Recent news we haven’t had a chance to report.

Journal Register Co., its stock sitting at under a penny, took a machete to scores of local newspapers, putting them up for sale and threatening to close them if buyers aren’t found.  The lost include eight holdings in upstate New York: the Millbrook Round Table, Pleasant Valley Voice Ledger, Rhinebeck Gazette-Advertiser, Pawling News Chronicle, Harlem Valley Times, Hyde Park Townsman, Pine Bluffs Register Herald and Putnam County Courier. Non-news titles Weekend, Dutchess Magazine and the Hudson Valley Guide are also set to close.

In Connecticut, the condemned include the Bloomfield Journal, the Shoreline Times, Pictorial Gazette, Branford Review, Clinton Recorder and East Haven Advertiser. Michiganders will no longer have the Elk Rapids Town Meeting, the Petoskey Citizen-Journal and the Northern Star. MediaPost also reports that the Grand Traverse Insider, the Leader and Kalkaskian , the Antrim County News and the Petoskey-Charlevoix Star are closing.

The city of brotherly love lost the Northeast Philadelphia Breeze, the News Gleaner, the Olney Times, the Germantown Courier, and the Mount Airy Times Express. Elsewhere in Pennsylvania, Hershey lost its Chronicle.

Journal Register hasn’t yet declared bankruptcy, but it has already missed debt payments and is considered the next was likely candidate for Chapter 11.

Two Idaho newspapers are scaling back their production schedules to save money.  The eastern Idaho Post Register will eliminate its Monday edition and publish six days a week.  The publisher said the move will help the company avoid layoffs.  Also, earlier this month the Rexburg (Id.) Standard Journal said it would scale back to three days a week from five.

Layoff announcements at the Los Angeles Times have reportedly been delayed until tomorrow.  Rumors are that about 70 newsroom staffers will be let go.

The Los Angeles Daily News has reportedly laid off eight copy desk staffers . The paper is also reportedly considering moving the entire copy desk to MediaNews offices in the San Gabriel Valley.

The Kansas City Star writes about the growing crisis in the broadcast industry, where the advertising slump is expected to hit hard this year.  Television outlets, in particular, depend heavily upon automotive advertising. The crisis in the automobile industry may reduce revenues as much as 30% this year, according to some estimates. The problems don’t strike at the public’s right to know as badly as newspaper layoffs do because TV and radio stations generally employ a much smaller news staffs.

If you’re considering a career shift, read about the experience of Michael Precker: Columbia J-School grad, foreign correspondent, Dallas Morning News feature writer, Pulitzer Prize nominee and now strip club manager. Three years ago, Precker found he was losing interest in his journalism job and a chance meeting with the owner of a local strip club gave him an opportunity to jump.  Now he runs all operations at the Lodge, an upscale topless establishment. Check out the clever video ads on the site.

Yesterday was black Thursday in newspaper land as four media companies reported dismal earnings, seven small newspapers shut down and publishers braced the public for more layoffs.

Yet there were some glimmers of hope in the bad news, including signs that deterioration in the advertising business may be slowing and online sales are picking up. We’ll start with the earnings news.

Rupert Murdoch’s $5.5 billion acquisition of Dow Jones & Co. in 2007 drew criticism on Wall Street because of the steep 65% premium the newspaper magnate paid for a flagship title in a declining market. It looks like the critics were right. Citing “the worst global economic crisis since News Corp was formed 50 years ago,” Murdoch’s company posted its largest quarterly loss ever and wrote down $8.4 billion in assets yesterday.

While News Corp. didn’t specify the size of the Dow Jones write-down, analysts speculated that it was responsible for much of the $3.6 billion goodwill charge. The company’s net loss was $6.41 billion, compared with a profit of $832 million a year earlier. Of course, write-downs make such comparisons meaningless. Revenues fell 8% to $7.88 billion. Adjusting for the write-downs, News Corp. still badly missed analyst estimates. Its quarterly operating profit was 12 cents per share, well below the consensus of 19 cents.

Murdoch has often been mentioned as a possible suitor for The New York Times, but in an analysts call yesterday, he dismissed speculation that he’s looking to make acquisitions. Ever the optimist, though, Murdoch found a silver lining in the dense clouds overhanging the media industry. “There has never been a greater appetite for news in the community,” he said. ” I have great faith in the newspapers, and if we continue the way we’re going, we may even get lucky and not have so much competition.”

Coincidentally, The shoe finally dropped at News Corp’s Wall Street Journal, which avoided layoffs in 2008. Twenty-five newsroom positions were eliminated, 11 by attrition and 14 by layoff. The Journal‘s New York-based fashion and retail group will be closed and the Los Angeles and Boston bureaus will each lose a job. The editorial staff numbers about 760 people.

Ugly Numbers, But With a Few Bright Spots

If you’re looking for silver linings, you can find a couple of them in otherwise dismal earnings news from McClatchy Co., Belo Corp. and Scripps Networks Interactive. The companies all reported predictably horrible earnings on Thursday, but there are signs that the revenue free-fall is abating. Belo, which has been slashing and burning payroll recently, actually beat Wall Street estimates by a couple of cents on revenues that fell 9%, in line with estimates. Scripps also beat the street on operating earnings of 55 cents a share, compared to forecasts of 51 cents.

Belo said first-quarter ad sales were about the same as the fourth quarter of 2008, indicating that some stability just possibly has taken hold. However, keep in mind that fourth-quarter sales were down 26% from a year earlier. McClatchy, which reported a $21.7 million quarterly loss, said overall sales continued to decline, but online revenues grew a reasonably healthy 10%. Both Belo and McClatchy made some progress toward paying down their debt, though they still owe over $1 billion and $2 billion, respectively. Scripps actually grew revenue in the quarter, although it slightly missed analyst estimates.

McClatchy is getting ready to swallow more bitter medicine. With classified revenues down 36%  and retail advertising off 10% in 2008, the company will cut at least another $100 million in expenses on top of staff reductions that have already trimmed its workforce by a third. Plans include continuing a freeze on executive salaries, eliminating executive bonuses, freezing pension plans and suspensing matching contributions to 401(k) plans. The company didn’t mention layoffs, but you can figure that one out. The Lexington (Ky.) Newspaper Guild doesn’t think McClatchy is going far enough in “declining undeserved bonuses or freezing bloated pay.” It appears to favor a public flogging, too.

Miscellany

The Daily Reporter of the Wichita, Kan. suburb of Derby is shutting down after 47 years. The last issue will be published Feb. 17. The closure puts six people out of work.

The Columbia county (N.Y.) Independent published its last issue today. The twice-weekly paper is owned by beleaguered Journal-Register Co.

The Provo Daily Herald of Utah will stop publishing five weekly newspapers it owns in American Fork, Pleasant Grove, Lehi, Lone Peak and Orem but won’t lay off any employees. Instead, coverage will be folded into a larger Daily Herald, a move intended to “strengthen the company’s core daily product.” The newspaper replaced the lost weeklies with a collection of localized websites that “will present news from all local schools, community groups, churches and local governments, and will feature a social marketplace.”

The Rexburg, Idaho Standard Journal will trim publication from five to three days a week. Starting March 3, the paper will be printed only on Tuesday, Wednesday and Saturday instead of Tuesday through Saturday. No layoffs are planned, since the publisher expects to beef up its online coverage. The move is interesting in light of the fact that most publishers that are cutting production schedules start with the low-margin Tuesday and Saturday editions. The 5,300-circulation Standard Journal is choosing to keep them.

The publisher of the Anchorage Daily News is preparing his staff for more layoffs. In a memo to employees, J. Patrick Doyle said the “unprecedented and deepening financial crisis” will necessitate staffing cuts, but “we will work quickly to notify employees who may be affected. As we have just begun work on these plans now, you may not hear more from us for at least a few weeks.” Which should make for great morale in the newsroom.

For want of $1 million, Hearst Corp. has given up the right of first refusal for the Seattle Times for the next 74 years. In a development that is more confusing than illuminating, Hearst missed a regular $1 million payment that it has made for nearly a decade to Times owner Blethen Corp. in order to ensure that Hearst will get the first chance to buy the paper if Blethen ever puts it up for sale. What’s confusing is that Hearst is already bailing out of the Seattle market by putting the Post-Intelligencer up for sale, so why would it want to buy the Times? The two papers work under a joint operating agreement that shares some expenses and profits (losses) between them. There’s now a debate under way over whether the P-I will continue as an online-only entity and whether the terms of the JOA even permit that. Hearst is reportedly trying to wriggle out of the JOA, which neither company likes very much, anyway. Ironically, the existence of a legal agreement that was intended to keep two newspapers in Seattle may now prevent the P-I from continuing to publish. If you really want to untangle this, read the story.

The Sarasota (Fla.) Herald-Tribune Media Group laid off 48 people and eliminated home delivery to Port Charlotte and Punta Gorda. The newspaper has cut its full-time staff to 350 people, which is 40% lower than its peak at the height of the Florida real estate boom. We were in central Florida last week and saw entire office parks with tumbleweeds rolling through them.

Ellen Mrja has a Nov. 17, 2008 memo from Minneapolis Star Tribune publisher Chris Harte outlining 10 steps the newspaper must take to make it through the industry downturn. The goals are laudable but some are contradictory, in particular  “1. We must maintain products that our readers and advertisers will find useful enough to buy” and “2. We must reduce every cost we can.” We’re not sure why this memo hadn’t turned up before before.

The National Labor Relations Board dismissed an appeal of a local board ruling that found that Bay Area News Group didn’t discriminate against employees because of their union organizing activities.  The union had claimed that three of 29 employees laid off last June were unfairly targeted because they were trying to unionize the workforce.

A.H. Belo will lay off 500 employees, or about 14% of its workforce. Combined with 590 layoffs in two rounds last summer and fall, Belo has cut its total workforce by an astounding 25% in less than a year. Belo is also seeking to recover more cash by suspending a savings plan matching fund program, raising parking and transportation charges to employees and reducing cell phone reimbursements. The company owns several major daily newspapers, including the Dallas Morning News, Providence Journal, Riverside (Calif.) Press-Enterprise and the Denton (Texas) Record-Chronicle. Belo stock slipped about 4% on the news amid a general pounding of newspaper stocks on Friday. Gannett said fourth quarter net fell 36% and Media General said it would suspend its dividend. This quarterly malaise has become so common that it barely even merits mention any more, particularly with most of these stocks trading in the two-dollar range.

Jeff Pijanowski has started a running tally of newspaper layoffs. The 2009 total is already 1,399. Erica Smith has been doing the same thing since early 2008, and her total for the new year is 2,002. Let’s hope they’re staying in touch.

Voice of Reason in Nonprofit Debate

We’re tempted to shout “Hear, hear!” to Jonathan Weber’s superbly argued comeback to the doom-sayers who argue that going the nonprofit route is the only viable way to save American journalism.

In 1,400 words of unusual clarity, the publisher of the proudly for-profit NewWest.net makes these cogent points:

• The people making the strongest case for taking news organizations nonprofit mostly work for nonprofits themselves (a reference to David Swensen and Michael Schmidt’s op-ed in The New York Times last week);
• Nonprofit news organizations still have to meet their numbers, and that makes them subject to the same pressures to feed their audiences celebrity pabulum as profit-making organizations;
• Nonprofits will actually hurt profit-making news organizations by competing for advertising revenues while enjoying the benefit of tax-exempt status;
• The argument that readers are losing out because US newspapers have cut foreign bureaus is hokum. Americans have access to more foreign reporting than ever thanks to the Internet;
• There are successful profit-making ventures emerging online right now;
• The profit motive encourages innovation;
• To discard profitable business models as unworkable right now is to give up any hope that new models can emerge.

We particularly commend Weber for pointing out that much of the argument for giving up the profitability ghost is predicated on the belief that news organizations must continue to work they way they always have. As we’ve noted here many times, innovation flourishes when people discard assumptions. Paving the cowpaths of old newsgathering models will simply keep us marching in the same direction.

At the same time, we do want to acknowledge laid-off Providence Journal reporter David Scharfenberg’s well-argued case for a national journalism fund in a Boston Globe op-ed. The federal government already invests in public radio and public television, he notes; why shouldn’t online journalism be afforded the same benefit? Scharfenberg suggests a $100 million fund would “seed low-cost, Internet-based news operations in cities large and small – combining vigorous, professional reporting with blogging, video posts, citizen journalism, and aggregation of stories from other sources.” It’s not clear how he arrived at the $100 million figure or how these new Web projects would be different from the hybrids that are emerging as the media melts together into a single pool, but the amount seems modest enough in light of the billions being given to bail out the financial industry, whose misdeeds may never be publicly known because there are no journalist watchdogs around to report them.

Miscellany

The contentious dispute between the Hawaii Newspaper and Printing Trades Council and the Honolulu Advertiser has been resolved, with the Advertiser apparently getting the upper hand. Employees will have their wages cut 10 percent cut under a deal announced Friday. Union members will also give up two holidays a year. Just eight months ago, the union rejected management’s offer of a flat pay package with modest bonus increases. After looking at the company’s books and witnessing more layoffs, the union agreed to a much worse deal than the one it rejected earlier, with the sole added provision that it can see management’s books twice a year and the empty promise that the Advertiser will make “every practical effort to avoid involuntary layoffs.” There could be some grumbling in the ranks come dues-paying time in Honolulu.

E.W. Scripps is accusing partner MediaNews Group of behaving badly in borrowing $13 million from its Denver Newspaper Agency partnership to meet payroll at the Denver Post. Scripps is on its way out of Denver as it works to sell or close the Rocky Mountain News. Despite its lame duck status, Scripps will apparently miss the $13 million, which it can’t recover through loans due to the terms of its joint operating agreement with MediaNews.

Writing on Wired.com, Bruce Sterling analyzes French President Nicolas Sarkozy’s newspaper bailout and sees nefarious motives. Sarkozy announced last week that the French government will move to bail out its ailing print media (see There’ll Always Be a France)  by boosting support for newspaper deliveries, doubling government advertising and giving every 18-year-old French citizen a free one-year newspaper subscription. Is Sarkozy concerned about the disappearance of a free press? Hardly, Sterling theorizes. Rather, the collapse of the industry on the continent will raise the French President’s visibility as he becomes one of the few politicians who generates any media coverage at all. “While political rivals are scrabbling with bloody fingertips for a few grams of serious public attention, Sarkozy still has a regional empire of conventional media,” Sterling writes. Cynical indeed.

Sam Zell has had plenty of negative attention for under-estimating the enormity of the problems facing Tribune Co., but he’s still got admirers in the real estate industry. Another big-city publisher, Mortimer Zuckerman of the New York Daily News, says three Manhattan skyscrapers his company purchases lost $165 million in value in just seven months. It turns out Zuckerman’s Boston Properties acquired the buildings shortly after Zell exited the office property market in February 2007 for $39 billion. It was basically the peak of the market. In comparison, Zell’s personal losses on Tribune Co. amount to only about $300 million, according to most estimates. Our calculator tells us that’s about four months’ interest on the proceeds from his real estate sales.

Chicago Tribune associate editor Joycelyn Winnecke has earned plenty of derision for a Jan. 19 memo stating that attitude will now be a factor in employee performance reviews.  The idea that skeptical reporters should be expected to present a positive mental attitude strikes some journalists as just wrong. BusinessWeek‘s Catherine Arnst sums up some of the reactions in a blog entry. “The beatings will continue until the morale improves,” notes one predictable comment, and several other visitors weigh in with perspectives on both sides of the issue.

Layoff Log

• The Wenatchee (Wash.) World announced the first layoffs in the daily’s 104-year history.  The 12 furloughs will reduce the newspaper’s workforce from 145 to 133. “We hung on as long as we could,” said Publisher Rufus Woods.
• The Pioneer Press of Minnesota has laid off eight employees since a 14-month contractual provision against layoffs expired Dec. 31.

And Finally…

Yes, that really is Olympic gold medal swimmer Michael Phelps smoking a bong pipe in a photo taken last November during a house party at the University of South Carolina. Phelps has admitted that he “engaged in behavior which was regrettable and demonstrated bad judgment.” Observers said he knew exactly what to do with the pipe. To be fair, Phelps was taking a long hiatus from training at the time. Fox Sports has more, along with a link to a photo gallery of “Sports’ top tokers.”

The Baltimore Examiner will close on Feb. 15, ending its three-year-run as the city’s second newspaper. Launched by a company controlled by Denver billionaire Philip Anschutz, the free daily had been troubled since the beginning. Parent company Clarity Media Group had cut newsroom staff by half since launch and reduced home delivery from six to two days per week last summer. A spokesman blamed the closure on a lack of national advertising. The AP report said the newsroom was shocked by the news, a surprising reaction considering that the Examiner had been on the market for months. About 90 people will lose their jobs.

The Examiner is part of a small chain that includes siblings in Washington and San Francisco. Those papers are unaffected by the closure. It seems odd that Clarity would have chosen to launch two of its three newspapers just 40 miles from each other. However, MediaPost says the company hoped to achieve advertising synergies between the two.

Campus Paradox: College Students Prefer Print

College newspapers continue to defy overall demographic trends by enjoying greater success with their printed products than their websites. In fact, writes Brian Murley, the challenge for campus publishers is to get more students to visit them online. Murley, who is assistant professor of new and emerging media at Eastern Illinois University, director for innovation at the Center for Innovation in College Media, and the college media correspondent for MediaShift, writes at length about the growing financial problems at college newspapers. National advertising has been tough to come by, and local advertisers still prefer to run in print. College publications have been hurt by the global recession, as has everybody else. Some of them are now also seeing their university funding dry up. In response, many are toying with supplements on topics like housing and entertainment, and they continue to push local sports as a key differentiator.

Murley points to an Alloy Media + Marketing study last spring that found that 76% of college students had read their college newspaper in the past month. This behavior contradicts the conventional wisdom that young people don’t read newspapers, but perhaps reinforces the notion that hyper-local coverage can appeal even to the digital generation.

There’s Life After Newspapers, But Less Money

Veteran reporter Robert Hodierne posted an online survey asking the question: “Is there life after newspapers?” He got 595 responses and while the results aren’t scientific, they offer an interesting glimpse into experiences of people who have left or been forced to leave the daily grind.

You can read Hodierne’s 4,100-word essay on American Journalism Review here, but here are some bullet points we took away. More than half the layoff victims report finding full-time work within three months. More than 90% found jobs within a year. Only 6% found jobs at newspapers. Most of those who switched industries – media relations is a popular alternative, but Hodierne’s vignettes cover a broad range of new careers – say they’re happy in their new jobs. Even so, 85% said they miss working at a paper.

The news isn’t all good, though. Many are making less money. “The midpoint salary range for their old jobs was $50,000 to $59,000. Those who listed salaries for their new jobs were a full salary band lower – $40,000 to $49,000,” Hodierne writes. Worse is that the salary cuts appear to hit older workers harder. “The median age of those who made less than $20,000 at their old newspaper job was 24. The median age of those now making less than $20,000 is 48.”

Hodierne interviewed many respondents and found a wide range of experiences. Theresa Conroy opened a yoga studio and loves it. But Joseph Demma, who participated in three Pulitzer Prize-winning projects, found himself unemployed at 65 and considering a job as a Wal-Mart greeter. The piece is heavier on anecdotes than statistics, but it offers an interesting glimpse into the lives of many career journalists who have had to adapt to the realities of the new market.

Miscellany

Add Media News Group to the growing ranks of publishers asking employees to take a week of unpaid leave in order to avoid job cuts. This follows Gannett’s announcement of a similar plan earlier this month. Media News’ 3,300 employees at more than 50 newspapers in Northern California have to take a breather by the end of March. The union is negotiating the terms, which is what unions do. Lake County News has more details about cutbacks at Media News, including a report that the company had to loan its flagship Denver Post $13 million to make its December payroll, has cut its staff at the East Bay Newspaper Partnership by 60 percent and laid off the person at the Lake County Record-Bee who is largely responsible for laying out and proofing the paper. If the last item is true, then Craig Silverman at RegretTheError might want to keep a careful eye on future issues of the Record-Bee.

The Congressional Quarterly, which isn’t quarterly, is for sale. No, this isn’t another distressed publishing property being shopped for pennies on the dollar. CQ is actually a nicely profitable business with a subscription website, a weekly magazine and a daily paid newsletter, among other properties. It’s just that owner Times Publishing Co., which is wholly owned by the Poynter Institute, has other things to worry about, like how the south Florida advertising collapse is affecting the St. Petersburg Times. CQ has come under pressure from a slew of recent startups covering Capitol Hill and it needs some careful oversight in order to stay competitive. Plus, Times Publishing could use the money.

NPR’s Marketplace reports that there are plenty of working journalists on Capitol Hill; they just aren’t working for newspapers. Specialized newsletters continue to thrive amid the general industry carnage because they serve up valuable information to small audiences that are willing to pay for it. “Our readers get excited about things like section 112R of the Clean Air Act,” says Rick Weber, who oversees the Inside EPA newsletters. “We cover the minutiae of how policy is shaped and implemented.”

Specialty publications may be attractive options for laid-off journalists who don’t mind focusing on a single topic or government agency. They offer plenty of entrepreneurial opportunity and a lean management structure. The downside is their vulnerability to political shifts and economic uncertainty due to their reliance on a small number of paying subscribers.

“The Death of Daily Newspapers Is a Step Forward” headlines an opinion piece by former newspaper reporter Jon Severson, who maps out a long list of publications that arrive continuously on his BlackBerry. Severson monitors about 30 news feeds on his handheld device and supplements that information with an assortment of weekly magazines, radio programs and personal contacts. “I don’t know a twenty – or thirtysomething young professional worth his or her salt who doesn’t own a Blackberry or similar smart phone,” he writes. “We’ve moved on to more efficient ways to get the information that suits our busy lifestyles.” And it’s eco-friendly.

And Finally…

This has nothing to do with newspapers, but it’s wicked fun. T-Mobile cashed in on the flash mob craze two weeks ago by staging a simultaneous dance by more than 200 people at Liverpool Street Station in London. The event had to be done in one take to maximize the element of surprise, and bystanders did exactly what the cell phone carrier hoped they would do: they recorded the dance on their cell phones.

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

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

Blurred Vision

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

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

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

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

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

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

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

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

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

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

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

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

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

Envisioning a Future Without the Times

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

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

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

For Better or Worse, China Invests in Newspapers

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

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

Layoff Log

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

Miscellany

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

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

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

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

We thought we’d never see this one: The New York Times has started selling advertising on its front page.  Yesterday’s issue carried a 2 1/2-inch strip ad at the bottom of page one from another distressed media company: CBS. It was the first time in the newspaper’s 157-year history that an ad has appeared on the front page.

The Times rolled out the program quietly, making no advance announcements and covering the news matter-of-factly in its business section. MediaPost notes that the Times’ concession illustrates just how bad the business is. “Although many big newspapers have offered advertisers front-page spots, The New York Times long prided itself on presenting readers with nothing but news–in keeping with the paper’s reputation for substance and gravitas,” it said.

The Times‘s own account notes that most newspapers offer some front-page ad space, but the Times and the Washington Post have been long-time holdouts. Today’s edition doesn’t have a front-page ad.

Last month we told you about new Gallup research that showed the Internet is fast closing the gap with local newspapers as the number one news source in the US. Now Pew Research says the lines have crossed. The survey of 1,489 adults found that 40% said they get most of their national and international news online, compared with 35% who rely primarily on newspapers. Television continues to the number one choice, at 70%. Among people under 30, however, the Internet is now just as popular as television for news. In fact, among that age group, the Internet’s role as a primary news source jumped from 34% to 59% in just 15 months, a leap that suggests that these results might be an aberration. We’ll know soon. Pew conducts the survey roughly once a year. There’s also information about the top news stories of 2008, a list dominated by economic issues.

A Public Utility

Should newspapers get a government bailout? One Connecticut lawmaker says yes. Frank Nicastro of Connecticut’s 79^th Assembly district is worried that Journal Register Co. will carry out its threats to shutter the Bristol Press and he’s asking the state for loans, tax breaks or anything else that will save the daily. The Press reportedly has just 11 days to live.

Nicastro’s campaign has fueled an ongoing debate over whether newspapers are entitled to the same government support as airlines, banks and the automobile industry have received. Some people say newspapers are an essential public utility that a democracy can’t afford to lose. Others think the market will find a way to provide this service one way or the other. Almost everyone admits there’s a conflict-of-interest question when a government funds its own watchdog, kind of like letting the banking industry regulate itself. We have an opinion, but we’d like to hear yours, so we made this into a poll question. Cast your vote in the sidebar widget to the right.

A Different Kind of Death Watch

“My beat at The Globe and Mail is the dead,” writes Sandra Martin, in a quote that already goes on our short list for best of 2009. That’s only one of many good lines in her superbly written piece on the craft of obituary writing, one of the least understood and most often satirized disciplines in journalism.

Martin is the Toronto Globe and Mail‘s chief obituary writer and she really, really likes the job. So do a few hundred other people who make up the Society of Professional Obituary Writers (SPOW) (“The first time I Googled the society’s acronym, I came up with ‘sex position of the week,'” Martin comments in another of the 3,700-word essay’s good lines). This fun and fact-filled feature touches on some of the profession’s stickier issues, such as how to balance facts about the deceased’s sexual escapades with the need to avoid angering grieving relatives or how to tell a person you’re interviewing them for their own obituary. She also describes the nightmare all obituarists face: what to do when someone dies suddenly and you’ve got nothing prepared on them.

Martin’s words are relevant to the topic of newspaper survival. She cites Northwestern University research that found that obits were “important” to 45 per cent of readers and “very important” to an additional 12 per cent. That wouldn’t surprise the people at Eons, a social network for baby boomers. They discovered that death notices quickly became the most popular features on their site, which is why they launched Tributes.

Obituary writing isn’t morbid, Martin notes. Rather, it is “about life; death is merely the occasion to set the subject into context.” Read this delightful story and you’ll probably agree that this beat has plenty of, er, life to it.

Miscellany

The Kansas City Kansan will end an 87-year print run on Wednesday when it ceases twice-weekly publication and goes online-only. The Kansan was once the only daily newspaper serving Kansas City, Kan. The revamped website will invite lots of reader contributions through photo-sharing and blogs. Half the staff will be cut. That’s four people. (via Todd Epp).

“Newspaper stocks fell an average of 83.3% in 2008 – twice the fall of the S&P 500 – wiping out $64.5 billion in market value, according to Alan Mutter’s Newsosaur blog.” Want more stats like that? Jeff Jarvis has assembled a few and is asking for more contributions.

John Schrag of the Forest Grove (Ore.) News-Times resists the urge to wring his hands and instead gives specifics on how staff cutbacks are affecting city-hall reporting. This column manages to be both opinionated and dispassionate, documenting with examples how citizens are less informed about their government because reporters aren’t there to sit through the boring meetings. Bloggers, Schrag writes, “may show up in Salem, but I doubt they’ll be posting reports about the Banks Budget Committee or the county’s Joint Watershed Commission.” True that.

Editor & Publisher‘s Mark Fitzgerald lists his choices for the top 10 industry quotes of 2008. Many relate to the stocks of major companies becoming worthless. And Christopher Wink posts some gems in his Twelve months of top journalism blog posts in 2008.

Terrible financial results barely merit a mention any more, other than the fact that each month or quarter seems to be worse than the one just preceding it. Media Post reports ad revenues fell 22.4% at McClatchy in November and publishing revenues were down 17.9% at Media General. The sole bright spot: online revenue was up over 7% at both companies.

Swift Communications has cut staff at its Western Slope newspapers in Colorado and closed some weekly papers. Unspecified cutbacks were made at the Glenwood Springs Post Independent, Aspen Times and Grand Junction Free Press. The company shuttered the weekly Carbondale Valley Journal, Leadville Chronicle and the Spanish-language La Tribuna based in Glenwood Springs.

And Finally…

Here are the results of our recent query about the drama in Detroit. Thanks to everyone who voted. We’re trying out a new polling app in the sidebar to the right and will keep plugging away till we find one that we like. Suggestions are welcome:

Note: An earlier version of this story was erroneously headlined “Survey Says Web is #1 News Source.” A reader pointed out that television still holds the top spot.

Don’t forget to take our poll: Will the Detroit Experiment Succeed?

Want it? The Seattle Times Building

Few newspapers in the US are in worse shape that the Seattle Times, reports its rival, the Post-Intelligencer. How bad is it? “Dire,” in the words of Times Senior Vice President Alayne Fardella, who announced yesterday that the company will now freeze the pensions of non-union workers in addition to requiring them to take unpaid vacation. “It has been and continues to be a long and difficult fight for our survival.”

The Seattle Times Co. holds $91 million in debt, which is secured by a parking lot. The company  borrowed $233 million in 1998 to buy a string of newspapers in Maine which are now a white elephant that no one wants to take off its hands. The company has put up two of its four Seattle properties for sale. McClatchy Co.’s stake in the business, which it acquired for $102.2 million in 2006, is now worth less than $8 million. But they do have that parking lot.

McClatchy itself has to be considered a candidate for the endangered species list. Its stock closed at 75 cents a share yesterday, down from a high of nearly $71 five years ago. Its $5 million in cash is down from $30 million at the end of last year.  Having had no luck selling its newspapers, the company is now trying to sell property to stay alive. However, that may also be a losing strategy. At least a half dozen newspapers are trying to unload property right now, but buyers have every reason to wait them out, says an AP report. As publishers become more desperate to generate cash to meet debt obligations, they’ll further cut asking prices. This is also a terrible time to be selling real estate, which makes sellers even more desperate.

Success Without the Web

New York Times media critic David Carr is an staunch print guy and he found an ally in the TriCityNews (yes, that’s really all there is to its website), an alternative weekly out of Asbury Park, NJ that has thrived for a decade and is still growing 10% annually by aggressively ignoring the Web. Carr quotes publisher Dan Jacobson expressing astonishment that any print publisher would choose to undermine its  business by giving its product away for free. “Why should we give our readers any incentive whatsoever to not look at our content along with our advertisements, a large number of which are beautiful and cheap full-page ads?” he asks. TriCityNews has never raised its advertising rates in 10 years and its costs are cheap enough that even small businesses can buy full-page ads.

Carr clearly loves this whole idea, but Recovering Journalist Mark Potts sees few lessons for major metro dailies in Asbury Park. The paper only has three employees, for cryin’ out loud, he notes. “Many small community papers, with and without Web sites, are doing just fine, and will continue to do so,” Potts writes. “Web or not, their readers have almost no place else to go.” He’s right, you  know. Pat Thornton chimes in with the observation that publisher Jacobson isn’t quoted once talking about journalism. He speculates that the paper is basically a community advertiser and that local news coverage has little to do with its success.

Sun, Post Head Toward Indistinguishability

Timothy A. Franklin is stepping down as editor of The Baltimore Sun, the Associated Press reports. He’ll be replaced on Jan. 1 by J. Montgomery Cook, who’s currently director of content development for the Baltimore Sun Media Group. Franklin is head off to Indiana University to chair a new sports journalism program at his alma mater. He said his decision was unrelated to the turmoil at the Sun, which has shed more than 150 jobs this year. The AP report provides a helpful graphic showing where Baltimore is. Meanwhile, in a move designed to make both newspapers less relevant to their local audiences, the Sun and the Washington Post have a new deal to share articles and photos. This will make two major metro dailies less than 40 miles apart from each other even harder to tell apart.

Miscellany

Now that Detroit’s News and Free Press have broken the ice by backing away from daily frequency, everyone is jumping into the pond. The University of Missouri-backed Columbia Missourian will eliminate Saturday and Monday editions in a bid to save $350,000 annually. And the Klamath Falls (Ore.) Herald and News will mess with time itself by cutting it Monday edition and introducing a new “Monday on Sunday” section. We know that readers just can’t wait to get started thinking about the first day of the work week when they’re enjoying their Sunday morning coffee.

Nine weekly newspapers in Connecticut will close in January if a buyer isn’t found in the next week. It looks like a done deal, though, since the staffs have already reportedly been laid off.

The New York Times has admitted that a letter to the editor from the mayor of Paris criticizing Caroline Kennedy’s bid for Senator Clinton’s seat is a fake. The letter characterized Kennedy’s ambitions as being “in very poor taste,” which was not the kind of language Paris Mayor Bertrand Delanoe would ordinarily use, according to one French editor. She called the mayor’s office, which also professed surprise.  The Times said it’s reviewing its authentication policies. Editor & Publisher has more.

We briefly thought we were back in 1996 when we read that GateHouse Media is suing the Boston Globe for linking to its stories. So-called “deep linking” suits went out of fashion a decade ago. Of course, with its shares trading at four cents, GateHouse may be out for whatever it can get. We think “frivolous” is too generous a term for this threat.  We agree with Jeff Jarvis and will leave it at that.

Death Watch editor Paul Gillin was interviewed for an hour on Bob Andelman’s Mr. Media show on Blog Talk Radio yesterday. Click the link to listen or see the Blog Talk Radio widget in the sidebar to the left.

And Finally…

More than 30 million people have Elfed Themselves, making this three-year-old OfficeMax promotion one of the most successful viral marketing campaigns in history. Better hurry before it’s too late!

It looks like 2009 will be a make-or-break year for many media companies, thanks to an advertising climate the some forecasters are predicting will the worst in generations.

Media economist Jack Myers is predicting an “advertising depression,” says Dow Jones. “Myers, a longtime industry consultant who runs JackMyers.com, is now forecasting an unprecedented three straight years of declines in advertising and marketing spending in the U.S. starting this year,” the wire service says. “To put that in perspective, the industry hasn’t suffered even a two-year spending decline in advertising since the 1930s.” The result will be a “massive shakeout” in industries that depend on advertising for their livelihood. Myers expects advertising spending in the U.S. to call 2.4% this year, 6.7% next year and 2.3% in 2010. His forecast roughly agrees with estimates by Publicis Groupe. The downturn will make it more difficult for media companions to effect the transformations that are necessary to survive in the customer-driven marketing environment of the future.

Meanwhile, Barclays Capital expects domestic ad spending to drop 10% next year, which is dramatically worse than performance during both the 1991 and 2001 recessions. The forecast is a substantial revision of Barclays’ prediction just two months ago that next year’s decline would be a less-drastic 5.5%. The investment bank sees trouble in the local advertising industry, which is often seen as the best hope for newspaper salvation. Local spending, which makes up some 39% of the $252.1 billion U.S. ad market, will fall 12.2% in 2009, while national spending will drop 8.4%. Barclays forecast that local ad spending would decline an additional 1.4% even when the broader market recovers in 2010. The one positive note: Internet advertising should increase 6.1% in 2009 and 12% in 2010, but that segment will still account for just 10% of ad spending next year.

Given those forecasts, it’s not surprising that asset values have tanked. “Some 30 US newspapers are up for sale…but few buyers have emerged in spite of rock bottom prices,” notes the Financial Times. Valuations have fallen by at least half compared to their highs and signs that the advertising environment is worsening aren’t helping, the paper says. To illustrate the degree of loss in asset values, the Boston Globe was valued at $650 million by a consortium of buyers just two years ago. Today, the value of the Globe and the Worcester (Mass.) Telegram & Gazette combined is just $120 million. In fact, The New York Times Co.’s most valuable New England asset may be its equity stake in the Boston Red Sox. It was worth about $135 million before the financial crisis hit. And that’s without Mark Teixeira.

Some Good News, Too

While admitting that 2009 will be a mostly crummy year for the economy, Poynter Media Business Analyst Rick Edmonds sees reasons to believe better days are ahead. For one thing, oil is comparatively cheap right now and the price of paper is coming down. While you shouldn’t get comfortable with short-term trends in these commodities, at least they are two fewer factors weighing on the industry. The buyouts and layoffs of 2008 will show also benefits in 2009 as newspapers remove those costs from their books. And there are promising signs in newspapers’ online activities that may broadly benefit the industry. Edmonds is careful to hedge his bets, but he wants to exit the year on a positive note.

Cuts Take Toll on Quality

Print editors are accustomed to getting letters from readers taking them to task for erroneously saying the California Gold Rush started in 1845 instead of 1848 and  concluding, “Shoddy fact-checking like this makes me skeptical of anything you report in your journal.” Editors usually laugh off these missives, but with readers enjoying a bounty of choice these days and freely publishing their own critiques, the gaffes caused by overworked news staffs potentially become more damaging. Detroit NASCAR Examiner Josh Lobdell points out three major errors in a Detroit News story and questions how a newspaper in the Motor City can do such a shoddy job of covering motoring. The Sunday Business Post of Ireland restates almost verbatim what we suggested 2 1/2 years ago: that the cycle of cutbacks will lead to inferior products that people won’t want to read, which will harm circulation and lead to more layoffs. You don’t cost-cut your way to leadership.

If errors are your thing, read Craig Silverman’s year-end column in the Toronto Star about the worst publishing gaffes of 2008. Our favorite is the AP’s reference to Joseph Lieberman as a “Democratic vice-presidential prick.” There are plenty more on Silverman’s awesome blog, Regret the Error. Be sure to read his annual celebration of the worst errors and corrections in the media, an award he calls the Crunks. One of the best has to be this front page of northern New England’s Valley News, which actually managed to misspell its own name on its front page one day.

Report: Newspaper Sites Embrace Web Tools

The Bivings Group examined the websites of the 100 top U.S. newspapers to see what they’re doing with the Internet. While a few activities have changed little over the last year (RSS, reporter blogs and video), there have been striking increases in the use of some features:

• Fifth-eight percent of newspaper websites post user-generated photos, 18% accept video and 15% publish user-generated articles.  That’s way up from the 24% that accepted such material in 2007.
• Seventy five percent now accept article comments in some form, compared to 33% in 2007.
• Facebook-like social networking tools are beginning to gain traction, with 10% of newspapers now using them, or double last year’s figure.
• Three-quarters list some kind of most-popular ranking, such as most e-mailed or most commented. Just 33% had that feature in 2006.
• You can now submit articles to social bookmarking sites like Digg and del.icio.us at 92% of newspaper sites, compared to only 7% in 2006.
• Only 11% of websites now require registration to view full articles, compared to 29% last year.
• Other stats: 57% have PDF editions, 20% have chat, and 40% offer SMS alerts.

Don’t strain your eyes: Click the image below for a larger version. More charts and data is in the summary report.

Miscellany

Journal-Register has reportedly closed a chain of Connecticut weeklies. The North Haven Courier reports, “On Dec. 18, members of [the Shore Line and Elm City Newspapers, a weekly newspaper chain in the shoreline and Greater New Haven area] were notified they had been laid off…The affected papers include the North Haven Post, the East Haven Advertiser, the Branford Review, the Shore Line Times of Guilford and Madison, the Clinton Recorder, and the Pictorial Gazette and Main Street News in Westbrook, Old Saybrook, Essex, Deep River, Chester, Lyme, and Old Lyme…Joyce Mletschnig, who until Thursday was the Pictorial Gazette’s associate editor, said that their newspapers would be shut down.”

The Seattle Times is asking about 500 non-unionized employees to take a week’s unpaid vacation in order to avoid more layoffs. Employees can take the seven days off at any time over the next two months. Management at the Times, which has cut 22% of its staff this year, may believe that further layoffs will undermine quality to too great a degree, so it’s getting creative with strategy.

Russ Smith has some good quotes in a piece on Splice Today about what he believes is the inevitable demise of print newspapers. Smith, 53, is an unabashed newspaper fan but he’s noticed that even his contemporaries are dropping their print subscriptions or not noticing when the paper no longer arrives on the doorstep. He also notices that his kids and their friends are just as well-informed about current events as he, a counter to the conventional wisdom that young people don’t read. Smith boldly predicts that The New York Times will be sold by the end of 2009, with Rupert Murdoch on the short list of likely buyers. On the other hand, Murdoch may be content simply to let his nemesis fade away.

Raleigh News & Observer Staff Writer Mark Schultz writes with passion about why he got into newspapers and why they’re still relevant. His best line comes in an account about interviewing a woman in her trailer home in Mexico: “We enter people’s lives for an hour and ask for instant intimacy.”

The Knoxville News Sentinel has apparently managed to avoid the carnage that has devastated many of its brethren. In an upbeat column plainly titled “News Sentinel is NOT going out of business,” Editor Jack McElroy pays homage to owner E.W. Scripps Co. for shrewdly diversifying its revenue stream and not loading up on debt. He also says the News Sentinel wisely diversified into TV and specialty publishing to insulate itself from the newspaper advertising downturn. Critics naturally accuse the paper of selling out to political interests.

The New York Times will launch “Instant Op-Ed” next month in a bid to compete with instant cable television analysis. The Web feature will post immediate expert viewpoints on breaking news, according to Editorial Page Editor Andrew Rosenthal.

And Finally…

The Baltimore Sun’s John McIntyre asked readers to contribute the best line heard in the workplace. They come through with some winners. Our favorite: “Yeah, he thinks he’s God’s gift to sliced bread.”

It looks like 2009 will be a make-or-break year for many media companies, thanks to an advertising climate the some forecasters are predicting will the worst in generations.
Media economist Jack Myers is predicting an “advertising depression,” says Dow Jones. “Myers, a longtime industry consultant who runs JackMyers.com, is now forecasting an unprecedented three straight years of declines in advertising and marketing spending in the U.S. starting this year,” the wire service says. “To put that in perspective, the industry hasn’t suffered even a two-year spending decline in advertising since the 1930s.” The result will be a “massive shakeout” in industries that depend on advertising for their livelihood. Myers expects advertising spending in the U.S. to call 2.4% this year, 6.7% next year and 2.3% in 2010. His forecast roughly agrees with estimates by Publicis Groupe. The downturn will make it more difficult for media companions to effect the transformations that are necessary to survive in the customer-driven marketing environment of the future.
Meanwhile, Barclays Capital expects domestic ad spending to drop 10% next year, which is dramatically worse than performance during both the 1991 and 2001 recessions. The forecast is a substantial revision of Barclays’ prediction just two months ago that next year’s decline would be a less-drastic 5.5%. The investment bank sees trouble in the local advertising industry, which is often seen as the best hope for newspaper salvation. Local spending, which makes up some 39% of the $252.1 billion U.S. ad market, will fall 12.2% in 2009, while national spending will drop 8.4%. Barclays forecast that local ad spending would decline an additional 1.4% even when the broader market recovers in 2010. The one positive note: Internet advertising should increase 6.1% in 2009 and 12% in 2010, but that segment will still account for just 10% of ad spending next year.
Given those forecasts, it’s not surprising that asset values have tanked. “Some 30 US newspapers are up for sale…but few buyers have emerged in spite of rock bottom prices,” notes the Financial Times. Valuations have fallen by at least half compared to their highs and signs that the advertising environment is worsening aren’t helping, the paper says. To illustrate the degree of loss in asset values, the Boston Globe was valued at $650 million by a consortium of buyers just two years ago. Today, the value of the Globe and the Worcester (Mass.) Telegram & Gazette combined is just $120 million. In fact, The New York Times Co.’s most valuable New England asset may be its equity stake in the Boston Red Sox. It was worth about $135 million before the financial crisis hit. And that’s without Mark Teixeira.

Some Good News, Too

While admitting that 2009 will be a mostly crummy year for the economy, Poynter Media Business Analyst Rick Edmonds sees reasons to believe better days are ahead. For one thing, oil is comparatively cheap right now and the price of paper is coming down. While you shouldn’t get comfortable with short-term trends in these commodities, at least they are two fewer factors weighing on the industry. The buyouts and layoffs of 2008 will show also benefits in 2009 as newspapers remove those costs from their books. And there are promising signs in newspapers’ online activities that may broadly benefit the industry. Edmonds is careful to hedge his bets, but he wants to exit the year on a positive note.

Cuts Take Toll on Quality

Print editors are accustomed to getting letters from readers taking them to task for erroneously saying the California Gold Rush started in 1845 instead of 1848 and  concluding, “Shoddy fact-checking like this makes me skeptical of anything you report in your journal.” Editors usually laugh off these missives, but with readers enjoying a bounty of choice these days and freely publishing their own critiques, the gaffes caused by overworked news staffs potentially become more damaging. Detroit NASCAR Examiner Josh Lobdell points out three major errors in a Detroit News story and questions how a newspaper in the Motor City can do such a shoddy job of covering motoring. The Sunday Business Post of Ireland restates almost verbatim what we suggested 2 1/2 years ago: that the cycle of cutbacks will lead to inferior products that people won’t want to read, which will harm circulation and lead to more layoffs. You don’t cost-cut your way to leadership.
If errors are your thing, read Craig Silverman’s year-end column in the Toronto Star about the worst publishing gaffes of 2008. Our favorite is the AP’s reference to Joseph Lieberman as a “Democratic vice-presidential prick.” There are plenty more on Silverman’s awesome blog, Regret the Error. Be sure to read his annual celebration of the worst errors and corrections in the media, an award he calls the Crunks. One of the best has to be this front page of northern New England’s Valley News, which actually managed to misspell its own name on its front page one day.

Report: Newspaper Sites Embrace Web Tools

The Bivings Group examined the websites of the 100 top U.S. newspapers to see what they’re doing with the Internet. While a few activities have changed little over the last year (RSS, reporter blogs and video), there have been striking increases in the use of some features:

• Fifth-eight percent of newspaper websites post user-generated photos, 18% accept video and 15% publish user-generated articles.  That’s way up from the 24% that accepted such material in 2007.
• Seventy five percent now accept article comments in some form, compared to 33% in 2007.
• Facebook-like social networking tools are beginning to gain traction, with 10% of newspapers now using them, or double last year’s figure.
• Three-quarters list some kind of most-popular ranking, such as most e-mailed or most commented. Just 33% had that feature in 2006.
• You can now submit articles to social bookmarking sites like Digg and del.icio.us at 92% of newspaper sites, compared to only 7% in 2006.
• Only 11% of websites now require registration to view full articles, compared to 29% last year.
• Other stats: 57% have PDF editions, 20% have chat, and 40% offer SMS alerts.

Don’t strain your eyes: Click the image below for a larger version. More charts and data is in the summary report.

Miscellany

Journal-Register has reportedly closed a chain of Connecticut weeklies. The North Haven Courier reports, “On Dec. 18, members of [the Shore Line and Elm City Newspapers, a weekly newspaper chain in the shoreline and Greater New Haven area] were notified they had been laid off…The affected papers include the North Haven Post, the East Haven Advertiser, the Branford Review, the Shore Line Times of Guilford and Madison, the Clinton Recorder, and the Pictorial Gazette and Main Street News in Westbrook, Old Saybrook, Essex, Deep River, Chester, Lyme, and Old Lyme…Joyce Mletschnig, who until Thursday was the Pictorial Gazette’s associate editor, said that their newspapers would be shut down.”

The Seattle Times is asking about 500 non-unionized employees to take a week’s unpaid vacation in order to avoid more layoffs. Employees can take the seven days off at any time over the next two months. Management at the Times, which has cut 22% of its staff this year, may believe that further layoffs will undermine quality to too great a degree, so it’s getting creative with strategy.

Russ Smith has some good quotes in a piece on Splice Today about what he believes is the inevitable demise of print newspapers. Smith, 53, is an unabashed newspaper fan but he’s noticed that even his contemporaries are dropping their print subscriptions or not noticing when the paper no longer arrives on the doorstep. He also notices that his kids and their friends are just as well-informed about current events as he, a counter to the conventional wisdom that young people don’t read. Smith boldly predicts that The New York Times will be sold by the end of 2009, with Rupert Murdoch on the short list of likely buyers. On the other hand, Murdoch may be content simply to let his nemesis fade away.

Raleigh News & Observer Staff Writer Mark Schultz writes with passion about why he got into newspapers and why they’re still relevant. His best line comes in an account about interviewing a woman in her trailer home in Mexico: “We enter people’s lives for an hour and ask for instant intimacy.”

The Knoxville News Sentinel has apparently managed to avoid the carnage that has devastated many of its brethren. In an upbeat column plainly titled “News Sentinel is NOT going out of business,” Editor Jack McElroy pays homage to owner E.W. Scripps Co. for shrewdly diversifying its revenue stream and not loading up on debt. He also says the News Sentinel wisely diversified into TV and specialty publishing to insulate itself from the newspaper advertising downturn. Critics naturally accuse the paper of selling out to political interests.

The New York Times will launch “Instant Op-Ed” next month in a bid to compete with instant cable television analysis. The Web feature will post immediate expert viewpoints on breaking news, according to Editorial Page Editor Andrew Rosenthal.

And Finally…

The Baltimore Sun’s John McIntyre asked readers to contribute the best line heard in the workplace. They come through with some winners. Our favorite: “Yeah, he thinks he’s God’s gift to sliced bread.”