Podcast Summary
A Media Insider's Tale: Ben Smith on Gawker, Buzzfeed, and the Future of Media: Ben Smith, co-founder of Semaphore and former editor of Buzzfeed News and New York Times, discusses his experiences in media, including rivalries, financial successes and failures, and the role of venture capital. His book, 'Traffic Genius,' offers a postmortem on the media revolution led by Nick Denton and Jonah Peretti.
Insightful account of Ben Smith's experiences in the tech and media industries, as shared during his interview on the show. Smith, the co-founder and editor-in-chief of Semaphore, previously worked at Buzzfeed News and the New York Times. He recently wrote a book, "Traffic Genius, Robert Lee and the Delusion in the Billion Dollar Race to Go Viral," which provides a postmortem on the media revolution led by Nick Denton and Jonah Peretti. The episode touched upon the fiery rivalry between Denton and Smith, the financial successes and failures of Gawker and Buzzfeed, and the role of venture capital in media companies. Smith also shared his early beginnings in media reporting, starting as a summer intern at the Jewish Forward. The conversation offered a captivating behind-the-scenes look into the world of tech and media, with valuable insights on the past, present, and future of these industries.
The early blogging era: a transformative time for Gen Xers and journalism: Bypassing gatekeepers, the early blogging era allowed Gen Xers to publish directly to audiences, fostering competition and mistrust in mainstream media, leading to the birth of link bait and alternative voices
The early blogging era, around 2004, represented a significant shift in the publishing landscape for Gen Xers like the speaker. This era offered an opportunity to bypass the gatekeeping of editors and publish directly to an audience, creating a competitive environment for information arbitrage. The mainstream media's discrediting during the Iraq war fueled a growing mistrust and desire for alternative voices, leading to the birth of link bait and the rise of publications like Gawker. The speaker's experience during this time showcases the transformative impact of blogging on journalism and media consumption.
Two Digital Media Companies, Gawker and Buzzfeed, Revolutionized Journalism with Distinct Approaches: Gawker and Buzzfeed revolutionized journalism during the late 2000s by embracing transparency and targeting audiences with distinct approaches. Gawker exposed societal hypocrisies using controversial methods, while Buzzfeed focused on creating shareable content for social media engagement.
During the late 2000s, two influential digital media companies, Gawker and Buzzfeed, emerged, each with distinct approaches to catering to the newfound ability of publishers to precisely target their audience. Gawker, under Nick Denton, embraced transparency and exposed societal hypocrisies, often with controversial methods like publishing private information and sex tapes without consent. Buzzfeed, led by Jonah Peretti, focused on creating shareable content, such as viral lists and cat videos, to engage readers and foster social media. Both publishers were driven by strong ideologies, with Denton advocating for unfiltered truth and Peretti pioneering social media content. The contrasting approaches of these visionary media figures illustrate the transformative impact of digital technology on journalism and audience engagement.
The Power and Consequences of Media: Media platforms can bring great success and influence, but it's crucial to use power responsibly and avoid acting as bullies or outsiders.
The power and success that come with media can lead to both great achievements and unfortunate downfalls. Nick Denton, the founder of Gawker, started as an outsider with a goal of promoting honesty and transparency. However, as Gawker grew in power and influence, it began to act like a bully, leading to its eventual demise. Similarly, LinkedIn started with a goal of connecting people for positive, light, and silly reasons, but the reality of social media turned out to be much different. Now, LinkedIn is a powerful tool for businesses to find qualified candidates, but it's important to remember that the power and reach of these platforms come with responsibilities. As individuals and companies, we must be mindful of how we use this power and strive to make a positive impact rather than becoming bullies or outsiders.
BuzzFeed's Ethos and Business Model Led to Its Downfall: BuzzFeed's reckless ethos and heavy reliance on social media traffic left them vulnerable to lawsuits and revenue loss when algorithms changed.
BuzzFeed's downfall was a result of their ethos, which involved irresponsibly exposing powerful people and being obnoxious towards them. This led to a lawsuit from Peter Thiel, who secretly funded Hulk Hogan's lawsuit against the company. Additionally, BuzzFeed's business model relied heavily on traffic from social media platforms like Facebook, which they bet would continue to pay for content. However, when Facebook changed its algorithms, BuzzFeed's revenue plummeted, leaving them vulnerable to attacks from more powerful players in the tech industry. Another factor was Jonah Peretti's lack of understanding of the cutthroat business environment in Silicon Valley, where partnerships were often ended with no warning or explanation. Overall, BuzzFeed's ethos and business model put them on a dangerous path, and their inability to adapt to changing circumstances ultimately led to their downfall.
Risks of over-reliance on a single platform for business growth: Over-relying on a single platform for traffic and monetization can lead to significant risks and disappointing outcomes. Diversify traffic sources to mitigate risks.
Over-reliance on a single platform for business growth can lead to significant risks and disappointing outcomes. The discussion highlights the experiences of Nick Denton, the founder of Gawker Media, who heavily relied on social media for traffic and monetization. This dependency led him to raise funds and build the business around this strategy, which ultimately proved to be a critical error when social media platforms started to change their algorithms and prioritize user-generated content over publisher content. The incident served as a lesson for media businesses, particularly those in the digital space, to diversify their traffic sources and not put all their eggs in one basket. Additionally, the discussion underscores the importance of setting realistic expectations and being transparent with stakeholders about the potential risks and limitations of a business model.
Vanta's SOC2 and GDPR compliance tool helps businesses close deals with larger clients: Vanta's partnership with audit firms simplifies SOC2 reporting, offering a $1000 discount to Twist users. Effective brand management, as demonstrated by Vox Media, is crucial for financial stability.
Vanta is a valuable tool for businesses seeking SOC2 and GDPR compliance, making it easier for sales teams to close deals with larger clients. Vanta's partnership with over two dozen audit firms allows SOC2 reports to be filed directly within the platform, and the company offers a $1,000 discount to Twist users. While discussing media companies, it was mentioned that Vice faced significant challenges, including high production costs and cultural upheaval, leading to financial instability and eventual ownership by a private equity firm. In contrast, Vox Media, led by Jim Bankoff, has managed a collection of brands effectively, avoiding the pitfalls of consolidation and maintaining a solid financial position. Ultimately, Vanta's compliance solutions and Vox Media's successful brand management serve as important reminders for businesses to prioritize SOC2 and GDPR compliance and effective brand management, respectively.
Union-Journalism Relationship Tension: Unions provide a path to control wages but can make life more expensive for companies, while the perception of union protection is misleading in the at-will employment environment.
The relationship between unions and industrial era journalism organizations, whether unionized or not, is experiencing significant tension. This tension arises from the shift towards individual voices and reader connections, putting pressure on organizations to competitively pay their top performers. Unions, while providing a clear path to control wages, have not set a ceiling and can make life more expensive for companies. The perception that unions protect employees is misleading, as the employment environment is at-will, allowing employers to make layoffs at any time. The speaker also noted that while there may be cultural differences between generations in journalism, they may not be as profound as stereotypes suggest, and that the fear and dislocation caused by new technologies played a significant role in the dynamics observed.
The Adversarial Relationship Between Business and Journalism: Journalists like Kara Swisher are leaving traditional media to become top podcast hosts, causing resentment and leading some to explore labor movements or alternative platforms for connection and control.
The relationship between business and journalism has become increasingly adversarial, leading some figures to bypass traditional media and engage directly with their audiences. This trend was discussed in the context of the podcasting industry, where success can breed jealousy and resentment. Kara Swisher, a prominent journalist, was mentioned as an example of someone who has become a top podcast host, leaving some feeling left behind. The labor movement was also touched upon as a response to people seeking more control in their lives, but it was noted that unions may not fundamentally change the structure of struggling media businesses. Additionally, a platform called Eye Connections was introduced as a solution for fund managers to connect with elite capital allocators, offering tools like an LP meeting schedule, document sharing, industry contacts, and exclusive events. The podcast conversation also touched upon the changing landscape of access journalism and the potential for individuals to share their stories directly with their audiences.
The media-tech relationship: Misunderstood and Adversarial: The media and tech industries need to improve communication and accurate reporting to avoid misunderstandings and the spread of misinformation.
The relationship between tech companies, particularly social media platforms, and the media has become significantly adversarial and misunderstood in recent years. This dynamic was exacerbated by the election of Donald Trump, who was often portrayed as a political figure rather than an entrepreneur by both the media and tech founders. The media's coverage of tech companies, particularly regarding their impact on elections, was often sensationalized and misinterpreted, leading to a wave of journalism that focused on finding culprits rather than accurately reporting the facts. Meanwhile, tech companies felt misunderstood and developed their own counter-narratives. The result is a breakdown in communication and a deep-rooted mistrust between the two industries. Additionally, the reward for telling sensational narratives about politicians like Trump, who had a huge audience waiting for the next installment, encouraged the spread of misinformation and further fueled the adversarial relationship. Ultimately, the media and tech industries need to find a way to communicate more effectively and accurately report on each other to avoid further misunderstandings and the spread of misinformation.
A new platform for trustworthy news from expert journalists: Semaphore aims to address challenges in the news industry by building a platform for expert journalists to break news and share insights, while also including diverse perspectives. The company sees a global opportunity, particularly in rapidly growing markets, and plans to surround themselves with business experts to execute their vision.
The news industry is facing numerous challenges, including an overwhelming amount of information and a lack of trust in institutions. People are turning to individual journalists they trust for facts and diverse perspectives. Semaphore, a new company, aims to address these issues by building a platform around expert journalists who can break news and share their insights, while also including other voices and points of view. The company sees a global opportunity in this model, particularly in rapidly growing markets like sub-Saharan Africa. Semaphore's founders believe that experienced business operators and smart execution are key to making news a successful business. They also recognize that they are not business experts themselves and plan to surround themselves with the right people to execute their vision. The company's goal is to provide trustworthy, global news coverage and analysis from experts in their fields.
Media landscape shifting towards authentic sources: Traditional broadcasters face challenges from changing consumer preferences and advertising incentives. Fox News at a crossroads, both Fox and CNN pulling back towards center, podcast market seeing rise in popularity, audiences seeking out smaller scale voices
The media landscape is shifting, with audiences moving towards more direct and authentic sources like podcasts, and traditional broadcasters facing challenges from changing consumer preferences and advertising incentives. The conversation touched upon the exits of Tucker Carlson and Don Lemon from CNN, and the potential implications for Fox News, which seems to be at a crossroads. The era of loudest shouting and most intense pandering is reportedly over, and both Fox and CNN are responding by pulling back towards the center, driven by advertising incentives. The podcast market, on the other hand, is seeing a rise in popularity, with Joe Rogan being the biggest voice in audio for a significant subset of listeners. Overall, it appears that audiences are seeking out voices they can connect with on a smaller scale, and the media industry is adapting to these changing trends.
Mid-tail media companies offer intimacy and sustainability: Mid-tail media companies in industries like health, finance, and tech offer a more intimate connection with audiences and can thrive without displacing industry giants or relying on individual subscriptions. Staying medium-sized, understanding your audience, and maintaining a connection are keys to success.
The mid-tail sector in media is emerging as a viable and sustainable option for businesses, particularly in industries like health and wellness, finance, and tech. Mid-tail companies, such as Semaphore, offer a more intimate connection with audiences and can thrive without displacing industry giants or relying on individual subscriptions. The media landscape is shifting towards smaller, boutique businesses owned by the principles, rather than large, hypergrowth companies. Raising large amounts of venture capital can lead to unwanted pressure and expectations, and the media business does not scale linearly like tech companies. The key to success in media is to stay medium-sized, understand your audience, and maintain a connection with them.
Relying too much on one investor can lead to risks: Diversify investments and be cautious about who you bring on board to mitigate risks and ensure long-term success. Have a solid plan and the right team in place to avoid challenges, especially in industries like news media without a clear revenue model.
Relying too heavily on a single investor can be risky, especially if that investor turns out to be involved in fraudulent activities. This was a lesson learned the hard way during a past venture, where 30% of the funding came from one individual. Although the investment seemed promising at first, the situation took a turn when the investor was accused of fraud. Despite the potential financial implications, the team was fortunate to have a strong launch and enough resources to replace the lost funds. However, the experience served as a reminder of the importance of diversifying investments and being cautious about who you bring on board. Additionally, launching a business without a clear revenue model or a strong theory of what the business would be can lead to challenges, particularly in industries like news media. It's crucial to have a solid plan and the right team in place to mitigate risks and ensure long-term success.
Nate Silver's innovative approach to crowd-sourcing investigative journalism: Nate Silver's unique approach to journalism includes crowd-sourcing stories, data analysis, and impressive negotiation skills, leading to successful entrepreneurship and a must-read book.
Nate Silver, known for his data journalism and statistical analysis, had an innovative idea for crowd-sourcing investigative journalism by emailing potential freelancers with a list of curated stories and offering a reward for completion. Silver's talent extended beyond journalism into media negotiations, as seen when he was hired by ABC but kept the rights to his models, which are the heart of 538. Despite initial insecurities, he learned to read his own audiobook, which has become a desired trait in the age of podcasting. Despite not covering all intended topics, the conversation highlighted Silver's unique approach to journalism and his impressive negotiation skills. The book, published by Penguin, is a must-read for those interested in data journalism and entrepreneurship.
