The Geek In The Corner

Michael Hedges August 29, 2011 Follow on Twitter

That the media sector failed to recognize the ascendant changes brought on by the digital revolution is, by now, a well-worn cliché. Broadcasters, publishers and other content producers have all been dutifully flailed for their dismissal, disregard, missteps and madness. Big ideas, it seems, take a long time to sink in.

Google Chairman of the Board Eric Schmidt delivered a ripping MacTaggart Lecture at the annual Media Guardian Edinburgh International Television Festival (August 26). With an engineers precision he encapsulated every dilemma faced by British media – and, arguably, media generally – as the advance of technology races on. Noting that his appearance was the first by “someone not employed in television broadcasting or production,” Dr. Schmidt referred to himself as “the geek in the corner.” Self-deprecation at the outset is key to winning the attention of ego-ravaged broadcasters.

With a dizzying display of data Dr. Schmidt introduced his lecture subject by reminding those listening that the internet “has become an engine of change. It has recast the way we communicate. It has transformed the way we learn and share knowledge. It’s empowering people everywhere, making the world more open, fairer and more prosperous.”

Television being the sphere to which he spoke, Dr. Schmidt poured on the data. “In 2010, UK adults spent more time watching TV in four days as they did using the web in a month. TV is still clearly winning the competition for attention.” Later he would casually mention the roll-out of Google TV in the UK.

But the digital master made clear his main point. “You ignore the internet at your peril. The internet is fundamental to the future of television for one simple reason: it’s what people want.”

Nobody in the media world now ignores the internet. Many, though, don’t understand it or its popular utility. If it moves massive amounts of content for free, it must be bad. “Taken to the ultimate, (online television) would be like the perfect TV channel, always exciting, always relevant, sometimes serendipitous, always worth your time.” Are you seated comfortably?

“So, what are the trends to watch? I can sum that up in three words: mobile, local and social,” said Dr. Schmidt. “And if you think all of this is exciting – or frightening – remember, this is only the beginning. In technological terms, we’re scarcely at the end of the first act of the internet age.”

There have been many beginnings in the media world brought on by technological change, which Dr. Schmidt carefully enumerated, each bringing apocalyptic fear. Newspaper publishers called television a “parasite” in 1957, more than fifty years before then ITV chief executive Michael Grade attached the same pejorative to Google. “History shows that in the face of new technology, those who adapt their business models don’t just survive, they prosper. Technology advances, and no laws can preserve markets that have been passed by.”

After reciting the strengths of British television – the “courage, ambition and deep pockets” of Sky, the restructuring of ITV and “the world is the BBC’s oyster” – Dr. Schmidt reminded the television people that “well, everything” could go wrong. “Your track record isn’t great.”

First ripped was British education. “I was flabbergasted to learn that today computer science isn’t even taught as standard in UK schools. Your IT curriculum focuses on how to use software, but gives no insight into how it’s made.” Yep, all the kids are on Facebook.

“The world needs more engineers,” he explained as he corrected the exhortation attributed to British reality TV show host and serial entrepreneur Alan Sugar that engineers are no good at business. “I don’t think we’ve done too badly,” noted Dr. Schmidt.

As Dr. Schmidt connected art and science to the realms of education and the business at hand, he noted in a remark off the advanced script the retirement last week of someone else who hasn’t done too badly. “Steve Jobs (Apple CEO) had an artist's eye as well as a definition of what great engineering is.”

Next ripped was attitude toward dynamic greatness. “The UK does a good job at backing small firms and cottage industries,” he noted. “But there’s little point at getting a thousand seeds to sprout if they’re then left to wither or get transplanted overseas.”

Eric Schmidt and Google (and Apple and Microsoft and Yahoo and Facebook) have strength of global scale. Unlike these technology giants, pure media houses face a universe of constraints, hardly limited to the UK. Rupert Murdoch’s ambition for News Corporation was to achieve a global footprint – with accompanying revenue – to provide leverage against Google. It hasn’t happened and, as News Corporation’s recent management crisis shows, it likely never will.

With care Dr. Schmidt referred to innovation at the BBC, imperiled as it is by the current government’s effort – perhaps under the guidance of Clan Murdoch – to trim its sails. “The iPlayer is a case in point. It’s a great product. It would be better if it extended to more channels. But despite several valiant attempts, clever lobbying resulted in regulators blocking it – seemingly on the basis that it would be too successful.”

Because of its ubiquity the BBC is oft mentioned in the annual MacTaggart Lecture. Two years ago, James Murdoch used it as a forum to excoriate the BBC for its “chilling” activities. With almost daily revelations of “chilling” activities at News Corporation owned newspapers in the UK, the criticism seems ill advised. It’s hard to imagine James Murdoch lecturing anybody in the foreseeable future.

Still, there’s a coming understanding that “global champions” – a phrase used by French President Nicolas Sarkozy – have unique value within the media sector.  “One of the things that surprises me about the debate about the BBC is, here is an institution that is clearly a big global brand, a powerful global brand, recognized as the best in the world in many areas,” said science professor turned broadcaster Brian Cox at the weekend MacTaggart Q&A (August 27). “And what the British disease is, is to even consider damaging that institution.” It is not, simply, a British disease as anti-trust complaints across Europe against any company larger than a tea-cup abound.

The closest Dr. Schmidt came to vitriol was a rebuke of UK media rules. “Just imagine if Facebook had to endure regulation like you face in TV. There’d have to be separate Facebooks for each region. Staff would need to be spread out – Salford would be an engineering hub. There’d be rulings to enforce diversity of wall posts, with quotas for religion and education. And you could forget about poking before the watershed. I could go on, but I think you get the point.”

Yes, thank you, and he also mentioned that “one of the most egregious areas is the micro-regulation around TV advertising. Your advertising industry is world leading…yet it doesn’t get championed by policy makers. In fact, just the opposite.” In fact, it’s an issue throughout Europe.

There will always be a tether between technology and media. Eric Schmidt made the point over and over that “Google is a technology company. Trust me, if you gave people at Google free rein to produce TV you’d end up with a lot of bad sci-fi.”

“The computing and creative industries are both on remarkable journeys,” said Dr. Schmidt in summation. Sometimes our paths will intertwine where you least expect. Sometimes there’ll be potholes and false starts. Sometimes – I hope – there will be shared success.”

“Save us from the engineers,” said a top rank broadcast executive in the pre-Facebook early years of digital transition after a presentation by technology experts. The language was foreign, foreboding, perhaps unlearnable. But when we can’t step outside our comfort zone, we can be pushed out.

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