Google CEO Eric Schmidt has been one of the most vocal supporters of newspaper among the ranks of the digerati, so it must hurt him to pull the plug on Google Print Ads. When it launched the program two years ago, Google hoped Print Ads would not only be a revenue stream but also a sincere effort to bridge the print/online gap and inject new life into newspapers’ traditional business. Unfortunately, “It is clear that the current Print Ads product is not the right solution,” wrote Spencer Spinnell, Director of Google Print Ads, in a blog entry, “so we are freeing up those resources to try to come up with new and innovative online solutions that will have a meaningful impact for users, advertisers and publishers.”

Print Ads was a variation of Google’s ad brokering system that enabled advertisers to bid on space in member newspapers. Google eventually amassed over 800 newspaper partners. The program differed from a bigger initiative by Yahoo because Google targeted print advertising directly. Yahoo’s newspaper partnerships are strictly online. Spinnell’s announcement was tinged with regret. “We believe fair and accurate journalism and timely news are critical ingredients to a healthy democracy,” he wrote. “We remain dedicated to working with publishers to develop new ways for them to earn money.”

Will Slim Bid for Times Co.?

Now that Mexican billionaire Carlos Slim has loaned The New York Times Co. $250 million to meet its debt obligations, speculation is focusing on his motivations.  With a personal fortune estimated at more than $60 billion, Slim is one of the world’s richest men. Buying the Times Co. would add a new chapter in his storied career investing in telecommunications, retailing, construction, banking, insurance, railroads and mining. Unlike Sam Zell, Slim could finance the Times Co. with pocket change, meaning he could own one of the world’s greatest media brands without the overhead of having to meet onerous financial terms. Alan Mutter suggests that Slim could parlay his investment into an outright takeover, something no other investor has been able to attempt because of the Ochs Sulzberger family’s tight control of the company. He notes that the comparatively shallow-pocketed Rupert Murdoch bought Dow Jones for a much higher price. “If Murdoch could swing $5 billion for Dow Jones with only $8 billion in personal net worth, then imagine how much Slim could afford to pay for a trophy like NYT,” Mutter writes.

Journalism’s Distant Mirror

Writing in The New Yorker, Jill Lepore reminds us that newspapers have been declared dead before. Her historical account begins in 1765 and takes us through the crucial role that newspapers played in colonial America by fanning public outrage against British – and later American – rule. The Stamp Act, passed by Parliament that year, was widely thought to be the death of newspapers, since it affixed a tax to every page printers produced. But resourceful publishers persevered, even moving their presses by boat under the cloak of night to evade government enforcers.

Lepore notes that the concept of an impartial press is a relatively recent invention. “Because early newspapers tended to take aim at people in power, they were sometimes called ‘paper bullets,'” she writes. “Standards of journalistic objectivity date to the nineteenth century. Before then, the whole point was to have a point of view.” In fact, Benjamin Franklin, who could be considered the father of the American newspaper, didn’t see his role as being “to find out facts. It was to publish a sufficient range of opinion.” In that form, “Early American newspapers tend to look like one long and uninterrupted invective.”

This oppositional role didn’t just roil the British authorities. John Adams signed into law the Sedition Act in 1798, making it a crime to defame his administration. “Adams had come to consider printers a scourge,” Lepore writes. Adams’ successor, Thomas Jefferson, was an ardent supporter of a free press, but by the beginning of his second term, even Jefferson admitted to having thought about prosecuting some publishers.

While not framing the point explicitly, Lepore makes the case that partisan journalism of the kind practiced by bloggers isn’t necessarily a bad thing. Truth may be the casualty of unbridled opinion, but that was also the case in the 18^th century, when even Sam Adams occasionally made up stories to dramatize British cruelty. The fact that some newspapers published untruths didn’t make them any less vital to the establishment of a fledgling democracy. “Without partisan and even scurrilous printers pushing the limits of a free press in the seventeen-nineties, [author] Marcus Daniel argues, the legitimacy of a loyal opposition never would have been established and the new nation, with its vigorous and democratizing political culture, might never have found its feet.”

We feel compelled to note again that Newspaper Death Watch is cited in the article’s opening paragraph, although we differ with the author’s characterization of our tone as gleeful. We prefer to think of it as bemused.

Miscellany

The LA Times is girding for more layoffs. Russ Newton, the Times‘ senior vice president of production, sent a letter to the Teamsters union, which shared it with its members. “The Los Angeles Times has decided to take steps to further reduce its cost including, but not limited to, layoffs,” Newton writes. “[T]he Company intends to implement the cutbacks no later than March 15^th, 2009.”

Romenesko reports that Gannett newspaper boss Bob Dickey’s decision to fly from Virginia to Arizona to announce plans to sell the Tucson Citizen wasn’t entirely altruistic. In fact, Arizona appears to have been just a waypoint on a trip further west. Dickey is in Palm Beach, Calif. this week for the Bob Hope Chrysler Classic golf tournament.

Editor & Publisher‘s Mark Fitzgerald reviews the redesigned Chicago Tribune and pronounces it a “home run.” With its clean look, lack of jumps and liberal use of info graphics, the “to-go” edition of the Trib, which will only be sold on newsstands, “eloquently makes the argument that it’s time America’s big-city dailies seriously consider converting to a compact format,” Fitzgerald writes. The question is when the Tribune will simplify things and make the tabloid edition available to home subscribers, too.

Lee Enterprises reported a 69.3% decline in first-quarter profits as revenues dropped 13%. The company said it is further cutting costs and will ask shareholders to authorize a reverse stock split to comply with the minimum bid price requirement of the New York Stock Exchange listing standards, if necessary. In an unrelated move, the publisher of the Lee-owned Wisconsin State Journal and Madison Capital Times said it will cut 12 positions, mostly in editorial.

The World Association of Newspapers will postpone its annual congress because of the global economic crisis. The meeting was set to take place in Hyderabad, India in March, but only 250 delegates have signed up so far. That’s well below the 1,500 who usually attend.

Last summer we told you about Neighborsgo.com, a spinoff of the Dallas Morning News that uses a social network to anchor a community journalism initiative. Apparently it’s working. Editor & Publisher reports that Neighborsgo is being expanded to cover 47 neighborhoods, with each section featuring headlines, local restaurants, gas prices, education resources and crime news.

Media malaise continues to spread beyond the newspaper industry. Warner Bros. Entertainment is cutting its global workforce by 10% by laying off 600 people and leaving 200 vacant positions unfilled. Clear Channel Communications, which is another diversified media company, announced plans to idle 1,850 workers last week.

Hearst Corp. has officially notified employees of the Seattle Post-Intelligencer that they will all lose their jobs if no one buys the newspaper. This may have seemed obvious following last week’s announcement that the paper will be shuttered if a buyer isn’t found, but Hearst had to send a letter as a formality. A few people might be offered jobs at SeattlePI.com if the publisher elects to keep the website alive.

And Finally…

Here’s one to satisfy your inner voyeur. Nicholas White was trapped in an elevator in New York City’s McGraw-Hill building for 41 hours. It was a lonely ordeal, but White unknowingly had a security camera to keep him company. His plight is documented in a time-lapse video that condenses 41 hours to just a few minutes set to mournful music.

Tribune Co. and the New York Daily News* are looking at closing their foreign bureaus and outsourcing international coverage, The Wall Street Journal says. The beneficiaries would be the Washington Post and a Boston-based startup called GlobalPost. Under the arrangement being discussed by Tribune Co. and the Washington Post, Tribune would contract with the Post for international stories to be delivered to its portfolio of newspapers and would close dozens of foreign offices, saving the bankrupt company millions each year. There’s no word on how much of that coverage would be unique to Tribune, but that’s presumably an issue in the talks. The two companies have long had an alliance via a joint news service.

The New York Daily News deal has Mortimer Zuckerman’s paper contracting with GlobalPost for its international coverage. The deal is the first big win for GlobalPost, a venture funded by deep-pocketed investors, including former Boston Globe publisher Benjamin Taylor. The co-founders are Charles Sennott, a veteran Globe foreign correspondent, and Philip Balboni, former president of New England Cable News. You can read all about the site’s mission and dive into two of the longest biographies we’ve ever seen on the site’s mission page.

Like The Politico and Politicker, GlobalPost is attempting to create a new publishing model leveraging online efficiencies, reader involvement and diversified revenue. Part of GlobalPost’s revenue is to come from syndication deals like the one with the Daily News. Stories will mostly be contributed by local stringers and embellished with reader input and reports from other online resources. GlobalPost thus hopes to deliver quality journalism at a fraction of the overhead cost of a foreign bureau. The Daily News deal will clearly put it on the map.

Blogger Lisa Williams has an interesting take on GlobalPost which Amy Gahran embellishes upon on the Poynter Blog. Williams suggests that news publishing may be moving toward an on-demand model similar to the one emerging in the computer industry. “Cloud computing” is all the rage in IT right now, with Amazon’s EC2 service blazing the trail. EC2 enables businesses to rent computer power only as it’s needed, outsourcing the expensive and specialized task of maintaining corporate data centers to specialists who serve multiple clients. Williams suggests that a similar model could provide news at a much lower cost than full-time staff. It’s kind of a super stringer model made more efficient by the Internet.

Gahran likes the idea, although she differs with Williams’ theory that this could spell the end of beats. General assignment reporters will still be needed, she says, but much of the specialty reporting could be provided by independent journalists and organizations of journalists, the latter scenario being The Politico and GlobalPost models. “You could have a situation where various kinds of organizations could purchase reporting capacity to make sure the stories or communities that matter to them get covered — whether that’s a town, a government agency, a business trend, legislation, a water quality issue or sports,” she writes.

*An earlier version of this article incorrectly referred to the New York Post instead of the Daily News.

Star Tribune Files for Bankruptcy

Add the Minneapolis Star Tribune to the list of newspaper publishers now dwelling in the purgatory of Chapter 11 bankruptcy. The filing “was necessary to reduce our operating costs, restructure our debt and create a financially viable business for the future,” Publisher Chris Harte wrote in a note to readers. Last month, the Strib said it needed $20 million in union concessions to sustain operations. But talks with the union broke down last week. The union appeared surprised that management did exactly what it said it was going to do. “The unions at the Star Tribune are conscious of the newspaper’s financial plight and the state of the industry nationwide,” said a union official said in an account in the Kansas City Star. However, consciousness apparently wasn’t enough.
The value of the Star Tribune has collapsed since McClatchy paid $1.2 billion for it in 1998. Its balance sheet currently lists assets of about $493 million and liabilities of $661 million. Chapter 11 gives is the chance to shed some debt and restructure is assets under court protection. In practice, companies rarely emerge from Chapter 11 looking anything like they did when they went into bankruptcy.

Layoff Log

• The Boston Globe will furlough 50 employees through a buyout and layoffs, if necessary. This is the fifth staff reduction at the paper since 2001 and the first to be limited to the newsroom. The cuts will reduce the Globe’s editorial staff to 329 people, down 39% from its peak newsroom employment of 552 in 2000. The local Guild boss said future cuts should come from the management side, as the worker bees have already given more than their fair share.
• Gannett’s announcement earlier this week that it would require all employees to take a week off without pay in the first quarter sparked a frenzy of media coverage, but we found the furor surprising. Manufacturing companies have used this tactic for years to preserve jobs and the modest 2% across-the-board pay cut seems bearable compared to the alternative of idling so many people. We agree with Alan Mutter’s take: By sharing the pain, Gannett avoids having to cut 600 jobs. Isn’t that a more noble objective?
• The Christian Science Monitor will cut its editorial staff by 15 or 16 people, which the mangled math in a Boston Globe story calculates to be 7%. Since the CSM employs 90 editors, our calculator says that’s more like 16%, but whatever. The Monitor is preparing to go from weekday to weekly print frequency in April and adjusting it staff size accordingly.
• The Schenectady Daily Gazette will cut 16 positions in its fourth round of layoffs in a year.
• The publisher of Vermont’s Rutland Herald and the wonderfully named Barre-Montpelier Times Argus will lay off 14 people, or about 9% of its staff.

And Finally…

Nick Christensen of the Hillsboro Argus has tongue only partly in cheek as he makes a somewhat persuasive argument for a government bailout. Give me my billions, he says. It won’t influence me. Christensen does point out correctly that judges and district attorneys are among the government watchdogs who are also paid by the institutions they monitor.

If you need another indication that citizens can be important sources of news coverage, you only need to consider yesterday’s crash of a US Airways jet in the Hudson River. The first report of the crash appeared on Twitter at 3:28, just two minutes after the plane took off. Twitter was also the first outlet to carry news that a flock of geese was probably the source of engine troubles that forced the pilot to ditch the plane. The photo below is from CNN’s iReport citizen news service. A video featuring more images taken by witnesses can be seen here.

Last night I attended a dinner hosted by the Boston Globe for the stated purpose of gaining insight from a small group of new-media enthusiasts about its Boston.com website. The evening turned into a wide-ranging discussion about the future of the Globe itself, with no clear consensus emerging. I was struck by the vision that the Globe showed when it launch Boston.com 13 years ago and how that vision was later clouded by conventional newspaper wisdom.

Boston.com was originally intended to be a destination site for residents of the Boston area.  It was launched at a time when nearly every metro daily was going online, most under their own brands.  The Globe took a different approach: Boston.com would be branded and focused on a region rather than an existing print property. The Globe even enlisted some local media partners to contribute content and share in the profits. Those partners have mostly fallen away over the years, but the vision of the newspaper’s website as a geographic focal point was a precursor of the “hyper-local” concept that’s so popular in the industry today.

Blurred Vision

That vision didn’t carry through, though. With news editors running the show, Boston.com over the years increasingly looked like the front page of the Globe. National and international headlines shared the home page with local copy and the site lost its regional distinctiveness. Suburban bureaus were axed in the name of cost savings.  As a resident of a nearby town, I personally found that my information needs were better met by small sites that were tightly focused on topics or regions that matter to me.

Now the Globe is trying to get back some of the distinctiveness of Boston.com.  There’s no question that the site is more local today than it has been in years, but the online landscape has changed as well.  Some of the questions that came up during the meeting:

Does a website even matter anymore? So many people get their news through feeds and aggregators that the idea of a website as a destination may be outmoded.

Is brand important? Maybe The New York Times brand is, but does the Boston Globe‘s brand strike enough of a chord in people’s minds to distinguish its value?  Brand may be the only thing newspapers have left in the long run, so that’s a critical question.

How local does the site need to be? Many communities in the greater Boston area are served well by e-mail lists, community newspapers and even individual bloggers.  How granular does a major metro need to get in order to be truly hyper-local?

Who’s going to do the grunt work? Part of the service that major metro dailies perform is sitting through tedious budget committee meetings and city council sessions. It’s a little-appreciated loss leader for newspapers, but it’s essential to their watchdog role.  What blogger in his or her right mind is going to do that?

In my humble opinion, the Globe should do the following:

• Create Huffington Post-style bureaus in local communities, with news provided by stringers and citizens.  Many reporters for community weeklies make little or no money, so the exposure in the Globe would be an incentive for them.

• Borrow a page from Yelp.com, Going.com and Angie’s List and become the dominant source of buying advice for local products, services and activities.

• Ramp up its custom publishing arm to help local companies become legitimate publishers in their own right.  Many businesses want to take advantage of new media to do this, but their efforts are mostly terrible.

• Treat print as a cash cow and manage it downward gracefully while building new revenue streams.  Further cutbacks are inevitable, but it would be nice to balance that with some growth.

• Take a hatchet to the sales force, focusing on hiring and retaining people with classified advertising experience.  Future revenues are going to come from local businesses, so invest in the people who can sell to them.

The group from the Globe listened attentively and appeared to take the input seriously.  Unfortunately, the barn door has already closed on print and the declining revenue picture offers fewer options for investment with every passing day. But Boston.com is a nice website.

Envisioning a Future Without the Times

Writing in the Atlantic, Michael Hirschorn starts with an outrageous statement: what if The New York Times folds its print newspaper four months from now? Okay, it’s not likely to happen, Hirschorn writes, but the way The New York Times Co. is spiraling downward, the Big Apple’s intelligentsia should prepare for a day when they won’t have a newspaper to read in their SoHo coffee houses.

Hirschorn goes on to present a well-written summary of the changes readers are likely to see as newspapers exit the scene. “Common estimates suggest that a Web-driven product could support only 20 percent of the current staff; such a drop in personnel would (in the short run) devastate The Times’ news-gathering capacity,” he notes, suggesting that international coverage will almost disappear in the process. “Internet purists may maintain that the Web will throw up a new pro-am class of citizen journalists to fill the void, but for now, at least, there’s no online substitute for institutions that can marshal years of well-developed sourcing and reporting experience.”

Ultimately, emerging sources like Huffington Post and Talking Points Memo may create a new model for participatory journalism, but the quality of services they provide will be more erratic and unpredictable that those readers have known in the past. New-media operations needs to maintain low overhead. Huffington “is the prototype for the future of journalism: a healthy dose of aggregation, a wide range of contributors, and a growing offering of original reporting.” Since few of those contributors are paid, what you see is what you get.

For Better or Worse, China Invests in Newspapers

“As international media is contracting, China is going in the other direction,” says Doreen Weisenhaus, a media law professor at the University of Hong Kong, in an opinion piece by Forbes‘ Robyn Meredith, about China’s ambitious plans to expand its international media presence. Meredith says China plans to spend $6.6 billion to build the staffs of China Central TV, People’s Daily and other news organizations both on the mainland and around the world.  US bureaus are planned, among others, and new Chinese-owned, English-language newspapers will be launched in the U.S. and China.

The problem, Meredith says, is that China doesn’t have a free press.  Although controls were loosened somewhat during the 2008 Summer Olympics, there’s no indication that these expanded news organizations will be allowed to say anything that displeases the government. The result could simply be an expansion of the Chinese propaganda machine.  And if someone gets the idea to spend some of that $6.6 billion buying up distressed US newspapers, well, it’s not a pretty thought.

Layoff Log

• Even as it expands its footprint into the US market, the Financial Times is still feeling the pinch. The newspaper will cut 80 positions across its global operations. The British have their own word for this: redundancy. We would still prefer to be laid off than found redundant.
• The Billings Gazette is laying off eight people.  There’s no word on what percentage that is of the total staff size.

Miscellany

We’ve noted several examples of newspapers burying the lead in reporting on their own layoffs.  So give credit to the Seattle Post-Intelligencer for doing the opposite.  Not only did SeattlePI.com cover the announcement of its likely sale or closure in detail, but now the paper’s managing editor, David McCumber, has launched a blog to document the 60 days until decision time. It’s an honest, personal and well-written account of the many thoughts are no doubt going through his mind as the clock ticks away.

Erica Smith, whose Paper Cuts maps mashup is de facto official record of newspaper industry layoffs, has put together a nice list of newspapers that use Twitter. Such a roster is automatically out of date the minute it’s posted, but it gives you a good idea of how various news organizations are segmenting their coverage and also where the list of followers is growing fastest. You can also see who gave up early. BTW, the Paper Cuts counter has been reset for 2009.

Veteran travel editor John Flinn recently took a buyout package from the San Francisco Chronicle. He’s not bitter or angry, but he’s a bit wistful about how the industry’s troubles are affecting his specialty area. Travel scribes are a different breed of feature writer, each with a unique voice and a different way of going about the job. Sadly, they are being replaced by “utility infielders” with their top-10 lists and “charticles.” But Flinn isn’t looking back. He’s hitting the road soon in his VW Westfalia pop-top camper van.

Give-Us-A-Break Department: “The vast majority of Americans believe the U.S. media industry’s coverage of the faltering economy is actually contributing to the economic crisis by ‘projecting fear into people’s minds.’ That’s the finding of a survey of 1,000 U.S. adults released Thursday by Opinion Research Corporation. The survey, which was conducted last month via telephone, found that 77% of respondents believe fear mongering by U.S. media outlets is negatively impacting consumer confidence in the economy.” – MediaPost, 1/2/09.

If you want to start the week off on a good note, don’t read this forecast of all the newspapers, magazines and, yes, websites that are likely to close this year.

The Toronto Globe and Mail may be about to join the layoff log. The newspaper is looking to reduce its workforce by about 10 percent, or between 80 and 90 jobs, according to a brief statement on its website. There haven’t been layoffs at the Globe and Mail since 1982, and even then all the people were rehired under the terms of a union contract. Publisher Philip Crawley cited an anticipated $40 million drop in advertising this revenue as unprecedented. “The pace and the severity of the decline is like nothing we’ve seen in recent years,” he said. The buyout offer is generous: three weeks of salary, up to a maximum of 18 months’ pay, for each year of continuous service. The Globe and Mail operates under a tighter set of union restrictions than most North American newspapers. The Financial Post says the union contract forbids the paper from cutting staff without opening its books for examination.

The Evening Sun of Hanover County, Pa. will cut nine reporter and editor positions from its 25-person newsroom. “Hopefully, readers won’t notice any decline in coverage,” as a result of the loss of 36% of the staff, the editor-in-chief said. However, copy editing is badly needed, as demonstrated by this quote from the Evening Sun‘s publisher: “There is no intention to ever not have a newspaper in this community.”

A reader reports that the Selma (Calif.) Enterprise and nearby Kingsburg Recorder have moved their printing operations 25 miles away to the Hanford Sentinel.  Between seven and 12 people have been laid off, the reader said. However, this report is unconfirmed.

Struggling to meet a goal to reduce expenses by $50 million in 2009, Chicago’s Sun-Times Media Group has asked all its unionized employees to agree to a 7% cut in compensation. The cuts can come from salary, benefits or a combination of the two. The union said it’ll think about it. The Chicago Sun-Times has also put forth a proposal to outsource copy editing to an unspecified contractor, possibly in India or Canada. The union definitely didn’t like that idea. And the paper has laid off an unspecified number of people in its advertising group.

The Newman (Ga.) Times-Herald has reduced its staff by 10 people, or 15%, but expects to be around for at least another 144 years, according to a gung-ho editorial bylined by both its president and publisher.

Rumors have been floating around for months that the Seattle Times would shut down, so employees at rival Post-Intelligencer were understandably shocked when a local TV station reported a single-sourced story yesterday that the paper is being put up for sale and would be shut down if no buyer is found. No one, from the P-I‘s publisher on down, is confirming the report or even knowledge of the rumor. This doesn’t stop the Seattle Times from quoting numerous staff and local officials commenting about how sucky a shutdown would be, some of them speaking in the present tense. “I think it’s a horrible tragedy,” said Seattle City Councilman Nick Licata, referring to a single-sourced story that no one has confirmed.

Speculation is focusing on a change of management at P-I owner Hearst Newspapers. Incoming President Steve Swartz reportedly sent employees a memo outlining “100 Days of Change” beginning in early 2009, but offered few specifics. Under the joint operating agreement, either of Seattle’s two daily newspapers must be offered for sale for 30 days before being shut down. The report comes as a particular surprise because well-reported financial troubles at the Seattle Times have had most locals thinking it would be that paper going down first. Keep in mind, however, that this is still a single report based on a single source at a single local TV station. The fact that the publisher of is the P-I‘s main rival denies awareness of it should be taken seriously.

A Benevolent History

Jack Shafer’s account in Slate of how newspapers innovated – and then failed – on the Web is a sympathetic story about an industry that’s often criticized for insularity. In contrast to the popular image that newspaper executives were clueless about online competition, Shafer declares that they were actually paranoid about it. In fact, newspapers threw away a lot of money trying to create early online business models.

The Washington Post had constructed its own interactive service by 1994 and nearly every major newspaper was online by 1999. “Newspapers deserve bragging rights for having homesteaded the Web long before most government agencies and major corporations knew what a URL was,” Shafer writes. In earlier years, Knight-Ridder sank $50 million in an Internet precursor called videotex and newspapers had experimented with fax and even audio editions in the early 1980s.

The problem wasn’t innovation, Shafer notes; it was attitude. Newspaper companies’ approach to these disruptive technologies was first defensive and then opportunistic. Once executives were satisfied that their revenue base wasn’t going away they sought to use new media to find new revenue streams as long as it didn’t mess with the model. Commenting on videotex, he writes, “Once [newspaper companies] they determined that nobody could make money from videotex and the technology posed no threat to the newsprint model, they were happy to shutter their ventures.

But that’s the problem. New technologies never succeed when their use is restricted like that. Shafer calls these “nongenerative” services, meaning that no third party industry can innovate on their platforms. AOL is an example of this. Nongenerative services almost always lose out to “generative” media like the Internet because customers can add their own value. That’s basically why the personal computer has 90% market share and the Mac has 10%. Intel CEO Andy Grove titled his book Only the Paranoid Survive. The newspaper industry had the requisite paranoia, but it didn’t have the innovative attitude to match.

Miscellany

Residents of the New Mexican cities of Santa Rosa, Tucumcari, Clovis, Portales, Lovington and a couple of dozen other cities and towns that currently get home delivery of the Albuquerque Journal will have to find something else to read. New Mexico’s largest daily newspaper, plans to stop home deliveries and rack sales in more than 30 communities around the state. This despite the fact that the Journal lost its only competitor, the Albuquerque Tribune, nearly a year ago. The cost of delivery was just too steep, the publisher said. Elsewhere in New Mexico, Freedom New Mexico stopped home deliveries of the Quay County Sun last week.

The Newark Star-Ledger‘s Paul Mulshine contributes an op-ed piece to The Wall Street Journal that reads at first blush like another curse-the-darkness ranting by an aging journo about the unfairness of it all, but that ultimately makes a persuasive case that no blogger in his of her right mind is going to be caught dead covering city council meetings for free.

McClatchy Watch notes a case of online cluelessness by company management. Responding to rumors that McClatchy was closing its Washington bureau, CEO Gary Pruitt sent off a memo to employees scolding them for spreading the rumor without checking with company management. Of course, it’s management’s responsibility to head off rumors quickly, not employees’ responsibility to verify them. If McClatchy had its internal communications act together, there wouldn’t be an audience for a McClatchy Watch.

Layoff Log

• The drip, drip, drip of layoffs continues at the St. Louis Post-Dispatch: another 39 people have lost their jobs, including 14 in the newswroom. The AP story reckons total announced cutbacks at the P-D amount to 270 in the last 16 months. (Via PaidContent.org)
• The Winnipeg Free Press is begging employees to accept a buyout in order to avoid laying people off next week. The publisher seeks to reduce headcount by about 5%.
• The Buffalo News is offering buyouts to about 300 workers. There’s no word on how many jobs the paper is seeking to eliminate. A similar offer went out last August to 107 employees, but only about a dozen accepted.
• Dow Jones is freezing salaries for a year, reports MediaBistro. Unlike most media companies, Dow Jones has so far managed to avoid major layoffs.
• NJN Publishing, which produces four weekly newspapers in New Jersey, laid off 25 full- and part-time employees, or about 17% of its staff.

And finally

In a print market that’s hemorrhaging, The Slammer is one newspaper that’s flourishing. Its “newsstand profit margin is four times that of most local dailies, and its circulation has grown to 29,000 – up nearly 50 percent from 20,000 just last year. At more than 500 convenience stores across North Carolina, it’s selling at a buck a pop,” writes The Christian Science Monitor. The secret: The Slammer is full of mug shots, crime reports and allegations of misdeeds. “The men and women, with their dour mugs, bloodied noses, and booze-induced grins, have been arrested for everything from skipping a court date to robbing a food mart. It is, in essence, the local police blotter writ large,” the Monitor writes.

Journalism ethicists bemoan The Slammer‘s perverse appeal, but the genre is spreading. Two papers with a similar format have sprung up in Florida and The Slammer is planning to expand its North Carolina distribution.

The secret isn’t just the mug shots and wrongdoings. It’s also the snarky style the paper uses. It sometimes mocks repeat offenders and hosts weekly features like the worst late-night arrest hairdos. Such public flogging is a “step up from the stocks,” says one critic. But victims don’t seem to mind too much. In fact, “the chief complaints the weekly paper gets come from perps complaining that their photos didn’t get printed,” the Monitor writes.

The media blogosphere has been buzzing over a short interview with Google CEO Eric Schmidt in Fortune in which the executive laments the loss of newspaper journalism but doesn’t offer to lift a finger to help the industry financially. Schmidt’s remarks may appear disingenuous at first, but if you consider Google’s philosophy, they’re actually consistent with his previous statements and make sound business sense.

Among the digerati, Schmidt has been outspoken in his concerns about the damage that the industry’s troubles are inflicting on the public’s right to know. However, it makes no sense for Google to intervene to prop up a business model that doesn’t work any more. Google stands to lose plenty from the industry’s collapse. Newspaper content is one of the most valuable assets in Google’s index and users of the company’s news aggregation service are its most attractive demographic audience. Newspapers “don’t have a problem of demand for their product…People love the news,” he tells Fortune.

Google is in an awkward situation: it has the money to prop up the industry, but doing so would be bad business judgment. Schmidt notes that Google can do nothing about the structural problems that plague the industry. Investing in failing business models is simply throwing good money after bad. So, to some extent, people like Schmidt must stand by and watch helplessly as a business that they respect and admire comes apart at the seams.

Schmidt’s position is based on sound business judgment, the kind of judgment that has gotten Google where it is. He shouldn’t be blamed for doing what’s best for his shareholders and employees.

It looks like a chain of Connecticut newspapers that were just days from closure will continue publishing under the guidance of a New Englander. Longtime newspaper executive Michael E. Schroeder (left) has bought the group that includes the Bristol Press, the New Britain Herald and three nearby weeklies. Schroeder was most recently publisher of BostonNOW, a free daily with a promising future that abruptly closed under unusual circumstances last spring. Schroeder was previously with Newsday. There’s no word on what he plans to do with his new possessions, but the papers will continue to publish on their current schedule for now. “We look forward to building upon the rich history of these properties,” reads Schroeder’s quote from the press release.

Selling Local

Steve Outing has a dozen tips for how newspaper companies can make money. Some are amplifications of his earlier ideas and a few are brand new. Two themes run throughout: create lots of niche products and learn to sell them that way.

It’s the latter theme that doesn’t get as much press as it should. Newspaper industry pundits tend to focus a lot on what needs to be fixed on the editorial side of the house (still plenty) but we don’t read that much about ad sales. While admitting that he’s an editorial guy, Outing addresses that issue repeatedly.  Success in the emerging hybrid print/online world demands that ad sales staffs be able to sell targeted advertising aimed at niche interests. This is antithetical to many print sales veterans, who have grown up in a world that demands skill at selling 26-time print schedules to large department stores and cell phone companies.

This is a problem for newspaper companies.  In our own experience working at an Internet publisher a decade ago, we found that sales reps recruited out of the print world were often disasters at online sales.  They didn’t understand how to define the value of niche markets and they sometimes appeared to believe that signed contracts in the few hundreds or thousands of dollars was beneath them.  Yet this is the only way that advertising works online.  The most successful print refugees often came from the classified sales field, where success was all about closing lots of small deals.

Outing’s recommendations deserve careful consideration, as do most of his ideas.  What he doesn’t address in this column is the thorny issue of how to equip a generation of sales reps with a whole new set of skills.  In our experience, it’s difficult at best and often impossible.

Shooting Holes in “Hyper-Local”

Last month, we reported on new Gallup research that shows the Internet closing the gap with local newspapers as people’s preferred news source. Now David Sullivan of “That’s the Press, Baby” has taken Gallup’s own numbers and sketched out a counter-intuitive case that newspaper readership is actually stable or growing among the young people who are widely believed to be abandoning the medium. What’s more, he makes an argument that readers are gravitating to national news and not to the hyper-local content that’s frequently held out as the industry’s salvation.

A big factor could have been last year’s election, Sullivan posits. People just couldn’t get enough of news from the campaign trail, which is too bad because local newspapers were busily paring back national coverage in the name of being more local. There’s no question that national newspapers saw the least erosion in circulation during the last year. Could it be that hyper-local isn’t a obvious as solution as it seems? We weren’t able to give Sullivan’s number-crunching adequate scrutiny, but his logic looks sound. Please have a look and post your comments here.

Here Comes Shirky

If you haven’t read any Clay Shirky, you’re in for a treat. The NYU adjunct professor and author of Here Comes Everybody has a chat with the Guardian about the future of media that yields several fine quotes:

• Newspapers “were such a good idea for such a long time that people felt the newspaper business model was part of a deep truth about the world, rather than just the way things happened to be.”
• “The 500-year-old accident of economics occasioned by the printing press – high upfront cost and filtering happening at the source of publication – is over. But will The New York Times still exist on paper? Of course, because people will hit the print button.”
• “Imagine only having one browsing copy of every book in a bookstore. You could say ‘Malcolm Gladwell’s Outliers looks good’, and out pops a brand new copy. Why does a bookstore or a publisher have to be in the shipping and warehousing business?”

Layoff Log

• The Springfield (Mass.) Republican plans to cut 22 full-time and 14 part-time positions, although the cutbacks won’t affect news or sports staffing. There was also some good news for the Republican: it will soon begin printing the Record-Journal from nearby Meriden, Conn.  Apparently, the Connecticut paper’s 30-year-old presses were no longer up to the task. The bad news: the Record-Journal is eliminating 24 full-time and 32 part-time jobs.
• The Wyoming Tribune Eagle revealed that it has cut 14 positions in the past year, but didn’t say how many people it employs. Two more were laid off this week.
• Oklahoma’s second largest newspaper will lay off 28 employees, 26 of them in the newsroom. The Tulsa World said the cuts amount to about 5% of the workforce.
• The Anchorage Daily News is shrinking and re-sectionalizing to accommodate smaller issue sizes. Here’s Editor Patrick Dougherty’s super-nice explanation.

Miscellany

Expect many more papers to follow the lead of Detroit’s Free Press and News this year. Hernando Today, a daily produced by The Tampa Tribune, will cut back to five days later this month by eliminating its Monday and Tuesday editions. Founded as a weekly in 1981, Hernando Today went daily in 1996. It covers Florida’s Hernando County.

Detroit-area writer Dave Hornstein has an interesting history of the newspaper wars – or lack thereof – in Detroit. The miserable condition of the two dailies in that city is largely self-inflicted, as Hornstein tells it. The killer was a bitter battle between newspaper management and labor unions that led to a lockout, large circulation declines and $500 million in losses in the late 1990s. Add to that a couple of ownership changes and major modifications to the joint operating agreement and you have two organizations that were severely weakened when the recession hit. Under those circumstances, it’s not surprising that Detroit was the first city to swallow the bitter pill it did last month.

 Richard Pachter says the new book, The Man Who Owns the News: Inside the Secret World of Rupert Murdoch, is well worth a read. The inside scoop on what went on with Murdoch’s Wall Street Journal acquisition is worth the price of admission (a modest $19.77 on Amazon) and the reviewer praises author Michael Wolff for maintaining balance in a book about a man who inspires strong opinions from both fans and foes. Interesting tidbit: while Murdoch’s Fox News is often criticized for its right-wing slant, the media mogul’s Sky News network in the UK has a liberal tone. Murdoch is politically conservative, but his current wife has broadened his thinking.

Steve Yelvington has created The Shutdown List, an interactive timeline of newspaper closures. The site appears to be more of a programming exercise than an actual tracker, but it’s a lot slicker than our lousy RIP list to the left. You can submit your own candidates for inclusion.

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’re presenting them as a series of posts entries over four days. Tomorrow we’ll conclude with our favorite quotes of the year.

Creative Solutions

A group of Ohio newspapers got together to share stories and even reporting assignments in a novel response to cost pressure. The Cleveland Plain Dealer, Columbus Dispatch, Toledo Blade, Cincinnati Enquirer and Akron Beacon Journal now post all their daily stories on a private website where editors can pick whatever they want and publish it in their own pages. The tactic has now been tested in several other parts of the US.

Pasadena Now, a small weekly, fired its entire editorial staff and farmed out coverage to a staff of Indian writers recruited on Craigslist. Publisher James McPherson pays the virtual staff about $7.50 per 1,000 words, compared to the $30,000 to $40,000 he was paying each reporter annually. The Indian writers “report” via telephones, web harvesting and webcams, with support and guidance from McPherson and his wife.

Neighborsgo.com, a spinoff of the Dallas Morning News, uses a social network to anchor a community journalism initiative. Local residents create profiles and post information about their interests, and some celebrities are emerging, like the Helpless Housewife (right). Every week, editors dig through content submitted by citizens and produce 18 local print editions.

Research and Markets released a report entitled “Offshoring By US Newspaper Publishers” that sees big growth in the newspaper outsourcing industry, particularly in India. About 2,300 people were employed offshore to serve US and UK newspaper companies in July, 2008, the report said. However, “The total offshore opportunity from newspaper publishers is estimated to be approximately $3.5 billion,” in the long run.

A team of enterprising publishers in the UK produced a four-page newspaper created entirely by hand. “Every word and every image and every mark of any kind in The Manual was drawn by a team of volunteers – mostly illustrators,” the website says. The group foresees a day when “handmade qualities can transform newspapers from ‘junk’ to collectable.

The Politico, a Washington-based boutique news service that specializes in Capitol Hill coverage, signed up more than 100 newspapers for its news service, including the Arizona Republic, Des Moines Register, Atlanta Journal-Constitution and Philadelphia Inquirer. Launched in early 2007, the specialized print/online/broadcast hybrid focuses exclusively on politics, is reportedly profitable and has become a must-read for political junkies.

CNN announced plans to challenge the Associated Press with its own wire service. The AP suffered subscriber flight in 2008 as several large newspapers have canceled their subscriptions, claiming the price is too high.

The Chicago Sun-Times offered 44 copies of its Nov. 5 front page on eBay as a “museum wrap fine art giclée print on canvas.” Nov. 5 was a rare bright spot in an otherwise disastrous year. The historic election created a brief surge of demand and many publishers sold out that day’s issue.

The Sun-Times had another idea to attract readers: It brought back dead columnists. “Vintage” columns written by Chicago institution Mike Royko began appearing in August, some 11 years after Royko died. The first one was about a Windy City citizen who was also dead.

Brave New World

Huffington Post employee Mayhill Fowler captured a three-minute rant by Bill Clinton about a Vanity Fair report that questioned the propriety of his post-presidential behavior. Fowler didn’t identify herself as a reporter but said she had the video camera in plain view while Clinton was talking. The LA Times account describes the recorder as “candy bar-sized” and Clinton claims to have not known he was being recorded.

CNN reported on a Yahoo employee who Twittered his layoff in February and gained an eager following. Ryan Kuder eventually took a job from the hundreds of leads contributed by his followers . His story was covered on prominent blogs and in mainstream media.

Talking Points Memo was awarded a George Polk Award for its coverage of the firing of eight United States attorneys. The New York Times account pointed to the difference between the new breed of online reporting and traditional print journalism. Chief among them is the involvement of readers in the process. Editor Joshua Micah Marshall has even been known to give “assignments” to his readers, asking them to comb through official documents.

Gutsy Moves

Monitor Editor John Yemma

The Christian Science Monitor said it is all but exiting the print business. Management chose the paper’s 100^th anniversary year to make the shift, attracting worldwide attention. The Monitor‘s dramatic move legitimized frequency cuts as a survival tactic. Other papers have followed its lead.

Editor & Publisher columnist Steve Outing cancelled his newspaper subscription and wrote about it at length, invoking a deluge of scorn from newspaper vets. Outing stuck to his guns.

Tampa Tribune intern Jessica DaSilva documented a contentious meeting about the need for change at the newspaper and posted the editor-in-chief’s comments on her blog. The young woman endured a torrent of abuse from veteran journalists, including many personal insults, as more than 200 comments piled up on her blog. The incident dramatized the industry’s difficulty in dealing with change.

Land of the Rising Seniors

Newspaper sales in Japan are 2.5 times those of the US as a percentage of the population and journalist layoffs are all but unheard of. The reason: the population is declining. The percentage of children 14 and younger is the lowest it’s been in 100 years and the overall population of Japan is expected to decline by a third over the next 50 years. The lack of a new generation of Web-savvy upstarts means papers have less pressure to move online and figure out how to serve a new audience.

Just Plain Fun

The Onion offered a tutorial in how to write a provocative magazine cover line (right).

A tongue-in-cheek investigation by IowaHawk rounded up recent incidents of criminal activity by journalists and concluded that newsrooms are at risk of becoming a “killing field.” Of course, the reporters could have conducted the exercise for lawyers, accountants or plumbers and come to the same conclusion. The best line was from Glenn Reynolds of Instapundit: “I think it’s unfair to single out journalists as thieves, or violent, or drunks, or child abusers. Sometimes they’re all of the above.” The chart is amusing, too.