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Building the Information Valet Economy Sustaining news and information through a shared-user network http://www.Informationvalet.org http://www.ivpblueprint.org Bill Densmore Reynolds Journalism Institute Missouri School of Journalism Columbia, MO [email_address] October 10, 2008

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Show summary <ul><li>What is RJI? </li></ul><ul><li>What is IVP? </li></ul><ul><li>What’s the problem for journalism? </li></ul><ul><li>Strategic convening </li></ul><ul><li>Solutions posed </li></ul><ul><li>Explain project/system </li></ul><ul><li>How do we pull this off? </li></ul>

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Who are we? <ul><li>Donald W. Reynolds Journalism Institute </li></ul><ul><ul><li>Just opened research center </li></ul></ul><ul><ul><li>$32M initial grant from DW Reynolds Foundation </li></ul></ul><ul><ul><li>Six fellows / year, four outside </li></ul></ul><ul><ul><li>Research on sustaining, redefining, advancing journalism </li></ul></ul><ul><li>Who is Densmore – RJI Fellow </li></ul><ul><ul><li>2008-2009 leave from UMass Amherst </li></ul></ul><ul><ul><li>( www.mediagiraffe.org ) </li></ul></ul><ul><ul><li>Career journalist, publisher, entrepreneur </li></ul></ul>

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“ The evidence is mounting that the news industry must become more aggressive about developing a new economic model.” --Project for Excellence in Journalism, The State of the Media 2007 Problem recognition

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“ ‘ Long term, we've got to get paid for news (online) or we can't keep producing it,’ [Singleton] said. But he said that it has to be an industry-wide solution and not just one paper acting alone.” -- Dean Singleton, CEO, Media News Group Posted April 28, 2006 at: http://www.twincities.com/mld/twincities/business/14446579.htm Problem recognition

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What is the IVP? <ul><li>New relationship among news orgs / consumers </li></ul><ul><ul><li>Personalized info from anywhere </li></ul></ul><ul><li>Assemble a coalition of publishers, advertisers, technology and financial-services companies in a federated-authentication / shared-user network for internet information commerce. </li></ul><ul><ul><li>Compensation for ad views </li></ul></ul><ul><ul><li>User-centric demographic management </li></ul></ul><ul><ul><li>A way to pay / one ID etc. </li></ul></ul>

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Strategy convening Dec. 3-5, 2008 Columbia, Mo. www.ivpblueprint.org Blueprinting the shared user/value network Teams to form on marketing (research), advertising, governance, network/payments, technology, content, user experience . . . what else?

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“ We must change how we charge for content . . . One-size-fits-all on the business side has to evolve. Tiered pricing with premiums for timeliness or comprehensiveness is one option.” - Tom Curley, AP CEO, Nov. 10, 2007 Solutions

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“ . . . [T]he more time I’ve spent on this, while I think there are legal things, enforcement things, etc., etc., they are not the meaningful way to fight piracy. The meaningful way to fight piracy is you need to give consumers legitimate options to get what they want.” -- Peter Chernin, president, News Corp. Aug. 4, 2008, interview with Charlie Rose Solutions

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“ Maybe the solution isn't to escape the market, but to empower it. Modern computing offers unparalleled capacities to track and calculate. Imagine a vast menu of news and commentary offered to you ad-free for pennies per item, the charges micro-billed, added up and presented like a utility bill at month's end. -- Edward Wasserman, Washington & Lee Univ. Miami Herald column published Feb. 18, 2008 Solutions

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“ Buffet muses out loud: ‘The ideal combination would be if The New York Times, the Wall Street Journal and The Post had a joint web site, and you couldn’t get any one individually. That, you could sell for a fair amount of money, and it would have one hell of a readership.’ ’’ -- Warren Buffett, quoted in Fortune Magazine, July 26, 2007 / http://money.cnn.com/magazines/fortune/fortune_archive/2007/08/06/100141340/ Solutions

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“ What will happen next is that the audience will say: If you’re going to sell us to advertisers, then you’ve got to pay us. And that’s the long-term challenge that I think newspapers are going to be facing.” -- Paul Maidment, exec. Editor, Forbes Magazine Interviewed during “On the Media,” Feb. 25, 2005 http://www.onthemedia.org/yore/transcripts/trnascripts_022505_aboutface.html The value of one

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How it works -- consumer <ul><li>Consumer chooses Information Valet – such as a newspaper – to entrust demographic information. </li></ul><ul><li>Valet manages user’s relationships with other websites or devices in shared-user network. </li></ul><ul><li>Consumer compensated for ad views, and by easy access to special services (including music, entertainment). </li></ul>

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The Information Valet … <ul><li>Helps consumer negotiate use of personal information for customization, rewards for ad views, payment for special services. </li></ul><ul><li>Relies on network authentication and logging service to exchange payments, info among participating valet hosts and vendors. </li></ul><ul><li>Benefits from commerce and negotiated identity layer added to Internet. </li></ul>

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Broader concept <ul><li>Collaborative system owned by valets and vendors who are not equity stakeholders – non-threatening because it cannot be “rolled up” by a dominant player </li></ul><ul><li>Establishes value for the delivery of specialized audiences, and rewards gateway sites for providing this service </li></ul><ul><li>Demographics are shared based on the opt-in permissions set by consumers </li></ul>

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Key results <ul><li>Update role, effectiveness, compensation for online advertising through personalization </li></ul><ul><li>User privacy/profile management controlled by the consumer. </li></ul><ul><li>Online users to easily share, sell and buy content across multiple Web sites with one ID, password, account and bill. </li></ul>

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RECAP: Situation Today <ul><li>Journalism is expensive, and mass-market web advertising alone will not sustain it </li></ul><ul><li>Single-site subscriptions for content puts up walls that destroy the unity of the open web </li></ul><ul><li>Sustaining journalism requires rethinking the very notion of news as a service, not a product </li></ul>

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The Situation Tomorrow <ul><li>The news industry becomes a trusted and ubiquitous advisor, authenticator and retailer of all web content </li></ul><ul><li>Audiences are measured through a federated network that also tracks and shares revenues for ads and content </li></ul><ul><li>Consumer controls demographics, and can be rewarded for looking at ads and sponsored content. </li></ul><ul><li>Sophisticated pricing and bundling options give consumers more buying power by subscription or per click </li></ul>

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For Consumers <ul><li>A single user ID that works everywhere </li></ul><ul><li>Get paid for viewing ads </li></ul><ul><li>One-stop method for buying text, music, movies, services </li></ul><ul><li>One bill for all online content purchases </li></ul><ul><li>Privacy controls to protect personal data </li></ul><ul><li>A more personalized online experience </li></ul><ul><li>Faster, easier access to the content you want </li></ul><ul><li>Opportunities to exchange personal data for access to premium content </li></ul>

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For Valets <ul><li>Valets compete to be best at meeting consumers’ diverse information needs </li></ul><ul><li>Each valet is compensated for finding, shaping and referring audiences </li></ul><ul><li>Valets help advertisers present targeted messages to end users who opt-in </li></ul><ul><li>Internet advertising becomes more valuable </li></ul><ul><li>Convert 50M newspaper customers to web-info customers </li></ul>

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HOW IT WORKS <ul><li>Flash animation shows flow of information from consumer to websites to network authentication and logging service. Key points: </li></ul><ul><li>No permanent central user database </li></ul><ul><li>Only enhanced log report saved for periodic settlement </li></ul><ul><li>User controls level of demographic sharing </li></ul><ul><li>ANIMATION: http:// tinyurl .com/4amatq </li></ul>

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Project tasks <ul><li>Convene cooperative members </li></ul><ul><li>Form, capitalize association </li></ul><ul><li>Manage network/technology build </li></ul><ul><li>Establish rules for enumerating, exchanging value </li></ul><ul><li>Assure privacy; opt-in demographic sharing </li></ul><ul><li>Contract some operating pieces </li></ul>

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Potential results <ul><li>New revenue sources unlocked (wholesale/retail); personalized ads/services </li></ul><ul><li>Users get a simplified, personalized web experience </li></ul><ul><li>News organizations paid as service providers – gateways to premium ($$) or sponsored (ads) info anywhere </li></ul>

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What can you do? <ul><li>Help identify founding collaborators </li></ul><ul><li>Invent new forms of ad personalization/targetting </li></ul><ul><li>Assert that news has value or it goes away </li></ul><ul><li>Be creative about originating, remixing information that’s unique, needed </li></ul>

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Building Info Valet economy Thank-you! Sustaining news and information through a shared-user network http://www.informationvalet.org Bill Densmore [email_address] Donald W. Reynolds Journalism Institute November 3, 2008 573-882-9812