Published: August 13th 2011 - at 10:16 am

Why isn’t more of our media industry held in mutuals?


by Guest    

The debate on media plurality recognises that who owns newspapers matters, but says little about how they’re owned; the regulation debate recognises that media need to be held to account but is focussed on external control, with little conception of the potential for greater internal accountability.

But what if our media were owned differently, where journalists, executives and boards accountable for their actions to empowered readers and staff? What if media could be co-operative?

One of neo-liberalism’s greatest tricks has been to persuade the world that the politics of ownership don’t exist, drawing a veil over how power flows from control.

That absence is even worse with the media, where we seem to have never known any different to powerful oligarchs. But we know that ownership matters; a newspaper not owned by a not-for-profit trust would not have given Nick Davies time and resources to pursue his story in the face of constant demands to pay shareholders dividends.

But as great as the Guardian’s ownership structure is, it – and that of any other paper – could be better. Its army of worldwide followers don’t need to choose between consuming it (or donating to it) when they could also invest in it, own it and shape it.

It works for plenty of other businesses. Customers own the Co-operative, whilst employees own the John Lewis Partnership. new sectors are successfully adopting co-operation, from the Plunkett Foundation’spubs and shops and Supporters Direct in sport. Already in the media, The New Internationalist and the West Highland Free Press are owned by their staff.

Mutual media would be independent, but regulated internally by its members; it was those members who drove the Co-operative’s adoption of fair trade well before it became commonplace. With greater employee ownership, the NUJ code of conduct could be the standard ethical template, whilst co-ownership would help make co-production with readers a genuine collaboration, not free labour to undercut staff.

So how could we get this? The easiest way is through giving a tax break on investment by readers and staff into a co-operative structures in the media. We could ensure that if groups have to divest existing titles, they’re converted into co-operatives.

Regulators can stipulate that when local and regional groups want to amalgamate, or close titles, those outlets are offered to their readers and staff first. We could provide support for the creation of new outlets in communities where existing titles have disappeared rather than giving over-leveraged regional groups more freedom to ‘rationalise’ at local level.

We could mutualise the BBC Trust to provide genuine accountability to licence payers and independence from the state.

All of these go against the market-centred approach modern governments have pursued, but in media policy there is a long-standing practice of intervention to achieve a public interest. If we want a public goods to be delivered by private concerns, we need those private concerns to have the DNA of accountability to a public built into them.

The big question is whether people would invest and join media co-ops, which is to say, would people care enough about their media to actively come together to co-fund and produce it? If they don’t, the that’s a far greater problem for the media than co-operation.


Dave Boyle (@theboyler) is a consultant and writer, having been Chief Executive of Supporters Direct. He is a member of the Business Development Panel at Co-operativesUK, the UK campaign for co-operation.


This piece is part of a joint debate on media reform in the UK — between Institute for Public Policy Research (IPPR), Liberal Conspiracy, ourKingdom and Liberal Democrat Voice.


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Reader comments


The title and formatting are a bit off…

On Co-ops, though, it’s been argued by a number of leftists as the way towards a ‘socialist market economy’ or simply a method of ameliorating the excesses of capitalism. Is Press reform not just the tip of the iceberg?

One of neo-liberalism’s greatest tricks has been to persuade the world that the politics of ownership don’t exist, drawing a veil over how power flows from control
This is a mess btw.

That is of course precisely why the BBC cannot be neutral, it is paid for by the state and its preference for high taxes is in its DNA. The danger of funding defining content is over-powering where there are no contrary discipline.The BBC does not have to be profitable and even popularity is not required provided it can kill of competition by its monopolistic ability to sell product for nothing.( Hence its followership on Breakfast TV , 24 hour News , Pop Radio , on line content et al)
On the other hand there is nothing to stop any mutual being formed or any private Company adopting a leftish ,line if they think people will buy it . So provided there is reasonable entry into the market, and there is, there is no reason to think that private ownership will of itself warp the media.

Look at what is happening to the Guardian now. It is plainly considering going to a pay wall model for its on line content which as a free loss leader is a patently an absurd model so who was it that made this innovation ?
Murdoch of course who was also the man that made the vibrant Press possible by beating the Unions and who the Guardian follow like a little dog once again. The Guardian remember is not really financing it is subsidised by pointless Public Sector Job ads by which the State`s media arm extracts tax payers money to persuade them they should hand more of it over .

As for Co-ops …start one, no-one is stopping you, they work at a low level and it is possible in very stable conditions with along established brand . In a changing Economy however the Co-op problem is this :

Why would anyone start a Company and pour his ideas money and time into so as to give the winnings away should he be lucky enough to establish a New Company ? No reason .. no co-ops then ,left ish people who have no experience of how business is actually conducted always make this static state mistake

…and that is the end of that

“One of neo-liberalism’s greatest tricks has been to persuade the world that the politics of ownership don’t exist, drawing a veil over how power flows from control. ”

What ghastly nonsense is this?

Neo-liberalism is just fine with any form of ownership that people wish to use. I know, I am a neo-liberal.

“Customers own the Co-operative, whilst employees own the John Lewis Partnership.”

Super, excellent, partners own partnerships too. Use whatever structure you desire to run an organisation.

We neo-liberals really, honestly, don’t give a shit what ownership structure is used at any one particular organisation or even in an entire sector of the economy.

All we desire is that there is a market in forms of ownership so that over time the best forms of ownership for any specific organisation or sector of the economy emerges.

You know, like maybe mutuals, cooperatives, partnerships, for profit corporations, government departments, which of these might be the best way of delivering health care?

You really are sickeningly naive Tim. You must realise that even if a ‘market’ does produce ‘the best forms of ownership’, we have to ask the best for who? The best for oligarchs? The best for shareholders? The best for those who wish to use their economic power to corrupt democratic processes? The best for consumers? The best for society as a whole? There is no such thing as a ‘free’ market, so we have to decide on the boundaries of said market. That brings us back to the beginning again. We have a market today that favours the first few of those. I suggest we look at creating a ‘market’ that makes the latter few more likely to benefit.

@2

“Its preference for high taxes is in its DNA”.

That is one heck of a pile of fresh and steaming horseshit. Fortunately it alerts anyone looking in to disregard the rest of the comment.

Paul Newman: “That is of course precisely why the BBC cannot be neutral, it is paid for by the state and its preference for high taxes is in its DNA.”

It’s a good point on one level: but you could say exactly the same in reverse about any commercially-run media organisation. They are pretty much uniformly to the right of opinion polls at least on economic issues – I suspect because they, being (international) profit-oriented organisations, much prefer lower taxes (and unregulated international trade).

In addition, many organisations are very hierarchical. To express a controversial opinion in most organisations without getting into trouble you need to be senior. Naturally, output will tend to reflect the views of the top brass – who being wealthy in most cases, tend to be more hostile than average to left wing ideas which frequently involve decreasing their power/wages or increasing their taxes (this applies equally to the BBC, of course).

In their defence, the BBC has extensive and serious controls in place to try to preserve editorial independence; most commercial organisations simply don’t, or have controls everyone knows are a joke (see, for example, how outlets Murdoch officially doesn’t editorially control virtually always have startlingly similar opinions on big issues to the ones that he does).

I think having media run by co-operatives is an excellent idea. However, there are obstacles, which is why they don’t dominate already: a co-operative will find it hard to compete. Basically, you need to find the start-up capital from somewhere – and then you’re constrained by the collective morality of your workforce/members; it’s a sad fact that in an unregulated marketplace you will be outcompeted for a large slice of the advertising market by ruthlessly commercial papers prepared to publish basically fabricated stories about celebrities and ethnic bogeymen (etc) which sell papers. Which is precisely why we want the co-operatives in the first place, of course…

“It’s a good point on one level: but you could say exactly the same in reverse about any commercially-run media organisation. They are pretty much uniformly to the right of opinion polls at least on economic issues”

So are economists…..

I think issues of ownership are very important and apply to media organisations as much as to any other employer. Many of the problems in our society can be traced to a large swathe of the population not owning very much. As a consequence, they do not have much sense of having a stake in society. A relatively small group owning most of the country’s assets and income stream was not sustainable in the feudal era and it is not sustainable now. Warren Buffett, one of the richest men in the world says it is not sustainable and he is right.

For far too many it makes little difference whether the economy is doing well or badly because they do feel as if they gain anything. Arguing over how we got here is pretty pointless. What do we do about it is the real issue. We need to figure out ways for those who have no share of the country’s assets to build up their stake. Except in limited natural monopolies state ownership is not the way forward. We tried statism and it did not work. Handouts just create dependency and free-riding problems that result in resentment.

More localised co-ownership models is one way to build up the assets of the have nots. It would not be too difficult through the tax system to encourage a mutual model in media ownership. Although, ownership of assets is not directly related to media plurality. Similarities around this issue are at the heart of so many of our societal problems.

Chris Cook has some interesting ideas about new partnership-based enterprise models.

http://p2pfoundation.net/Chris_Cook

http://www.metamute.org/en/beyond_public_and_private

http://www.policyinnovations.org/ideas/innovations/data/000085

http://theconnectedrepublic.org/posts/327

http://www.co-opnet.coop/viewtopic.php?f=2&t=829#p2825

We could mutualise the BBC Trust to provide genuine accountability to licence payers

There are 12 trustees. They could be directly elected by license fee payers. Then, any outside restrictions on the BBC’s remit could be relaxed — so it could move into music, software, websites, magazines etc, if its trustees/license-payers wanted.

hopefully text after here will no longer annoyingly be in italics.

11. Paul Newman

Phil … along with shrinking the BBC so as to stop it interfering with nacent media industries that is a good idea . We should also politicise the appointment of judges now they are lawmakers themselves as in the States
The problem with the BBC is its recruitment it has an institutional bias just as the Met had and it is only on the same level it can be addressed . I think you would be amazed at how much resistance the the BBC would put up to genuine accountability

why did my comment about the BBC being overrun with tories get deleted?


Reactions: Twitter, blogs
  1. Liberal Conspiracy

    Why isn't more of our media industry help in mutuals? http://t.co/NK2kvp7

  2. KCI

    Why isn't more of our media industry help in mutuals? http://t.co/NK2kvp7

  3. James Mackenzie

    RT @libcon Why isn't more of our media industry help in mutuals? http://t.co/iNOOcPG « yes, this, from @theboyler

  4. Steve Hill

    Why isn’t more of our media industry held in mutuals? http://t.co/PaqVSKN

  5. Dave Boyle

    written a piece @libcon: why isn't more of our media industry held in mutuals? http://t.co/2o0NLSH « #coops tweeps comments elf be helpful!

  6. Tom Davies

    written a piece @libcon: why isn't more of our media industry held in mutuals? http://t.co/2o0NLSH « #coops tweeps comments elf be helpful!

  7. Sj Maskell

    written a piece @libcon: why isn't more of our media industry held in mutuals? http://t.co/2o0NLSH « #coops tweeps comments elf be helpful!

  8. Maire Davies

    written a piece @libcon: why isn't more of our media industry held in mutuals? http://t.co/2o0NLSH « #coops tweeps comments elf be helpful!

  9. MJ Ray

    @theboyler tried twice to comment on your @libcon http://t.co/DXOFAvn #media #coops about taz.de but it just displays a blank page. #fail

  10. Tom Davies

    Media chin-strokers, stop and read this from @theboyler – why isn't more of our media industry held in mutuals? http://t.co/V5bV3mw #media

  11. Will Horwitz

    good question – why isn't more of our media owned by mutuals? http://j.mp/olF6nS

  12. Co-operative Party

    '@theboyler writes for @libcon on #mutuals ownership in the media http://s.coop/3nfk

  13. Martin Tiedemann

    '@theboyler writes for @libcon on #mutuals ownership in the media http://s.coop/3nfk

  14. Simon Mapp

    '@theboyler writes for @libcon on #mutuals ownership in the media http://s.coop/3nfk

  15. Karl Wilding

    RT @willhorwitz: good question – why isn't more of our media owned by mutuals? http://j.mp/olF6nS <good stuff from @theboyler.

  16. Simon

    http://liberalconspiracy.org/2011/08/13/why-isnt-more-of-our-media-industry-help-in-mutuals/

  17. RupertRead

    A good piece: Why isn’t more of our media industry held in mutuals? | Liberal Conspiracy http://t.co/oSeHyGm via @libcon

  18. Tom Davies

    Media chin-strokers, stop and read this from @theboyler – why isn't more of our media industry held in mutuals? http://t.co/V5bV3mw #media

  19. Maire Davies

    Media chin-strokers, stop and read this from @theboyler – why isn't more of our media industry held in mutuals? http://t.co/V5bV3mw #media

  20. Paul Dale Smith

    RT @theboyler: written a piece @libcon: why isn't more of our media industry held in mutuals? http://t.co/fRrQPSo « #coops

  21. Tom Davies

    Oh, and once you've read this – http://t.co/V5bV3mw – why not join this discussion group – http://t.co/WlHssro #media #nuj #co-ops

  22. rob jewitt

    Why isn’t more of our media industry held in mutuals? | Liberal Conspiracy http://t.co/iNzLzLp via @libcon @theboyler

  23. Vic

    Why isn’t more of our media industry held in mutuals? : http://t.co/vXarpxy > you could say the same for the #socialcare industry

  24. Why We Need Media Co-ops | Dave Boyle

    [...] on August 13th, 2011 in Analysis, Published First published on Liberal Conspiracy on the need to consider issues of media ownership in the context of how they are owned, not just [...]





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