When disruption takes place, it can often become a free for all.
This is something that is happening to the media industry. We are seeing the advancement of technology, especially artificial intelligence, disrupt everything. In the past, the Internet altered how content was distributed. We are now watching an altering of how content is created.
The mainstream media entities are going to get a lot smaller. This is something that has begun.
Broadcast, print and digital outlets collectively saw 2,681 journalism job cuts in 2023, up 48% from 1,808 in 2022 and 77% from 1,511 in 2021, according to a report from employment firm Challenger, Gray & Christmas.
This is just the tip of the iceberg.
Here is the bottom line: social media is taking over. We often discussed the idea of social media and finance merging. However, this it is much wider than that.
Essentially, the tools are hitting the market for individuals to create all kinds of content including news, movies, music, serials, and documentaries. For the moment, this is resident on Web 2.0. Most people turn to Facebook or Twitter as compared to broadcast media for their news. This is something that Web3 needs to adopt.
Sports Illustrated
Not long ago, it was revealed that Sports Illustrated had AI generated stories. This is nothing new since most media outlets do this to some degree. What is unique in this instance is how this posted under make up profiles. It was complete with AI generated pictures of the "writers".
This caused quite a stir yet should not be surprising. It is safe to say the motive was to save money. These outlets are under massive attack as advertising dollars dry up. They are not getting the readership they once did.
At the same time, there is a lesson here. People really do not care who writes the story. When it comes to something like news, people want to information. By scouring the internet, most public figures have enough out there to create a story about their life.
To me, the question is not so much what is being generated, or even how. The big revelation is where people are turning. Centralized entities are now facing an onslaught of competition due to the fact that millions of options are popping up. By this I am not necessarily referring to more websites. Instead, it is a profile on X which someone uses to post the latest news.
That is where things are heading.
Multi-Media Epicenter
Web3 needs to become a multi-media epicenter. This is one of the first areas it must focus upon.
People are constantly asked what it will take to bring users to a platform like Hive. Actually, it is more important to consider what will keep them?
The answer lies simply in the fact of information. If people get what they need, they will stay. The problem is that one will not utilize the platforms if they have to run back to Twitter to get their news. When YouTube has all the video content they desire, why move to anything else? If the ecosystem is not even feeding itself, then how will others get fed?
It is why Web3 has not take off.
Tell me where we can find this:
Authorities raid two homes in search for disgraced MLB star Wander Franco after disturbing allegations
Michigan Supreme court rejects ‘insurrectionist ban’ case and keeps Trump on 2024 primary ballot
Houthi attacks and U.S. strikes add to concerns of broader conflict in the Middle East
Lee Sun-kyun: Parasite actor, 48, found dead in apparent suicide
These are headlines grabbed from a few different mainstream news sources. This information is likely all over the other social media platforms. Do we see anywhere on Web3, including Hive?
Of course, text is only one form of media. We also have video and audio. There are thousands of podcasts out there as well as millions of YouTube channels. These are all delivering information to their audiences.
The efforts by the people involved ends up benefitting themselves. Sure there are some channels that are making good money off YouTube. That said, we know the fast percentage make little to nothing. At the same time, even those getting paid, do they directly benefit (financially) when YouTube enjoys more success? How about those posting on X?
The answer is no.
Here is the opportunity for Web3, something that is being missed. So many are focused upon pulling more users, they overlook this basic fact.
We are still dependent upon Web 2.0 for the information. If you want breaking news, head over to there to find out what is going on.
The Decentralization Paradox
With the media, we have what I am calling the decentralization paradox.
There is no doubt we are seeing massive decentralization. Due to the change in distribution, the monopoly held by traditional broadcast entities was destroyed. As stated, tens of thousands of channels can be set up to do nothing more than deliver the news. This is duplicated with blogs, some of which became highly successful.
Now we are seeing massive changes in the tools available. With generative AI, we are going to see broadcast quality video done by average individuals within a couple years.
At this level, we are seeing massive decentralization. The mainstream news rooms do not control the narrative anymore. Social media is providing the tools and distribution for anyone to get a message out there.
The problem is that we end up with centralized media, once again. If all are going to X and Facebook, how is that much different than Foxnews, MSNBC, and CNN. While there decentralization from the number of content creators, the platforms people, including those in Web3, are turning to, are still centralized. We are dealing with a small handful of them.
Thus, for all the advancement, only the players controlling the distribution channel changed. People still flock to centralized entities.
Web3 holds enormous potential. The problem is few seem willing to build upon it. We see this clearly on Hive. Look at the 4 headlines posted. That took about 20 seconds to find. Yet, do we even see that basic information posted anywhere?
Why this is such a challenge is the opportunity that is being missed. Traditional media is being disrupted. Over the next 3 years, we are going to see thousands of highly successful "media" companies popping up. These might not be formal in the sense of what Tucker Carlson is doing. Instead, they will be of the Pat McAfee ilk.
His story is one of simply setting up a YouTube channel that became very popular. This was parlayed into an enormous contract from ESPN. Unfortunately, for the network, that doesn't appear to be paying off. Nevertheless, for McAfee, it was highly successful.
Web3 has to create its own programs. Individuals have to realize the opportunity and decide to build their brand on these platforms. This is the effort required, done with an eye on the future.
If Hive wants to lead the charge, it needs to become a media epicenter. That is how you draw users: become the go to source for information.
For that to happen, the information first has to be created.
Stakeholder Economy
This is all tied to something else we will delve into soon.
When it comes to a platform like X, there are a variety of stakeholders. In this instance, the users are certainly part of that. When it comes to the financial, however, that is where the number drops. Here we see only Elon Musk and his investors as the ones who get the majority of the benefit.
The same is true for Facebook and YouTube. It is the shareholders who receive the real benefit from this perspective.
Web3 is a different model. Here is where the stakeholders are able to participate on more than just a user level. It is something that moves content creation to a different level. Instead of simply seeking money from ad revenue, the value of the platform is also shared. This means those posting also could have a financial interest.
Web3 will eventually step up. This is Hive's opportunity.