Analysts are digging into the new owners of the San Diego Union-Tribune and trying to discern the investment firm’s intentions.

Tom Gores (San Diego U-T photo)

Sign-on San Diego fills in some of the information void surrounding Platinum Equity, the purchase of the site’s parent. Despite its low public profile, the company is actually the 19^th largest private employer in the US, according to a Forbes estimate. Its founder, Tom Gores (right), has been listed by Forbes as the 163rd-richest American, with a net worth of $2.5 billion. It raised $2.75 billion last year – which was quite a feat in this economy – for its investment activities. The U-T is the first newspaper the company has owned but it may not be the last. There have been media reports that the principals are also looking at the Austin American-Statesman. Most importantly for U-T employees, the story quotes Platinum principal Mark Barnhill saying Platinum isn’t in the game for a quick flip. “We don’t worry about exits,” Barnhill says. “We worry about getting in on the entry side and running businesses effectively.”

Ken Doctor isn’t so sure. In his view, the deal may be all about the real estate. Citing sources who say Platinum paid no more than $50 million for the U-T, whose value once exceeded a half billion dollars, Doctor says the value of the land alone could be north of $100 million. “We may have entered a new rocky period for newspaper companies,” he writes. “The real estate on which they sit determines their market value.” Doctor notes that the biggest buyout in the history of the industry – the acquisition of Tribune Co. in 2007 – was carried out by a real estate tycoon. And property is part of the value that investors are scrutinizing carefully in Miami and Maine.

Writing on Paid Content, Doctor observes that Platinum Equity specializes in high-tech companies, so what’s it doing with a newspaper? The strategic adviser the partners are bringing in – David Black – has done nothing of note with the Akron Beacon-Journal that he took over in 2006. “The Black ownership has been unremarkable,” Doctor writes. So what did Platinum buy? Property “That real estate under its building…may be a real motivator for the purchase,” he concludes.

Incidentally, Ken Doctor has an interview with Michelle Nicolosi, who’s the editor in charge of turning SeattlePI.com into a true Web publisher. She’s trying to boost the idea of aggregation and local focus, but Doctor points out that links to direct competitors are pretty thin in the first week. The collection of 150 reader blogs is impressive, though.

Power in the Mid-Market

The Deal Journal blog at WSJ.com has an intriguing interview with Jonathan Knee, an investment banker who specializes in the media industry and who advised on the U-T buy. He has some intriguing insights that go well beyond the “industry is dying” conventional wisdom. Working from the premise that “within the pantheon of media sectors, the newspaper business is actually still one of the better ones,” Knee argues that the bloated cost structures that newspapers developed during times of plenty actually make them good candidates to endure the cost cuts they’re having to make right now, simply because there’s so much excess to cut. Furthermore, he argues, mid-market dailies are actually in a great position to harvest their monopoly positions and remain profitable for some time to come.

The secret: outsource whatever isn’t necessary to serve your local community. Then serve that local community very well. Don’t try to be bigger than what you are. Those boring local markets will “continue to generate…better profits than the supersexy businesses in the media industry asking for government or nonprofit help like movies and music.” Considering that small-market dailies have been considered the most at-risk properties in the business, Knee’s counter-intuitive views are worth reading.

Happy Birthday to Us

Today is Newspaper Death Watch’s second birthday (you can read our modest first entry here) and it’s been quite a ride. We started out by documenting the downsizing that was just beginning to occur in the business two years ago but quickly found ourselves engaged in more interesting issues like the future of news. Since 3/23/07 we’ve logged 382 entries and 528 comments, many from journalists who are being caught up in the cost-cutting. Last week we averaged over 2,000 daily page views and Technorati has us in the top 12,000 blogs worldwide. We’ve been profiled in Spain’s largest newspaper, interviewed on NPR,  traded views with Guardian Angels founder Curtis Sliwa on talk radio, and sourced on local TV in Sacramento.  We were also just interviewed by CNN.com for an upcoming feature on the transformation in the newspaper industry.

Two years ago, we published a book called The New Influencers that argued that the ability of individuals to publish to a global audience would disrupt the economics of media and transform our institutions. Since then, we’ve been living that idea.

Layoff Log

• Collateral damage: the Denver Newspaper Agency, which handled business operations for both the Post and the Rocky Mountain News, will idle 200 people as a result of the Rocky‘s closure. The news account says that’s 17% of the agency’s 850-person staff, but our calculator says it’s really 23%. The jobs aren’t needed any more without a paper to support.
• I turns out he Buffalo News won’t be laying off “dozens of employees” as ws feared a week ago. A deal with the Newspaper Guild succeeds in achieving targeted cuts of $2.9 million through a combination of wage reductions and givebacks. Still, nine people will lose their jobs.
• The Orange County Register had six rounds of layoffs last year and is promising more soon. No details on how many jobs will be lost.
• The Dayton Daily News cut 10 sales staff.
• The Skagit (Wash.) Valley Herald has laid off four people, including the editor-in-chief.
• The News-Gazette of central Illinois has been publishing both morning and afternoon editions on weekdays, but beginning June 1, it will publish ditch the afternoon edition. Elimination of an entire issue will save 1% in operating costs. Huh?

And Finally…

What would you do if your newspaper closed? Consider a career in local government. The New York Times profiles Michael Hanke, a veteran newspaperman from Canton, Ohio, who lovingly covered his hometown for more than 35 years before being laid off in a cost-cutting move two years ago. It could have been a sad story, but there’s a happy twist: Hanke is now a county administrator, where he works side-by-side with some of the people he used to criticize in his newspaper columns. And they’re tickled pink to work with him. It turns out that reporters are naturally inquisitive, resourceful and knowledgeable. “We got a real bargain when we hired Mike Hanke,” says Jane Vignos, the board president who selected him from among 70 candidates.

Five New York newspapers have banded together to exchange content in the largest such arrangement since the share-nicely craze began last year. The new group includes The Record of Hackensack, New Jersey, The Star-Ledger of Newark, the Times Union of Albany, the Buffalo News, and New York Daily News, which apparently organized the party.

Members will “assist each other in gathering news, sports and features materials, giving our readers access to more and expanded content from the top newspapers in each of the respective markets,” said Marc Kramer, CEO of the New York Daily News, in a very prepared statement.

No details were forthcoming, but the group issued a press release quoting top editors at all the participating papers making head-slapping “Why didn’t we think of this earlier?” statements.

The regional consortium trend was kicked off last April, when a group of five Ohio newspapers began posting all their daily stories on a private website where editors could pick and choose whatever they wanted. The Baltimore Sun and Washington Post are among other newspapers that have banded together in this way.

There was immediate speculation that the New York consortium was an excuse to lay off more newsroom employees. However, announced cutbacks at the Ohio Five haven’t been any greater than at other newspaper companies. The handshake deal is more likely aimed at setting members free from the Associated Press, which has been an industry whipping boy for the past year because of its license fees.

We’re interested in what you are seeing. If you subscribe to the Cleveland Plain Dealer, Columbus Dispatch, Toledo Blade, Cincinnati Enquirer and/or Akron Beacon Journal, please leave a omment and tell us if you’ve seen any noticeable difference in quality since those papers began sharing stories nearly a year ago.

State Aid and a Posthumous Polk

Blethen - hanging on

Publishers from the state of Washington pleaded with legislators for a special tax break yesterday, saying the severe recession has dealt a body blow to their already shaky business model. “Some of us, like The Seattle Times, are literally holding on by our fingertips today,” said Times publisher Frank Blethen, who presumably was not literally holding in by his fingertips at that very moment.

Publishers appeared before the state senate Ways and Means Committee to support a bill that would give them a tax break through 2015. While the measure would cost the state about $8 billion, lawmakers appear willing to help. The bill has bipartisan support.

In an ironic demonstration of the seriousness of the problems in Seattle, the Times covered the story with AP wire copy. 

Speaking of Seattle, the Post-Intelligencer may become the first newspaper to win a major journalism award posthumously. Mark Fitzgerald reports that Eric Nalder, the P-I‘s chief investigative reporter, has won a George Polk Award for his two-part series “Demoted to Private,” about waste by government military contractors. The P-I is due to close March 15 if a buyer can’t be found, meaning that at the April 15 ceremony, the award may be bestowed on a newspaper that no longer exists.

P.S. The Pacific Northwest Newspaper Guild will hold a meeting next week to see if it can rustle up enough enthusiasm to initiate an employee buyout of the P-I. In more robust economic times this idea might stand a chance, but it’s hard to believe employees are going to dig into their depleted savings to buy a money-losing operation.

Miscellany

Having already laid of 12% of its staff if 2008, The Milwaukee Journal-Sentinel is now freezing wages and may impose a one-week furlough. Print revenue was down 10.4% in the fourth quarter and “We’ve seen that deterioration accelerate in the first weeks of 2009,”said publisher Betsy Brenner.

Journal Register Co.’s mass execution of scores of weekly newspapers got little media coverage because not that many people will miss the Millbrook Round Table. But an unsigned editorial in the Odessa American delivers a poignant message about the impact a local weekly’s closure has on a community. 

A blog called Brazosport News has word that the Houston Chronicle is about to cut 10% of its staff. It even has a memo from the publisher saying so. We can find no coverage of this story anywhere else.

And Finally…

Yes we can. We just found it on Twitter. And if you came here looking for breaking news about the latest layoffs and cutbacks, you’re wasting your time. This is a daily blog, which is so last year. Instead, subscribe to The Media is Dying on Twitter. This anonymous microblogger is so speedy at documenting gloom and doom that he/she puts Romenesko to shame.  Fortunately for Romenesko, he gets more than 140 characters.

We wrap up our review of the highlights of 2008 with a selection of the best quotes we carried.

What’s black and white and completely over? It’s newspapers.”

– Jon Stewart, The Daily Show

“We wish Scripps well as it leaves the Denver newspaper market.”

–Denver Post Publisher Dean Singleton, effectively closing the door on any chance he would rescue rival Rocky Mountain News

“Today is set aside as National Punctuation Day (though, like National Grammar Day [March 4, isn’t it?], an occasion I’m inclined to approach with some misgivings); it has been commemorated since 2004 by Jeff Rubin, the self-described Punctuation Man (!) and his wife, who, since “premiering Punctuation Playtime in September 2006 … have been as busy as commas in a Sears catalog,” and who carry the message that “careless punctuation mistakes cost time, money, and productivity”: a proposition that merits examination – and illustrated here by a sentence that will have included all 13 standard punctuation marks when it arrives at a full stop.”

–John McIntyre, Baltimore Sun copy desk director, demonstrating how to use all 13 stanbdard punctuation marks correctly in a single sentence

“You are not in the newspaper business. You are in the business of going into your communities, finding stories, processing them and delivering them back to your clients and charging advertisers for those eyeballs.”

– Journalism futurist Michael Rosenblum, to the Society of Editors

“The newsroom…is down to seeds and stems in terms of numbers of reporters, photographers, copy editors and sports writers.”

–Mike Tharp, executive editor of the Merced (Calif.) Sun-Star, leaving little doubt that he has inhaled

“Victimhood is an irresponsible abdication of responsibility, a surrender.”

— Jeff Jarvis, on journalists’ protests that the newspaper industry’s predictament isn’t their fault.

“The newspaper industry is an abusive relationship. We keep getting beat up but we keep coming back because we love him.”

—Martin Gee, administrator of a new group on Facebook called Newspaper Escape Plan

“I repeatedly witnessed bizarre behavior at newspapers that no other business would ever allow. Some reporters and columnists were frequently drunk or on drugs on the job. Such conduct was not simply tolerated, it was condoned. These third-rate Hunter Thompsons screwed up appointments and scrambled facts but were never called to account for their mistakes, incivility or disruptive behavior.”

—Political consultant Clint Reilly

“We wish Jay well and will miss him – not personally, of course – but in the sense of noticing he is no longer here, at least for a few days.”

—Chicago Sun-Times editor Michael Cooke on the paper’s bitter breakup with sports columnist Jay Mariotti

“Many of our regular readers regard us like the electric company or water utility. Yes, everyone wants electricity and water and it’s a pain to do without them. But your soul just isn’t stirred by the sight of working faucet or wall socket.”

—Chicago Tribune Editor Gerry Kern on giving readers what they want

“These guys are in a world of hurt and we as a community need to find economic models that will fund really great content.”

—Google CEO Eric Schmidt on the decline of investigative journalism resulting from newspaper layoffs, a problem for which his company bears no small responsibility

“Galleria escalator stalls, dozens of riders trapped”

—Headline in Not The Los Angeles Times, a parody website

[Veteran journalists told us that if] young people were leaving, it was because they were wimps, and good riddance.”

—Vickey Williams of Northwestern University’s Media Management Center on the challenges of changing newsroom culture

“The inessentialness of copy editors is underscored by the advent of sophisticated spellchecking systems which have introduced a hole new level of error-free proofreading. No longer can we say that the editor’s penis mightier than the sword.”

—Washington Post columnist Gene Weingarten, in playful response to executives’ comments that the paper needed fewer copy editors

“A prototypical publisher selling 250,000 newspapers on each of the 365 days of the year adds nearly 28,000 tons of carbon dioxide to the atmosphere. That’s roughly equivalent to the CO2 spewed by almost 3,700 Ford Explorers being driven 10,000 miles apiece per year.”

—Alan Mutter, a journalist and former CEO who admits to owning an SUV

“At least with Tribune, you could have a rational fight; they never shouted obscenities at me. I wish somebody could tell [Sam Zell] that he’s presiding over important newspapers and that sounding like a knucklehead won’t work in the newspaper business.”

—Dean Baquet, former Los Angeles Times editor-in-chief, in an interview with LAMag.com

“In yesterday’s column about badminton, I misspelled the name of Guatemalan player Kevin Cordon. I apologize. In my defense, I want to note that in the same column I correctly spelled Prapawadee Jaroenrattanatarak, Poompat Sapkulchananart and Porntip Buranapraseatsuk. So by the time I got to Kevin Cordon, my fingers were exhausted.”

–Humorist Dave Barry, quoted in RegretTheError.com

We wrap up our review of the highlights of 2008 with a selection of the best quotes we carried.

What’s black and white and completely over? It’s newspapers.”

– Jon Stewart, The Daily Show

“We wish Scripps well as it leaves the Denver newspaper market.”

–Denver Post Publisher Dean Singleton, effectively closing the door on any chance he would rescue rival Rocky Mountain News

“Today is set aside as National Punctuation Day (though, like National Grammar Day [March 4, isn’t it?], an occasion I’m inclined to approach with some misgivings); it has been commemorated since 2004 by Jeff Rubin, the self-described Punctuation Man (!) and his wife, who, since “premiering Punctuation Playtime in September 2006 … have been as busy as commas in a Sears catalog,” and who carry the message that “careless punctuation mistakes cost time, money, and productivity”: a proposition that merits examination – and illustrated here by a sentence that will have included all 13 standard punctuation marks when it arrives at a full stop.”

–John McIntyre, Baltimore Sun copy desk director, demonstrating how to use all 13 stanbdard punctuation marks correctly in a single sentence

“You are not in the newspaper business. You are in the business of going into your communities, finding stories, processing them and delivering them back to your clients and charging advertisers for those eyeballs.”

– Journalism futurist Michael Rosenblum, to the Society of Editors

“The newsroom…is down to seeds and stems in terms of numbers of reporters, photographers, copy editors and sports writers.”

–Mike Tharp, executive editor of the Merced (Calif.) Sun-Star, leaving little doubt that he has inhaled

“Victimhood is an irresponsible abdication of responsibility, a surrender.”

— Jeff Jarvis, on journalists’ protests that the newspaper industry’s predictament isn’t their fault.

“The newspaper industry is an abusive relationship. We keep getting beat up but we keep coming back because we love him.”

—Martin Gee, administrator of a new group on Facebook called Newspaper Escape Plan

“I repeatedly witnessed bizarre behavior at newspapers that no other business would ever allow. Some reporters and columnists were frequently drunk or on drugs on the job. Such conduct was not simply tolerated, it was condoned. These third-rate Hunter Thompsons screwed up appointments and scrambled facts but were never called to account for their mistakes, incivility or disruptive behavior.”

—Political consultant Clint Reilly

“We wish Jay well and will miss him – not personally, of course – but in the sense of noticing he is no longer here, at least for a few days.”

—Chicago Sun-Times editor Michael Cooke on the paper’s bitter breakup with sports columnist Jay Mariotti

“Many of our regular readers regard us like the electric company or water utility. Yes, everyone wants electricity and water and it’s a pain to do without them. But your soul just isn’t stirred by the sight of working faucet or wall socket.”

—Chicago Tribune Editor Gerry Kern on giving readers what they want

“These guys are in a world of hurt and we as a community need to find economic models that will fund really great content.”

—Google CEO Eric Schmidt on the decline of investigative journalism resulting from newspaper layoffs, a problem for which his company bears no small responsibility

“Galleria escalator stalls, dozens of riders trapped”

—Headline in Not The Los Angeles Times, a parody website

[Veteran journalists told us that if] young people were leaving, it was because they were wimps, and good riddance.”

—Vickey Williams of Northwestern University’s Media Management Center on the challenges of changing newsroom culture

“The inessentialness of copy editors is underscored by the advent of sophisticated spellchecking systems which have introduced a hole new level of error-free proofreading. No longer can we say that the editor’s penis mightier than the sword.”

—Washington Post columnist Gene Weingarten, in playful response to executives’ comments that the paper needed fewer copy editors

“A prototypical publisher selling 250,000 newspapers on each of the 365 days of the year adds nearly 28,000 tons of carbon dioxide to the atmosphere. That’s roughly equivalent to the CO2 spewed by almost 3,700 Ford Explorers being driven 10,000 miles apiece per year.”

—Alan Mutter, a journalist and former CEO who admits to owning an SUV

“At least with Tribune, you could have a rational fight; they never shouted obscenities at me. I wish somebody could tell [Sam Zell] that he’s presiding over important newspapers and that sounding like a knucklehead won’t work in the newspaper business.”

—Dean Baquet, former Los Angeles Times editor-in-chief, in an interview with LAMag.com

“In yesterday’s column about badminton, I misspelled the name of Guatemalan player Kevin Cordon. I apologize. In my defense, I want to note that in the same column I correctly spelled Prapawadee Jaroenrattanatarak, Poompat Sapkulchananart and Porntip Buranapraseatsuk. So by the time I got to Kevin Cordon, my fingers were exhausted.”

–Humorist Dave Barry, quoted in RegretTheError.com

We sorted through our 147 entries of 2008 to come up with the stories that surprised us, delighted us or made us shake our heads in disbelief. We’ll present them as a series of posts over the next few days in hopes that you’ll find them to be as memorable as we did. Happy New Year!

Telling Tales
Gallup research showed that 31% of US adults now consult the Internet daily for news while 40% read a local newspaper. The trend lines look to cross sometime in the next five years, making the Internet the most important news source among US adults. Only 22% of adults under 30 read a local newspaper daily, Gallup reported. The average daily newspaper reader is now 56 years old.

Ted Gup, a journalism professor at Case Western, lamented his students’ appalling ignorance of basic current events. “Nearly half of a recent class could not name a single country that bordered Israel. In an introductory journalism class, 11 of 18 students could not name what country Kabul was in, although we have been at war there for half a decade. Last fall only one in 21 students could name the U.S. secretary of defense. Given a list of four countries – China, Cuba, India, and Japan – not one of those same 21 students could identify India and Japan as democracies.

Rick Redfern, the resident ink-stained wretch of the Doonesbury comic strip for more than 30 years, decided to accept a buyout

The Wall Street Journal’s paid subscription model has often been held up as an example of how newspapers need to buck the trend toward free content. However, in April, website Salon revealed how to get full access to The Wall Street Journal for free instead of paying $79 annually. It turns out the Journal creates a shadow version of its web content for the express purpose of getting traffic from Google, which can’t see around firewalls.

In May, Mike Koehler launched Praying for Papers, a blog whose stated purpose was to encourage “anyone who is touched by this shift in our industry to include it each day in their prayer life.” On July 11, the author said he was going on vacation. The blog hasn’t been updated since.

Shortly before the stock market meltdown, Valleywag observed that the combined wealth of Google’s co-founders exceeded the value of the entire US newspaper industry

The fifth annual “State of the American News Media” study by the Project for Excellence in Journalism found that as newspapers cut staff, they actually concentrated their remaining resources in fewer places. “You have in a sense more reporters across more outlets, but they are all covering a fairly narrow band of stories,” the project’s director told Reuters.

Jolly Journalist debuted in June, asserting that “these are the most exciting times to work in journalism. We want to collect your reasons why this is the case.” It hasn’t been updated since Oct. 13.

Watchdogs

Cost-cutting is robbing the public of an American institution – the editorial cartoonist. “In the past three years, around three dozen artists have been laid off, forced to take buyouts or to retire, according to the Association of American Editorial Cartoonists,” said an Associated Press piece.

The ombudsman, a staff watchdog position that became popular in the 1970s, turned into an expensive luxury. “Over the past year, reader representatives/public editors/reader advocates/ombudsmen have been reassigned, retired or bought out at the Baltimore Sun, the Minneapolis Star Tribune, the Orlando Sentinel, the Fort Worth Star-Telegram and the Palm Beach Post,” wrote Karen Hunter, the Hartford Courant‘s reader representative, in a farewell column that has since been pulled off the site.

Erica Smith vividly documented the industry’s massive layoffs using a Google Maps mashup.

The Gannett Blog became a major source of news about job cuts at the company. Only the site isn’t run by Gannett but rather by a former employee, Jim Hopkins. The New York Times cited Gannett as a poster child of corporate cluelessness because it refuses to pay attention to the blog, despite the fact that Hopkins’ posts can draw hundreds of comments. Hopkins assembled field reports from employees at more than 70 newspapers about recent layoffs, making the blog the most comprehensive source of news about that topic.

Clue, Please

The American Press Institute held an executive confab in Reston, Va. In November in which industry honchos heard that the newspaper industry is in a full-blown crisis. All but one of the public companies in the room was at real risk of bankruptcy, a summary said. Session leader James Shein said one of the purposes of the meeting was to “illuminate for newspaper industry leaders the urgency of their situation.” Executives agreed to meet again in six months.

The Newspaper Association of America continues to run these strange ads with their baffling images, apparently thinking it’s doing some good. What the heck is that thing?

The executive editor of the Raleigh News & Observer wrote a stirring column about the growth of the newspaper’s overall print and online circulation. Underscoring the importance of the online product and readership trends in that direction, he cited several online sources, but didn’t link to any of them.

Sincerest Form of Flattery

Web wunderkind Marc Andreessen announced a New York Times death watch.

And Advertising Age launched a series of articles intended to “look at the thought leaders in the industry, their attempts to leave the past — and even formats — behind and their strategies for finding new business models. The series title: The Newspaper Death Watch.

We sorted through our 147 entries of 2008 to come up with the stories that surprised us, delighted us or made us shake our heads in disbelief. We’ll present them as a series of posts over the next few days in hopes that you’ll find them to be as memorable as we did. Happy New Year!
Telling Tales
Gallup research showed that 31% of US adults now consult the Internet daily for news while 40% read a local newspaper. The trend lines look to cross sometime in the next five years, making the Internet the most important news source among US adults. Only 22% of adults under 30 read a local newspaper daily, Gallup reported. The average daily newspaper reader is now 56 years old.

Ted Gup, a journalism professor at Case Western, lamented his students’ appalling ignorance of basic current events. “Nearly half of a recent class could not name a single country that bordered Israel. In an introductory journalism class, 11 of 18 students could not name what country Kabul was in, although we have been at war there for half a decade. Last fall only one in 21 students could name the U.S. secretary of defense. Given a list of four countries – China, Cuba, India, and Japan – not one of those same 21 students could identify India and Japan as democracies.

Rick Redfern, the resident ink-stained wretch of the Doonesbury comic strip for more than 30 years, decided to accept a buyout

The Wall Street Journal’s paid subscription model has often been held up as an example of how newspapers need to buck the trend toward free content. However, in April, website Salon revealed how to get full access to The Wall Street Journal for free instead of paying $79 annually. It turns out the Journal creates a shadow version of its web content for the express purpose of getting traffic from Google, which can’t see around firewalls.

In May, Mike Koehler launched Praying for Papers, a blog whose stated purpose was to encourage “anyone who is touched by this shift in our industry to include it each day in their prayer life.” On July 11, the author said he was going on vacation. The blog hasn’t been updated since.

Shortly before the stock market meltdown, Valleywag observed that the combined wealth of Google’s co-founders exceeded the value of the entire US newspaper industry

The fifth annual “State of the American News Media” study by the Project for Excellence in Journalism found that as newspapers cut staff, they actually concentrated their remaining resources in fewer places. “You have in a sense more reporters across more outlets, but they are all covering a fairly narrow band of stories,” the project’s director told Reuters.

Jolly Journalist debuted in June, asserting that “these are the most exciting times to work in journalism. We want to collect your reasons why this is the case.” It hasn’t been updated since Oct. 13.

Watchdogs

Cost-cutting is robbing the public of an American institution – the editorial cartoonist. “In the past three years, around three dozen artists have been laid off, forced to take buyouts or to retire, according to the Association of American Editorial Cartoonists,” said an Associated Press piece.

The ombudsman, a staff watchdog position that became popular in the 1970s, turned into an expensive luxury. “Over the past year, reader representatives/public editors/reader advocates/ombudsmen have been reassigned, retired or bought out at the Baltimore Sun, the Minneapolis Star Tribune, the Orlando Sentinel, the Fort Worth Star-Telegram and the Palm Beach Post,” wrote Karen Hunter, the Hartford Courant‘s reader representative, in a farewell column that has since been pulled off the site.

Erica Smith vividly documented the industry’s massive layoffs using a Google Maps mashup.

The Gannett Blog became a major source of news about job cuts at the company. Only the site isn’t run by Gannett but rather by a former employee, Jim Hopkins. The New York Times cited Gannett as a poster child of corporate cluelessness because it refuses to pay attention to the blog, despite the fact that Hopkins’ posts can draw hundreds of comments. Hopkins assembled field reports from employees at more than 70 newspapers about recent layoffs, making the blog the most comprehensive source of news about that topic.

Clue, Please

The American Press Institute held an executive confab in Reston, Va. In November in which industry honchos heard that the newspaper industry is in a full-blown crisis. All but one of the public companies in the room was at real risk of bankruptcy, a summary said. Session leader James Shein said one of the purposes of the meeting was to “illuminate for newspaper industry leaders the urgency of their situation.” Executives agreed to meet again in six months.

The Newspaper Association of America continues to run these strange ads with their baffling images, apparently thinking it’s doing some good. What the heck is that thing?

The executive editor of the Raleigh News & Observer wrote a stirring column about the growth of the newspaper’s overall print and online circulation. Underscoring the importance of the online product and readership trends in that direction, he cited several online sources, but didn’t link to any of them.

Sincerest Form of Flattery

Web wunderkind Marc Andreessen announced a New York Times death watch.
And Advertising Age launched a series of articles intended to “look at the thought leaders in the industry, their attempts to leave the past — and even formats — behind and their strategies for finding new business models. The series title: The Newspaper Death Watch.

We sorted through our 147 entries of 2008 to come up with the stories that surprised us, delighted us or made us shake our heads in disbelief. We’ll present them as a series of posts over the next few days in hopes that you’ll find them to be as memorable as we did. Happy New Year!

Management Ineptitude

The Cleveland Plain Dealer wrote a case history for the how not to handle a layoff. Staff were told not to come in to work until after 9:30 a.m. on Dec. 2. Laid-off employees were notified by phone. Those who didn’t get a call were expected to promptly come to the office. Management then arranged for laid-off employees to clean out their desks on a Saturday morning and to enter the building from the back where they wouldn’t attract the attention.

In March, Tribune Co. CEO Sam Zell was caught on video telling one of his reporter employees, “F**k you.” He muttered the comment under his breath at the end of a response to an Orlando Sentinel’s reporter’s pointed question about how newspapers can thrive by giving readers what they want when all readers want is stories about puppy dogs.

The Chinese Daily News had to pay $5.2 million for allegedly forcing reporters to file five stories a day and to rush between news conferences and interviews. Ad quotas were unreasonably high and production workers were forced to labor nonstop. Reporters testified that they had to work six days a week, 12 hours a day, but weren’t able to complain because of pressure and the culture of intimidation.

Several publishers chose Valentine’s Day to announce major layoffs.

The Denver alternative weekly Westword reported that staff members of the Longmont, Colo. Times-Call newspaper were invited to the publisher’s holiday party – as parking valets. Staffers reportedly earned what they got for their day jobs, only they spent their time parking the cars of rich people in attendance.

Los Angeles Times publisher David Hiller hatched a plan to move the paper’s monthly magazine completely under the control of the advertising department without telling the newspaper’s editor. Hiller reportedly hired a new editor and planned to replace the magazine’s entire nine-person editorial staff without telling anyone on the editorial side. Hiller resigned a few weeks later.

In June, Tribune Co. launched a campaign to measure journalist productivity by the number of column inches of copy they produced. Noting that Los Angeles Times reporters turn out about one-sixth as many column inches as their counterparts in Hartford or Baltimore, Tribune COO Randy Michaels issued a warning to writers and editors. “When you get into the individuals, you find out that you can eliminate a fair number of people while eliminating not very much content,” he said.

Slate’s Jack Shafer analyzed the use of anonymous sources by major newspapers. He created a few Google Alerts to look for words like “anonymity” and then looked at the stories to see if the secrecy was warranted. In most cases, he found that that the anonymous quotes were either obvious, self-serving or contributed nothing to the story.

Killing the Host

The Newspaper Guild in Honolulu printed up 100,000 cards for readers can send in to cancel their subscriptions in event of a strike. The thinking was that it was better to take down the Advertiser and cause a whole lot more people to lose their jobs than to have 54 employees treated unfairly.

The union at the Los Angeles Times mounted a campaign to drive out of existence the dwindling number of businesses that advertised in the paper because it said the Times wouldn’t negotiate in good faith.

Oh-Oh

A Google search bot triggered a 75% plunge in shares of United Airlines over the weekend when it assigned a Sept. 6, 2008 date to a six-year-old story about United Airlines’ bankruptcy filing.

Editors at the Wine Spectator bestowed a coveted Award of Excellence on a non-existent restaurant. The prank was dreamed up by Robin Goldstein, who concocted a fake website with recipes from an Italian cookbook and a reserve wine list “largely chosen from among some of the lowest-scoring Italian wines in Wine Spectator over the past few decades.”

The Tampa Bay Tribune quickly backtracked on a series of design changes as some 300 readers canceled subscriptions and more than 3,000 called or wrote e-mails of protest. “Turns out, we had really disrupted the way people communicate with each other in the morning,” said executive editor Janet Coats.

The San Francisco Examiner caught a delivery man for the Palo Alto Daily Post apparently stealing copies of the Examiner as he delivered his own newspaper. When confronted and asked to open his trunk, the man had more than 1,000 copies of the rival newspaper stashed there.

The Chicago Sun-Times ran a contest for the best reader-submitted video opposing Sam Zell’s proposal to sell naming rights to the Chicago Cubs. The winner was a college student who interns at the rival Tribune. The Trib had some fun with winning its rival’s contest in this clip, which also includes the winning video.

We sorted through our 147 entries of 2008 to come up with the stories that surprised us, delighted us or made us shake our heads in disbelief. We’ll present them as a series of posts over the next few days in hopes that you’ll find them to be as memorable as we did. Happy New Year!

Management Ineptitude

The Cleveland Plain Dealer wrote a case history for the how not to handle a layoff. Staff were told not to come in to work until after 9:30 a.m. on Dec. 2. Laid-off employees were notified by phone. Those who didn’t get a call were expected to promptly come to the office. Management then arranged for laid-off employees to clean out their desks on a Saturday morning and to enter the building from the back where they wouldn’t attract the attention.

 
In March, Tribune Co. CEO Sam Zell was caught on video telling one of his reporter employees, “F**k you.” He muttered the comment under his breath at the end of a response to an Orlando Sentinel’s reporter’s pointed question about how newspapers can thrive by giving readers what they want when all readers want is stories about puppy dogs.
 

The Chinese Daily News had to pay $5.2 million for allegedly forcing reporters to file five stories a day and to rush between news conferences and interviews. Ad quotas were unreasonably high and production workers were forced to labor nonstop. Reporters testified that they had to work six days a week, 12 hours a day, but weren’t able to complain because of pressure and the culture of intimidation.

Several publishers chose Valentine’s Day to announce major layoffs.

The Denver alternative weekly Westword reported that staff members of the Longmont, Colo. Times-Call newspaper were invited to the publisher’s holiday party – as parking valets. Staffers reportedly earned what they got for their day jobs, only they spent their time parking the cars of rich people in attendance.

Los Angeles Times publisher David Hiller hatched a plan to move the paper’s monthly magazine completely under the control of the advertising department without telling the newspaper’s editor. Hiller reportedly hired a new editor and planned to replace the magazine’s entire nine-person editorial staff without telling anyone on the editorial side. Hiller resigned a few weeks later.

In June, Tribune Co. launched a campaign to measure journalist productivity by the number of column inches of copy they produced. Noting that Los Angeles Times reporters turn out about one-sixth as many column inches as their counterparts in Hartford or Baltimore, Tribune COO Randy Michaels issued a warning to writers and editors. “When you get into the individuals, you find out that you can eliminate a fair number of people while eliminating not very much content,” he said.

Slate’s Jack Shafer analyzed the use of anonymous sources by major newspapers. He created a few Google Alerts to look for words like “anonymity” and then looked at the stories to see if the secrecy was warranted. In most cases, he found that that the anonymous quotes were either obvious, self-serving or contributed nothing to the story.

Killing the Host

The Newspaper Guild in Honolulu printed up 100,000 cards for readers can send in to cancel their subscriptions in event of a strike. The thinking was that it was better to take down the Advertiser and cause a whole lot more people to lose their jobs than to have 54 employees treated unfairly.

The union at the Los Angeles Times mounted a campaign to drive out of existence the dwindling number of businesses that advertised in the paper because it said the Times wouldn’t negotiate in good faith.

Oh-Oh

A Google search bot triggered a 75% plunge in shares of United Airlines over the weekend when it assigned a Sept. 6, 2008 date to a six-year-old story about United Airlines’ bankruptcy filing.

Editors at the Wine Spectator bestowed a coveted Award of Excellence on a non-existent restaurant. The prank was dreamed up by Robin Goldstein, who concocted a fake website with recipes from an Italian cookbook and a reserve wine list “largely chosen from among some of the lowest-scoring Italian wines in Wine Spectator over the past few decades.”

The Tampa Bay Tribune quickly backtracked on a series of design changes as some 300 readers canceled subscriptions and more than 3,000 called or wrote e-mails of protest. “Turns out, we had really disrupted the way people communicate with each other in the morning,” said executive editor Janet Coats.

The San Francisco Examiner caught a delivery man for the Palo Alto Daily Post apparently stealing copies of the Examiner as he delivered his own newspaper. When confronted and asked to open his trunk, the man had more than 1,000 copies of the rival newspaper stashed there.

The Chicago Sun-Times ran a contest for the best reader-submitted video opposing Sam Zell’s proposal to sell naming rights to the Chicago Cubs. The winner was a college student who interns at the rival Tribune. The Trib had some fun with winning its rival’s contest in this clip, which also includes the winning video.

As the newspaper industry winds down its worst year in history, some observers are finding hope amid the rubble.

Jonathan Zittrain points out that Twitter and Mahalo were powerful tools for documenting the crisis in Mumbai nearly two weeks ago. For many Americans, foreign news services and the BBC were all that was available to track the terrorist attacks. Few US newspapers even have stringers in Mumbai any more. Into that vacuum sprang citizen journalists with their cell phones and self-built news sites. Zittrain says he’s seen the future of news in these services. Check out the Mumbai hash on Twitter, the Mumbai Terrorist Attacks page on Mahalo and the Wikipedia entry on the Mumbai attacks.  Can you read these accounts and not believe that a new kind of journalism is being created before our eyes?

European editor Frédéric Filloux and former Apple honcho Jean-Louis Gassée meander a bit before getting to the point, but finally zero in on what’s going right in the news world. They point to The New York Times’ introduction of Times Extra as an example of how the link economy is transforming the news business. Times Extra integrates news from outside sources – including competitors – into the Times’ home page. This is a bitter pill for hyper-competitive editors to swallow, but a necessary one in the new model of news.

They also point to two other recent announcements – the success of The Politico’s new wire service and Huffington Post’s $25 million capital infusion – as evidence that there’s plenty of life in the news business, just not in the old news business. “The Internet economy is moving in the right direction,” Filous writes. These stories, “provide evidence of…progress. Similar news organizations are bound to find sustainable business models.”

If you run a newspaper, you might consider hiring Gordon Borrell for your next team-building event. Check out these quotes and paraphrases attributed to the founder of research firm Borrell Associates in Investor’s Business Daily (lightly edited):

• “We’re confident it’s near a bottom, and there will be a rebound.”
• Newspaper companies have plenty of growth ahead for their Internet businesses — albeit with hard work… Newspapers are planning for exponential growth from the Web — in some
• Local advertising, which newspapers are best positioned to capture, will grow 47% this year to $12.9 billion.

These optimistics comments come on top of recent news that advertising on newspaper websites declined 3% in the third quarter of 2008, indicating that the one business that should be growing is actually shrinking. They are also rather oddly juxtaposed with the chart at right. We hope Borrell is correct, but his comments shouldn’t be cause for complacency.

Miscellany

Disgraced Illinois Governor Rod Blagojevich allegedly pressured the Chicago Tribune to fire Deputy Editorial Page Editor John McCormick and other unnamed editorial board members in exchange for getting state funding that would grease the wheels for Tribune Co. to sell the Chicago Cubs. We suspect this story might have something to do with it. We also marvel that the great state of Illinois could elect a marvel of leadership like our President elect and a scumbag like Rod Blagojevich to office at the same time.

The Richmond (Va.) Times-Dispatch is laying off 18 employees while the Philadelphia Inquirer and Philadelphia Daily News will collectively cut 35 jobs, reports Editor & Publisher. No word on what percentage of their respective workforces the cuts represent. The Philadelphia layoffs will concentrate in the newsroom, however.

Self-described troglodyte Ted Venetoulis is still interested in buying the Baltimore Sun. Or maybe the 72-year-old investor is just looking to get his name in the paper. See for yourself. The Baltimore Business Journal reports that Venetoulis and a group of anonymous investors are still looking at possible acquisition of the Sun from its troubled Tribune Co. parent, but a lot has to be worked out first, including assessing the future of the newspaper industry itself. Venetoulis admits that he hasn’t looked at the Sun’s financials, that he wouldn’t want to pay too much and that he’s going to watch Tribune Co.’s bankruptcy closely. It’s too early to tell. Which makes us wonder why the BBJ committed 500 words to this meaningless story.

The Christian Science Monitor sums up the troubles plaguing the industry. This story doesn’t break a lot of new ground, but we couldn’t resist mentioning it because we’re quoted there.

And Finally…

The Daily Show analyzes the decline of newspapers in its own inimitable style.

And from Rob Tornoe, cartoonist at The Politicker:

Helium.com is a web site devoted to citizen journalism. We had a chance to speak with its VP of development, Peter Newton, on Monday. Newton is a long-time Boston Globe executive who came to Helium about two years ago to help invent a new approach to journalism. 

The site has about 5,000 regular contributors, who upload all manner of stories relating to their interests and activities.  Helium isn’t a news site; rather, it takes the type of material that people would have posted on blogs for nothing and offers it to the public and to publishing partners on a revenue-share basis. Newton said some citizens are earning thousands of dollars per year for their contributions.

Helium has useful advice on everything from Socrates to roasting turkey.  Contributed stories are evaluated by members and voted up or down the popularity stack.  Contributors share in advertising revenue as well as the modest license fees the company generates from distributing its content to publishing partners.  Most of those partners are small right now, but Newton says some big deals are imminent. In the Marketplace section, a few publications solicit articles by topic, paying between $48 and $120 per submission. There is also a list of citizen journalism awards available to aspiring writers.

One of Helium’s goals is to become a source of freelance content for publishers who want a low-cost alternative to standard freelance rates.  The site is founded on the assumption that expertise doesn’t have to cost $1/word and that knowledgeable people can now find an outlet for their expression. Helium isn’t profitable yet but hopes to get there within about a year.  With $17 million in venture capital, it’s off to a good start. 

Small is Beautiful…Or At Least Cheap

The New York Times reports upon the rise of small, focused investigative journalism operations that are succeeding where traditional newspapers are cratering.  Operating at the will of charitable organizations, in many cases, they pay their journalists anywhere from $30,000-$50,000 per year and provide highly targeted coverage of specific topics and regions.  Most of these organizations are small and have low traffic counts, but the big ones, like MinnPost in the Twin Cities and the St. Louis Beacon, can top 200,000 visitors per month.  While they provide only a fraction of the coverage of the mainstream media they displace, they are increasingly popular alternatives for journalists whose jobs have been swallowed up by the implosion of local dailies.

Do They Still Not Get It?

Baltimore Sun copy desk director John E. McIntyre relates the experiences of two colleagues who are making a living trying to give new-media advice to their ink-stained brethren.  Their frustration is summed up in this anecdote from one of them: Too many journalists think the reader’s pleasure is irrelevant, that the reader picks up the newspaper either to be instructed or to sit in awe of the literary talent being presented in it. In short, too many journalists are too full of themselves to succeed in the 21st century, when a newspaper needs to focus on what its readers want, since the readers’ choices of what to do with their time seem limitless. That is the challenge for young journalists of the 21st century, who I hope will save us all.” McIntyre concludes that young people are not hostile to newspapers as much as they are disdainful of being bored.  The idea that readers will suffer through paragraphs of tedious introduction in order to get to the meat of the story is at the heart of the disconnect between newspapers and their audiences. “We have to master the new technologies, both to acquire useful information and to convey it in the form in which readers prefer to receive it,” he says.

Miscellany

The Virginian-Pilot will cut 125 jobs, or about 10% of its workforce.  Tactics include shutting down a free daily newspaper geared to Generation Y readers, reducing the size of the newspaper by about 40 pages a week and eliminating the business section.  The Pilot provides an unusually frank account on its website, quoting editor Dennis Finley as saying that those laid off include some of his most senior managers.  “One of the goals was to keep as many reporters on the street as possible,” Finley says.  Particularly disappointing is the closure of Link, a free daily newspaper targeting the 18-to 34-year-old demographic group.  The Pilot‘s average circulation has been falling, but less than the national average for newspapers.  A price increase is also in the cards.  

Here’s a welcome breather for the newspaper industry: newsprint prices have stabilized. The companies that sell newsprint are quietly saying that they have no plans to raise rates next year.  However, that doesn’t compensate for the likely increases in the price of gasoline. While gas has gotten cheaper lately, many experts believe that $4/gallon gasoline is a likelihood for next summer, which will still significantly affect newspapers that distribute by truck.

The Chulchavox blog relates two items we missed:   

• The Denver alternative weekly Westword says that staff members of the Longmont, Colo. Times-Call newspaper have been invited to the publisher’s holiday party – as parking valets. Staffers will reportedly earn what they get for their day jobs, only they’ll be parking the cars of rich people in attendance.
•  The Newark Star-Ledger has reassigned a reporter and a deputy photo edit to the mailroom in order to keep their jobs.

The blogger also quotes from Martin Legeveld, of News After Newspapers, commenting upon the follow-up land from the American Press Institute’s CEO conference held last week. Participants agreed to reconvene in six months to explore additional collaboration ideas.  “What are they thinking?” Langeveld says.  “What will be left six months from now?”

The McClatchy Company reported that consolidated revenues in October decreased 17.8% and advertising revenues declined 20.4% over the previous year.  The bright spot was a 12.4% gain in online advertising revenues.

Six Apart is offering laid-off journalists free blog accounts worth $150 per year.  More than 300 applications rolled in during the first eight days. Of course, you can also get free blog accounts at Blogger.com and WordPress.com, not to mention several other places.

The Maine-based Lakes Region Weekly has cut six positions through a combination of layoffs and the elimination of unfilled positions.

And Finally…

Out-Of-Town News, the Harvard Square kiosk that has served newspapers and magazines from around the world to an eager audience of students and erudite residents of Cambridge, Mass., will go out of business at the end of this month.  The city Council of Cambridge, Mass. has voted to extend the lease in an effort to keep the business in Harvard Square, but the prospects look grim.  The newsstand has been in operation since 1945, but business has been challenging for several years.