We’ve been thinking hard about how to defend of the Philadelphia Inquirer‘s decision to suppress most of its non-breaking news until after it has appeared in print. It is so easy just to dismiss the policy as bone-headed and retrograde, as Jeff Jarvis, Steve Outing and Steve Boriss quickly did. Perhaps there is some counter-intuitive brilliance here, we reasoned. After all, the Inquirer hasn’t much to lose. Its owners are nearly in default on their debt and newsroom staffing has been slashed as badly as any paper in the country. Perhaps there’s merit in challenging the conventional wisdom that all news has to be free. Perhaps, by bucking the conventional wisdom, the Inquirer can motivate Philadelphians to get excited about their hometown paper again. Perhaps people will actually want to subscribe to the Inquirer because they can’t afford to miss the great journalism that’s there. Perhaps the print-first philosophy is so retro that it’s actually on the leading edge.

Naaah. It’s just a dumb policy. Here’s the basic misconception in Inquirer ME Mike Leary’s thinking: people are hungry for information and they’ll go to where the good information is. The Inquirer staff produces great features and investigative reports that Philadelphians just have to read. If those reports are denied to them online, they’ll have to get the newspaper, because they just can’t afford to be without that information.

Here’s the reality: people are swimming in information. They have so much information at their fingertips that they can no longer tell where it comes from. RSS readers, iGoogle and MyYahoo pay little attention to brand or news source. Americans’ biggest problem is keeping their heads above the water as the deluge of information increases. There is little in the Inquirer or any other major newspaper that is so relevant to people’s daily lives that they must have the information the minute it’s available. If they don’t get it from the print edition, they’ll hear it on the radio or read it in an e-mail newsletter or catch it on their FriendFeed if other people think it’s important.

The Inquirer policy is rooted in the outmoded conceptions that information is scarce and media brands are important. The reality is that information is plentiful and media brands are becoming irrelevant. Maybe the Times or the Journal could pull off a policy like this, but they aren’t dumb enough to try. The Inquirer apparently is.

Media Arrogance on Parade

A couple of media watchers are taking the press to task for ignoring seemingly important stories. Mark Potts excoriates mainstream media for ignoring the John Edwards affair. Much of their indifference was apparently due to the fact that the National Enquirer broke the story. Media snootiness about the supermarket tabloids is legend, but in this case, the Enquirer‘s reporting was about 95% accurate. Plus they had photos, for goodness sake. This is classic media arrogance. If the story wasn’t reported by a ‘real journalist’ (there’s that term again), then it isn’t to be trusted. But there are fewer and fewer real journalists out there, so where are you going to get your news? Perhaps it’s time to redefine your definition of credible source.

Mark Hamilton comments on the indifference of the Canadian press to the outbreak of fighting between Georgia and Russia. Even though the conflict has taken more than 1,000 lives, the local media – and newspapers in particular – have been more focused on the opening ceremonies of the Summer Olympics. Here’s the herd at work: send your limited reportorial resources on a two-week junket to Beijing for an event that’s being covered by thousands of other reporters. What’s the point of that? What insight are your reporters going to mine from a press conference with some gold medal winner than the other 75 reporters in attendance have missed?

These two cases are emblematic of newspapers’ inability to reinvent themselves. Facing a near total collapse of their business model and unprecedented pressure to do more with less, major news organizations are responding by doing more of what they’ve always done. Maybe it’s human nature, but it’s not the kind of behavior that will pull them out of the death spiral.

Business News

Gatehouse Media, whose stock price has dwindled from $22 a share to 69 cents, reported a $430 million quarterly loss, reflecting a huge writedown in goodwill. The company owns a portfolio of small-town papers that are outperforming industry averages, but it is burdened by $1.2 billion in debt and could default soon.

---

Hearst Corp. bought the Connecticut Post and seven other non-daily newspapers from MediaNews Group. While this might appear to be the early rustlings of a consolidation trend brought about by plummeting values, Mark Potts thinks it’s actually a harbinger of a Hearst plan to sell the San Francisco Chronicle to MediaNews. The question is why anyone would want it.

---

Lee Enteprises is shutting down the South Idaho Press of Burley, its second-largest Idaho daily, along with two weekly papers in the area. The Press has a circulation of 4,000. It will become a section in the Times News, which is Lee’s Idaho flagship. Lee said 14 people will lose their jobs.

---

Sun-Times Media Group Inc. lost $37.8 million in the second quarter, and CEO Cyrus Freidheim said he’s planning new cost cuts to help cope with steeper-than-expected declines in revenue. Some of the cost-saving methods under consideration at the Sun-Times include outsourcing classified ad sales and some financial and administrative activities; cutting corporate costs through possible privatization or de-registering of stock, and changing the size and format of its papers. The company also said it plans to explore real estate sales to generate cash.

And Finally…

Editors Weblog reports on The Guardian‘s plans to deliver its product on e-ink. That’s a thin, flexible computer display that can be rolled up and stashed in a shirt pocket. When combined with an Internet connection, e-ink could make it possible for a constantly updated newspaper to be delivered electronically in a format that readers could conveniently carry around. E*Ink Corp. has been working on this stuff for a decade. The Guardian estimates it’ll be eight years before the technology is commercially practical.

Washington Post Co. dipped into the red for the first time in its 37-year history, reporting an operating loss of $2.7 million in the second quarter.  A big factor was the cost of an $87 million buyout program intended to reduce headcount, but the newspaper division lost money on operations for only the second time in the company’s history. The $5.3 million operating loss came on a 22% dive in print  advertising revenue. Online advertising was up an anemic 4%. Fortunately for the Post, it owns the Kaplan education company and some cable and Internet franchises. Unfortunately, it also owns Newsweek, which had an operating loss of $3.7 million for the quarter.

Troubles in Hyper-Local Land

Some people say the savior of the newspaper industry is to go hyper-local, but remember to tell that to the ad sales people, who could make a lot less money. The Wall Street Journal reports on the sliding market share of newspapers in their own local ad markets, where one researcher says they now control only 27.4% of the business, down from nearly 36% two years ago. The reasons? Ad commissions for online sales are much lower than those of print sales, meaning that ad reps have less incentive to sell digital ads. Also, newspapers are mostly limited to selling poorly performing banner ads to local business, while pay-per-click programs like Google’s are cheaper and more cost-effective. Newspapers need to come up with more innovative sales programs and retrain their sales forces to live on lower margins than they’ve been accustomed to, and that’s not easy.

“Internet companies like Google and Local.com, which collectively control 53.3% of the local online ad market, up from 25% in 2006. And they’ve done that with only 1,400 ad-sales reps,” says the Journal. That’s one reason that E.W. Scripps, A.H. Belo and Lee Enterprises all reported declines in online ad revenue in the most recent quarter. (WSJ chart)

Maine Chain Finds a Buyer

Looks like Seattle’s Blethen family is finally going to rid itself of  a troublesome chain of newspapers all the way across the country in Maine. A group of four investors with local ties has secured exclusive rights to negotiate terms to buy the papers, which includes  the Portland Press Herald/Maine Sunday Telegram,  the Kennebec Journal in Augusta and the Waterville Morning Sentinel,  as well as some weekly publications. A spokesman for the group said the investors are all savvy businesspeople who are committed to the newspaper business and who see the purchase as an opportunity to grow the properties. Richard L. Connor is the most likely candidate to head the operational turnaround. He’s had success in his most recent role as  editor and publisher of the Wilkes-Barre (Pa.) Times Leader, where circulation has actually grown since he took over in 2006. A spokesman for the investors said the group is going to ask for concessions from the Newspaper Guild. A Guild spokesman said the union is happy to work with someone who has a plan.

Miscellany

The Hartford Courant has been pretty quiet about covering its own layoff of  57 newsroom employees,  and TV newsman and blogger Rick Hancock says he’s heard that reporters have been told to spike such stories. He quotes the paper’s reader representative confirming that at least one story about the matter was killed, although she didn’t know why. The Courant has cut its newsroom staff by 55% since 1994.

---

Ted Rall has radical prescriptions for the industry. Go offline, copyright everything and stop feeding the wire services.  Newspapers’ troubles began when they started to give away their products for free to online distributors, says the noted cartoonist and liberal columnist. So it’s time to shut down and declare ownership of intellectual property. Newsosaur Alan Mutter may agree. His analysis of Associated Press content shows that only a small percentage is contributed by AP reporters, about a third, by his estimation. “If newspaper staffs continue to erode, where will the AP and its clients get the news in the future?” he asks.  Rall might also find an ally in Goodloe Sutton, publisher of the Linden Democrat-Reporter in western Alabama. He’s just raised the price of a daily issue from 75 cents to one dollar and it hasn’t made a whit of difference. Maybe people are willing to pay for news they can’t get anywhere else.

---

Slate’s always provocative media critic Jack Shafer probes at an underlying reason for newspaper troubles: they’ve lost their role as social currency. Shafer remembers the days when conversations typically started, “Did you read the story in the paper today about…?” and observes that those discussion-starters have been replaced by comments on Facebook and Twitter. The loss of that central role as the source of current information deprived newspapers of their “must read” status, he says, and that made them less crucial to the everyday needs of local communities.

---

Yahoo! has driven more than 100 million page views to its 779 member newspaper  sites with a traffic-generating power that one publisher described as a “fire hose”. The Deputy ME of the Dallas Morning News says, “We’ve had placements that have accounted for up to 27% of the day’s page views, and 65% of the day’s unique visitors.”E&P quotes liberally from the Yahoo press release in its  coverage, which omits important details like how the traffic patterns break  down between member newspapers and how traffic has grown since the project’s inception. But it  was a Friday afternoon…

---

Playboy publisher Christie Hefner blogs about the newspaper industry’s troubles and suggests that papers should market their products better and unify print and online sales, as her publication has done. Perhaps they should also adopt the Page 3 Girl idea that’s worked so well for the U.K.’s Sun.

---

Shares of Journal Register Co. fell to a penny in over-the-counter trading on Friday. That values JRC, which traded at $20 a share less than three years ago, at just $590,000.

Layoff Log

• The Newark Star-Ledger is looking to cut 200 jobs, or about 15% of its 1,400-person payroll, through buyouts, according to publisher Advance Publications. If it doesn’t hit that goal, the paper will go up for sale. Editor & Publisher’s Joe Strupp says the paper’s troubles symbolize how bad things have gotten in the industry. The Star-Ledger dominated New Jersey life, he says, and the paper was so fat and happy that it didn’t even see the need to invest in its online properties until recently. Strupp quotes one reporter as saying that news of the extent of the Star-Ledger‘s problems come as “a punch in the gut.” Advance is also seeking to wrest concessions from the union that represents about 750 employees.
• Times are tough in Idaho. The Press-Tribune of Nampa will  lay off 16 employees, or about 10% of its staff, and leave an unspecified number of vacant positions unfilled. The move comes a month after the Boise Stateman laid off 16 people and cut another 22 pressroom positions by combining printing operations.  Lee Enterprises will combine five Idaho daily and weekly papers into one daily – the Times-News – and lay off 14 people, or about 12% of the total staff. The move sounds sensible, given that two of the weeklies had circulations of less than 600.
• Another Lee property, the Munster (Ind.) Times, has laid off 12 employees  and cut an unspecified number of additional positions through attrition. The story in the Gary Post-Tribune didn’t say how many people the Times employs.
• The Bozeman (Mt.) Daily Chronicle will lay off six full-time and three part-time employees and hold nine vacant positions open.  Five of the affected positions are in the newsroom.
• The Des Moines Register may also announce some job cuts soon, internal sources told  the Iowa Independent.  Specifics were hard to come by, however. Management raised the possibility as part of a standard staff meeting and didn’t elaborate. The paper, which dominates the Iowa market, has about 200 editorial staffers.

The New York Times Co. shows signs of managing through the crisis, although its regional properties continue to drag down overall performance. The company’s earnings fell by almost 50% in the quarter just reported, but when you factor out the cost of layoffs and buyouts, profits were off only about 12%, from 29 to 26 cents per share. That beat analyst expectations. Circulation revenues were up as the company implemented a price increase at its flagship. The company’s regional holdings continue to drag on performance. Combined revenues at The New York Times and the International Herald Tribune were off 9.5%, which is better than recent industry averages. But the New England Media Group, which includes the Boston Globe, fell 15.1%. The Times continues to look like it can survive and even thrive in the post-metro-daily world because of the power of its brand. The Globe is a different matter, though.

And credit the Times for originality on this one. The paper has linked its web site with popular business networking destination LinkedIn.com. Beginning this week, LinkedIn members who read an article in the business or technology section of NYTimes.com will see a box pointing them to five stories selected for them on the basis of their LinkedIn profiles. There will also be ads, of course. This kind of profiling is a squishy area for Internet companies, which constantly walk the line between delivering value and treading on privacy. The advantage for the Times is that it’s trusted brand is less likely to incur outrage than some dot-com start

Zell on a Skewer

Brooklyn College professor Eric Alterman, who penned a best article so far this year about the newspaper industry’s travails, brings his sardonic wit to a short piece in the ultra-liberal political journal The Nation, which we somehow managed to overlook until today. Summing up the desperate cuts, price increases and rationalizations that we and others have been documenting for months, Alterman ultimately turns his canons on everybody’s favorite whipping post: Tribune Co. CEO Sam Zell.

Admittedly, making fun of Tribune’s “chief innovation officer,” Lee Abrams, is a little bit like beating up your grandmother. But Alterman can’t resist. Noting, among other things, that Abrams was surprised to learn that reports datelined “Baghdad” are actually written by reporters in Baghdad, he concludes, “The more one listens to the men and women at the top of the industry, the more it becomes obvious that the survival of the newspaper is going to have to come from somewhere else.” Unfortunately, Altman concludes that he has no great ideas for saving daily newspapers. He’s just quite certain that the people charged with doing it currently aren’t up to the task.

Miscellany

Tribune Co. executives are trying to reassure shell-shocked staffers that the worst may be over. In an interview on the company’s intranet on Tuesday, Zell and COO Randy Michaels said the company’s recent job cuts were intended to be swift and deep in order to avoid the “death by 1,000 cuts” scenario that is afflicting many of their competitors. Zell wouldn’t predict an end to the earnings free-fall, nor would he be held accountable for earlier promises that he wouldn’t cut his way to profitability. Michaels outlined some aggressive initiatives at member papers aimed at attracting new business.

---

Erica Smith, whose Paper Cuts Google Maps mashup vividly documents the industry’s slashing and burning, says Tribune Co.’s Florida properties have been keeping mum on recent job cuts. The Orlando Sentinel eliminated 16 jobs a week ago but didn’t fess up till Friday, she says. She also cites, as we did earlier this week, the Ft. Lauderdale Sun-Sentinel‘s self-demeaning decision to hide news of its own layoffs because of the editor’s concern that the news will get “butchered in the media.”

---

A group of Chicago Tribune staffers has published a list of their 50 favorite consumer magazines. While predictable candidates like Rolling Stone and The New Yorker are there, the list has some unexpected delights, including Modern Drunkard and Firehouse, which is, believe it or not, for people who love to chase fire engines. If only these print-biased editors had thought to hyperlink some of the titles they recommend. Incredible.

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.

---

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.

---

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.

---

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).

---

 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.

---

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.- 

---

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.

---

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.

---

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.

---

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.

---

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.

---

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.

Does print still have value? The people at neighborsgo.com would argue that it does. This website, which is a spinoff of the Dallas Morning News, is using a social network to anchor a community journalism initiative. Local residents create profiles and post information about their interests.

Every week, editors dig through content submitted by citizens and produce 18 local print editions. Here’s a description of how it works. The opportunity to be featured in print is a major impetus for local residents to contribute, says managing editor Oscar Marti­nez (left). And it may actually be a jump start for careers. One journalism student has used her trip to Beijing to contribute a series of articles on the preparations for the Olympics. The visibility she’s received has been worth more than any internship could offer.

Marti­nez is a career newspaper guy who made the switch to online media eight years ago. He understands the difficulties that print journalists are experiencing in moving to a new medium. In this audio interview, he talks about the innovations that are working for neighborsgo and how journalists can find their distinct value in a new world of consumer-generated media.

To play the interview, click on the button below. To download, right-click here and save to a local file. Playing time: 49:53

[audio:Neighborsgo.mp3]

I was a guest on a webcast about social software yesterday (you can watch it here; it’s free)  and the question came up about what publications can do to build community. I responded that they can’t do much and they shouldn’t even try because, with few exceptions, readers aren’t a community.

Then I checked my RSS reader this morning and noticed this item from Content Ninja that makes the very same point: “You cannot build a community around content.”

“Community” is a poorly understood term (just look at the variety of definitions in online reference sources) and, like many buzzwords, it is being overused right now. Publishers trying to escape their sinking  businesses are clinging to the community life raft, hoping that it offers hope for a future. For some it does, but that’s not a good prospect for most newspapers.

Newspapers have historically defined their communities geographically because that’s the business model that worked. While people who share a common space on the planet are technically  a community, they’re the least cohesive kind of community. Outside of a shared interest in certain issues like public safety or schools, residents of a city or town have little in common. They may occasionally form strong communities around common interests like a school bond or tax increase, but those groups invariably dissolve as the issue goes away.

There are readership communities that work. Readers of a special interest magazine about needlepoint or scuba diving are a type of community. Those people have intense shared interests and they are much more likely to bond together in an online forum that serves those interests. Publishers of special-interest magazines have the best chance of turning their readership into self-sustaining online communities.

Newspapers, however, don’t. Their strength is creating content and their best chance of building community involves giving people a chance to discuss, comment upon and contribute to their content. USA Today does about the best of any major newspaper at encouraging this kind of reader participation. But USA Today isn’t trying to become a community. Its management knows better than that.

Miscellany

• Jeff Jarvis suggests that it’s crazy for newspapers to operate their own websites and they should just hand over the back-end work to Google.  Newspapers should focus on what they do best: journalism and local ad sales. All the staff time and money spent building technology infrastructures is basically reinventing the wheel. He’s got a point.
• The Daily Telegram of Superior, Wisconsin will cut back from six to two print issues a week beginning this fall. The 6,000-circulation afternoon daily has been publishing for 118 years. A BusinessWeek account notes that theDaily Telegram competes vigorously with the Duluth News Tribune, which is only about five miles away and which is owned by the same publisher. We’re wondering if combining, rather than competing, might be a more practical approach.
• Washington State’s The Columbian laid off 20 people – eight of them in the editorial group – in the second round of cutbacks this year. The paper cut 30 positions back in February. Editor Lou Brancaccio told the Portland Business Journal that early retirements could trim the current staff of 306 even further.
• The delightfully vicious Tell Zell site gives Tribune Co. CEO Sam Zell a performance review using the company’s own performance management form.  The world is a better place because of anonymous blogs.
• Rev. Jesse Jackson’s stated desire to remove Barack Obama’s testicles apparently caused a minor uproar on copy desks around the country. In a bold bid to produce the most trivial news story of the week, the Columbia Journalism Review sends in a reporter to analyze how major titles dealt with the “nuts” crisis. Could anyone be less interested?

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.

---

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.

An intern at the Tampa Tribune has posted excerpts from a remarkable speech by Editor in Chief Janet Coats to her newsroom the other day. The newspaper had just announced plans to cut its newsroom staff by about 10% or 21 people. Coats said some politically unpopular things. ““People need to stop looking at TBO.com as an add-on to the Tampa Tribune,” intern Jessica DaSilva quotes Coats as saying. “The truth is that The Tampa Tribune is an add-on to TBO.”

Coats went on to compare the newspaper industry to the music industry, which is in a death spiral of its own right now. Demand for music has never been higher, but the record industry is hemorrhaging because its business model is tied to a distribution system that is now irrelevant. Newspapers will enter a death spiral of their own if they don’t change their thinking, Coats said.

Janet Coats is one smart editor, and let’s hope her staff responds to her rallying cry: “It’s worth fighting for.” While they’re at it, find a full-time job for Jessica DaSilva, who turns in a nice piece of reporting here.

Latest Cutbacks May Not Go Far Enough

Alan Mutter has a fascinating analysis of newspaper industry layoffs. He counts up all the cuts announced this year, compares them to previous downturns and concludes that publishers are cutting back far too little. In previous slowdowns, Mutter demonstrates, publishers cut headcount roughly in line with ad declines. This time around, though, they’ve trimmed less aggressively. It could be that publishers’ decisions to cut expenses in 2005, when business was good, made them think they were ahead of the game, but they’re actually falling further and further behind as the ad business spirals downward.

This is depressing news, and it further supports the likelihood that a death spiral is beginning. Death spirals happen when revenues decline faster than expenses. Companies avoid tough decisions about cost cuts, figuring that things will get better and they want to retain their best people. When things don’t get better, they find themselves scrambling to shed workers as quickly as possible. They take a hatchet to their workforce, which scares employees and spooks investors. The best people leave and the remaining employees cower in a corner, getting little done and mostly speculating about the next round of cost cuts. This happens every time a big corporation goes off a cliff, and the same scenario is ominously forming in newspapers today.

In light of Mutter’s analysis, the Tribune Co.’s recent aggressive cost-cutting measures may be smart business. Yesterday’s 250-person layoff at the Los Angeles Times, for example, was more than 8% of the total workforce. Nevertheless, with revenues falling at a 14% clip in the first quarter, it still may not be enough. Which sucks.

• The Milwaukee Journal Sentinel will cut 130 people, or about 10% of its workforce. Management is hoping to use buyouts and attrition, but will resort to layoffs to meet the number. The Journal Sentinel just won a Pulitzer.

Getting on the Hyper-local Train…Or Not

The Santa Cruz Sentinel is the latest paper to joint the reader-generated content trend. But instead of celebrating the addition of community-contributed articles to the new “Perspectives” section, an editorial presumably written by EIC Don Miller under the dour headline of “More changes at the Sentinel” makes it clear that this was not a popular decision. “I try to keep all these changes in … perspective. Because change is what is happening,” says the writer. “And for newspapers, in whatever form they will be published and delivered, to survive, change is what we have to do.” Wow, that oughta rally the community! (via Editors Weblog)

---

Steve Outing vamps on an earlier opinion he wrote with the controversial position that local news can be boring. Outing, who is an unabashed supporter of the “hyper-local” concept, uses his hometown newspaper as an example. The section devoted to reader-contributed items is full of uninteresting, poorly written and marginally relevant content. “I’m a believer in hyper-local! I just don’t think we’re doing it right yet,” he writes. Good point. Hyper-local doesn’t mean publishing every 4-H Club meeting announcement and blog entry citizens that citizens contribute. It’s about constructing a new kind of news service that targets specific interests. The prolific Outing offers some of his own ideas.

Miscellany

A columnist for the Rocky Mountain News proposes a novel idea: shut down his newspaper. Or maybe close the Denver Post. Either/or. The current business model isn’t working, says David Milstead. Denver has a been a joint operating agreement town for eight years, but the uneasy alliance between owners E.W. Scripps and Media General hasn’t led to sustained profitability for either of Denver’s two papers. Perhaps the best course of action is to shutter the weaker paper and the weaker website. Milstead suggests that this could result in the News continuing in print while the Post serves Denver online.

---

If you want to see heartening examples of the innovative things newspapers are doing, subscribe to Editor & Publisher’s Best of the Web feed.

---

McClatchy Vice President of News, Howard Weaver, has set up a wiki to seek ideas from staff members and really anyone who wants to weigh in. It’s lightly trafficked so far, but it’s still early. Advice to Weaver: the vast majority of wikis go nowhere. There seem to be two elements of success: 1) People have no other other way (like e-mail) to express their opinions; and 2) One or more people are actively tending the fires, responding to comments and posting new material. Just because you build it doesn’t mean they’ll come.

---

The Review-Atlas of Galesburg-Monmouth, IL will drop its Monday edition, following the lead of several small papers that have scaled back frequency in the same of cost savings. Monday is the smallest issue of the week for most newspapers and frequently loses money.

And Finally…

If the industry’s troubles have got you in a bad mood and you want to blog off some steam, change the routine a bit. Find an insult that’s  more offensive that the usual F-bomb and use language that won’t make a bad impression on the 4-year-old is in the back seat. Brush up on your scurrilous vernacular with the Shakespeare insult kit. Take it from the Bard himself and don’t be a qualling hedge-born moldwarp.

 

Another Boston Massacre is in the works, with the Herald and Globe both planning cost cuts. The Herald is taking the worst of the blows, announcing that it will lay off between 130 and 160 press operators, electricians and other production workers this summer and outsource its printing to presses in two towns, one of which is nearly 90 miles from its headquarters. The current presses are creaking with age and the paper has been exploring alternatives for some time, including possibly contracting with the rival Globe for printing (that didn’t happen).

Herald Publisher Patrick Purcell made a daring bid for expansion in 2001 with the purchase of the suburban newspaper chain Community Newspapers Co., but he sold the business five years later. The Herald is the perennial also-ran to the Globe in Boston and the loss of so many staffers is a major blow. The move to a printing press in faraway Chicopee also can’t help the paper’s ability to provide timely scores to the sports-crazed Boston fans. Neither of the accounts in the Herald or the Globe mentioned the size of the Herald’s total employee base.

The Globe’s news was less dire: it has asked the unions to agree to a 10% wage cut and is threatening to consolidate printing plans, a move that would strike the unionized workers hardest. The union is pissed, but there may be little they can do. The economic climate doesn’t leave them much negotiating room. The Globe has already been through two rounds of layoffs in the last three years.

Orange County Register Tests Offshoring

The Orange County Register will steal a page from the high tech and customer support industries and outsource some copy-editing to India on a trial basis. The one-month experiment is the first of its kind that we’re aware of, although some newspapers have reportedly toyed with covering routine local government meetings remotely in recent months. Officials at Orange County Register Communications made every effort to characterize the project as experimental and non-threatening to US-based employees, but that’s what tech executives said a decade ago when their industry was first considering offshore outsourcing. Forrester Research now estimates that 450,000 tech jobs a year will migrate overseas by 2012.

There’s no reason for the Register not to do this. Most educated Indians already speak English better than most educated Americans, and minor cultural nuances can be dealt with by domestic editors. What surprised us about this deal is that the Register limited it to one month. It will be impossible to assess success in that short a time, so our guess is that the Register either isn’t serious about the idea deal or that, more likely, its management is trying to minimize the negative public relations impact. In our opinion, it’s a bold approach that could quickly be imitated by many others.

Miscellany:

• When news leaked last week that the Orlando Sentinel was planning a major design overhaul as part of a campaign to change the look and feel of many of the papers in the Tribune Co. portfolio, the Death Watch suggested that readers would care less. Our skepticism has apparently been borne out, as Alan Mutter reports. Less than .05% of Sentinel readers voiced an opinion over the redesign. While eight people felt strongly enough to cancel their subscriptions, the 126 comments voiced in the first couple of days amount to a drop in the bucket. All told, the change is much ado about nothing.
• Palm Beach Newspapers Inc., owner of The Palm Beach Post, the Palm Beach Daily News, the Florida Pennysaver and La Palma, will cut 300 workers from its 1,350-person payroll. The company said it hopes to achieve the reductions through attrition and buyouts instead of layoffs. However, the likelihood of reducing staff by 22% through those means is low. “We are the last major Florida newspaper to implement staff reductions,” the publisher told the Post. However, the percentage of cuts is by far the largest of any nearby paper.
• The newspaper industry has always been able to take some consolation in the fact that (presumably older) C-level executives would continue to prefer newspapers to online alternatives. However, a new study by a Forbes and Gartner finds the opposite. The research determined that the percentage of senior executives who choose the Internet over newspapers as their primary source of business information has increased 37% in the last four years, while preference for newspapers and dropped by the same amount. Quoting from the Editor & Publisher account: “Before starting the work day, C-level executives prefer to access the Web rather than read the newspaper. The number of C-level executives who prefer the Internet first thing in the morning has increased 22% since 2004, while those who prefer to read the newspaper first thing in the morning has declined 11% over the same time period. C-level executives consume media on the Web more than any other medium.”
• Lost in the shuffle of McClatchy’s dramatic cost-cutting moves last week was the news that the Clovis Independent, a weekly serving the Fresno, CA region, would be closed after 103 years. Weeklies tend to rate little attention from big publishers or the media, but they are often tightly woven into the culture of their communities, especially after a century of operation.
• Danny Sanchez reminds us that newspapers are good for more than just reading. You can use them to remove odors from wet tennis shoes, for example. We never knew that!