Old Media Falling Into The "Digeration Gap"

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Yeah, go on! Scoot! Nothing to see here!

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I'm a little confused here. Haven't magazines learned anything from the music industry?

Some questionable protests were recently made by Time Inc.'s CEO Ann Moore that are the epitome of what I'll call the "digeration gap." Apparently she preached at some college students that "good information costs money." By her own admission they started to throw shoes at her.

What should have been a newsflash for Moore turned out to be more of a bake sale challenge. Instead of walking away from that interaction with a renewed quest for finding a viable business model that works with emerging technologies and the evolving consumer climate, she gave lip service to the idea of a new model in one breath, while reinforcing her own perceptions in the next:

"I think it is time for Time Inc. to sit down and seriously think, what is the model? We are going to have to figure out a way to have paid content in the future."

Our little peek into Moore's business strategy speaks volumes. Time Inc. intends to look for answers by going back to the old business model: subscriptions. They're taking a move from the RIAA play book and repackaging it. They're not looking for a new way of doing things. They're looking for a new way to do it the old way.

What's happening at this critical juncture is that some really smart people are just not getting it. Yesterday's business model will not work now. And it really won't work tomorrow. But instead of being at the forefront of developing this new model, a lot of key executives are trying to bulldoze past it, hoping somehow it'll turn into fertilizer for their own crop.

So this is the digeration gap. The difference between people and companies who embrace the internet and the future of information, and the ones who are still in love with the way things were, and desperately hang onto the "tired and true" way of doing things.

There's one little piece of information that those on the wrong side of the digeration gap are failing to realize: Tomorrow's business model is about the individual, not the corporation. Executives like Moore are trying to come up with a model that supports the corporation, that reinforces widespread control, that focuses on selling a lot of things to a lot of people from a central point of vantage. And they honestly believe they're being strategic and logical about it. Sure. But it's as if they're trying to play major-league baseball on a croquet course. Things aren't fitting but they'd rather fumble around instead of just looking down.

Another comment made by Moore that's hurting my head like a blunt object:

"Who started this rumour that all information should be free and why didn't we challenge this when it first came out?"

Wasn't it some Chinese fellow that said "the answer is in the question?"

Moore wants to know why "we didn't challenge it." I think the real question should have been "why didn't we challenge ourselves?" Companies that fall into the digeration gap are the ones that aren't just asking the wrong questions, they're also looking for the wrong answers.

Let's take one more look at this doozy:

"Good information costs money."

Now that's the ultimate rub. Good information no longer costs money. As more people on the planet gain the ability to communicate to a mass audience, it's clear that quality reporting can be done by someone without an editor breathing down their neck, without the necessity of a "Baghdad Bureau," and without the corporate structure propping them up (and no doubt influencing them). Time Inc. is operating on the concept that information is expensive, and that to survive they need to keep it expensive.

Yeah, I realize they have this big huge multi-national corporation to run, but the consumer doesn't care. Ann Moore can do the lecture circuit at every high school and university on the planet trying to convince the next generation they should pay for information. Hell, she can turn it into LollaPAYlooza and bring the RIAA and MPAA with her. I hope she has a lot of room in her closet. The shoes will be forthcoming.

Job number one for corporations like Time Inc. should be one thing: "How do we maintain ownership of the space we've built in our consumer's mind over the last 50 years." Because right now the one thing they stand to walk away from the ashes with is their brands. Brand as in mindshare. When the magazines shut down and the newspapers fold and the television networks are lost in a sea of original non-network INDIVIDUAL content, the brands will be all that's left.

As aging corporations use their might and brawn to resist their forced approach to the ledge of the digeration gap, they have only two choices:

Corpse or phoenix.