welcome to hip module show 16 i’m your host afghan karva solution and I’m seat
host afghan karva solution and I’m seat
host afghan karva solution and I’m seat see more welcome to the show so last
see more welcome to the show so last
see more welcome to the show so last week when we were talking about
week when we were talking about
week when we were talking about craigslist came up i forgot what we were
craigslist came up i forgot what we were
craigslist came up i forgot what we were talking about but craigslist came up and
talking about but craigslist came up and
talking about but craigslist came up and we said that this week we would touch on
we said that this week we would touch on
we said that this week we would touch on craigslist to see how responsible craig
craigslist to see how responsible craig
craigslist to see how responsible craig newmark is for the you know decline of
newmark is for the you know decline of
newmark is for the you know decline of newspapers right so we’re going to talk
newspapers right so we’re going to talk
newspapers right so we’re going to talk about that basically you know was it
about that basically you know was it
about that basically you know was it craigslist or was the technology that
craigslist or was the technology that
craigslist or was the technology that impacted newspapers and then we’re also
impacted newspapers and then we’re also
impacted newspapers and then we’re also going to have a tangent to say who
going to have a tangent to say who
going to have a tangent to say who missed out the boat most on technology
missed out the boat most on technology
missed out the boat most on technology is that the newspaper industry newspaper
is that the newspaper industry newspaper
is that the newspaper industry newspaper and magazine so the print industry or
and magazine so the print industry or
and magazine so the print industry or the music industry in segment two we’re
the music industry in segment two we’re
the music industry in segment two we’re going to also touch on something that
going to also touch on something that
going to also touch on something that we’re going to expand on something that
we’re going to expand on something that
we’re going to expand on something that we touched on last week which is why
we touched on last week which is why
we touched on last week which is why vc’s don’t invest in content which is a
vc’s don’t invest in content which is a
vc’s don’t invest in content which is a very popular theme and motif on the show
very popular theme and motif on the show
very popular theme and motif on the show and then lightning round and email the
and then lightning round and email the
and then lightning round and email the week let’s get right to it so how
week let’s get right to it so how
week let’s get right to it so how responsible is Craigslist for the demise
responsible is Craigslist for the demise
responsible is Craigslist for the demise of newspapers um I don’t know I don’t
of newspapers um I don’t know I don’t
of newspapers um I don’t know I don’t think they’re they’re primarily
think they’re they’re primarily
think they’re they’re primarily responsible if anything newspapers were
responsible if anything newspapers were
responsible if anything newspapers were disrupted I think by technology and they
disrupted I think by technology and they
disrupted I think by technology and they were disrupted on two sides they were
were disrupted on two sides they were
were disrupted on two sides they were disrupted on the content side which you
disrupted on the content side which you
disrupted on the content side which you know 808 did the man for their product
know 808 did the man for their product
know 808 did the man for their product and they were disrupted on the ad model
and they were disrupted on the ad model
and they were disrupted on the ad model side so yeah you know craigslist did
side so yeah you know craigslist did
side so yeah you know craigslist did take a huge chunk of classified
take a huge chunk of classified
take a huge chunk of classified classifieds advertising from them
classifieds advertising from them
classifieds advertising from them without even charging for it but you
without even charging for it but you
without even charging for it but you know it wasn’t craigslist that did that
know it wasn’t craigslist that did that
know it wasn’t craigslist that did that you know craigslist there’s no
you know craigslist there’s no
you know craigslist there’s no technology behind it really the internet
technology behind it really the internet
technology behind it really the internet came up that was bound to happen
came up that was bound to happen
came up that was bound to happen craigslist happened to be the company
craigslist happened to be the company
craigslist happened to be the company that did it the one that was
that did it the one that was
that did it the one that was first-past-the-post i think what’s
first-past-the-post i think what’s
first-past-the-post i think what’s really killed newspapers though is the
really killed newspapers though is the
really killed newspapers though is the content market has become completely
content market has become completely
content market has become completely saturated barriers to entry or
saturated barriers to entry or
saturated barriers to entry or publishing or whatever are completely
publishing or whatever are completely
publishing or whatever are completely low and they’re facing too much
low and they’re facing too much
low and they’re facing too much competition which is spread advertising
competition which is spread advertising
competition which is spread advertising dollars really soon yeah so basically
dollars really soon yeah so basically
dollars really soon yeah so basically whether it was craigslist or not that
whether it was craigslist or not that
whether it was craigslist or not that site did take a hundred billion dollar
site did take a hundred billion dollar
site did take a hundred billion dollar classifieds industry and turn it into
classifieds industry and turn it into
classifieds industry and turn it into like a hundred million dollar industry
like a hundred million dollar industry
like a hundred million dollar industry so obviously what do we always say the
so obviously what do we always say the
so obviously what do we always say the internet shrinks industries use
internet shrinks industries use
internet shrinks industries use craigslist came out and they basically
craigslist came out and they basically
craigslist came out and they basically shrunk the classifieds industry okay you
shrunk the classifieds industry okay you
shrunk the classifieds industry okay you touch on a lot of great points when we
touch on a lot of great points when we
touch on a lot of great points when we started watch module one of the main
started watch module one of the main
started watch module one of the main sort of objections to the site was why
sort of objections to the site was why
sort of objections to the site was why produce content why produced
produce content why produced
produce content why produced professional
professional
professional premium content for the web and I said
premium content for the web and I said
premium content for the web and I said listen user-generated content
listen user-generated content
listen user-generated content particularly citizen journalism is going
particularly citizen journalism is going
particularly citizen journalism is going to have a big impact on you know the
to have a big impact on you know the
to have a big impact on you know the news industry and we’ve seen it in Egypt
news industry and we’ve seen it in Egypt
news industry and we’ve seen it in Egypt and Tunisia and any other crazy parts of
and Tunisia and any other crazy parts of
and Tunisia and any other crazy parts of the world or when there’s an earthquake
the world or when there’s an earthquake
the world or when there’s an earthquake people are tweeting about it before the
people are tweeting about it before the
people are tweeting about it before the news you know CNN updates it so you’re
news you know CNN updates it so you’re
news you know CNN updates it so you’re right that that basically I think
right that that basically I think
right that that basically I think citizen journalism really I think had a
citizen journalism really I think had a
citizen journalism really I think had a big impact look at CNN CNN is growing
big impact look at CNN CNN is growing
big impact look at CNN CNN is growing and it has ambitions to take over the
and it has ambitions to take over the
and it has ambitions to take over the world yet they’re laying off some
world yet they’re laying off some
world yet they’re laying off some journalists why because of I report and
journalists why because of I report and
journalists why because of I report and as much as I report was like a dinky
as much as I report was like a dinky
as much as I report was like a dinky little idea at first we were like what
little idea at first we were like what
little idea at first we were like what the hell is this there is some good
the hell is this there is some good
the hell is this there is some good stuff coming out and I think citizen
stuff coming out and I think citizen
stuff coming out and I think citizen journalism and the news industry is one
journalism and the news industry is one
journalism and the news industry is one segment where ugc is very powerful and
segment where ugc is very powerful and
segment where ugc is very powerful and and does eat away at it now let me ask
and does eat away at it now let me ask
and does eat away at it now let me ask you this what what industry missed the
you this what what industry missed the
you this what what industry missed the boat most on technology is it the news
boat most on technology is it the news
boat most on technology is it the news the news so that’s the newspapers as
the news so that’s the newspapers as
the news so that’s the newspapers as well as the lifestyle entertainment
well as the lifestyle entertainment
well as the lifestyle entertainment magazine print let’s say just put print
magazine print let’s say just put print
magazine print let’s say just put print all together because you could sort of
all together because you could sort of
all together because you could sort of branch off you know news from magazines
branch off you know news from magazines
branch off you know news from magazines but let’s just put all print together so
but let’s just put all print together so
but let’s just put all print together so who missed out more print or music I’m
who missed out more print or music I’m
who missed out more print or music I’m probably going to have to say print if
probably going to have to say print if
probably going to have to say print if only because a lot more publishing
only because a lot more publishing
only because a lot more publishing companies have gone belly up the music
companies have gone belly up the music
companies have gone belly up the music companies music companies have been
companies music companies have been
companies music companies have been losing money but they’re still there and
losing money but they’re still there and
losing money but they’re still there and I think part of the reason is is the
I think part of the reason is is the
I think part of the reason is is the difference in the kind of product they
difference in the kind of product they
difference in the kind of product they sell you know you buy an album you’re
sell you know you buy an album you’re
sell you know you buy an album you’re going to go back and listen to it over
going to go back and listen to it over
going to go back and listen to it over and over and over there you buy today’s
and over and over there you buy today’s
and over and over there you buy today’s edition to the newspaper you’re not
edition to the newspaper you’re not
edition to the newspaper you’re not going to look at it after two days it’s
going to look at it after two days it’s
going to look at it after two days it’s very interesting I disagree with you I
very interesting I disagree with you I
very interesting I disagree with you I think that the the print sort of the
think that the the print sort of the
think that the the print sort of the articles and texts and and think of you
articles and texts and and think of you
articles and texts and and think of you know like think of all the images that
know like think of all the images that
know like think of all the images that these companies have that is very
these companies have that is very
these companies have that is very valuable to move online without a doubt
valuable to move online without a doubt
valuable to move online without a doubt but I think the music industry missed
but I think the music industry missed
but I think the music industry missed about more and i’ll explain news is
about more and i’ll explain news is
about more and i’ll explain news is fundamentally a commodity we agree like
fundamentally a commodity we agree like
fundamentally a commodity we agree like I mean news as a commodity so I think if
I mean news as a commodity so I think if
I mean news as a commodity so I think if you were to take that commodity and then
you were to take that commodity and then
you were to take that commodity and then put it on the internet there would be
put it on the internet there would be
put it on the internet there would be and let’s say whether you said it’s
and let’s say whether you said it’s
and let’s say whether you said it’s going to be an ad-supported model or
going to be an ad-supported model or
going to be an ad-supported model or it’s a subscription-based I think there
it’s a subscription-based I think there
it’s a subscription-based I think there is way too much similar quality content
is way too much similar quality content
is way too much similar quality content out there that users will not pay for
out there that users will not pay for
out there that users will not pay for the subscription and in the ad model
the subscription and in the ad model
the subscription and in the ad model we’ve seen what’s happened with the
we’ve seen what’s happened with the
we’ve seen what’s happened with the explosion of ugc on with video is there
explosion of ugc on with video is there
explosion of ugc on with video is there so much supply that ad rates go down so
so much supply that ad rates go down so
so much supply that ad rates go down so i think the newspaper industry was
i think the newspaper industry was
i think the newspaper industry was just you know it was the first sort of
just you know it was the first sort of
just you know it was the first sort of industry out there it was a print
industry out there it was a print
industry out there it was a print industry it’s been around for 150 years
industry it’s been around for 150 years
industry it’s been around for 150 years more if you go back to depending on what
more if you go back to depending on what
more if you go back to depending on what you call news frankly but let’s say the
you call news frankly but let’s say the
you call news frankly but let’s say the news of the Hursts you know and like
news of the Hursts you know and like
news of the Hursts you know and like that era it’s been around for a hundred
that era it’s been around for a hundred
that era it’s been around for a hundred fifty years it was bound to be disrupted
fifty years it was bound to be disrupted
fifty years it was bound to be disrupted it was it was like a tree it was too fat
it was it was like a tree it was too fat
it was it was like a tree it was too fat it got too many layers too many
it got too many layers too many
it got too many layers too many inefficiencies and the internet was
inefficiencies and the internet was
inefficiencies and the internet was gonna disrupt that I think the reason
gonna disrupt that I think the reason
gonna disrupt that I think the reason why the music industry missed the boat
why the music industry missed the boat
why the music industry missed the boat more is because the music industry does
more is because the music industry does
more is because the music industry does not have a commodity it’s actually
not have a commodity it’s actually
not have a commodity it’s actually unique you’re right that you buy an
unique you’re right that you buy an
unique you’re right that you buy an album you listen to it 50 times but
album you listen to it 50 times but
album you listen to it 50 times but those are unique assets right people
those are unique assets right people
those are unique assets right people would pay look at what Steve Jobs
would pay look at what Steve Jobs
would pay look at what Steve Jobs discovered that people would pay for
discovered that people would pay for
discovered that people would pay for music they would pay for super premium
music they would pay for super premium
music they would pay for super premium content so I think they missed out the
content so I think they missed out the
content so I think they missed out the board they missed out more now let me
board they missed out more now let me
board they missed out more now let me give you just a little anecdote in
give you just a little anecdote in
give you just a little anecdote in 2000-2001 when I started my career I was
2000-2001 when I started my career I was
2000-2001 when I started my career I was a resident interviewer in a previous
a resident interviewer in a previous
a resident interviewer in a previous lifetime and I remember interviewing
lifetime and I remember interviewing
lifetime and I remember interviewing three doors down remember kryptonite 3
three doors down remember kryptonite 3
three doors down remember kryptonite 3 door okay so at the zenith of napster
door okay so at the zenith of napster
door okay so at the zenith of napster destruction of the music industry so
destruction of the music industry so
destruction of the music industry so around 2000 2001 guess what was the most
around 2000 2001 guess what was the most
around 2000 2001 guess what was the most downloaded song of the year illegally
downloaded song of the year illegally
downloaded song of the year illegally kryptonite the bingo jackpot you win
kryptonite the bingo jackpot you win
kryptonite the bingo jackpot you win nothing not kidding it was kryptonite
nothing not kidding it was kryptonite
nothing not kidding it was kryptonite guess what was the most sell to the
guess what was the most sell to the
guess what was the most sell to the highest selling album that year that
highest selling album that year that
highest selling album that year that same album that same album right so I
same album that same album right so I
same album that same album right so I mean is it an anecdote is that who does
mean is it an anecdote is that who does
mean is it an anecdote is that who does does does you know causation cause what
does does you know causation cause what
does does you know causation cause what I gotta know various causation right
I gotta know various causation right
I gotta know various causation right there you know here you have an album
there you know here you have an album
there you know here you have an album that’s I was I’m all night researching
that’s I was I’m all night researching
that’s I was I’m all night researching this flight I’m kidding but mr. well no
this flight I’m kidding but mr. well no
this flight I’m kidding but mr. well no you just in that case you had an album
you just in that case you had an album
you just in that case you had an album that’s in high demand so you and at the
that’s in high demand so you and at the
that’s in high demand so you and at the height of Napster was just the beginning
height of Napster was just the beginning
height of Napster was just the beginning of music disruption really if you think
of music disruption really if you think
of music disruption really if you think about it so the only real a tight shot
about it so the only real a tight shot
about it so the only real a tight shot of baileys every time we use the word
of baileys every time we use the word
of baileys every time we use the word disruption on today’s show do you have a
disruption on today’s show do you have a
disruption on today’s show do you have a bottle of listen we should I was getting
bottle of listen we should I was getting
bottle of listen we should I was getting close to Christmas we like it sorry
close to Christmas we like it sorry
close to Christmas we like it sorry alright anyways so you know this music
alright anyways so you know this music
alright anyways so you know this music piracy was really just getting getting
piracy was really just getting getting
piracy was really just getting getting started it’s changed a lot since then
started it’s changed a lot since then
started it’s changed a lot since then but it was a popular song so of course
but it was a popular song so of course
but it was a popular song so of course it’s going to be both the most
it’s going to be both the most
it’s going to be both the most downloaded and the most purchased songs
downloaded and the most purchased songs
downloaded and the most purchased songs i’m sure you can see the same trend but
i’m sure you can see the same trend but
i’m sure you can see the same trend but very much all due respect it not
very much all due respect it not
very much all due respect it not necessarily it could be the most
necessarily it could be the most
necessarily it could be the most downloaded song but then why would the
downloaded song but then why would the
downloaded song but then why would the argument against the album the argument
argument against the album the argument
argument against the album the argument that a lot of like the sort of web to
that a lot of like the sort of web to
that a lot of like the sort of web to you know hippies we say is oh
you know hippies we say is oh
you know hippies we say is oh it’s the music industry they’re a bunch
it’s the music industry they’re a bunch
it’s the music industry they’re a bunch of dumb rocks they put out these albums
of dumb rocks they put out these albums
of dumb rocks they put out these albums that nobody wants they really just want
that nobody wants they really just want
that nobody wants they really just want one or two songs well if that’s the case
one or two songs well if that’s the case
one or two songs well if that’s the case you wanted kryptonite and i don’t know
you wanted kryptonite and i don’t know
you wanted kryptonite and i don’t know like sulfur or whatever the other song
like sulfur or whatever the other song
like sulfur or whatever the other song was but the fact that people still went
was but the fact that people still went
was but the fact that people still went out and bought the album I just think
out and bought the album I just think
out and bought the album I just think speaks to the fact that agree or
speaks to the fact that agree or
speaks to the fact that agree or disagree about causation correlation I’m
disagree about causation correlation I’m
disagree about causation correlation I’m just saying that the music industry
just saying that the music industry
just saying that the music industry really missed out the boat and I think
really missed out the boat and I think
really missed out the boat and I think part of it goes back to what Doug more
part of it goes back to what Doug more
part of it goes back to what Doug more is currently CEO chairman of Sony but
is currently CEO chairman of Sony but
is currently CEO chairman of Sony but probably before CEO and chairman of
probably before CEO and chairman of
probably before CEO and chairman of universal he’s like this is not our
universal he’s like this is not our
universal he’s like this is not our expertise digital music it’s like you
expertise digital music it’s like you
expertise digital music it’s like you know bringing a dog to us and saying
know bringing a dog to us and saying
know bringing a dog to us and saying operate you know give it a triple bypass
operate you know give it a triple bypass
operate you know give it a triple bypass surgery it’s not our expertise and I’m
surgery it’s not our expertise and I’m
surgery it’s not our expertise and I’m like what the hell like well then why
like what the hell like well then why
like what the hell like well then why were you not hiring the people that
were you not hiring the people that
were you not hiring the people that understood digital music because that I
understood digital music because that I
understood digital music because that I think is the one area that in hindsight
think is the one area that in hindsight
think is the one area that in hindsight they could have had a great ad model and
they could have had a great ad model and
they could have had a great ad model and they could have had a great subscription
they could have had a great subscription
they could have had a great subscription model and the fact that right now you
model and the fact that right now you
model and the fact that right now you got the pandora’s and the spotify is in
got the pandora’s and the spotify is in
got the pandora’s and the spotify is in the crap stirs that are eating away and
the crap stirs that are eating away and
the crap stirs that are eating away and creating that value it should have been
creating that value it should have been
creating that value it should have been the record labels so just another lesson
the record labels so just another lesson
the record labels so just another lesson to be served that if media companies the
to be served that if media companies the
to be served that if media companies the TMC’s traditional media companies are in
TMC’s traditional media companies are in
TMC’s traditional media companies are in this position where they’re sort of
this position where they’re sort of
this position where they’re sort of caught between a rock and a hard place
caught between a rock and a hard place
caught between a rock and a hard place it’s because they’re both greedy and
it’s because they’re both greedy and
it’s because they’re both greedy and stupid and I’m not saying that to be
stupid and I’m not saying that to be
stupid and I’m not saying that to be rude I’m saying that to tell them wake
rude I’m saying that to tell them wake
rude I’m saying that to tell them wake up you got a big opportunity stop being
up you got a big opportunity stop being
up you got a big opportunity stop being so defensive stop being so you know
so defensive stop being so you know
so defensive stop being so you know backwards anyway anything else before we
backwards anyway anything else before we
backwards anyway anything else before we move to the next segment I still
move to the next segment I still
move to the next segment I still disagree but let’s move on to investors
disagree but let’s move on to investors
disagree but let’s move on to investors on we’ll be right back why don’t vc’s
on we’ll be right back why don’t vc’s
on we’ll be right back why don’t vc’s invest in content
”
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