By paulgillin | March 7, 2012 - 11:23 am - Posted in Fake News

Near the end of the overview section of the Pew Research Center’s exhaustive study of the business issues facing American newspapers, one unnamed executive sums up the industry’s dilemma:  “There might be a 90% chance you’ll accelerate the decline if you gamble and a 10% chance you might find the new model. No one is willing to take that chance.”

That’s it in a nutshell. The newspaper industry is standing on a railroad ­trestle 100 feet above a rushing river while a locomotive bears down on it. The only thing worse than getting hit by the train is jumping out of the way. The study outlines in depressing detail how paralyzed the industry is in its search for new business models, although there are glimmers of hope in the successes of a few innovators.

Pew’s Project for Excellence in Journalism surveyed 38 US newspapers and conducted extensive on-site follow-up interviews to examine the industry’s search for new business models. The sample was representative of the composition of US newspapers as a whole, with a mix of geographies and a preponderance of smaller titles.

In general, small papers are faring better than the large ones, but all are facing the same specter off print advertising declines that far exceed growth of digital alternatives. In fact, researchers concluded that for every $1 gained in new digital revenue, newspapers are losing $7 of print revenue.

“There’s no doubt we’re going out of business right now,” said one executive.

No Names, Please

How Quickly Newspapers are Growing Digital RevenueOne of the project’s most frustrating characteristics is its anonymity. Researchers had to promise not to name names in order to get executives to let down their guard. The result is some memorable quotes but few actionable examples. We learn of one small paper that posted 63% growth in digital revenue in the last full year while also growing print sales 8%. Another major metro daily was said to have grown its digital business 50% in the last year. It would great if these outliers would come forth and tell everyone else how they did it, but we may never know their identities.

The Pew study is emphatic in identifying the industry’s core problems as more cultural than operational. “There’s a big difference between understanding the new media environment and comprehending what it takes to adapt,” says one executive.

Fifteen years after the arrival of the commercial Internet, the industry continues to rely on print advertising to an alarming degree and has made only halting progress in developing new revenue streams. That isn’t for lack of trying. Everyone is trying to find digitally savvy salespeople, most are paying premiums for online ad sales and all publishers are aware of the need to experiment with alternative revenue sources like daily deals and business services.

However, they’re mostly having meager results. Few papers studied in the report are taking advantage of the growth in targeted digital advertising. Most are still reliant upon low-margin display ads. Nearly half of the publications have experimented with alternative revenue streams like consulting services and digital shopping malls, but only one reported any significant revenue.

Culture Clash

Unfortunately, rapid sales declines in the profitable print business are creating a hair’s-on-fire hysteria that sabotages change. The kind of salespeople publishers need to hire don’t want to work in an industry that’s in crisis. The number of print-focused sales representatives outnumber digitally focused reps by about 3-1 at the newspapers surveyed and there continues to be debate at some companies about whether digital is event the future. That sounds incredible, but the study identifies entrenched resistance among many publishers to diverging from the business model that served them so well in the days of monopoly market share and 20% profit margins.

Officials at 10 of the 13 companies said their biggest challenge was the continuing tension between people in their organizations who are advocating a more aggressive digital approach and those more aligned with the legacy tradition. In essence, they described a conflict between going faster and going slower…”We haven’t needed innovative people,” explained one executive. “So you get what you need. The kind of people that came into this industry were more operationally focused, executors instead of innovator risk takers.”

The good news is that there is broad awareness at the highest levels of the companies surveyed that the industry’s problems aren’t going to heal themselves. In fact, no one quoted in the report suggests that the current downturn is temporary or cyclical. Where they differ is on what to do about it. “The data and interviews suggest companies are almost evenly divided between optimists and pessimists-evidence of a lack of consensus on how to proceed in developing the new business model,” the report says. Unfortunately, at a time like this the only certainty is that inaction is death.

By paulgillin | March 6, 2012 - 6:06 pm - Posted in Fake News

Inflation-Adjusted US Print Newspaper Revenues, 1950-2011

Source: Mark Perry

By paulgillin | February 28, 2012 - 7:25 pm - Posted in Fake News

Latitude News logoIf you’re the type of person who skips past the international section in the newspaper because it just isn’t relevant to you, maybe you should have a look at Latitude News.

The fledgling operation, which was launched in November, doesn’t look particularly different from any news site on the Web at first glance. The intriguing philosophy that underlies it, however, says a lot about how the Internet has crafted a global village.

Latitude News’ focus is mainly on international events, but it approaches them with an eye toward the U.S. audience. A piece on the recovering business climate in Poland is framed in terms of the reverse diaspora it has sparked among Poles in the U.S., who are now returning home in droves. It was one of the few outlets to report on Brazilian aerospace company Embraer’s entry into the U.S. market for what has historically been an American stronghold: corporate jets.

These kinds of stories might have run in any U.S. newspaper, but Latitude news founder Maria Balinska wants them to be a staple of a new service that takes a novel look at international events.

“There are lots of people in the U.S. for whom it’s not a stretch to go to the BBC or The Guardian,” she said in an interview. “What’s missing is a bridge between their experiences and what those outlets are reporting on.”

In other words, one of the reasons most Americans care so little about overseas news is that they see no relevance to their own lives. The mission of Latitude News is to find those threads and draw them out so that Americans can understand how international events affect them. “People are put off by things that seem very far away,” she said. “Our view is that if there isn’t a local angle, we shouldn’t do it.”

Globe Trotter

Latitude News Founder Maria BalinskaThe idea for Latitude News sprang from Balinska’s multi-cultural childhood and peripatetic career as a journalist working in Europe. She had lived in five countries and attended 10 schools by the age of 18. As a journalist working on the European continent and for the BBC she became fascinated with the international stories that captured the attention of British readers. “People were very interested in individual storytelling and in comparisons,” she said. “They wanted to understand what they could learn from the French health system or what mountains of garbage in Germany meant to them.” She explains some of the research and thinking that led to Latitude News here.

Balinska returned to the U.S. on a Nieman Fellowship two years ago and took advantage of an International Women’s Media Foundation grant to get the venture off the ground. She’s been able to hire a small full-time staff and has some freelance dollars to spend. “We’re looking for people who have a global perspective but who can scratch the surface of American communities and find links and parallels,” she said.

Storytelling is a core feature of the service. In contrast to the often detached perspective readers see in international news coverage, Latitude News strives to find people whose experiences illustrate the local impact of faraway events.

For example, the staff is currently trying to reach victims of the Syrian diaspora who have fled to the U.S. to see if activists living here may later emerge as leaders back in Syria. A story on the Greek debt crisis  is told from the perspective of three Greek citizens who are learning to cope with an economy in a tailspin.

Balinska won’t say how much funding the venture has raised or when it will become self-sustaining. The site is still rough around the edges (clicking on one of the featured stories on the home page today returned a 404 error) and working on a unique voice, but it’s yet another example of how journalists are stepping in to fill the vacuum left by traditional news organizations with innovative experiments.

 

By paulgillin | February 11, 2012 - 10:38 am - Posted in Fake News

We would have thought that the devastation of mainstream media in general – and the newspaper industry in particular – would confer some humility on daily newspaper editors. Then we read a story like this one.

To summarize: A man in his 40s who has lived a mostly trouble-free life with his wife and children picks up the newspaper one day to find his photo on the front page next to a story about a child rapist who happens to have the same name. It appears the newspaper had used a file photo taken 11 months earlier without making much effort to check that the person in the photo was the same as the person who had been indicted. Both men are named Angel Ortiz, a Spanish name that’s about as common as Nick Jones in the English-speaking world. Furthermore, no one at the newspaper appeared to notice that the Ortiz who had been charged with rape is in his 20s while the Ortiz in the photo is in his 40s.

That’s bad enough, but what really angered us was this passage:

[Ortiz lawyer David] Rich said he wrote a letter to The MetroWest Daily News Editor Richard Lodge on Dec. 16, demanding a front page retraction. Lodge responded the paper would run something the next day, Saturday, Dec. 17, according to Rich, and he told Rich the photo was  “immediately removed the photo from the website,” upon receipt of the letter.

“The retraction ran on the bottom of page 2, with no photo,” said Rich…Ortiz never received a personal letter of apology from anyone at the daily newspaper, added Rich.

According to Rich, Ortiz lost his job after the story appeared and has been unable to find employment. He hides in his house for fear that he will be assaulted if recognized in public. He’s living in hell thanks to a mistake that could have been easily avoided with a look into the archives or an address check.

In our view, a front-page retraction and apology would be the least the paper could do to help put this guy’s life back in order. But they didn’t even send a letter.

What do you think the editors should have done?

 

 

By paulgillin | February 7, 2012 - 4:50 pm - Posted in Fake News

Tablet computers have been hailed as the salvation of the newspaper industry, but most publishers are squandering the opportunity, writes Newsosaur Alan Mutter in a searing sendup of newspaper tablet apps on Editor & Publisher.

“In contrast to the crisp, graphically engaging and highly interactive apps flooding the Apple store, the typical newspaper site is filled with gray, meandering columns of text requiring multiple swipes to get to the bottom of the page. That is to say: Newspapers don’t come close to leveraging the power of this new medium,” Mutter writes, pointing to products from the San Francisco Chronicle, Philadelphia Inquirer and even The New York Times as examples.

Many publishers are opting to use the native tablet browser to deliver content rather than customizing the experience for the device, and some are simply delivering PDF versions of their print products, Mutter says. This laziness is particularly alarming in light of the fact that people who consume information on tablets are among the most desirable prospects for paid circulation and advertising. The Newsosaur believes once they get a load of the visually rich and interactive offerings from magazine and broadcast competitors they’ll never come back to the digital broadsheets being offered by the dailies.

Although we own a tablet, we’ll admit we haven’t spent much time surveying the landscape of news apps. RSS feeds do the job just fine for us. However, if Mutter’s critique is on the mark, this is a head-slappingly stupid mistake on the part of publishers, who finally have a platform that at least some people are willing to pay for. Anyone who has worked in both print and digital media will tell you that the design and presentation skills that work in one format fail badly in the other. The worst mistake a print publisher can make is to put print designers in charge of online look and feel. It’s even worse on tablets, where apps offer a whole new level of interactivity. This is software, not ink on dead trees.

NYT Co. Takes Earnings Hit

New York Times Media Group revenue

Now the sobering news about The New York Times. Coming off a promising third quarter in which the company reported strong growth in subscriptions to its digital editions, parent New York Times Co. reported a $40 million loss in the fourth quarter on an 8% decline in print advertising. The paper’s paywall continues to thrive, and digital advertising revenue was up 5% in the quarter. However, the success online can’t make up for the continued free-fall in the much more profitable print advertising business.

The collapse of that revenue stream was dramatized by blogger Paul McMorrow, who came up with the chart at right. We can’t vouch for the accuracy of the numbers, but the choice of scale demonstrates clearly the industry’s dilemma. Digital revenue is nowhere close to making up for the decline in print.

The Times Co. was also hurt by a dramatic drop in the performance of About.com, the online encyclopedia/how-to engine it acquired for $410 million 2005. About.com was victimized by recent changes to Google’s search algorithms that penalized so-called “content farms” like Demand Media, which pay freelancers pennies to produce crap in the name of driving search traffic. About.com used to top Google search results for a lot of popular consumer queries, but no more. Profits at the site dropped 67% in the quarter on a 25% revenue decline.

 Miscellany

Social media is beginning to cover itself. Social blogging site Tumblr, which hosts more than 42 million blogs, will hire two professional editors to write about what’s going on on Tumblr. The thinking is that a community with that many members must generate a lot of content all by itself. Twitter and Facebook have both recently hired journalists to write about what’s hot in those communities.


Speaking of Facebook, if you’re trying to improve your presence there, take a few tips from Entrepreneur magazine. Starr Hall’s advice includes naming your page appropriately and greeting visitors with a “welcome” page rather than the Facebook wall. And have you heard about the new subscribe feature that lets people follow your public updates without friending you? Read more about that. We also recommend these tips for small businesses and these tips for slightly larger businesses, perhaps because we wrote them. The key to success on the world’s largest social network is engagement, not publishing. Ask questions, prompt response, provoke and amuse. Our vote for the most awesome Facebook page: Skittles. Unique voice and dripping with personality. “Skittles now has 20 million fans? If I had that many guinea pigs, I’d be unstoppable.”

By paulgillin | January 19, 2012 - 2:59 pm - Posted in Fake News

this release is republished verbatim from eMarketer. More here.

U.S. Print Versus Online Ad Spending ForecastUS online advertising spending, which grew 23% to $32.03 billion in 2011, is expected to grow an additional 23.3% to $39.5 billion this year-pushing it ahead of total spending on print newspapers and magazines, according to eMarketer. Print advertising spending is expected to fall to $33.8 billion in 2012 from $36 billion in 2011.

Online Growing Even Faster Than Expected: eMarketer’s previous US online advertising forecast from July 2011 was among the more bullish estimates issued during the year-forecasting 20.2% growth to $31.1 billion in 2011-yet consistently stronger-than-expected results from major industry players and the IAB/PwC benchmark through the first three quarters of 2011 contributed to the upward revision.

Total Ad Spending is Growing Too: Despite concerns about the troubled economy among agencies and marketers, total ad spending in the US is expected to rebound in 2012 after rising 3.4% to $158.9 billion in 2011, according to eMarketer. US total media ad spending will grow an estimated 6.7% to $169.48 in 2012, boosted by the national elections and summer Olympics in London, eMarketer estimates.

TV is Steadily Up: Spending on TV advertising grew 2.8% in 2011 to $60.7 billion, eMarketer estimates. This year, TV ad spending will grow an estimated 6.8% to $64.8 billion-driven the Olympics and election-while remaining resilient from worries about the soft economy.

Digital remains the sole bright spot for newspapers and magazines: eMarketer estimates US digital newspaper ad revenues grew 8.3% to $3.3 billion in 2011. Print advertising revenues at newspapers fell 9.3% to $20.7 billion in 2011. At magazines, US print ad revenues are expected to rise 0.5% to $15.34 billion in 2012, up from $15.3 billion last year. US digital advertising spending at magazines grew 18.8% to $2.7 billion in 2011.

By paulgillin | January 12, 2012 - 10:40 am - Posted in Fake News

Two-thirds of Michigan households will be unable to get daily newspaper delivery after the end of this month, notes Alan Mutter in his column in Editor & Publisher. Michigan is only the most dramatic example of a quiet yet dramatic change that is sweeping the U.S. newspaper industry as publishers make the most painful cut of all and trim distribution schedules.

Newspapers on doorstepThe most visible manifestation of this trend is the experiment in Detroit in which the two major dailies, which operate as a partnership, cut home delivery to three days per week in early 2009. Mutter notes that the daily circulation of the Free Press and the Detroit News both fell by more than half between March, 2008 and March, 2011. Sunday circulation of the Free Press, which is the only game in town on that day, is down 21.6%.

Newspapers in Grand Rapids, Kalamazoo, Muskegon, and Jackson are set to scale back home delivery from seven days to three in February. The newspapers will still be published daily but will only be delivered to doorsteps on Tuesday, Thursday and Sunday. As in Detroit, publisher Advance Publications said the move is part of a shift to a “digital first” strategy. It’s also a cost-cutting measure, as evidenced by Erica Smith’s estimate of more than 360 layoffs.

Mutter notes that many other dailies have quietly cut back publication schedules. We heard the total was more than 100 two years ago, but no one tracks this trend to our knowledge. Reducing frequency is the last and most painful cutback to make, but few publishers have any choice as advertising revenues have dwindled by more than half over the last six years.

In the Michigan examples, publishers are still able to claim that there newspapers are “daily,” even though many fewer people read them. It’s notable that the economics of the industry now dictate that the biggest savings are gained from cutting back on delivery trucks and drivers rather than presses and paper. Trucker unions, whose bargaining power has been eviscerated by concessions over the last three years, have little leverage and can only hope to retain the dwindling number of jobs that are left.

We noted recently that forecasts that 1,400 daily newspapers could disappear over the next five years are perhaps not overstated. That doesn’t mean these titles will disappear from the earth but rather they won’t publish on a daily schedule. But does daily frequency even matter anymore? The daily newspaper as we know it was designed for an age when people consumed their news at the same time every day. Thanks to the profusion of computers in the workplace and smart phones in the pocket, people now access news whenever it’s convenient for them. The news organizations that survive will move to a “digital first” strategy with all deliberate speed. In that respect, the Michigan experiments may represent the leading edge of where the entire industry is going.

The most troubling aspect of the Detroit experiment is that circulation has fallen across the board, including the profitable Thursday and Sunday editions. This accelerates the death spiral in which circulation declines lead to cutbacks in editorial content, which spark further circulation declines. Newspapers that sacrifice their daily status are thus ever more pressed to move to profitable digital models.

Miscellany

Newspaper layoffs have created a lot of empty office space, so in Philadelphia they’ve come up with a novel experiment to put it to good use. Philadelphia Media Network, owner of the Philadelphia Inquirer and Daily News is hosting three media-related startups in space once occupied by staff journalists. The trade-off for the tech firms is that they must give Philadelphia Media an early look at what they’re building. The media company also hopes that staffers at the publishing company will learn a few things by rubbing shoulders with entrepreneurs who are focused on creating profitable businesses quickly. A similar experiment is underway at the Boston Globe.


It was only a matter of time before publishers started giving away e-readers in exchange for subscriptions. Barnes & Noble, which is struggling to compete in the tablet market against a newly aggressive Amazon, is giving away a free black & white Nook reader to people who buy a one-year subscription to The New York Times. Alternatively, subscribers can opt to buy a color Nook reader for $99, which is $150 below the retail price.

By paulgillin | January 5, 2012 - 12:25 pm - Posted in Fake News

We’ve posted several positive items about the local Patch operation in our community, a one-person news bureau that has become our favorite – and most timely – source of information about local events. So we feel it’s also important to share the news that AOL’s Patch operation, a constellation of more than 800 hyperlocal news sites, looks like a train wreck.

Tim Armstrong, AOLBusiness Inside says Patch has generated only about $8 million in revenue in 2011 on an investment of more than $160 million. InvestorPlace says revenues were closer to $20 million, but that Patch still lost $150 million on the year. Some investors are calling for the head of Tim Armstrong (right) the former Google executive who took the helm at AOL nearly three years ago. Armstrong conceived of Patch in 2007 and funded the first two years of its operations before assuming the top job at AOL in 2009 and buying Patch outright. Since then he’s embarked upon an aggressive expansion program to place hyperlocal news bureaus in as many US locations as possible. He’s also spent lavishly on the acquisitions of Huffington Post and TechCrunch. At this point, critics are calling the strategy a bust.

The problem with Patch is that the hyperlocal revenue model doesn’t work nearly as well as the hyperlocal news model. According to Business Inside, Patch sells advertising through a network of mostly outsourced telesales representatives. It’s clear that these sales people don’t have their tentacles into the local communities that are the core of Patch’s model. The advertising on our own local outlet is mostly a mix of display ads from big national brands (presumably sold at remainder prices), Google AdSense and a smattering of classifieds. With that kind of revenue base, it’s not surprising Patch is losing a fortune.

As we’ve argued before, the hyperlocal model needs to work from both the content and revenue perspectives. Patch has clearly succeeded in hiring editors who are closely tied in to their communities, but it isn’t doing that on the sales side. This is a tough problem to solve. Small businesses aren’t big advertisers to begin with, and the cost of deploying dedicated sales reps to 800 local communities would be far higher than the centralized telesales model. On the other hand, the centralized model isn’t exactly killing it.

We hope Patch figures it out, because it’s inventing some creative new ways to report the news. We continue to like the business model of Sacramento Press, which positions itself as an integrated marketing partner rather than an advertising outlet. Addiction to advertising revenue is one of the reasons newspapers are in so much trouble in the first place. In its current iteration, Patch appears to be making the same mistakes.

Miscellany

As if reporters don’t like to gripe enough, there’s a new website where they can do it anonymously in public. It’s called Dash30Dash.org, and it was started by a former newspaper reporter who wants “to give reporters, editors and others a chance to post comments about their jobs and their ever-changing profession.” So far, it looks like the commentaries are mostly limited to contributions from the site’s creator, but it’s still early. The writing is lively and pointed, so check it out.


An Australian philanthropist and Internet entrepreneur has pledged more than $15 million to fund a new, nonprofit media venture called The Global Mail. Graeme Wood says he has only one goal in mind: “produce public-interest journalism.”

Wood, whose personal fortune is estimated at $337 million, was apparently taken with the example of ProPublica in the U.S. That nonprofit investigative venture was also started with a large grant from a single donor but has been successfully diversifying its support base and now employs 34 editorial staff members. Wood’s commitment to support The Global Mail for at least five years resulted from a dinner party conversation with former Australian Broadcast Corp. journalist Monica Attard, who is now the site’s editor-in-chief. That’s pretty good sales efficiency in our book.

 

By paulgillin | December 20, 2011 - 2:11 pm - Posted in Fake News

Building ImplosionThe Annenberg School at the University of Southern California created a stir last week with its prediction that only four US daily newspapers will still be in print in five years. “We believe that the only print newspapers that will survive will be at the extremes of the medium – the largest and the smallest,” said Jeffery I. Cole, the school’s director of the Center for the Digital Future. “It’s likely that only four major daily newspapers will continue in print form: The New York Times, USA Today, the Washington Post, and the Wall Street Journal.  At the other extreme, local weekly newspapers may still survive.”

How could this be? There are still more than 1,400 metro daily newspapers publishing in print in the US. As one tweeter pointed out, dailies would have to perish at the rate of five per week in order to meet USC Annenberg’s forecast.

We think the five-year timeframe is pessimistic, but we certainly believe USC Annenberg’s prediction will come true within a decade. We made precisely the same prediction five years ago – including identifying the same four titles Annenberg did – only we gave the print industry until 2025 to implode. It now appears that we were optimistic.

Here’s why the Annenberg prediction isn’t so far-fetched. American newspapers had a near-death experience three years ago when two venerable dailies – the Seattle Post-Intelligencer and the Rocky Mountain News – closed their doors, each after more than a century of continuous publication. Two other major titles – the San Francisco Chronicle and the Boston Globe – had their own brush with the reaper at the same time. Both were pulled back from the brink only after their unions made massive concessions and hundreds of highly-paid journalists lost their jobs.

Busting the Union

Early 2009 was when publishers broke the back of the Newspaper Guild. At the Globe, the union bargaining position was so weak that the contract that members finally accepted was actually worse than management’s original offer three months earlier. The showdown at the Globe was a turning point for the US newspaper industry. The management victory in the labor negotiations was so complete that publishers across the country were effectively given carte blanche to fire people by the thousands. Which they did. The amazing Erica Smith counted nearly 15,000 newspaper layoffs in 2009 and another 6,700 in the two years since. And her count doesn’t include the many jobs that were eliminated or scaled back without public announcement.

Newspaper publishers basically bought themselves time, and they used it to bring costs in line with revenues. Most newspapers have drastically scaled back the size of their print editions and many have cut back regional distribution. Publishers have raised subscription prices to milk more dollars out of the dwindling cadre of loyalists who are willing to pay for print. Unfortunately, they don’t have much time. The average ago of a daily newspaper reader in the US today is between 56 and 60, depending on whose estimates you believe. That population will shrink more rapidly than any other demographic group over the next 10 or 15 years. Seniors are also the least attractive audience to the advertisers who support print advertising. It’s a bad combination.

For the time being, printed newspapers can survive simply by cutting costs and raising subscription fees, but that strategy invariably turns into a death spiral. At some point publishers will no longer be able to afford to deliver a product that people want to pay to read in print.

Tipping Point

Circulation declines, which have been running about 8% to 10% annually, will accelerate. A tipping point will be reached and the whole print model will fall apart. We don’t know when that threshold will be reached, but demographic trends that indicate it will certainly happen within the next 10 years and will probably hit a lot of titles simultaneously.

The death of the printed daily doesn’t mean the death of print. Many publishers have cut back out unprofitable Saturday and Monday editions as a way to save costs, and more will certainly follow suit. Sunday editions may be around 20 years from now because of the revenue from flyers and coupons. But many newspapers will no longer be able to support a daily publishing schedule within a few years.

That’s the bad news. The good news is that many publishers are beginning to figure out the economics of digital revenues. A milestone was reached just a couple of months ago when the New York Times Co. released its first earnings report since it instituted a paywall early this year. As we reported at the time, Ryan Chitturn of the Columbia Journalism Review estimated that the Times’ digital revenue in the quarter actually exceeded its editorial costs, meaning that the paper could conceivably publish profitably without a print edition. We don’t expect the Times will shut down its presses anytime soon, but publishers across the country should cheer its success at crossing that threshold.

The Times is making the move to digital faster and more effectively than any other daily newspaper. Assuming other publishers follow its lead, we can expect that many major metro dailies will figure out a sustainable digital formula over the next five years. At that point they can begin to wind down their print operations without fear of giving up the farm. This won’t be pretty. Lots of jobs will go away when the presses shut down. However, the brands may survive and even begin to grow again.


Speaking of The New York Times, the parent Times Company is in “advanced talks” to sell off 16 regional newspapers, including titles in Florida, California, North Carolina, and Alabama. The Times Co. will continue to own the Globe and International Herald Tribune. Analysts are saying the move simply removes a headache for the Times, since the regional media were collectively losing money, and the company can now focus on its core business, which is a good thing these days.

Miscellany

We know the U.S. Postal Service is hemorrhaging money and facing criticism that it’s slow, antiquated and inflexible. So in a bold move to remedy its situation, the USPS is responding by becoming slower and less flexible. Read what the recently announced changes in service mean to publishers. We actually don’t want to be too hard on the Post Office, since many of its problems stem from a congressional requirement that it fund retiree health benefits 75 years into the future. That’s not a typo: 75 years.

And Finally…

Craig SilvermanThe holidays bring family, friends, eggnog, and, best of all, the Crunks. Only they’re not called the Crunks any more since our friend Craig Silverman (left) gained the legitimacy of a Poynter affiliation and began publishing his collection of the year’s best media gaffes as “The year in media errors and corrections” on Poynter Online. Thankfully, the content is still the same.

This year’s roundup of the funniest and most outrageous mistakes and corrections is headlined by several major news organizations that confused the President of the United States with the world’s most notorious terrorist and announced the death of “Obama Bin Laden.” One anchorwoman on Canadian television made the mistake three times in just 17 seconds and apparently didn’t even notice.

We like the newspaper headline that reminded readers to “turn your cocks back one hour at 2 a.m. Sunday,” but our favorite is a lengthy correction from The Guardian about this year’s Royal wedding. It includes the passage:

“The piece referred to “damaging stories of royal profligacy past: Charles with his staff of 150, and an aide to squeeze his toothpaste for him”. [The couple’s press secretary] writes, “The Prince of Wales does not employ and has never employed an aide to squeeze his toothpaste for him. This is a myth without any basis in factual accuracy.”

This stuff is too good to be made up. Thank you, Craig.

By paulgillin | December 14, 2011 - 10:26 am - Posted in Fake News

The federal judge has ruled that a woman who describes herself as an “investigative blogger” is not entitled to First Amendment protection for allegedly defamatory statements she made about an Oregon attorney.

Crystal CoxCrystal Cox (right), a real estate agent and blogger from Eureka, Mont., set up a network of websites, including this one, that criticize the conduct of attorney Kevin Padrick in his role as trustee of the failed financial firm called Summit Accommodators, which collapsed in 2008 amid charges of fraud.

Among Cox’ accusations is that Padrick hired a hitman to kill her, a charge that Padrick vigorously denies. The attorney says that Cox’ allegations have so overwhelmed the search engines that his business is off more than 80% this year. “Google ‘Kevin Padrick’ and you’ll see the first 10 pages are from Crystal Cox,” Padrick told Oregon Live.

Cox, who sarcastically describes herself as an “Unhinged Blogger Exposing Corruption in the US Bankruptcy Courts,” fills her blog with accusations, obscenities and character assassination, tactics which are typical of hate bloggers. “‘Unhinged Blogger’ Crazy Crystal Cox Says that Jeff Manning of the Oregonian is Bought and Paid for AGAIN, oh and Jeff Manning, Oregonian, is an Asshole,” she titled one post. It’s filled with accusations about an investigative reporter for the Oregonian newspaper, none of which are backed by citations. The post is peppered with links to copies of the same article on other websites, most of which are presumably maintained by Cox, as well links to other hate sites that the author has created.

On the other hand, Cox has also assembled a substantial library of documents related to Kevin Padrick and the trust he administers. She presents most of these without comment, challenging her audience to do their own research. We demurred, but we admit that she appears to have done her homework.

In ruling that Cox was not entitled to the protections provided to mainstream news outlets, U.S. District Judge Marco Hernandez said the blogger “was not a journalist because she offered no professional qualifications as a journalist or legitimate news outlet. She had no journalism education, credentials or affiliation with a recognized news outlet, proof of adhering to journalistic standards such as editing or checking her facts, evidence she produced an independent product or evidence she ever tried to get both sides of the story,” according to the AP report.

So who’s right in this case? Much as we find Cox’ vendetta-fueled tactics repugnant, we’re more concerned about any efforts to inhibit free speech, even by someone who is clearly a little nuts. However, we are also concerned about attempts to create distinctions between traditional and new media. We’d rather see this case judged as a libel issue, where precedents are clearly established. Why is the distinction between blogger and media outlet even meaningful at a time when properties like Huffington Post and Mashable can go from sideline to superpower in a matter of a couple of years?

There is an intriguing dimension to this case that the court didn’t address: the impact of Cox’ activities on her target’s search engine performance. The case illustrates that a motivated and energetic blogger can significantly damage someone else’s reputation by surrounding their name with negative keywords in search results. Is that a form of libel? Could Google be compelled to change its search algorithm as a consequence of a First Amendment court decision? Do we even want to go there?