Category Archives: Reality checks

Me And Mr. Jones

You might have read the news this morning that Apple has banned Alex Jones and Infowars from their podcasting platform. They join Facebook, Spotify, and YouTube in tossing this material off their distribution channels. Some of you will see this as a political move, stifling free speech. I don’t want to look at it that way today. Instead, I’d like us to focus on some business issues.

If you’re not familiar with Mr. Jones, he’s a conspiracy theorist who has claimed, among other things, that the murders at Sandy Hook Elementary School were staged by paid actors and that the government is poisoning children to make them gay. Do you remember a guy walking into a pizzeria with a gun to free the children being held there as part of a sex ring? An Alex Jones listener, who heard that the Clintons were running the ring on Alex Jones’ program.

Following the ban, some folks are yelling about freedom of speech and the First Amendment. Sorry folks. Some speech is not protected. I can’t make things up about a product and knowingly advertise false information. I can’t yell “fire” in a crowded theater. The most relevant type of speech that’s not protected is this:

Government may prohibit the use of “fighting words,” which is speech that is used to inflame another and that will likely incite physical retaliation. Likewise, language that is meant to incite the masses toward lawless action is not protected. This can include speech that is intended to incite violence or to encourage the audience to commit illegal acts. The test for fighting words is whether an average citizen would view the language as being inherently likely to provoke a violent response.

That’s exactly why this material was banned. It violates the platforms’ terms of service. Frankly, it disappoints me that it’s taken so long and it raises a business point we all need to consider.

Section 230 of the Communications Decency Act protects platforms from liability when people publish on their platform. This prevents me from suing a platform when a third-party writes something completely false about me, and it’s a great idea. The problem is that too many platforms hide behind this, feeling as if they begin moderating the obviously false or hateful content that they might, in fact, become liable. In doing so, they open the platform up to become a megaphone for hate and disinformation. Most importantly, it damages their reputation and turns off users. Look at what has happened with Twitter. The word I hear most often when people describe it is “cesspool.” To their credit, Twitter management is acting to clean it up (finally) but a lot of damage has already been done.

Any of us in business need to do more to protect our brands and businesses than the minimum legally required amount. Being corporately responsible is proactive. Remember that there are other channels through which Mr. Jones or any other content provider can distribute their information. That doesn’t mean I have to allow him or anyone else into mine, just as you don’t need to permit anyone into your retail store who you find potentially troublesome – a suspected shoplifter, for example –  as long as it is not based on bias against a federally protected class of people. I need to be clear about that to my users (we don’t welcome hate speech or knowingly false information here in your terms of service, perhaps).  Most importantly, I need to be responsible and do the best I can to do the ethically correct thing. Not because I dislike what it is you have to say, but because it’s a hate-filled lie.

Your thoughts?

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Filed under digital media, Reality checks, What's Going On

What, Me Worry?

If you follow the TV business at all you’ve probably noticed a bunch of recent articles about the acceleration of the cord-cutting phenomenon. This article from Business Insider is typical, as are the results:

In a recent Business Insider survey of 104 teens nationwide, only 2% of Gen Zs said that cable is their most-used choice for video content. Nearly a third said YouTube is their most-used source for video content, and 62% say streaming excluding YouTube, including Netflix or Hulu, is their most-used.

What’s happening is that many younger folks who once purchased a cable TV subscription are no longer doing so, and the pace at which that’s happening is rising quickly. As one piece noted,  “roughly 5.4 million Americans are expected to cut the TV cord this year, thanks largely to the rise in cheaper, more flexible streaming TV alternatives.” Is that significant? Oh yes:

According to eMarketer’s latest figures, the number of cord-cutters—adults who have ever canceled pay-TV service and continue without it—will climb 32.8% this year to 33.0 million. That’s higher than the 22.0% growth rate (27.1 million) projected in July 2017.

That’s a lot of money leaving the building, and yet there doesn’t seem to be widespread panic among the cable providers. Why not? Because they people who are cutting the cable cord are locking themselves into the broadband cord, and that, dead readers, is an even better deal for the cable guys. Why? Well, think about your own situation. I’ve got two options for TV service here – one cable, one satellite. Neither is appreciably different. The satellite is a bit less expensive but service craps out in bad weather so although it has some unique content and 4K, it’s not perfect. If I decide to cut the cord and take some TV over the air and stream the rest, I have only ONE option to get true broadband service, and that’s how most US markets are as well.

How this came to be is laid out in this Techdirt piece and I won’t repeat what they have to say. The short answer is that natural monopolies have developed and they’re not going to go away. Even if some company tries to enter the market (as Google Fiber did), the time to build the service is lengthy. Laws have been passed to prevent municipalities from entering the market and providing competition as well.

Given my druthers, I’d rather be a broadband provider than a cable TV provider. Your programming costs are almost non-existent, you know a lot more about how your customer is using the service (your ISP knows all, your cable TV guy is just figuring out how to track you accurately), your margins are great, and you probably won’t have any competition despite lousy customer service and usage caps. Who are the big broadband providers? Yep, the same cable guys who are “suffering” from cord cutting. You think they’re worried?

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Filed under Huh?, Reality checks, Thinking Aloud

Bad Boys And Brands

Happy Foodie Friday! There’s been a food-related story making the headlines this week and I think it reflects something that can be useful to any of us in business. The founder and chairman of Papa Johns Pizza had to step down this week after he admitted to using the N-word in a company conference call. It has sparked a public relations crisis and it’s not the first one his actions have caused. You might remember that he also weighed in on the controversy surrounding NFL players and their kneeling during the national anthem. While he certainly wasn’t the first sponsor to criticize a league, doing so over an issue that went way beyond the league itself resulted in a public relations issue for the brand.

While I’ve never been a fan of Papa John’s pizza, his bad behavior made me all the more certain I’d never eat it again. One person whose food I am a fan of is Mario Batali. Even so, I’ll not be going to any restaurant associated with him. His bad behavior caused him to “step back” from his restaurant empire following the first public allegations of sexual misconduct. That was followed up by a 60 Minutes story. Even so, he hadn’t completely divested himself of a financial interest, and that certainly affected the brand, so much so that three of his restaurants on the Las Vegas Strip are set to close even though they were doing well.  The local partner in these restaurants, Las Vegas Sands Corp., decided to end the relationship with Batali’s organization.

Why do I bring this up? Because every one of us in business is a celebrity on some level. We might be nationally known or maybe it’s just our customers, partners or employees who consider us famous. Our actions can enhance or damage our personal and corporate brands every day and we need to remember that no incident remains quiet or hidden for very long. Nearly every person is holding a camera and a video recorder in their hands and bad behavior rarely goes unnoticed or unpublicized.

There was a restaurant I patronized on a regular basis. The food was OK if unextraordinary, the prices were reasonable but the owner was a great guy. I loved spending a little while with him every time I went and I kept going back because he took great care of me as well as did good things in our community. We are our brands, and how we act can damage that brand as badly as a misplaced ad or a faulty product. Enjoy your weekend!

 

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Filed under food, Helpful Hints, Reality checks