Tag: Open Society Institute

Posted on By Patrick Maines

Reflections on the Sale of the Washington Post

Much is being said, almost all of it guesswork, about why Jeff Bezos bought the Washington Post, what he plans to do with it, and what it all means.  Some argue it’s just a kind of trophy purchase, others that it was done to gain political influence, for Mr. Bezos and/or Amazon, in the Nation’s Capital.

Still others see in the purchase a path leading to a future in which important elements of the news media are nonprofit entities, either by design or in consequence of operations that, while unprofitable, are subsidized by owners with deep pockets.

I would guess, and hope, that all of these speculations are false.  The more likely reason that Mr. Bezos bought the Post is because he suspects he can operate it, using the tools of the new technologies, at a profit.  That by doing so he would also, serendipitously, save professional journalism may be a by-product of his purchase, whether it’s part of his motivation or not.

In 2000, The Media Institute gave Mr. Bezos its Free Speech Award, largely in recognition of the global reach of his book selling operation, sometimes over the objections of local governments.  In his acceptance speech, Mr. Bezos talked at length about the path he and his wife had followed in the creation and growth of Amazon, and the picture that emerged was not that of a politician or a philanthropist.

Instead, Mr. Bezos came across as an ambitious, disciplined, and hard-charging businessman.  (That same year, the Institute gave its other annual award to Robert Johnson, founder of BET, and I have often thought how similar the two men are.)

To put it another way, I think Mr. Bezos has too much self respect, and too little ego, to have purchased the Post either as a kind of grandstanding event, the better to aggrandize himself or Amazon, or to stand by and subsidize indefinitely a financially failing company.

After all, if news organizations are not created to make a profit, what are the standards of success or failure?  The idea that nonprofit status produces a more value-free product is belied by the reality that most philanthropists operating in the realm of the media have decided political views, a la the Knight Foundation, ProPublica, Open Society Institute, etc.

Going forward, there is one thing I would recommend to the gentleman: that he insist that the editors and reporters at the Post understand how important it is that the media be a watchdog on government. After all, if the media are not a check on government, who is?  If the only role of the media is to deliver eyeballs to advertisers, the media wouldn’t deserve a First Amendment and the Founders wouldn’t have produced one.

Which is not to say that the Post is in all ways politically or ideologically one dimensional.  As contrasted with the New York Times, where the right-leaning Ross Douthat toils away in solitary isolation, the Post’s editorial page features lots of conservative columnists.

The problem so defined is not in the editorial pages but in the news pages – the paper’s breaking, feature, and investigative reports.  No subject better illustrates this point than the paper’s coverage of the ruinous, not to say corrupt, fiscal antics of Congress and the Administration.

Perhaps the greatest threat not just to the financial health but to the very security of this country’s citizens is the growth of government, and of the corresponding governmental debt, at the federal, state, and local levels. Nor is this a new development. It’s been going on for years and the Washington Post has looked right past the kind of things that, were they done in the private sector, would yield indictments and incarceration.

There are things to admire in the Washington Post, and it’s to be expected that Mr. Bezos would not come out with early comments of concern about the editorial product there.  But if he cares about the promotion of excellence in journalism, and would like to add conservatives and Republicans to the newspaper’s admirers, this is something he ought to put in his cart.

                                               

The opinions expressed above are those of the writer and not of The Media Institute, its Board, contributors, or advisory councils.

Posted on By Patrick Maines

Funding Net Neutrality … And Worse

There are so many things wrong with the FCC’s codified “net neutrality” rules, the kindest thing one can say about those responsible is that they were all born yesterday.  But criticism of this monstrosity abounds already, and given the potential for it to be wholly or partly undone by the courts or Congress, no further discussion of its many flaws is either timely or necessary.

Just before Christmas, however, John Fund wrote a piece in the Wall Street Journal that ought to be required reading for every media and communications mogul in America.  Titled “The Net Neutrality Coup,” Fund recounts the role played by a handful of large grant-giving foundations, and the beneficiaries of their largesse (“paid clappers,” in Ted Turner’s immortal phrase) in the promotion of this cynical creation of the “media reform” movement.

Perhaps the greatest value in Fund’s piece is his finding that most of those foundations that provided the lion’s share of funding for net neutrality were also among the biggest sources of funding for the earlier (and even worse) mischief, “campaign finance reform.”

Fund identifies by name a total of six grant-giving foundations and four operating organizations.  They are, among the former: the Pew Charitable Trusts, the Schumann Center for Media and Democracy, the Joyce Foundation, George Soros’s Open Society Institute, the Ford Foundation, and the John and Catherine MacArthur Foundation.

The four operating groups are Free Press, Public Knowledge, Harvard’s Berkman Center for Internet and Society, and the New America Foundation.  What all of these groups – funders and recipients alike – share in common is that, to varying degrees, they are all liberal-leaning, or “progressive,” as they yearn to be called nowadays.

Missing from this list is another billion-dollar grant-giving group – the Knight Foundation – which, through the Knight Commission, has itself peddled  net neutrality, along with such pap as the need for greater funding of public broadcasting, and tax credits for investigative journalism.  Though we won’t know for sure until its report is issued, the FCC appears to have adopted the Knight Commission’s recommendations as a kind of blueprint in its approach to the commission’s so-called Future of Media initiative.

The reason all of this should be of the greatest importance to everyone, but particularly to titans of media and communications, is simple: The communications policy views of grant-making groups like the Open Society Institute and the Ford Foundation (not to mention Free Press) are inimical to the well being of media and communications companies.

It’s not entirely clear why the “progressive” moneybags’ lavish spending has not incited individuals with different political views, many of whom have amassed great wealth in the media and communications business, to fund non-profit organizations with more pro-business communications policy views.  Perhaps it’s because some of them, having gotten theirs and now in retirement, no longer care much what happens to the industry of which they were once a part.  Or maybe it’s because many don’t think of themselves, or want others to think of them, as “conservatives,” whatever that means in the context of communications policymaking.

But a likelier explanation is that many fail to understand what a threat to their own and their industry’s welfare some of these groups actually pose.  Perhaps because businessmen are very good at lobbying, and understand the ins and outs of PACs, they don’t see the need to engage their critics in the worlds of academia or think tankery.

It’s a mistake, that, because in truth it’s the people who deal in ideas – intellectuals and artists, activists and policy wonks – who are often the engines in the development of policy issues in which legislators and regulators are but the last people to board the train.  Witness, for instance, net neutrality.

As John Fund puts it, in the conclusion of his WSJ piece, “So the ‘media reform’ movement paid for research that backed its views, paid activists to promote the research, saw its allies installed in the FCC and other key agencies, and paid for the FCC research that evaluated the research they had already paid for.  Now they have their policy.  That’s quite a coup.”

                                                
The opinions expressed above are those of the writer and not necessarily of The Media Institute, its Board, contributors, or advisory councils.