Bad Business

whither, blockbuster

As I’ve discussed previously, I’m a fan of Netflix in part due to their ability to stick it to Blockbuster. Years of usurious late fees and tacit censorship ensured that I will never support their business, even if they evolve a new business model around renting free self-help videos to under-served 3rd world nations.

Apparently I’m not alone in my Blockbuster dislike. Herr rental chain is going to miss their subscription target of 2 million online users for Q1 2006. For comparison, Netflix tallied 3 million customers in Q1 2005. BBI stock has been on a continual skid in the face of an industry-wide 12% decline in store-based revenue, and this news is unlikely to turn things around. Awwww …

Over a year ago, Motley Fool suggested that Netflix would hang around due to its advantage of engaging customers and satisfying their need to rent a broad variety of titles in addition to the latest releases. They were right; the NFLX stock has risen steadily over the past six months. And Netflix has recently boosted that capability by adding the “Friends” feature, by which you compare queues, ratings, and recommendations with other select Netflix users. I recently linked up with TJ, and I’m hooked. It adds a whole new dimension to see where you and friends agree or disagree about movies, providing a much-needed “community” angle to online rentals.

DVD rentals will eventually loose share to streaming video. But, like Amazon, Netflix has tapped into the need for additional context around transactions. This infrastructure and information will go a long way towards protecting their existing business, and allow them substantial leverage should they eventually partner with a content provider.

Are you paying attention, Blockbuster? What Netflix does well is called “branding” and “customer relationship management.” In case BBI execs are wondering, that’s different than “short-term revenue maximization.”

goodbye, you cardboard talking head

I pretty much stopped watching the 24/7 news networks after the election. It’s telling that an entire 90-minute morning news show can be summarized in five or six bullet points, so I’d rather spend 10 minutes surfing than watch a bunch of media types feign personal banter and lob softballs at near-scripted guests. Consequently, I hadn’t even realized that Bill Hemmer – one of the most ingratiating and painfully square news “personalities” (because the term “reporter” hardly applies) had left the show.

Hemmer, who made his reputation by lingering around dangerous and unpalatable locations – Kosovo, hurricane landings, and Broward County, to name a few – will continue the trend when he takes his anchor-approved side-parted coif across town to Fox News. While such a move is the career equivalent to selling your soul, a journo-tainer with Hemmer’s pedigree is clearly more interested in ratings than integrity. Case in point, Hemmer-style, from the Washington Post:

“I’ve watched Fox News grow for nine solid years. I find it to be an aggressive network. I find people show up every day to win, and that appeals to me . . . For several years, Fox has been the New York Yankees, and that’s a tough lineup to crack. I just feel fortunate to be given the opportunity to play on that team.”

What a purist. News professionals used to covet jobs at CBS because of Edward R. Murrow’s legacy of truth and honest journalism. Now they flock to FNC because Bill O’Reilly and Sean Hannity can bully guests and spout partisan propaganda under the guise of information. Pawns like Bill Hemmer are sock puppets that happily ingest whatever directives the clammy hands of corporate leadership shove into them. Enjoy the act, Bill. Just don’t expect to feel anything substantive inside when the master yanks his hand back out. Roger Ailes may not be the devil, but there ain’t no Daniel Webster walking the FNC halls either.

more fast food drama

I was a bit surprised to hear that Rick Linklater’s next project will be a dramatization of the all-too-real Fast Food Nation. The book is a sprawling exploration of cultural and economic issues surrounding the McMeal, so it was hard to imagine how this would play out. From a recent interview with the UK’s Empire magazine, it’s beginning to sound a little like Slacker with more meat, so to speak. Money quote:

Eric Schlosser and I, we wrote the script, kind of based on a town in Colorado where all the various sides are represented. It’s sort of the human effects of that industry; I guess that’s how you’d describe it … it’s the teenagers who work at the fast food places, and immigrant labourers who come across the border, working in the packing plants, and an executive.

Linklater is skilled with character-driven narratives (see: Tape, Before Sunset), and there’s no idea too big for him to film (see: Waking Life), so I’m guessing this could really work. You go, Rick.

gotn’t milk

The wife and I have gradually been switching to organic foods, especially for dairy products. Rachel prefers the idea of ingesting fewer growth hormones, while I prefer to think of it as an economic statement against corporate farming. Prices tend to be higher for organic foods, but I’m willing to accept it as a true cost of production without resorting to hazardous chemicals or questionable labor practices. Whether any of these assumptions are true is another story.

A routine visit to the Oltorf H.E.B. yielded a small surprise – Horizon organic milk was only available in gallon containers, and prices had increased to over $5 per gallon. A note on the freezer announced that an organic milk shortage was to blame for limited availability and increased prices. The Horizon website is mum on the subject (except for this legislative note), but other sites explain the situation in the US and the UK.

It’s misleading to say there is a shortage of organic milk – which implies that cattle udders have suddenly dried up – rather that demand has grown faster than farmers’ ability to keep up. As you may remember from economics class, high prices are supposed to encourage more farmers to produce organic milk, but because organic production must be certified over a period of months, even years, this is not a “free” market that can instantly adjust to accommodate our demands. Unless a slew of new organic farms are poised to complete the approval cycle, we’re probably stuck with reduced supply and increased prices until more cattle can be raised according to organic specifications.

Americans should be getting used to this scenario since it mirrors the current rise in gas prices. As much as we like to blame the oil companies for charging $2.15 a gallon for the same gas that cost $1.75 three weeks ago, they are simply responding to the same market forces as the organic milk suppliers, but on a global level. US demand for oil has risen in step with SUV sales, but the real pressure comes from China, where demand is now on the fast-track to fuel their rapidly-developing economy. And with no new reserves readily available to satisfy this insatiable global appetite, prices will continue to rise until demand and supply some to some sort of agreement.

I suspect that if the Oltorf H.E.B. knew such geopolitical economic forces lurked in their dairy case, they might clean it more often.

a tale of two georges

Last night, Rachel and I watched Outfoxed: Rupert Murdoch’s War on Journalism. Much like Fahrenheit 9/11, Outfoxed left me enraged at their target, dissatisfied with their film-making, and stewing over what to do next. Both films suffered from heavy-handed elements bordering on manipulation (Fahrenheit more so than Outfoxed), but ultimately demonstrate that bullying and spin have replaced debate and investigation as our modern political discourse. And no media outlet embodies this trend better than Fox News.

In between clips of Bill O’Reilly’s blustering slander and Sean Hannity’s partisan lies, it finally sunk in how much Fox News has abused and redefined journalistic standards. They have become our capitalist Pravda, using a singular voice and brazen disregard for facts to turn policy into truth and opinion into information. I used to find Fox News an amusing diversion akin to reading the opponent’s playbook, but now I realize that this is all a bit more serious.

I tossed and turned all night, and awoke thinking about the similarities between our current media environment and George Orwell’s 1984. Big Brother uses the threat of an ongoing war to unite Oceania, while today we have a never-ending War on Terror. The enemy of Oceania shifts to suit the needs of the Inner-Party, while our current war with Iraq places us against weapons and soldiers propagated by decades of US foreign policy. O’Brien refuses to accept any truth beyond that which the party dictates, while George Bush and Fox News continually demonstrate their disregard for debate and contempt for dissent.

Just as I was poised to go further with this comparison, I found a similar piece published in 2002 on AlterNet and another website dedicated to modern comparisons. So while mine is not a uniquely original supposition, I do have two observations to add to the Orwell discussion.

I generally associate the misuse of innocuous words with the military, where terms like “collateral damage” and “neutralization” are tossed about to obfuscate negative concepts, and corporate marketing that refuses to acknowledge negativity. But the modern Republican demogoguery has taken modern newspeak to a new low. According to Fox News, someone who disagrees with the party line is not a “conscientious objector” but is “unpatriotic,” if not a “traitor” or “terrorist.” Thanks to Rush Limbaugh, the term “Liberal” has long since lost its progressive meaning, but in the O’Reilly vernacular it also means “fringe” and “radical.” This debasement of terminology inherently eliminates the vagaries of discussion and turns every issue into a black-and-white, us-versus-them affair. It may not qualify as a newspeak deconstruction, but the effect is the same — the language gets smaller, nuance is destroyed, and thinking is limited.

There is one gaping difference with our current society, however, in that the poverty and hardship of Orwell’s society has been supplanted by unmatched prosperity and consumption. Previous war efforts have had economic consequences, from the rationing of World War II to the inflationary ‘guns-and-butter’ period during Vietnam, but today’s economy seems preternaturally healthy coming in the midst of massive operations in Afghanistan and Iraq. Our conflict has destabilized oil prices through the roof, yet Hummers and Suburbans squash the sales of fuel-friendly alternatives. How can this be?

Like most American families, the Bush administration is financing a geopolitical lifestyle on credit. While billions of dollars are spent for off-budget military operations, George plays the tooth fairy and leaves tax cuts under our pillow at night. No matter who you are, when expenditures exceed income, the bill must come due. But since the timing of the piper is uncertain and the amount to be paid exists only on paper, the economic rose-colored glasses remain firmly in place. It’s genius, really. Instead of bludgeoning the proles into workaday submission, they get SUVs and McMansions bought cheap on long dollars to salve the pain of discontent. With so much pursuit of happiness around, nobody gets too bothered to ask the tough questions about life and liberty, especially for those who talk funny and don’t watch the Final Four.

While Fox News is the most obvious and aggressive manifestation of this debasement, they are simply the logical outgrowth of a system in which media conglomerates battle for the attention of the lowest common denominator. It’s hard to tell the difference between CNN and ESPN most days, except Outside the Lines occasionally hits harder issues than Larry King.

Orwell’s dystopia was a society of intent, but ours is a society of neglect. There’s no Big Brother who has tightened the noose, rather we have cut loose the reigns of media responsibility and let them entangle haphazardly around our democratic necks. The media conglomerates were supposed to keep an eye on the government for us, but you can bet that Rupert Murdoch’s not watching your back unless there’s a hundred dollar bill on it.

So, what to do about all this stewing? First, writing this piece helped get some of it out of my system. Second, I’m finally going to support NPR during their next pledge drive. I may get tired of the overly-humanistic profiles of everyday nothing, but at least they care put a premium on discussion over bombast. And third, I’m going to do more to call Fox News and their Republican sycophants on partisan bullshit posing as fact. It’s not becoming to tell them to shut up, but it would be doubleplusgood to see them forced to face reality every once in awhile.