Intelligent Investor

Alan Jones: it's about disintermediation

Alan Jones and 2GB have just discovered then when the online masses are revolted, advertisers will act quickly and decisively. Old media of radio, meet new media.
By · 8 Oct 2012
By ·
8 Oct 2012
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Corporate leaders everywhere would be watching the predicament of Russell Tate and Robert Loewenthal, chairman and CEO of Macquarie Radio Network, with a mixture of fascination and horror.

A social media campaign against one their products, the Alan Jones breakfast programme, and directed at their business customers as well as their own company, has forced them to cancel all advertising on that show.

For those who have recently flown in from Mars, it started with a speech by broadcaster Alan Jones to the Sydney University Liberal Club dinner on September 22nd, eventually reported in the Sunday Telegraph, in which he said: "They [Labor] are indeterminate and compulsive liars. They'll lie and lie and lie. Every person in the caucus of the Labor party knows that Julia Gillard is a liar. Everybody, I'll come to that in a moment. The old man recently died a few weeks ago of shame. To think that he had a daughter who told lies every time she stood for parliament.”

The suggestion that John Gillard died of shame has been widely and appropriately condemned, and Jones himself called a press conference last week to (sort of) apologise. Meanwhile 70 companies withdrew their advertising from his programme, either because they didn't like what he said or because their social media monitoring services had picked up that their own customers didn't like it.

Yesterday Russell Tate issued a long statement in which he announced the temporary suspension of all advertising in its Breakfast Show, blaming "21st century censorship, via cyber bullying”.

Also, the MC for the evening on September 22nd, Simon Berger lost his job as public relations and government relations manager at Woolworths, having apparently worn a chaff bag onstage to introduce Alan Jones (a reference to Jones' frequent calls for Julia Gillard to be put in a chaff bag and thrown out to sea).

The "Sack Alan Jones” Facebook page has 15,486 "likes”, which doesn't seem that many to have caused such carnage, but there has been a lot more to it than that.

There's a petition on change.org with 109,962 signatories, another Facebook community called "Destroy The Joint”, after a statement by Alan Jones that women are "destroying the joint”, plus an uncountable number of tweets and hashtags on Twitter.

Russell Tate was both right and wrong in the statement that I quoted above: it is, indeed, 21st century censorship, but to call it bullying misses the point.

The digital revolution is only just getting going, and the social platforms, Twitter and Facebook, which has just passed a billion users, are only just starting to flex their muscle. There is a long way to go with this. Censorship up to the end of the 20th century involved community representatives – the church and then politicians – imposing limits on free speech. With social media, the community does it more directly and much more uncontrollably.

As Tate said in his statement: "The difference between 2GB and some catchy URL is that MRN (Macquarie Radio Network) operates in a regulated media environment.”

The essence of change that occurred between the 20th and 21st centuries is disintermediation. It is happening much more broadly than in censorship, but in that field of human endeavour, as it is everywhere, social media and the digital revolution generally, is simply and powerfully removing the intermediaries.

The organisation and expression of community disapproval has become incredibly powerful because it is spontaneous, immediate and clearly authentic.

That's the difference between a social media campaign and a rap on the knuckles by the Australian Communication and Media Authority, the media regulator: you can argue about whether ACMA truly represents community opinion; with Facebook and Twitter you can actually see and feel it.

Another Great Moment in Disintermediation happened over the weekend in the United States when a debate between Bill O'Reilly of the Fox Network and Jon Stewart of The Daily Show was "live streamed” over the internet for $5 per viewing.

The organiser's servers crashed because of the demand. And where did frustrated viewers vent their anger? On Facebook and Twitter of course.

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