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kottke.org posts about business

How France’s Film Industry Works

The film industry in France works a little differently that the American film industry. In this video, Evan Puschak explains how France treats filmmaking as a public good to be invested in at all levels.

One of the most interesting things is that the government gives grants to filmmakers that are specifically untethered to box office success in order “to support an independent cinema that is bold in terms of market standards and that cannot find its financial balance without public assistance”. Filmmakers who have made their early work with this public assistance include Agnes Varda, Celine Sciamma, and Claire Denis.

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When the Ceiling Gets Lower

Technology analyst & scholar Dan Wang was one of the folks on the walk and talk I did in northern Thailand back in December. In his annual letter for 2023, Wang recapped the walk, using it as a jumping-off point for his wheelhouse topic: China. Most interesting to me were his observations about the trend of Chinese moving abroad, including to Thailand.

Many people still feel ambivalence about moving to Thailand. Not everyone has mustered the courage to tell their Chinese parents where they really are. Mom and dad are under the impression that they’re studying abroad in Europe or something. That sometimes leads to elaborate games to maintain the subterfuge, like drawing curtains to darken the room when they video chat with family, since they’re supposed to be in a totally different time zone; or keeping up with weather conditions in the city they’re supposed to be so that they’re not surprised when parents ask about rain or snow.

There still are some corners in China that are relatively permissive. One of these is Yunnan’s Dali, a city on the northern tip of highland Southeast Asia, where I spent much of 2022. There, one can find the remnants of a drug culture as well as a party scene for an occasional rave. But even Dali is becoming less tenable these days since the central government has cottoned on that the city is a hub for free spirits. The tightening restrictions emanating from Beijing are spreading to every corner of the country. “China feels like a space in which the ceiling keeps getting lower,” one person told me. “To stay means that we have to walk around with our heads lowered and our backs hunched.”

I also recently read this piece about The Chinese Migrants of Chiang Mai by Amy Zhang (via Jodi Ettenberg)

What strikes me is how Thailand’s porousness — the fluidity of entries and exits due to the comparatively lax visa processes compared to other countries — mean that while some can stay and enroll their kids in school here, some may go back to China after a long visit, carrying new ideas and experiences with them home. And in this case, it’s Chinese feminism being discussed in Chiang Mai, while feminist and LGBTQ+ groups are being increasingly suppressed in China itself.

The sentiment in that line quoted by Wang — “China feels like a space in which the ceiling keeps getting lower” — probably feels quite familiar to many here in the United States, particularly women, LGBTQ+ folks, and their families living in states with increasingly draconian laws around bodily autonomy.

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The Stanley Water Bottle Craze, Explained

Amanda Mull, writing for the Atlantic about the internet’s fad du jour, the Stanley cup (the water bottle, not the hockey trophy):

How did Stanley, which has seen its annual revenue increase from $73 million in 2019 to a projected $750 million in 2023, become so popular, so quickly? Lots of very smart people have tried to reverse engineer an explanation to the Stanley mystery — why this cup, right now, out of all the zillions of insulated drinking vessels available to American shoppers? But the actual story here is more about the nature of trends themselves than about a cup. There is no real reason any of this happened, or at least no reason that will feel satisfying to you. Sometimes a cup is just a cup in the right place at the right time.

But actually, I think this video from Phil Edwards comes pretty close to nailing why these cups are hot right now: it’s got a lot to do with savvy marketing and the CEO Stanley brought in in 2020.

From a Harvard Business Review podcast with Stanley CEO Terence Reilly, who was formerly the CMO of Crocs:

TERENCE REILLY: Well, I didn’t do anything, we had an amazing team at Crocs, similar to Stanley. One day, Toria Roth, who was just fresh off of her internship at Crocs, she walked into my office, the CMO’s office, and she said, “Terence, do you have a minute?” And she showed me a photo of Post Malone wearing Crocs.

ALISON BEARD: And Post Malone is a very popular musician.

TERENCE REILLY: Absolutely. And he wasn’t wearing them with any sort of irony, he just was wearing them. And she said, “This could be something for Crocs.” And so, I reached out to the folks that manage Post Malone, and I said, “Hey, would you be interested in a partnership or a collaboration where Post could create his own Crocs?”

And a few months later, the first celebrity collaboration with Crocs was born. And I think it broke the Crocs website when they went live, we had more people waiting than we could handle. And obviously, that set the stage for multiple artists and brands over the following years to collaborate with Crocs.

I remember when Crocs suddenly (and confusingly) became cool — one summer, all of the campers at my kids’ summer camps were wearing them. The summer before that, well…”those holes are where your dignity leaks out”.

I watched Edwards’ video with my 14-year-old daughter (she saw it on my YouTube homepage and was like, “wait, what’s that?”) and we talked about it afterward. She has a Quencher that she bought a couple of months ago and when I asked her why she got it, she replied that it had been blowing up on TikTok. But, she also said that the Stanley is better than any of her other water bottles because of the straw — she actually uses it more because the straw is easier to drink from and doesn’t require any unscrewing or flip-topping or anything and can be done without actually picking up the cup.

I also told her about how cool teen trends spread when I was a kid growing up in the 80s in an isolated rural area. There was no internet and certainly no TikTok, so we’d end up getting trends months later than other parts of the country, after they were already trending downward. We’d usually hear about them from the TV news…Tom Brokaw or some local anchor on channel 4 telling us about Rubik’s Cubes or valley girls or hacky sacks or parachute pants. She thought that was hilarious: teens hearing from adults about what teens thought was cool. We had it so hard back in the day — our memes delivered by adults, weeks late!

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Coyote Vs. Acme Movie! Shelved?!

That's All Folks

I just found out today that they made a movie version of Ian Frazier’s classic 1990 New Yorker piece Coyote V. Acme, in which Wile E. Coyote files a product liability lawsuit against the Acme Company.

Mr. Coyote states that on December 13th he received of Defendant via parcel post one Acme Rocket Sled. The intention of Mr. Coyote was to use the Rocket Sled to aid him in pursuit of his prey. Upon receipt of the Rocket Sled Mr. Coyote removed it from its wooden shipping crate and, sighting his prey in the distance, activated the ignition. As Mr. Coyote gripped the handlebars, the Rocket Sled accelerated with such sudden and precipitate force as to stretch Mr. Coyote’s forelimbs to a length of fifty feet. Subsequently, the rest of Mr. Coyote’s body shot forward with a violent jolt, causing severe strain to his back and neck and placing him unexpectedly astride the Rocket Sled. Disappearing over the horizon at such speed as to leave a diminishing jet trail along its path, the Rocket Sled soon brought Mr. Coyote abreast of his prey. At that moment the animal he was pursuing veered sharply to the right. Mr. Coyote vigorously attempted to follow this maneuver but was unable to, due to poorly designed steering on the Rocket Sled and a faulty or nonexistent braking system. Shortly thereafter, the unchecked progress of the Rocket Sled brought it and Mr. Coyote into collision with the side of a mesa.

My excitement was tempered almost immediately by hearing that Warner Bros. has shelved the completed film (starring John Cena & Will Forte and produced by James Gunn) in order to take a $30 million tax write-off.

In another maneuver by the David Zaslav-run Warner Bros Discovery to kill movies, we hear on very good authority that Warner Bros will not be releasing the hybrid live-action/animated Coyote vs. Acme, with the conglom taking an estimated $30M write-down on the $70M production. We understand the write-down for the pic was applied to the recently reported Q3.

What the fuck? Understandably, the folks who made the film are pissed.

I was lucky to help write on this. [Dave Green] spent years directing a hilarious heartwarming film that tested well with every audience. If great stories with beloved characters and A-list stars are getting shelved for tax write offs, why are studios even in the movie business.

Release the film, you cowards!

Update: Warner has apparently agreed to let the filmmakers of Coyote vs. Acme find alternate distribution for the film.

Warners declined to comment, but a good source tells me the decision was made this weekend by Warners film chiefs Mike De Luca and Pam Abdy, along with new animation head Bill Damaschke, after the online outcry by filmmakers and the animation community, as well as some heated back-and-forth between the studio and reps for the director and stars. Warners had agreed to pay the top talent their streaming bonuses despite the film being scrapped, but obviously, everyone involved in this project wants it to be released by someone.

And here’s a behind-the-scenes reel of the filming…it kept getting taken down from Twitter & YT but has found a home on the Internet Archive.

(thx, andy)


What a Japanese Neighborhood Izakaya Is Like

This is great and I loved it to bits: a 15-minute video from the Life Where I’m From YouTube channel about a tiny izakaya (13 seats!) in Tokyo owned and operated by a woman called “Mama” by her regulars.

When Mama is busy, regulars at this izakaya will serve themselves, get their own beers, get their “bottle-keep” and make their own drinks. They’ll also help out Mama-san by serving other customers as well. […] Bottle keep is when a customer buys a bottle and the shop holds on to it for them. Then the next time they visit they can drink from that bottle again.

I’ve got lots of thoughts about this and connections to make! The izakaya’s casual help-yourself atmosphere reminded me of a post I made here more than 20 years ago called Business Lessons From the Donut and Coffee Guy.

“Next!” said the coffee & donut man (who I’ll refer to as “Ralph”) from his tiny silver shop-on-wheels, one of many that dot Manhattan on weekday mornings. I stepped up to the window, ordered a glazed donut (75 cents), and when he handed it to me, I handed a dollar bill back through the window. Ralph motioned to the pile of change scattered on the counter and hurried on to the next customer, yelling “Next!” over my shoulder. I put the bill down and grabbed a quarter from the pile.

I followed that up with another post a few years later:

I get my occasional donut in another part of town now, but I noticed something similar with my new guy. Last Friday, the woman in front of me didn’t order anything but threw down a $20, received a coffee with two sugars a moment after she’d stepped to the window, and no change. As they chatted, I learned that the woman pays for her coffee in advance. The coffee guy asked her if she was sure she owed today. “Yep,” she replied, “It’s payday today; I get paid, you get paid.” Handy little arrangement.

Get to know your customers and trust them — it’s a simple thing that even some small businesses never master.

If this place was on my commute home, I would definitely be a regular — it seems more like someone’s living room than a bar. But there are definitely spots with similar vibes in all sorts of places in the world. Last year, I went to a restaurant in Philadelphia called Her Place that also felt like this. From my sabbatical media diet:

A unique dining experience that’s not unlike going over to someone’s house for a dinner party. There are two seatings a night, at 6:00 and 8:30; all parties are seated at the same time. It’s a set menu with no substitutions and everyone in the restaurant is served at the same time. Every course or two, the chef quiets the diners to explain what’s coming up, who cooked it, where the ingredients are from, and anything else she thinks is relevant. It’s operationally smart and creates a great dining environment. Esquire just named it one of the best new restaurants in America.

Great meal and experience. I felt like a regular even though I’d never been there before. Speaking of, I wrote about being a regular back in 2013:

This is a totally minor thing but I love it: more than once, I’ve come in early in the evening, had a drink, left without paying to go run an errand or meet someone somewhere else, and then come back later for another drink or dinner and then settle my bill. It’s like having a house account without the house account.

I really miss that place — I moved away several years ago now but went back to visit as often as I could. But Covid (and an asshole landlord) killed it.

One last thing Mama’s izakaya reminded me of is when I visited a restaurant in Istanbul called Meşhur Filibe Köftecisi.

While I waited for my food, I noticed an order of köfte going out of the kitchen…to a diner at the restaurant across the street. When he was finished, the staff at that place bussed the dishes back across the way. Meanwhile, my meal arrived and the köfte were flavorful and tender and juicy, exactly what I wanted…no wonder the place across the street had outsourced their meatballs to this place. I’d noticed the owner, the waiter, and the cook drinking tea, so after I finished, I asked if I could get a tea. The owner nodded and started yelling to a guy at the tea place two doors down. A few minutes later, a man bearing a tray with four glasses of tea arrived, dropping one at my table and the other three for the staff. Just then, a server from the place across the street came over to break a 100 lira bill. Me being a big nerd, this all reminds me of Unix and the internet, all of these small pieces loosely joined together to create a well-functioning and joyous experience. There’s only one thing on the menu at Meşhur Filibe Köftecisi, but you can get anything else within yelling distance. I declined dessert…who knows where that would have come from.

(via andy, who correctly guessed this was up my alley)

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Online Media and Win-Win Patronage

This piece on How to Compete with Patreon by Siderea is interesting throughout, but this bit on enabling “non quid pro quo patronage” caught my eye:

There is an entire little universe of people using Patreon to be funded to do good works in the world. These may be open source contributors. They may be activists. They may be journalists or bloggers. They do not make things that they exchange for money with the people who pledge them on Patreon.

Their patrons do not pay these creators to give things to them. Their patrons pay these creators to give things to the world: to release code for anyone to use, to engage in activism that changes the world for the better, or to write things that anyone can read.

I’m one of them. The number one reason I signed up for Patreon as my funding platform nine years ago, was because it was literally the only way of funding my writing that did not entail my selling it: my withholding it only for those people who paid me for it.

She continues:

What I want to do is write openly on the internet where anyone can read what I write. Where what I write can be cited by anyone who wants to refer to it in any internet discussion.

The audience of my writing is not my patrons, and it is not just the people who pay me for it. It’s the whole world.

And that, quite explicitly, is what my patrons pay me to do.

I could not have put this better myself. This sort of win-win patronage is at the heart of what I do here on kottke.org with the membership program; it’s what Tim Carmody calls Unlocking the Commons:

The most economically powerful thing you can do is to buy something for your own enjoyment that also improves the world. This has always been the value proposition of journalism and art. It’s a nonexclusive good that’s best enjoyed nonexclusively.

Anyways. This is a prediction for 2019 and beyond: The most powerful and interesting media model will remain raising money from members who don’t just permit but insist that the product be given away for free. The value comes not just what they’re buying, but who they’re buying it from and who gets to enjoy it.

I modelled my membership program, in part, after that “little universe of people using Patreon”. Watching what’s going on in the world of paid newsletters and paywalled media, the nonexclusive future of media that Tim hoped for is struggling for air, but I remain thankful to have found a group of readers who understand and support that vision in this tiny corner of the web.


“Elon Musk’s Shadow Rule”

Great, long piece from Ronan Farrow for the New Yorker on Elon Musk’s considerable influence over the US government. This doesn’t seem good:

There is little precedent for a civilian’s becoming the arbiter of a war between nations in such a granular way, or for the degree of dependency that the U.S. now has on Musk in a variety of fields, from the future of energy and transportation to the exploration of space. SpaceX is currently the sole means by which nasa transports crew from U.S. soil into space, a situation that will persist for at least another year. The government’s plan to move the auto industry toward electric cars requires increasing access to charging stations along America’s highways. But this rests on the actions of another Musk enterprise, Tesla. The automaker has seeded so much of the country with its proprietary charging stations that the Biden Administration relaxed an early push for a universal charging standard disliked by Musk. His stations are eligible for billions of dollars in subsidies, so long as Tesla makes them compatible with the other charging standard.

In the past twenty years, against a backdrop of crumbling infrastructure and declining trust in institutions, Musk has sought out business opportunities in crucial areas where, after decades of privatization, the state has receded. The government is now reliant on him, but struggles to respond to his risk-taking, brinkmanship, and caprice. Current and former officials from NASA, the Department of Defense, the Department of Transportation, the Federal Aviation Administration, and the Occupational Safety and Health Administration told me that Musk’s influence had become inescapable in their work, and several of them said that they now treat him like a sort of unelected official. One Pentagon spokesman said that he was keeping Musk apprised of my inquiries about his role in Ukraine and would grant an interview with an official about the matter only with Musk’s permission. “We’ll talk to you if Elon wants us to,” he told me.


Secret Ingredients, Trade Secrets, and the “Onion in the Varnish”

In the Scope of Work newsletter, Anna and Kelly Pendergrast look at various trade secrets and secret ingredients — some that are still necessary, and others that are merely legendary.

When Chicago’s Vienna Sausage Company moved from its original premises which were “put together in a Rube Goldberg kind of arrangement” to a brand new state-of-the-art facility, the sausages didn’t taste as good. For a year and a half, the company tried to work out the problem to no avail. One day, workers were reminiscing about an ex-employee, Irving, who didn’t come to work at the new factory due to the long commute required. Irving’s job was to move the sausages from the filling room to the smokehouse, taking them on a half hour journey through a maze of rooms where other products were getting produced. After noting this absence, it clicked that Irving’s daily trip was the secret ingredient — on his journey the sausages were getting pre-cooked and infused with flavor. The company was eventually able to recreate the sausages’ original taste, building a brand new room onto the factory which emulated the properties of Irving’s trip.

(via robin sloan)


How Streaming Caused the Writers Strike

Vox talked to four television writers about how streaming and prestige TV have changed the financial picture for writers over the past 15 years, contributing to the writers strike that’s been going on since early May.

Companies like Netflix, Hulu, Apple TV+, and more have given consumers an unprecedented array of films and TV shows and opened the door to new voices that don’t have to adhere to mainstream network formats. On the other hand, streaming has also changed how television gets produced, the role writers play, and how they get paid. We interviewed four television writers and showrunners about how streaming has changed how they work, how their incomes have taken a hit, and why it has become harder than ever to build a career.


Seven Rules For Internet CEOs To Avoid Enshittification

In a piece from January, Cory Doctorow outlined the enshittification lifecycle of online platforms:

Here is how platforms die: First, they are good to their users; then they abuse their users to make things better for their business customers; finally, they abuse those business customers to claw back all the value for themselves. Then, they die.

This is enshittification: Surpluses are first directed to users; then, once they’re locked in, surpluses go to suppliers; then once they’re locked in, the surplus is handed to shareholders and the platform becomes a useless pile of shit. From mobile app stores to Steam, from Facebook to Twitter, this is the enshittification lifecycle.

Taking note of various platforms lighting themselves on fire recently, Mike Masnick offers a list of rules for the leadership of these platforms to follow to avoid turning into dumpster fires. Here’s rule #3:

Create more value than you capture. This one is not mine, but Tim O’Reilly’s, and it’s one that constantly sticks with me. As you’re developing a business model, the best way to make sure that you’re serving your users best, and not enshittifying everything, is to constantly make sure that you’re only capturing some of the value you’re creating, and are instead putting much more out into the world, especially for your community. Your investors will push you to capture more and more of that value, but again, when you start chasing that, you’re also spiraling down the enshittification curve.

IMO, some of what is going on with Twitter & Reddit is not enshittification per se, but more of a pushback against the power of their users. (I always think of Tron in instances like these. “I fight for the users!”) I think these CEOs know on some level that they’re making their product worse, but bringing their user bases to heel is worth the short-term headaches.


Why Pop Radio Stations All Sound the Same

On his YouTube channel this week, Phil Edwards explores the question of why all pop music radio stations in the US sound the same. The short answer is consolidation caused by deregulation but the longer answer is worth watching. And if you want more information, Edwards’ list of sources in the video description is pretty extensive.


It’s Just Business

Whenever I hear someone say “it’s just business” in order to magically justify some decision to ignore the humanity of individual people, I remember that it’s adapted from a line in The Godfather spoken by Michael Corleone at the precise moment when he decides to become a murderous sociopath. We should maybe stop running businesses like fictional mafia families.


Happy 10th Anniversary to Kurzgesagt

This year, Kurzgesagt celebrates 10 years of making videos on YouTube and to mark the occasion, they’ve produced this video about their history, how their business works (their shop accounts for a large chunk of their revenue), and the values that guide their work.

Kurzgesagt’s foundation was laid when Philipp, our founder, dropped out of high school as a teenager. Learning seemed daft and useless and he was not interested in anything. Until a very special teacher at a school for dropouts grabbed him by the neck. The way she taught was different. She talked about connections and the big picture. She told a story. For the first time ever, Philipp wanted to learn more without being forced. It was a key life experience.

Kurzgesagt tries to recreate this experience for you. “Nothing is boring if you tell a good story, and we try to tell these stories to spark excitement and make you want to go on and learn more. Because of the one teacher that could do this, Philipp got a high school degree, studied history and design and eventually started Kurzgesagt as a passion project, inspired by Crash Course World history.

Some of you might not be interested in something that seems pretty inside baseball, but I post a lot of Kurzgesagt’s videos here and I’ve always admired the way they go about their business — their commitment to quality, painstaking research, an ability to admit when they got it wrong, non-extractive revenue streams with a heavy emphasis on direct reader support — and it was great to hear them talk about it.


Ruthless: Monopoly’s Secret History

Now showing on American Experience on PBS: Ruthless: Monopoly’s Secret History.

For generations, Monopoly has been America’s favorite board game, a love letter to unbridled capitalism and — for better or worse — the impulses that make our free-market society tick. But behind the myth of the game’s creation is an untold tale of theft, obsession and corporate double-dealing. Contrary to the folksy legend spread by Parker Brothers, Monopoly’s secret history is a surprising saga that features a radical feminist, a community of Quakers in Atlantic City, America’s greatest game company, and an unemployed Depression-era engineer. And the real story behind the creation of the game might never have come to light if it weren’t for the determination of an economics professor and impassioned anti-monopolist.

You can watch the first ten minutes of the show on YouTube or see the whole thing on the PBS website.

See also The Antimonopolist Origins of Monopoly Differ from Hasbro’s Official Story. (via @Kitbuckley)


Ford Motor Company’s “Utopian Turtletop”

a booklet with a drawing of a car called 'Uptopian Turtletop'

a drawing of a car called 'The Intelligent Whale'

In 1955, the Ford Motor Company hired poet Marianne Moore to come up with some names for their revolutionary new car. Moore ended up submitting some amazing names, including “Silver Sword”, “Intelligent Whale”, “Angel Astro”, and “Utopian Turtletop”.

What Moore lacked in corporate nomenclature experience, she made up for in enthusiasm and imagination: she submitted over two dozen names for consideration, each one more delightful — and unlikely — than the last. In the end, the poet’s suggestions were rejected and the company’s chairman himself named the vehicle. Thus was born the notorious car known as the Edsel.

Ford realized perhaps too late that they shouldn’t have, in fact, sent a poet — but we’re sure glad they did.

Back here in the present day, Pentagram commissioned the legendary Seymour Chwast to turn Moore’s amazing collection of names into a booklet of illustrations that imagine what these cars might look like.


The Enshittification Lifecycle of Online Platforms

This piece by Cory Doctorow on TikTok’s enshittification (also available at Wired) contains some of the best and simplest descriptions of how online platforms like Amazon, Facebook, Uber, TikTok, Twitter, etc. evolve as they grow and then eventually die.

Here is how platforms die: First, they are good to their users; then they abuse their users to make things better for their business customers; finally, they abuse those business customers to claw back all the value for themselves. Then, they die.

This is enshittification: Surpluses are first directed to users; then, once they’re locked in, surpluses go to suppliers; then once they’re locked in, the surplus is handed to shareholders and the platform becomes a useless pile of shit. From mobile app stores to Steam, from Facebook to Twitter, this is the enshittification lifecycle.

The Amazon example he uses is really easy to follow. Early in the company’s history, the site used to be a great place to shop; their customers loved Amazon. But then Amazon’s sellers became their real customers and the user experience started to suffer. And now, much of the value generated by the users and customers goes to the shareholders (which, functionally speaking these days, means several dozen people who run hedge funds or large investment funds).

This strategy meant that it became progressively harder for shoppers to find things anywhere except Amazon, which meant that they only searched on Amazon, which meant that sellers had to sell on Amazon. That’s when Amazon started to harvest the surplus from its business customers and send it to Amazon’s shareholders. Today, Marketplace sellers are handing more than 45 percent of the sale price to Amazon in junk fees. The company’s $31 billion “advertising” program is really a payola scheme that pits sellers against each other, forcing them to bid on the chance to be at the top of your search.

Over at Techdirt, Mike Masnick riffed on Doctorow’s piece, arguing that enshittification, this playing of various parties against each other while siphoning off the value, is bad business because it focuses too much on short term gains.

Because maximizing revenue in the short term (i.e., in the 3 month window that Wall Street requires) often means sacrificing long term sustainability and long term profits. That’s because if you’re only looking at the next quarter (or, perhaps, the next two to four quarters if we’re being generous) then you’re going to be tempted to squeeze more of the value out of your customers, to “maximize revenue” or “maximize profits for shareholders.”

He uses early Amazon as an example of long-term thinking:

Once you go public, and you have that quarterly drumbeat from Wall Street where pretty much all that matters is revenue and profit growth. Indeed, it’s long forgotten now, but Jeff Bezos and Amazon actually were a rare company that kind of bucked that trend, and for a while at least, told Wall Street not to expect such things, as it was going to invest more and more deeply in serving its customers, and Wall Street punished Bezos for it. It’s long forgotten now, but Wall Street absolutely hated Amazon Prime, which locked in customer loyalty, but which they thought was a huge waste of money. The same was true of Amazon Web Services, which has become a huge revenue driver for the company.

They created a tremendous amount of value for their shareholders by playing the long game, which for whatever reason they aren’t willing to do anymore.


Bike Lanes Are Good for Business, But Local Shops Still Hate Them

This is something I’ve heard over and over again, in many cities around the world: putting in bike lanes in place of car parking and/or car lanes results in an increase in humans patronizing local businesses and increased sales.

Five years ago, the city of Queens, New York, announced that it would be putting bike lanes onto a stretch of Skillman Ave-and removing 116 parking spots. Cyclists loved the plan, but local business owners went ballistic. Taking out those parking spots, as they argued at protests and in letters to the city council, would devastate stores and restaurants along Skillman. “Parking here is already a nightmare,” one fumed at a protest rally.

But the bike lanes were a done deal, and soon they were in place. Early this year, Jesse Coburn — an investigative writer with Streetsblog New York — wondered whether those predictions of economic collapse came true. So he asked the city’s Department of Finance to give him a few years’ worth of sales figures for that stretch of Skillman Ave. How had the businesses on that street fared?

Quite well, it turns out. In the year after the bike lanes arrived, businesses on Skillman saw sales rise by 12 percent, compared to 3 percent for Queens in general. What’s more, that section of road saw new businesses open, while Queens overall had a net loss.

The thing is, the actual merchants along Skillman? They didn’t believe it. When Coburn spoke to them and described what he’d found, only a few store owners admitted the lanes had helped. Many still insisted the lanes were killing their part of the city. And emotions ran hot: Someone scattered tacks on the bike lane.


How to Revive Barnes & Noble: Get a CEO Who Loves Books

Ted Gioia is one of the best music writers and critics around but has proved an astute cultural (and even business!) critic as well. In a piece for his excellent The Honest Broker newsletter, Gioia writes about the recent turnaround of Barnes & Noble, which he attributes to the company’s new CEO and his love of books. James Daunt, who took the helm of B&N in late 2019, previously saved UK bookshop chain Waterstones, in part by refusing to take promotional money from publishers:

Daunt refused to play this game. He wanted to put the best books in the window. He wanted to display the most exciting books by the front door. Even more amazing, he let the people working in the stores make these decisions.

This is James Daunt’s super power: He loves books.

“Staff are now in control of their own shops,” he explained. “Hopefully they’re enjoying their work more. They’re creating something very different in each store.”

This crazy strategy proved so successful at Waterstones, that returns fell almost to zero — 97% of the books placed on the shelves were purchased by customers. That’s an amazing figure in the book business.

On the basis of this success, Daunt was put in charge of Barnes & Noble in August 2019. But could he really bring that dinosaur, on the brink of extinction, back to life?

The boldface above is mine and it matches up with the bold text from Gioia’s conclusion:

Of course, there’s a lesson here. And it’s not just for books. You could also apply it to music, newspapers, films, and a host of other media.

But I almost hate to say it, because the lesson is so simple.

If you want to sell music, you must love those songs. If you want to succeed in journalism, you must love those newspapers. If you want to succeed in movies, you must love the cinema.

One of the reasons I decided to take a sabbatical last year is that I was not loving what I was doing here and it was starting to show. Oh, I’ve been doing this long enough that I know how to paper over the cracks. Also, I’m stubborn and will keep at something even if I’m not enjoying it, but the wheels were starting to come off of the wagon. Now that I’m back, I’m trying to figure out which bits of this weird job I’m really into and redirect my efforts there. Gioia’s piece is a good reminder to follow the love and the rest will follow.


The Broken Tech/Content Culture Cycle

Cartoon of a group of people sitting around a campfire. The caption reads 'Yes, the planet got destroyed. But for a beautiful moment in time we created a lot of value for shareholders.'

Anil Dash writes about the 24 stages of the growth-fueled “broken tech/content culture cycle” that VC-driven Silicon Valley (among other places) has pioneered over the past 15 years. Here’s how you begin:

1. Build a platform which relies on cultural creation as its core value, but which only sees itself as a technology platform. Stick to this insistence on being solely a “neutral” tech company in every aspect of decision-making, policy, hiring and operations, except for your public advertising, where the message is entirely about creativity and expression.

2. Hire a team that’s rewarded solely on growth goals and winnow out anyone who values creators or culture above expansion and user acquisition. Enforce a monoculture.

And then:

8. Build an algorithm to “surface great content” for your audience. Train it on the behaviors of your existing creators, so you create a rich-get-richer dynamic, effectively cementing the culture of your platform and making it impossible for new creators from underrepresented communities to get a foothold. Make it so the only process for revisiting your algorithm is bad-faith arguments from right-wing goons trying to game the refs because their actual content isn’t good enough to get audience on its own. After that, treat the algorithm as some magical sacrosanct god with unknowable whims that everyone is subject to, rather than as a series of intentional business decisions captured in software form.

Eventually:

18. Double down on funding the worst voices on your platform. Call it “free speech”, and make sure that nobody internally points out that truly defending free speech would have entailed protecting those early marginalized creators who made your platform credible in the first place.

19. Definitely misuse “free speech” as a rhetorical bludgeon against people who are pointing out that you are both amplifying and sponsoring content, not merely making it available. Resolutely refuse to be intellectually honest about the difference between merely providing a platform to all, vs. making editorial decisions to promote and subsidize content that you have control over.

Spotify, Substack, Google, Twitter, Amazon, Apple, Facebook, Reddit…this predictable script has played out at all of these companies in some form or another over the past decade.


Why Starting a Cannabis Business Is So Hard

This video provides a good overview of the difficulty involved in starting a business that grows, sells, or distributes cannabis products, which can include money, federal illegality, state regulations, and structural racism.

Jeannette: So you really got to get your business funded from your personal wealth or from your network wealth.

Nancy: Those situations begin to favor people who’ve traditionally had good access to capital.

Jeremy: And oftentimes that correlate with being white.

Adriana: It is very white male-dominant. And there’s no reason that that is what it should be.

Narrator: Only 2% of cannabis entrepreneurs are Black. Yet Black Americans were most affected by marijuana’s illegal status in the past.

Jeremy: There is kind of a clear throughline from the war on drugs. According to the ACLU, Black people are four times as likely than whites to get arrested for cannabis use, despite using at very similar rates across age groups, across different states.

See also A Post-Legalization Cannabis Reading List.


The Problem of Corporate Solutions to Public Needs

For Vox, Emily Stewart writes about the shortcomings of the, er, system we’ve developed here in America of outsourcing public needs to private industry: Corporations aren’t going to save America.

Across various segments of American life, the private sector has begun to take on tasks big and small that one might think should be tackled by the public sector. Domino’s filled in potholes. Dawn’s dish soap saved ducks. American Express pitched in on historic preservation. Walmart started selling low-priced insulin. A slew of companies help workers pay for school. Much of America’s health care system is still handled through private insurers and your job. As people lose faith in government to act on sweeping issues such as climate change and guns, they’re increasingly looking to corporate America and asking whether there’s something they can do about it. If Congress won’t tackle gun violence, maybe Dick’s Sporting Goods can try.

It’s not a bad thing for brands and companies to try to make the world better. Starting a business often involves identifying a problem to solve, and it’s much better for companies to help than to do harm. Corporate social responsibility is fine. There are, however, limits.

“Of course we want businesses to be responsible,” said Suzanne Kahn, managing director of research and policy at the Roosevelt Institute. But she emphasized that this does not constitute a plan for how to organize society. “Private companies don’t, can’t, or won’t plan with the same values that we demand and expect the government to.”

(via the morning news)


Labor Shortage or Terrible Jobs?

Anne Helen Peterson noticed a bunch of reports about fast food & retail businesses around the US having trouble finding employees, which difficulty the business owners are blaming on lazy American workers whose unemployment benefits have been extended/expanded during the pandemic. But what if, she writes, those benefits are actually providing a safety net to American workers so that they do not need to take terrible jobs for low wages at terrible companies under terrible management? The ‘Capitalism is Broken’ Economy:

Stick with me here, but what if people weren’t lazy — and instead, for the first time in a long time, were able to say no to exploitative working conditions and poverty-level wages? And what if business owners are scandalized, dismayed, frustrated, or bewildered by this scenario because their pre-pandemic business models were predicated on a steady stream of non-unionized labor with no other options? It’s not the labor force that’s breaking. It’s the economic model.

Unemployment benefits have offered a steady paycheck while you figure out your options. Put differently: a version of the safety net that’s been missing from most American employment, and, by extension, the ability to say no. No, I don’t have to work for a restaurant that only gives me my hours three days ahead of time, thus making it nearly impossible to find reliable childcare. No, I don’t have to work clopen shifts. No, I don’t have to expect a job without sick leave or paid time off. No, I don’t have to deal with asshole customers or managers who degrade me without consequence. No, I don’t have to work in a job with significant, accumulating health risks.

Her question near the end of the piece is worth considering: “If a business can’t pay a living wage, should it be a business?”


What Happened with the Whole European Super League Thing?

Erling Haaland

Last week, twelve of the biggest, richest, and best European soccer teams announced they were going to form a new midweek competition called The European Super League. The reaction was swift: fans revolted, soccer governing bodies threatened to kick these teams out of other competitions (with immediate effect, including the Champions League which is presently in the semifinal stage), large-scale condemnation from the press, teams started to back out, and 48 hours after the announcement, the league was all but dead.

So what the hell happened? There have been lots of takes and I obviously haven’t read them all, but here are two I found especially valuable in wrapping my head about the Super League failure and, more importantly, what it can tell us about how power, wealth, community, and attention interact 21 years into this rapidly aging century. First up, Alex Shephard writing for The New Republic: The Existential Crisis That Led to the European Super League Fiasco.

What all of these cultural dinosaurs are confronting, though rarely head on, is the fact that there is no monoculture anymore. They may occupy tremendous cultural space — and a team like Real Madrid is rivaled only by other European soccer teams in the sports world — but it is not and never will be what it was before. The mass appeal these teams enjoyed until fairly recently is not coming back, and it’s not just the fault of Fortnite or FIFA. There are simply too many competitors — and, after all, you can watch the best bits on social media anyways.

And then Ryan O’Hanlon interviewed economist Mark Blyth for his newsletter: How the Spectacular, Comical Failure of the Super League Explains the World.

O’Hanlon: In addition to the various corporate pressures, it really does seem like the fan reaction made a material difference. Do you find that heartening at all?

Blyth: I think it’s heartening in the following sense. It’s emblematic of broader shifts that are going on right now. Basically we’re all struggling to find a capitalism 4.0, and we’re all fed up with capitalism 3.0, and this is a huge example of the limits of capitalism 3.0. This “I own it. It’s my right. I’ll do what I want with it”. Except, no you won’t because there’s such a thing as a public conception of ownership of these assets, even if you formally own them. There are limits to how far you can push this market logic on the social institutions without provoking a reaction. Karl Polanyi, the Hungarian sociologist and historian from the 1940s, wrote that the big fuck-ups of the 19th century and 20th century were attempts to shove markets down people’s throats to the point where they revolted.

In a sense, what you’re seeing here is a classic Polanyian reaction. So I think it’s heartening in that it shows there are limits to how much you can commodify these social goods even if they are nominally private assets. It’s heartening in another way in that they’re gonna have to have a reckoning with these balance sheets. If you’re not Sheikh Mansour and you’re not Roman Abramovich, how are you going to fund Paul Pogba’s ridiculous salary? And it’s just not clear that you are going to, so there may need to be a restructuring, which would be great because the model is there. Look at how the Germans do this. They invest heavily in talent. They invest heavily in youth, they buy, but they buy judiciously. They don’t pay ludicrous salaries. And the funds own 51 percent of the companies. It’s a perfect model, right? Because they’ve got cooperative ownership between the people who are the kind of social owners. And then you’ve got the titular owners who do the investment, and there’s a balance of those interests.

Let me know if there are other Super League pieces out there that I should read — I’ll add them to this post. (Photo above of Erling Haaland because he is a goofy beast and one of the 12 Super League teams is going to pay an absolutely obscene amount of money for him in a few months.)


Is the McDonald’s Ice Cream Machine Broken?

Map of McDonald's locations and their ice cream machine status

Software developer Rashiq Zahid figured out McDonald’s ordering API and built a program that attempts to order ice cream from every single McDonald’s in the US to check if their ice cream machine is working. If your McFlurry or McSundae cannot be added to the shopping cart, the program assumes the ice cream machine is broken. The program runs several times a day and the results are displayed on a map. From The Verge:

Initially, he created an API that attempted to add a McSundae from every McDonald’s location to its cart once every minute. The app figured out what he was up to and blocked him — “It was like, you can’t do this, you look like a bot,” he recalled.

After a night of trial and error, Zahid figured out the magic time frame. Now, his bot attempts to add a McSundae every 30 minutes. If the bot successfully adds the item, it lets McBroken know that the location’s machine is working. If it can’t, the location gets a red dot.

From the current map, it looks like almost 10% of McDonald’s ice cream machines in the US are not working. In NYC, nearly a quarter of McDonald’s restaurants don’t have a working ice cream machine. I’m wondering though: is the assumption that the machine is broken a good one? What if ice cream ingredients are out of stock or some franchises don’t offer ice cream products at all hours? When The Verge wrote their story last night, they reported only 7.5% of national machines and 15.2% of NYC machines were broken. Did 10% of McDonald’s ice cream machines in NYC break in the last 12 hours? Or are they just not selling McSundaes at 10am?

Update: A company started selling a device that helped franchise owners keep the notoriously finicky ice cream machines running — but then McDonald’s all but shut them down.

Update: In a 30-minute video, Johnny Harris investigated why the McDonald’s ice cream machines are broken so often.

At the heart of this ice cream problem is that McDonald’s customers are not actually the people who buy their food but the franchisees that run the restaurants. That and McDonald’s is actually a real estate business, not a food service business.


Inside the Epicenter of the Pandemic Baking Boom at King Arthur Flour

King Arthur Flour

Marker’s David Freedman has a great look at how Vermont’s own King Arthur Flour has dealt with a massive increase in demand for their best-in-class flour and other challenges during the pandemic. The piece is a textbook example of what Tim Carmody calls the systemic sublime.

The company knew something weird was going on when they noticed a 600% sales jump almost overnight and started seeing different kinds of questions coming into their consumer call center.

So tricky and specific are some of the bread-baking questions that even though Ely is one of the bread specialists working the hotline, she sometimes puts callers on hold and yells over the cubicle walls to colleagues for second opinions.

But in early March, Ely noticed a change in the questions. Partly it was an increase in the sheer number of calls, a jump that seemed more sudden and pronounced than the normal mild pre-Easter build-up. But even stranger was how many of the callers seemed, well, clueless. How do you tell if bread is done? Do I really need yeast? And strangest of all: What can I use instead of flour?

In a matter of weeks, the employee-owned company transformed several aspects of their business and tripled their flour output in order to keep up with the demand.

As a first step to ramping up the flow of flour to consumers, King Arthur added one to two shifts at all its facilities and contracted with an additional fulfillment center. It shifted most of its long-distance product transportation from rail to trucks, which are more expensive per bag but add speed and flexibility. It stopped international sales to divert all incoming inventory to U.S. customers. To make shipping operations more efficient and get orders out the door faster, the company switched to all “ship-complete” shipping — that is, if one item in a multi-item order was temporarily out of stock, the entire order was held until the item was back in stock.

The company also managed to find a new partner that could mill and bag more flour. The wrinkle was that the partner was only set up to fill three-pound plastic bags, not King Arthur’s five- and 10-pound paper bags. So King Arthur quickly whipped up a new three-pound plastic bag and threw it up on the website as a new product. That move alone would add up to a half-million new units a month to the company’s shipments.

The company has also done right by their employee-owners:

Altogether, three-quarters of the company’s employees were sent home. In many cases, the work went with them, as was the case with the Baker’s Hotline, and with most managers. Many of those whose jobs couldn’t be performed at home were trained to help out with tasks that could. So far, not a single employee has been furloughed; everyone is being paid — including 12 employees who stay busy sewing masks for other employees.

They’ve helped out companies they supply as well:

While home baking was taking off, bakeries were being closed down, sharply reducing demand for the big bags of flour. (To help keep some of them afloat, the company has spent $30,000 so far during the pandemic paying some of its bakery customers around the country — including Empire Baking — to bake bread and donate it to local good causes. Its own bakers have been doing the same for essential workers and those in need in Norwich.)

And I love the photos that accompany the article by Stephanie Gonot — that must have been a fun & messy photoshoot to do at home. (via @robinsloan)


A Pandemic Strikes Business Town

I featured Business Town, an ultra-capitalist spoof of Richard Scarry’s Busy Busy Town, on this site a few years ago. Their last few entries have focused on the pandemic and they are devastatingly spot on.

Business Town Pandemic

Business Town Pandemic

(via waxy)


Photos of an Abandoned & Decaying Ohio Mall, Once the World’s Largest

Randall Mall

Randall Mall

Randall Mall

When it opened in 1977, Randall Park Mall in Ohio was (briefly) the largest shopping mall in the world. But the place was never a huge success and was finally closed in 2009 in the wake of the financial crisis. For six years it lay abandoned and during that time, photographer Michael Christopher captured the decaying building inside and out for his book, Abandoned America.

Whichard Real Estate, who purchased the mall in 2006 for $6 million, was $200,000 behind on property taxes in 2008 and had multiple mortgages on the mall. The next February, Sears announced it was closing its Randall Park location, and with that the mall’s last anchor was gone. The few struggling stores inside the mall, many of which were owned by small business people doing their best to keep the mall afloat, were vacated a month later in March of 2009. The power was shut off in May, and save for the dusty sunbeams streaking through the skylights on sunny afternoons, the mall went dark.

The mall was finally torn down in 2014 and the site is fittingly now home to an Amazon fulfillment center.


The Final Chart Topper of the Decade Perfectly Summarizes the Current State of Media

The number one song on the UK singles chart for the last week of 2019 was Ellie Goulding’s River, despite it not being available on Spotify, Apple, Google, or anywhere but Amazon (with one important exception). How the heck did that happen? Chart Watch UK has the story.

River was simply a prominent part of just about every “Christmas songs” playlist curated by Amazon themselves, a default choice for everyone muttering “Alexa, play Christmas songs” as they basted the turkey and cursed the sprouts. People have been spoon-fed a contemporary hit single like no other before it, and the result of that has been to propel it almost by accident to the top of the charts.

This is a fitting choice for the final chart topper in the 2010s because it encapsulates a number of trends in media that have played out over the past decade. To wit:

  1. The song is a remake. Remakes and sequels dominate our viewing and listening.
  2. It is exclusive to a single platform. The entire media world seems to be headed in this direction.
  3. The platform is operated by one of the handful of tech behemoths that took control of more and more of the media landscape as the decade wore on.
  4. Amazon. Arguably the company of the decade. Led by the world’s richest man, a symbol of the decade’s growth in inequality.
  5. Ok, the song is exclusive to Amazon but is also on YouTube. YT has simply grown so popular for young people listening to music that media companies can’t ignore it, even when they’re direct Google competitors (and who isn’t these days).
  6. Voice assistant devices were instrumental in making the song popular. Since Siri was first released in 2011, voice assistants have become increasingly embedded in our homes and pockets.
  7. Amazon’s editorial team added the exclusive song to several of their Christmas playlists. Amazon has access to the song, compiles the playlists, and sells the devices to play them. This sort of BigCo “synergy” became standard operating procedure in the 2010s.
  8. There was an algorithm involved (Billboard’s). They increasingly determine what we read, watch, and listen to.
  9. And that algorithm was gamed. See also the role of Facebook’s algorithms in the 2016 US Presidential election (and many many other examples of “impartial” algos being manipulated).

It is tough to imagine a more perfect example of how media functions (or doesn’t) today. (via @tedgioia)


Bikes Cosplay As Flatscreen TVs to Limit Shipping Damage

I love this. Bike retailer Vanmoof noticed that a lot of the bikes they shipped to customers in the US arrived damaged. Figuring that package handlers would be more gentle if they thought they were moving fragile electronics, they started printing an illustration of a flatscreen TV on their packages.

TV Bike Box

That small tweak had an outsized impact. Overnight our shipping damages dropped by 70-80%. We sell 80% of our bicycles online, which means we still print TVs on our boxes. More than 60,000 of them have now been shipped directly to our riders worldwide.

Super clever. (via why is this interesting?)


What to Expect When Expecting the Displeasure of the Chinese Government

The partnership between China and Western governments & corporations has hit a rough patch recently, namely the Hong Kong protests and how the NBA, Apple, and gaming company Blizzard have handled various responses to them on their platforms. I don’t have a lot to add on the matter, but I have read some interesting takes in the past few days that you might also want to take a look at.

Ben Thompson, The Chinese Cultural Clash:

I am not particularly excited to write this article. My instinct is towards free trade, my affinity for Asia generally and Greater China specifically, my welfare enhanced by staying off China’s radar. And yet, for all that the idea of being a global citizen is an alluring concept and largely my lived experience, I find in situations like this that I am undoubtedly a child of the West. I do believe in the individual, in free speech, and in democracy, no matter how poorly practiced in the United States or elsewhere. And, in situations like this weekend, when values meet money, I worry just how many companies are capable of choosing the former?

John Gruber riffing on Thompson’s piece:

The gist of it is that 25 years ago, when the West opened trade relations with China, we expected our foundational values like freedom of speech, personal liberty, and democracy to spread to China.

Instead, the opposite is happening. China maintains strict control over what its people see on the Internet — the Great Firewall works. They ban our social networks where free speech reigns, but we accept and use their social networks, like TikTok, where content contrary to the Chinese Community Party line is suppressed.

Farhad Manjoo, Dealing With China Isn’t Worth the Moral Cost:

The People’s Republic of China is the largest, most powerful and arguably most brutal totalitarian state in the world. It denies basic human rights to all of its nearly 1.4 billion citizens. There is no freedom of speech, thought, assembly, religion, movement or any semblance of political liberty in China. Under Xi Jinping, “president for life,” the Communist Party of China has built the most technologically sophisticated repression machine the world has ever seen. In Xinjiang, in Western China, the government is using technology to mount a cultural genocide against the Muslim Uighur minority that is even more total than the one it carried out in Tibet. Human rights experts say that more than a million people are being held in detention camps in Xinjiang, two million more are in forced “re-education,” and everyone else is invasively surveilled via ubiquitous cameras, artificial intelligence and other high-tech means.

None of this is a secret.

Om Malik, Our Collective Chinese Conundrum:

We in the West should very well know what and who we are dealing with — China might be decked out in Louis Vuitton, but underneath, it is still a single-party, quasi-communist nation. Knowing the Western desperation for growth and the insatiable needs of the stock markets, China also knows it can yank anyone’s chain.

Huawei isn’t a recent problem. It was a problem a decade ago. The dynamic in this spat between the NBA and China isn’t new — China gets what China wants, not the other way around. Why are we being outraged now? The West signed up for this.

Malik quotes from Ian Bremmer’s newsletter:

in the west, the past decades have been marked by a view that china would eventually adapt to western norms, institutions, political and economic systems. but from an asian perspective, the opposite appears more likely. after all, of the last 2,000 years, china and india have led the global economy for the first 1800; europe and the united states only flipped the script for the last 200. now that’s about to change. and when it does, it’s going to happen quickly, powered by 1.4 billion increasingly urban, educated and technologically-connected chinese citizens. take the long view (and an asian perspective) and it’s a better bet that the west will adapt to the realities of chinese economic power, not the other way around.