Another group of Rocky Mountain News ex-pats is taking a run at a new-media publishing model with a paid-subscription component. The Rocky Mountain Independent debuted yesterday with a staff of 14 ex-Rocky employees and a determination not to repeat the mistakes that were made by InDenverTimes, a startup that struggles along on life support after badly missing its goal of recruiting 50,000 paying subscribers. Several members of the Independent staff also worked at InDenver Times.

The new site will be mostly free but with a small collection of columns and in-depth pieces behind a $4/mo. pay wall. Staffer Steve Foster (right), a former assistant sports editor at the Rocky Mountain News, likened the model to ESPN, which is mostly ad-supported but which also has a small amount of subscriber-only material for diehard sports enthusiasts. Foster said editorial content will focus on “larger, broader stories…We’re not as interested in following somebody on the campaign trail on a daily basis. We’d rather step back and assess someone’s chances in an election.” If anyone can detect a difference between that approach and a daily newspaper’s please let us know. Foster also said the Independent will run long pieces, too, which challenges conventional wisdom that online readers don’t have the attention span for that kind of material. The reason? As magazines and newspapers shrink, there’s less long-form journalism being published any more. That creates demand.

Some Good News, Some Bad News on Ad Front

ZenithOptimedia sees some light at the end of the tunnel for advertising. The plunge in global advertising appears to have reached bottom in the second quarter and is poised for some recovery. The agency also trimmed its forecast of a 6.9% decline in advertising spending for 2009. Growth will come mainly in online ads, which is the only segment to expand this year. Within that segment, search advertising has the greatest momentum, with expected growth of 20% this year. The big losers are newspaper and magazine advertising, which the agency expects to decline nearly 15% this year.

The pickup can’t come too soon for the beleaguered magazine industry, which has seen 279 titles close their doors this year already and another 43 end their print versions. The good news: there have also been 187 new launches. However, the trend is in the wrong direction, according to MediaFinder, which notes that in the second quarter alone, 77 magazines have launched while 184 have folded.

Overzealous WaPo Marketer Ruffles Feathers

Washington Post publisher Katharine Weymouth cancelled plans for a series of dinners at her home after an overzealous Post marketing executive issued flyers positioning the events as a way for sponsors to buy access to the paper’s journalists and members of Congress. Weymouth said the promotions “should never have happened… We’re not going to do any dinners that would impugn the integrity of the newsroom.” Post Editor Marcus Brauchli said he was “appalled” by the promotions that promised “an exclusive opportunity to participate in the health-care reform debate among the select few who will actually get it done.”

The whole affair was a platform for strong language on the part of participants and observers. Boston University’s Tom Fiedler said he was “astonished” at the Post’s “crossing a boundary line that seems to me painted so brightly white.” Charles Pelton, the Post marketing executive who created the flyers, said he had been “sloppy” in allowing them to go out. A spokesman for Rep. Jim Cooper, a Tennessee Democrat, called the dinner as advertised “a radioactive event.” Everyone flagellated themselves fully and promised not to let it happen again.

Miscellany

Gannett Blog has a letter that was apparently sent to employees of Gannett’s 10-paper Newspaper Network of Central Ohio that outlines plans to consolidate 10 regional newspapers under a single editor. The letter is from Linda Greiwe, publisher of the Newark (Ohio) Advocate. It outlines plans to consolidate page production into two locations and to form an “enterprise and data reporting team of two people” who will “write in-depth daily and project stories on issues that impact as many NNCO markets as possible.” Headcount will be reduced but the job losses are not part of Gannett’s larger 1,400-employee layoff announced last week.

Talking Points Memo, the fledgling new-journalism venture run by Josh Marshall, just took a venture funding round from Marc Andreessen, creator of the Netscape browser. The investment is small – less than $1 million – but it’s an important step for TPM, which has been bootstrap-funded until now. Marshall told TechCrunch the company is profitable and has 11 full-time employees. After this cash infusion, it will no doubt have more.

The bankrupt Tribune Co. may be under legal protection from debtors, but it isn’t protected from the realities of the market. The company’s revenue slid 23% in the first five months of the year and its profit margins have dwindled from 19% to 8% during that time, according to a Morningstar analysis. Tribune Co. doesn’t have to report financial results while in bankruptcy, so Morningstar derved the financial picture from an analysis of “operating receipts” reported so far this year. While the company is still cash flow positive, the declining margins would indicate that its debts will have to be significantly restructured to enable it to emerge from bankruptcy. The good news is that the company appears to be close to selling the Chicago Cubs to a local family for a reported $900 million. The Cubs have been for sale for two years. Tribune bought the team and the stadium for $20.5 million in 1981, representing a capital gain of nearly 4,500% in 28 years.

A new study finds that small newspapers are faring better than large ones, although only marginally. Media Post reports on the study by Inland Press that found that papers with less than 15,000 circulation actually saw revenue increases of 2.4% over the last five years. While that’s tiny, it’s a lot better than the 22% decline experienced by the overall newspaper business. However, the study also found that there’s plenty of pain in small markets, particularly at papers in the 25,000-to-50,000 circulation range that are under heavy debt loads. “If this trend continues, bankruptcy and sale or closure could follow for scores of newspapers, as the plague afflicting big metro dailies infects smaller markets,” it asserts. The problem many markets, of course, is debt. Heavy debt burdens are forcing big publishers to plow profits into loan payments instead of investing in their properties. Small publishers without much debt are better positioned overall to weather the crisis.

Trying to come up with someone to blame for the newspaper industry’s crisis? Try Macy’s. The department store chain has chopped more than half of its spending on newspaper advertising since 2005, Alan Mutter reports. He estimates the bite at $616 million annually. And considering that Macy’s it itself a chimera of smaller department store chains, the aggregate loss may be even larger. Macy’s was the second-largest newspaper advertiser in 2008, surpassed only by Verizon.

Tomorrow is the deadline to get in bids to buy the Boston Globe, so hurry!

The Houston Business Journal conducted a non-scientific poll asking readers, “If your local daily newspaper stopped its print edition, would you miss it?” Fifty-six percent said they wouldn’t, with many adding that biased coverage is their biggest complaint.

The San Francisco Chronicle shut down its presses on Sunday after more than 140 years in the printing business. The function has been outsourced to Transcontinental, Inc., the sixth largest printer in North America. More than 200 unionized pressmen lost their jobs.

Time magazine writes about the first crop of graduates from a new master’s program at the Medill School of Journalism that aims to blend programming and journalism skills. Medill is the most prominent of several academic institutions that are dabbling with crossover programs that seek to make the news more accessible and multi-dimensional through technology. One outcome of the students’ labors has been NewsMixer (right), a site that enhances the reader commenting experience by enabling contributors to start discussions, post quick tweet-like messages or write thoughtful letters to the editor about stories or elements within stories. The text is annotated with these comments and questions and Facebook Connect integration takes the conversations to other venues.

Most of the students in the Medill program are techies. They spend three quarters learning the craft of traditional reporting and then team up with students from the traditional journalism side to develop an application that delivers information in a new way, enhances the reader experience or makes journalists more productive.

Speaking of new ways of presenting news, a group of senators began working on a bill to overhaul of the US health care system this week, but NPR turned the camera around on the swarm of lobbyists who filled the hearing room. The radio network published photos of the scene, annotated with information about the lobbyists pictured there. And it’s asking readers to contribute information about people the staffers couldn’t identify.

Also, take a look at Newsy, an online video site that aggregates perspectives on important stories. Jessi Stafford, a recent University of Missouri graduate and Newsy intern, told us about it. “Newsy.com creates videos that analyze and synthesize news coverage of important global issues from multiple sources. Its method of presenting the ways in which different media outlets around the world are covering a story lends itself well to understanding complexities.” Newsy aggregates coverage from all kinds of news outlets and presents it in a packaged video format similar to what you might see on the evening news. A newsy “anchor” guides the viewer through a variety of perspectives and attempts to explain what’s going on using these multiple sources. We’re not sure it’s easier to follow than a print digest, but it’s certainly different. See an example below.

You Are What You Tweet

The Australian media watchdog site New Matilda comments upon the ethical dilemmas presented by Twitter. It tells the story of Sydney Morning Herald technology writer Asher Moses, who was publicly embarrassed recently over comments he made about a sex scandal involving a prominent former rugby star. Moses’ comments were made during his off hours, but hasn’t stopped many Australians from questioning the journalist’s impartiality.

Julie Posetti wonders whether Twitter’s humanizing capacity is a blessing or a curse for journalists. Twitter “merges the professional and the personal, the public and the private — blurring the lines of engagement for journalists trained to be didactic observers and commentators rather than participants in debates and characters within stories,” she writes. Twitter makes journalists more accessible and thus more appealing, Posetti notes, but should people who are supposed to be rigidly unbiased be allowed to share their views on anything? Moses says he’s made up his mind. “He’s now decided to restrict his Tweeting to purely work-related messages.” BTW, it’s worth checking out Posetti’s Top 20 Tips for Journo Twits.

Miscellany

Small and mid-sized newspapers may be a bargain in the current market, according to a study by brokerage firm Cribb, Greene & Associates. Despite the fact that smaller papers haven’t suffered the steep losses of their big-city brethren, many publishers are putting them up for sale out of fear of losing further asset value. Asking prices are between four and eight times earnings before income tax, depreciation and amortization (EBITDA), compared to 10 to 14 times EBITDA a few years ago, the firm said. This is despite the fact that revenue declines at these papers have been only about half that of major metro dailies.

At least two potential buyers for the Boston Globe have emerged, and owner New York Times Co. is doing everything it can to welcome them. Former advertising executive Jack Connors and private equity investor Stephen Pagliuca have received permission to team up on a bid. There is also reportedly a rival bid by former Globe executive Stephen Taylor, whose family originally sold the paper to the Times Co. for $1.1 billion in 1993. The Times Co. sweetened the pot by announcing that buyers would only have to assume $51 million worth of pension obligations for the Globe and another $8 million for the Worcester Telegram instead of the full $200 million+ for which the current owners are liable. In an unrelated event, the paper’s editorial page editor, Renée Loth, announced she is leaving the paper after 24 years for unspecified new adventures.

Circulation at the Los Angeles Times passed one million in 1961. Last month it passed one million again – only headed the other way. Edward Padgett remembers. Meanwhile, the revolving door continues in the top editorial ranks: John Arthur (left) is out as executive editor after 23 years at the paper. A memo from Editor Russ Stanton makes it clear that the decision wasn’t Arthur’s.

Microsoft CEO Steve Ballmer says media companies should stop waiting for the market to bounce back because it isn’t going to bounce back. In the future, “All content consumed will be digital, we can [only] debate if that may be in one, two, five or 10 years,” he told the Cannes Lions International Advertising Festival, where he was named media person of the year. What’s more, advertising will continue to migrate online, leaving a smaller pie for traditional media companies to share.

Gannett Co. will lay off 1,400 people, not the 4,500 that was rumored. Still, that brings to 5,400 the total layoffs in the past year, which is about 12% of the company’s workforce. Gannett Blog is tracking the reductions, both announced and unannounced, from reports submitted by employees at local Gannett offices. As of this morning, the count is up to 205.

Magazine publishers might want to catch the next flight to London to find out what the heck they’re doing right at The Economist Group. The publisher of The Economist just reported a 26% jump in profit on a 17% increase in sales in the first quarter. Circulation grew 6.4% to nearly 1.4 million while Economist.com ad revenue leapt 29% and page views climbed 53%. Don’t these people know the media is dying? Interestingly, The Economist enjoys a much hipper image in the US than it does in its native land. In fact, the company just launched a new video ad that portrays a young man walking on high wires across a European city, seeking to highlight its appeal to young readers.  The average Economist reader in the US is 39 years old. In the UK, where the magazine has a more serious image, the average if 47.

We’ve been working our way through the social media and journalism sections at OurBlook, a Web venture that seeks to combine some of the best attributes of blogging and in-depth book writing. Editor Gerry Storch and Founder Paul Mongerson, who both have extensive media experience, have posted more than 50 interviews and first-person opinion pieces from people who care about the future of journalism. We haven’t read them all yet, but here are some excerpts we noted from the 35 or so we’ve completed so far. More will follow later.

OurBlook is inviting more people to contribute to the discussion by signing up on its website. What’s a blook? It’s a cross between a blog and a book.

From Robert Brown on Social Media

Brown is President of RDB Consulting

“Web analytics is the mechanism that will drive the proliferation of targeted messaging across the Web to users via the ever-growing array of social media tools…[Mike] Orren [founder of Dallas-based Pegasus News] calls this convergence of media into one vast network ‘Web 3.0.’ The idea of a single website as a source of content is quickly becoming archaic. As Orren says, …’With Web 3.0, it no longer matters where the information lives. Once you post something, it will be quickly disseminated via social networks to those users who care about the information.’”

From Joe Shea on the Future of Journalism

Shea is editor-in-chief of The American Reporter

“The biggest issue is the failed model. Journalists need to own their own news publications, not simply toil for the people who own them…[T]here’s really no point in supporting other people with our work when we can support ourselves with it. The American Reporter was founded to make that possible when journalists are ready for it. We don’t care how long it takes; we always knew they would be slow to get off the corporate teat and start walking on their own.  When that happens, and great news organizations owned and operated solely by journalists who are their own bosses exist all around the world – that’s when a newspaper war will erupt, and the world will find journalism anew. It won’t be so boring then.”

From Michael Saffran on the Future of Newspapers

Saffran is addjunct professor of communication at Rochester Institute of Technology

“Lifting the newspaper/broadcast cross-ownership ban could benefit both newspaper and radio industries; however, rather than serving as an open-ended gift to media conglomerates, repealing the ban should be tied to stricter radio ownership limits. According to an FCC study, newspaper/television station cross-ownership enhances the quantity and quality of TV news and public-affairs programming. Radio could similarly benefit from partnerships between broadcasters and publishers because most newspapers (with a few notable exceptions) are, much like radio, inherently local. Thus, the addition of print reporters to the small news staffs (if they exist at all) of cross-owned radio stations could enhance local-radio news … an area in which local radio is currently underperforming.”

From If Newspapers Fold, We’ll Adjust by Gerry Storch

Storch is the editor of OurBlook

“I think what will replace the newspaper in [my hometown of] Naples, [Fla.], and newspapers elsewhere, will be a pricy on-line newsletter. It will have a cheap, barebones staff to cover the basic business of the town – the city council, the school board, the police beat – and a couple veteran pros to provide an insider’s knowledge of what’s going on and make it worthwhile for readers to cough up $100 a month for a subscription, or whatever it costs to make a profit.  So people who want straight news will still be able to get it. The media will continue but in a much different form, and they won’t be the mass media any more.”

From Paul Conti on the Future of Newspapers

Conti is an instructor in communications at the College of Saint Rose in Albany, N.Y.

“Frankly, my students want and expect everything ‘on demand.’ They are not specifically loyal to media brands. They do not care what the source of their media content is as long as it entertains or informs them.  If I were running a newspaper’s city room, I’d be sprinting to create more ‘TV News Stories’ that people can watch on their websites.  A few newspaper companies are doing this, but the vast majority [of them] simply send one of their print reporters out into the field with a substandard consumer camera to record a news conference.  Yes, that’s content, but it isn’t good content and it won’t attract younger readers. They need to mimic the styles that TV reporters do with visualizing stories. Every story in the newspaper should have a companion video version available on demand.”

From Sean Dougherty on the Future of Journalism

Dougherty is vice president at Stern + Associates, a public relations firm

“I am one of those old timers and I love print newspapers, ink stains and all, but that is no reason to ignore reality: the value of the placement is the journalist’s brand and reach, not whether or not the information originally appeared on paper. Online articles get forwarded, increasing influence. Bloggers prefer to blog about topics where they can link through to what they are commenting on.  Online articles are more easily fed into your own distribution channels, whether it is a personal blog, e-mail distribution list or website.  While streamed video clips are usually associated with sketch comedy like ‘Saturday Night Live’ or ‘The Daily Show,’ it is unlikely that Harvard University Professor Michael Porter’s recent interview on ‘The Charlie Rose Show’ was seen live as often as it was viewed online based on the number of bloggers who linked to the segment.”

From Andrew Degenholtz on the Future of Journalism

Degenholtz is president of ValueMags, a magazine subscription marketing agency

“Many anticipate that the modern day journalist will morph into the ‘backpack journalist,’ where not only good writing and grammar skills will be valuable, but taking photographs and shooting video will almost become a necessity. As we’ve already seen, the ‘citizen journalist’ also plays a large role in this new media landscape. Bloggers getting press passes to news events once reserved for the traditional media will only help hungry consumers get even more specialized information. But one thing remains the same: good writing is still good writing. That won’t ever change.  If you have something to say, people will read, no matter how it’s packaged.”

From Nigel Eccles on Future of Papers

Eccles is co-founder and CEO of UK website hubdub.com, “a prediction market where people trade predictions on the outcome of running news stories or future events.”

“Blogging is not nearly as big in the UK as it is in the US. For example, there are only a handful of high quality political blogs [in the UK] compared with hundreds in the US. One of the reasons that blogging is so popular in the US is that it is written in an informal and familiar style and tends towards sensationalism. The UK press is much closer to that style than the US press (where every other article seems like it is written for the Pulitzer Prize committee).” (Telegraph.co.uk photo)

From Paul Swider on Papers’ Future

Swider was a reporter with the St. Petersburg Times until he was laid off in May, 2008

“The larger issue, and the one that makes me so ‘popular’ with my erstwhile journalism colleagues, is humility, or its lack in the newsroom. Most reporters are well-meaning and believe they are doing a public service, but that is a legacy from an era when there wasn’t that much information available to the general public. Now that there is, to persist in the attitude that the newspaper is the source of all information is kind of silly. Most government meetings are televised, many documents are publicly available, dissatisfied workers that were the source for many an exposé can now publish directly themselves to the Web, so a journalist isn’t as indispensable as before, and may be superfluous in some contexts.”

From Louis Sarmiento on Social Media

The interviewer comments, “Big-name athletes and entertainment celebrities seem to have taken to Twitter because 1) they can control their message, 2) the message is short and non-taxing, 3) they bypass reporters, 4) they can have ‘contact’ with fans that really isn’t contact and 5) fans end up thinking they have contact though they really don’t.”