By John McGrath
If I can be allowed a brief post to expand on
my rant of yesterday (and I can because I'm the blog editor, hah!) but with a bit more substance, and perhaps a bit less sarcasm, I think it's worth spelling out a bit more clearly why I think any effort to cartel-ize news is bound to fail.
1)
We don't control a scarce resource. It's relatively easy to control a small number of oil wells, so OPEC exists. But information wants to be free (as the computer nerds say) and while there was a time when the number of people who had access to broadcasting facilities was small, that day is past us now. News can be made and distributed cheap. There are so many good things about this that we could blog about nothing but that -- and some people do -- but our predicament is like the farmer selling cheap staples in the modern era: bad for the farmer, maybe, but good for people who eat.
2)
The incentive to defect increases as the cartel grows. Anybody who's studied the
Prisoner's Dilemma knows what defection means -- when two people try to make a bargain, there are always incentives to betray, or defect. Any attempt to artificially restrict the scope of news on the Internet faces the same problem, and he problem gets worse for the cartel as it grows: the news outlets who defect will capture larger shares of web traffic and ad revenue.
3)
It's been tried before, and failed. During the dawn of radio, members of CP in Canada and AP in the US tried to restrict the use of their news on radio stations. This fight went on for years, and the newspapers lost, for both of the reasons above. There were plenty of alternatives to the cooperatives, and they were happy to sell to the radio stations. There's simply no way to monopolize news in the way that some newspaper owners would clearly prefer.