The New Counterculture

Welcome back to The Honest Broker interview series —also available on our new YouTube channel. You can also find it on Apple Podcasts and other podcasting platforms.Today, I’m pleased to share my conversation with Ted Gioia. Please support The Honest Broker by taking out a premium subscription (just $6 per month).Ted needs no introduction here—The Honest Broker is his newsletter, after all. But I want to tell you a little bit about how Ted and I started this project. I received a message on Substack last year, and when I saw it was from Ted, I assumed it was fake. But it turns out it was real, and Ted asked me if I wanted to get lunch. After talking for a few hours about books, Substack, and new media, Ted asked if I wanted to launch a podcast on The Honest Broker. His only rule: I needed to find the most interesting people as guests. Well, this meant that eventually I had to interview Ted. We sat down to talk about media consolidation, building alternative institutions, and human creativity. Below is a transcript of part of our conversation. For the full interview, check out the video at the top of the page.I know you’ll enjoy this.A CONVERSATION WITH TED GIOIAJARED: Ted Gioia, thank you for joining me.TED: Well, thank you for having me. This is something we’ve long awaited.JARED: I want to start off with a big question. I think it’s fair to say that we’re living in a time of it institutional collapse. We had these prestige institutions that we used to rely on: The New York Times, The New Yorker, academia. And people could rely on them to vet new writers, vet ideas, and movements, and they just did a lot of credibility building for us. It took a lot of the work out of our hands. I think we just don’t have that same trust in those institutions anymore, and people don’t rely on them in the same way anymore. And things are increasingly more decentralized. Now, part of me finds this really exciting because it means for people who operate outside of those systems—I think you and I would be two examples—it means there’s more opportunity. But it also raises the question of whether or not we need to start building new institutions.TED: Well, there’s been a great promise that the internet would open up everything to us. All of a sudden, if I’m a writer, a musician, a visual artist, a videographer, all of a sudden, I could reach my audience directly with the internet. And we thought this was going to lead to an enormous blossoming of culture where everyone had this freedom and a thousand flowers blossomed. But that hasn’t happened, really. And in fact, what you see is that the institutions have become more consolidated and stagnant over time. Let me give you a few figures. Right now, most of the movies made come out of four Hollywood studios. They control it. Most of the movie distribution into the home comes from just four streaming platforms. In fact, in many instances, it’s the same company doing the movie-making as the streaming. That was illegal until very recently. In 1948, the Supreme Court said that a movie studio could not own distribution. And that allowed a lot of freedom. After that, there was a real flourishing of indie movies in the United States and overseas. But now we’ve stagnated to the point where there are just four streaming platforms, four movie studios. In music, it’s even worse. There are just three companies that control most of the hit songs. If you look at publishing, five companies control 80% of the books out there. It’s just ridiculous. As these industries become more consolidated, they become more bureaucratic, they move more slowly, they’re more cautious. Yet we’re more dependent on them than ever before. Now, we’re lucky that we still have an opportunity with a counterculture—and I’ll talk about that later. But I think the first thing you see is that the institutions have killed themselves by this consolidation, swallowing up their competitors, and creating this monolithic culture that’s not good for anybody.JARED: And I think it creates a winner-takes-all mentality, where before you could have movies that did well, but they kind of fall within the middle of a normal distribution. And then you’d have some outliers that did really well, and then you’d have some that bombed. And I think that as things have become more decentralized, you have many more flops. They never get off the ground, or they can’t even get funding to begin with. And then you have these big winners that take everything and maybe that that group has grown a little bit, and then it’s the middle of the culture that s