YouSaid · the spoken record

David Chavern

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98
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2019-03-02
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2019-03-02
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  1. She is still fantastic. She remains fantastic. News media alliance.org, and I have a great Twitter handle, by the way. What is it? News CEO.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  2. No, my kids, this gets quickly anecdotal, but I know my kids consume huge amounts of long form content. Documentaries on Netflix. My kids are both in tech, right? So they're at the computers and they listen to podcasts like eight hours a day back a million years ago when I was in Philadelphia, Terry Gross was a Philadelphia interviewer then. You know, her original broadcasts were two-hour interviews.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  3. Absolutely. But when I started this podcast four or five years ago, something like that, so many people in traditionalist was like, you know, millennials don't want to listen for an hour. I'm like, yes, they do. And they're like, no, they don't. They don't. They like it snackable. I'm like, stop using that word. And they're like, snackable. I said, stop. Like, if you do it again, I'll have to hit you. I was like, they want it. We're going to do it now and we're going to see. Like, I bet they do care about longer substantive, like treating them like they have a different, there's certain things, how they consume it and where is different from what. You know what I mean?

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  4. No, I mean, you get people where they are, but it turns out people are much more available. Absolutely. Than they ever were before. My kids consume tons of nutrients.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  5. It's available easily. In lots of ways. That's the difference understanding lots of ways and reaching people in lots of ways. That's the one thing that a lot of traditional news organizations don't get. They stick with just print or something like that.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  6. Actually, if you do data around this, the thing people value most is big, deep enterprise data. 100 purse. That's really what they value. And millennials consume much more than we did at that age because they can. It's available easily.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  7. We're going to need technical solutions. You can't just say Spotify for news unless it really invests in this trust component. And builds that and builds that attachment to the brand. All this ideas that disintermediate people from the brand are disastrous.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  8. Interesting ideas, or micropayments is the other big one. A couple things to keep in mind when compared news compared to music, though. First of all, our back catalog is not super valuable. You may have listened to Ella Fitzgerald this morning when something tells me you didn't read about Jimmy Carter. No. We're one-time only consumption, right? You usually don't read news articles over and over again. You do not. And trust, and the biggest one is trust is a huge part of the transaction. You have to know where.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  9. The worst students ever get into it. Subscription is where everybody is focused on. We do need actually more technical solutions for journalism. And if I could digress a minute, if you talk to anybody in tech, they always like models from something else that works. So Uber 4, right? Uber for dog walking or whatever. This is mental model. When it comes to content, they always say Spotify for, right? Spotify for news.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  10. Right. So, what do you think the big businesses should be if you think about them? Let's finish up talking about that. What is promising? Give me two or three examples of what you think is promising. Subscriptions, what?

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  11. of innovation. But again, all your political figures now talk about we need the power of philanthropy to save journalism. Listen, philanthropy is fine and good. Yay. But that can't be shorthand for, oh, by the way, there's no business here

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  12. There's not some. I think they're doing it out of, for the most part, a real civic sense because I don't think the billionaires anyway are doing it to make money. I think they care about journalism. They very much care about their communities. Note that you don't have billionaires buying chains or 50. They tend to buy in some locality that they care about. I think it comes out of a good civic sense. There's relatively few examples of somebody trying to drive coverage one way or the other or those other things. And I think that's a fine model. But again, it's got to pay for itself. And we've got to solve these business structural issues because the billionaires are not going to save us, believe it or not.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  13. Why do you think they're doing it? You ever think about it? Because it's not either hedge funds or internet billionaires doing this. It's a really interesting. There's not some new, well, I guess Patrick. Well, no, he was a tech. He was a tech person. He was a tech.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  14. That's not my policy. Yeah. So, because, first of all, again, you still have to make it sustainable. This idea that billionaires are going to keep writing checks to fund losses at something, that's not the billionaires I've run into over time. They can provide long-term strategic support, really carry things through. But that underlying business still has to pay for itself.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  15. So that's one kind of owner I have in this industry. What I'm very careful to say is, listen, let's not wait to be rescued by the billionaires. Right.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  16. Yeah, invest for the long term. I mean, and look what's happened in LA. I mean, Dr. Shushang's doing some great investments.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  17. I think you've got examples of where it's really worked well. Yeah, look, and by the way, look at Washington Post. Yes, right? Yeah. Where they really make investments.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  18. All right, I want to finish up talking about the ownership by all these internet zillionaires. You've got Mark Benioff, you've got Jeff Bezos from Amazon on the Washington Post, you have Mark buying time, you have Lorraine Powell Jobs buying things. Talk about that, and there's more. There's more rumors. There's rumor of Eb Williams buying things. You have rumors, you have Medium doing Eb Williams from Twitter doing Medium. How do you look at all this?

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  19. I mean, it's really important, but understand in the internet environment, for the reasons I talked about before, we put a big burden on users, much more than ever in the past. So the answer can't be, well, we'll just keep educating these people about while we shove garbage at them. You're never going to have enough news literacy to overwhelm the garbage. You need a system that rewards the delivery of good, high-quality content. And yes, have news literacy, but also have responsibility in the platforms about what they deliver and do.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  20. No, you see the rhetoric picked up by people. I mean, look on TV about his rallies and stuff, people chanting fake news. I mean, we hear it all the time. I think it is not social.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  21. Yeah, but that's a good point. I also try to be very careful not to get sucked into whatever his latest tweet is, right? About fake news.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  22. Oh, it's really dangerous. It's really dangerous. Listen, I represent fake news in his calculation. I think that rhetoric is horrific. And what he does to individual reporters is really bad and dangerous. I don't think it's going to impact these debates about the role of the platforms. What I try to use it as is saying an opportunity for us to talk about who we really are.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  23. Now, does the current mood push by Trump, President Trump and others hurt that? The idea of fake news. He just did it this weekend again in large caps. Now, the fake news is, I mean, How do you react to that as a

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  24. A lot of people feel the record. People are, there's hints about it in the ecosystem. And certainly David Ciclin, the house has talked about holding hearings on antitrust in the platforms. This is an area where the U.S. government has put a lot more investment in terms of developing a new policy, researching the impact of these platforms on these markets, and really bringing some regulation to bear. I mean, you just can't sustain this trajectory right now.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  25. There has to be some analysis of the role that they play in the advertising markets. Now, do I think that's going to win back ad business necessarily for news publishers? I'm not necessarily willing to make that argument.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  26. And by the way, there have been other industries in the past that have been able to do that. You just can't do it forever. Eventually, the antitrust authorities come knocking. They were allowed to acquire a lot of businesses at times when the federal government was asleep at the Switch.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  27. The sales side, the exchanges in the middle, the buy side. And they also participate in all those markets themselves as their own independent player

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  28. Politically, where that is, is there was a crack in the door on two thirds. Right. There are going to be new cracks in that door. People are going to talk about opioid sales and other things. But we need to have a bigger conversation about content and the future of the news business. And that's part of what I'm trying to drive. Okay.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  29. All of you. I don't mean to, you know what I mean? That's the whole point. Yeah, I don't see a reason why they get those 230 protections.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  30. Yeah, applying 230 to Google and Facebook currently, particularly as they've applied them, I think is ridiculous. They won't behave.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  31. Well, interesting thing is they're sort of already half pregnant because they have the 230 protection. But also Zuckerberg says at the hearings we're responsible for what happens on our sites. Right. Okay. Those two things are.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  32. All the time, right? The only actually parts of our business that have a 230 protection are like the comment sections of. And we still moderate those. I mean, there's nobody doesn't. Manage those and moderate those. So the 230 played an interesting role in helping the whole ecosystem develop.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  33. Dirty. I mean, Section 2. The interesting thing about it is, you know, my guys are responsible for it. They put in the paper. They can get sued.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  34. Just want to say We don't have much leverage, but we have some. And the With politicians, policymakers. That leverage comes from the fact that news is important. Right, nobody's asking for congressional hearings about fake cat videos That news is seen as important to the Republic in a way that is disproportionate to maybe other kinds of content. And making the argument that we're at a precipice with the news business. In a world where print is declining and we need to live off this digital world, we need a better deal from these platforms. And by the way, if we get a better deal, we actually can have a sustainable, good business for the country. And ultimately one that would inure to the benefit of the platforms as well.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  35. These were people who used to disdain Washington. I just want to say I've known so many receiving ends of them going, we don't move in Washington. And now I'm like, is there someone you didn't suck up some horrible lobbyist you didn't suck up

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  36. Actually, I'm feeling there's that old saying first they ignore you, then they laugh at you, then they get mad at you, then you win. I think we're moving from laugh at us to get mad at us slowly. So what happened?

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  37. Exactly. And by the way, they negotiate with other people, the music folks get a deal. You know, where's the deal for news? But the only way we're going to get there apparently is to be able to band together and have one industry voice. How likely?

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  38. So interesting, under the current antitrust laws, and this is based in a precedent from the booksellers in Apple. The antitrust laws protect Google and Facebook from us. I'll let that sink in for a minute. They protect Google and Facebook from us banding together, right? And so we've got a bill that was introduced by David Ciccellini, chairman of the House Antitrust Subcommittee, that would allow us to band together as an industry and negotiate collectively with them. And what would we negotiate?

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  39. Charity's not going to sustain this thing. We need a business arrangement that provides value to the people who hire reporters. And by the way, we then provide you good content so you have less fake news problems. And that's money. That's data. They hoard all the data about our own readers. At the same time, they always tell us you need a closer relationship with your readers. And this is also another Apple news problem, by the way, which is you need a closer relationship with your readers. We won't tell you who they are, by the way, just as long as you're cool. Yeah, exactly.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  40. They'll write a check. Say here you go for the most part, they don't necessarily require a current return. I said, you don't have to send me a check every year. But they don't like to write new ones. So that means you still have to build a sustainable thing that pays for itself. And the same way the charity

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  41. To some degree, this is similar to the argument. People think that there are going to be philanthropists who are going to fly in and say to everybody or billionaires or whatever. Listen, I've actually a number of my members are owned by billionaires.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  42. I mean, what the hell, but that's not sustainable. We need something that is going to actually be a sustainable relationship over a long time.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  43. Right, to live on. No, no, at the same time, they suck up everything and then they don't have the responsibility of the platforms. They don't have to pay for what it costs to do the news. But they get all the benefits. Like, that's really a simplistic way of doing it. I'm sure Antonio would say that, but it really is. They get all the good stuff and none of the bad stuff. And that's why their businesses are so good, because they don't have the costs.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  44. They've obviously faced that front and center, right? All their digital ad dollars are getting sucked away by Google and Facebook. And by the way, they don't have a declining print business to live on. No, no, at the same time.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  45. They'll take everything. But it became statistically very clear like three or four years ago that, oh, wait a minute, like they get all of it.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  46. Well, I don't know that we as news publishers can do anything about it. I think there are anti-competitive and monopoly concerns related to that. And I think what we also forget is how recent the understanding that they were going to take all the ad money is. It's really last three or four years. Until then, other people thought they could build ad-based businesses. Not me.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  47. In Yeah, I mean, I'm coming from an industry that had huge advertising businesses, but online in the data wars, you know, we're never. We're never going to have the data to compete with Google and Facebook. And as long as advertising online is geared around who's got the most data about Kara Swis Then more and more money is going to flow to those folks. You know, you can't scream at the weather, but you're not going to change it, right? And we're not going to win a data game. That doesn't mean we give up all of our advertising products or we don't have some unique things to offer advertisers. But the trends towards the money going to Google and Facebook and to some degree Amazon are accelerating because, you know, it's a data game.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  48. And then the digital advertising market. It's now pretty much owned by Facebook and Google, and now Amazon's sort of slipping in off to the side in terms of products, which is always a big mainstay of local news and national news. How do you look at the digital advertising business? Because while they're maintaining their platform, they're already sucking all the, like I said, the juicy bits out.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  49. And that makes it hard for local news publishers. But that trend is also accelerated by things like Apple News and other products that don't even surface local news for you. So it's kind of okay. Some good, some blah, Apple News. Now they've proposed or they're talking about a new subscription layer in Apple News where they would take the $5 out of the $9.99. Really, they've surfaced very few details about that so far.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT

  50. It's a national and general interest. The only local news is stuff that pops up And that is both a cause and effect of one of the dilemmas in local news in the sense that Apple is saying this is what people want. Okay, but also you're not exposing them to local, right? It ends up being a de facto suppression of local. A big challenge that local news has had broadly is what I'd call nationalization of news interest. And this was before Trump, but it's certainly been accelerated by him where the public Spends relatively more time and attention looking at national and general interest stories as opposed to local.

    2019-03-02 · Decoder with Nilay Patel · Recode Decode: News Media Alliance CEO David Chavern · IDENTIFIED FROM THE TRANSCRIPT