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piracy

Q&A From The BBH Labs Post on Honesty

by Walter Naeslund on September 4, 2009

Yesterday, BBH Labs wrote an interesting post commenting on some of my thoughts on internet transparency and gossip. The post itself, as well as the comments, are well worth a read. Since it’s one of my favorite topics, I naturally wanted in on the discussion myself, but as I started writing a comment on their blog, I realized it would probably be a bit long for a comment, and instead decided to make it a follow up post here.

Q: Is there any evidence of better behavior and less cheating?

A: I think we can see plenty of evidence to support the fact that the breakdown of brand privacy forces brands to behave better. User comments and ratings are in fact the backbone of much of e-commerce, and are really a form of digital gossip. Companies behaving badly are exposed all over the place. Companies behaving well are to some extent rewarded, even though gossip gravitates towards the negative for natural reasons (it’s often more expensive in nature to make the wrong decision than valuable to make the right one). On the individual level, Googling is a standard part of hiring these days, and cheating husbands and wives are exposed all over the internet every day. Just to mention a couple of examples.

Before language evolved, cheaters were easy to spot in small tribes, but not in larger societies. When language evolved, efficiency of gossip increased and we could now crack down on cheaters and reward contributers in bigger groups. Now, with the social web, gossip is made even more efficient, thus making it possible to spot cheaters and reward contributers in very large groups, spread out all over the globe. It’s the same basic psychology and the same economics behind it, but more efficient means of communication enable us to increase scale. The economics of gossip are very much the same as internet economics, or information economics in general: Providing gossip is virtually free, while receiving it can be very valuable. This creates growth. As a fun excercise, you can try applying these economics to the “piracy”-debate.

“Q”: On one hand it all sounds a little Utopian (and some might argue, less fun). On the other, it does sound rather attractive.

A: It may sound utopian, but it’s really not. I’m not talking about perfect transparency with zero transaction and coordination costs (which would be utopian and impossible). Instead, I’m talking about an increase in efficiency, which leads to a more precise control system that is harder to cheat. Harder, but not impossible.

And I really don’t think that it’s a question of attractive or less fun, but rather of us increasing our ability to coordinate as a species. An increase in ability to coordinate enables us to coordinate more quickly, thus becoming more adaptive to changes in our environment. Those who adapt the quickest to change will be the most fit for their environment, and the fittest will survive. If we let this continue without destroying the efficiency with legislation, this is where we will gravitate towards by Darwinistic law. It’s somewhat like asking if life became less fun or more attractive when language was introduced. I can’t answer that, and I don’t know if it’s a relevant question. I do think that it made us more civilized, and I think that the web will have the same effect.

Q: For other societal constructs, such as a nation/regime, hard to say. The world had pretty honest information on the Iran situation, but that didn’t make the regime behave more honestly. On the other hand if
victims in genocidal warfare in Africa had means of disseminating real time information would the world be more inclined to intervene and act more honestly by upholding basic human rights?

A: There are a few different questions involved here, and I won’t go into the specific situation for each country, but on the structural level you can say this: There is a huge shift in power going on all over the world. The monopolies of information distribution previously (and sometimes currently) held by institutions by economic neccesity, are falling apart. And this makes those depending on such monopolies less powerful. For these institutions, the social web poses a threat, and the only way to stop the threat is to stop entire services, and indeed this is what we are seeing in some of these regimes.

Unfortunately for them, this is also very costly in terms of not tapping into the growth engine of gossip and digital gossip that we spoke about earlier, and will leave them with the choice of handing over power by unblocking internet services or loosing out in the competition with free countries. Ultimately, I think and hope that fighting internet freedom is a loosing battle.

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What the World Will Look Like in 25 Years

by Walter Naeslund on September 1, 2009

When I went to ad-school I felt that the school was in many respects molding people into replicas of what ad-people were supposed to be. Now I feel that this is perhaps about to change. The other day I got interview questions from Hyper Island regarding digital trends, and today I got another question from Berghs School of Communication regarding “what the world will look like in 25 years“. And despite the fact that a question like that is hopeless in terms of giving the correct answer, I can try to provide some humble thoughts on the subject.

First, the world will be what we make it
. That may sound like an empty phrase, but it’s really quite the opposite. It is a way of living, of working, of acting, and of thinking. If you live by this belief, make decisions and take action, this will not be an empty phrase, but the best estimate of the future that we can produce.

But aside from this answer, I will try to give you an answer to your question that is a little more pragmatic. Looking at what communications will look like in 25 years we can try on two scenarios.

In scenario 1 we make the internet asymmetrical. We let legislation rule what can and cannot be sent across the internet. Material which is not permitted (like “pirated” information for example) will move underground and will be sent using stealth technology. Much of the information flow of the internet will be encrypted jibberish, undecipherable for any sense-making technology wanting to make use of it and invisible to human senses that could otherwise have been used for collaborative sense-making and coordinated collective intelligence.

The goals of those wanting to control certain information based on their nostalgia of the times when they had a lucrative monopoly on distribution will not be reached because of ever improving speed and convenience of stealth technology. Instead, the huge resources that will be put into creating these technologies (love of music for instance is a powerful incentive) will be of great benefit to those who have truly evil intentions but smaller resources, notably terrorists and criminals. Since the only way of stopping “piracy” will be to do so at the infrastructure level (service providers can be real and effective gatekeepers!) this is where we’ll eventually end up, banning encrypted traffic altogether. And presto! The internet as we know it is destroyed.

Also in this asymmetrical scenario, we will start charging for the use of bandwidth. Me, being a strong believer in free markets and competition, opposing this kind of asymmetrical access to the internet based on resources may sound incongruent, but it really isn’t. Much in the same way roads and  equality to the law are the basis for efficient competition (imagine the transaction costs of paying different prices for different levels of use of different roads), I think that access to the internet should be considered public infrastructure that will benefit competition, production, innovation, and market efficiency. But in the asymmetrical scenario, this will not be true anymore, and instead old business models and old distribution monopolies can be recreated by content companies using their funds to squat certain infrastructure lines and only provide access to their content through these. This may perhaps sound fair, but what will happen is that the abundance paradigm of the internet, the free flow of information, the “to each according to his ability” (the reverse of the famously Marxist slogan), and the rise of man through collective intelligence will stop.

I’m an optimist. I don’t think that this will happen.

In scenario 2 we retain the symmetry of the internet. We treat it like infrastructure in place to make markets and information flow efficient. Like a great system of streets and water pipes. In this scenario innovation will flourish because we can all do what we have always done, build on each others innovations, but we can do it with unprecedented efficiency. We can try and fail to a very low cost, we can learn from the mistakes of others, which boosts human efficiency enormously. This increase in efficiency, just like earlier technology leaps such as industrial farming, will create vast amounts of cognitive surplus that we can use for further innovation and production. Note that even resources that seem to be wasted on chatting with friends and Twittering create value in the form of information coordination and add to the collective intelligence. We can learn how people talk, we can cluster information, we can find new synergies and draw new conclusions.

Gossip will become hugely more efficient in this transparent world of efficient communication. This will lead to vengeance and gratitude being distributed with much more precision in answer to bad or good behavior and will make us all behave better and cheat less.

Digitally replicable products will not be products, they will be marketing for products where there is still tension between supply and demand. Musicians will try to get their music redistributed as quickly and widely as possible in order to fill venues and cut deals with brands, authors will do the same with their audiobooks to get speaking opportunities and sell hardcovers, filmmakers will use their films as vehicles for brand building and profit off of their brand, while also providing vehicles for other brands. Ludicrous legislation regarding this will be laughed at in 25 years. So will the crude methods of product placement of our age. The cinema experience cannot be pirated and we will see huge product development in terms of widening this experience. Their temporary monopoly on the film itself has made them lazy in this respect.

There will not be a difference between our digital identity and our physical one. All interaction with us will be permission based, and we will grant permission to those that we like and receive value from. Interuption marketing will be long since dead. The notion of publicly reachable phone numbers and email adresses will be laughed at as cute relics of the past. Our identity will be our identity and we will call people, not numbers, by whatever means is most efficient at the time, voice, video, text, images. By default our precense in the digital and analogue world will be publicly available. The benefits of this will outweigh the drawbacks. At times we will switch this off, just like we close the door when we want to sleep.

The semantic web will be obvious, and we’ll look back at how the internet was and smile at how we had so many copies of everything and how inefficient everything was. Of course each object will only be available in one absolute, so that any update will only have to be done once. Of course each of these will contain data representations fit for each semantic understanding of that particular data. We will be able to search, deploy scripts to ask questions and make calculations, and switch between real time representations and the historic dimension. This will all be very intuitive.

Since you are asking me to describe what the world will look like in 25 years, it is a bit ambitious to think that one blog post will answer it all, but these are some ideas of how things will be. If that’s what we decide to make them into. Because still, I think that my first answer is the best one – the world will be what we make it.

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I‘ve written quite a bit about the Pirate Bay trials and how the music industry is undermining itself and its own business. As of tomorrow we have a new law in Sweden, the IPRED-law, allowing copyright holders to go after downloading youngsters. Any such attempt is of course entirely in vain. I’ve written about it here, and you can see this concept being popularized in recent articles here, here, here, here, or any of these. And these examples are only from 1 Swedish, very large newspaper.

Anyway – just in time for this new law, Viasat presents a study by Sifo showing that most people are sceptical to this new law. Not only that, Viasat, who are themselves “victims of piracy” state that they are NOT going to utilize this law AT ALL.

Now, this law is suddenly useful, though perhaps not in the way intended by the record labels. A brand like Viasat opposing the law may give them a nice position, branding them as future- and customer oriented.

Smart move.

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The Labels Are Playing a Dangerous Game With Spotify

by Walter Naeslund on January 29, 2009

Yesterday Spotify announced that they are removing songs from their database, and imposing country restrictions on others. Again, we see the record labels showing off their power. But it’s really a dangerous game to play.

As I’ve said before, both in lectures and on this blog, the only way to properly fight piracy is to provide a BETTER service than the illegal one. And this is exactly what Spotify has been so successful in achieving. With Spotify you don’t have to host huge amounts of data yourself, and you have a shared library with your friends so that you only have to share links.

But there are potential weaknesses in Spotify. One important weakness is if the database of music is too limited compared to pirated alternatives. Then piracy will start gaining momentum again.

Thus, seeing the labels forcing Spotify into actions like the ones of yesterday is alarming. Are they aware of the long term risks of taking action in this direction, or are they blinded by short term greed?

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Join The Conspiracy

by Walter Naeslund on April 29, 2008

When we aired the first set of Join The Conspiracy WeSC commercials that we shot in Stockholm, we were harshly criticized by the advertising community. How could we make something that didn’t make sense?!?! People were angry. People were mocking us. But the films turned out to be immensely successful on MTV and delivered way beyond our expectations. The secret sauce strategy worked just as planned. Ask me about it in a bar sometime, and I’ll tell you why.

This is the second set of films we made. Shot in LA with Jason Lee, Chris Pastras and several others. Love or hate? This time you decide:




Agency: Walter Naeslund
Production Company: Social Club
Director: Mattias Montero

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Saturday and The Mirror Conspiracy

by Walter Naeslund on February 9, 2008

Good morning!

Let’s take it from the top.
This is outfit of the day!
(Hat from Marc Jacobs, scarf from a Manhattan street salesman, leather jacket from Whyred, hoodie from American Apparel, jeans from WeSC).

Dressed to kill. Now off for breakfast with “queen of words” miss K. (If this girl goes into journalism it will be an utter loss for the ad-business). We discussed kitchen design and the Wallpaper picks for design of the year.

There is something about Svart Kaffe on Saturdays. Last time I was there I ran into Sweden’s very own film genius Mattias Montero. And today I ran into him again. Same time, same place, and none of us had been there in between. I guess we’re on the same clock. With him he had his beautiful Annika, who is also a very talented photographer. Always fun to meet them both. Hi!

Next stop was meeting up with my pilot Karl and my architecture IT-specialist Sam. Both are good friends since forever.

After having some coffee and delivering the latest gossip, I decided to buy a huge mirror that Karl helped me carry home. We both have arms like Popeye now. That thing was HEAVY!


This is how it turned out:

…and you can now get cool, radical, awesome outfit of the day pics. Yeah!

Tonight, super awesome party with Sophia Bendz from Spotify and Jonas Kleerup. Live acts by Space Age Baby Jane, Pennebaker-Björn and Kleerup. Dance floor by 24:hours Soundsystem, Luciano Leiva and Jonas Kleerup,

There is also a big party at Landet. Not sure if I’ll have time for both…

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Information Wants To Be Free. So Does Music.

by Walter Naeslund on February 7, 2008

Nina has been writing a bit about the piracy-debate on her blog. And the analysis is dead on. It has never really been about protecting artists, but protecting distributors. Music is not endangered, traditional distribution systems are.

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