Mark Glaser invites two big thinkers on opposite sides of the micropayment debate – Techdirt’s Mike Masnick and The New York Times‘ David Carr – to spar with each other and try to reach some common ground. The result is what you’d expect when you put two talented writers into competition with each other: Great wordplay and eventual meeting in the middle.
Both combatants agree that putting paywalls in front of existing content is suicidal, although Carr believes that citizens will shell out once they realize that the alternative is cacophony. Masnick wins the award for best imagery: Paywalls are “putting up a tollbooth on a 50-lane highway where the other 49 lanes have no tollbooth,” he writes. He sees no merit in paywalls whatsoever, while Carr believes they can work in some scenarios.
Carr
Carr suggests that micropayments should be looked upon “as payments for news applications instead.” In fact, the Times’ media columnist never suggests that charging readers for what they now get for free is a viable strategy. But since the status quo is no longer viable, shouldn’t publishers experiment aggressively with hybrid models?
In the end, that’s where the debaters end up. Both agree that blended paid and ad-supported models have the greatest chance of success. And if you re-read the first part of the two part series, you see that both basically suggested that approach at the outset. So maybe the “debate” was a bit of a fabrication to begin with, but at least it got our attention. And isn’t that the goal after all?
Media Employment Trend Not All Bleak
Over at BusinessWeek, Michael Mandel is looking at employment in US information industries. Using Bureau of Labor Statistics figures, he finds evidence that “someone is hiring out there,” but it isn’t newspapers, which have seen employment fall by about 40% since 1990. Mandel’s analysis goes beyond newspaper employment to look at job trends in broadcast, Internet and “other information services.” What’s interesting is the growth in the “other” category. It’s the only segment of the market that’s above Internet bubble employment levels (although the actual numbers are quite small). Mandel promises more analysis in future posts.
Jeff Jarvis takes issue with Mandel’s whole premise, calling it “measuring the wrong economy: the old, centralized, big economy. In both cases, he misses new value elsewhere in the small economy of entrepreneurs and the noneconomy of volunteers.” In Jarvis’s view, media isn’t dying so much as restructuring itself in a “post-industry” model characterized by vastly more efficient means of production, a distributed workforce and a decentralized approach to nearly everything. Innovation hasn’t left the building, he says, it has merely left the buildings where priesthoods dwell. To see the new media economy taking shape, you have to look at Wikipedia and eBay for guidance, not The New York Times and Macy’s.
Miscellany
It’s a two-horse race to own the Boston Globe, and one horse just got stronger. Former Globe executive Stephen Taylor has been joined by his cousin Benjamin in a bid for the Globe and its sister Worcester Telegram that’s estimated at $35 million plus the assumption of $59 million in pension obligations. Benjamin Taylor was the last member of the Taylor family to serve as publisher; he was ousted by owner New York Times Co. in 1999. The Taylors are squared off against Platinum Equity Partners, a Beverly Hills-based investment firm that successfully purchased the San Diego Union-Tribune earlier this year and that is bidding on several other newspapers around the country. A third potential bidder headed by private-equity executive Stephen Pagliuca has dropped out of the race, with Pagliuca instead electing to run for Sen. Edward Kennedy’s vacant Senate seat.
Members of the Boston Globe chapter of the Newspaper Guild have launched a petition drive to oust the chapter’s seven-member executive committee. Disgruntled union members seem to think they got a raw deal because negotiators at first rejected management’s call for pay cuts, only to later accept an even worse deal after the New York Times Co. drew a line in the sand.
We’ve been hearing anecdotally for some time that community newspapers are faring better than their big-city brethren. Now the organization called Suburban Newspapers of Americahas the numbers to back it up. Ad revenue at community papers was off 12.4% in the second quarter compared to a year ago. In contrast, major metros saw declines of 29%. Community papers are also seeing earlier slowing of the rate of decline, which indicates that the worst may be over, at least for now.
A federal judge has cleared the way for the Minneapolis Star Tribune to emerge from bankruptcy next week. The newspaper that McClatchy Corp. paid $1.2 billion for in 1998 is now essentially worthless, its fate being in the hands of a committee of secured creditors who will choose a new publisher to replace Chis Harte, who’s stepping down. New board members include former Wall Street Journal publisher L. Gordon Crovitz and GateHouse Media head Michael E. Reed.
Red-faced board members at The New York Times Co. have had to withdrawn compensation awarded to Chairman Arthur Sulzberger Jr. and CEO Janet Robinson because stock option grants and bonus compensation exceeded company policy. Sulzberger and Robinson will have to give back some stock options and agree to a $3 million cap on bonus compensation if they exceed all their goals, compared to the $3.5 million originally promised.
Robert Niles has an inspiring essay on Online Journalism Review about Eight things that journalism students should demand from their journalism schools. We particularly like #8: “Passion, not excuses.” If you’re associated with a J-school, ask if this description applies to your faculty: “Instructors [who] complain about the state of the news business, griping how much better it used to be and how awful bloggers/forums/websites are.” Pining for the old days isn’t going to help anyone build a career in the new journalism economy. Niles asks for teachers who are fired up about the new model of journalism and who can inspire passion in their students. He also suggests that students use the new tools of publishing to build a base of followers before the job-seek. “Who ya gonna hire?” he asks. “The student with potential… or the student who’s already got 50,000 unique readers a month?”
By paulgillin | September 11, 2009 - 7:48 am - Posted in Fake News
The newspaper industry is all abuzz about Google’s submission of a micropayment proposal to the Newspaper Association of America (NAA, see latest ad at right). Nieman Journalism Lab first reported Google’s involvement and has been birddogging it the last couple of days. Google basically proposed to make its Google Checkout service available to publishers who want to charge for content. You can read the eight-page Google proposal here. Nieman’s Zachary Seward followed up to try to get Google to elaborate, but was simply told that “we don’t have any specific new services to announce but we’re always looking for ways to make payments online more efficient and user-friendly.”
In fact, the document is pretty standard boilerplate material about Google Checkout, but with one interesting twist. It notes that “micropayments will be a payment vehicle available to both Google and non-Google properties within the next year. The idea is to allow viable payments of a penny to several dollars by aggregating purchases across merchants and over time.” This approach would enable subscribers to set up accounts spanning multiple media properties and would aggregate their charges into a single bill. So, for example, a reader could subscribe to The New York Times, The Economist and Advertising Age and automatically receive access to pay-walled material from those publications without having to jump through registration and sign-on hoops.
Visitors who were not subscribers to those services could choose to pay by the drink for content. The whole process of enabling access and billing a few pennies for it would be handled by Google’s back-end servers. There are even options to enable free-trial access with a paid conversion option. All charges would be aggregated into a single bill. Google also proposes ideas to index content and display search results differently depending on a subscriber’s status. In other words, a subscriber to the Washington Post would see different search results than a non-subscriber and would also be able to click through to a full article without registering.
Journalism Online’s Grand Assumptions
Google is only one of several vendors that submitted bids to the NAA. Journalism Online, the much talked-about Steven Brill venture that has reportedly signed up 500 newspapers as clients for its micropayment service, also submitted a proposal that details its commission structure for the first time. Seward analyzes it here and the entire submission is here. Journalism Online basically proposes to take a 20% commission on subscriber revenues.
Maybe we’re missing something, but the Journalism Online math looks pretty twisted to us. Its proposal includes the business model for a mythical one-million-print-circulation newspaper (now that is a myth) with 800,000 home delivery subscribers and 20 million unique online visitors. Annual print circulation revenue is estimated at $600 million a year, which translates into $750 per subscriber. Our own local paper charges about $400. The model also estimates that the website will have 2.2 million subscribers in year two, which means that 11% of the unique website visitors are paying something for content. Again, this sounds optimistic. Renewal rates are given an equally buoyant estimate of 90%.
The NAA has said it won’t pick any winners but rather is performing a service for its members by inviting submissions. Members are free to do business with anyone they want. Keep an eye on Nieman for continuing coverage of this latest development in the evolution of pay walls.
Nine summers ago, I left a job running a 75-person newsroom to become the sixth employee at an Internet startup. That was the thing to do in the late 90s, when stock options were plentiful and the Internet promised boundless reward. By 2002, that had all changed, and many dot-com entrepreneurs were slinking back to their old employers, asking if they could have their jobs back.
That didn’t happen to me, though. The media startup I joined, TechTarget, actually grew through the technology nuclear winter. It went public last year (although the stock has recently been sucked down by the media stock malaise) and now employs about 600 people.
One thing we did early on that challenged conventional wisdom was to tear down walls between advertising and editorial. At previous employers, it was accepted that sales people and editors not only never talked, they were often openly hostile toward each other. My new organization didn’t have cultural barriers like that, so we experimented with a more collegial process.
Ad sales and editorial people sat together in biweekly meetings to discuss story budgets and the sales climate. Things got pretty testy sometimes, but the debate was open and honest. Instead of calling people names behind their backs, each side shared stories about its successes and challenges. Over time, the relationships grew to be, if not chummy, at least respectful.
Once people respected each other, they began to work collaboratively. Management urged along the process by putting in place a bonus plan that rewarded everyone for a business unit’s financial success. Sales reps and editors openly batted around ideas for products that would have both advertiser and reader appeal. They came up with a lot of innovations. It turned out that collaborating didn’t mean infringing. Boundaries were still respected, but conversation wasn’t prohibited. Imagine that.
It was my job as chief editor to insure that the quality and integrity of the editorial product weren’t compromised. In five years in that role, I never once felt that my principles were violated. If ever there was a challenge, I appealed to the CEO, who always came down on the side of editorial quality.
Incidentally, a handful of people switched groups over these five years, including a few editors who realized their true calling was in sales.
This experience came to mind today reading Chris O’Brien’s Five Steps to Foster Innovation in the Newsroom. Among them: “Find new ways to get people from different areas to work together. This includes editorial and business side (Sorry, but it’s long past time to kill this sacred cow).”
Amen to that. Stick a fork in that well-done bovine. Building moats between the revenue side and the product side was excusable when profits were healthy, but now is the time to discard assumptions. Ad sales people aren’t contagious and talking with them won’t make you compromise your principles. If it does, then you have bigger problems.
Traditionalists are still resistant. Over at the San Francisco Chronicle, whose future is probably less secure than any major metro daily’s, “real journalists” are appalled about the decision to give former mayor Willie Brown a column because of Brown’s history of alleged self-dealing. People who aren’t disgusted by Brown’s column “are people who don’t put journalism first,” says one insider.
Puh-leeze. Giving a popular ex-mayor a column sounds like a pretty interesting way to spur circulation. And if the purists have a problem with that, have it out in public. Let the Chron columnists and bloggers debate the issue in front of everyone instead of grousing in the men’s room. Too many editors continue to use the shield of journalistic integrity to duck new ideas and then complain to each other instead of airing their opinions in public.
Newspapers need strong chief editors who support collaboration. They also need publishers who will rally to the side of quality journalism when a dispute occurs. Reporters and editors need to get over the old biases that never made much sense to begin with. I can’t think of another industry in which the people who sell the product are at such odds with the people who make the product. If you can make a persuasive case for maintaining this rigid separation, please contribute to the comments section. I just don’t see it.
The Futility of Corporate Secrecy
There’s an interesting discussion going on over at the Gannett Blog. On Wednesday, Editor Jim Hopkins picked up on an item in one of the Gannett titles that said corporate finance and accounting operations were being consolidated and moved to Indianapolis. He suggested that recent cutbacks at other Gannett holdings point to layoffs of as many as 2,300 people, or about 5% of Gannett’s workforce.
Blogs are a petrie dish for speculation, so when Hopkins asked reader for input, they responded. Gannett folk from Asheville, Detroit, Louisville and elsewhere are jumping in with their local version of layoff rumors. It sounds like something’s coming, and it isn’t good. Absent from the discussion is Gannett, which certainly should be aware of this popular site. If the rumors are false, why isn’t someone from corporate stepping in and correcting them? Perhaps it’s because the rumors are true. Absent Gannett’s voice, people will tend to believe that silence is confirmation.
Go East, Young Journo
Media markets in India are booming, thanks to the surging economy and the growing middle class, and some discouraged US journalists are picking up and moving east. New dailies and magazines are popping up every week and they’re hiring. Some TV stations are paying ex-print reporters up to $180,000 to go on-air, and that kind of money goes a long way in India. Five recent graduates of the Columbia University Graduate School of Journalism recently joined the Hindustan Times and say the experience has been great and the opportunity is greater. One expat says he turns down two or three assignments a month. “I’d like to see more freelancers move to India. There are too many stories to cover and just not enough time to get to them all.’
Miscellany
San Diegans may have reason for cautious optimism. The owner of a local TV station says he may make a bid for the distressed Union-Tribune. Michael D. McKinnon was a print publisher back in the 50s and 60s and he doesn’t want to see a local institution in the hands of an outsider.
Just because it’s user-generated, doesn’t mean it’s profitable. In May, we told you about Everywhere and JPG, two new magazines from 8020 Media that break the mold by deriving most of their content from readers. Well, it turns out that Everywhere wasn’t everywhere with advertisers, so 8020 has shuttered it after only four issues in order to focus on JPG. Management prefers to use the term “on hold” and said it’s still committed to the model. Interesting side note: only two editors lost their jobs.
While owner Blethen Maine Newspapers continues to seek a buyer, the Portland Press Herald/Maine Sunday Telegram bleeds. An unspecified number of people have been laid off in the fourth round of cuts in a year. The publisher is also adjusting trim size and consolidating some sections to save money on paper. Employee solidarity helped mitigate the pain; workers volunteered to take time off so that jobs wouldn’t be eliminated.
Management at the Los Angeles Daily News apparently thought that one way to boost sagging morale would be to implement a dress code. Employees didn’t agree. The idea has been scotched.
The McPherson (Kan.) Sentinel becomes the latest daily to eliminate its Monday edition. It will publish five days a week. Mondays are notoriously poor for ad sales.
James Cogan says it’s a great time to get into the newspaper business because chaos is a good time for innovation. We wish there were more people with his positive attitude.
Charles Apple has a practical, whimsical and uplifting essay on advice for the recently laid-off. Our favorite: “Your editor didn’t want to lay you off. Seriously. Make him/her a reference. Even if you have to apologize for throwing that potted plant during your HR interview.”
Whereas Boston.com will continue to offer breaking news, sports, and weather from various sources, along with classified advertising, social networking, and information about travel, restaurants and entertainment, BostonGlobe.com will be designed to mirror the experience of reading the paper’s print edition. It will contain all the reports from the day’s paper as well as exclusive reports, in-depth news, analysis, commentary, photos and graphics, plus video and interactive features.
What does this mean? Will Boston.com become a My Yahoo-like text portal with wire feeds and little else? Will all of the material produced by the paper’s staff of reporters and photographers migrate to the paid edition but not be available to non-paying subscribers? How will those staffers feel about reaching a smaller audience? Will paid subscribers get anything more than an online version of the print edition? If so, why wouldn’t they just choose to receive the print edition in the first place and skip the whole online hoohah?
The answers to these questions will no doubt emerge in the nine months or so that the Globe has to consider its transition. Staffers will be watching the experience of their corporate parent as it imposes a pay wall at nytimes.com in January. BTW, we haven’t heard a whole lot about the plans for that experiment in recent months. We assume it’s still on.
We are on record as believing that paywalls will not work to salvage or grow the newspaper industry, but we also believe that the New York Times Co.’s strategy in this case is sound. Basically, management has recognized that trying to rejuvenate the print operation is futile, so it’s better to manage it into the ground as profitably as possible. This means raising subscription rates, erecting pay walls, holding the line on advertising prices for existing customers and generally trying to squeeze every last dollar out of the print operation that it can. It’s called milking the cash cow, and it’s a tried-and-true business strategy.
It is also a strategy of capitulation. The Boston Globe will never again see growth in its print edition, so the best it can do is to wring profits out of the dwindling number of subscribers it has. Publishers are learning that over in London right now, where online readership of the Times fell 7.6% between July and August. Page views dipped 22% and time spent on site fell 16%. Some of this was no doubt due to the summer holiday, but the evidence is becoming abundant that pay walls significantly reduce traffic. The question is whether the incremental revenue offsets the corresponding declines in readership. No one has an answer yet, but it appears that newspaper publishers are increasingly willing to admit that print has no future and trying to get what they can out of a dying franchise. Believe it or not, than is healthy.
In the case of the Globe, The Times Co. will hopefully plow profits from paid subscriptions back into new properties that have the potential for growth, but it may choose to do something else instead. In the meantime, the message from the Globe’s move is that print is dead, resuscitation efforts are futile and those who still value print are going to pay for the privilege of receiving it. Not a bad strategy at all. At least it’s realistic.
Miscellany
Staffers at the Globe and elsewhere might want to look at the experience in Pittsburgh, where the Post-Gazette‘s PG+is reportedly profitable and figuring out a sustainable business. The secret sauce in the publishing realm is sports, which motivates fans in the Steel City to fork over dollars in exchange for the latest information about local stars. However, a more important development may be the Web property’s shift into new areas of revenue such as sponsored events. “Those events have included a Post-Gazette “summer camp” featuring classes on fly fishing and cooking, as well as higher-brow discussions of the midterm elections,” writes Poynter’s Bill Mitchell. Hmmm… diversifying revenue. Where have we heard that before?
Did we really say that print is dead? Well The Wall Street Journal’s print advertising revenue jumped 21% in the just-completed quarter compared to the year-ago period, according to a memo from Dow Jones CEO Les Hinton. Online revenue was up, too. Those are impressive numbers, but one month does not a trend make.
Slate’s Jack Shafer writes entertainingly about the history of the op-ed page, a 40-year-old invention often credited to The New York Times. Not surprisingly, the idea of portraying opposing viewpoints directly across from a newspaper’s editorial page has many fathers, given that it “has undoubtedly been one of the great newspaper innovations of the century,” in the words of John B. Oakes, a Times editorial board member who proposed the concept in the late 1950s. Oakes says the idea was his, but others who were at the Times dispute that, and other papers used similar vehicles as early as the 1920s. The Times‘ move to action was actually spurred by the death of the New York Herald Tribune in 1966, which removed a major conservative voice from the market. Editors realized there was an opportunity in dissent, and began openly soliciting prominent foes to write for their pages. This turned out to be a good business decision, since public figures write for cheap and the Times was able to realize an immediate advertising windfall. The concept was quickly picked up by other newspapers and became a staple. It’s hard to believe that something we accept so easily today was the subject of so much controversy a few decades ago.
They’re on a bit of a roll over at Verve Wireless, which just raised $7 million for development and expansion of its local ad network and publisher platform. Among the investors are The Associated Press. Verve creates apps to deliver news to mobile devices. In addition to contracts with McClatchy, Belo Interactive and The AP. the company was selected earlier this year by the Audit Bureau of Circulations to measure the audience on mobile applications, mobile browsers and tablets. Verve Wireless claims that 750 publishers worldwide are using its apps.
And Finally…
Publishers could do worse than to rely upon the genius of their reporters. In Chicago, Sun-Times reporter Kara Spak won a “Jeopardy” quiz show to the tune of $24,001. In response to a question about an 1863 poem that mentions “the eighteenth of April in Seventy-Five,” Spak correctly identified the source as “The Midnight Ride of Paul Revere.” We don’t believe her employer requires her to contribute her winnings to the company pension fund. Had she worked for Tribune Co., we’re not so sure that would have applied.
By paulgillin | July 12, 2010 - 7:33 am - Posted in Fake News
In case you missed it, the perpetually poverty-stricken Journal Register Co. is doing some pretty gutsy stuff. The company, which was delisted from the NASDAQ New York Stock Exchange two years ago, has a new CEO who’s interested in reinventing publishing. John Paton (right) has a blog and a Twitter Account. He also has the admiration of Jeff Jarvis, who doesn’t confer praise lightly.
What got Jarvis so excited was a July 4 experiment in which the company’s 18 dailies published using nothing but free, web-based tools. They called this the Ben Franklin Project in recognition of both the country’s birthday and Journal Register’s liberation from ancient proprietary production systems.
More importantly, the company changed the way it reported the news for that day. Readers were actively involved at the front of the process in directing the reporting staff and looking virtually over reporter’s shoulders as stories were prepared. “The Ben Franklin Project is the beginning of a new era of an open and transparent newsgathering process,” wrote Paton on his blog. This is a company worth watching again.
MediaShift has an excerpt from journalism educator Alfred Hermida about rethinking the role of the journalist in the participatory age. While Hermida doesn’t break a lot of new ground, he crystallizes some concepts we’ve been talking about here for some time, namely that the evolving role of the journalist is as aggregator and authenticator rather than original reporter. Quoting Tom Rosenstiel, Hermida describes the still-important role of the journalist as “a sense-maker to derive meaning, a navigator to help orient audiences and a community leader to engage audiences.”
He also quotes from an article by BBC World Service director Peter Horrocks that calls for an end to “Fortress journalism.” Horrocks writes, “In the fortress world, the consumption of journalism was through clearly defined products and platforms… but in the blended world of Internet journalism all those products are available within a single platform and mental space… the reader may never be aware from which fortress the information has come.”
In the world Horrocks describes, the audience pulls together its own newspaper, woven from bits and pieces assembled from various online sources. The consequence of this is that media organizations can’t afford to reinvent the wheel anymore. Each needs to focus on what it does best and pool efforts rather than duplicate them. So maybe 90 of those 100 journalists who currently attend a Presidential press conference can spend their time out in the field assessing reaction and gathering analysis rather than listening to the same thing. What a concept.
Miscellany
Advertiser optimism continues to grow. Advertiser Perceptions Inc. (API) reports that 32% of ad executives now expect to increase their ad spending over the next 12-months. That’s the largest percentage increase since API began asking ad execs about their intentions in 2007. A year ago, the figure was -5%. The 1,412 ad executives who were surveyed continue to be pessimistic about magazine and national newspaper advertising, with intentions to increase spending down 10% and 32% respectively. But even those sentiments are greatly improved over the -26%/-46% plans of a year ago. The biggest winners are digital and mobile media, with more than 60% of ad executives planning to increase spending there.
Give Tribune Co. credit for trying to diversify its revenue stream. The bankrupt company is dedicating 10 people to a new consulting business that will sell knowledge of social media and Internet advertising to small and mid-sized businesses. The new venture is called 435 Digital Services, a nod to Tribune Co.’s headquarter address at 435 N. Michigan Ave.
The Denver Postis going after a local political site, saying that Colorado Pols is stealing its copyrighted material. The political site, which generates marginal revenue, allegedly lifted between three and eight paragraphs of news articles from the Post and other publications. Colorado Pols says it doesn’t need the Post. “There’s thousands of other outlets out there,” says founder Jason Bane. Post owner Media News is one of those media companies that wants to raise the perceived value of its content. The company has confirmed that it will begin testing online pay models this summer at its newspapers in Chico, Calif., and York, Pa.
Speaking of pay walls, Time magazine now has one. Secure in its role as the only newsweekly left standing, the venerable but mostly irrelevant magazine is requiring readers who want to read online versions of its print article to subscribe to either the print or the iPad edition. They can then see the same stuff that’s in the magazine on a screen. Online-only content will continue to be free.
Circ Labs, the University of Missouri-backed startup that is developing a tool that learns from a user’s online behavior and delivers recommendations for content, has launched a prototype service prior to general release. The prototype installs a Firefox add-in that enables the browser to recommend an article and to read similar articles suggested by the algorithm. Users can share content with each other and be notified of new content as it becomes available.
To test, go to gocirculate.com and create an account. The confirmation page contains a link to the toolbar software. You can then browse and add pages to the knowledge base. We were able to install the menu bar, but couldn’t log onto the site for some reason, and Circ Labs provides no means to recover a password. We guess that’s why they’re calling this a test.
Buried in a lightweight study of the Internet habits of young women is this nugget: “Nearly half — 48% — of all respondents now claim to get more news through Facebook than from traditional news outlets.” This number comes from Lightspeed Research and Oxygen Media, which surveyed the habits of 1,504 U.S. adults who use social media. The researchers also claim that 39% of women between the ages of 18 and 34 now describe themselves as Facebook addicts, and that a third of young women check Facebook before going to the bathroom in the morning. We supposed one needs one’s priorities.
Variety’s website has adopted DailyMe’s behavioral tracking and recommendation technology called Newstogram. Newstogram generates data on user’s interests to deliver visitors content, advertisements and e-commerce opportunities tailored specifically to them, based on their specific interests and behavior. DailyMe started life as a customized news service for consumers but has morphed into a customization engine that publishers can serve up to their visitors. Readers get filtered news and publishers get better insight into what motivates readers.
And Finally…
Roy Rivenburg is still at it. The jokester who dreamed up Not the LA Times two years ago continues to tweak the nose of the West Coast’s most self-important newspaper. A recent story has Times editors arguing over whether it’s better to start articles with the time or the weather. The inspiration is this page of formulaic opening sentences extracted from the real newspaper. “If I don’t find out the time of day in the first sentence, I stop reading,” says one subscriber.
McKinsey Quarterly has some good news for newspapers. It’s been looking at readership trends in the UK and sees growing interest in news from under 35-readers. In fact, daily time spent consuming news in the critical 25-to-34 age category is up 37% from three years ago (you have to register to read the report or you can download a PDF here). People in that age group prefer to consume the news on the Internet rather than in print, but the good news is that they trust newspapers more than any other source: “66 percent describe newspaper advertising as ‘informative and confidence inspiring,’ compared with only 44 percent for TV and 12 percent for the Web,” the report says.
The report is pessimistic on the chances that existing business models will ever transition successfully online. It notes that only one in seven UK news consumers declared a willingness to pay for content. However, the trust factor should embolden publishers to seek more innovative revenue models, including advertorials and transaction fees.
In our view, this is news organizations’ best shot. As the volume of online information grows by leaps and bounds, the need for trusted sources grows with it. Publishers need to discard their not-invented-here thinking and look for ways to aggregate information in ways that command a premium value. We also really like the transaction fee idea. We’ve been pushing that one for about a year.
Google CEO Brings Upbeat Message
Google CEO Eric Schmidt was on hand Sunday night to speak to members of the American Society of Newspaper Editors and tell them what they already knew: their content is valuable but their business model is broken. However, the executive had encouraging words. “There’s every reason to believe that eventually we’ll solve this,” he said, pointing to emerging but still unspecified subscription models that Google and others will develop. Schmidt later told reporters that he doesn’t know what the solution will look like, but it will probably be a combination of subscriptions and advertising.
Schmidt prodded the editors to focus on mobile devices like the Apple iPad and Google Android, noting that publishers will need to address all popular form factors and not simply look to the iPad or the Amazon Kindle as a cure-all. “When I say Internet first, I mean mobile first,” he said. He also asserted that new sites themselves will need to become smarter, not only habituating themselves to the interests of the readers but also presenting them with selected information they don’t necessarily choose to consume. In comments to Paidcontent.org, he reiterated his confidence: “This problem will be solved when newspapers are making bundles of money and the sooner we can make that happen …”
Miscellany
If you’re considering instituting a pay wall for your newspaper, you might want to head on over to Paidcontent.org, which has assembled a list of 26 newspapers that are now charging readers for online access. The subscription fees are all over the map, ranging from less than $1 per month for online access bundled with print subscriptions at the Vineyard Gazette to $20 at Newsday. The chart doesn’t include The Wall Street Journal, which has been charging a subscription fee for years. Paidcontent.org says the list is about to expand by at least six other titles which have announced plans to erect pay walls but haven’t gone live yet.
The Newspaper Association of America’s mediaXchange conference is going on live in Orlando this week and the organization is providing some live video coverage as well as blogs and a Twitter feed. Five sessions will be webcast live between now and Wednesday, including one by the Director of Global Online Sales and Operations at Facebook and another Jeff Hayzlett, the Chief Marketing Officer at Kodak. The Kodak presentation could be particularly interesting, because that company faced a crisis that many newspapers can identify with: its core paper business was displaced by electrons years ago.
The founder of journalismjobs.com says he’s seeing some revival in the recruitment market for journalists. “Even with newspapers – which are supposed to be dead – I’m seeing a good number of traditional openings being advertised as well as online jobs,” said Dan Rohn. He pointed to The Wall Street Journal’s plans to hire 35 reporters and editors to cover New York as well as new postings at small papers like the Green Bay Press-Gazette, York (Pa.) Daily Record and Lawrence (Mass.) Eagle-Tribune. That’s just a sampling, Rohn said, implying that journalists would be well served by going to his website for more opportunities.
Tribune Co. has reached a deal to emerge from bankruptcy protection later this year, apparently with its existing management intact. The deal was negotiated by a group of the bankrupt publishers senior lenders, who will control 91% of the stock of the reorganized company. It’s been challenged by a group of junior stakeholders who say they were excluded from the negotiations. Tribune filed for bankruptcy 16 months ago and has sold its stake in the Chicago Cubs and Wrigley Field in an effort to pare down more than $8 billion in debt. The creditor committee was vague on how the proposed reorganization will permit Tribune to emerge with sufficient operating capital to remain liquid.
As 2009 draws to an end, about the best thing anyone in the US newspaper industry can say about it is, “Thank God it’s over.”
This was unquestionably the worst year in the history of the business. Circulation plummeted to pre-World War II levels and advertising revenues hit regions not seen since the Johnson administration. The year opened on a dismal note with the closure of major dailies in Denver and Seattle and threatened shutdowns in San Francisco, Boston and Chicago. Many pundits predicted a bloodbath with dozens of dailies folding during the year.
But then the unexpected happened. Union concessions and deep cost cuts brought the Boston and San Francisco papers back from the brink. While smaller dailies did give up the ghost in Tucson and Ann Arbor – and more than 100 weeklies shut down – the doomsday scenario never occurred. Instead, publishers came to grips with the reality of their plight and made earnest attempts to stabilize their operations. In a January column on WallSt.com, former Financial World magazine and Switchboard.com president Douglas McIntyre listed “Twelve Major Media Brands Likely To Close In 2009.” In fact, only one – Gourmet magazine – did.
As the year wore on, signs emerged that sales declines are slowing and circulation revenue from the core of loyal readers is making up some of the advertising gap. A broad consensus has emerged that the ink-on-dead-trees model is mortally wounded, giving publishers permission to turn their attention from saving a dying industry to managing it profitably downward while investing in new ventures that have growth potential.
Creative revenue ideas ranging from pay walls to behavioral targeting sprung up this year. Enrollments in journalism schools hit all-time highs and undergrads said they are approaching their careers with the idea of building personal brand rather than working for a big metro daily. Many industry veterans applauded their spirit.
As the second decade of the new millennium begins, there is a palpable sense of optimism, not only about the economy but also the potential to reinvent journalism. It’s an attitude we have tried to encourage in our own small way, for this blog long ago turned its attention from death to rebirth.
We’ll be posting less frequently during the first six months of 2010 as we tackle a new book on business-to-business social media. Your comments and many words of encouragement have been a constant source of delight in this otherwise dreadful year. We wish you better times in 2010. Keep your chin up.
For now, here are some of the more memorable items from the 178 entries we posted this year, presented in no particular order
Uppers
Doc Searles presented a well-reasoned argument why journalism isn’t disappearing from the earth but simply following the path already blazed by business. Much as personal computers and open source software moved computing innovation from the center to the ends of the network, journalism is undergoing a similar metamorphosis, he wrote. Journalism isn’t going away so much as being democratized.
Life magazine published a delightful collection of classic photos – like the one of Los Angeles gangster Mickey Cohen at right – about the contribution of newspapers to our culture under the banner of When Newspapers Mattered.
A team of publishing veterans that includes Backfence founder Mark Potts and super-blogger Jeff Jarvis announced GrowthSpur. The startup is building a back-end business system that it hopes will enable bloggers and small publishers to quickly monetize their businesses while building a network that multiplies opportunity for every member.
A team of veteran journalists and news technologists joined forces to create a technology to enhance the Web browsing experience while creating a new revenue stream for content producers. Startup CircLabs is developing a tool that learns from the user’s online behavior to deliver recommendations for relevant content. Founders include three top officials from the Donald W. Reynolds Journalism Institute at the University of Missouri.
News-editor-turned-Silicon-Valley-entrepreneur Alan Mutter proposed ViewPass, a subscription service that would aggregate editorial content and collect visitor data that could be used to sell higher-priced ads. Mutter estimated that the system could more than double the CPMs that publishers charge advertisers and would manage copyrights more effectively than the current haphazard system.
Former Rocky Mountain News Washington correspondent ME Sprengelmeyer penned a splendidly written essay about the joys of rediscovering his journalist roots as publisher of a small weekly newspaper.
Writing in The New York Times, David Carr presented a glass-is-half-full perspective about the future of journalism. Carr observed that the new breed of technology-enabled young journalists see the collapse of media institutions as an opportunity to make a name for themselves based upon merit rather than survival. “The next wave is not just knocking on doors, but seeking to knock them down,” he wrote.
A new Bay Area nonprofit was funded to the tune of $5 million by a local investor. The venture is a collaboration between public broadcaster KQED and the Graduate School of Journalism at the University of California at Berkeley.
The Knight Foundation funded nine new-media projects to the tune of $5.1 million. The biggest winner was DocumentCloud, a project conceived by journalists from The New York Times and ProPublica to create a set of open standards for sharing documents. Other winners included one to help citizens use cell phones to report and distribute news, a project to develop a media toolkit for mobile applications and an online space where the people can report and track errors in the media.
Downers
The New York Times published a jaw-dropping correction from its July 17 “appraisal” of Walter Cronkite’s career. Among the eight errors in the story where Wikipediable factoids such as the date of Martin Luther King, Jr.’s assassination. Ombudsman Clark Hoyt was blunt in his explanation: “A television critic with a history of errors wrote hastily and failed to double-check her work…editors who should have been vigilant were not.” The critic, Alessandra Stanley, has a history of being so careless with facts that in 2005, “she was assigned a single copy editor responsible for checking her facts.”
The owner of Editor &Publisher, which has covered the newspaper industry for 125 years, announced that it will shut down the magazine.
The bankrupt Tribune Company sent “14 reporters, columnists and photogs to this year’s Super Bowl, even though neither Super Bowl team came from a city where Tribune actually has a newspaper,” observed Mark Potts.
Many publishers apparently took advantage of recent changes to Audit Bureau of Circulation (ABC) rules to overstate their real readership numbers. The rules changes enabled publishers to count “bundled” subscriptions of paid and online editions as two subscribers, even if only one person was doing the reading.
Ahwatukee (Ariz.) Foothills News staff writer Krystin Wiggs told of being victimized by an elaborate hoax concocted by a young man who claimed to be a gifted and successful chef. The man convinced Wiggs that he had won scholarships to culinary school and landed a sous chef job at a top restaurant at the age of 21. He even enlisted an accomplice to masquerade as head chef at the restaurant for a phone interview.
BusinessWeek was put up for sale for $1. It was no bargain, since the legendary newsweekly was on track to lose $75 million this year. Bloomberg eventually paid up and then took a hatchet to the senior staff.
Sydney Morning Heraldtechnology writer Asher Moses was publicly embarrassed over comments he made about a sex scandal involving a prominent former rugby star. Although the comments were made during his off hours, Moses’ impartiality was widely questioned.
Amazon.com had a chance to win friends among the ranks of newspaper publishers by offering paid subscriptions to their products via the Kindle e-reader. Unfortunately, Amazon’s onerous licensing terms entitled it to keep 70% of the subscription fees.
Todd Smith, who was shot on the job while working as a reporter for the Missouri-based Suburban Journals chain of newspapers, was called to a meeting at headquarters on April 15. Smith thought that maybe the staff had won an award for coverage of the massacre. Instead, he learned that he and several others were being laid off.
Boston HeraldSunday editor Tom Mashberg reprinted an e-mail exchange between him and Keith O’Brien, the author of a harshly critical story about the Herald that appeared in the rival Boston Globe. The e-mail outlined O’Brien’s intention to include negative comments about the Globe in his story as well as the fact that the Herald was profitable while the Globe wasn’t. None of that information appeared in the final piece. “Looks like the editors got hold of this and turned it into a hatchet job,” Mashberg wrote.
Washington Post publisher Katharine Weymouth (right) canceled plans for a series of dinners at her home after an overzealous Post marketing executive issued flyers positioning the events as a way for sponsors to buy access to the paper’s journalists and members of Congress. Weymouth said the promotions “should never have happened.”
French President Nicolas Sarkozy said his government would double its advertising in print and online newspapers in an effort to prop up an industry that many people believe needs a radical overhaul more than money. That’s on top of previously announced subsidies that give every 18-year-old French citizen a free newspaper subscription.
The Chicago Tribune’s marketing department launched an experimental project to seek feedback on stories that hadn’t yet been published or even fully reported. A group of 55 reporters signed an angry e-mail in protest. Editor Gerould Kern issued a statement calling the experiment “a brief market research project.”
In a Vanity Fair profile of New York Times Co. CEO Arthur Ochs Sulzberger, Jr., Mark Bowden described one management offsite exercise in which Times Co. executives played a game that challenged them to decide between safe choices and riskier but potentially more rewarding long shots. An employee who had seen many groups play the game observed, “This is the most conservative group I have ever seen.”
A press release from the Washington Times, as reprinted on Talking Points Memo, also buried the lead about its own bad news: “The Washington Times today announced that it will begin producing a more focused Monday through Friday edition designed to feature its most distinctive news and opinion content.” In other words, it was killing the Sunday edition.
Kubas Consultants polled 500 newspaper executives in November and found them to be optimistic that the worst is almost over. Blogger Alan Mutter e-mailed the researcher who conducted the survey and learned that even he didn’t believe the resutls. “Optimism is better than slitting your wrists,” reasoned Ed Strapagiel.
A new newspaper in Detroit, the Daily Press,published just five issues before hitting “a bump in the road” and suspending further operations until the new year.
ZDNet blogger Richard Koman alleged that Yahoo had passed the names and e-mail addresses of hundreds of thousands of bloggers to Iranian authorities during the country’s controversial election. It turns out Koman‘s unnamed source for the story was an Iranian blogger with a vested interest in spreading misinformation. Paul Carr ranted about the incident and ZDNet retracted the entry and apologized.
Signs of the Times
The online-only Huffington Post set up a small investigative unit to examine the nation’s economy. The online news site is collaborating with The Atlantic Philanthropies and others on the Huffington Post Investigative Fund with an initial budget of $1.75 million and a staff of 10 investigative journalists to coordinate work done by freelancers.
HuffPo also began writing two different headlines for some stories and showing them randomly to viewers for five minutes. After that time, the headline that generates the most clicks becomes the default.
TVstations in Milwaukee, Lancaster, Pa. and Little Rock opened their daily news budget meetings to outsiders through video, live blogs and Twitter. News directors said the experiment has been a mixed bag, but has resulted in some solid news tips.
Writing under the pseudonym of @TheMediaIsDying, microblogger Paul Armstrong racked up more than 21,000 followers for his stream of tweets about the troubles of mainstream media.
One print paper did just fine this year.The Slammerboasts a newsstand profit margin that “is four times that of most local dailies, and its circulation has grown to 29,000 – up nearly 50 percent from 20,000 just last year,” wrote The Christian Science Monitor.The Slammer is full of mug shots, crime reports and allegations of misdeeds and carries the slogan “All Crime, All the Time.”
The Wall Street Journal launched an interactive map showing “adverse events at the top 100 newspapers” since 2006.
More newspapers began pooling resources to share stories, with consortia forming in Florida, Tennessee, New York and New Jersey. In New York, five newspapers banded together to exchange content in the largest such arrangement since the share-nicely trend began in 2008. Bloomberg and the Washington Post did a deal to create the Washington Post News Service With Bloomberg News. The alliance includes a revenue-sharing agreement to create a co-branded online business section on the Post’s website in the first quarter of 2010.
A Pew Research study in January found that the Internet passed newspapers as the preferred source of news among Americans. The survey of 1,489 adults found that 40% get most of their national and international news online, compared with 35% who rely primarily on newspapers. Television continued to be the number one choice, at 70%. Among people under 30, however, the Internet is now as popular as television for news.
In March, Mark Potts toted up the market capitalizations of publicly held newspaper companies in the US and came to a striking conclusion: Their combined value was just $1.3 billion, or a little more than the $1.1 billion that The New York Times Co. paid for the Boston Globe in 1993. Valuations had recovered somewhat by year’s end.
One-third of Americans under the age of 40 told Rasmussen Reports that Comedy Central’s Daily Show with Jon Stewart (right) and the Colbert Report are replacing traditional news outlets.
A survey of 95 editors by the Associated Press Managing Editors found that newsroom workers between the ages of 18 and 35 were the most likely to be laid off, despite the industry’s need to increase its appeal to precisely that age group.
Nevertheless, journalism schools saw an astonishing surge in enrollments. “According to an annual survey by the University of Georgia, the number of undergraduates enrolled nationwide in journalism and mass communication schools jumped more than 41% between 1997 and 2007,” reported the Capital Times of Madison, Wisc. Also, Forbes.com noted that journalism schools at Columbia University, the University of Maryland and Stanford University saw significant spikes in applications in 2008 — 30 percent, 25 percent and 20 percent, respectively.
Martin Langeveld calculated that in 1940 publishers distributed 118 newspaper copies for every 100 households. Today, the number is 33 copies per 100 households, down from 53 less than a decade ago.
Ninety-three percent of all newspaper sales “can now be attributed to kidnappers seeking to prove the day’s date in filmed ransom demands,” reportedThe Onionin a hilarious spoof of the industry’s downturn.
Notable Quotes
“Our newspaper’s biggest revenue source today is foreclosure notices.”
–Clifford Buchan, editor of the Minnesota-based weekly Forest LakeTimes.
“That’s like asking someone in another business if they want to get vaccinated with a live virus.”
“Students will work to make their blogging more vivid using the fundamentals of the craft, such as imagery, foreshadowing, symbolism, and viral paparazzi photos of celebrity nip slips.”
“There was nothing [in these newspapers] of remote interest [to] just about any sentient being. But that’s not what the paper’s editors were aiming for. The point is that there was nothing there that could possibly offend anyone.”
“I don’t know how to write an inverted pyramid story or even really what that is. I do know how to write for different platforms, be scrappy and break news. I’ve had zero important alum connections and never got an internship at a big daily. And, in hindsight, that’s probably the greatest stroke of luck I could have had.”
“The 500-year-old accident of economics occasioned by the printing press – high upfront cost and filtering happening at the source of publication – is over. But will The New York Times still exist on paper? Of course, because people will hit the print button.”
“There’s an enormous amount of vanity among journalists who forget that people buy newspapers not just for journalism but crosswords, cartoons, TV listings and indeed advertising.”
“‘Jon and Kate’ for first mention, ‘Jesus, ENOUGH’ afterwards.”
@FakeAPStylebook, a Twitter-based parody that has quickly amassed more than 82,000 followers.
“Completion of a tower that will give Phoenix Sky Harbor International Airport controllers technology and visibility to monitor air traffic for the foreseeable future, settling a contract that will keep the controllers on the job and redefining air space corridors, are keys to the Valley airport’s future, Robert Sturgell, FAA deputy administrator, said Thursday.”
“It’s safer to make an outrageous statement about Saddam Hussein than to make a mild criticism of a local car dealer. It’s something newspapers don’t like to admit. It has always mattered who pays the bills.”
“This is the thought of the day and this is where you put the thought of the day as if anyone has a thought for the day. And can’t work out what the hell is going on. But who knows what is happeningishness. – Jesus Mark 7:21-23 (Bible for Today)”
-Dummy copy mistakenly published as the Thought for the Day in Australia’s Advertiser
Images
The AP posted this photo of discarded newspaper racks languishing in a San Francisco junkyard. Updated: This was the consequence of a new city ordinance banning stand-alone newspaper racks. However, the image acquired particular power in light of the industry’s plight.
An ad created by the North Carolina Press Association to urge citizens to fight legislation that would allow local governments to post public notices on the Web instead of in local newspapers appeared to portray newspaper readers as old and technophobic.
Christopher Ave, the political editor at the St. Louis Post-Dispatch, isn’t a copy editor but he’s sympathetic to the pain of wordsmiths around the country who are falling victim to layoffs. He created this clever music video to dramatize their plight.
This monologue by a resident of Santa Cruz, Calif. testifying before the city council about, we think, vegetables, raises questions about whether as a population we can, you know, express stuff.
A 26-year old Berkeley musician named Jonathan Mann joined forces with the staff of the East Bay Express to come up with a solution to newspapers’ business problems. Wait till the end to hear it.
The Seattle Post-Intelligencer and the Rocky Mountain News took very different approaches to commemorating their final issues.
In one of the final feature stories in Editor & Publisher,which is closing after 125 years, Jennifer Sabba has an interesting dissection of the circulation experiment at the Dallas Morning News. That paper was one of the first to dig into the economics of circulation pricing in order to better understand elasticity. Newspapers have traditionally derived only about 20% of their revenue from circulation, but the wholesale collapse of categories like classified advertising has forced them to get creative. The Morning News is one of several newspapers have experimented with turning the screws on loyal customers to see how much more they would pay for a print product.
It turns out that pricing elasticity isn’t absolute. Research conducted by the Morning News found that readers were willing to pay more if they thought they were getting more in the bargain. Specifically, the most important topics they identified were national news, local news, business, state, sports and investigative journalism, in that order. “If the paper raised the subscription price but readers felt they were getting more content, the fall-off in volume would be around 10%. At the same price, if readers felt like they were getting less content, volume would fall by 40%.”
The Morning News responded by jacking up its home delivery prices an audacious 66% in one year. However, it also expanded its news hole and launched a free edition that’s distributed to about 200,000 homes four days a week. As a result, in the most recent six-month period, the paper reported one of the largest circulation declines of any major newspaper: 22.1%. But that may not be a bad thing for the bottom line. The paper is sticking with its pricing strategy in the belief that the overall business impact will be positive. That’s the philosophy executives at Hearst Corporation adopted with the San Francisco Chronicle last year. The Chron has hiked its subscription rate 63% in the last 18 months and seen circulation plummet. However, it has reportedly also stabilized a business that was losing $1 million a week in 2008.
Sabba’s story provides a new context for understanding the dizzying drop in newspaper circulation over the last few years. While the declines are troubling, they are at least in part voluntary as publishers shed unprofitable circulation and focus on loyal readers. This isn’t a long-term growth strategy, but print isn’t going to be a long-term growth proposition anyway. The thinking behind the strategy actually makes sense in light of the inevitable shift that news organizations must make from print to digital distribution. If there is a cash cow, then milk as much profitability out of it as possible while transitioning the rest of the business to a new economic model.
Debating Paid Models
Rupert Murdoch is apparently getting sick of being portrayed as an old fuddy-duddy who wants people to pay for information that should be free. So he’s taken his case to the Wall Street Journal. In a December 8 opinion, the News Corp. CEO says journalism is the foundation of a free society and blogger “theft” of the hard work of reporters and editors is undermining the value of quality information. Murdoch rejects suggestions that news organizations should become nonprofits as well as the possibility of a government bailout. “The future of journalism belongs to the bold, and the companies that prosper will be those that find new and better ways to meet the needs of their viewers, listeners, and readers,” he writes. But he also states that the economic future of the industry can’t be sustained by online advertising. Instead, readers must be convinced to pay a “modest amount” for good information. “The critics say people won’t pay. I believe they will, but only if we give them something of good and useful value. Our customers are smart enough to know that you don’t get something for nothing,” Murdoch says. Unfortunately, he provides no research or factual evidence for his belief.
Karthika Muthukumaraswamy has a thoughtful post on Online Journalism Blog about how to make paywalls work. She summarizes conventional wisdom that paywalls only succeed when the publication has content that has a high perceived value, usually for a focused audience. The problem with most news organizations is that they’ve been trained to make their information appeal to the broadest possible readership. So how do you change the mindset? Muthukumaraswamy suggests that the best course may be a dual track: continue to deliver broadly appealing information for free while analyzing traffic to determine where the high-value readers are. Then ask them to pay for access to that information. In that vein, “Steven Brill’s Journalism Online plans to charge only the most frequent users who seek very specific content while allowing cursory surfers to avail of most topical news for free.” Don’t demonize Google – she quotes research estimating that search engines can deliver about 50 cents a day of revenue per unique visitor – but don’t make it an either/or proposition, either. The key is to get focused on the numbers and seek your area of highest value.
Speaking of pay walls, The New York Times is mulling the online subscription option but isn’t tipping its hand about its plans yet. Senior Vice President for Digital Operations Martin Nisenholtz told the UBS Global Media and Communications Conference in New York City last week that there’s too much at stake to make this an all-or-nothing proposition. The company values its relationship with Google but is looking at the paid options employed by the Financial Times and the Wall Street Journal, as well as the possibility of just staying free. There is some evidence that the financial free-fall is turning around at the Times, and staff cuts that have trimmed 25% of the workforce could reestablish some stability.
Traffic figures are in for the first month of Newsday‘s bold experiment to charge a $5 monthly fee for access to most of the content on its website. Declines of 21% in page views and a little under 20% in unique visitors were within expectations, according to management. Year-over-year page views were down 35% and unique visitors off 43%, but that compares to unusually busy election year numbers from a year ago. Management isn’t saying how much of the advertising revenue decline was made up by subscription fees. Newsday‘s numbers also can’t be taken as a benchmark for the industry, since a provision of the plan enables the many Long Island subscribers to Cablevision’s Optimum Internet service to get access for free.
Miscellany
The Journalism Shop surveyed 75 former Los Angeles Times journalists and found that more than half believe the paper will not survive in the long term. Only one in six thought the Times would weather the storm that is buffeting the industry. The poll is hardly scientific, but it has some interesting findings about how the former staffers see their future jobs (more than a third expect to exit the profession entirely) as well as whether and how they believe journalism can survive. The generally dour findings show that the journalists believe the media is descending into a mud pit of top 10 lists and celebrity gossip.
Google continues to try to make nice with newspaper publishers while at the same time introducing new products that threaten their business. Editors Weblog points us to Living Stories, a Google Labs feature that aggregates news from around the Web and organizes it by content. The prototype uses content derived from a partnership with The News York Times and the Washington Post. The feature appears to be a modest evolution of Google News at this point, although there is certainly potential for more innovation. One neat feature is a timeline atop some of the news packages that tracks important milestones in the evolution of a story. According to a post on the Google blog, the content is being maintained by staffers at the two newspapers. Google continues to insist that it has no plans to get into the original content business. The blog entry also says the company will provide open source tools that news organizations can use to adapt the service to their own needs.
It appears the Associated Press has begun to turn the tide of customer defections that began last year when the service raised its rates. Some 180 newspapers canceled their AP contracts after the revised rate structure was announced, but now 50 have come back, although not necessarily under the full licensing plan. The Minneapolis Star Tribune is the latest to rescind its cancellation.
We’ve covered the Tribune’s twists and turns in previous entries, and there’s nothing particularly new to say about the situation. The Tribune has been operating under a cloud since it cut 40% of its staff and moved to free distribution a year ago. It has not been profitable in two years. The paper can still be saved if a buyer emerges within the next seven weeks, but owner Freedom Communications said no inquiries have been received that “we would remotely consider.” The Tribune traces its heritage back to 1891, when it was founded as the Evening Weekly Free Press. Its website has extensive reaction, a timeline and comments from the community.
Miscellany
The San Francisco Chronicle is going glossy. The beleaguered daily, which has been on thin ice since Hearst Corp. threatened to close it early this year, is making the unusual move in an effort to move its image upscale and appeal to advertisers as well as its core of older, affluent readers. Beginning Monday, the front page and many of the section fronts will be printed on higher-quality paper, although there’s disagreement about whether the paper will actually be glossy or simply a somewhat smoother version of newsprint. Huffington Post notes that the Chronicle has staged a comeback this year by hiking circulation prices and focusing on its core readership. It has even turned a profit some weeks, which is an accomplishment given that the Chron was reportedly losing $1 million per week at the beginning of the year.
The Chronicle’s strategy mirrors that of an increasing number of metro dailies, which are compensating for circulation declines by squeezing more circulation revenue out of its loyal customers. Circulation at the Chronicle is off more than 50% over the last eight years. The retrenchment isn’t a growth strategy, but it least it offers the prospect of financial stability.
That’s a short-term benefit, but the long-term problems may be worsening. The Wall Street Journal reports that newspaper publishers are scraping the bottom of the barrel in their cost-cutting efforts. With newsroom staffing down more than 40% in the US over the last eight years, there’s very little fat left to cut, Nat Worden notes. That means that revenue needs to start growing again. But it isn’t, and that means that publishers may be on the brink of an abyss. “It’s possible that newspapers are cutting costs to a level that accelerates the departure of their audiences towards other outlets,” says Fitch Ratings analyst Mike Simonton. In other words, a death spiral.
Alan Mutter throws water on the paywall concept, saying that publishers may be talking a good game but won’t have the nerve to pull the trigger and accept the loss of website traffic and its associated advertising revenue. He cites recent comments by executives from the Washington Post and the San Francisco Chronicle that indicate that neither believes paywalls are a viable strategy. Many publishers are intrigued by the prospect of charging for premium services, but they may have dug their own graves by hacking their workforces to the extent that there is little of value to offer. He also cites a poll of newspaper executives that indicated only half think paywalls have a chance.
While that may be a glass-half-empty perspective, Mutter points out that lack of unanimity on the issue is self-defeating. In other words, the strategy can’t work unless everyone is on board because the outliers will sabotage the whole equation.
That isn’t stopping MediaNews from pressing ahead, however. The publisher will test pay walls at two of its smaller newspapers beginning in the first quarter of 2010. The Chico (Calif. ) Enterprise-Record and the York (Pa.) Daily Record had been selected for the experiment, presumably because the downside risk is small. MediaNews CEO Dean Singleton said he has no intention of blocking free content from all his properties, but, “We have to condition readers that everything is not free.”
The Toronto Star plans to outsource about 100 editing jobs overseas, including copyediting and pagination. The move comes even as parent company Torstar reported a modest profit for the third quarter, despite a 12.6% plunge in advertising revenue. “We must find the best way to operate our business at the lowest possible cost, including contracting out non-core functions where there is a sound business case to do so,” wrote publisher John Cruickshank in a memo to employees. Offshore outsourcing has been a growing trend for the last couple of years, but job losses have mainly been confined to back-office functions. There’s no word on whether the Star may actually farm out reporting jobs, which are far more difficult to perform from half a world away.
It just gets worse and worse in the magazine business. The Associated Press is reporting that Time Inc. will lay off 540 people next week, while The New York Times says the publisher has informed the state of New York that 280 layoffs are coming in New York alone between now and the end of January. Time Inc. cut 600 jobs, or about 6% of its workforce, a year ago.
At least there are a few new jobs for those idle to journalists to apply for. Editors Weblog reports that the UK’s Bureau of Investigative Journalism is hiring up to 20 journalists as it seeks to spend a £2 million pound grant it recently received from the Potter Foundation. And The Wall Street Journalplans to hire a dozen journalists to staff up a new regional edition. Of course, the Journal also just closed its Boston bureau and laid off nine reporters
And finally…
“‘Jon and Kate’ for first mention, ‘Jesus, ENOUGH’ afterwards.”
“Stories about people who claim to have psychic abilities must always be written as though they aren’t liars, for some reason.”
“To describe more than one octopus, use sixteentopus, twentyfourtopus, thirtytwotopus, and so on.”
“The plural of ‘Pokemon’ is ‘vermin.'”
Those are just a few of the gems from one of the funniest new voices in the Twittersphere. Follow @FakeAPStylebook for more. Journalists will recognize the style of the tweets as being in the mold of the AP style book. Only the crew of 16 publishing professionals who collaborate on the tweet stream bring a deliciously twisted perspective to their craft. Mark Glaser rips the lid off the anonymous micro blogger, noting that the account has gathered 40,000 followers in just 15 days as well as a literary agent who wants to score a book deal.
By paulgillin | October 30, 2009 - 3:11 pm - Posted in Facebook, Paywalls
Just minutes ago, an Ontario judge allowed Canwest Global Communications to save the hemorrhaging National Postby moving it the paper into a group with its other dailies. Why Canwest wants to do this is not clear. Today was set to be the end of the line for Post, a conservative broadsheet tabloid that has shouldered much of the blame for parent Canwest Global’s financial troubles. The Post has apparently been losing prodigious amounts of money – 139 million Canadian dollars over the last seven years – but has also had a curious booster effect on Canwest’s other properties by buying services from them and spreading around corporate overhead costs. The Post’s value as an accounting tool may have reached its limit, however. A committee of Canwest creditors said it would stop covering the paper’s losses after today. The last-ditch effort to shuffle the paper in with its peers won’t save it in the long run if losses continue.
Former CIO Takes Over at Boston Globe
The publisher of the Boston Globe is retiring after 27 years with the New York Times Co. and three tumultuous years at the helm of its New England properties. He’ll be succeeded by a former chief information officer, which is an interesting choice given the need for the Globe to transition to the digital age.
P. Steven Ainsley, 56, called his three years as publisher “difficult but enormously gratifying.” He’s certainly right about the first part. Ainsley navigated the organization through a near-death experience this year, eventually wringing more than $20 million in concessions out of stubborn unions. This week the Globe reported a record 18.4% year-over-year drop in circulation, making it one of the worst performers among the 300-plus US newspapers tracked by the Audit Bureau of Circulation.
Successor Christopher Mayer, 47, is a longtime Globe executive who is currently Senior Vice President of Circulation and Operations and formerly chief information officer for the New England Media Group. He’s the first Globe insider installed as publisher by the NY Times Co. since its 1993 purchase of the paper. His most notable recent achievement was a price increase that “drove revenue up sharply,” according to a Globe report.His technology background should be an asset in helping the organization transition to a digital world. It’s also notable that he has no sales or editorial experience. Mayer appears to be an operations guy, which is what floundering newspapers need right now.
Miscellany
A survey of 2,404 US adults by Ipsos Mendelsohn and PHD found that 55.5% say they would be “very unlikely to pay for online content” while only 16.5% said they might pay. Be careful of reading too much into these figures, though. If the question was worded to ask respondents if they want to pay for something they now get for free, it’s not surprising that the majority said no. Publishers who are erecting pay walls are presumably offering some value that readers don’t get for free today, right? Right?
A bankruptcy judge early this week formally approved the sale of the Chicago Sun-Times and more than 50 suburban publications to a local businessman who bought the whole package for $26.5 million. There were no serious bidders other than financier James Tyree, who insisted that unions agree to 15% pay cuts before he’d proceed with his offer. They did agree after mounting a feeble bluff attempt. Tyree said he plans to “grow the company by seeking new revenue opportunities, to adapt and lead change in the rapidly transforming news industry, and to become profitable.” The Sun-Times Media Group’s financial position was severely weakened by a damaging series of scandals involving several former executives who are now in jail.
Two university researchers analyzed front-page coverage in four Argentine newspapers and found an inverse correlation between government funding and journalistic scrutiny of the government. The research indicates that, at least in Argentina, the government can buy favor with the media. Researchers compared the quantity of front-page coverage of government scandals over a 10-year period and matched that to publicly available data about how much the government spent on advertising month to month. The correlation was “huge,” said the Harvard and Northwestern University researchers. In fact, if “government ad revenue in a month increased by one standard deviation — around $70,000 U.S. — corruption coverage would decrease by roughly half of a front page.” Talk about measurable results! Advertisers should have it so good.
Writing on Nieman Journalism Lab, Joshua Benton wonders whether this should be an argument against a government bailout of public funding for distressed media companies. Perhaps, but given Argentina’s history of political repression and media censorship, it seems a stretch to compare the scenario to the US.
The Newport Daily News doesn’t want you to visit its website and it’s taking steps to make sure you don’t. The 12,000-circulation Rhode Island weekdaily is demanding that online visitors pay nearly two-and-a-half times as much for a yearly subscription as print subscribers do. That’s right: It’ll cost you $145 per year to get six weekly issues of the Daily News delivered to your door but $345 to get it online. “Our goal was to get people back into the printed product,” publisher Albert K. Sherman, Jr. tells Nieman’s Edward J. Delaney. Adds the newspaper’s executive editor, “It will be a print-newspaper-first strategy.” The Daily News´ strategy is helped somewhat by continuing problems at the Providence Journal, which has cut back on Newport coverage amid layoffs.
The mass-production city dailies, aimed at common denominators in the market for newspapers, seem to have passed their heyday. …The reason the mass-production dailies are declining is not, however, that there are no significant similarities in a city’s total market for news, but that the job once done by mass-production newspapers has been largely duplicated by television and radio news and feature programs, and by the mass-production weekly news magazines.
Sounds straightforward enough. Except Rothacker points out that it was written 40 years ago. (Jane Jacobs, The Economy of Cities, (Random House, 1969), 240.)
Life magazine published a delightful collection of classic photos – like the one of Los Angeles gangster Mickey Cohen at right – about the contribution of newspapers to our culture under the banner of 
The owner of Editor & Publisher, which has covered the newspaper industry for 125 years, announced that it will 
