The Opaqueness of Transparency

It isn’t just perception.  Partisan politics in the U.S. really is worse than ever, if we’re to take the word of those who’ve been on the inside for the last 40 or so years. I was listening to an audio version of Tom Brokaw’s book The Time of Our Lives recently, and hearing him describe today’s dysfunctional intransigence in Washington, I began to wonder why, in the age of so much transparency and mass communications, do matters appear to be getting worse? More to the point, is it possible that we’ve created an illusion of transparency while ignoring the fact that the way we tend to use digital media produces the opposite of rational and cordial discourse among both the electors and the elected?

Brokaw writes, “…modern means of communication are now so pervasive and penetrating, they might as well be part of the air we breathe and, therefore, they require tempered remarks from all sides.  Otherwise that air just becomes more and more toxic until is is suffocating.”  Sounds a lot like the blogosphere to me.

Those who vehemently pursue transparency through technology — everyone from hacktivists to open-government scholars– offer the premise that transparency through Web technology is not only good, but a near panacea to our political ills.  And while we certainly don’t want to see our elected officials get away with crimes and misdemeanors, I’m not convinced that the theater of rapid-response outrage we’ve created does much to thwart real mischief so much as it incubates some of the more toxic viruses in day-to-day governance — namely blind partisanship and associative reasoning.

The promise of transparency is meant to be an independent voter’s ideal — that with digital access to real data, one can make unbiased decisions based on the particulars of a given situation. In theory, information trumps partisanship. Through on-demand access to raw information and fact-checks, the argument goes, we can more accurately judge our elected officials as individuals rather than broadly associating them with the views of a particular party.  So why does our national dialogue sound more and more like a cacophony of lunatics?

One problem with the case for this kind of transparency is that it assumes data are neutral, which is a very techie point of view because to a computer, of course, data are neutral and interpreted by a fairly rigid code. In human affairs, and politics in particular, data are subjective and interpreted by a code called emotion that is both subjective and dynamic. Computers like data, humans like stories. That’s why an editorial about a proposed bill in congress beats reading the bill itself and a catchy, 140-character headline beats both.

While access does exist to unbiased, raw data, this access seems to have very little to do with how Web 2.0 is affecting our political evolution. To the contrary, social media is highly emotional and is referred to as a “hive mind” for good reason. Hence, the instinct to react, not only as individuals, but as mobs has been given an outlet through these technologies.  What we often end up with is our worst political instincts on speed pretending to be a more enlightened process.  If anything, the way we use social media and blogs seems to foster more associative reasoning, which allows (or forces) all issues to be painted with very broad brushes. This is the opposite habit that transparency is meant to produce.

Look at the way the tech blogs lit up last week over Rep. Lamar Smith’s appointment to the chairmanship of the House Science Committee.  It’s one thing if Representative Smith has a dodgy record on actual science, but TechCruch and others ran headlines decrying the appointment because Smith was the lead author of SOPA.  Even if you hated that bill for what it was, calling it anti-science or anti-technology makes as much sense as calling speed limits anti-Lamborghini. It’s a straight-up cheap shot with a clear political agenda. After all, Smith is a Texas republican and the author of SOPA. So, attacking him is good for scoring points among progressives, who will never bother to make the distinction that SOPA had nothing to do with science; and neither will they bother to look up Smith’s record on science issues, even though they could with a couple of mouse clicks.  In this case, the tech blogs are behaving much like FOX News, looking at all stories through a single filter.

I bring up this example because it’s recent, but also because some of those bloggers are the same folks who proclaim the unmitigated value of transparency while using the technology to promulgate more of the opaque, associative political nonsense that makes our politics so dysfunctional.  As a side note, Smith’s record on science is relatively unclear at this point, other than past remarks doubting the veracity of some climatologists; but let’s not confuse that with bills designed to stop an international criminal enterprise, shall we?

What we think of as transparency is often a lot of reactionary noise that can literally be a barrier to a better functioning representative government. Sure there are a lot of folks in congress with some pretty wacky ideas, but why does it seem that even moderate representatives can’t sit down to rationally discuss issues that shouldn’t even be partisan in the first place? Might the digital, global microscope be a cause for divisiveness itself?  We have to imagine governing — and heaven forbid compromising! — in an environment where every syllable, every meeting, every gesture inspires instantaneous, and often erroneous, condemnation that goes viral.

Mass media, especially the blogosphere, demands conflict because humans like stories.  But representative government can only function through compromise and cooperation, which fails to satisfy multiple constituencies at any given moment — and now, they’re all on Twitter. Hence, it seems only one of two things can result from all this so-called transparency:  1) that governance stalls; or 2) that functional governance can only happen in even greater secrecy than we had before the digital age.  It certainly wouldn’t be the first time technology has produced exactly the opposite conditions it promised.

It’s true that with a lot of time and effort, we can use the Internet to look objectively through a clear glass at our politics; but I suspect that most of the time, the window is truly opaque and that we’re always seeing at least a half reflection of ourselves.  If the people’s representatives are dysfunctional, then it’s possible that the people are as well.  The question remains as to how the design of these technologies might be playing a role in that dysfunction.

Talking Branded Entertainment with Filmmaker Amy French (Podcast)

There are a lot theories and a lot of experimentation with regard to independent filmmaking, the digital age, and the prospects for redefining the ways in which filmed entertainment can be funded by sponsors and distributed over the web.  I thought it would be interesting to talk to Amy French, an old friend who is a writer, filmmaker, and actress who has experience in the world of traditional TV commercials, in independent feature filmmaking, and is now working in the world of branded entertainment. Amy and her colleagues just released her first project in this format — a humorous mockumentary style  series for California brand Umami Burger. You can watch Episode 1 of “The Fifth Feeling” below and watch the rest of the series at funnyordie.com.

I spoke to Amy in Los Angeles via Skype.  See podcast player below.

For more information about Amy and her work, visit www.ameliafrench.net.

Pandora Isn’t Exactly Struggling

Yesterday, on Capitol Hill, the House Judiciary Committee held a hearing to discuss the Internet Radio Fairness Act, a bill largely backed by Pandora Media, Inc. and opposed by a growing number of musicians and songwriters.  In fact, I recommend Chris Castle’s excellent synopsis of the message taken to The Hill by a handful of songwriters.  If you want legal context for understanding the IRFA, I’ll direct you to Terry Hart’s Brief History of Webcaster Royalties, but if that’s more nitty and gritty than you want to know, consider this:

In defense of Pandora’s position that internet radio services should pay lower license fees to musicians and songwriters in the interest of “fairness,” you’re likely to encounter the bullet point that “Pandora isn’t even profitable yet,” conjuring an image of some fledgling, innovative enterprise trying desperately to survive within an outdated system.  But as a guy who grew up around the motion picture industry, knowing something about the shenanigans of some producers, I know that literal profitability ain’t necessarily the same thing as everybody making buckets of money.

Keeping in mind that Pandora, like so many internet-based services, is basically a means by which software delivers a product that someone else has invested to produce, I had to wonder what kind of costs other than licensing Pandora has to cover while it is supposedly staggering toward profitability. Not surprisingly, according to the income statement on Yahoo Finance, the Operating Expenses shows two lines:  R&D at a mere $130k and Selling General and Administrative at just over $249 million.  This is from January 30, 2012 against revenue of just over $274 million.  Presumably, the cost of licensing music is part of this second line item along with basic overhead like rents, servers, etc.  But the rest is salaries and bonuses.  What else do they have to pay for?

Now, when an ordinary entrepreneur thinks of a business that isn’t profitable yet, he thinks in terms of continually reinvesting in his business, keeping his own and any other founders’ salaries in check while growing that business and pouring in a ton of sweat equity.  It just so happens that this is exactly what a songwriter, performer, or emerging new band does most of the time.  But web entrepreneurs have a history of making money while losing value.  Remember the Dot Com bubble?  There was plenty of loss, but plenty of start-up founders also made out like bandits in the process.  Failing with a few million in one’s pocket would be an artist’s dream because the nature of the work is so fickle, but I digress.

The top five executives at Pandora, not including founder Tim Westergren, earn combined salaries of just under $3 million, although CTO Thomas Conrad had exercised stock options of $5.9 million as of the January 30 report.  Mr. Westergren is worth an estimated $100 million.  According to Pandora’s own statements, it paid “50% of its revenue in fees” last year.  Assuming this is true, that’s $137 million, plus the $3 million in top executive salaries, plus some unknown number to Tim Westergren, but let’s estimate that there’s at least $100 million or so left for other expenses, including the salaries of 530 employees.  Divided evenly, which of course it is not, that would be annual salaries of over $180k per employee.

So, there is a world of difference between a company being profitable and those in the company making lots and lots and lots of money.  If Pandora fails because, as it claims, the licensing fees are unfair, then many people involved with the company will walk away having failed upward.  Meanwhile, it won’t take long for a new internet radio service to appear — one that can be profitable without exploiting the people and companies who make the real investments in the products that make radio function in the first place.