Melissa Massello is the 31-year-old “Stealfinder in Chief” at Shoestringmag.com, an online magazine for people who want to live a frugal but socially responsible and healthy life. She manages a loose federation of freelance contributors, many of whom barter their services, while writing more than 5,000 words each week and also handling the business affairs of the bootstrap operation.

With 140,000 monthly visitors, Shoestring is beginning to turn the corner toward profitability. Melissa’s background is in newspaper journalism, but she has successfully navigated the transition to the online world. The work is hard and the rewards modest, but she loves her job. She shares some advice for up-and-coming young journalists.

This week’s sorry tale of a New York Times reporter being forced to resign for plagiarizing content from The Wall Street Journal, Reuters and other sources, apparently over a long period of time, raises questions about how traditional practices can survive the pressures of the online age.

Zachery Kouwe (right) walked the plank after editors at the Wall Street Journal complained that passages in a post on the Times’ DealBook blog substantially duplicated material published in the Journal a couple of hours earlier. The Times published a correction and later suspended Kouwe. He resigned on Tuesday.

In an interview with The New York Observer, Kouwe apologize for the transgression but explained that it was an honest mistake brought on by the need to respond to a rival’s story combined with the relentless pressure to produce weekly output of about 7,000 words. “I was stupid and careless and fucked up and thought it was my own stuff, or it somehow slipped in there. I think that’s what probably happened,” he said.

There’s never an excuse for plagiarism, but an understanding of the environment in which young reporters like Kouwe work can at least explain his acts, if not excuse them.

Deadlines in Minutes

It wasn’t long ago that reporters at a big paper like the Times had the luxury of turning out a story a day or even less. Print deadlines measured in hours offered an opportunity to check sources and rewrite notes in a timeframe that seems positively leisurely today. A few skilled professionals, mostly wire reporters, excelled at deadline reporting. Their expertise in synthesizing and contextualizing large amounts of information, often in chaotic environments, was the product of years of experience.

Today, everyone who writes news online is a wire service reporter. Deadlines are measured in minutes and anyone who wants to compete has to put speed at the top of the agenda. Not everyone is good at working under that kind of pressure, so it’s not surprising that the quality of deadline news reporting is becoming more erratic. Budget cuts at newspapers have also forced a lot of young, relatively unseasoned reporters to the front lines where their work nevertheless carries the moniker of a 150-year-old trusted brand. Such was clearly the case with Kouwe who, at 31, has developed his journalism skills inside the culture and pressure of the Internet.

The craft of note-taking has also changed. In today’s cut-and-paste world, journalists assemble background information from snippets published elsewhere. Notes are typed rather than hand written. In a document made up of first-person interview notes mashed together with clips from other sources, it’s not surprising that the origins of information can become confused. That’s not an excuse for shoddy note-taking, but it is an explanation for how errors can happen.

Changing Views on Copyright

The standards of intellectual property ownership that have been broadly accepted for so long are also growing fuzzier. Many bloggers don’t even post copyright information on their sites or they choose from one of an assortment of Creative Commons licenses that can themselves be confusing. The nonprofit culture of the blogosphere largely looks the other way when people lift content from each other. Many people use blogs as essentially online notepads, posting everything up to and including their shopping lists. Even if they cared about plagiarism, it’s difficult to spot violations and usually not worth the trouble of chasing the offenders. This works okay in the blogosphere because few bloggers practice their craft for money. In some cases, theft of content is actually considered a compliment to the author.

Then there are the proliferating forms that online communications take. Are Twitter messages copyrightable? If so, then isn’t the coveted retweet a form of copyright infringement? Google Voice has a feature that transcribes phone messages and makes it easy to embed those transcriptions in websites. Is that also a legal problem?

Finally, software tools now enable  someone to republish entire articles on multiple sites without even copying and pasting. Posterous is just one that makes this process automatic. A person using this feature may be violating someone else’s intellectual property without even knowing it.

This is not an excuse for Kouwe’s transgressions. A professional reporter should understand the fundamentals of the craft. However, the freewheeling nature of the democratized information landscape creates all sorts of gray areas. Journalism schools and editors need to do a better job of giving young journalist the tools to living with the growing pressures of deadlines and information overload without violating basic principles of ownership.

New Image Protection

Photographers have a particularly difficult time tracking copyright violations. Search engines don’t index images and the content embedded within tags gets lost as pictures are copied and redisplayed around the web. Watermarking affords some protection, but it also can make the image unattractive to potential publishers.

PicScout is trying to do something about this. Founded in 2002 to market an image recognition and classification technology, the company has a new platform that analyzes images and stores ownership information in a registry. That information travels with the image wherever it’s reproduced, thanks to technology that is capable of recognizing certain patterns within the bitstream. With one click, a potential user of the image can be connected to the license holder to work out terms.

License holders can upload their images to PicScout for indexing. The service then continually scans the Web looking for reuse of that content. License holders get a regular report on potential violations, along with company name and a screen capture. Users can download a free plug-in that alerts them to images that are listed in the PicScout database. The company just signed a partnership deal with PhotoShelter, a website for professional photographers and enthusiasts, that will automatically include PhotoShelter images in the PicScout registry.

Miscellany

If you think the demise of newspapers has killed good journalism, take a look at the list of the 13 winners of George Polk Awards for 2009. The awards, which have been administered by Long Island University for more than 60 years, cover a wide range of national and international accomplishments, ranging the New York Times reporter who documented his seven-month captivity by the Taliban to a ProPublica journalist who reported on the dangers of a natural gas-drilling process that yields carcinogenic byproducts. While the honorees include the usual lineup of mainstream media sources, a few surprises crept into the group this year. They include a team of Stars and Stripes reporters that unearthed a Pentagon campaign that profiled journalists in order to steer them toward positive coverage of the war in Afghanistan and a group of Bloomberg reporters who documented abuses of the government’s bank bailout program.

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The Phoenix-area East Valley Tribune just won’t die. Owner Freedom Communications filed a motion with the U.S. Bankruptcy Court this week seeking approval to sell its Phoenix-area publications — including the Tribune — to 1013 Communications LLC. The purchase price is reportedly just $2.05 million. Freedom has been in bankruptcy protection since September and has been trying to unload the Tribune for more than a year. It had earlier announced plans to shut down the paper at the end of 2009, but is keeping the lights on in hopes of finding a buyer.

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Growth of digital coupons is outpacing growth of newspaper coupons by a factor of 10 to 1, according to a company that has a stake in the digital market. Coupons.com reports that more than 45 million American consumers are now using online coupons, a nearly 20% increase from the 38 million who used them in 2008. “Of that number, nearly a third (13.1 million) don’t clip coupons from their Sunday paper, a 140% increase over 9.4 million in 2008,” said Coupons.com. If anyone can explain how the difference between 9.4 million and 13.1 million comes out to 140%, we’d like to hear it.

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Questions are already being raised about Apple’s iPad licensing terms and whether its policy of keeping subscriber data close to the vest is a deal-killer. The Financial Times reports that the generous royalty model that Apple uses with book publishers (they get to keep 70% of the take) doesn’t work so well in subscription models.  It’s particularly bad in light of Apple’s practice of gathering all subscriber information and sharing nothing with its publisher or developer partners except download and sales totals.  “Is it a dealbreaker? It’s pretty damn close,” says one senior US media executive. Here’s another opportunity for Amazon. Publishers appear to prefer the Kindle platform for a number of reasons, but Amazon’s licensing terms grant them too little of the subscription revenue. If Amazon would loosen up quickly, it could grab most-favored-reader status in this important market. So far, though, Amazon shows little inclination of changing anything.

And Finally…

“There is nothing more frustrating than having a perfect comment for a conversation the two strangers in front of you are having.”

“It’s never more important to me to look my best than when I’m gonna be around someone I can’t stand.”

“I don’t understand the purpose of the line, ‘I don’t need to drink to have fun.’ No one does. But why start a fire with flint and sticks when they’ve invented the lighter?”

Those are just three of the gems from Ruminations, a website that accepts short, funny, original observations or anecdotes and then encourages its members to vote them up or down the popularity scale.

Reading Ruminations is like listening to a nonstop Steven Wright standup routine. Many of the contributions are hilarious, but some of them make you ponder the odd, illogical and bizarre things that humans do. “How many times is it appropriate to say ‘What?’ before you just nod and smile because you still didn’t hear what they said?” asks one contributor. The site was started by author and comedian Aaron Karo (above), who has a newsletter by the same name.

During fourth-quarter earnings calls, several newspaper executives tried to put a positive spin on their financial situation, noting that the rate of decline in advertising revenues has slowed. That’s true, says Martin Langeveld, but it’s still a dismal situation overall. Langeveld totes up the numbers from the five publishers who have reported earnings so far and forecasts that the US industry as a whole will show a decline of 16% for the quarter. That’s better than the average 28% decline of the first three quarters of last year, but the overall trend is still in the wrong direction. It’s even uglier when you look at the last five years in aggregate: Total revenues for 2009 will come to about $28.4 billion, compared to $49.4 billion in the boom year of 2005. That’s a decline of 43%.

Langeveld analyzes the earnings announcement so far and finds scant reason for optimism. Publishers are talking of “stability” rather than growth, which means that their dramatic cost cuts of the last year are finally generating some profits. The good news is that this will enable them to finally pay down some of their huge debt burdens, but any growth into new areas still seems a long way off given that most publishers still derive less than 15% of their revenue from online advertising. The sole bright spot was Media General, which reported that total revenues in December “were essentially even with December 2008.” Langeveld takes that to mean that they were only down in the single digits. Still, any stability is a good thing. There’s much more on the Nieman site.

In other good business news, McClatchy’s debt ratings were upgraded by two major credit ratings agencies. While the upgrades were small, they moved McClatchy out of the “highly speculative” category. The company just concluded a sale of $875 million of senior secured notes that pays off impending loans and stretches maturities out to 2017, giving it some breathing room.

Things are getting worse at the Boston Globe, though. The newspaper, which failed to sell for a reported asking price of $25 million last year, suffered a 20.3% drop in advertising revenues in the fourth quarter. Full-year revenue was down nearly 16%. The only glimmer of good news was an increase in circulation revenue, but the Globe, which has been frantically slashing costs since its near-death experience a year ago, continues to sink while it’s much smaller crosstown rival, the Herald, is reportedly earning a small profit.

Optimize Socially

“The old gatekeepers are disappearing. We’ve become our own and one another’s editors.” That’s one of the gems from Ken Doctor’s post this week on Nieman Journalism Lab in which he weighs in on Google Buzz and the rapid socialization of the Web. Noting that the bit.ly URL shortening service, which is one of about a dozen on the Internet, is now processing about 2 billion link referrals a month, Doctor suggests that news organizations must tap into the link-sharing patterns of social networks to identify new readers. “Are Facebook users of a certain kind more likely to convert to become regular users of NYTimes.com (or Dallasnews.com or VoiceofSanDiego.org) than Twitter users?” he asks, citing one example.

It’s an excellent point. Social network practitioners who frequently refer their friends and followers to content from the same source should, in theory, be more likely to become paying subscribers to that source. The tricky part is how to find these people. Amid the deafening social cacophony of the Internet, pinpointing fans can make the task of searching for a needle in a haystack look trivial.

Doctor cites an emerging discipline called “social media optimization,” that is about making content more appealing to people who like to share. This goes beyond packaging or optimizing headlines for search; it’s also about making stuff easily shareable and getting the content producers embedded into the networks that grow around their products.

The Death Watch on Facebook

Our day job is helping businesses understand and adapt to the social Web, so it seems only natural that the Death Watch should go up on Facebook. Well, here we are. We’ll use this platform to point to the many stories we read but don’t get  a chance to summarize in our occasional blog entries. We’ll also post some discussion topics and would like to hear your comments on the choices we make. Fan us! It’s hot in here.

Miscellany

Gerald Posner resigned from the Daily Beast this week amid a swirl of charges of serial plagiarism. In a post on his blog, Posner admitted that he had copied material from the Miami Herald, among other sources, but insisted that the plagiarism was inadvertent. Posner’s shame highlights a risk of the copy-and-paste nature of Web publishing, in which original information quickly becomes intermingled with notes lifted from other sources. While that’s not an excuse, it’s an explanation of how the need for speed, combined with the portability of printed words, can be a recipe for disaster. When in doubt, select the text and copy it into Google. You’ll quickly see if you’ve violated someone else’s property.

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The Berkeley Daily Planet, which isn’t daily, will cease print publication and go online only, although the owners held out the possibility of a return to the newsstands. Distribution was only one of several problems the paper faced. The city of San Francisco’s recent ban on freestanding newspaper stands hurt distribution, and the Daily Planet’s often critical reporting on local businesses didn’t help with advertising sales. The newspaper also suffered from a campaign by a group of East Bay Zionists to dissuade businesses from advertising because of editorials that criticized Israel’s treatment of Palestinians.

And Finally…

Two amusing closing items today:

The funny folks at 10,000 Words are back with their collection of Valentines for journalists. Although vaguely suggestive, they’re mostly G-rated and should be good for a laugh if your beloved happens to end his or her love letters with “-30-.”

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It was 113 years ago yesterday that the phrase “All the News That’s Fit to Print” first appeared on the front page of The New York Times. The phrase was actually being used in marketing and advertising prior to that date and had assumed a modest place on the Times’ editorial page, but it was a slogan contest organized in late 1896 by publisher Adolph Ochs that catapulted the now-famous slogan to the banner. W. Joseph Campbell, whose 2006 book entitled The Year That Defined American Journalism documented the momentous events of 1897, recounts some of the entries that didn’t win the contest and its $100 prize.  They include:

• Always decent; never dull;
• The news of the day; not the rubbish;
• A decent newspaper for decent people;
• All the world’s news, but not a school for scandal.

We think Ochs made a good choice, though his choice of words probably didn’t anticipate the Internet.

Following up on today’s earlier post about the changing job environment…

Yesterday I visited with a journalism class at a major university. This institution’s journalism program is considered one of the finest in the country and its faculty boasts notable veterans of the newspaper and broadcast field. I spoke to a small class for about 90 minutes, devoting the first hour of that time to a discourse on the state of the US media: Why it’s in a predicament, how the story is likely to play out and what it all means for aspiring journalists. The rest of the time was discussion.

My material wasn’t the type of stuff these students are used to hearing, judging by their reactions. About 2/3 of my talk was about economics and business. Among the topics I addressed were:

• How advertising efficiency is devastating the media economic models that are based on the inherent inefficiency of mass-market advertising;
• The irony that newspaper readership is at an all-time high even as the industry craters;
• How the efficiency of online publishing permits new media organizations to operate much more cheaply than their predecessors;
• Why the 57-year-old average daily newspaper reader is an undesirable target for advertisers;
• Why advertising costs will continue to go down and why this is a problem for traditional media;
• Why Craigslist has devastated newspapers’ most profitable revenue source;
• How the need to sustain high circulation levels has made newspaper editorial content bland, inoffensive and, ultimately, vulnerable to competition.

The students were aware that they’re stepping into an uncertain world but they didn’t seem to grasp the finer points of the media business. Looking at the journalism department’s website later, I could see why. The curriculum lists 29 courses in the journalism program, and not a single one is about the economics of publishing or how to sustain a career as a journalist.

This university is failing its students. I suspect that so are a lot of others.

Learning a Trade

Journalism schools are essentially trade schools. When I was going through a J-school program in the late 1970s, everything was focused on getting the students out into the working world with the skills and savvy needed to get to the top. Judging by my recent experiences with journalism schools, the same career path that was advised 30 years ago is still being recommended today. This begins with a low-paying job at a small daily and proceeds through a series of staff positions at increasingly larger publications. The Holy Grail is to land a job on the staff of The New York Times, which itself has laid off 200 journalists in the last year.

This career path isn’t going to work in the future. Newsroom staffing levels today are 55% of what they were eight years ago. While elimination of high-paying jobs has created some entry-level opportunities, the path for career journalists will increasingly be up and out into the freelance world where they will have to compete on speed, agility and business skills.

The business side of the equation is where the greatest disconnect occurs. Journalism schools mostly disdain the moneymaking side of the house. Students are taught that revenue is somebody else’s job; they are in the position of delivering information. In fact, the ad sales department is often portrayed as a den of evil, full of conniving capitalists who only want to bastardize the product journalists so lovingly nurture.

The failure of the economic model is the reason most news organizations are in such trouble today. Journalists are mostly unprepared to help. The church-state separation that is intrinsic to the culture of newsrooms prevents them from understanding why the business is in trouble. Most journalists I have met still show alarming ignorance of the business that pays their salaries.

I’ve written before about the need for young journalists to develop entrepreneurial skills. This doesn’t necessarily mean going door-to-door selling ads, but it does mean understanding how advertising works, how audiences can be monetized and how diversified revenue streams can build a sustainable income. These topics are distasteful to veteran journalists, who have never had to worry about such things. Unfortunately, they’re very relevant to the students they teach.

Journalism schools need to become small business foundries if they are to continue in their mission of preparing students for the real world. Unfortunately, most of them change slowly, and the rapid decline of media institutions has caught them flat-footed. They need to move quickly to adjust their curricula in order to avoid sending their students unprepared into the tumultuous job market that awaits them.

Alan Mutter is stirring things up again with a spreadsheet that journalists can use to value their work. His thinking: Stop debasing yourself by working for peanuts. Figure out what your time is worth and charge accordingly.

With his characteristic eye for detail, Mutter figures such factors as the self-employment tax and capital expenses in his calculations. The sample shows a fictional reporter charging about 55 cents a word to cover his/her fully loaded costs figuring an average pay rate of about $30/hour, which is union scale in Pittsburgh. Your mileage may vary, of course.

If journalists “don’t put a value on what they do, then no one else will, either,” Mutter declares, noting that media organizations are using the explosion of blogs and citizen media operations to “pick off writers, photographers and videographers on the cheap.”

We have enormous respect for Alan Mutter, but we find ourselves in complete disagreement on this one. In our view, journalists who draw lines in the sand and start charging only what they think they’re worth will find themselves practicing a lot less journalism.

Are media organizations taking advantage of plummeting freelance rates? You betcha. Is what they’re doing wrong? We don’t think so. Supply and demand is the underpinning of a capitalist economy, and if the rules have changed in a way that devalues quality journalism, well, those are the cards we’re dealt. It sucks, but it’s how the system works.

Journalists can try to charge what they think they’re worth, but they’ll ultimately live or die by what the market is willing to pay. With the arrival of Web 2.0-style publishing, millions of people have started playing at journalism and it turns out some aren’t half bad at it. The trouble is that many of these casual journalists don’t make a living as reporters. Their journalism is a sidelight to their day jobs. They may be happy to work for a vague reward defined as “exposure” if it pays off in speaking jobs, consulting work or book contracts.

Mutter is outraged that people contact him asking “to commission an article or reprint a post in exchange for the ephemeral compensation known as ‘exposure,’” but the reality of the market is that a lot of people are willing to work for that (full disclosure: we recently approached Mutter about contributing to a for-profit website in exchange for a modest fee; he politely declined). For example, many book authors write extensively about their expertise for free in exchange for exposure in major publications.

We sympathize with journalists who have seen the market value of their work collapse over the last couple of years. We’ve experienced some of that pain personally and we have many friends and colleagues who are suffering because of it. However, the market has spoken, and the solution to collapsing fees isn’t to insist on getting a rate that employers will no longer pay.

Is there a solution? Well, journalists who specialize in everything from geography to gastroenterology can still command higher prices than general assignment reporters. Also, a lot of journalists work for commercial clients on the side so that they can afford to practice their craft. There’s money in speaking, consulting, writing books and corporate ghost-writing. Some of that work may be distasteful, but at least it pays the bills.

That doesn’t solve the problem of who is going to embed in Iraq for six months at 25 cents a word. That’s a much tougher issue and we wish we had better ideas how to solve it. But drawing lines in the sand is career suicide.

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Indianapolis-based freelance journalist Christopher Lloyd sees things our way. He’s passionate about movies and has contributed free movie reviews to some area newspapers since being laid off by the Indianapolis Star. “I knew I wasn’t going to drop my passion for film criticism. If I was going to do it, I might as well have it published,” he writes. Plus, movie studios won’t pay attention to a journalist whose work isn’t being read by anyone. He’s still plugging away and some of his clients are now paying a modest fee. He’s also got a site for film buffs called The Film Yap, where contributors work for, you guessed it…

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Speaking of careers, a university professor has analyzed six months worth of recent job postings and discovered that traditional and non-traditional news outlets differ in their criteria for hiring journalists. Dr. Serena Carpenter, an assistant professor in the Walter Cronkite School of Journalism and Mass Communication at Arizona State University, looked at 664 online media job postings and concluded that established media organizations such as newspapers tended to favor candidates with solid writing and reporting skills while new media operations looked favorably on what she calls “adaptive expertise.” That includes broad-based experience and creative thinking.

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Seth Lewis, a former Miami Herald editor and Ph.D student at the University of Texas, has joined the Nieman Journalism Lab as a contributor (paid?) specializing in journalism education and he’d like to know your ideas for what J-schools should teach. Perhaps stealing a line from the research noted above, Lewis is inclined to recommend a focus on adaptability. He defines that as the skills “to work in unpredictable settings, to generate their own funding as needed, and otherwise learn as they go.” In the process of interviewing for a faculty position at various academic institutions, Lewis says he was often asked what journalism schools should teach, which indicates that the profs at those schools are perplexed as well. Maybe you can provide him with some guidance.

Miscellany

Opponents of government subsidies for media organizations overlook an important detail: US media has been subsidized for 200 years, reports The New York Times. Citing a report released last week by the Annenberg School at the University of Southern California, the Times notes that government support of newspapers has actually been declining in recent years as mailing discounts have diminished laws requiring businesses to buy newspaper ads for certain kinds of legal notices have been dropped. In fact, the study’s authors estimate that annual government support has declined from more than $4 billion in 1970 to less than $2 billion today.

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News organizations are starting to figure out how to monetize social networks. The Austin American-Statesman is charging for tweets and actually booking revenue. Local businesses can buy two tweets per day of up to 124 characters (to allow for retweets). The messages are labeled as ads and must prompt the reader to take action. Huffington Post is experimenting with the same idea. The New York Times is also selling packages of ads against visitors to its Facebook site. Nobody’s making much money at this yet, though.

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Gannett executives demonstrated a rarely-seen attitude during this week’s earnings call: Optimism. “”We are very excited by what we are seeing,” said CEO Craig Dubow. Circulation is beginning to recover and profitability is returning to the income statement, enabling Gannett to pay down some of its debt. Profitability was still driven more by cost-cutting than by revenue growth, however. Classified revenues were down nearly 22% in the quarter and digital revenues fell 7.2% due largely to the dismal picture state of employment advertising. More coverage.

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Newspaper readership continues at record levels when you factor in online traffic, according to the latest results from Nielsen Online and the Newspaper Association of America (NAA). More than 72 million people — about one quarter of all Internet users, according to the NAA — visited a newspaper site in the fourth quarter, racking up 3.2 billion monthly page views. The NAA declined to provide year-to-year comparisons, citing a change in Nielsen’s measurement technique.