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 GIOIA JARED: 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 seems like it’s been hurt the most by this.I mean the band that sells well but isn’t going to go platinum. The writer who is a solid mid-lister but may never make the Times list. Someone who could make a living writing for magazines but couldn’t necessarily get 100,000 readers on their own newsletter. And that just seems like a less interesting culture because it doesn’t give that kind of room for experimentation or just that kind of pluralistic flourishing that would allow people to just have interesting ideas. TED: I lived through much of the transition. I started out life writing books, and I was what they would call a midlist writer. That meant I wasn’t going to sell a million copies. I wasn’t going to be at the top of the New York Times bestseller list, but I would sell enough copies to be profitable. And so my first two books, you know, the expectation was I would sell 5,000 to 10,000 copies, and that would be fine. My third book really broke out and then it sold hundreds of thousands of copies. But today I wouldn’t even get a chance to get to that third book because from the get-go now they don’t want to publish a book that doesn’t have the potential to do 50,000 to 100,000 right off the bat. This presents a tremendous obstacle to young writers and they don’t have a solution It’s even worse in movies where the studios don’t want a movie that would be profitable but not have that blockbuster aspect to it—they want a movie that could have a billion dollars in revenue. If you go look at the best movies in the history of Hollywood, very few of them had those blockbuster numbers. But where would we be without the Citizen Kanes of this world and the smart indie films that are being squeezed out? JARED: There used to be this saying in publishing that the best advertising for your first book was your second book. So it was thought, okay, your first book didn’t sell that well, but you get a second book. Maybe it’ll pick up eventually. If your third or fourth book sells fabulously well, people will say, " What else has this guy written?” I bet your first book, after it sold a few thousand copies, sold a lot more after your third book sold 100,000 copies. TED: You’re exactly right. The first book I wrote is called The Imperfect Art. I started writing that the day I got out of the philosophy program at Oxford. Eventually, it was very successful, but at first, no one wanted to touch this. I had a prominent agent say, "This is not a real jazz book.” You should be a real music writer, not one of these phony music writers. But I did get it published. It sold a few thousand copies. But now, let’s fast-forward to 40 years later. I’ve gotten two translation deals for that book in the last 12 months. And the only reason that happens is that I used that as a stepping stone. It’s one of the reasons I like Manfred Eicher at the ECM label. He has artists on that roster that he’s recorded for 30 or 40 years and have never had a hit record. But he believes in them. This is part of why his audience trusts the label, because they see his personal loyalty to what he believes in. We need more of that. But in fact, we get less of it. The loyalty factor is gone. It’s very hard now to find a publisher or a record label that will be loyal to you for more than one project. JARED: And it seems like consumers have changed their mindset in response to this. There were times in high school that if a new band came out from a label that I liked, I bought the CD. And even if I hadn’t heard it, because I’d say, I trust this label. I like what they do. I’ll keep buying it. And people used to think about publishers like this too. Knopf used to run ads for Knopf, not just for their books. They would say, if you have the borzoi on the book, it’s a book worth buying. But Consumers don’t think about it like that anymore. Maybe they do in some parts of music, but do they do that with any of the big five in publishing? TED: Well, they do it in the indie world, and we need to talk about that because in the indie world, you do have loyalty to a specific person, a specific name, a specific creative umbrella. But for example, in music, how can you? Is there anybody at Universal Music or Spotify who we might say is a person whose judgment I trust? No—and if you look at the interviews with them, once again, they just talk about financial metrics. The whole corruption of aesthetic language is the application of financial jargon to artistic creativity. This is why instead of calling a work of art by its real name, we call it content. This is why we call a movie a brand franchise. This is why the head of the big AI music company talks about the productivity of being able to release 100 tracks in a week. These are all words—this jargon, this terminology—that come from the business world. It has no place in the creative world. But it’s become so pervasive that even artists begin to talk about their own work as content. This is something that is only happening because we have replaced a tradition where you have a person who has values and applies those values. We’ve replaced that with a business/finance optimization mindset across the creative economy. “You’re going to start having private equity roll-ups on Su