Book Review: The People’s Platform: Taking back Power and Culture in the Digital Age

I just finished reading “The People’s Platform: Taking Back Power and Culture in the Digital Age” by Astra Taylor  I really found this book to be interesting. I believe it offered a very different critique on the digital age than Evegny Morozov’s “Click here to Save everything” where he focused on the arrogance of the algorithm and total solutionism of the movement, Taylor focused on the cultural cost of our digital economy. I think combined the philosophizing of Morozov with Taylor’s discussion of the value of culture and the economic forces behind these changes is an extremely powerful argument. Alone they are both excellent, but I think they offer balancing points that compliment each other well.

First of all, I don’t think everyone will like this book. I don’t think a lot of my readers will like large portions of the book. However, even the most libertarian will agree with some portions of it. I think that’s the power of this book. It’s not really fair to one side or the other, although is really obvious she has a bias – which she wears pretty proudly. Knowing this bias is there allows the reader to decide which portion is Occupy Wall street dreaming or which is really a problem (of course one can go too far either direction).

Taylor’s cultural argument is powerful because we are all part of that economy. We all consume cultural artifacts or perhaps, like myself, make them. The fact that these have been commoditzed to a cost of nothing while still valuable is something we deal with daily. The choice between pirating a movie, renting, streaming it on Netflix, or buying it all are choices we decide on a regular basis. I think that even the most hardcore pirate buys a lot of cultural goods.

Many of us, even if we don’t produce cultural goods, know someone that does. You might watch a video game streamer, you might have a friend or two that are in various bands, you might read my blog or another friend’s blog. All of these people want to use these artifacts to either live on or perhaps enhance their career in some fashion.

However, in the digital space most of the companies that share or distribute cultural activities are funded by ads. Twitch makes most of it money from ads, Google makes $50 billion/year on ads, Facebook makes the most money on an ad whenever a friend “Sponsors” that ad with or without our active agreement to “sponsor” the ad.

Taylor argues that we need to help develop a cultural public space that helps create value for other cultural goods that you may not actually consume (which is why I wrote this blog).

Many of the ideas in the book are anti-corporation, but not because they make money. Instead, it’s because they make money in ways that aren’t obviously ads and that control our cultural destiny. She is pro-net neutrality, she supports companies making profits from ads, but she argues for more transparency that an article is actually sponsored.

Her argument isn’t that we should tear down companies, but instead that we pull back some of the power that these companies have simply taken without any real conversation. We need to look at the ethics behind the algorithms they are using and understand their biases. We need to enable true conversations about these topics. Ad driven content leads to self-censorship and lower quality products.

Is this book perfect? Not by a long shot, but it really made me think about some topics and I think that we need to have more conversations about not just ads, but also about why companies behave the way they do. We need to find a better balance than we currently have.

I rate the book 5/5 for making me really think about topics

Facebook, IPO and valuing a company

This week we’ve been hearing about the debacle that was the Facebook IPO.Which has revealed that some of the underwriters for the IPO were doing shady things. Matt Taibbi believes that this indicates that there are essentially two markets. One for the insiders and one for the schumcks, the every day investors.

Why is this important? Well, based on the discussions I’ve read online, there’s a lot of concern of the validity of the whole IPO process, the valuation methods of companies and how investors think of companies. The valuation of Facebook had a great deal of discussion before the final IPO price of $38/share, this was partially driven by two articles that came out. In the first one it was mentioned that GM was pulling it’s account because “Facebook ads don’t work.” The other article of note relates that researchers found that 44% of Facebook users will NEVER click an ad. This research is important because some of the valuation is based on the conversion rates of ad views to ad clicks. On average Facebook was only able to earn around $4.34 per user. The valuation of $100 billion puts the life time earning potential per user at $100 (at 1 billion users). This is pretty low, but at the same time, if only 560 million users ever click ad, that pushes means the people that do click ads need to be earning Facebook roughly $200.

MIT Technology Review discusses how this is an unsustainable growth model for Facebook. Essentially, Facebook will begin to drive down the cost per view for their advertisers to try to increase their total revenue. This falls into the race to the bottom mentality that crushes industries. Advertisers will be able to say to any website, why should we pay you x amount per ad when we only pay Facebook y there is no way that you can get me more views than Facebook. The only way that a site could get more revenue if they can show data for a higher click through and conversion rates than Facebook. That might be tough. The Review article argues that this will eventually kill Facebook and a lot of the ad driven website business models.

The other aspect of the IPO is a difference in the way that business and technology media are reporting on Facebook. Things have shifted from all the non-business related activities to focusing solely on this aspect of Facebook. This will likely shift over time, but I believe that these considerations will be discussed in any article related to Facebook. If Facebook wants to remain a haven for activists it will be difficult if there are potential suits over people being activists. There will be an increase of risk aversion within the “owners” of the company as there will be influence from investors.

Zuckerberg has said that he plans on doing what is best for the long term and try to ignore the demands of investors. He might be able to do that because he still owns 57% of the voting rights for the company. However, it will be difficult for him to avoid the influence of the discourse of media outlets. Even if he gets all his news from his friends on Facebook, there will likely be articles posted that will give him news about the company and things that he probably won’t want to read.

Essentially, discussions will shift from being about the risk of privacy for users to how changes to Facebook will impact investors bottom line. I don’t think this is healthy for businesses, consumers of Facebook or the general public. There are other things companies do that are unrelated to investors that are important for society as a whole. The Facebook coverage really indicates that we don’t look at businesses in a long term sustainable manner. We need to change this if we want to save capitalism.