About Frédéric Filloux

http://

Posts by Frédéric Filloux:

Magazines — The Economist’s contrarians approach to readers

On the US market, The Economist is quietly eyeing the one million mark in copy sales. it did it by targeting smart people, says MarketWatch media columnist Jon Friedman. > read of MarketWatch
> If you want a good insight on the Economist, watch this 2007 video interview of John Micklethwait made available by Stanford University’s Hoover Institution. Here (it’s a 45′ segment).
> And I you want more, read his profile in the Independent

Finance — Behind the subprime crisis : an equation that went wrong

The subprime crisis and the subsequent cascading effect to other credit instruments could have one single origin: the total failure of the portfolio insurance system and the underlying mathematical model that powered it, The Black-Scholes equation. To make it short (so to speak), the model applied to a portfolio of any kind of securities, was supposed to limit the effect of a market drop through the use of options. Except that, when the real crash arises, the model no longer works and it added fuel to the panic it was supposed to prevent. In this excellent piece of explanatory journalism, Michael Lewis (well know author of The New New-thing or Poker’s Liar), details the black-hole equation. The short version: the Black-Scholes formula relies wrongly on the past volatility to predict the future. It only works when things are stable…
> story in Porfolio

Al Pacino: “Are you a newsman or a businessman?”

Surfing the web late at night, I dug up this great excerpt rom the movie The Insider : Al Pacino, playing the role of 60 Minutes producer Lowell Bergman in the Michael Mann’s film The Insider. If you are amenable to the journalistic mystique, watch these four minutes of a well-cut tirade. And if you have more time, read the fantastic 1993 piece in Vanity Fair about the tobacco scandal of Brown & Williamson. It still remains a a journalitic landmark.

Infrastructure — The thick computer cloud

For each watt consumed in data processing (a search on the net for instance), another half watt is required for cooling the microprocessors. That explains Google’s race for cheap electricity. In 2006, American data centers used more power than televisions sets. Energy supply is so critical for the data processing industry that Microsoft will build its next unit in Siberia.
> story about Google in Harper’s
> and about Microsoft’s Siberia project, in Kommersant

The anachronic survival of Monocle

The survival of the monthly Monocle is a kind of anachronism in the current digital frenzy. Tyler Brûlé, creator of Wallpaper magazine, launched Monocle just a year ago. Brûlé, is a kind of modern global dandy, splitting his sophisticated life between London, Stockholm and Zurich. In the magazine world Monocle is a kind of UFO, with conceptual photos, detailed stories about tourism in Greenland, the new economics of Zimbabwe or innovative infrastructure in modern cities. Nobody was ready to bet an euro on this venture. One year after, it’s still alive. And that’s good news.
> story in the Independent
> the Monocle strange website{

Marc Andreessen’s NY Times Deathwatch

The following has to be seen, not as a particularly acute media analysis, but as an interesting barometer of the perception of the press by the digerati. In that instance, Marc Andreesen, co-founder of Netscape with Jim Clark, remains quite a voice. And it was noteworthy when he said : “…I hereby inaugurate my New York Times Deathwatch, which will continue until the last Sulzberger [family who owns the Times] has left the building”. Asked by Fortune Magazine what he would do if he were running the Times, “Easy, Andreesen said. Kill the print product immediately, and deliver the base line, for news online. (…) Take acute pain in order to avoid years of chronic pain”.
> read this opinion on Marc Andressen’s blog

Emerging economies — In Baltic States, foreigners import their ethics

This is an unexpected consequence of globalization: foreign investments in media companies have positive impact on their ethics. Take two of the Baltic States: Lithuania and Estonia. Two young democracies, two palpable desires for freedom. A visit of newsrooms in Vilnius and Tallinn shows the same demographics: the average journalist there is at least 10 years younger than in France or UK. As the (27 years-old) foreign editor of the main Estonian paper Postimees puts it : “…in this country, there is no such thing as old journalists”. In the two countries, senior journalists from the Soviet era have since been diluted in politics or public relations, clearing the stage for hungry young journalists.

Then come the differences. In Lithuania, the press remains largely owned by local investors. The result is a great coziness with the new power, once the enthusiasm of the immediate post-communist era has faded. Several local editors explained to me that to get a positive story printed about your business — or to get a negative one about a rival — you just have to pay. This doesn’t go as far as Russia, where, until a few years ago, the website Komsomolskaya’s Pravda (formerly dedicated to the Young Communists) had a price list for customized journalism.

Estonia is different. For cultural as well as geographical reasons, the country has always been under greater western influence. When its independence was re-declared in 1991, the new elite of the country welcomed foreign investors such as the Norwegian group Schibsted (1) and the Swedish Bonnier, which in the same stroke, imported their journalistic practices and ethics.

One weird thing, though. In a booming country like Estonia, you would have thought that a large number of well-educated young people would embrace ja ournalistic carrier. That’s not happening. I was told by the editor-in-chief of Postimeees, that among few dozens of last year’s graduates in communication from Tartu University, only one chose journalism. Amazingly enough, the shortage of journalistic talents could lessen the development of the press a young democracy like Estonia should be entitled to.

(1) Schibsted is the majority shareholder in the Eesti Media Group in Estonia. This group of companies publishes Estonia’s two largest newspapers, Postimees and SL Ohtuleht, as well as several local newspapers, and owns 50% of the Estonian Magasin Group, which publishes a number of magazines. Schibsted controls also two newspapers in Lithuania, LT and 15 minutes.

The booming E-Stonia

This 1.4m people Baltic state is actually one of the most wired countries in the world. Online banking, penetration of news websites like Postimees, uses of cell phone to pay for parking spaces, free wi-fi everywhere, the infrastructure is amazing. This makes also the country vulnerable to attack. In April 2007, when the country decided to distant itself further from Russia, riots triggered by Russian nationalists erupted. In retaliation, Russian hackers launched one of the most severe cyber attack suffered by any sovereign states.
> Wired magazine published an excellent account of the incident
> Speaking of hackers, read this story in ArsTechnica about the strong demand for multilingual hackers