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Archive for July 2013

ads without an audience / an audience without ads

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From Choire Sicha’s review of Jaron Lanier’s Who Owns the Future in the current Bookforum

Put most simply: “The primary business of digital networking has come to be the creation of ultrasecret mega-dossiers about what others are doing, and using this information to concentrate money and power.” There is, quite literally, no future in this for almost any of us. Apart from this sprawling system of digital vampirism, publishing in general (books and newspapers especially) has taken a major hit from technological change—as did, you know, the lives of people who made cars and worked in offices. (The number of people in the labor force in America has now returned to the levels of the late 1970s, also known as the heyday of postwar economic malaise.) Colleges may very well be next—Harvard Business School professor Clayton Christensen said earlier this year that “higher education is just on the edge of the crevasse.” So might various science industries, or home health care, or international shipping, or taxi drivers, or accountants, or who knows what. We can each in turn go to our deaths giving away our value for some other entity’s benefit while working in industries that are losing their value as well, all for someone else’s disruption game.

The “creation of ultrasecret mega-dossiers” which, of course, as of now are generally used to fuel logarithms in order to serve us up ads on the websites that we visit to see the very stuff that no one’s being paid to produce anymore. As Sicha notes, this process has or threatens to put us all out of work: the media, artists, writers, and next educators, scientists, health care workers, shippers, taxi drivers, accountant – the list heads off toward encompassing just about everyone employed in post-industrial first world society.  (Even the bankers and hedgefunders are turning into machine minders and point of sale contact assistants).

But of course, there’s a massive historical irony haunting this process – one that is both very old and utterly new. The value of these universal archives of marketing-friendly information declines as the general financial welfare of the population declines – it’s useless running ads for those without money to spend, and the system itself threatens to make us all into just that. The situation takes the shape of a national or global version of the Walmart that moves into a rural town, undercuts the local shops, destroys the livelihoods of those that live town, and eventually is left with no one to sell to and thus closes up shop.

The situation feels ripe for the emergence of some sort of new, post-modern Fordism, where it dawns on the information industries that they themselves need to maintain some sort of consumer base to sell to, just as Henry Ford realised that if his own workers couldn’t buy his cars, there wouldn’t be many customers left over to sell to. If not, it seems we’re tending towards the situation in Alfonso Cuarón’s Children of Men, where the ads somehow keep rolling, even though there’s barely anyone left to view them.


Relatedly, a strange situation is emerging at the intersection of internet technologies and television. See this post by Jessica Lessin, which I found via a David Carr article in the New York Times.

For more than a year, Apple has been seeking rights from cable companies and television networks for a service that would allow users to watch live and on-demand television over an Apple set-top box or TV.

Talks have been slow and proceeding in fits and starts, but things seem to be heating up.

In recent discussions, Apple told media executives it wants to offer a “premium” version of the service that would allow users to skip ads and would compensate television networks for the lost revenue, according to people briefed on the conversations.

Consumers, of course, are already accustomed to fast-forwarding through commercials on their DVRs, and how Apple’s technology differs is unclear.

It is a risky idea. Ad-skipping would disrupt the entrenched system of television ratings—the basis for buying TV ads. In fact, television broadcasters sued Dish Network when it introduced similar technology last year.

On the other hand, it is no secret that fewer and fewer people are watching commercials thanks to DVRs; networks may very well be eager to make, rather than lose, money off the practice.

It is a “risky idea,” for both parties, but what is interesting is that the added loops of the situation bring to the fore some of the strange effects that I’d like to label the “metaphysics of advertising.” (I’m following from Marx’s description of the commodity in the section of Capital on commodity fetishism – “A commodity appears, at first sight, a very trivial thing, and easily understood. Its analysis shows that it is, in reality, a very queer thing, abounding in metaphysical subtleties and theological niceties” (italics mine).

At any rate, in the case of the television negotiations, the advertisement is there at once to bring to market the value of the customers’ eyeballs, but also as a sort of ransom-able distraction from the content itself. I.e. one side pays to put them in, the other side pays to have them taken away. In a sense, we’re drawing close to the situation I blogged about yesterday with what I called the “Sisyphusian capitalism” of Goldman Sachs’s entry into the commodity handling business, where they draw a rent simply by slowing an economic process down. Could one imagine a situation where the advertisements are included solely so that they might be destroyed? 

Written by adswithoutproducts

July 30, 2013 at 9:58 am

aluminum can’t: sisyphusian capitalism

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From the New York Times a few days back:

Hundreds of millions of times a day, thirsty Americans open a can of soda, beer or juice. And every time they do it, they pay a fraction of a penny more because of a shrewd maneuver by Goldman Sachs and other financial players that ultimately costs consumers billions of dollars.

The story of how this works begins in 27 industrial warehouses in the Detroit area where a Goldman subsidiary stores customers’ aluminum. Each day, a fleet of trucks shuffles 1,500-pound bars of the metal among the warehouses. Two or three times a day, sometimes more, the drivers make the same circuits. They load in one warehouse. They unload in another. And then they do it again.

This industrial dance has been choreographed by Goldman to exploit pricing regulations set up by an overseas commodities exchange, an investigation by The New York Times has found. The back-and-forth lengthens the storage time. And that adds many millions a year to the coffers of Goldman, which owns the warehouses and charges rent to store the metal. It also increases prices paid by manufacturers and consumers across the country.

Thoughts right now about what it would feel like to be of the drivers of that fleet of trucks. Absolutely meaningless efforts in the service of bending a crimp in the system’s hose ironically to keep the profits fluid. Like a not quite as dark version of this:

 “I avoided a vast artificial hole somebody had been digging on the slope, the purpose of which I found it impossible to divine. It wasn’t a quarry or a sandpit, anyhow. It was just a hole. It might have been connected with the philanthropic desire of giving the criminals something to do. I don’t know. Then I nearly fell into a very narrow ravine, almost no more than a scar in the hillside. I discovered that a lot of imported drainage-pipes for the settlement had been tumbled in there. There wasn’t one that was not broken. It was a wanton smash-up. At last I got under the trees. My purpose was to stroll into the shade for a moment; but no sooner within than it seemed to me I had stepped into the gloomy circle of some Inferno. The rapids were near, and an uninterrupted, uniform, headlong, rushing noise filled the mournful stillness of the grove, where not a breath stirred, not a leaf moved, with a mysterious sound — as though the tearing pace of the launched earth had suddenly become audible.

At any rate, go read the rest…

Written by adswithoutproducts

July 29, 2013 at 3:27 pm

Posted in conrad, inefficiency