUBLIC -- THE PUBLIC INTEREST IN THEIR ESSENCE WAS NOT THE PRIORITY. SO I AM ABSOLUTELY WITH MR. COHEN, TO THE EXTENT THAT THE NONPROFIT MODEL CAN BE BROUGHT TO BEAR. THAT PROBABLY IS THE ONLY FUTURE THAT'S GOING TO GET YOU THERE. |
| 02:26:00 | Kerry, John F. | SENATOR NELSON? |
| 02:26:01 | Nelson, Bill | THANK YOU, MR. CHAIRMAN AND THANK YOU FOR HAVING THIS HEARING. AND I APOLOGIZE FOR BEING LATE. I'VE BEEN A HIGHLY CLASSIFIED HEARING, WHICH I HAD TO CHAIR AND I APOLOGIZE TO THE PANEL. AND THANK YOU FOR YOUR CONTRIBUTIONS, I PARTICULARLY THINK THAT WHAT IS IN THE PUBLIC INTEREST IS TO HAVE UNFETTERED FREEDOM OF THE PRESS. AND ALL THAT THAT BRINGS TO A DEMOCRACY. AND SINCE I HAVE HERE IN FRONT OF US NOT ONLY ONE OF MY PERSONAL FRIENDS, BUT ONE OF, I THINK THE MOST SAGE OBSERVERS OF AMERICA AND ITS TRENDS. I WANT TO POSIT A, A SITUATION WHERE WE WILL BE TEN YEARS. AND YOU TELL ME, MR. BARGUIN, WHETHER OR NOT YOU THINK THAT THE PUBLIC INTEREST WILL BE SERVED. WE WILL HAVE ONLY A FEW NEWSPAPERS THAT ARE ACTUALLY PRINTED. PERHAPS ONE LIKE "THE NEW YORK TIMES." IT WILL ALSO BE ONLINE AND IT WILL BE CHARGED ONLINE. AND THAT LOCAL NEWSPAPERS PRINTED WILL BE A THING OF THE PAST. AND THEY WILL BE ONLINE VERSIONS. HOW THEY WILL BE FINANCED, I CAN'T SAY AT THIS POINT. BUT IN ADDITION TO THE LOCAL NEWSPAPER WHICH MAY HAVE GONE OUT OF BUSINESS, OR MAY HAVE A REMNANT OF AN ONLINE VERSION, THERE WILL BE OTHER LOCAL VENUES THAT WILL COME UP ONLINE OFFERING NEWS. AND THIS DIMINISHED CAPACITY WILL LESSEN THE NUMB OF STUDENTS IN JOURNALISM SCHOOL. AND THAT THE ENTERTAINMENT KIND OF NEWS WILL CONTINUE TO PROLIFERATE ON THE CABLE TELEVISION STATIONS. IS THAT WHERE WE'RE GOING TO BE IN TEN YEARS? |
| 02:28:34 | >> | WELL FIRST OF ALL I'M FLATTERED BY YOUR RECOGNITION OF OUR FRIENDSHIP. I DON'T ACCEPT THE MANTLE OF WISE MAN, HOWEVER. I APPRECIATE IT. I DON'T KNOW, SENATOR, WHERE WE ARE IN TEN YEARS. BUT IN THE SCENARIO THAT YOU DESCRIBE, I DON'T THINK WE'RE BETTER OFF. I'M NOT SURE THAT THAT'S THE SCENARIO THAT WE ACTUALLY GET TO, THOUGH. THE DISCUSSION THAT WE'VE HAD TODAY, AND I THINK STEVE AND I HAVE NOT PARTICIPATED IN IT, BECAUSE IT'S A, IT'S BEEN A DISCUSSION ABOUT A, THE PRESERVATION OF A BUSINESS. I THINK THE THRUST OF OUR PRESENTATION HERE TODAY WAS TO SUGGEST TO THE COMMITTEE THAT AN APPROPRIATE CONGRESSIONAL ACTIVITY OUGHT TO BE LOOKING FORWARD. AND THAT SAID, WITH SOME PAIN, BECAUSE AS A FORMER PUBLISHER, I LIVED THROUGH MANY OF THE THINGS THAT HAVE BEEN DESCRIBED HERE. IF THE FANS DON'T WANT TO COME TO THE BALLPARK, NOBODY CAN STOP THEM. I THINK THERE'S AN INEVITABILITY ABOUT THE USE OF DIGITAL MEDIA, THAT THE KIND OF FOCUS WE'VE HAD ON THE EXISTING BUSINESS OF NEWSPAPERS, HONESTLY DOESN'T SEEM TO ME TO BE VERY PRODUCTIVE. I DO AGREE THAT THERE SHOULD BE INQUIRY INTO WHETHER YOU CAN PRESERVE THE INTELLECTUAL PROPERTY. I THINK WHATEVER YOU CAN DO TO EXTEND THE LIFE OF THESE ORGANIZATIONS, OF THE ORGANIZATIONS, MEANING THE NEWS ROOM, I THINK IS PROBABLY A GOOD THING. BUT I DON'T THINK THAT'S WHERE WE'RE GOING. I THINK IN TEN YEARS, I THINK THIS IS GOING TO FEEL LIKE A REASONABLY AN AKRONISTIC CONVERSATION. I THINK WE NEED TO LOOK AT ENABLING ALL AMERICANS TO HAVE ACCESS. I THINK WE NEED TO LOOK AT FIGURING OUT WHAT ALL THE MODELS ARE GOING TO BE, ON THE NEW MODEL THAT ARE GOING TO BE ABLE TO PAY FOR, FOR THE KIND OF JOURNALISM THAT WILL REQUIRE. MAYBE AS I LISTEN TO, AS I LISTEN TO MR. MORONI. MAYBE IT IS SO, THAT YOU NEED TO ALLOW NEWSPAPERS TO NEGOTIATE ALTOGETHER. OR AT LEAST I GUESS THE FIRST THING YOU DO IS GET THE A.P. NOT TO SELL THE CONTENT, WHICH THEY'VE BEEN DOING FOR A LONG TIME. IN REPRESENTATION OF THEIR MEMBERS, WHO ARE ALL NEWSPAPERS. BUT I DON'T KNOW EVEN IF YOU DID SOMETHING LIKE THAT, HOW YOU THEN ANSWER MR. SIMON'S CONCERN ABOUT LOCAL. BECAUSE IN THE END, MAYBE NOT MR. MORONI'S COMPANY, BUT CERTAINLY THE OTHER PUBLICLY-HELD COMPANIES ARE ACCOUNTABLE TO INSTITUTIONAL SHAREHOLDERS. NEVER MIND TO THE ORIGINAL FAMILIES THAT MAY HAVE STARTED THEM. THE PRESSURE IS FROM INSTITUTIONAL SHAREHOLDERS WHO NOT ONLY DON'T CARE, BUT CANNOT CARE. THEY HAVE A DIFFERENT KIND OF RESPONSIBILITY. IN A VERY LOCAL OPERATION, YOU HAVE A, YOU HAVE, YOU HAVE A DIFFERENT VIEW OF YOUR RESPONSIBILITY TO THE COMMUNITY. AND THAT'S ACTUALLY ONE OF THE REASONS WHY I SAID IN MY STATEMENT, I THOUGHT THE IDEA, I DON'T KNOW THAT IT'S NECESSARY NONPROFIT, MAYBE IT SHOULD BE SOME SORT OF HYBRID. BUT THE IDEA OF A LOCAL MISSION-DRIVEN ORGANIZATION THAT IS COMMUNITY-BASED, THAT IS DEDICATED TO THAT COMMUNITY FIRST AND TO PROFIT SECOND, HAS, IT SEEMS TO ME, A GREAT DEAL OF APPEAL. BUT I DON'T THINK THAT'S NECESSARILY GOING TO HAPPEN BY SOME OF THE THINGS WE'VE HEARD TODAY. I WISH I COULD TELL YOU A QUICK ANSWER TO A TEN-YEAR SCENARIO. BUT I DON'T THINK THE SCENARIO BASED ON WATCHING CABLE RERUNS IS A REALLY GOOD CIVIC MODEL. |
| 02:33:03 | Nelson, Bill | AND IF YOU HAD THE LOCAL MODEL, DEDICATED TO THE NEWS, THEN PRESUMABLY YOU WOULD HAVE THE RESOURCES TO DO INVESTIGATIVE JOURNALISM AT THE LOCAL LEVEL? |
| 02:33:14 | >> | WELL, AND THAT'S THE BIG PRESUMPTION, I DON'T KNOW THAT YOU COULD MAKE THAT PRESUMPTION. I REMEMBER WHEN I WAS PUBLISHER OF THE "MIAMI HERALD," ASKING THE FELLOW WHO WAS THE HEAD OF COMCAST FOR SOUTH FLORIDA. WHAT I NEED TO FIGURE OUT IS HOW I BECOME A UTILITY JUST LIKE YOU HAVE. IF YOU COULD FIGURE THAT OUT, I DON'T KNOW IF YOU HAVE, BUT IF YOU COULD FIGURE THAT OUT, THEN THAT WOULD PROVIDE A WAY OF PAYING FOR THESE THINGS. IT MAY BE THAT CLASSIFIED ADVERTISERS DIDN'T PARTICULARLY CHOOSE ANY BRAND NAME. BUT THE DEPARTMENT STORES AND CLASSIFIED ADVERTISERS WERE NOT ESPECIALLY INTERESTED IN OUR FOREIGN BUREAUS AND LATIN AMERICA. THEY PAID BECAUSE THEY GOT VALUE. WHEN THEY STOPPED GETTING VALUE OR WHEN THEY GOT BETTER VALUE OR MORE EFFICIENT VALUE SOMEPLACE ELSE, THEY MOVED SOMEPLACE ELSE. SO I DON'T THINK YOU CAN ASSUME THAT THEY WOULD NECESSARILY CONTINUE WITH THE PAPER BUT IF YOU COULD COMBINE IT IN SOME FASHION, SO THAT THERE IS THE FEELING OF A UTILITY, LIKE A CABLE OPERATION, THEN YOU'D HAVE ENOUGH REVENUE IN GENERAL TO SUPPORT IT. THE "WASHINGTON POST" IS FAMOUSLY ABLE TO DO A LOT OF WHAT THEY DO, BECAUSE OF EDUCATIONAL SERVICES, A DIFFERENT BUSINESS THAT DLOES OFF A LOT OF MONEY WITHIN THE SAME COMPANY. |
| 02:34:49 | Nelson, Bill | MAY I SAY, MR. CHAIRMAN, AND IN CONCLUSION AND THANK YOU FOR BEING VISIONARY YOURSELF AND HOLDING A HEARING LIKE THIS. I -- AS AN OBSERVER TO SEE THIS THING FAST-CHANGING IN FRONT OF OUR EYES ON A DAILY BASIS, I GET SO CONCERNED, BECAUSE I SEE LOCAL NEWSPAPERS THAT ARE BECOMING THINNER AND THINNER AND THINNER. AND AS A RESULT, TO ATTRACT READERS, GET MORE SENSATIONALISTIC IN THEIR REPORTING. AS OPPOSED TO WHAT WE THINK OF AS GUMSHOE INVESTIGATIVE REPORTING. LIKEWISE, YOU AND I MOST OFTEN DON'T GET HOME UNTIL QUARTER OF 8:00 -- |
| 02:35:42 | Kerry, John F. | YOU GET HOME EARLY. |
| 02:35:45 | Nelson, Bill | AND I WANT TO GET A QUICK SUMMARY OF THE NEWS. AND WE'VE BEEN DOING THIS ALL DAY. AND I TURN IT ON AND IT'S A BUNCH OF SHOUTING AT EACH OTHER ON THE CABLES. AND I LITERALLY HAVE GOTTEN TO WHERE I AND I DON'T THINK THIS IS SERVING -- IF IT'S HAVING A NEGATIVE REACTION IN ME, SOMEONE WHO ABSOLUTELY LIVES ON THIS STUFF, THEN JUST THINK TO WHAT IT'S DOING TO THE CASUAL OBSERVER. |
| 02:36:23 | Kerry, John F. | WELL, THANK YOU. I AGREE WITH YOU COMPLETELY. BEFORE WE WRAP UP HERE, LET ME JUST ASK A COUPLE OF QUICK QUESTIONS. I WANT TO MAKE SURE YOU LEAVE US WITH YOUR SENSE OF WHAT THE PRIORITIES ARE THAT YOU THINK THE COMMITTEE RIGHTFULLY MIGHT CONSIDER HERE THAT WOULD MAKE A DIFFERENCE. I MEAN, WHAT HAS COME OUT TO EACH OF YOU IN TERMS OF LOOKING TO THE FUTURE AND PRESERVING THE LARGEST INTEREST THAT YOU'VE EXPRESSED. |
| 02:37:04 | >> | I THINK THE TOTALITY OF THE QUESTIONS AND THE DISCUSSION HAS ANSWERED THAT IMPORTANT QUESTION BY DESCRIBING WHERE THE PRIORITIES LIE. THEY LIE IN CREATING PATHWAYS TO SUSTAIN INDEPENDENT PUBLIC-MINDED REPORTING, PARTICULARLY AT THE LOCAL AND MUNICIPAL LEVEL, BUT ALSO AT THE STATE LEVEL. AND WITH ALSO COGNIZANCE OF THE POTENTIAL LOSS OF AMERICAN REPORTING ABROAD AT THE TIME THE UNITED STATES IS MAKING LARGE AND RISKY INVESTMENTS AROUND THE WORLD. SO THAT'S THE MISSION. I THINK THE OTHER THING THAT'S COME OUT IN THE HEARING IS THAT THERE'S NO ONE WAY THERE. IT'S GOING TO HAVE TO BE ALL IN, INCLUDING TRYING TO FACILITATE THE KIND OF INVASION IN ENTREPRENEURSHIP THAT'S REPRESENTED AT THE TABLE, INCLUDING REVIEWING EVERY INSTRUMENT THAT'S AVAILABLE TO PRESERVE THE NEWS ROOMS THAT ARE CONTRACTING AT NEWSPAPERS PRIMARILY. CREATING SUPPORT FOR PHILANTHROPIC INVASION OF THE SORT THAT THE NIGHT FOUNDATION REPRESENTS, BUT ALSO I THINK TAKING A HARD LOOK AT THE INFRASTRUCTURE THAT ALREADY EXISTS WITH A PUBLIC SERVICE MISSION, AND NOT JUST ACCEPTING ITS ROLE, BUT LOOKING TO REFORM AND REVITALIZE IT PURPOSEFULLY WITH THIS SET OF PRIORITIES IN MIND. AND I THINK THAT MAY TAKE SOME TIME TO GET IT RIGHT, BUT THERE IS AN OPPORTUNITY THAT COULD HAVE A LASTING IMPACT ON A WHOLE GENERATION OF AMERICAN PUBLIC LIFE THERE, I BELIEVE. |
| 02:38:37 | Kerry, John F. | I WOULD AGREE WITH THAT. |
| 02:38:40 | >> | WELL, I WOULD SECOND WHAT STEVE JUST SAID. THIS IS A TIME FOR EXPERIMENTATION INTO THE EXTENT THAT GOVERNMENT THROUGH INTERMEDIARIES, BECAUSE YOU DON'T WANT TO BE IN THE POSITION OF BEING THE DIRECT FUNDER, I THINK. FOR FIRST AMENDMENT KIND OF THINGS, BUT GOVERNMENT SUPPORTING THE REVOLUTION OF PUBLIC MEDIA 2.0 AND ABSOLUTELY PUSHING AS HARD AS POSSIBLE FOR UNIVERSAL DIGITAL ACT SAYS, AFFORDABLE DIGITAL ACCESS FOR ALL AMERICANS. ALL THAT SAID, I THINK THE DISCUSSION TODAY, WHICH WAS PRIMARILY ABOUT THE NEWSPAPER BUSINESS SAYS -- SHOWS JUST HOW DIFFICULT IT REALLY IS. BUT I THINK -- I THINK IT'S WORTHY OF YOUR ATTENTION. I THINK IF YOU COULD ACTUALLY CAUSE TO HAPPEN -- I DON'T KNOW WHETHER THE LUNCH THAT YOU SEEM TO BE SETTING UP BETWEEN GOOGLE AND NEWSPAPERS IS ACTUALLY WHERE IT'S GOING TO HAPPEN, BUT I THINK IF YOU COULD CAUSE THOSE TWO FORCES TO COME TOGETHER IN A WAY THAT ALLOWS FOR -- THAT ALLOWS FOR THE PRESERVATION FOR THE KIND OF JOURNALISM THAT I THINK WE ALL RESPECT, I THINK THAT WOULD BE A VERY GOOD THING. |
| 02:39:59 | Kerry, John F. | MS. HUFFINGTON? |
| 02:40:00 | Huffington, Arianna S. | FIRST OF ALL, I WOULD SAY SINCE THERE'S SO MUCH EMPHASIS TODAY ON LOCAL COVERAGE AND IT REALLY URGENTLY IMPORTANT TO LOOK AT THE FACT THAT 27 STATES NO LONGER HAVE A REPORTER COVERING THE CONGRESSIONAL DELEGATION HERE. AND UPDATING THE CREDENTIALING PROCESS, I WOULD SAY IS REALLY IMPORTANT. AND WE HEARD HERE ABOUT A LOT OF GOOD WORK BEING DONE BY SITES LIKE VOICE OF SAN DIEGO, UNDER THE CURRENT CREDENTIALING RULES WOULD NOT BE ALLOWED TO HAVE SOMEONE HERE. AND ONE LAST THING. I REALLY APPRECIATE MR. COLL'S DISTINCTION BETWEEN A BUSINESS AND PRO-VYING THE PUBLIC GOOD. THOSE ARE TWO DIFFERENT CONCERNS. I CAN EMPATHIZE WITH NEWSPAPERS WANTING TO SURVIVE AS A BUSINESS BUT I DON'T THINK THAT'S WHERE THE GOVERNMENT NEEDS TO COME IN. ESPECIALLY SINCE YOU LOOK AT FOR AN FOR EXAMPLE, THE LATEST EARNINGS REPORT BY THE "NEW YORK TIMES." WHILE THEY'VE ASKED THE GUILD TO TAKE A 5% CUT, WHILE THEY DEMANDED THAT COLUMNISTS WHO DON'T BELONG IN THE GUILD TAKE 5% CUT, WHICH THEY'VE ALREADY TAKEN, THEY HAVE GIVEN BONUSES TO SENIOR MANAGEMENT OF THE KIND THAT'S VERY OFFENSIVE TO THOSE WHO CLAIM THAT IT'S ALL ABOUT REPORTERS PRODUCING CONTENT. AND THAT IS RELATED ALSO TO THE OTHER PROBLEM WITH CONTEMPORARY JOURNALISM, WHICH IS HOW MUCH IT HAS BEEN DRIVEN BY ACCESS. WHICH IS WHY I WOULD LOVE TO PROVIDE YOU WITH A LIST OF SITES COVERING THE ECONOMIC MELTDOWN IN A WAY THAT'S VERY IMPORTANT, VERY SIGNIFICANT, WHICH ARE NOT ATTACHED TO NEWSPAPERS, BUT WHICH DON'T HAVE TO DEAL WITH THE PROBLEMS THAT COME WITH ACCESS, WHICH OFTEN MEAN THAT BUSINESS MAGAZINES AND NEWSPAPERS THAT COVER WALL STREET HAVE NOT BEEN AS GOOD EITHER AT PREDICTING THE MELTDOWN OR COVERING RIGHT NOW WHAT IS HAPPENING. |
| 02:42:04 | Kerry, John F. | WELL SAID. I THINK IT'S A GOOD SEGUE IN CLOSING OUT THE HEARING IN THIS WAY. I SAID AT THE OPENING OF THE HEARING THAT WE CAME HERE WITHOUT A SPECIFIC SORT OF LEGISLATIVE AGENDA, BUT WITH AN AGENDA WITH RESPECT TO OUR RESPONSIBILITIES TO THE COUNTRY IN TERMS OF OUR OVERSIGHT OF TELEVISION OBVIOUSLY, BROADCAST. BUT ALSO PRINT MEDIA AND THE RULES WE HAVE MADE WITH RESPECT TO OWNSHIP AND OTHER THINGS. ALL OF THOSE THINGS HAPPEN FOR THE SIMPLE REASON THAT WE HAVE ALWAYS GUARDED THE -- NOT JUST THE FIRST AMENDMENT RIGHTS WHICH YOU ALLUDED TO EARLIER, BUT THE CRITICALITY, THE IMPORTANCE OF THE FREE FLOW OF INFORMATION, PEOPLE BEING ABLE TO HOLD US ACCOUNT, CORPORATIONS, SPERP INTERESTS, PROCESSES, ACCOUNTABLE TO ONLY THE DEGREE THERE'S SUNSHINE AND SUNLIGHT ON IT. AND I QUOTED PAUL STARR ABOUT HOW NEWSPAPERS HAVE ALWAYS BEEN THE EYES ON THE STATE AND THE CHECK-IN TO OUR LIVES. NOW LET ME EMPHASIZE, AND I THINK MS. HUFFINGTON JUST SAID THIS, WE CERTAINLY DON'T HAVE A HEIGHT TO COME HERE AND HAVE SOME VESTED INTEREST IN KEEPING A NEWSPAPER PER SAY AS A BUSINESS ALIVE, BECAUSE THAT'S THE WAY IT'S ALWAYS BEEN. AND WE HAVE TO NOT THINK ABOUT THIS. LOCKED INTO A SORT OF PATTERN OF THINKING BECAUSE THAT'S THE WAY IT'S ALWAYS BEEN. LIFE CHANGES. AND THE MARKETPLACE CHANGES. BUSINESS MODELS CHANGE. AND WE'RE SEEING THAT WITH ENORMOUS UPHEAVAL IN GREEN ENERGY AND ALTERNATIVE ENERGY AND DIFFERENT DEMANDS IN AUTOMOBILES. NOT TO MENTION WHAT WE'VE GONE THROUGH IN THE LAST 25 YEARS WITH GLOBALIZATION AND THE TRANSFORMATION OF THE MARKETPLACE. I SUSPECT THIS IS PROBABLY NO DIFFERENT IN A LOT OF WAYS, BUT I WANT TO GUARANTEE THAT IT DOESN'T LEAVE BEHIND THAT PRECIOUS DIFFERENCE THAT WE HAVE IN OUR COUNTRY FROM ALMOST EVERY OTHER PLACE ON THE PLANET. AND THAT IS THAT UNBELIEVABLE ABILITY OF A COUPLE OF BEAT REPORTERS ON POLICE BEAT IN WASHINGTON TO HOLD THE PRESIDENT OF THE UNITED STATES ACCOUNTABLE FOR A CRIME. THAT WAS LOCAL REPORTING THAT TRANSLATED INTO SOMETHING NATIONAL. NOW, THAT IS NOT TO SAY THAT YOU'RE NOT GOING TO FILL THIS VOID. I THINK WE HAVE TO BE VERY, VERY CAREFUL HERE NOT TO GET INVOLVED IN A WAY THAT, YOU KNOW, WE ALWAYS HAD WINNERS AND LOSERS DEBATES AROUND HERE. WE HAVE TO BE CAREFUL WHATEVER WE DECIDE TO DO, IF ANYTHING, IS STRICTLY IN KEEPING WITH THIS LARGER PUBLIC INTEREST. THAT'S WHAT BRINGS US TO THE TABLE. AMERICANING INCREASINGLY HAVE MORE INFORMATION AVAILABLE BUT IT DOESN'T MEAN THAT THEY PROCESS IT OR THEY ACCESS IT ALL OR IT BECOMES A PART OF OUR NATIONAL DIALOGUE. I THINK THIS IS AN INCREASING CHALLENGE TO ALL OF US. IT IS HARDER AN HARDER TO BUILD CON SEN US AROUND ANY ISSUE IN THIS COUNTRY. AND IT'S HARDER AND HARDER TO SEPARATE FACT FROM OPINIONATED SO FORTH. HOPEFULLY THIS TRANSFORMATION IS GOING TO SEE THAT EMERGE AND IT MAY BE THAT THERE WILL BE A CORE OF CITIZEN REPORTERS IN OTHER KINDS OF WAYS AND MEANS BY WHICH THAT'S GOING TO HAPPEN. I SEE A CONGLOMERATION OF DIFFERENT SOURCES, BUT I SEE MORE AND MORE PEOPLE OPERATING IN PUBLIC LIFE WITH SNIPETS AND I THINK THAT'S DANGEROUS. I DON'T HAVE A COMPLETE ANSWER TO IT, BUT I THINK IT'S DANGEROUS AND WE HAVE TO THINK ABOUT SORT OF WHERE AND HOW THIS PLAYS OUT. SOME OF WHAT'S APPEARING IS VERY PARTISAN. AND SOME OF THE SITES, YOU KNOW, ATTRACT PEOPLE BY VIRTUE OF THEIR PARTISANSHIP, NOT BY VIRTUE OF THEIR PROVISION OF NEUTRAL FACT-BASED NEWS OR PEOPLE -- I SUPPOSE ANY ENTITY HAS ITS BIASES AND PEOPLE DRAW THEIR DISTINCTIONS AND LEARN HOW TO DO THAT, BUT SOME OF THEM ARE, YOU KNOW, VERY CLEARLY IN ONE PLACE OR ANOTHER. AND THE ONLY PEOPLE WHO GO TO THEM ARE PEOPLE WHO ALREADY HAVE THAT AFFINITY. SO WE NEED TO ENCOURAGE -- YOU KNOW, WE WANT TO HAVE A STANDARD, WE WANT THE PROFESSIONALISM, WE WANT EXPERIENCE, WE ANT ALL THOSE VIRTUES TO SOMEHOW RISE TO THE SURFACE IN THIS PROCESS. IT MAY WELL BE THAT MS. HUFFINGTON HAS CREATED THE NEW MODEL AND AS IT GROWS, IT'S GOING TO PROVIDE MORE OF THIS STANDARD AND MORE OF THESE PROFESSIONALS, AND MORE OF A SORT OF STRUCTURE AS WE'VE KNOWN IT. I DON'T KNOW THE ANSWER TO THAT. BUT THIS IS WORTH OUR SORT OF THINKING THROUGH MORE. THIS IS A FIRST CONVERSATION, THE FIRST BRUSH WITH IT ALL. AND I HOPE IT ELICITS FURTHER COMMENTARY FROM PEOPLE AND INPUT. WE'RE GOING TO KEEP THE RECORD OF THE COMMITTEE OPEN FOR A WEEK FOR THE PURPOSE OF OTHER COLLEAGUES TO BE ABLE TO SUBMIT QUESTIONS IF THEY WANT TO. AND I THINK WE WILL ABSOLUTELY CONTINUE THE CONVERSATION WITH THE RULES COMMITTEE WITH RESPECT TO THE ACCREDITATION. I THINK THAT'S A VERY IMPORTANT WAY TO AUGMENT THE ACCOUNTABILITY IN TERMS OF THE NATIONAL SCENE. WE STILL GOT TOT THINK ABOUT WHAT'S GOING TO HAPPEN AND HOW WE'RE GOING TO FUND AND HOW WE'RE GOING TO KEEP WHAT HAPPENS IN STATES AND IN LOCALITIES, BECAUSE I THINK IT'S GOING TO TAKE A WHILE FOR THIS NEW MODEL TO FILL THAT. AND, YOU KNOW, TWO, THREE, TEN YEARS, WHO KNOWS WHAT HAPPENS IN THAT VACUUM. I HOPE MR. SIMON ISN'T CORRECT. YOU KNOW, THAT IT'S AN OPPORTUNITY FOR, YOU KNOW, NEFARIOUS EFFORTS BUT WE'LL SEE WHAT HAPPENS. DID ANYBODY WANT TO ASK ANYBODY ON THE PANEL ANYTHING? OR SAY ANYTHING THAT WAS UNSAID AT THIS POINT? I THINK WE'VE HAD A GOOD DISCUSSION. WE THANK YOU VERY MUCH FOR JOINING US TODAY. AND WE STAND ADJOURNED. |
| 02:49:12 | >> | I WILL SEE HIM TOMORROW AND I'LL GIVE HIM REGARDS FOR YOU. |
| 00:00:03 | >> | I HAVE TWO QUICK QUESTIONS. THE FIRST QUESTION IS, ARE YOU IN CONTACT WITH MR. MONTGOMERY? AND DO YOU FORESEE -- |
| 00:00:10 | >> | WE'LL LEAVE THIS RECORDED EVENT NOW TO TAKE YOU LIVE AS PROMISED TO A SENATE HEARING ON THE FUTURE OF JOURNALISM. FIRST WE'LL HEAR FROM MARYLAND DEMOCRATIC SENATOR BEN CARDEN. HE'S THE AUTHOR OF A BILL THAT WOULD ALLOW NEWSPAPERS TO BECOME NONPROFIT ORGANIZATIONS. IT WILL BE FOLLOWED BY A PANEL INCLUDING ARIANA HUFFINGTON, CRAIG SIMON AND OTHERS. SENATOR JOHN KERRY IN THE HEARING ROOM, HE'S THE CHAIRMAN OF THE COMMERCE SUBCOMMITTEE ON COMMUNICATIONS AND TECHNOLOGY. THIS IS LIVE COVERAGE ON C-SPAN. |