Felix Salmon

You won’t have broadband competition without regulation

By Felix Salmon
February 21, 2014

Tyler Cowen isn’t worried about the cable companies’ broadband monopoly. His argument, in a nutshell: if you can’t afford broadband, that’s not the end of the world: you can always go to the public library, or order DVDs by mail from Netflix. And if the cable companies’ broadband price is very high, then that just increases the amount of money that alternative broadband providers can potentially make in this “extremely dynamic market sector”. Indeed, he says, if regulators were to force cable companies to decrease their prices, then that would only serve to decrease the amount of money that a competitor could make, and thereby lengthen the amount of time it will take “to reach a more competitive equilibrium”.

Why BBVA is good for Simple

By Felix Salmon
February 20, 2014

Simple began in July 2009, but it took three years before it was ready to actually start sending its debit cards out to members of the public. And now, after just 18 months as a scrappy independent financial-services provider, it’s being bought, for $117 million, by Spanish banking giant BBVA.

Facebook’s horrible, stroke-of-genius IPO

By Felix Salmon
February 20, 2014

Two years ago, before Facebook went public, I wrote a feature for Wired with the title “For High Tech Companies, Going Public Sucks”. It was illustrated with this Mark Zuckerberg sadface:

Elliott vs Argentina: 3 possible resolutions

By Felix Salmon
February 19, 2014

Argentina, as everybody knew it would, has gone to the Supreme Court to appeal the bad (and ignoble) ruling against the country by New York’s Second Circuit. The most likely final outcome, still, is that Argentina will default, for the reasons (but not with the timing) I gave last year. But, with this petition, Argentina now has three possible outs.

Is there opportunity in art history?

By Felix Salmon
February 18, 2014

Last month, at an appearance in Wisconsin, Barack Obama made a mild dig at art history graduates like myself. “A lot of young people no longer see the trades and skilled manufacturing as a viable career,” he said, “but I promise you, folks can make a lot more potentially with skilled manufacturing or the trades than they might with an art history degree.”

Monopolizing bandwidth

By Felix Salmon
February 17, 2014

Paul Krugman makes a simple but powerful point about Comcast’s acquisition of Time Warner Cable:

How should John Arnold approach pension reform?

By Felix Salmon
February 16, 2014

The other shoe has dropped in the case of the $3.5 million which the Laura and John Arnold Foundation donated to a PBS series on “pensions in peril”. The recipient of the money, New York PBS affiliate WNET, has given it back. Understanding what’s really going on here, however, isn’t easy, so bear with me on this one.

Pension politics

By Felix Salmon
February 13, 2014

David Sirota has a very important scoop today: the PBS series “Pension Peril” has secretly* been funded by John Arnold, a billionaire powerbroker with an aggressively anti-pensions political agenda. This looks very bad for PBS — but it’s also bad for Arnold, who generally gets glowing press, and who would seem to have no good reason to have insisted on secrecy when writing the $3.5 million check that made the series possible.

Content economics, part 5: news

By Felix Salmon
February 11, 2014

Have you heard the news? Janet’s pregnant!

There’s a reason that the first thing you see when you log in to Facebook — the product around which everything else on Facebook revolves — is called the News Feed. And yet, only a relatively small proportion of what you see in your News Feed can really be considered journalism.