Vampire Squids?

 

likenolike

I would say this essay by Franklin Foer is a bit alarmist, though his book is worth reading and taking to heart. We are gradually becoming aware of the value of our personal data and I expect consumers will soon figure out how to demand a fair share of that value, else they will withdraw.

Technology is most often disrupted by newer technology that better serves the needs of users. For Web 2.0 business models, our free data is their lifeblood and soon we may be able to cut them off. Many hope that’s where Web 3.0 is going.

tuka is a technology model that seeks to do exactly that for creative content providers, their audiences, and promoter/fans.

How Silicon Valley is erasing your individuality

Washington Post, September 8, 2017

 

Franklin Foer is author of “World Without Mind: The Existential Threat of Big Tech,” from which this essay is adapted.

Until recently, it was easy to define our most widely known corporations. Any third-grader could describe their essence. Exxon sells gas; McDonald’s makes hamburgers; Walmart is a place to buy stuff. This is no longer so. Today’s ascendant monopolies aspire to encompass all of existence. Google derives from googol, a number (1 followed by 100 zeros) that mathematicians use as shorthand for unimaginably large quantities. Larry Page and Sergey Brin founded Google with the mission of organizing all knowledge, but that proved too narrow. They now aim to build driverless cars, manufacture phones and conquer death. Amazon, which once called itself “the everything store,” now produces television shows, owns Whole Foods and powers the cloud. The architect of this firm, Jeff Bezos, even owns this newspaper.

Along with Facebook, Microsoft and Apple, these companies are in a race to become our “personal assistant.” They want to wake us in the morning, have their artificial intelligence software guide us through our days and never quite leave our sides. They aspire to become the repository for precious and private items, our calendars and contacts, our photos and documents. They intend for us to turn unthinkingly to them for information and entertainment while they catalogue our intentions and aversions. Google Glass and the Apple Watch prefigure the day when these companies implant their artificial intelligence in our bodies. Brin has mused, “Perhaps in the future, we can attach a little version of Google that you just plug into your brain.”

More than any previous coterie of corporations, the tech monopolies aspire to mold humanity into their desired image of it. They think they have the opportunity to complete the long merger between man and machine — to redirect the trajectory of human evolution. How do I know this? In annual addresses and town hall meetings, the founding fathers of these companies often make big, bold pronouncements about human nature — a view that they intend for the rest of us to adhere to. Page thinks the human body amounts to a basic piece of code: “Your program algorithms aren’t that complicated,” he says. And if humans function like computers, why not hasten the day we become fully cyborg?

To take another grand theory, Facebook chief Mark Zuckerberg has exclaimed his desire to liberate humanity from phoniness, to end the dishonesty of secrets. “The days of you having a different image for your work friends or co-workers and for the other people you know are probably coming to an end pretty quickly,” he has said. “Having two identities for yourself is an example of a lack of integrity.” Of course, that’s both an expression of idealism and an elaborate justification for Facebook’s business model.

There’s an oft-used shorthand for the technologist’s view of the world. It is assumed that libertarianism dominates Silicon Valley, and that isn’t wholly wrong. High-profile devotees of Ayn Rand can be found there. But if you listen hard to the titans of tech, it’s clear that their worldview is something much closer to the opposite of a libertarian’s veneration of the heroic, solitary individual. The big tech companies think we’re fundamentally social beings, born to collective existence. They invest their faith in the network, the wisdom of crowds, collaboration. They harbor a deep desire for the atomistic world to be made whole. (“Facebook stands for bringing us closer together and building a global community,” Zuckerberg wrote in one of his many manifestos.) By stitching the world together, they can cure its ills.

Rhetorically, the tech companies gesture toward individuality — to the empowerment of the “user” — but their worldview rolls over it. Even the ubiquitous invocation of users is telling: a passive, bureaucratic description of us. The big tech companies (the Europeans have lumped them together as GAFA: Google, Apple, Facebook, Amazon) are shredding the principles that protect individuality. Their devices and sites have collapsed privacy; they disrespect the value of authorship, with their hostility toward intellectual property. In the realm of economics, they justify monopoly by suggesting that competition merely distracts from the important problems like erasing language barriers and building artificial brains. Companies should “transcend the daily brute struggle for survival,” as Facebook investor Peter Thiel has put it.

When it comes to the most central tenet of individualism — free will — the tech companies have a different way. They hope to automate the choices, both large and small, we make as we float through the day. It’s their algorithms that suggest the news we read, the goods we buy, the paths we travel, the friends we invite into our circles. [Blogger Note: As computers can’t write music like humans, algorithms cannot really define tastes. Our sensibilities are excited by serendipity, innovation, and surprise.]

It’s hard not to marvel at these companies and their inventions, which often make life infinitely easier. But we’ve spent too long marveling. The time has arrived to consider the consequences of these monopolies, to reassert our role in determining the human path. Once we cross certain thresholds — once we remake institutions such as media and publishing, once we abandon privacy — there’s no turning back, no restoring our lost individuality.

***

Over the generations, we’ve been through revolutions like this before. Many years ago, we delighted in the wonders of TV dinners and the other newfangled foods that suddenly filled our kitchens: slices of cheese encased in plastic, oozing pizzas that emerged from a crust of ice, bags of crunchy tater tots. In the history of man, these seemed like breakthrough innovations. Time-consuming tasks — shopping for ingredients, tediously preparing a recipe and tackling a trail of pots and pans — were suddenly and miraculously consigned to history.

The revolution in cuisine wasn’t just enthralling. It was transformational. New products embedded themselves deeply in everyday life, so much so that it took decades for us to understand the price we paid for their convenience, efficiency and abundance. Processed foods were feats of engineering, all right — but they were engineered to make us fat. Their delectable taste required massive quantities of sodium and sizable stockpiles of sugar, which happened to reset our palates and made it harder to satehunger. It took vast quantities of meat and corn to fabricate these dishes, and a spike in demand remade American agriculture at a terrible environmental cost. A whole new system of industrial farming emerged, with penny-conscious conglomerates cramming chickens into feces-covered pens and stuffing them full of antibiotics. By the time we came to understand the consequences of our revised patterns of consumption, the damage had been done to our waistlines, longevity, souls and planet.

Something like the midcentury food revolution is now reordering the production and consumption of knowledge. Our intellectual habits are being scrambled by the dominant firms. Giant tech companies have become the most powerful gatekeepers the world has ever known. Google helps us sort the Internet, by providing a sense of hierarchy to information; Facebook uses its algorithms and its intricate understanding of our social circles to filter the news we encounter; Amazon bestrides book publishing with its overwhelming hold on that market.

Such dominance endows these companies with the ability to remake the markets they control. As with the food giants, the big tech companies have given rise to a new science that aims to construct products that pander to their consumers. Unlike the market research and television ratings of the past, the tech companies have a bottomless collection of data, acquired as they track our travels across the Web, storing every shard about our habits in the hope that they may prove useful. They have compiled an intimate portrait of the psyche of each user — a portrait that they hope to exploit to seduce us into a compulsive spree of binge clicking and watching. And it works: On average, each Facebook user spends one-sixteenth of their day on the site.

In the realm of knowledge, monopoly and conformism are inseparable perils. The danger is that these firms will inadvertently use their dominance to squash diversity of opinion and taste. Concentration is followed by homogenization. As news media outlets have come to depend heavily on Facebook and Google for traffic — and therefore revenue — they have rushed to produce articles that will flourish on those platforms. This leads to a duplication of the news like never before, with scores of sites across the Internet piling onto the same daily outrage. It’s why a picture of a mysteriously colored dress generated endless articles, why seemingly every site recaps “Game of Thrones.” Each contribution to the genre adds little, except clicks. Old media had a pack mentality, too, but the Internet promised something much different. And the prevalence of so much data makes the temptation to pander even greater.

This is true of politics. Our era is defined by polarization, warring ideological gangs that yield no ground. Division, however, isn’t the root cause of our unworkable system. There are many causes, but a primary problem is conformism. Facebook has nurtured two hive minds, each residing in an informational ecosystem that yields head-nodding agreement and penalizes dissenting views. This is the phenomenon that the entrepreneur and author Eli Pariser famously termed the “Filter Bubble” — how Facebook mines our data to keep giving us the news and information we crave, creating a feedback loop that pushes us deeper and deeper into our own amen corners.

As the 2016 presidential election so graphically illustrated, a hive mind is an intellectually incapacitated one, with diminishing ability to tell fact from fiction, with an unshakable bias toward party line. The Russians understood this, which is why they invested so successfully in spreading dubious agitprop via Facebook. And it’s why a raft of companies sprouted — Occupy Democrats, the Angry Patriot, Being Liberal — to get rich off the Filter Bubble and to exploit our susceptibility to the lowest-quality news, if you can call it that.

Facebook represents a dangerous deviation in media history. Once upon a time, elites proudly viewed themselves as gatekeepers. They could be sycophantic to power and snobbish, but they also felt duty-bound to elevate the standards of society and readers. Executives of Silicon Valley regard gatekeeping as the stodgy enemy of innovation — they see themselves as more neutral, scientific and responsive to the market than the elites they replaced — a perspective that obscures their own power and responsibilities. So instead of shaping public opinion, they exploit the public’s worst tendencies, its tribalism and paranoia.

***

During this century, we largely have treated Silicon Valley as a force beyond our control. A broad consensus held that lead-footed government could never keep pace with the dynamism of technology. By the time government acted against a tech monopoly, a kid in a garage would have already concocted some innovation to upend the market. Or, as Google’s Eric Schmidt, put it, “Competition is one click away.” A nostrum that suggested that the very structure of the Internet defied our historic concern for monopoly.

As individuals, we have similarly accepted the omnipresence of the big tech companies as a fait accompli. We’ve enjoyed their free products and next-day delivery with only a nagging sense that we may be surrendering something important. Such blitheness can no longer be sustained. Privacy won’t survive the present trajectory of technology — and with the sense of being perpetually watched, humans will behave more cautiously, less subversively. Our ideas about the competitive marketplace are at risk. With a decreasing prospect of toppling the giants, entrepreneurs won’t bother to risk starting new firms, a primary source of jobs and innovation. And the proliferation of falsehoods and conspiracies through social media, the dissipation of our common basis for fact, is creating conditions ripe for authoritarianism. Over time, the long merger of man and machine has worked out pretty well for man. But we’re drifting into a new era, when that merger threatens the individual. We’re drifting toward monopoly, conformism, their machines. Perhaps it’s time we steer our course.

Next-Gen Social Media

 

This article from Bitcoin.com is a year old, but most people are unaware of these new innovations that define Web 3.0. Web 3.0 is basically the decentralization of Web 2.0 that was/is dominated by central distribution servers like Facebook, Google, Amazon, Netflix, etc. Web 3.0 will put the users in control of their own personal data and information networks. This means the value will be distributed according to the ownership and control of information data. These central distribution servers are the richest companies in the world today – just imagine if they had to start paying you for all the information you upload to their servers. The new services, such as tuka, will share that value.

Is Facebook About to Get ‘Myspaced’ by Next-Gen Social Media?

August 26, 2016 |

By Jamie Redman

Social media is a major component of the Internet and has already transformed how humans communicate and interact. Looking to take things to the next level, a few projects are trying to combine social media with the blockchain.

Steemit

Blockchain-based social media platform Steemit has gained quite a following in the past few months. The project was built by Daniel Larimer, the founder of Bitshares, using graphene architecture. The company is also led by Ned Scott, who is a technical analyst with a background in financial data.

Steemit launched in March 2016 with moderate enthusiasm from the community and a small following. It has since been a hot topic in cryptocurrency circles and social media.

During the summer, Steemit attracted a lot of artists, writers, and vloggers to the platform because it pays people for sharing content. People have been paid thousands of dollars per post in some instances, with the most popular articles netting close to $15,000 USD.

The platform, which combines the concepts of Facebook, WordPress, and Reddit, operates on the Steemit blockchain and uses three types of crypto-tokens:

Steem Power gives users the ability to throw their weight around on the platform. The more power you have, the more significant your vote will be when you upvote a post or even a comment. Comments have been seen to be upwards of $20-40, so all interaction is rewarded.

Steem is a token that powers two smart contract protocols similar to Ether’s gas, and is tradable on cryptocurrency markets. The token is supported on exchanges like Bittrex or Poloniex. However, holders also have the option to use their coins to boost their Steem Power..

Steem Dollars are designed to be pegged to $1 USD and be the equivalent of one dollar’s worth of Steem for conversion over the platform. On cryptocurrency exchanges, SBD’s can be seen trading for a dollar or less depending on the current market value. So, in essence, it makes more sense to use the system’s seven-day conversion over a third-party exchange, though lots of people cash out their content earnings elsewhere.

Steem Adds New Features

Steemit developers has just announced the addition of highly-requested features to the site. The services will enhance the social media experience by adding private messaging, notifications, and follow buttons. The team believes implementing these new features will facilitate interaction between community members and attract new people currently using Facebook, Instagram, and Twitter.

Steemit CEO Ned Scott explains:

Enhancing the diversity of our application-specific blockchain is a natural progression for Steemit. Private messaging is perfectly suited for a decentralized system and will empower users in a similar way to how direct messages empower users on Twitter. The ‘follow’ feature will enable community members to receive notifications as soon as their favorite authors post, and the notifications will work just like Facebook in that users will be alerted immediately upon a new post or upvote from their favorite contributors. These features are the pillars of current social media giants and we look forward to integrating them into Steemit over the coming weeks.

Big Names & Skepticism

Steemit’s popularity has attracted quite a few well-known people to share content over the platform, including personalities like Trace Mayer, Larken Rose, Charlie Shrem, Roger Ver, Tatiana Moroz and Rick Falkvinge. Some of these famous users regularly take in four figures for introducing themselves, writing stories, and posting video and podcast content.

However, there have been some naysayers who believe the project is a scam, or resembles somewhat of a ponzi. Brave New Coincontributor and bitcoin technical analyst Tone Vays says Steemit appears to be a ponzi scheme. Vays highlighted many points on why he believes the platform is set up like a pyramid scam. He even debated the issue on the Dollar Vigilante’s podcast, Anarchast. Many people are waiting to see if the project can continue to hold its own, keep up its significantly large payouts, and ultimately survive as a social media platform with perks.

Competition Is Coming

Soon Steemit won’t be the only blockchain-based social media platform on the market. Tel-Aviv-based Synereo, founded by Dor Konforty and Greg Meredith, also aims to create a decentralized social media protocol.

The team has recently announced a prototype of the Synereo platform, which is in its alpha phase and works on top of the software’s distributed stack.

With Synereo’s blockchain-based social network, the protocol puts content creators in charge of the media they produce — just like Steemit. Users control their personal information and produce content that can be monetized within the Synereo community.

Unlike Twitter or Facebook, the Synereo application doesn’t store data on its users and cannot sell the information to third-parties. Instead, the platform works through transactions on the Synereo blockchain and is only available to network participants.

The Synereo social media network will operate without any central server, and will compensate its user base for their content and shared computational power. The team also says that the project “adheres to principles of the attention economy” that in essence rewards network users for creation and curation.

The platform includes text posting, image posting, content labeling, taggable posts and hashtags, decentralized searching and content amplification. Users will also be able to promote content by charging with the Synereo blockchain’s native currency, AMP. Users viewing content loaded with AMP will be compensated, encouraging people to interact with amplified content.

During last week’s developer and community hangout, the Synereo team talked about its recent joint venture with wewowwe.com.

The developers’ news update states:

The wewowwe.com project has now API functionality and is able to work with outside networks, so that users can now be compensated automatically with AMPs for their contributions to their social network.—Also the components of the Synereo ecosystem are starting to converge and reveal a detailed picture of its capability.

Will Centralized Social Media Fall to the Wayside?

Platforms like Facebook and Twitter are still the prominent social media applications everyone uses. The mechanics of these websites are very much centralized, as third-parties benefit from users’ content, targeted ads, and personal information.

Meanwhile, other social media services like DiasporaTSU and others haven’t been able to grasp widespread attention on par with the reception received by Steemit so far.

Given the rising popularity of Steemit, the next generation of social media will make it easier to monetize content, resist censorship and provide users with a true peer-to-peer experience. It may be a few years until Facebook loses its supremacy the way MySpace did, but the trend towards decentralization and better security will ensure that users do not only retain their privacy, but also share in the spoils of their online community.

Who Owns the Internet?

Good New Yorker article referencing Jonathan Taplin’s book Move Fast and Break Things and Franklin Foer’s World Without Mind discussing the state of affairs in the creative digital industries and the role of information in politics and society.

Who Owns the Internet?

What Big Tech’s monopoly powers mean for our culture.

Both writers take the approach of legal copyright and the effects of piracy 0n revenue streams. We believe the focus should be on how content is valued and monetized through network effects. Taplin alludes to this when he suggests a streaming service as a non-profit cooperative (why non-profit?).

Such a streaming/lending service is consistent with the tuka ecosystem model and the revenues generated would be distributed accordingly to the content creators, profitably. This is an essential part of how content is distributed these days according to how consumers want to consume it. The network data generated by the ecosystem can also be monetized through advertising and ancillary marketing, supplementing the decreased income users receive from sales.

This recognizes that the primary roadblock to a thriving ecosystem is the connection costs associated with excessive supply of unfiltered content. This is a problem for consumers as well as creators. Solving that problem helps solve the revenue problem.

Digital Monopoly

Digital platforms force a rethink in competition theory

 

Economists need to provide regulators with tools to deal with market concentration

by: Diane Coyle, FT.com

Anxiety about the health of competition in the US economy — and elsewhere — is growing. The concern may be well founded but taking forceful action will require economists to provide some practical ways of proving and measuring the harm caused by increasing market power in the digital economy.

The forces driving concentration do not affect the US alone. In all digital markets, the cost structure of high upfront costs and low additional or marginal costs means there are large economies of scale. The broad impact of digital technology has been to increase the scope of the markets many businesses can hope to reach.

How will investment in physical networks or content get funded if an incumbent using the network and content captures all the profit downstream?

In pre-digital days, the question an economist would ask is whether the efficiencies gained by big or merging companies would be passed on to consumers in the form of lower prices. Another key question was whether it would still be possible for new entrants to break into the market.

Digital platforms make these questions harder to answer.

Read more… (Paywall – see comment below)

Digital Futures

Here are four NYT opinion articles written by or about Jaron Lanier, who has been on the forefront of digital culture for at least the past 25 years. He presents much of the challenges and failures of technology when it butts up against humanism. The last two are reviews of his book, Who Owns the Future?  Definitely worth a read.

Fixing the Digital Economy

Digital Passivity

Will Digital Networks Ruin Us?

Fighting Words Against Big Data

Google This.

AP FACEBOOK F A USA NY
(Photo: Mark Lennihan, AP)

Another argument that moves toward making these companies public utilities. (Google more than Facebook.) From USA Today:

I invested early in Google and Facebook and regret it. I helped create a monster.

‘Brain hacking’ Internet monopolies menace public health, democracy, writes Roger McNamee.

I invested in Google and Facebook years before their first revenue and profited enormously. I was an early adviser to Facebook’s team, but I am terrified by the damage being done by these Internet monopolies.

Technology has transformed our lives in countless ways, mostly for the better. Thanks to the now ubiquitous smartphone, tech touches us from the moment we wake up until we go to sleep. While the convenience of smartphones has many benefits, the unintended consequences of well-intentioned product choices have become a menace to public health and to democracy.

Facebook and Google get their revenue from advertising, the effectiveness of which depends on gaining and maintaining consumer attention. Borrowing techniques from the gambling industry, Facebook, Google and others exploit human nature, creating addictive behaviors that compel consumers to check for new messages, respond to notifications, and seek validation from technologies whose only goal is to generate profits for their owners.

The people at Facebook and Google believe that giving consumers more of what they want and like is worthy of praise, not criticism. What they fail to recognize is that their products are not making consumers happier or more successful.

Like gambling, nicotine, alcohol or heroin, Facebook and Google — most importantly through its YouTube subsidiary — produce short-term happiness with serious negative consequences in the long term.

Users fail to recognize the warning signs of addiction until it is too late. There are only 24 hours in a day, and technology companies are making a play for all them. The CEO of Netflix recently noted that his company’s primary competitor is sleep.

How does this work? A 2013 study found that average consumers check their smartphones 150 times a day. And that number has probably grown. People spend 50 minutes a day on Facebook. Other social apps such as Snapchat, Instagram and Twitter combine to take up still more time. Those companies maintain a profile on every user, which grows every time you like, share, search, shop or post a photo. Google also is analyzing credit card records of millions of people.

As a result, the big Internet companies know more about you than you know about yourself, which gives them huge power to influence you, to persuade you to do things that serve their economic interests. Facebook, Google and others compete for each consumer’s attention, reinforcing biases and reducing the diversity of ideas to which each is exposed. The degree of harm grows over time.

Consider a recent story from Australia, where someone at Facebook told advertisers that they had the ability to target teens who were sad or depressed, which made them more susceptible to advertising. In the United States, Facebook once demonstrated its ability to make users happier or sadder by manipulating their news feed. While it did not turn either capability into a product, the fact remains that Facebook influences the emotional state of users every moment of every day. Former Google design ethicist Tristan Harris calls this “brain hacking.”

The fault here is not with search and social networking, per se. Those services have enormous value. The fault lies with advertising business models that drive companies to maximize attention at all costs, leading to ever more aggressive brain hacking.

The Facebook application has 2 billion active users around the world. Google’s YouTube has 1.5 billion. These numbers are comparable to Christianity and Islam, respectively, giving Facebook and Google influence greater than most First World countries. They are too big and too global to be held accountable. Other attention-based apps — including InstagramWhatsAppWeChatSnapChat and Twitter — also have user bases between 100 million and 1.3 billion. Not all their users have had their brains hacked, but all are on that path. And there are no watchdogs.

Anyone who wants to pay for access to addicted users can work with Facebook and YouTube. Lots of bad people have done it. One firm was caught using Facebook tools to spy on law abiding citizens. A federal agency confronted Facebook about the use of its tools by financial firms to discriminate based on race in the housing market. America’s intelligence agencies have concluded that Russia interfered in our election and that Facebook was a key platform for spreading misinformation. For the price of a few fighter aircraft, Russia won an information war against us.

Incentives being what they are, we cannot expect Internet monopolies to police themselves. There is little government regulation and no appetite to change that. If we want to stop brain hacking, consumers will have to force changes at Facebook and Google.

Roger McNamee is the managing director and a co-founder of Elevation Partners, and investment partnership focused on media/entertainment content and consumer technology. 

The Thing That Devoured the World

Interesting take on Amazon’s dominance reprinted from PJ Media.

The ‘Amazon Washington Post,’ and Why It Needs to Be Destroyed

By Michael Walsh 2017-07-22

As readers of PJ Media’s daily feature, Hot Mic, are aware, I’m not a big fan of Amazon. In the guise of ease, efficiency and allegedly low prices, it’s crushing the life out of the retail sector in the United States, demolishing bookstores, big-box stores, department stores, grocery stores, record stores, and even smaller retail outlets, putting small businessmen, struggling authors and garage bands out of business. In so doing, it’s also killing job prospects for entry-level workers who might actually not want to work at McDonald’s.

In their place, it offers you Alexa, your very own electronic monitor and spy, sleeping right next to you on the nightstand in the innocuous guise of your smart phone or your tablet, monitoring your porn searches while it pretends to buy you Doris Kearns Goodwin’s latest book or a tin of Acai berry powder.

In publishing, where I earn part of my living, it forces authors to compete with themselves, offering marked-down used versions of works still in print, thus depriving us of royalty payments. At a time when advances — except to celebrities famous for something other than their literary skills — are a tenth of what they used to be, working writers must now depend on quickly earning out the initial advance (based on — you guessed it — royalties) and then getting subsequent paychecks at six-month intervals for as long as the book continues to sell new copies.

Don’t even get me started on Hollywood.

Well, you say, that’s my — and Roger’s and Richard’s and Drew Klavan’s and Roger Kimball’s and David Goldman’s and VDH’s and Andy’s, among other PJ colleagues — tough luck. True enough. But, wait — you’re next.

Shares of  Home Depot and  Lowe’s were slammed Thursday, along with  Whirlpool, after  Amazon threatened to take on the appliance market in a much bigger way in a deal with  Sears Holdings.

The market cap loss in Home Depot, Lowe’s, Whirlpool and Best Buy was about $12.5 billion by the end of the day, after falling to more than $13 billion. Amazon stock was up slightly, and Sears closed up about 10 percent.

But the early read from some analysts was that the sell-off has created a buying opportunity for home improvement retailers Home Depot and Lowe’s, which have proven themselves to be somewhat “Amazon-proof” and among the best performers in the sector. Best Buy, already battling Amazon in electronics, ended the day about 4 percent lower.

Sears, which has been losing share in appliance for years, saw its stock rally as much as 25 percent early Thursday, soon after it announced it would sell its Kenmore-branded appliances on Amazon.com. The products will be compatible with Amazon’s Alexa platform.

God knows, Sears can use the help, as the pictures at the link show. Even if it comes via the Trojan Horse of Alexa. Having been beaten nearly to death by its own ineptitude and electronic retailing, Sears has finally decided that if you can’t beat ’em, join ’em.

The department store chain announced plans on Thursday to sell Kenmore-branded appliances on Amazon.com. Sears also said its Kenmore Smart appliances will be integrated with Amazon’s Alexa platform. Shares of Sears’ stock were climbing more than 25 percent at one point in trading before the market’s open following this news.

“The launch of Kenmore products on Amazon.com will significantly expand the distribution and availability of the Kenmore brand in the U.S.,” Sears CEO Eddie Lampert said in a statement. “At the same time, Sears Home Services and our Innovel Solutions unit will benefit from the relationship as more customers experience their quality services for Kenmore products purchased on Amazon.com.”

Sears said a new “Kenmore Smart” skill for Amazon Alexa will allow customers to control their appliances — changing the temperature on an air conditioner without leaving the sofa, for example.

Now there’s progress for you — progress toward the further coach-potatoing of America, perhaps, but progress. Naturally, there’s a downside for Sears:

In partnering with Amazon, Sears is looking to expand its reach and grow the Kenmore nameplate. However, the move is a double-edged sword, because it also gives shoppers another reason to avoid heading to a Sears store.

But hey — in the brave new Amazonian jungle, there’s even an upside to the downside!

Appliances are one of the categories that have helped draw customers. Just last month, Sears opened a store — the first of its kind for the company — that only sells mattresses and appliances. Plans are also underway to open additional freestanding Sears stores dedicated to these two categories — what Sears has called “two of its strongest.”

“This is consistent with Sears’ aim of becoming more of a remote seller of strong brands without the encumbrance of expensive real estate,” GlobalData Retail Managing Director Neil Saunders told CNBC. “The move makes sense as it puts Sears’ brand products where customers are shopping and gives them a better chance of selling.”

“That said, in the short term it may create even fewer reasons to visit Sears’ shops, which could put further pressure on that side of the business,” Saunders added. “It also puts Sears into a marketplace which is very price competitive and where fulfillment costs are high; this is something that may be challenging for margins.”

Translation: Sears is doomed, but this will prolong the death throes for a while longer, while the last generation of Sears execs can pull the cords on their golden parachutes.

Now, in many ways, Amazon is the logical successor to Sears, which invented the concept of the department store and, through its mail-order catalog, delivered goods and goodies across a rapidly expanding America; you could even buy your house out of a Sears catalog.  On the other hand, there’s an important difference: with Sears you could pay C.O.D.; with Amazon, you either use a credit card (at 18% interest) or you’re out of luck. Do business in cash? Tough. Like to avoid finance charges? Too bad, unless you pay off your balances every month. Don’t want to go into debt over that irresistible offer Alexa just chirped to you? Fuhgeddaboutitt.

Meanwhile, the FTC is sniffing around Amazon’s business practices:

As part of its review of Amazon’s agreement to buy Whole Foods, the Federal Trade Commission is looking into allegations that Amazon misleads customers about its pricing discounts, according to a source close to the probe.

The FTC is probing a complaint brought by the advocacy group Consumer Watchdog, which looked at some 1,000 products on Amazon’s website in June and found that Amazon put reference prices, or list prices, on about 46 percent of them.

An analysis found that in 61 percent of products with reference prices, Amazon’s reference prices were higher than it had sold the same product in the previous 90 days, Consumer Watchdog said in a letter to the FTC dated July 6. Following receipt of the letter, the agency made informal inquiries about the allegations, according to a source who spoke on background to preserve business relationships.

This can’t be good. Enough alarms have been set off by Amazon’s tender for the Leftist sacred cow of Whole Foods, its new partnership with Sears, and its entry to the meal-kit market to finally get the attention of federal authorities.

The review of Amazon’s discount pricing is an indication the FTC is taking a serious look at the e-commerce company’s agreement to buy Whole Foods, a deal that critics say could give Amazon an unfair advantage. Consumer Watchdog argued that the deceptive list prices make Amazon prices look like a bargain, and asked the FTC to stop Amazon from buying Whole Foods while the deceptive discounting is occurring.

The FTC plays a dual role of probing charges of deceptive advertising and assessing mergers to ensure they comply with antitrust law. Amazon said in June that it would buy the premium grocer for $13.7 billion. The FTC’s “Guide Against Deceptive Pricing” warns against using a “fictitious” or “inflated” list price for the purpose of making the price charged look like a bargain.

Amazon settled similar allegations with Canada’s Competition Bureau in January. It paid a fine of C$1 million ($756,658.60) as part of the settlement.

In the background, but very much part of the conversation, is Amazon’s engorgement on the The Washington Post company, a once-honored (Watergate!) news organization that Amazon boss Jeff Bezos essentially bought for parts — the main part being the still-influential newspaper in the Imperial City of Washington, D.C. This isn’t so much of a financial investment as a form of protection money — although Bezos had the chutzpah recently to whine about the deleterious effect of Google and Facebook on print’s advertising base, and to make a pitch to the U.S. government for anti-trust protection:

Four years ago, Amazon founder Jeff Bezos was asked if his company’s “ruthless” pursuit of market share was driving book stores out of business. “The Internet is disrupting every media industry,” Bezos said. “People can complain about that, but complaining is not a strategy. And Amazon is not happening to book selling, the future is happening to book selling.”

The future is also happening to newspaper publishers, and their latest effort to stave off change — a bid for an antitrust exemption — is unlikely to succeed, according to legal experts and Silicon Valley insiders who spoke with CNNMoney.

Earlier this week, the News Media Alliance — which says it represents over 2,000 newspapers in the U.S., including The New York Times, The Washington Post and The Wall Street Journal — said it would begin seeking an antitrust exemption from Congress in order to negotiate collectively with Google and Facebook, which together receive an estimated 60% of all U.S. digital advertising revenue.

Good luck with that — because here comes the Big Dog:

The president here puts his finger on Bezos’ long game in buying the Post — with its long-burnished connections to the deepest of the Deep State swamp creatures, the always-wrong CIA — and its past journalistic credibility. Owning the Post gives him leverage over not only Trump, but the federal government as well; it’s worth almost any amount of money that Bezos wants to spend in order for his to be the public voice of the most important city in the world, a city made of money, dedicated to the pursuit of power, and determined to keep the good times rolling without grubby outside interference from the likes of the nouveau-riche Trump family.

The outer-borough Trump, whose never-lost Queens accent set him apart from his tony mid-Atlantic Manhattan counterparts, may have made his new money in the low-rent residential real estate business, but the D.C. elite came by theirs the old fashioned-ways: through the Old-Ivy higher education networks (Hotchkiss and Andover to Yale and Harvard) and generations of familial political connection and, often, corruption.

Bezos, like Trump, is an outsider. But rather than run for president — that piddling office — he busted up American retailing and grabbed the Post to ensure that trouble from 1600 Pennsylvania Avenue and Capitol Hill would be kept to an absolute minimum. With the example of Bill Gates and Microsoft still fresh in everyone’s memory, why wouldn’t he?

… In a much-­anticipated decision, Judge Thomas Penfield Jackson declared that, by exploiting its monopoly power to try to crush its competitors, Microsoft had violated federal anti-trust laws. Judge Jackson didn’t just buy some of what Boies, representing the United States government, was selling in the case: that Microsoft had illegally used its stranglehold over computer operating systems to intimidate or eliminate its rivals; he bought it almost verbatim.

Was United States v. Microsoft a tough case? a New York Times reporter asked him before the trial. “Not really,” he replied. And Microsoft—having produced reams of self-­incriminating documents and a parade of witnesses who came to court overconfident or inept or deceitful or ill-­prepared—made it easier for him than he ever imagined.

And the best part about Amazon’s climb to monopolistic supremacy? You’re subsidizing it:

Like many close observers of the shipping business, I know a secret about the federal government’s relationship with Amazon: The U.S. Postal Service delivers the company’s boxes well below its own costs. Like an accelerant added to a fire, this subsidy is speeding up the collapse of traditional retailers in the U.S. and providing an unfair advantage for Amazon.

In 2007 the Postal Service and its regulator determined that, at a minimum,  5.5% of the agency’s fixed costs must be allocated to packages and similar products. A decade later, around 25% of its revenue comes from packages, but their share of fixed costs has not kept pace. First-class mail effectively subsidizes the national network, and the packages get a free ride. An April analysis from  Citigroup estimates that if costs were fairly allocated, on average parcels would cost $1.46 more to deliver. It is as if every Amazon box comes with a dollar or two stapled to the packing slip—a gift card from Uncle Sam.
Amazon is big enough to take full advantage of “postal injection,” and that has tipped the scales in the internet giant’s favor. Select high-volume shippers are able to drop off presorted packages at the local Postal Service depot for “last mile” delivery at cut-rate prices. With high volumes and warehouses near the local depots, Amazon enjoys low rates unavailable to its competitors. My analysis of available data suggests that around two-thirds of Amazon’s domestic deliveries are made by the Postal Service. It’s as if Amazon gets a subsidized space on every mail truck.
Enjoy your “savings” and “convenience,” folks. After all, you’re paying for it — boy, are you ever.

Why musicians are so angry…

…at the world’s most popular music streaming service

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Washington Post
 July 14
With the money from CDs and digital downloads disappearing, the music industry has pinned its hope for the future on online song streaming, which now accounts for the majority of the $7.7 billion U.S. music market.

But the biggest player in this future isn’t one of the names most associated with streaming — Spotify, Amazon, Pandora or Apple. It’s YouTube, the site best known for viral videos, which accounts for 25 percent of all music streamed worldwide, far more than any other site.

Now, YouTube is locked in an increasingly bitter battle with music labels over how much it pays to stream their songs — and at stake is not just the finances of the music industry but also the way that millions of people around the world have grown accustomed to listening to music: free of cost.

Music labels accuse YouTube of using a legal loophole to pay less for songs than traditional music-streaming sites, calling YouTube the biggest threat since song piracy crippled the industry in the early 2000s. The industry has pressed its case to regulators around the world in hopes of forcing a change.

“I do think YouTube is starting to panic a little bit,” said Mitch Glazier, president of the Recording Industry Association of America.

But YouTube is not backing down, stressing the benefits to musicians of promotion on one of the Web’s most popular sites — which allows ordinary users to integrate music into their uploads. YouTube also warns against attacks that could reduce competition among streaming services.

“The industry should be really, really careful because they could close their eyes and wake up with their revenue really concentrated in two, three sources,” said Lyor Cohen, YouTube’s global head of music, referring to Spotify, Apple Music and Amazon Prime Music. (Amazon founder Jeffrey P. Bezos owns The Washington Post.)

The music industry counters they are backed into a corner when negotiating with YouTube — a unit of Google-parent Alphabet — which is mostly shielded by federal law from being responsible for what users post on the site.

“It isn’t a level playing field,” said one executive at a major music label who spoke on the condition of anonymity because he wasn’t authorized to talk, “because ultimately you’re negotiating with a party who is going to have your content no matter what.”

Now, the battle is heating up as the European Union is expected to release new rules later this year for how services such as YouTube handle music, potentially upending some of the copyright protections that undergird the Internet.

Online streaming works like a digital jukebox, with fractions of a penny paid each time a song is played. The money comes from ads and subscriptions.

The E.U. has formally recognized that there is a “value gap” between song royalties and what user-upload services such as YouTube earn from selling ads while playing music. YouTube is by far the largest user-upload site.

How such a law would address the gap is still being decided, but the E.U. has indicated it plans to focus on ensuring copyright holders are “properly remunerated.”

Even the value gap’s existence is disputed.

A recent economic study commissioned by YouTube found no value gap — in fact, the report said YouTube promotes the music industry, and if YouTube stopped playing music, 85 percent of users would flock to services that offered lower or no royalties.

A different study by an independent consulting group pegged the YouTube value gap at more than $650 million in the United States alone.

“YouTube is viewed as a giant obstacle in the path to success for the streaming marketplace,” Glazier said.

The dispute boils down to what YouTube pays for songs.

Musicians from Arcade Fire to Garth Brooks to Pharrell Williams say they earn significantly less when their songs are played on YouTube than on a site such as Spotify — even though many listeners use these services in the same way. Both YouTube and Spotify allow users to search for music and find song recommendations. On YouTube, users can find music alongside cat videos and toy reviews in what is generally a free-for-all of content, while people go to Spotify and the like for a more refined experience. Some audiophiles argue the sound quality on music streaming sites is superior.

YouTube pays an estimated $1 per 1,000 plays on average, while Spotify and Apple music pay a rate closer to $7.

Irving Azoff, the legendary manager for acts such as the Eagles and Christina Aguilera, said he has one artist — whom he declined to name — who gets 33 percent of her online streams from YouTube but only 10 percent of her streaming revenue.

Smaller acts see it, too. Zoe Keating, an instrumental cello player, showed The Washington Post a statement from YouTube showing that she earned $261 from 1.42 million views on YouTube. In comparison, she earned $940 from 230,000 streams on Spotify.

“YouTube revenue is so negligible that I stopped paying attention to it,” Keating said.

YouTube admits that it pays less for songs.

But the reason for this disparity is where the two sides split.

The music industry claims YouTube has avoided paying a fair-market rate by hiding behind broad legal protections. In the United States, that’s the “safe harbor” provision, which essentially says YouTube is not to blame if someone uploads a copy-protected song —unless the copyright holder complains.

This, the music industry argues, leads to a costly game of “Whac-A-Mole”: hunting for illicit song uploads and filing notices with YouTube.

“You can’t prevent something from going up on YouTube. All you can do is ask them to take it down,” said Stephen Carlisle, who runs the copyright office at Nova Southeastern University. “At some point, it’s not worth it to do this.”

YouTube says it has the solution: Its Content ID system automatically checks for violations by comparing songs detected in new uploads against a database of claimed songs, capturing 99.5 percent of complaints. The company says it averages fewer than 1,500 traditional copyright claims from the music industry a week.

YouTube also pointed out that it has licensing deals with music labels large and small.

Earlier this year, Warner Music Group — one of the “big three” music labels — signed a new licensing deal with YouTube, and a memo from Warner chief executive Steve Cooper leaked out, saying the deal was signed “under very difficult circumstances.”

“There’s no getting around the fact that, even if YouTube doesn’t have licenses, our music will still be available but not monetized at all,” the memo continued.

Warner confirmed the memo’s authenticity, but, like the other major labels, declined to comment for this article.

Cooper’s complaints surprised Cohen, who worked at Warner until leaving for YouTube last year.

“I never heard that from his mouth during the entire negotiation,” Cohen said.

Cohen’s move to YouTube created waves in the industry. After all, Cohen was famous for taking one of the hardest stands against YouTube when, in 2008, he pulled Warner’s entire song catalogue from the video service to protest low song royalties. It was the nuclear option.

And it failed. After nine months and spending $2 million trying to keep its music off YouTube, Warner capitulated.

Cohen said he was sympathetic to his former colleague’s complaints. But YouTube pays $1 billion in song royalties worldwide each year. Cohen said his company has been hindered by its global reach — ad rates are lower outside the United States — and its slower rollout of a subscription option, YouTube Red. Song royalties are higher with monthly subscriptions than ads.

“What I’m trying to do with YouTube is be a cheerleader to build a subscription business that the industry can be proud of,” Cohen said.

Nabila Hisham, 22, is a music fan on YouTube. Recently, the college student in Kuala Lumpur, Malaysia, has been playing one song repeatedly: “Despacito,” a chart-topping Latin pop remix featuring Justin Bieber. The YouTube video — which has a total of 412 million plays — is a photo of Bieber’s tattooed neck. The video is beside the point. For, Hisham, it’s about the music.

“I’m glad that YouTube exists,” she said.

Correction: A previous version of this story stated YouTube’s ContentID system automatically handles 98 percent of copyright management for songs. The system handles 99.5 percent.

AI, Dogs, and Worms

Reposted below is an interesting article that cuts through some of the hype surrounding Artificial Intelligence. Instead of imagining thinking machines, we should probably think of AI at this point as machine learning from data/information that can augment human sensory inputs. For instance, in a self-driving car, the AI brain can inform us of dangers we may not be able to see or sense ourselves, thus enhancing our abilities to make correct judgments. Robots don’t make judgments – they merely process information, albeit at a high processing level.

How understanding animals can help us make the most of artificial intelligence

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Autonomous cars aren’t smarter than this.

Heather Roff, Arizona State University

Every day countless headlines emerge from myriad sources across the globe, both warning of dire consequences and promising utopian futures – all thanks to artificial intelligence. AI “is transforming the workplace,” writes the Wall Street Journal, while Fortune magazine tells us that we are facing an “AI revolution” that will “change our lives.” But we don’t really understand what interacting with AI will be like – or what it should be like. The Conversation

It turns out, though, that we already have a concept we can use when we think about AI: It’s how we think about animals. As a former animal trainer (albeit briefly) who now studies how people use AI, I know that animals and animal training can teach us quite a lot about how we ought to think about, approach and interact with artificial intelligence, both now and in the future.

Using animal analogies can help regular people understand many of the complex aspects of artificial intelligence. It can also help us think about how best to teach these systems new skills and, perhaps most importantly, how we can properly conceive of their limitations, even as we celebrate AI’s new possibilities.

Looking at constraints

As AI expert Maggie Boden explains, “Artificial intelligence seeks to make computers do the sorts of things that minds can do.” AI researchers are working on teaching computers to reason, perceive, plan, move and make associations. AI can see patterns in large data sets, predict the likelihood of an event occurring, plan a route, manage a person’s meeting schedule and even play war-game scenarios.

Many of these capabilities are, in themselves, unsurprising: Of course a robot can roll around a space and not collide with anything. But somehow AI seems more magical when the computer starts to put these skills together to accomplish tasks.

Take, for instance, autonomous cars. The origins of the driverless car are in a 1980s-era Defense Advanced Research Project Agency project called the Autonomous Land Vehicle. The project’s goals were to encourage research into computer vision, perception, planning and robotic control. In 2004, the ALV effort became the first Grand Challenge for self-driving cars. Now, more than 30 years since the effort began, we are on the precipice of autonomous or self-driving cars in the civilian market. In the early years, few people thought such a feat was impossible: Computers couldn’t drive!

The DARPA Grand Challenge pushed development of autonomous vehicles.

Yet, as we have seen, they can. Autonomous cars’ capabilities are relatively easy for us to understand. But we struggle to comprehend their limitations. After the 2015 fatal Tesla crash, where the car’s autopilot function failed to sense a tractor-trailer crossing into its lane, few still seem to grasp the gravity of how limited Tesla’s autopilot really is. While the company and its software were cleared of negligence by the National Highway Traffic Safety Administration, it remains unclear whether customers really understand what the car can and cannot do.

Is Lowly Worm really your Tesla’s autopilot?
patterned/flickr, CC BY-ND

What if Tesla owners were told not that they were driving a “beta” version of an autopilot but rather a semi-autonomous car with the mental equivalence of a worm? The so-called “intelligence” that provides “full self-driving capability” is really a giant computer that is pretty good at sensing objects and avoiding them, recognizing items in images and limited planning. That might change owners’ perspectives about how much the car could really do without human input or oversight.

What is it?

Technologists often try to explain AI in terms of how it is built. Take, for instance, advancements made in deep learning. This is a technique that uses multi-layered networks to learn how to do a task. The networks need to process vast amounts of information. But because of the volume of the data they require, the complexity of the associations and algorithms in the networks, it is often unclear to humans how they learn what they do. These systems may become very good at one particular task, but we do not really understand them.

Instead of thinking about AI as something superhuman or alien, it’s easier to analogize them to animals, intelligent nonhumans we have experience training.

For example, if I were to use reinforcement learning to train a dog to sit, I would praise the dog and give him treats when he sits on command. Over time, he would learn to associate the command with the behavior with the treat.

Teaching a dog to sit is a lot like training an artificial intelligence.

Training an AI system can be very much the same. In reinforcement deep learning, human designers set up a system, envision what they want it to learn, give it information, watch its actions and give it feedback (such as praise) when they see what they want. In essence, we can treat the AI system like we treat animals we are training.

The analogy works at a deeper level too. I’m not expecting the sitting dog to understand complex concepts like “love” or “good.” I’m expecting him to learn a behavior. Just as we can get dogs to sit, stay and roll over, we can get AI systems to move cars around public roads. But it’s too much to expect the car to “solve” the ethical problems that can arise in driving emergencies.

Helping researchers too

Thinking of AI as a trainable animal isn’t just useful for explaining it to the general public. It is also helpful for the researchers and engineers building the technology. If an AI scholar is trying to teach a system a new skill, thinking of the process from the perspective of an animal trainer could help identify potential problems or complications.

For instance, if I try to train my dog to sit, and every time I say “sit” the buzzer to the oven goes off, then my dog will begin to associate sitting not only with my command, but also with the sound of the oven’s buzzer. In essence, the buzzer becomes another signal telling the dog to sit, which is called an “accidental reinforcement.” If we look for accidental reinforcements or signals in AI systems that are not working properly, then we’ll know better not only what’s going wrong, but also what specific retraining will be most effective.

This requires us to understand what messages we are giving during AI training, as well as what the AI might be observing in the surrounding environment. The oven buzzer is a simple example; in the real world it will be far more complicated.

Before we welcome our AI overlords and hand over our lives and jobs to robots, we ought to pause and think about the kind of intelligences we are creating. They will be very good at doing particular actions or tasks, but they cannot understand concepts, and do not know anything. So when you are thinking about shelling out thousands for a new Tesla car, remember its autopilot function is really just a very fast and sexy worm. Do you really want to give control over your life and your loved ones’ lives to a worm? Probably not, so keep your hands on the wheel and don’t fall asleep.

Heather Roff, Senior Research Fellow, Department of Politics & International Relations, University of Oxford; Research Scientist, Global Security Initiative, Arizona State University

This article was originally published on The Conversation. Read the original article.

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tuka Integration = Web 3.0

tuka aligns the primary needs of a creative market–to promote, transact and connect–through three integrated digital technologies. These are an online social network (OSN) that is more accurately termed a online media network; a peer-to-peer (P2P) filesharing protocol to exchange digital media; and a blockchain transaction ledger to keep track of information data flows and transactions.We might put it more simply in these terms:

OSN + P2P + BC = tuka.

1. Promote.

The purpose of the OSN platform is to share and promote content. It’s different from Facebook because postings are limited to sample files of creative content. In other words, good-bye to white noise and push ads. Through a timeline feed, users curate their feeds so creators can discover their audiences and vice-versa.

2. Transact.

Resulting transactions among users are enabled over a peer-to-peer [P2P] file-sharing distribution and payments network.

3. Connect.

The flow of transactions data and shared information is recorded by the Blockchain (BC). Peer networks are managed through a dedicated user dashboard.

Control Your Peer Network.

Blockchain is a distributed public ledger that records all transaction/data flows between users, whether monetary or non-monetary (read more here and here). Smart contracts can be programmed into the metadata of digital content so the Blockchain can distribute value to every user who contributes to the final transaction, meaning promotional efforts by fans can be rewarded by content owners, contingent upon sales. Successful promotion and marketing receive remuneration after the sale; while unsuccessful or free promo incurs no costs.

A Blockchain ledger system also means users have the power to build out and control their own peer networks on the platform. Users can reap the value of their data networks rather than surrendering that value to network servers.

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