welcome to hip module show 16 i’m your
host afghan karva solution and I’m seat
see more welcome to the show so last
week when we were talking about
craigslist came up i forgot what we were
talking about but craigslist came up and
we said that this week we would touch on
craigslist to see how responsible craig
newmark is for the you know decline of
newspapers right so we’re going to talk
about that basically you know was it
craigslist or was the technology that
impacted newspapers and then we’re also
going to have a tangent to say who
missed out the boat most on technology
is that the newspaper industry newspaper
and magazine so the print industry or
the music industry in segment two we’re
going to also touch on something that
we’re going to expand on something that
we touched on last week which is why
vc’s don’t invest in content which is a
very popular theme and motif on the show
and then lightning round and email the
week let’s get right to it so how
responsible is Craigslist for the demise
of newspapers um I don’t know I don’t
think they’re they’re primarily
responsible if anything newspapers were
disrupted I think by technology and they
were disrupted on two sides they were
disrupted on the content side which you
know 808 did the man for their product
and they were disrupted on the ad model
side so yeah you know craigslist did
take a huge chunk of classified
classifieds advertising from them
without even charging for it but you
know it wasn’t craigslist that did that
you know craigslist there’s no
technology behind it really the internet
came up that was bound to happen
craigslist happened to be the company
that did it the one that was
first-past-the-post i think what’s
really killed newspapers though is the
content market has become completely
saturated barriers to entry or
publishing or whatever are completely
low and they’re facing too much
competition which is spread advertising
dollars really soon yeah so basically
whether it was craigslist or not that
site did take a hundred billion dollar
classifieds industry and turn it into
like a hundred million dollar industry
so obviously what do we always say the
internet shrinks industries use
craigslist came out and they basically
shrunk the classifieds industry okay you
touch on a lot of great points when we
started watch module one of the main
sort of objections to the site was why
produce content why produced
professional
premium content for the web and I said
listen user-generated content
particularly citizen journalism is going
to have a big impact on you know the
news industry and we’ve seen it in Egypt
and Tunisia and any other crazy parts of
the world or when there’s an earthquake
people are tweeting about it before the
news you know CNN updates it so you’re
right that that basically I think
citizen journalism really I think had a
big impact look at CNN CNN is growing
and it has ambitions to take over the
world yet they’re laying off some
journalists why because of I report and
as much as I report was like a dinky
little idea at first we were like what
the hell is this there is some good
stuff coming out and I think citizen
journalism and the news industry is one
segment where ugc is very powerful and
and does eat away at it now let me ask
you this what what industry missed the
boat most on technology is it the news
the news so that’s the newspapers as
well as the lifestyle entertainment
magazine print let’s say just put print
all together because you could sort of
branch off you know news from magazines
but let’s just put all print together so
who missed out more print or music I’m
probably going to have to say print if
only because a lot more publishing
companies have gone belly up the music
companies music companies have been
losing money but they’re still there and
I think part of the reason is is the
difference in the kind of product they
sell you know you buy an album you’re
going to go back and listen to it over
and over and over there you buy today’s
edition to the newspaper you’re not
going to look at it after two days it’s
very interesting I disagree with you I
think that the the print sort of the
articles and texts and and think of you
know like think of all the images that
these companies have that is very
valuable to move online without a doubt
but I think the music industry missed
about more and i’ll explain news is
fundamentally a commodity we agree like
I mean news as a commodity so I think if
you were to take that commodity and then
put it on the internet there would be
and let’s say whether you said it’s
going to be an ad-supported model or
it’s a subscription-based I think there
is way too much similar quality content
out there that users will not pay for
the subscription and in the ad model
we’ve seen what’s happened with the
explosion of ugc on with video is there
so much supply that ad rates go down so
i think the newspaper industry was
just you know it was the first sort of
industry out there it was a print
industry it’s been around for 150 years
more if you go back to depending on what
you call news frankly but let’s say the
news of the Hursts you know and like
that era it’s been around for a hundred
fifty years it was bound to be disrupted
it was it was like a tree it was too fat
it got too many layers too many
inefficiencies and the internet was
gonna disrupt that I think the reason
why the music industry missed the boat
more is because the music industry does
not have a commodity it’s actually
unique you’re right that you buy an
album you listen to it 50 times but
those are unique assets right people
would pay look at what Steve Jobs
discovered that people would pay for
music they would pay for super premium
content so I think they missed out the
board they missed out more now let me
give you just a little anecdote in
2000-2001 when I started my career I was
a resident interviewer in a previous
lifetime and I remember interviewing
three doors down remember kryptonite 3
door okay so at the zenith of napster
destruction of the music industry so
around 2000 2001 guess what was the most
downloaded song of the year illegally
kryptonite the bingo jackpot you win
nothing not kidding it was kryptonite
guess what was the most sell to the
highest selling album that year that
same album that same album right so I
mean is it an anecdote is that who does
does does you know causation cause what
I gotta know various causation right
there you know here you have an album
that’s I was I’m all night researching
this flight I’m kidding but mr. well no
you just in that case you had an album
that’s in high demand so you and at the
height of Napster was just the beginning
of music disruption really if you think
about it so the only real a tight shot
of baileys every time we use the word
disruption on today’s show do you have a
bottle of listen we should I was getting
close to Christmas we like it sorry
alright anyways so you know this music
piracy was really just getting getting
started it’s changed a lot since then
but it was a popular song so of course
it’s going to be both the most
downloaded and the most purchased songs
i’m sure you can see the same trend but
very much all due respect it not
necessarily it could be the most
downloaded song but then why would the
argument against the album the argument
that a lot of like the sort of web to
you know hippies we say is oh
it’s the music industry they’re a bunch
of dumb rocks they put out these albums
that nobody wants they really just want
one or two songs well if that’s the case
you wanted kryptonite and i don’t know
like sulfur or whatever the other song
was but the fact that people still went
out and bought the album I just think
speaks to the fact that agree or
disagree about causation correlation I’m
just saying that the music industry
really missed out the boat and I think
part of it goes back to what Doug more
is currently CEO chairman of Sony but
probably before CEO and chairman of
universal he’s like this is not our
expertise digital music it’s like you
know bringing a dog to us and saying
operate you know give it a triple bypass
surgery it’s not our expertise and I’m
like what the hell like well then why
were you not hiring the people that
understood digital music because that I
think is the one area that in hindsight
they could have had a great ad model and
they could have had a great subscription
model and the fact that right now you
got the pandora’s and the spotify is in
the crap stirs that are eating away and
creating that value it should have been
the record labels so just another lesson
to be served that if media companies the
TMC’s traditional media companies are in
this position where they’re sort of
caught between a rock and a hard place
it’s because they’re both greedy and
stupid and I’m not saying that to be
rude I’m saying that to tell them wake
up you got a big opportunity stop being
so defensive stop being so you know
backwards anyway anything else before we
move to the next segment I still
disagree but let’s move on to investors
on we’ll be right back why don’t vc’s
invest in content
host afghan karva solution and I’m seat
see more welcome to the show so last
week when we were talking about
craigslist came up i forgot what we were
talking about but craigslist came up and
we said that this week we would touch on
craigslist to see how responsible craig
newmark is for the you know decline of
newspapers right so we’re going to talk
about that basically you know was it
craigslist or was the technology that
impacted newspapers and then we’re also
going to have a tangent to say who
missed out the boat most on technology
is that the newspaper industry newspaper
and magazine so the print industry or
the music industry in segment two we’re
going to also touch on something that
we’re going to expand on something that
we touched on last week which is why
vc’s don’t invest in content which is a
very popular theme and motif on the show
and then lightning round and email the
week let’s get right to it so how
responsible is Craigslist for the demise
of newspapers um I don’t know I don’t
think they’re they’re primarily
responsible if anything newspapers were
disrupted I think by technology and they
were disrupted on two sides they were
disrupted on the content side which you
know 808 did the man for their product
and they were disrupted on the ad model
side so yeah you know craigslist did
take a huge chunk of classified
classifieds advertising from them
without even charging for it but you
know it wasn’t craigslist that did that
you know craigslist there’s no
technology behind it really the internet
came up that was bound to happen
craigslist happened to be the company
that did it the one that was
first-past-the-post i think what’s
really killed newspapers though is the
content market has become completely
saturated barriers to entry or
publishing or whatever are completely
low and they’re facing too much
competition which is spread advertising
dollars really soon yeah so basically
whether it was craigslist or not that
site did take a hundred billion dollar
classifieds industry and turn it into
like a hundred million dollar industry
so obviously what do we always say the
internet shrinks industries use
craigslist came out and they basically
shrunk the classifieds industry okay you
touch on a lot of great points when we
started watch module one of the main
sort of objections to the site was why
produce content why produced
professional
premium content for the web and I said
listen user-generated content
particularly citizen journalism is going
to have a big impact on you know the
news industry and we’ve seen it in Egypt
and Tunisia and any other crazy parts of
the world or when there’s an earthquake
people are tweeting about it before the
news you know CNN updates it so you’re
right that that basically I think
citizen journalism really I think had a
big impact look at CNN CNN is growing
and it has ambitions to take over the
world yet they’re laying off some
journalists why because of I report and
as much as I report was like a dinky
little idea at first we were like what
the hell is this there is some good
stuff coming out and I think citizen
journalism and the news industry is one
segment where ugc is very powerful and
and does eat away at it now let me ask
you this what what industry missed the
boat most on technology is it the news
the news so that’s the newspapers as
well as the lifestyle entertainment
magazine print let’s say just put print
all together because you could sort of
branch off you know news from magazines
but let’s just put all print together so
who missed out more print or music I’m
probably going to have to say print if
only because a lot more publishing
companies have gone belly up the music
companies music companies have been
losing money but they’re still there and
I think part of the reason is is the
difference in the kind of product they
sell you know you buy an album you’re
going to go back and listen to it over
and over and over there you buy today’s
edition to the newspaper you’re not
going to look at it after two days it’s
very interesting I disagree with you I
think that the the print sort of the
articles and texts and and think of you
know like think of all the images that
these companies have that is very
valuable to move online without a doubt
but I think the music industry missed
about more and i’ll explain news is
fundamentally a commodity we agree like
I mean news as a commodity so I think if
you were to take that commodity and then
put it on the internet there would be
and let’s say whether you said it’s
going to be an ad-supported model or
it’s a subscription-based I think there
is way too much similar quality content
out there that users will not pay for
the subscription and in the ad model
we’ve seen what’s happened with the
explosion of ugc on with video is there
so much supply that ad rates go down so
i think the newspaper industry was
just you know it was the first sort of
industry out there it was a print
industry it’s been around for 150 years
more if you go back to depending on what
you call news frankly but let’s say the
news of the Hursts you know and like
that era it’s been around for a hundred
fifty years it was bound to be disrupted
it was it was like a tree it was too fat
it got too many layers too many
inefficiencies and the internet was
gonna disrupt that I think the reason
why the music industry missed the boat
more is because the music industry does
not have a commodity it’s actually
unique you’re right that you buy an
album you listen to it 50 times but
those are unique assets right people
would pay look at what Steve Jobs
discovered that people would pay for
music they would pay for super premium
content so I think they missed out the
board they missed out more now let me
give you just a little anecdote in
2000-2001 when I started my career I was
a resident interviewer in a previous
lifetime and I remember interviewing
three doors down remember kryptonite 3
door okay so at the zenith of napster
destruction of the music industry so
around 2000 2001 guess what was the most
downloaded song of the year illegally
kryptonite the bingo jackpot you win
nothing not kidding it was kryptonite
guess what was the most sell to the
highest selling album that year that
same album that same album right so I
mean is it an anecdote is that who does
does does you know causation cause what
I gotta know various causation right
there you know here you have an album
that’s I was I’m all night researching
this flight I’m kidding but mr. well no
you just in that case you had an album
that’s in high demand so you and at the
height of Napster was just the beginning
of music disruption really if you think
about it so the only real a tight shot
of baileys every time we use the word
disruption on today’s show do you have a
bottle of listen we should I was getting
close to Christmas we like it sorry
alright anyways so you know this music
piracy was really just getting getting
started it’s changed a lot since then
but it was a popular song so of course
it’s going to be both the most
downloaded and the most purchased songs
i’m sure you can see the same trend but
very much all due respect it not
necessarily it could be the most
downloaded song but then why would the
argument against the album the argument
that a lot of like the sort of web to
you know hippies we say is oh
it’s the music industry they’re a bunch
of dumb rocks they put out these albums
that nobody wants they really just want
one or two songs well if that’s the case
you wanted kryptonite and i don’t know
like sulfur or whatever the other song
was but the fact that people still went
out and bought the album I just think
speaks to the fact that agree or
disagree about causation correlation I’m
just saying that the music industry
really missed out the boat and I think
part of it goes back to what Doug more
is currently CEO chairman of Sony but
probably before CEO and chairman of
universal he’s like this is not our
expertise digital music it’s like you
know bringing a dog to us and saying
operate you know give it a triple bypass
surgery it’s not our expertise and I’m
like what the hell like well then why
were you not hiring the people that
understood digital music because that I
think is the one area that in hindsight
they could have had a great ad model and
they could have had a great subscription
model and the fact that right now you
got the pandora’s and the spotify is in
the crap stirs that are eating away and
creating that value it should have been
the record labels so just another lesson
to be served that if media companies the
TMC’s traditional media companies are in
this position where they’re sort of
caught between a rock and a hard place
it’s because they’re both greedy and
stupid and I’m not saying that to be
rude I’m saying that to tell them wake
up you got a big opportunity stop being
so defensive stop being so you know
backwards anyway anything else before we
move to the next segment I still
disagree but let’s move on to investors
on we’ll be right back why don’t vc’s
invest in content
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