Archive for the 'Wall Street Journal' Category

The Wall Street Journal Isn’t Starbucks

I am at pains here not to seem like a big, gruesome troll. I am therefore going to avoid anything that could be even reasonably construed as an argument anything close to “information wants to be free.” That would give lazy opponents a too easy strawman, which is too bad, because what I’m really giving up, it seems, is arguments stemming from vanishingly small marginal costs. Oh well, such seems to be the price of admission to conversations about the future of news in which curmudgeons may lurk, which is certainly to say nothing at all about whether Mr. Murray is curmudgeonly. (It’s far too early in this post to poison that particular well.)

And so but my question is, “At a human level, why would @alansmurray push us into a paywall when he could avoid it?”

And Mr. Murray’s answer is, “I feel the same way about the folks at Starbucks.”

So let’s take a look at whether it’s an appropriate argument by analogy. Let’s see where it holds up and where it’s weak.

First, the folks at Starbucks rarely know their customers. No denigration to them at all—I’ve put in my time working the Dairy Queen in the mall’s food court—but they have a rote job. Starbucks the corporation may wish it hired pleasant workers, but in truth it doesn’t want to pay for them. Call me cynical or call me a member of Gen M, but low-level food-service workers are not in anything near even quasi-social relationships with buyers of coffee. It’s not their fault; they’re not really paid for their social graces or interpersonal talents. It’s a structural problem.

But Mr. Murray is in an altogether different space. He’s in a space quite literally defined by its human connections. There is little reason to be on twitter at all if it’s not to be social at some level.

And, I can say from my not-so-remote experience in food service that when folks like the folks at Starbucks do find themselves in a social context with customers, they’re deeply tempted to give away product. When I was a kid, working the blizzard machine at the tender age of fourteen, I gave away way more product than I’d like to admit. There was too much soft-serve on my cones. There was too much candy or cookies whipped into my blizzards. And I also just gave it away. Maybe it was part of a swap with the pizza guys or the sandwich guys or the taco guys. Or maybe I just handed out blizzards to all my pals, when the boss wasn’t looking. This corporate-profit-be-damned attitude was rampant across my food court on the west side of Madison, Wisconsin, in the second half of the 1990s. It’s called a principal-agent problem, and although it’s not unreasonable for Mr. Murray, an agent, to side with his principal, his analogy hides the difference, pretending it doesn’t exist. (NB. I haven’t a clue whether Mr. Murray is an equity holder of News Corp.)

Also, it’s illegal to give away someone else’s coffee. As best I can tell, however, it’s perfectly within the bounds of the law to encode a long google link within the URLs Mr. Murray uses. It’s not against the law for Mr. Murray to route us around inconvenience rather than push us into a paywall. In fact, the route-around is perfectly normal and appropriate. Again, there’s nothing wrong or shady or sketchy about routing around the Wall Street Journal’s paywall. You don’t have to be hacker; you only have to be frugal and spend a few extra seconds and clicks.

But maybe it’s against the rules. Maybe Mr. Murray’s boss has decreed that WSJ employees shall not distribute link that route around the paywall. That doesn’t answer the question, however; it just passes the buck. For why would Mr. Murray’s boss—who is probably Robert Thomson, though I’m not certain—authorize or oblige Mr. Murray’s twittering of paywalled links if he hadn’t deemed it appropriate? Does Robert Thomson believe it makes business sense to twitter paywalled links?

Maybe it is. Maybe Mr. Thomson believes that, if Mr. Murray twittered route-around links to normally abridged articles, then fewer people would pay for subscriptions. And maybe fewer people would. It’s not impossible. Note well, however, that I’m not saying Mr. Murray should hurt his company’s finances by twittering route-around links to normally abridged articles. I’m saying that Mr. Murray might consider twittering only links to normally unabridged WSJ articles and other content around the web. But that would be odd, wouldn’t it? That would be awkward, silly even.

The Wall Street Journal leaves the side-door wide open, hidden only by slight obscurity, but charges at the front door. The Wall Street Journal is wide open. The fact that google indexes its content fully is dispositive—it’s all the proof we need. Let’s try a good old counterfactual conditional: Were the route-around not legitimate, then google would ding the WSJ’s pagerank. But google clearly hasn’t, so the route-around is legitimate.

The point requires an underline lest we succumb to a kind of anchoring cognitive bias. The paywall is not normative. You are not stealing content by refusing to be treated differently from google. In fact, the use of terms like “front door” and “side door” subtly, but completely inappropriately, encodes moral judgments into the discussion. In fact, there are—rather obviously, come to think of it—no “doors” at all. There are, in technical reality, only equal and alternative ways of reading the news. One’s convenient, and one’s not. One’s free, save the attention extracted by on-site advertising, and the other’s not. Maybe one cushions News Corp.’s bottom line, and maybe the other doesn’t. Maybe one supports civically important journalism, and maybe one doesn’t.

At bottom, though, there’s this. Mr. Murray is a human interacting socially with other humans on twitter, saying, “Hey, read this! Trust me: it’s good!” He gestures enthusiastically toward a bolted door, his back disguising an open gateway. “Please, ignore the actually convenient way to take my suggestion that you read this really interesting piece.” Mr. Murray would rather you remain ignorant of a loophole his paper exploits in order to maintain its googlejuice but keep its legacy subscribers. (Note that I’ve pointed out the loophole to several fellow mortgage traders, asking whether they would consider dropping their subscriptions. They all declined, saying they prefer to pay rather than take the time to make the additional clicks.)

I’m not saying it doesn’t make business sense. Businesses are free to capture whatever “thin value” they can, Umair Haque’s warnings notwithstanding. I am saying it doesn’t make human sense. I am saying that particular business practice looks silly, awkward, and disingenuous on twitter. And, ultimately, that’s Umair’s point. In a world of exploding media (PDF), we’re inevitably going to come to rely more on human connections, based on real trust, in order to make choices about how we allocate our attention. Mr. Murray’s cold business logic may work, but I suspect it won’t.

The Wall Street Journal’s Fancy SEO Tricks

I’m not an SEO expert. So if there were a group of SEO experts standing in the corner, I wouldn’t be among them. I would be among the mere mortals, who apply basically their common sense to how search engines work.

All that said by way of longwinded preamble, I did happen upon a fun realization this morning, in the spirit of “The internet routes around….”

The WSJ does this thing called cloaking. It essentially means they show Google a different website from what they show you. The googlebot sees no paywall and waltzes right in. You hit a “subs only” paywall and get frustrated. Or maybe you pay for the subscription. Still, though, I doubt google pays the subscription, and so even if you see the whole website too, you see a costly website, whereas google sees a free website.

The net result for the WSJ is that it cleverly gets its entire articles indexed, making them easier to find in google, but is able to maintain its paywall strategy. The net result for you and me is that it’s sometimes a pain in the neck to read the WSJ—which is too bad, because it’s a great read. It’s also a pain in the neck to share WSJ articles, as Deputy Managing Editor and Executive Editor Online @alansmurray’s sometimes plaintive “subs only” tweets evince.

But there’s a way around the mess. Actually, there are a couple ways around. One involves the hassle of teaching my mom how to waltz in like google does, and one involves me doing it for her. I prefer the latter.

paywallBut let’s rehearse the former first. Let’s say you hit the paywall. What do you do? You copy the headline, paste it into google, and hit enter. This works way better if you’ve got a search bar in your browser. Once you hit enter, you come to a search results page. You’ll know which link to click because it won’t be blue. Purple means you’ve been there before, so click that link. It will take you back to your article, but you’ll be behind the paywall, gazing at unabridged goodness. It’s not too hard, and the upside it terrific. That said, this procedure is much easier to perform than it is to explain, and the whole thing is pretty unintuitive, so my efforts to spread the word have led to little.

But there’s a better way, for the sharing, a least—a way that involves letting the geekiest among us assume the responsibility of being geeky. It’s natural, and you don’t have to rely on your mother’s ability to route around. Instead, once you decide you want to share a WSJ article, grab the really long URL that sits behind google’s link on its search returns page. They look something like this:

Then push that horribly long URL—itself unfit for sharing in many contexts—into your favorite URL shortener. Send that shortened URL to your mom, or post it to twitter.

No one will ever know the article you’re sharing sits behind WSJ’s grayhat paywall.

LATE UPDATE: I write a follow-up post prompted by @alansmurray’s response, comparing his situation to the one occupied by the folks at Starbucks.

LATER UPDATE: Alex Bennert from the WSJ points out that the WSJ’s fancy trick is in fact sponsored by google and called First Click Free. See his her link below and my reply.

Freemium News

I came across two great examples of freemium news. One was a reminder, and the other felt familiar but was a bolt from the blue.

First, the one. Blodget really does an admirable job digging into the fundamental economics of why the WSJ’s porous paywall. (Cf. this naive version at CJR.)

Second, the other. Mitch Ratcliffe drills deep into the economics of news on both the supply and demand sides of the equation. The supply side—what reporters need to report—is interesting. It asks, “How much money do journalists need to give scarce journalistic value to readers?”

But for my money, I like thinking about the demand side of the equation. Here the relevant (and symmetrical) question is, “How much scarce journalistic value do readers need to give money to journalists?”

What Ratcliffe and Blodget’s answers have in common is, essentially, price discrimination and luxury. In other words, make it easier or make it better (as in more value-added).

The WSJ’s habit of forcing me to jump through hoops to read its full articles is price discrimination at its heart. I have to pay with my time (instead of money) by copying the paywalled article’s headline and pasting it into a google search (generally adding “google news” as well) and then clicking back to Then I’m behind the paywall, and not a drop of google juice is spilt.

Ratcliffe proposes “added convenience or increased interaction” in the form of twitter access to the reporter, more timely alerts, or a “social page of your own” for giving feedback to the journalist. “It doesn’t need any new tech — all the pieces are there,” he tweeted (@godsdog). “Yes, integration is hard, but it’s good not to have to invent.”

These are great good thoughts—focused sharply on the economics of news, not BS about who’s a reporter and who’s not or what’s legitimately Web 2.0 and what’s not.

This is the future of news. This is networked news. Above all, this is the power of the interwebs: connecting unique buyers and sellers of information as individuals with diverse interests. Expect more soon.

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