Happy Double Ten Day, everyone. In Taiwan, they’re setting off firecrackers, dancing in the streets and still fretting about the loss of the mainland.

Tampa Bay Tribune: “Um, Never Mind.”

Tampa Bay residents took a break from following the success of their hometown baseball team to scream bloody murder about recent changes to the hometown newspaper. The Tampa Bay Tribune redesigned just one week ago, collapsing multiple news sections into a single main section and reorganizing several features. The paper also broadly cut the length of news stories.

The changes apparently didn’t sit well with readers, some 300 of whom canceled subscriptions while 10 times that many called or wrote letters of protest. “Apparently the folks who came up with the idea for New Coke have finally found employment designing newspapers,” read one letter.

Tribune executive editor Janet Coats listened, and it didn’t take long for her to issue a mea culpa and to promise immediate changes, including a return to sections. “People want sports in a separate section. . . they want to be able to hand sections around. Turns out, we had really disrupted the way people communicate with each other in the morning,” says Eric Deggans’ account on TampaBay.com.

Give the Tribune credit for thinking outside the box, for listening and for responding quickly to comments. In atmosphere of crisis, institutions don’t have the luxury of researching their decisions to death, and they shouldn’t have the arrogance to stick with them in the face of strongly negative reaction. We believe the Tribune will get brownie points from its readers for listening, which it richly deserves, because it must’ve been a helluva rough week in that newsroom.

Miscellany

Journalism iconoclast Patrick Thornton asks readers to take themselves back 10 years and describe how they would do journalism differently. Always perceptive commentator Tim Windsor responds with a 15-point laundry list of suggestions, many of which would work just as well today. There are a few disconnects in Windsor’s commentary – mySQL was barely known in 1998 — but his advice is sound for publishers who still talk about “eyeballs” and “lock-in.” (via Mark Hamilton)

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A comment posted on Gannett Blog notes that revenues at USA Today are running 11% under plan on a budget of 1% under plan. “Someone has to make up for that 10 percent difference,” the anonymous commenter writes. “That is not even taking into account a prospective collapse in Christmas advertisements.” USA Today employees are wondering if they should file for back overtime pay given the likelihood of layoffs.

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Newsosaur Alan Mutter has a creative idea for the growing ranks of newspapers that are scrapping unprofitable Monday editions and scaling back to six days a week. Why not create a special interest edition on a popular topic like sports and deliver it free on Mondays instead? The savings achieved by axing a single edition don’t amount to much in light of the formidable fixed costs that most newspapers maintain, Mutter says. Newspapers would be better off swallowing the modest incremental cost of continuing to publish on Mondays while giving readers a product they really want and salespeople something exciting to sell. It makes sense to us.

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The Wall Street Journal confirms speculation that the New York Times will shut down the web site of sister paper International Herald Tribune and host the news instead on a co-branded “global edition” of NYTimes.com. The Journal also reports that the Houston Chronicle will lay off 10 employees after failing to reach its goal of 90 volunteers for a buyout program. (via Romenesko)

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The UK’s Express Newspapers group has been so shaken by circulation declines that it has sharply cut back on staff and taken to letting some reporters post their stories directly to the printed page. The resulting gaffes prompted one unidentified staff member to send a sharp rebuke to his colleagues about their sloppiness — including a reference to a couple from Wales as being English and a description of an island as “floating” (islands don’t float) — and to identify 20 serious errors in the most recent Sunday edition. Rival Guardian gleefully tells all.

And Finally…

Back in May we marked the launch of a new blog called Praying for Papers, with the stated purpose of encouraging “anyone who is touched by this shift in our industry to include it each day in their prayer life.” Having noted its launch, we feel compelled to point out that the most recent post was on July 11, when author Mike Koehler said he was going on vacation. We haven’t heard from him since. Either he’s having a great vacation, his prayers have been answered, or he’s given up hope. We’re not sure which.

The New York Sun, which was launched in the shadow of 9/11 with the mission of providing a politically conservative alternative to The New York Times, is on its last legs. An eloquent column by Editor Seth Lipsky says the Sun, which is published on weekdays, will have to shut down at the end of this month if the owners can’t find financial backing. Interestingly, the Sun tried to compete with the worldly Times by being hyper-local, a strategy that is sometimes cited as the salvation of the newspaper industry. “It would put Manhattan and New York state news on its front page (in contrast to the Times’ emphasis on national and international news over local issues),” reads a very good description on Wikipedia. While the paper claims a readership of 150,000, its actual daily sales are less than 15,000. Talks are underway with potential partners and investors to continue publishing the Sun, but time is clearly running short.

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Crisis is breeding cooperation in Philadelphia, where Newspaper Guild members from the Inquirer and Daily News voted to forego a scheduled $25-a-week pay hike for at least a year. The owner of those two papers is in serious danger of defaulting on its debt. “We want to see this company thrive, now and in the future,” said the Guild’s administrative officer.

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There’s a new group on Facebook called Newspaper Escape Plan. “The newspaper industry is an abusive relationship,” writes Martin Gee, who created the group. “We keep getting beat up but we keep coming back because we love him.” The group has signed up 1,300 members in less than three weeks. Discussion forums are quiet but the wall is busy. (via Robb Montgomery).

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The weekly Raytown (KanMo.) Tribune is no more. The paper stopped the presses after 83 years, citing the same pressures everyone else cites. Most of its 11,000 circulation was free, but there were a couple of thousand paid subscribers. If you want to see something depressing, take a look at its home page.

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The independent Daily Orange campus newspaper at Syracuse University will stop printing on Fridays. However, its problems appear to be an exception to the rule. The president of the College Newspaper Business and Advertising Managers organization is quoted in this AP story saying that campus newspaper ad revenues actually rose 15% in 2007. Apparently, it’s all about focus.

Layoff Log

The Oklahoma City Oklahoman will cut 150 positions, beginning with an early retirement offer to 102 of its over-55 workforce and making up the difference through layoffs. The paper employs 1,100 people. The publisher noted that newsprint costs are up 40 percent.

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The Providence (R.I.) Journal, which is often cited as an example of a paper that has thrived in a competitive market by staying true to its community roots, will lay off an unspecified number of employees. Owner A.H. Belo had hoped to avoid cuts through a buyout offer, but there weren’t enough takers. There’ll also be layoffs at The Dallas Morning News (50 jobs) and the Riverside (Calif.) Press-Enterprise (30 positions).

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The Missoulian of Montana will lay off four full-time and three part-time employees. No word on whether that’s a lot for Montana’s third-largest daily.

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One of those employees is going to work for the Ravalli Republic in Hamilton. But the Republic is also laying off three full-time and three part-time people. But it’s also planning to make another newsroom hire in the next few weeks. Which is a lot to digest for an organization with only 17 employees.

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Clarification on yesterday’s reference to a vaguely worded item in Editor & Publisher about the Raleigh News & Observer: The paper is offering buyouts to 40% of its employees. It doesn’t expect to cut 40% of its staff, although it may get there if business doesn’t improve. “We’re not anywhere near where we thought we were going to be on the revenue side,” says the publisher. The N&O is also consolidating some sections to save on printing.

And Finally…

How will technology innovation support journalism and participatory democracy? Heck, we don’t know. We’re just a blog. But the Media Giraffe project will delve into that issue at a conference in Philadelphia Oct. 23-25. It’s called Rebooting the News, and the focus is on how educators can respond to the alarming flight of young people from traditional news media. Registration is downright cheap at $105.

Journalists are at each other’s throats in the Windy City. It all started last Tuesday, when provocative Chicago Sun-Times sports columnist Jay Mariotti quit the paper after 17 years and only a few weeks after signing a lucrative three-year contract. Mariotti’s epiphany apparently was a trip to the Beijing Olympics, where he observed that most of the journalists in attendance were “there writing for Web sites.”

After resigning, Mariotti launched into attacks on his former employer and the newspaper business in general, which he said is dying. The Sun-Times and the Tribune probably won’t survive, he said. “To see what has happened in this business. … I don’t want to go down with it,” he told the Tribune.

Mariotti has clearly made some enemies with his tough-guy style, and critics didn’t hesitate to pile on. Film critic Roger Ebert abandoned his usual soft style to post a blistering open letter, concluding, “On your way out, don’t let the door bang you on the ass.” CBS Chicago caught up with several of Mariotti’s colleagues, who didn’t mince words. “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,” said Sun-Times editor Michael Cooke. White Sox Manager Ozzie Guillen chipped in “Am I enjoying this? Yes.” There are more good quotes in the CBS account.

Meanwhile, the Cubs have lost four in a row, and the team’s NL Central division lead has shrunk to four games. There is no apparent correlation with Mariotti’s departure.

San Juan Star Gave No Clue of Shutdown Plans

Here’s the front page of the last issue of the San Juan Star, which shut down abruptly last Friday after nearly 50 years. This leaves the island of Puerto Rico with no English-language daily. The paper gave no indication that it would cease publishing. On page three of that day’s issue, there was a small announcement that frequency would be scaled back to five days a week (above right). Employees said they were unaware of the change in plans until a general announcement was made.

Miscellany

More proof that adversity makes strange bedfellows: The Miami Herald, Palm Beach County Sun-Sentinel and the Palm Beach Post will share basic news stories with each other while continuing to compete vigorously in the South Florida market they serve. The experiment will last for three months, after which the participants will decide if they want to continue.

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The Des Moines Register has laid off 12 staffers and frozen another 11 open positions. The publisher is being unusually open about who’s losing jobs. They include a 30-year veteran farm reporter and a top feature writer. Daily circulation is down 20% since 1994 and Sunday circulation is off nearly 30%.

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After trying to make a go of it as a daily newspaper for five years, the Noblesville (Inc.) Daily Times gave up the ghost last week and shut its doors, idling 24 full-time employees. Owner Schurz Corp. had tried to sell the paper for the last six months but was unable to find a buyer. The Daily Times had increased from weekly to daily frequency in 2003. The company also shut down the twice-monthly Westfield Times.

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Apparently, a lot of central California residents think that just because the Modesto Bee will now be printed in Sacramento, the paper is going away. Its editor says that couldn’t be further from the truth.

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The Arizona Republic is shedding 27 newsroom employees on top of 35 pressroom workers laid off earlier this month. Gannett Blog claims the paper has 2,700 employees, which makes these reductions a drop in the bucket compared to the typical industry cutbacks of about 10% of the workforce. Blog visitors say the mood at the Republic is horrible. “Morale here is so low people who weren’t offered buyouts congratulated those who took them,” writes one.

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Following the lead by several papers recently to reduce “soft” news and features, the News & Record of Greensboro, N.C. will cut its second editorial page and eliminate its dedicated book reviews section. Editorial Page Editor Allen Johnson doesn’t mince words: “We won’t even attempt to pretend that these changes will give you a bigger, better opinion section. They won’t. And you know that.”

Editor & Publisher has a 3,000-word special report on the newspaper industry’s prospects that doesn’t turn up much new ground but documents the panic that has set in across the business. Everything is on the table, industry execs now say. In the coming year, expect a lot of papers to eliminate money-losing Monday, Tuesday and Saturday editions, dump their classified advertising sections and combine forces with rivals or outsource overseas. Recent redesigns like those at the South Florida Sun-Sentinel are intended to be produced by smaller staffs. Some papers consider giving up on courting the youth audience and decide to just focus on giving their older readers something they’ll want to consume for the next 25 years.

The problem is that newspaper are tinkerers, not re-inventers, the piece concludes. Their core skills are mis-matched to the enormity of the task that faces them, and the unrelenting declines in business have left them with no option to think through bigger changes. Noting the waning interest in the the “Newspaper Next” program, the American Press Institute’s Drew Davis quotes one board member as saying, “We are like drowning people, who are treading water as fast as we can. And you people are throwing life preservers and we can’t even get our hands out of the water to reach them.”

In its first year, Newspaper Next reached some 6,000 people, but since API rolled out its 2.0 version last February, the response has not been anywhere near that, says Davis. The biggest newspaper companies, he adds, are most conspicuous in their absence.
Not everyone is as dour as the people quoted by E&P. Kevin Slimp reports on a recent meeting by a group of consultants, speakers and trainers who call themselves the Media Specialists Group. They discussed the future of newspapers and, while they agree that big dailies are mostly toast, they’re generally optimistic about circulation trends among regional and focused titles. Expect to see a lot more free distribution and segmentation, they say. Newspaper publishers will also do more contract printing and use their delivery channels to distribute advertising.

Decline is Worse Than Numbers Indicate

Vin Crosbie submits the most lucid, dispassionate and coherent explanation for the decline of the US newspaper business that we’ve seen since Eric Alterman’s groundbreaking piece in The New Yorker this spring. The industry’s problem isn’t the Internet, he argues, it’s the steady loss of respect for and contact with its readers, a trend that began more than 30 years ago. While absolute circulation has declined only 14.5% since 1970, the real decline is more like 45% when adjusted for population growth. Only a third of Americans say they read a newspaper yesterday and only 46% read one regularly, down from 71% in 1992.

Crosbie skillfully skewers the online readership data that newspaper execs use to obscure their problems, pointing out that readers who visit four or five times a month can’t be compared to subscribers. He also dismisses the so-called “passalong rate,” which dying publications like to use to inflate circulation numbers

In the end, he predicts that half of all American dailies will be gone – both online and in print – by the end of the next decade. He promises more analysis of what went wrong in essays today and next week.

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In his analysis, Crosbie also ticks off the precipitous decline in newspaper share values over the least few years, ranging from 65% at Gannett to 99% at Journal Register, yet Morningstar believes the companies are still overvalued. In a report subtitled “The newspaper business is in terminal decline,” Matthew Coffina analyzes the outlook for Gannett, The New York Times Co., Lee Enterprises, McClatchy and GateHouse Media and sees, at best, relatively fast ongoing deterioration of their businesses. “[We] consider the newspaper industry unattractive as a whole,” he writes.

Is Yahoo Friend or Foe?

First, Yahoo created an ad consortium and invited newspapers in so they could sip from the cup of online spending. Now it’s competing with its partners. In an Agence France Presse story (carried, ironically, on Yahoo News), Glenn Chapman reports that Yahoo is here to stay as a primary news source. It’s got feet on the street in Beijing for the Olympics (following the herd there) and has scored coups with recent interviews with South Korean president Lee Myung-bak and George W. Bush, who gave his first Internet-only interview to Yahoo. One of its tactics is apparently to ask readers to submit questions during interviews with dignitaries, which is kind of cool, when you think about it. (via Josh Catone).

For some reason, the industry’s troubles are hitting particularly hard in New Jersey. Newsday gathers up the bad news: Gannett just 120 jobs in six Jersey papers. The owner of the Newark Star-Ledger says the paper is on track to lose $30 million to $40 million this year. And the Hackensack Record just sold its building and will turn most of its staff reporters into “mobile journalists,” which is a new euphemism for “stringer.”

Novel Concept

Jason Mandell writes about a writer’s novel approach to sustaining investigative journalism using a community support model. David Cohn, a former tech and science reporter for Wired, has created Spot.Us, a place where journalists can float ideas for investigative reporting pieces and get funded by visitors, who vote with their wallets for the stories they like. The results are then syndicated to partner outlets. “If you get 100 people to give just $15, that’s enough to pay a journalist to do a story on something that will benefit the community,” Cohn told Mandell. Spot.US is partially funded, ironically, by Knight Foundation. Knight-Ridder was forced to sell out to McClatchy two years ago and has suffered along with its acquirer. Maybe Spot.Us is a way to begin to build at least a shell of a new vision for investigative journalism.

Layoff Log

How bad is morale at USA Today? The Gannett Blog floats the possibility that the national daily, which has so far escaped outright layoffs, may finally be on the chopping block. What’s most interesting, though, is the 50+ comments, most of them from people purporting to be USA Today employees, describing the dour mood in the halls and speculating about a big meeting next week with the publisher. There’s also an interesting account of a recent internal meeting at which tensions flared between print and online staff. Apparently, online is now the favored child at McPaper and some of the print veterans resent it.

Also,

• The Fort Worth Star-Telegram is now offering a buyout to “the majority of regular full-time employees.” This is its third job reduction this year.
• The Rockford (Ill.) Register Star laid off 13 employees and closed its Springfield bureau. A round of voluntary buyouts this spring wasn’t enough. from April to June that resulted in the departure of 17 employees. The publisher wouldn’t rule out further cuts.
• Warren Buffett’s Buffalo News may be somewhat insulated by Berkshire Hathaway’s might, but it’s still offering a small buyout. The package is good, though, starting at $60,000 and going up. Staffers were surprised to learn of the offer first on the newspaper’s website, though.
• The Burlington (Vt.) Free Press is laying off six people, which is only about 3% of its staff. A 50-year-old columnist says he “didn’t see it coming.”
• The St. Petersburg Times avoided layoffs as 200 people accepted a buyout. The early-retirement package took out 40 percent of the paper’s staff of 50-and-older employees.

And Finally…

Slate’s Jack Shafer Ron Rosenbaum hates pencil puzzles, and his rant against a practice that he sees growing in popularity is worth reading just for gems like his characterization of Sudoku as the “mind-numbing hillbilly heroin of the white-collar class.” Shafer Rosenbaum picks up copies of Will Shortz’s Funniest Crossword Puzzles and let’s the first “down” clues speak for themselves:

4. Highly ornamented style

5. Tell ___ glance

Whoa, dude, you’re killin’ me!

Puzzle addicts could cure cancer if they’d apply their brains more appropriately, like by reading a book, he says. “For you puzzle people: Reading is a seven-letter word for what you’re depriving yourself of every sad minute you’re spending on your empty boxes.” In the end, “there are two kinds of brains. Those hardwired to obtain deep pleasure from arranging letters in boxes and those hardwired to get the creeps from the process.”

It’s very funny. Now, back to our puzzle…

Google CEO Eric Schmidt, whose company has played a critical role in the destruction of the US newspaper industry, bemoaned the decline of investigative journalism, a discipline he called “fundamental to how our democracy works,” in remarks at the the recent Ad Age Madison & Vine conference in New York. The executive said a fundamental challenge to the industry is that readers are spending less time on content and thus less time being monetized. The idea that new advertising models will emerge to support quality journalism after the newspaper industry collapses is misguided. “The evidence does not support that view,” he said.Schmidt observed that newspapers are being challenged by the triple whammy of advertising competition, high newsprint prices and a decline of non-targeted advertising. “These guys are in a world of hurt and we as a community need to find economic models that will fund really great content,” he said. He noted ruefully that sketchy coverage of the war in Iraq is a particularly compelling example of the loss of investigative resources.

Redesigns Called “Reinventions”

That’s the South Florida Sun-Sentinel before (left) and after its forthcoming redesign. Or should be say the SunSentinel? That’s right. As Charles Apple wryly notes, amid the cutbacks at Tribune Co., the new SunSentinel has laid off a hyphen.
Apple quotes SunSentinel design director Paul Wallen saying, “Although our median reader is in the mid to late 50s, our target audience is almost a generation younger. We’re after occasional readers, people who don’t feel they have the time or enough interest to read our paper on a regular basis…We want the paper to feel vibrant and alive, much like the community it serves.” The new design formally launches on Sunday. To get a larger (and different) example, click on the image at left.
Another Tribune Co. property, the Baltimore Sun, will debut a new design on Aug. 24. No prototypes are being floated yet, but Editor & Publisher quotes Sun publisher Tim Ryan saying the overhaul is a “reinvention.” There’ll be three sections: news, sports and features. The features section will be called “You” in a nod to the complete USATodayification of the American newspaper industry. Tribune Chief Innovation Officer Lee Abrams called the Sun redesign “a tour de force package that’s going to help re-write the Tribune Co. — and newspapers.” We’ve already shared our opinion on the business value of redesigns.

Milwaukee Feels the Pain

The Milwaukee Business Journal writes of forthcoming layoffs at the Journal Sentinel as the paper struggles to meet its goal of a 10% staff cut. The piece illustrates the scope of the industry’s pain. Milwaukee should be a good newspaper town. It’s got a solid blue-collar middle class, people who don’t change their habits very quickly. The Journal Sentinel has a near-monopoly position, with 70 percent readership among Milwaukee adults on Sundays and about 50 percent on weekdays. Yet ad revenue is down 13 percent so far this year on top of an 8 percent decline in 2007 and 4 percent in 2006. Sunday circulation is down 16% from a decade ago.
The story has the obligatory Newspaper Association of America quote about combined print/online audiences being larger than ever, but the nut graph is a quote from a Morningstar analyst: “For every dollar daily newspapers have lost in print revenue, they’ve been able to replace it with only 15 cents in revenue from their Web sites.” The only way newspapers can survive the online shift is to get smaller, the analyst says. It’s just that no one knows how small they have to get.

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A Journal Sentinel columnist is taking a buyout package and looking ahead. In this wistful, but ultimately uplifting farewell column he reminisces on the joys and frustrations of journalism and looks forward to taking a chance and spending some time with his family.

Miscellany

Former New York Times editor John Darnton recently retired from the paper. But instead of writing a tell-all memoir, he’s aired some dirty laundry in the form of a murder mystery called Black and White and Dead All Over (order it on Amazon). Reviewer Seth Faison knows many of the people who appear in Darnton’s fiction, including Publisher Arthur Sulzberger and Executive Editor Bill Keller. Faison praises the book for offering candid insight on the politics, chaos and juvenile behavior that characterizes a city newsroom. Darnton may lose friends as a result of this bitingly satirical work, but he’s made for darned good summer reading.

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Tucson Citizen assistant city editor Mark B. Evans has some kind words for political bloggers who are, in some cases, outclassing the area’s newspapers in political coverage. We ignore these new voices at our peril, he says. Newspapers are falling further behind, so why not welcome these emerging opinion leaders into our fold and benefit from the readership and revenue they can bring?

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The Lexington (Ky.) Herald-Leader is trying to further reduce staff through buyouts. Kentucky’s largest newspaper already cut its workforce from 417 to 382 in June, but that wasn’t enough. Executives didn’t set a target figure for this round of cuts.

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The Christian Science Monitor‘s Jan Worth-Nelson has quietly, subtly replaced her morning newspaper with a MacBook and an RSS feed, but she still remembers the days when reading the Sunday paper was a treasured ritual. Sadly, cutbacks at the LA Times have made the paper less relevant to her Sunday mornings and she misses the thrill that came with snapping open that first issue of the day to drink in the fresh news that it promised.

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Howard Rheingold has an interesting essay on how to get more out of Twitter. Best advice: keep the list of people you’re following short and engage in meaningful interactions with them. He also doesn’t tweet what he had for breakfast. (via Mark Hamilton)

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End of an era: In a nod to the realities of advertiser pressure and a weakening print market,  Rolling Stone will ditch is unique, awkward trim size and switch to a standard format effective with the Oct. 30 issue. The magazine’s size will be reduced from 10″ x 11 3/4″ to 8″ x 10 7/8″.

And Finally…

People always celebrate success, but they don’t give enough credit to really creative failure. Thank goodness, then, for The Fail Blog, a photographic tribute to failures big and small. Don’t look at this site in the office. Your colleagues will wonder why you’re laughing so hard. And don’t, under any circumstances, view it while you’re drinking milk, if you know what we mean.

Demonstrating the power of diversification, News Corp. bucked industry trends and posted a profit of $5.8 billion for the fiscal year just ended, buoyed by a string of box office hits, robust online growth and a strong Australian economy. However, CEO Rupert Murdoch warned of tough times ahead in the US market and said News Corp. will step up investments overseas to compensate.

Robust retail and real estate advertising at the company’s Australian, Daily Telegraph and Herald Sun newspapers in Australia helped burnish profits, which were up by 21%. While US and UK performance was weak, The Wall Street Journal grew online subscriptions by 88%, results that stand in stark contrast to the prevailing wisdom in the US that newspaper publishers should give away all their content for free. MySpace.com also had a pretty good year, Murdoch said, without elaborating.

News Corp. is looking to India and China to fuel growth as western economies stumble. India’s GNP is expected to grow 7% in the next year, Murdoch said, and the company is responding by investing $109 million) in six new television channels there.

News Corp. has invested wisely in its online and broadcast diversification strategy over the last decade and the investments appear to be paying off. With the US newspaper industry flat on its back, News Corp. has managed to find growth in areas that US publishers largely shunned in better days. As a result, the company expects operating profits to grow another 4% to 6% in the coming year.

Despite the rosy results, Wall Street continues to debate the wisdom of the Murdoch strategy. A detailed piece in Variety questions whether the mogul overpaid for the Journal last year and whether weakness in US newspaper stocks could tempt Murdoch to go on an ill-advised buying spree. The piece lists a number of investments Murdoch has made in the Journal and in the Dow Jones wire services that he acquired and notes that News Corp. is the only publisher that has appeared to be impervious to the layoffs and downsizing that are afflicting the competition.

Good news, right? Not exactly. News Corp. shares are off 40% this year and some analysts cluck that Murdoch has failed to outline a compelling vision for integrating the Dow Jones properties with his other holdings. Murdoch remains optimistic, but cautious. “This is destined to be an extra-inning game, and to use an overly used metaphor, we’re only in the first inning,” he said recently.

Tuesday brought a welcome respite from the pummeling newspaper stocks have taken recently. Buoyed by a 332-point rally in the Dow, most domestic newspaper companies enjoyed share price increases of between 3% and 10%, with Media General leading the way.

Ombudsmen Becoming History

When I was a ninth-grade student in 1972, my English teacher presented us with “ombudsman” on a Word Power quiz. I scanned every dictionary I could get my hands on, but couldn’t come up with a definition of the term.

Ombudsmen, however, were destined to become fixtures at newspapers over the next few years. These reader representatives were all the rage in the 1970s and 80s. The idea was to take an aging reporter and make him or her a sort of armchair quarterback for the editors, fielding complaints from readers and rendering judgments that carried no particular weight but hopefully made the quality of journalism better.

Now it appears that ombudsmen role may be destined for the scrap heap. Karen Hunter, the Hartford Courant‘s reader representative, pens her farewell column as her job is eliminated in the current round of layoffs.

“Of the nearly 1,500 newspapers in the United States, only a few dozen have ombudsmen and the number is decreasing,” Hunter writes. “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. She points readers to the Organization of News Ombudsmen, which carries on the fight.

Pam Platt, reader representative at the Louisville Courier-Journal, also writes an obit for the position this week. The Courier-Journal was the first US paper to employ an ombudsman 40 years ago, she says, but the job doesn’t make sense any more in the current economic climate. Platt will write editorials and columns instead.

Layoff Log

• The San Francisco Chronicle, which has been losing money for years, continues to be the poster child of industry problems. Now it’s offering a buyout package to 125 employees. The paper has shed half its editorial staff since 2000 and is reportedly losing about $1 million a week. BusinessWeek‘s Jon Fine last year predicted that it could be the first major metro daily to fold its print edition.
• The Sarasota Herald-Tribune laid off 33 staff on Tuesday, with cuts coming about equally from the editorial and business sides. Parent company New York Times Co. didn’t elaborate.
• The soap opera at Blethen Maine Newspapers continues, with an exasperated publisher of the Portland Press Herald/Maine Sunday Telegram denying reports that the paper could be shut down without a sale. Charles C. Cochrane said that option was a worst-case scenario outlined in recent court documents and is highly unlikely. Blethen is trying to sell its Maine portfolio to a group of local investors.
• The Jackson (Miss.) Clarion-Ledger will reduce its headcount by 20 people, or about 5% of total staff. Romenesko has a memo from the publisher outlining all the usual reasons.
• The Cincinnati Enquirer is asking 50 non-union staffers to take a buyout and says layoffs may be necessary if there aren’t enough takers. Parent Gannett Co. just reported a 36% drop in profits on a 10% revenue decline.
• The good news is that the LA Times ended up shedding fewer jobs than expected: 135 instead of the planned 150. Editor Russ Stanton writes an inspirational memo to his colleagues, exhorting them to continue to innovate despite their depleted numbers.

Miscellany

Los Angeles Times veteran William Lobdell left the paper after 18 years last week. He posts a bitter 42-point analysis of the mistakes the paper made, particularly on the business side. Lobdell says Sam Zell isn’t the villain, but the Tribune CEO did accelerate the company’s s fall. He doesn’t mince words in his criticism of Tribune Chief Innovation Officer Lee Abrams, whom Lobdell clearly considers to be a dunce. He also refers to “good sources” who say another 150-200 layoffs are coming. Lobdell doesn’t see much hope for the Times barring a Herculean effort by the editorial and business operations to reinvent the paper. He’s happy he’s not sticking around for that. Lots of comments on this entry.

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The Newspaper Association of America Newspaper says newspaper websites attracted more than 40% of all unique visits on the Internet in the second quarter of 2008, a 12.2 percent increase over the same period a year ago. The custom analysis prepared by Nielsen Online also says total page views averaged three billion per month in the period. Considering that Google alone reportedly processes more than 25 billion queries a month, the 40% figure seems questionable.

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The Audit Bureau of Control (ABC) made a bunch of changes to its procedures in an effort to “simplify ABC rules, reduce audit costs and provide greater pricing and marketing flexibility to publishers,” the organization said in a press release. Publishers have been clamoring for ways to boost their numbers in a period of declining circulation and the ABC adjustments appear to give them a bit more latitude to do so.

And Finally…

There’s no question that the 81 squares that make up a Sudoku grid have been one of newspapers’ greatest friends over the last decade. Many people buy their daily newspaper just to get their fix. True achievers will have a chance to compete for fame and fortune at the 2008 Philadelphia Inquirer Sudoku National Championship on October 25 in the City of Brotherly Love. The Inquirer has even launched a line of apparel honoring the pencil game, but is doing what it can to prevent sales. The Sudoku apparel web page invites visitors to click on the image of a shirt to make a purchase, but none of the images are clickable, meaning that there is effectively no way to make a purchase. Click the image at left to see how it’s done.

The Minneapolis Star Tribune may be the first victim of default. Finance and Commerce says Avista Capital Partners, which acquired the paper last year, now wants out of the deal. The trouble is that no one wants to put up any money. Investors are paying only 53 cents on the dollar for a share of the current note, which is well below the Wall Street average of 90 cents. The ultimate buyer could be a distressed-debt hedge fund, which will move quickly to slash costs. It’s hard to believe that McClatchy paid $1.2 billion for the Star Trib in 1998. We’d estimate that investment is worth about $200 million now.

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More coverage of the Pew Research study released this week: Marshall Kirkpatrick wonders if location-aware mobile devices like the iPhone 3G could be the nail in the coffin.  If the salvation of newspapers is local, then how do you compete against a device that delivers local news right where you’re standing? Kirpatrick says he’s an unabashed newspaper fan, but the dailies have got to figure out a way to stop killing trees in order to dump paper on his doorstep that then goes right into the recycling bin.

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The Los Angeles Times is folding its book review section. The decision has drawn howls of protest from the book review editors themselves, who are encouraging their readers to howl with them. Book reviews are the most erudite features of major metro dailies and an important symbol of the intellectual value newspapers deliver. We guess that’s not a high priority to Tribune Co. management at the moment.

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Evening Post Publishing Co., owner of the Charleston Post and Courier, is offering buyouts to all of the paper’s 513 employees, looking to shed staff without resorting to layoffs. Employees can get the standard two weeks for every year of service. The Post and Courier is the oldest paper in South Carolina and once employed more than 700 people. (via The Digitel).

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 David Sullivan’s That’s the Press, Baby is always an engaging read, even when we don’t agree with him. He lets loose on some doomsayers this week with rapier wit. Sullivan’s blog is about newspapers, copy editing and department stores, three topics that frequently come up in the same sentence.

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The Sacramento Bee‘s ombudsman asks us to keep it all in perspective. Despite the nuclear winter that hovers over the US newspaper industry, global trends are up. Did you know that Turks spend 74 minutes a day with their broadsheets? Or that circulation is up 481% in Ukraine over the last five years? These and other nuggets are available in this entertaining column.

It’s the dog days of summer, so even unsurprising research is good enough to draw lots of attention. This time the subject is a new Pew Research study that finds – “ surprise! – that newspapers are getting smaller, more local and more focused.

The New York Times chooses to focus on the obvious in its coverage. – “Almost two-thirds of American newspapers publish less foreign news than they did just three years ago, nearly as many print less national news, and despite new demands on newsrooms like blogs and video, most of them have smaller news staffs,” reads its lead.

We were actually more intrigued by Editor & Publisher‘s take, which zooms in on the paradox of staff cuts: – Editors by big numbers think their papers are actually improving their coverage, even as they lament that their staffs have lost their most veteran journalists in waves of buyouts and layoffs,-  reads the nut graph. E&P also pulls out other nuggets like the fact that copy editor positions are being cut more than any other and that editors feel conflicted about the move to the Web. Quoting from the research: “A plurality of editors (48%), for instance, say they are conflicted by the tradeoffs between the speed, depth and interactivity of the web and what those benefits are costing in terms of accuracy and journalistic standards.”

The study does highlight the angst that’s being caused by an epic platform shift and the departure of many veteran journalists. The good news is that more than half the editors say the quality of their product has improved over the last three years. The unsettling news: – Only 5% of those responding to the survey said they were very confident of their ability to predict what their newsrooms would look like five years from now.- 

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Perhaps the gloom that pervades the industry is misplaced. Media Mark Research & Intelligence (MRI) reports that total readship is up in the top 100 markets. A survey commisioned by the Newspaper National Network (NNN) found a 2.1% increase in audience size to 80.6 million between spring 2007 and spring 2008. However, media outlets were somewhat ambiguous in their interpretation of the results. Editor & Publisher interprets the data as indicating that print readership is up
while MediaPost refers to unduplicated audience, which includes online readers. Both outlets cite newspapers’ recent clampdowns on free bonus circ as improving audience quality.If the research (which isn’t mentioned on either sponsor’s site, as far as we could tell) is about online audience, then the results aren’t that encouraging. Most newspapers have been reporting increases of 10% or more in online audience, which about mirrors the growth of the Internet overall. If the numbers refer to print readership, then they are indeed surprising, given that the Audit Bureau of Control has reported a steady downward trend in that area. Perhaps more details will emerge when the NNN actually says something about the research.

Layoff Log

The Atlanta Journal-Constitution is spending $30 million on new printing presses and cutting its staff by 8%. The loss of 189 jobs includes 85 newsroom employees and 104 people in the advertising group. The paper is also discontinuing all its regional editions, including the Gwinnett County regional, where its main printing press is located. In an open letter, the publisher explains that the AJC drives 80,000 miles a day to deliver its product and that spiraling fuel costs have hit hard. The paper has also had to absorb a 35% increase in the cost of newsprint.

In light of all those factors, the decision to invest so heavily in new presses seems a bit bizarre. We’re sure there are good business reasons, but if all the growth is online, why invest in a print product that already has a near-monopoly position in its market? We suspect there are nearly 200 soon-to-be-ex-employees of the AJC who are asking the same thing right now.

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More than 3,500 newspaper jobs have vanished this summer, according to Media Post. You’ve read about most of them here, but the media publisher’s roll-up demonstrates how widespread and entrenched the industry’s problems are.

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An already tense labor-management standoff at the Honolulu Advertiser wasn’t helped by last week’s announcement that the paper must cut 54 positions, or about 10% of its workforce, for the same reasons everybody else is laying off. It took all of one day for the union to authorize a strike. Workers said they had no idea the layoffs were coming and that the Advertiser claims to be profitable.

Being profitable, of course, is not a guarantee against layoffs, especially when parent Gannett Corp. just announced a 36% drop in earnings. Advertiser management is actually pressing the issue by proposing that the union be abolished so that it can have the flexibility assign reporters to take photos, for example. The union says no. In an age when competitive websites leverage content contributed by local citizens for little or no money, it makes sense to send both a reporter and a photographer to cover a story at union scale. This is a business model that the Advertiser can ride comfortably into oblivion.

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The Gleaner of Henderson, KY, will eliminate nine pressroom positions and four other unspecified jobs as it moves printing to the Evansville Courier & Press. The item didn’t say how many people work at the paper.

Miscellany

The owner of Pacific Coast Business Times, a weekly business journal in Southern California, says business is great. The closure of business sections in some big dailies has helped, says Henry Dubroff. Business weeklies have lower costs and just as much credibility as the dailies they’re challenging he says. If you read between the lines of this piece, though, you’ll also see that business weeklies are more attuned to playing nicely with the businesses they cover: – The culture of a business journal is more like a small business than a traditional newspaper,” Dubroff says. “Other departments are close at hand, not on another floor. A mix of high standards and cooperation are keys to success.-  Translation: business journals are more likely to write nicely about the companies they cover.

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The editor and publisher of American Thinker, Thomas Lifson, writes somewhat mockingly about the decline of The New York Times under publisher Pinch Sulzberger. Repeatedly referring to the publisher by his preppy nickname, Lifson ticks off a list of questionable business judgments at the Old Gray Lady, including the decision to increase the dividend while the stock was tanking and the Ochs/Sulzberger family’s refusal to consider selling the operation. Noting Rupert Murdoch’s designs on the Times, Lifson references recent reports that Murdoch and Daily News publisher Mortimer Zuckerman are discussing ways to combine some operations in order to reduce costs. – With the financial muscle to cut prices and steal advertisers away from the Times national and metropolitan editions, Murdoch can force the Times to cut its own prices for the advertisers and readers who remain with it, further pressuring circulation revenue and readership,-  he says. In other words, a death spiral.

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The Asheville, NC Citizen-Times has started making reporters punch a time clock. Actually, it’s a thumbprint reader, and you have to punch in and out even if you’re going down the block to the bank. With that kind of management penny-pinching, it’s unlikely that C-T reporters are going to be burning the midnight oil on a big story any time soon.

And Finally…

Conspiracy theory? Tell Zell reveals internal communications from Tribune Co.’s IT organization telling how computer systems are being centralized at the company, making it possible for a reporter at the Baltimore Sun, for example, to file a story directly to the LA Times. Previously, the systems couldn’t talk to each other. Does this mean it will soon be possible for the Tribune papers to pool resources and send, say, four reporters to witness the same Presidential press conference instead of eight? If so, then we take back the mean things we’ve been saying about Sam Zell. Maybe the guy really does have a vision.

Mark Potts counts the ads in his Sunday paper and finds just 14 pages of them in 102 pages of news. And the previous week’s pre-holiday issue wasn’t much better. What happens when papers start following Sam Zell’s lead and tightening ad/edit ratios to 50:50, he asks?

Good question. It’s one that the Zellenistas have conveniently overlooked in their campaign to clamp down on spending. The more you squeeze ad/edit ratios, the smaller the paper gets and the more questionable the value proposition becomes for Mr. and Mrs. Commuter who are deciding whether to pay $1 for a product that has almost nothing in it or pick up a copy of Metro for free. Or, for that matter, just get their news on their Blackberry.

The risks of cutting the news hole and the news staff is that the value of the product becomes more questionable. Readership declines, which leads to advertiser flight, which makes issues even smaller. It’s called a death spiral, and Sam Zell and his associates are boldly leading the industry into the vortex.

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Speaking of spirals, Muckety has an interesting insight on the skyrocketing cost of dividends for major newspaper companies. As their stock prices sink, the cost of these quarterly payouts is going out of sight. Gatehouse is currently obligated to pay 32% of its stock value as a dividend, for example, which would be a crushing burden for most companies. If the company does what is probably has to do and eliminates the dividend, it makes its stock less appealing to the widow-and-orphan investors who have traditionally bought reliable newspaper shares. When they sell, share prices go down, which means that dividend yields go up, which makes for more financial misery. And so on and so on… (via Fading to Black).

New Models of Journalism

Steve Outing is a veteran journalist who gets it. Early this year, he stuck his neck out and wrote in Editor & Publisher about his decision to cancel his newspaper subscription. This drew howls of anger and derision from loyal E&P readers, but Outing was trying to make a point: If someone like me is lost to you, what does that say about the rest of your audience?

In this latest E&P epic, the loquacious Outing looks at new approaches to journalism emerging online. One of them is Examiner.com, a network of local websites in which professional journalists partner with citizens and local experts to blanket a topic. “Local” in this context is about topic rather than geography. The experiment forces the reporter to be a relationship manager as much as a writer. Fortunately, most good reporters do pretty well at managing relationships.

Outing also writes about geotagging, which is a growing standard to labeling information with geographic coordinates. Learn to do it, he says, because people will increasingly turn to services that deliver local information and your stuff won’t be included if you don’t tag it.

Outing makes an essential point: there is and always will be a need for professional journalists, but their role will evolve to encompass more of a managing editor role. Journalists will have to excel not only at reporting the news but also at managing the networks of resources that bring in information from other sources.

Miscellany

• In an act of, well, we’re not sure just what, the Miami Herald has hired back a laid-off reporter to blog about being unemployed. Don’t get excited, though. It’s only a one-month gig.
• Editors Weblog reports that three of the 10 most circulated newspapers in the US are now free. Note that circulation is difficult to measure when there are no paying subscribers. Metro International has had a hard time monetizing this model, but there’s no question the reader demand is growing. (via Fading to Black)
• Last week we wrote about a young intern at the Tampa Tribune who blogged about the editor-in-chief’s provocative remarks about making the newspaper secondary to the website. It turns out that intern Jessica DaSilva kicked up quite a storm, as the 160+ comments on her blog demonstrate. Out unscientific analysis has comments running about 3:1 in her favor, but some of the critics are their own worst enemies. Their petty sniping at her occasional spelling errors and random random personal attacks make them look shallow and vindictive. Someone hire this young lady.

Moody’s Investors Service has joined the Greek chorus of financial watchdogs predicting more bad news for the newspaper industry. Analysts expect newspaper advertising revenue to drop 7% to 9% in 2008 and maybe slightly less in 2009, but only if the economy recovers next year. If it doesn’t, look out.

Most troubling is the decline in cash flow, defined as earnings before interest, taxes, depreciation and amortization (EBITDA). Over the past 10 years, EBITDA has fallen from 28% to 19% as a percentage of revenue, Moody’s said. Cost cuts aren’t keeping up with revenue declines, which is eroding EBITDA by more than 10% a year. That erosion comes at a terrible time because so many publishers are heavily leveraged with debt. Less cash means less money to pay creditors. Moody’s thinks deeper cuts will be needed in editorial operations, but “It will prove challenging to continually reduce editorial costs without impairing the core news product or employee morale.”

As if to accent the Moody’s forecast, E.W. Scripps Co. said newspaper revenues will fall 8% to 10% in the second half of 2008. The company is in the process of splitting itself in two.

Optimists See Growth, But Much of it is Free

The head of the World Association of Newspapers says reports of the industry’s demise are greatly exaggerated. Speaking to the World Editors Forum meeting in Göteborg, Sweden, CEO Timothy Balding cites statistics showing growth in Asia and South America that is outstripping declines in the US and Europe. Overall newspaper circulation is up over 3% internationally. A lot of that growth is coming from the expanding free-daily industry, however. Free papers now make up 23% of circulation in the EU and 8% in the US.

Wired magazine editor Chris Anderson comments on this trend, noting that it is another indication that information is becoming free. While any growth is good, the loss of paid subscribers presents big challenges to the economics of the newspaper industry, which are predicated on circulation lists.

Free isn’t necessarily good business in the US, though. The CEO of Metro International SA tells Bloomberg that it’s examining its options in the North American and European markets while looking to expand into 30 new markets. The world’s leading publisher of free dailies has struggled to reach profitability, although its market penetration has grown rapidly. Per Mikael Jensen says emerging economies look to have more promise at the moment.

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A study conducted by advocacy group Newspaper Works shows that Australian readers hold newspapers in high esteem. The survey of 1,010 people found that 90% of readers do nothing else when reading a newspaper as compared to the half who busy themselves with other things while the TV is on. Most perceive newspapers as “absorbing, dynamic and reputable,” and the online extensions only add to that credibility. (Via Editors Weblog).

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Finally, the editor-in-chief of the Los Angeles Times tells Media Bistro that print isn’t going away in his lifetime. That said, Russ Stanton is honest about the challenges, noting that the substantial infrastructure cost of print is a liability. “Someone, somewhere is going to grow the revenue from online enough that it can support a newsroom of our size and talent. And when that happens, that’s when you can start, if you so choose, to pull the plug on the paper,” he says. He adds that citizen journalism is pretty intriguing.

Turnover Continues At the Top

Rupert Murdoch continues to put his own team into place at The Wall Street Journal. Deputy Managing Editor Bill Grueskin is the latest to go, leaving the paper for a post in the ivy-covered halls of academia. Grueskin’s departure comes just two months after Managing Editor Marcus Brauchli was unceremoniously shown the door.

Los Angeles Times Editorial Pages Editor James Newton will leave the paper to finish writing a book about Dwight Eisenhower. He had been in the job only 14 months. Newton’s memo to staffers made it clear that he wasn’t motivated by some pressing inner urge to tell the Eisenhower story. “[T]he paper still has challenges ahead. The publisher and I have discussed those difficulties, and he is entitled to an editorial page editor who shares his vision on how best to confront them,” he wrote. LA Observed has Newton’s farewell memo, as well as the obligatory bouquets of gratitude from Publisher David Hiller.

Thoughts on the New Journalism

Jeff Jarvis eloquently expresses an important point about the future of journalism in this essay on the ethics and culture of linking. The link is the currency of the blogosphere, of course, and the emerging culture of journalism is embedding links into news reporting process. In the old days, Jarvis notes, reporters would rather repeat all the legwork done by a competitor than acknowledge being beaten on a story. This led to tremendous duplication of effort. In the new model, though, journalists are learning to link to useful information and build upon it, creating a new and richer style of journalism.

Jarvis cites the experiment being conducted by a group of Ohio papers that are sharing stories between each other rather than processing them through the Associated Press. This means less rewriting, faster delivery and more genuine content. Says Jarvis: “[T]hey’re doing what they do best and linking to the rest and they are linking to original journalism: the new architecture at work.”

Meanwhile, the CEO of acquisitive MediaNews Group urges newspaper executives to “discard our arrogance.” Speaking to the World Newspaper Congress in Sweden William Dean Singleton says, “We’re going to have to quit writing and editing for each other and write and edit for that consumer out there.” He says half the chain’s profits will come from online sources by 2012. Singleton continues recent criticism by industry CEOs of the way newspaper journalism is done. News Corp. CEO Rupert Murdoch recently said The Wall Street Journal has too much management overhead and Tribune Co. CEO Sam Zell has also insulted his editors.

Layoff Log

• The Portland Press-Herald and MaineToday.com will cut up to 35 positions on top of the 27 jobs that were eliminated in March.
• Newsday has reportedly laid off 32 employees — half in operations management and half from Star Community Publishing. This follows a 120-person reduction in March. Publisher Timothy Knight said the move would “reduce management layers in operations, clarify roles and responsibilities, and speed decision-making.” The paper is awaiting transfer of ownership from Tribune Co. to Cablevision Systems Corp.

And Finally…

Simon Owns interviews journalist and Editor & Publisher columnist Steve Outing about a new venture he’s working on called Reinventing Classifieds. It’s a blog in which prominent publishing professionals contribute their insights on classified advertising and how the newspaper industry can recapture that business. At first glance, the content looks a little like Newspaper Death Watch ““ lots of bad news. But there hasn’t been much good news to report in the classified industry of late. There’s lots of up-to-date news and even a piece by design guru Roger Black. The site is tied to a project led by Future of News developer Christopher Ryan that’s attempting to build a distribute ad placement platform that newspapers could use to get a leg up on Craigslist.