The network honchos called by
Louisiana Representative Billy Tauzin and the House Energy and
Commerce Committee to testify on the election night debacle were a
decidedly ungrateful bunch. True, they were forced to sit through a
video of their billion-dollar babies making idiots of themselves.
(Watching Dan Rather offering "a big tip and a hip, hip, hurrah and a
great big Texas howdy to the new President of the United States," and
instructing viewers to "Sip it. Savor it. Cup it. Photostat it.
Underline it in red. Press it in a book. Put it in an album. Hang it
on the wall," more than once ought to be considered cruel and unusual
by anyone's standards.) And how rare it must be that anyone, much
less mere members of Congress, would dare keep these boys cooling
their heels for a full five hours before finally bringing them
forward to demand that they swear to tell the truth, the whole truth
and nothing but the truth--in public, no less. But really, all the
"concern" and "uneasiness" voiced by the execs about government
meddling in the news was a bit much. There was never any danger to
the networks' independence in Tauzin's hearings; at least none that
originated from Congress, rather than their own parent
Tauzin, a Democrat turned Republican, originally
professed to possess an "analysis" that indicated "in almost every
case, [the networks] favored early calls for Al Gore over George
Bush." Absent any evidence, however, he withdrew the charge of
intentional bias and retreated behind a mysterious theory of "flawed
data models" and "biased statistical results" that happened to favor
Democrats. He offered no evidence this time either, but almost all
reporters felt duty-bound to repeat his nonsensical accusations.
Hence precious little attention was focused on more concrete
election-coverage questions, most notably Fox's decision to rely on
the analysis of John "I can't be honest about [my cousin George W.
Bush's] campaign.... He's family, and I'm for him" Ellis. And
needless to say, there was no time left for an examination of the
corrupting effect of the networks' interlocking structure of
Had Tauzin and company really tried
to censor or intimidate the networks, that would have been
interesting, but it is damn near impossible to imagine. As a
comprehensive report on media lobbying by the Center for Public
Integrity demonstrates, when it comes to mutual backscratching, the
primates in the National Zoo have nothing over the networks and
Take Tauzin, for instance. According to the CPI
report--which might as well have been classified "top secret" for all
the attention lavished on it by the media it exposes--the cagey Cajun
received more PAC money from media companies than anyone else in the
House, including more than $150,000 from entertainment and
telecommunications companies for his 2000 campaign, in which he had
no credible opponent. Moreover, no member of Congress has traveled
more frequently on the media industry's dime. Between 1997 and 2000,
Tauzin and his staff took a total of forty-two trips--one out of
eight industry-sponsored junkets taken by members of Congress during
that period. In December 1999 Tauzin and his wife enjoyed a six-day,
$18,910 trip to industry "meetings" in Paris. Representative John
Sweeney managed to make the same trip for a mere $7,445. How can
Tauzin act as an honest broker for the networks filling his pockets?
Easy: He simply does not believe in the concept of conflict of
interest. "I have no choice but to do effective oversight," he says
by way of explanation. Tauzin's view is hardly unique. His successor
as chairman of the House Telecommunications Subcommittee, Fred Upton,
has a portfolio worth millions in those very same
Again, we are seeing nothing unusual here,
except perhaps gumption. In 1999 alone, according to the CPI, the
fifty largest media companies and four of their trade associations
coughed up more than $30 million to lobby Congress, an increase of
26.4 percent in three years. Since 1993, they have given more than
$75 million in direct campaign contributions, according to the Center
for Responsive Politics. And the numbers tell just a small part of
the story. These fellas are not just selling toasters, after all. As
former FCC chairman Reed Hundt has explained, more important than the
industry's money is the perception of its "near-ubiquitous, pervasive
power to completely alter the beliefs of every American." Politicians
fear that if they displease these companies, they will simply
"disappear" from view.
And what do the media want in
exchange for this largesse? They want to be left alone so they can
make themselves and their stockholders rich, regardless of their
impact on American democracy. To take just one example, according to
data collected by Competitive Media Reporting, politicians and
special interests spent an estimated $600 million for paid political
ads in the last election cycle, which makes the $11 million or so the
National Association of Broadcasters and five media outlets
cumulatively spent between 1996 and 1998 to defeat campaign finance
reform look like a prudent investment. Note, by the way, that John
McCain, the heroic white knight of campaign finance reform, who
raises more money from the media companies than even Tauzin, was
crucial to the media companies' successful effort to kill the FCC's
plan to force a lowering of the cost of political commercials, the
primary culprit driving the vicious election/money
With Michael Powell as George Bush's new appointee
to head the FCC, the networks might not even have to bother lobbying
Congress anymore. Powell signaled his own expansive definition of
conflict of interest when he refused to recuse himself from the vote
approving the merger of AOL and Time Warner, despite the fact that
his father, Colin Powell, stood to make millions from the stock he
received as a company director. (I don't suppose he opposes the
repeal of the estate tax, either.)
"We don't look to the
government to correct the press. We look to the people," explained
ABC News president David Westin to Tauzin's committee. "If we fail,
the audience will judge us and move somewhere else." I'm thinking
They distort. They decide.
On self-help books.
industry has been celebrating the supposed defeat of Napster. The
Court of Appeals for the Ninth Circuit has affirmed the grant of a
preliminary injunction that may well have the effect of closing the
service down completely and ending the commercial existence of
Napster's parent (that is, unless the record companies agree to an
implausible deal Napster has proposed). But despite appearances, what
has happened, far from being a victory, is the beginning of the
industry's end. Even for those who have no particular stake in the
sharing of music on the web, there's value in understanding why the
"victory"over Napster is actually a profound and irreversible
calamity for the record companies. What is now happening to music
will soon be happening to many other forms of "content" in the
information society. The Napster case has much to teach us about the
collapse of publishers generally, and about the liberative
possibilities of the decay of the cultural oligopolies that dominated
the second half of the twentieth century.
The shuttering of
Napster will not achieve the music industry's goals because the
technology of music-sharing no longer requires the centralized
registry of music offered for sharing among the network's listeners
that Napster provided. Freely available software called OpenNap
allows any computer in the world to perform the task of facilitating
sharing; it is already widely used. Napster itself--as it kept
pointing out to increasingly unsympathetic courts--maintained no
inventory of music: It simply allowed listeners to find out what
other listeners were offering to share. Almost all the various
sharing programs in existence can switch from official Napster to
other sharing facilitators with a single click. And when they move,
the music moves with them. Now, in the publicity barrage surrounding
the decision, 60 million Napster users will find out about OpenNap,
which cannot be sued or prohibited because, as free software, no one
controls its distribution and any lawsuits would have to be brought
against all its users worldwide. Suddenly, instead of a problem posed
by one commercial entity that can be closed down or acquired, the
industry will be facing the same technical threat, with no one to sue
but its own customers. No business can survive by suing or harassing
its own market.
The music industry (by which we mean the
five companies that supply about 90 percent of the world's popular
music) is dying not because of Napster but because of an underlying
economic truth. In the world of digital products that can be copied
and moved at no cost, traditional distribution structures, which
depend on the ownership of the content or of the right to distribute,
are fatally inefficient. As John Guare's famous play has drummed into
all our minds, everyone in society is divided from everyone else by
six degrees of separation. The most efficient distribution system in
the world is to let everyone give music to whoever they know would
like it. When music has passed through six hands under the current
distribution system, it hasn't even reached the store. When it has
passed through six hands in a system that doesn't require the
distributor to buy the right to pass it along, it has already reached
several million listeners.
This increase in efficiency
means that composers, songwriters and performers have everything to
gain from making use of the system of unowned or anarchistic
distribution, provided that each listener at the end of the chain
still knows how to pay the artist and feels under some obligation to
do so, or will buy something else--a concert ticket, a T-shirt, a
poster--as a result of having received the music for free. Hundreds
of potential "business models" remain to be explored once the
proprietary distributor has disappeared, no one of which will be
perfect for all artistic producers but all of which will be the
subject of experiment in decades to come, once the dinosaurs are
No doubt there will be some immediate pain that will
be felt by artists rather than the shareholders of music
conglomerates. The greatest of celebrity musicians will do fine under
any system, while those who are currently waiting on tables or
driving a cab to support themselves have nothing to lose. For the
signed recording artists just barely making it, on the other hand,
the changes are of legitimate concern. But musicians as a whole stand
to gain far more than they lose. Their wholesale defection from the
existing distribution system is about to begin, leaving the music
industry--like manuscript illuminators, piano-roll manufacturers and
letterpress printers--a quaint and diminutive relic of a passé
The industry's giants won't disappear overnight,
or perhaps at all. But because their role as owner-distributors makes
no economic sense, they will have to become suppliers of services in
the production and promotion of music. Advertising agencies,
production services consultants, packagers--they will be anything but
owners of the music they market to the world.
What is most
important about this phenomenon is that it applies to everything that
can be distributed as a stream of digital bits by the simple human
mechanism of passing it along. The result will be more music, poetry,
photography and journalism available to a far wider audience. Artists
will see a whole new world of readers, listeners and viewers; though
each audience member will be paying less, the artist won't have to
take the small end of a split determined by the distribution
oligarchs who have cheated and swindled them ever since Edison. For
those who worry about the cultural, economic and political power of
the global media companies, the dreamed-of revolution is at hand. The
industry may right now be making a joyful noise unto the Lord, but it
is we, not they, who are about to enter the promised land.
Young women, who've never lacked abortion rights, are tough to mobilize.
Radio station WBAI is under attack from within in order to silence radical dissent.
New recounts show that the wrong man is in the Oval Office.
The paper of record has a curiously difficult time reporting the 'Chinese espionage' case.
Michèle Montas, widow of journalist Jean Dominique, wants justice in Haiti.
Jason Epstein's Book Business: Publishing Past Present and Future is the third memoir of a major American life in book publishing to reach print in less than two years. It is at once a sign that the guard is changing and a recognition that the business has already changed. It is also, in the case of the 72-year-old Epstein, an opportunity to gaze into the crystal ball to predict the changes to be, something he has been rather good at during the course of his long career.
Simon & Schuster's Michael Korda got the triumvirate rolling in 1999 with Another Life, gossipy and entertaining and novelistic, like the books Korda often publishes. The New Press's André Schiffrin--famously ousted from Random House's Pantheon Books, the once independent imprint his father started--followed suit more recently with The Business of Books, the kind of polemic he has sometimes featured on his list [see Daniel Simon, "Keepers of the Word," December 25, 2000].
It's not surprising, then, that the tone pervading Epstein's memoir--which began with a series of lectures he gave at the New York Public Library, formed two essays in The New York Review of Books and was coaxed into a book by Norton president Drake McFeely--is cool and elegant and full of the gravitas of a man who wanted to be a great writer and instead ended up publishing many such, Morrison and Mailer and Doctorow among them.
He arrived at Random House in 1958, having deemed it time to leave Doubleday when he was prevented from publishing Lolita there. While at Doubleday he had founded Anchor Books and with it the trade paperback format in America. He retired as Random's editorial director in 1998, and during the four decades in between started the Library of America, a unified series of reprints of great American literature; The Reader's Catalog, a kind of print precursor to Amazon; and The New York Review of Books. He had a reputation as a brilliant editor but went beyond that to envisage change and make it happen, and in the process made himself into a pillar of the New York intellectual establishment.
"If I have any regrets, I can't think what they are," he declared during an interview recently, sipping homemade espresso at his large kitchen table in an opulent downtown apartment that could double as the upscale set for one of Woody Allen's Manhattan tales. He still edits authors he's been associated with but now does it from home. He prefers to be based there rather than in the Random corporate offices, wishes to put space between himself and an "increasingly distressed industry" mired in "severe structural problems." Prominent among them are a chain-driven bookselling system that favors "brand name" authors and often returns other new books to their publishers after only a few weeks on the shelves, before the titles have a chance to establish themselves; and a bestseller-driven system of high royalty advances that often do not earn back the money invested, a system that ratchets up unrealistically high sales expectations for new titles overall, and in so doing makes it increasingly difficult to publish certain kinds of books.
One-third of the way through his slim text, Epstein writes that his career has demonstrated an "ambivalence toward innovation." Ambivalence also pervades this elegiac book. Perhaps it is inevitable when a man looks back to his youth and forward to a future in which he will not play a major part, even if he is hopeful about that future. Perhaps, too, it is inevitable when confronting the distress signals of an industry he has spent his life in and clearly loves. Epstein shares his visions of a publishing future liberated electronically, but that future harks back to a deep-seated nostalgia, a longing for what was. His book seems to predict that technology in the form of the Internet will restore to the book business a certain lost rightness from the past.
His first chapter, like Dickens's Christmas tale, moves back and forth among past, present and future in an attempt to limn the larger changes of the past fifty years and what may yet unfold. The rest of the book is chronologically structured. It follows Epstein's career and the transformation of publishing from primarily small-scale, owner-operated enterprises rooted in the 1920s "golden age" of Liveright and Knopf to the "media empires" of today, which are forced to operate within an "overconcentrated," "undifferentiated" and fatally "rigid" bookselling structure. Now, he says, "there can't be Liverights or Cerfs because the context is so different. Roger Straus is the very last of them," and even he has sold his company to the German firm von Holtzbrinck.
Publishing must return to being "a much smaller business again," Epstein is convinced. "It has to, it's a craft and can't be industrialized any more than writing can. It's about to undergo a huge structural shift and there's nothing the conglomerates can do about it. The marketplace has shifted out from under them: the system of big money bestsellers defeats the possibility of building a sustained backlist. And without a sustained backlist, publishing cannot function in the long term. Providentially, just as the industry was falling into terminal decadence, electronic publishing has come along."
Epstein is in no way predicting the demise of print. Rather, his future is predicated on a kind of universal electronic Reader's Catalog, "much like Amazon" but far beyond it, "multilingual, multinational, and responsibly annotated. People will access it on their computers at home, in the office, and in kiosks like ATMs. It will be possible to browse those books, and downloading technology will eventually solve the problem of making it possible to buy those books. They won't exist in print until they're actually bought.
"There is no room on the Internet for middlemen, who sell the same product as their competitors, competing on the basis of price and service, and in so doing eat up their margins." Epstein is of course speaking of the Amazons and B&N.coms of today. "I think Amazon can't be here that much longer," says the man who sat at this same kitchen table doling out advice to its CEO, Jeff Bezos, a few years back.
As for brick-and-mortar stores, "the chains aren't tenable, either. They never were. The superstores have become what the old mall stores were. There are far too many of them, Waldens with coffee bars, and they will shrink. Stores run by people who love running bookstores will arise spontaneously like mushrooms and find a way to stay in business once the chains begin to recede."
And the conglomerate publishers? "I think they can show some financial progress for some years by cutting costs and cutting out redundancies, but eventually they'll find themselves with expensive traditional facilities that are increasingly irrelevant. They'll have to offload many functions on to specialist firms. In the end, they in turn will look for a buyer if they can find one. They should have noticed that the previous owners were all too happy to sell."
Meanwhile, authors will have found a way to bypass their publishers by going directly to the web. People will start independent authors' websites. Books will be much cheaper. Authors will have a much larger share of the revenue.
Stephen King has already gained notoriety in trying to do so. But the spectacular starting bang of Riding the Bullet, done in conjunction with his publisher, Simon & Schuster, attenuated when he tried to serialize online a novel, The Plant, on his own. A downturn in paying customers for the later chapters led King to abandon the project. Asked about this, Epstein insists, "It's like the days of the early cars that ran off the road into the mud. People said cars would never work. Well, one of these days e-publishing will work."
Of other experiments now being tried Epstein is openly dismissive, and he sees a kind of Darwinian process filtering chaff from grain. Mighty Words and similar online publishers "don't know what a book is," he contends. "But people know what a book is. Human beings are designed to distinguish value, and in my opinion that problem will take care of itself."
He disregards the tremors that have gone through the publishing houses ever since B&N.com announced it was getting into the business of publishing books. Barnes & Noble Digital was formed the first week in January to compete with the new electronic subsidiaries of traditional publishers, which are bringing out digital versions of new titles readable on PCs or dedicated devices, as well as original works specifically created for electronic distribution. In addition, they are digitizing backlist and out-of-print books that can be reprinted in very small quantities in a process known as print-on-demand."It's yet another premature entry," says Epstein. "B&N's publishing experience is limited to a remainder operation. That's entirely different from bringing out original works."
While Epstein criticizes the proverbial naysayers' laughing at those early cars stuck in the mud, at the same time he cautions, "I don't think an author who has worked hard to create something of value will want to risk it in the electronic format at this point." He says bookstores will wind up selling new titles at much lower prices than is now the case, $10 or so, but "can't figure out" how that will be done in the black. His predictions are compelling, but they are also much too vague--for instance, he sets out no time frame or actual mechanics for what he believes will transpire.
The bloat of the superstores is something publishers have worried about for years, almost from their rollout. This holiday season's flat sales at the three biggest chains; the margin-slashing of Amazon; and the re-energizing of the independent stores through a marketing program called Booksense, which includes web-based retailing, all serve to illustrate Epstein's points. Borders went so far as to put itself on the block, but found no willing takers. Recent murmurs about B&N's CEO Len Riggio entertaining a buyout offer from media conglomerate Gemstar-TV Guide International, which has aggressively entered the e-book technology market, did not result in a deal but also were more than simple gossip.
The past twenty years have seen the RCAs, MCAs, Advance Publications and the like learn their lessons and abandon book publishing, as Epstein has noted. Other conglomerates have already tried to offload their publishing components and in time will try again. But it also can't be ignored that companies like the German-based Bertelsmann (which acquired Bantam, Doubleday Dell and Random House and consolidated them) and von Holtzbrinck (which has bought Holt, St. Martin's and Farrar, Straus & Giroux) have their roots in the book business itself. They are therefore not as likely to exit the scene as Epstein would have us believe.
Undoubtedly, many of Epstein's electronic dreams are prescient and will one day come to pass. The companies that first turn them into reality, though, will likely be turning out works in the professional, scholarly, reference and educational sectors rather than in the trade world he knows so well. But although the Internet will change book publishing profoundly and in ways even Jason Epstein can't predict, other forces are at work as well and shouldn't be ignored.
A couple of years ago a brilliant and rich entrepreneur who also happens to be a profoundly bookish man devised a model, not unlike Epstein's nostalgic vision, of devolved companies publishing real books that share a central financial source. It is called the Perseus Group. It is still in its early days, far too soon to know whether it will last. But Epstein's longing for a more civilized, human-scale publishing business is shared by many. The Internet may help bring it about, but it won't do everything.