Mark Potts elucidates a criticism of pack journalism that we’ve been expressing for some time: Why do news organizations send so many people to cover the same event?  Potts observes that the Tribune Company “had 14 reporters, columnists and photogs at this year’s Super Bowl, even though neither Super Bowl team came from a city where Tribune actually has a newspaper.” Tribune Co. has apparently wised up and is consolidating some sports beats. Potts also points to the Dayton Daily News, which recently forced its Cincinnati Reds beat reporter into retirement. Potts estimates the paper was spending about $250,000 a year for the 37-year veteran to cover a baseball team 55 miles away that was already being covered by the AP. Perhaps that money would be better used to double up on coverage of local sports, although Potts doubts that’s what’ll happen.

We feel the same way whenever we watch a political convention or a Presidential press conference. Hundreds of journalists travel from far away, stay at expensive hotels and drink top-shelf booze to report the same things everyone can already see on TV. Is it possible that Super Bowl trips are used as rewards for treasured staffers? Could a couple of nice dinners out or a $1,000 bonus accomplish the same objective at less cost? We’re just asking.

Although we outsource most of our layoff coverage to the vastly superior work of Erica Smith, we occasionally see news that merits a comment. Such is the case in San Diego, where anyone who thought Platinum Equity would be the white knight to preserve jobs at the Union-Tribune should have those dreams dashed by the latest round of layoffs. The new owner cut 112 jobs this week on top of 192 announced shortly after Platinum assumed control in May. That means Platinum has laid off nearly 30% of the U-T’s workforce in less than four months. The story on the U-T website reads like a press release, mixing news of the job cuts with upbeat talk about investments in new pagination systems and improvements in local reporting. There is no effort to analyze the impact of Platinum Equity’s ownership on the staff or the product they produce, and no comments about the human impact. Perhaps that’s being held for a day two story.

We also have to give the Journal News of Westchester County a nod for their innovative idea of firing all 288 employees and inviting them to re-apply for 218 jobs. It’s not layoff, it’s a job fair! Seriously, the company plans to make all rehiring decisions final by the week of August 24, which means that managers must conduct 218 interviews within the next two weeks. Just shoot us. Fortunately, August is a slow week in the publishing business.

Journalism Online, LLC, the company formed by Steven Brill to help newspapers charge for content, said 506 publications have now signed up for its affiliate network. In a press release carefully crafted to avoid the gaze of antitrust regulators, the company said its customers are eyeing annual charges of $50 to $100 per subscriber “with little diminution of overall page views or online ad revenue.” Neat trick.

Sites with one million monthly page views can expect to earn an additional $5 million to $10 million annually through reader revenue, which figures out to about 40 to 80 cents per page view. Wow, if any plan can generate 40 cents per page view, sign us up! Journalism Online was cautious to stress that each individual publisher will make its own decisions about what, and whether, to charge. “We’re giving them all the dials to turn…but they will be the ones turning the dials,” Brill said.

Perhaps the best argument we’ve seen against citizen journalism is the parade of crazies showing up to criticize the Obama health care plan. The thought that some of these people could acquire a following is truly unsettling. Sacramento Bee cartoonist Rex Babin illustrates this brilliantly, provoking the usual rash of political diatribes.

Ken Doctor is one of those rare breed of editors who understands the business side of newspapering. After spending nearly 25 years as an editor at papers ranging from alternative weeklies to the St. Paul Pioneer Press, he moved to Knight Ridder corporate to help lead the company’s push into new media. Doctor ultimately worked on editorial, strategy and content services for Knight Ridder Digital, ran its online content division for five years, a position that had him managing a P&L  and scouting out new sources of revenue. He’s currently an Affiliate Analyst With Outsell, a research and advisory firm focused on the publishing, information, and education industries.

Doctor is fundamentally optimistic about the reinvention of the industry to come, but he worries about the estimated 800,000 stories that Americans won’t read this year because reporters around to write them. In this interview, he assesses the various rescue strategies that have been floated, the struggles publishers are having with reinvention and the silver lining behind the nearly 15,00 newspaper layoffs of the last two years.

Paul Gillin spoke to Ken Doctor on August 5th. Here are highlights of the 33-minute conversation.

Listen to the interview (33:23) (right click to download)

The battle over concessions by Boston Globe union is over and management won. Was there ever any doubt? By a decisive 366-to-179 vote, the Boston Newspaper Guild voted to accept a package of pay cuts, benefit reductions and other concessions that is harsher than the one the union rejected last month. Owner New York Times Co. responded to the earlier contract rejection by unilaterally slashing wages 23%. That forced the union to dance a jig and recommend a revised package that had even deeper benefits reductions. Despite considerable grousing in the ranks, Guild members ultimately decided they’d better accept the current deal before things get any worse. Still, widespread layoffs are expected.

Meanwhile, Boston Business Journal editor George Donnelly reports that the Globe’s cross-town rival Herald just closed its fiscal year with a $2 million profit. It seems the publisher started cutting costs and working with the union long ago, while the Globe shoveled money into a pit. So who’s more likely to survive if the recession continues? Ask staffers at the Seattle Times, who believed that the Post-Intelligencer was the weaker of the two local dailies before Hearst abruptly pulled the plug.

Miscellany

Congressional Quarterly, which has been on the market for much of this year, has been acquired by rival Roll Call, which is part of the Economist Group. This can’t come as happy news to CQ employees, who now face the awkward task of merging with an organization that would have been happy to put them out of business. Still, they could do worse than work for The Economist. “The new CQ-Roll Call Group will have the largest and most experienced newsroom covering Washington,” said Laurie Battaglia, managing director and executive vice president of Roll Call Group. Mike Mills, editorial director at Roll Call, will call the shots at the combined entity.

Steve Yelvington has a well-balanced reality check on the future of journalism. The decline of print isn’t the end of journalism, he argues, but it will require a shape-shift. While Yelvington does succumb to some finger-pointing (“Newspapers could have invented search, directories and social networking. Few even tried.”), he ultimately puts the challenge of reinventing journalism at the door of journalists: “How long and how well newspapers and professional journalists persist in our future will be determined in part by how well they identify new ways to play socially valuable roles.”

Cox Enterprises continues to divest its newspaper holdings. It just sold three North Carolina dailies and 10 weeklies to John Kent Cooke, a media, sports and real estate magnate. Cooke’s son will run the North Carolina operation.

Mark Potts analyzes Rupert Murdoch’s plans to knock off The New York Times with The Wall Street Journal, dubbing it a “scorched earth strategy.” Murdoch appears content to let the Times Co. implode under the weight of its own debt while gradually moving the WSJ into its mainstream news stronghold. “There’s been some speculation that Murdoch’s real endgame is to buy the Times on the cheap, but why bother? If he makes the Journal the dominant national paper as the Times withers, he’ll emerge the winner,” writes Potts. It’s a good point. Murdoch biographer Michael Wolff has said that the Australian media magnate “sits around all day and thinks about buying The New York Times,” but why bother when market forces may make that expense unnecessary?

Darrell Laurant writes: “I run something called The Writers’ Bridge that is unique in the freelance universe. Not only do we match ideas with markets, but we generate lots of ideas for writers. We handle each member individually, and we’re good at hand-holding. My biggest frustration is the inability to recruit journalists, a group I see as the guts of this endeavour. I am currently a columnist/feature writer for a mid-size daily in Lynchburg, and I think I have something to offer. It costs $10 a month, but I’m willing to offer two months free to anyone who’s been laid off, just to check us out. After that, it’s $10 a month.” Let us know if it helps, OK?

Ahwatukee Foothills News staff writer Krystin Wiggs writes about being victimized by an elaborate hoax concocted by a young man who claimed to be a gifted and successful chef. The man, Vinayak Gorur, convinced Wiggs that he had won scholarships to culinary school and landed a sous chef job at a top restaurant at the tender age of 21. Gorur even enlisted an accomplice to masquerade as head chef at the restaurant for a phone interview. The guy even duped his parents. Wiggs is sick, angry and apologetic about the whole thing, but her story will resonate with any reporter who had gone through the usual motions of reporting a seemingly benign human interest story. How often do we go the extra mile to verify a story when everyone appears to be so genuine?

And Finally…

Slate has a clever video mashup of what media coverage of the moon landing might look like today. Many of the quotes are clipped from the last presidential election, but work just fine. Best scene: Wolf Blitzer interviewing a Neil Armstrong avatar.

For sheer satirical hilarity, though, we can’t beat this clip from The Onion.

Gannett gave the industry some welcome good news by posting quarterly results that actually exceeded expectations. In the wake of three layoffs of steadily increasing scope over the past year, conventional wisdom was that Gannett would lay a stinker on investors when it reported earnings this week. Instead, its stated results of 46 cents per share beat Wall Street expectations by nearly a dime. “Demand seems to be firming up a bit in some categories and in some geographic locations,” the CFO said.

Maybe those results are a harbinger of better times, because it looks like advertising spending is going to drop 2% next year. That would ordinarily be terrible news, but in 2009 it’s cause for celebration. That’s because ad spending is off 14.5% this year and 18% in the second quarter alone, the worst showing since the Marx Brothers were movie marquis headliners. The new estimates come from Magna, a unit of the Interpublic Group and a closely-watched monitor of advertising activity. The forecaster expects growth to resume in the second half of 2011 but to expand at an anemic 1% annually through 2014. Online advertising – particularly search – will lead the way, although local TV, national cable and outdoor venues will also grow. Not surprisingly, the big losers are newspapers (3.7% annual decline through 2014) and magazines (3.3% over the same period). Magna’s Brian Wieser says the newspaper industry is in “terminal decline.”

Buy BusinessWeek For Less Than a Copy of BusinessWeek

Have you always wanted to own a newsweekly? Well, you can buy BusinessWeek for $1. If that sounds like a bargain, keep in mind that the magazine is reportedly set to lose $75 million this year. That’s down from profits of up to $100 million during the dot-com boom. Times certainly have changed.

Alan Mutter’s prescription is for BW to niche itself at the high end, doing deals with peddlers of pricey Wall Street reports that funnel subscribers their way. He also suggests that the magazine could become the ultimate destination for crowd-sourced financial information, since there are so many smart people out there who want to give advice. His ideas would be plausible if they didn’t involve completely reinventing the culture and the brand at a business that’s hemorrhaging money right now. Perhaps a buyer could effect that transformation by firing 90% of the staff and starting over. There’s also the small problem of the complete irrelevance of a weekly in a world that can barely even support dailies any more.

However, Alan M. Webber thinks BW is a steal at $1. The Fast Company co-founding editor thinks the title is perfectly positioned to become the American foil to The Economist, which seems to be doing just fine these days. “BW could bring fresh energy, opinion, and perspective to all of the change in business that is so hard to make sense of,” he enthuses on Huffington Post. So what are you waiting for, Alan? Just a buck.

Shirky on Journalism’s Future: Put Down the Phone!

Clay Shirky may not always come up with breakthrough ideas, but he has an uncanny ability to derive sensible trends from apparent chaos. Read Shirky’s views on the future of journalism from the Cato Institute. His basic insight: journalism as we’ve know it has long been supported by advertising inefficiencies that made it possible for coupon clippers and automobile buyers to fund journalism that they didn’t personally care about.

The Internet has removed so much inefficiency from the market that these subsidies are no longer viable, so journalism must find sustainable new models. Shirky sees three: crowdsourcing or “participatory” journalism, database mining and patronage.

Working journalists might be most interested in his description of Off the Bus, a Huffington Post venture that monitored polling places using a crowdsourced model last year and achieved remarkable success. Off the Bus couldn’t have worked without a dedicated team of behind-the-scenes editors who made sense of reports filtering in from across the country. That’s journalism, but it’s not what Shirky terms “the ‘phone call’ model of reporting — one paid journalist talking to one source at a time.” Instead, the journalist is an organizer and interpreter.

Shirky  also likes the database-driven style of journalism practiced at The Smoking Gun, which mines public documents and databases for insights. Again, the idea that journalism requires phone calls and reportorial shoe leather is losing relevance in an age when shoe leather is becoming free.

Miscellany

San Diego Weekly Reader and the new owners of the San Diego Union-Tribune are engaged in a vicious battle over allegations by former employees of U-T owner Platinum Equity Partners that the investment firm engaged in ritual acts of sexual harassment, including sex-for-favors and hush-money payments.

The dispute originated from lawsuits filed anonymously by three former employees in 2007, which were ultimately dismissed. Reader describes the allegations in detail and also republishes a lengthy warning shot letter by a Los Angeles lawyer called “Mad Dog” Singer that threats all kinds of terrible consequences if Reader goes ahead with its story (which it did) or publishes Singer’s letter (which it also did). The dispute tarnishes some of the shine on Platinum, whose rescue of the U-T staved off possible closure of the paper. The Reader also tells of Platinum’s latest venture: to take over bankrupt auto-parts maker Delphi Corporation with help from General Motors and Federal bailout money.

Mark S. Luckie has been running 10,000 Words for nearly two years now and he celebrates the liberation of unemployment in an uplifting essay entitled “Why being an unemployed journalist is the best thing to ever happen [sic] to me.” Luckie celebrates his layoff last December as a chance to redouble his efforts to become a multimedia journalist and do the blog right. He also praises other grass-roots efforts by former employees of the East Valley Tribune and the Newark Star-Ledger as evidence that “all the talk of journalism dying is hooey.” Several unemployed journos contribute supportive comments about their own reinvention, but one notes that Luckie fails to address a basic question that also occurred to us: how is he making a living?

Last week’s demise of The Printed Blog evidently didn’t put the final nail in the blogs-in-print coffin. A UK startup called The Blog Paper is taking a run at the same idea. It’s inviting bloggers to submit their stuff to a community ratings machine that will determine which entries are most print-worthy. Co-founder Anton von Waldburg thinks this Digg-like functionality is distinctive as he repeatedly tells Online Journalism Blog. One of the most highly-rated entries on the site today is an idea to put advertising on keyboards (right). Good luck with all that.

Two upstate New York newspapers have dropped a day from their publishing schedules. The Tonawanda News cut its Monday edition and will now publish Tuesday through Saturday. The Medina Journal-Register eliminated its Tuesday edition and now publishes four days a week.

Did you know that 4,000 bloggers contribute to Huffington Post, all of them for free? Michelle Haimoff cites this statistic in a HuffPo column proposing a rewards system for bloggers. Haimoff says her proposal is a way to “create a sustainable business model in the long term,” but we think getting people like John Kerry and Larry David to write for free is a pretty good model to begin with.

Back in January, we told you about The Printed Blog, a venture by serial entrepeneur Josh Karp that sought to flip the online publishing model by delivering blogs in print. The idea was to take the best entries by local bloggers and rush them into print for consumption by busy commuters, whom advertisers would want to reach. “If his idea reaches its full potential, he’ll have hyper-local twice-daily editions in thousands of communities around the US,” we wrote. “Chicago alone could support 50 localized Printed Blogs.”

Well, it turns out Chicago could barely support even one Printed Blog for more than a few issues. Josh Karp shut his doors last week, having poured more than $100,000 of his own money into a venture that barely got off the ground. The Printed Blog published 16 issues in seven regions and it was a pretty interesting read. Its slogan – “Like the Internet, only flammable” – betrayed its playful nature and the website is the essence of Web 2.0 shareability. The venture was a victim of a harsh economy, in part, but also the reality that people apparently don’t want to read 13-hour-old blog entries about the White Sox in print, as the Christian Science Monitor account points out. It was a long shot that drew skepticism from the start, but it generated huge publicity for Karp, who we hope will quickly find a more successful outlet for his ample creativity.

Karp posted several closing entries on his blog, including this one about the lessons he learned from the venture. Among the half-dozen he lists are this one: “Instead of focusing on one thing – revenue – on a small enough scale to prove our model, I decided to try and publish the paper in Chicago, San Francisco, New York, and Los Angeles… I got carried away, and we spread ourselves too thin too fast.” We’re going to be seeing a lot of entrepreneurs try to fill the void left by dying newspapers in the coming years and they would do well to read Karp’s advice. Or even bring him on as a publisher.

The Flap Over Free

We don’t know if you’ve followed Wired editor Chris Anderson’s latest book, Free: The Future of a Radical Price, but the premise is worthy of attention from publishers. Anderson’s premise is that the Internet has created a new competitive dynamic that is relentlessly forcing the price of all things digital – and some things physical – toward zero.

Software that once commanded six-figure license fees is now free.  The entertainment industry has all but abandoned efforts to copy-protect music. Artists now give away music and make money on concerts.

Anderson further argues that other businesses may be pulled into the low-cost business model orbit. T-shirts are basically free, but the cost of a Major League Baseball logo is $30. Casinos give away flights and hotel rooms and make it back on gambling. Ryan Air has staged promotions in which its flights are given away for free while revenue is derived from value-added services like luxury meals or gambling.

This has big implications not just for publishers but for anyone whose value is predicated upon delivering content. Anderson’s premise is controversial and scary to many people. Others simply don’t buy it, including Malcolm Gladwell, who penned a well-argued review in The New Yorker last week. Gladwell points out that Anderson’s argument ignores the value – and cost- of the distribution network. He notes that YouTube makes most of its money from advertising sold against professional programming that it buys from entertainment companies. Thus, the company’s supposedly free content model is really underwritten by real cash money.

Anderson fires back with a respectful rejoinder, telling the story of GeekDad, a blog he started a few years ago that is now run by a largely volunteer workforce. These writers do a heckuva job delivering a product that would have formerly required an expensive publishing infrastructure, and they do it for personal fulfillment, Anderson says. He suggests that this is where the news model is going: “I can imagine far more subjects that are better handled by well-coordinated amateurs than those that can support professional journalists. My business card says ‘Editor in Chief’, but if one of my children follows in my footsteps, I suspect their business card will say ‘Community Manager.’ Both can be good careers.”

True to form, Anderson is giving away digital copies of Free (you can read the whole thing here) but charging for the book. Publicity will no doubt help sustain his five-digit speaking fee. That’s further support for the book’s premise. It isn’t helping his magazine, though, which is among the worst-performing print magazines of 2009. Free can apparently only get you so far.

Miscellany

The Cincinnati Enquirer appears to be shouldering more than its share in the latest round of Gannett Co. layoffs. The paper has laid off 101 people out of a total staff estimated at between 800 and 920. It has also laid off the entire staff of CinWeekly,  companion publication aimed at young readers. Meanwhile, the Detroit Free Press is escaping the axe entirely, but that’s because it and its JOA partner the Detroit News have already cut 17% of their combined workforces since December.

More than half of business communicators surveyed by Ragan Communications think Twitter is a fad that will crest and decline as people run out of interesting things to say. The 28% of respondents who have a microblogging policy in place credit it with improving employee engagement, helping customer service, building reputation and boosting website traffic. Another 40% have no microblogging plan in place. EMarketer remarks on Twitter mania, noting that when people start attributing world-changing characteristics to a new technology, it’s time to start worrying.

The New York Times Co. has extended until late this month the deadine for bids on the Boston Globe. The move is intended to give prospective bidders (three at the moment) time to see if advertising revenue has leveled off and whether the Newspaper Guild approves a tentative contract containing $20 million in concessions. Meanwhile, a lively discussion is going on within the Guild ranks over whether to approve the proposed deal.

A federal judge has cleared the way for Journal Register Co. to emerge from bankruptcy with 90% of the company in the hands of its debtors. The company’s reorganization plan had been held up pending resolution of a dispute over a $1.3 million “shutdown” bonus, which will pay some senior managers to lay off staff and shut down publications. Opponents argued that the bonuses are excessive and unwarranted, but Judge Allan L. Gropper ruled that the fact that the fact that the plan was approved by secured lenders and the company’s creditors committee justified its validity. Under the reorganization plan, JRC gives up 90% of the company in exchange for $225 million from lenders.

And Finally…

The comedy team of Bob & Ray once had a skit about an idea called edible food packaging. It turns out the notion may not have been so far-fetched, as publishers are trying every possible idea to make their print products palatable. In Moscow, the the GazetaPacket is delivering news, crosswords, recipes and advertising on printed paper bags. It’s been running since last August. Editors Weblog tell of other ideas, like Bill Shein’s suggestions for edible paper, martini-flavored ink and naked women on the cover. That last one’s been tried and apparently doesn’t work, but you know what they say about if at first you don’t succeed…

Time magazine writes about the first crop of graduates from a new master’s program at the Medill School of Journalism that aims to blend programming and journalism skills. Medill is the most prominent of several academic institutions that are dabbling with crossover programs that seek to make the news more accessible and multi-dimensional through technology. One outcome of the students’ labors has been NewsMixer (right), a site that enhances the reader commenting experience by enabling contributors to start discussions, post quick tweet-like messages or write thoughtful letters to the editor about stories or elements within stories. The text is annotated with these comments and questions and Facebook Connect integration takes the conversations to other venues.

Most of the students in the Medill program are techies. They spend three quarters learning the craft of traditional reporting and then team up with students from the traditional journalism side to develop an application that delivers information in a new way, enhances the reader experience or makes journalists more productive.

Speaking of new ways of presenting news, a group of senators began working on a bill to overhaul of the US health care system this week, but NPR turned the camera around on the swarm of lobbyists who filled the hearing room. The radio network published photos of the scene, annotated with information about the lobbyists pictured there. And it’s asking readers to contribute information about people the staffers couldn’t identify.

Also, take a look at Newsy, an online video site that aggregates perspectives on important stories. Jessi Stafford, a recent University of Missouri graduate and Newsy intern, told us about it. “Newsy.com creates videos that analyze and synthesize news coverage of important global issues from multiple sources. Its method of presenting the ways in which different media outlets around the world are covering a story lends itself well to understanding complexities.” Newsy aggregates coverage from all kinds of news outlets and presents it in a packaged video format similar to what you might see on the evening news. A newsy “anchor” guides the viewer through a variety of perspectives and attempts to explain what’s going on using these multiple sources. We’re not sure it’s easier to follow than a print digest, but it’s certainly different. See an example below.

You Are What You Tweet

The Australian media watchdog site New Matilda comments upon the ethical dilemmas presented by Twitter. It tells the story of Sydney Morning Herald technology writer Asher Moses, who was publicly embarrassed recently over comments he made about a sex scandal involving a prominent former rugby star. Moses’ comments were made during his off hours, but hasn’t stopped many Australians from questioning the journalist’s impartiality.

Julie Posetti wonders whether Twitter’s humanizing capacity is a blessing or a curse for journalists. Twitter “merges the professional and the personal, the public and the private — blurring the lines of engagement for journalists trained to be didactic observers and commentators rather than participants in debates and characters within stories,” she writes. Twitter makes journalists more accessible and thus more appealing, Posetti notes, but should people who are supposed to be rigidly unbiased be allowed to share their views on anything? Moses says he’s made up his mind. “He’s now decided to restrict his Tweeting to purely work-related messages.” BTW, it’s worth checking out Posetti’s Top 20 Tips for Journo Twits.

Miscellany

Small and mid-sized newspapers may be a bargain in the current market, according to a study by brokerage firm Cribb, Greene & Associates. Despite the fact that smaller papers haven’t suffered the steep losses of their big-city brethren, many publishers are putting them up for sale out of fear of losing further asset value. Asking prices are between four and eight times earnings before income tax, depreciation and amortization (EBITDA), compared to 10 to 14 times EBITDA a few years ago, the firm said. This is despite the fact that revenue declines at these papers have been only about half that of major metro dailies.

At least two potential buyers for the Boston Globe have emerged, and owner New York Times Co. is doing everything it can to welcome them. Former advertising executive Jack Connors and private equity investor Stephen Pagliuca have received permission to team up on a bid. There is also reportedly a rival bid by former Globe executive Stephen Taylor, whose family originally sold the paper to the Times Co. for $1.1 billion in 1993. The Times Co. sweetened the pot by announcing that buyers would only have to assume $51 million worth of pension obligations for the Globe and another $8 million for the Worcester Telegram instead of the full $200 million+ for which the current owners are liable. In an unrelated event, the paper’s editorial page editor, Renée Loth, announced she is leaving the paper after 24 years for unspecified new adventures.

Circulation at the Los Angeles Times passed one million in 1961. Last month it passed one million again – only headed the other way. Edward Padgett remembers. Meanwhile, the revolving door continues in the top editorial ranks: John Arthur (left) is out as executive editor after 23 years at the paper. A memo from Editor Russ Stanton makes it clear that the decision wasn’t Arthur’s.

Microsoft CEO Steve Ballmer says media companies should stop waiting for the market to bounce back because it isn’t going to bounce back. In the future, “All content consumed will be digital, we can [only] debate if that may be in one, two, five or 10 years,” he told the Cannes Lions International Advertising Festival, where he was named media person of the year. What’s more, advertising will continue to migrate online, leaving a smaller pie for traditional media companies to share.

Gannett Co. will lay off 1,400 people, not the 4,500 that was rumored. Still, that brings to 5,400 the total layoffs in the past year, which is about 12% of the company’s workforce. Gannett Blog is tracking the reductions, both announced and unannounced, from reports submitted by employees at local Gannett offices. As of this morning, the count is up to 205.

Magazine publishers might want to catch the next flight to London to find out what the heck they’re doing right at The Economist Group. The publisher of The Economist just reported a 26% jump in profit on a 17% increase in sales in the first quarter. Circulation grew 6.4% to nearly 1.4 million while Economist.com ad revenue leapt 29% and page views climbed 53%. Don’t these people know the media is dying? Interestingly, The Economist enjoys a much hipper image in the US than it does in its native land. In fact, the company just launched a new video ad that portrays a young man walking on high wires across a European city, seeking to highlight its appeal to young readers.  The average Economist reader in the US is 39 years old. In the UK, where the magazine has a more serious image, the average if 47.

Management at the Boston Globe finally wore down union leadership last night and won tentative agreement on a revised contract that is substantially similar to the one the union rejected a little over two weeks ago.  The new contract slightly reduces the pay cut management had originally sought, although it includes additional benefit reductions.  More importantly, the Globe and its parent New York Times Co. emerged victorious on the biggest issue: the right to end lifetime job guarantees for 170 employees.

Union members still have to ratify the proposed contract in a vote set for July 20, but approval seems likely now that union leadership has endorsed the deal.  The end of the last bitter labor dispute between Globe management and employees also positions the paper for sale to one or more of several interested suitors, which include investor and Boston Celtics co-owner Stephen Pagliuca,; Partners HealthCare chairman Jack Connors and former Globe executive Stephen Taylor.

Schedule Cutbacks Have Unforeseen Effects

More than 100 daily newspapers in 32 states have cut at least one daily edition in an effort to reduce costs and avoid layoffs.  But if you think that changing frequency is a matter of just shuttling around the work schedule, read this excellent piece in Editor & Publisher on the ripple effects of becoming somewhat-less-than-daily. Joe Strupp talked to editors around the country and found that cutting as little as one day’s worth of print news can force significant changes in the way a newspaper approaches its mission. “We try to cover Saturday through Monday on Tuesday. But we don’t staff Sunday night so we can staff more the rest of the week. There is more breaking news that goes up on Monday,” says Dan Liggett of the Wilmington (Ohio) News Journal in a quote that typifies the kind of calendar soup that these editors must contend with.

Some papers have had to add pages on days following gaps in the production schedule because print diehards still want local news and won’t go online for it.  Big news stories tend to lose momentum when they occur just before a break in the production schedule.  This forces editors to alter subsequent coverage to keep reader interest from waning. The Detroit News and Detroit Free Press, which are the most prominent dailies to cut back on print, have moved more enterprise reporting stories into the Thursday, Friday and Sunday editions that land on subscribers’ doorsteps.

In communities with active high school sports schedules, the loss of a Saturday edition has prompted website editors to boost the priority of local sports in Saturday online coverage and to add Sunday pages to handle the demand. Other publishers have found that weekly columns and features that appeared on certain days have had to be moved to other days because readers didn’t want to give them up.

The good news is that “editors are becoming more convinced that print-devoted readers will stick around even when fewer editions are available and stories get published days after a news event,”  Strupp concludes.

R.I.P. Ann Arbor News

The Ann Arbor News, which announced plans in March to scale back from daily to twice weekly frequency, is apparently going a little further than that.  Writing on Poynter.org, Rick Edmonds reports that the 174-year-old daily is effectively shutting down.  The “unspecified number of layoffs” the paper announced in March is in fact the entire staff, Edmonds says. The headquarters building (right) will be sold and an entirely new online operation launched with a twice-weekly print edition that looks pretty lightweight. Staffers will have the opportunity to apply for jobs at a much lower pay scale than what most of them are currently earning.  Edmonds suggests that Ann Arbor’s young, hip college-age crowd is more attuned to online media and extrapolates the same scenario playing out in cities like San Francisco, Boston, Minneapolis, Seattle and San Jose, where a young, upwardly mobile populace creates a hostile environment for a daily newspaper.

Miscellany

Editor & Publisher continues to try to find insight in the increasingly meaningless “time-spent-on-sight” statistics for major newspapers.  We pointed out some of the weaknesses of this metric in our analysis of last month’s figures, including the paradoxical fact that big spikes in traffic can actually drive down time-spent figures.  Did the Washington Post really do anything to deserve a one-third drop in reader time commitment from May 2008 (16:04) to May 2009 (10:58)? If you look at the snapshot for those two months, things look pretty negative for the Post, but the April 2008 time-spent number was 12:55, which hints that the figure from May of last year was a fluke.  We wish Nielsen would stop flouting these monthly snapshots and concentrate instead on six month moving averages, which would filter out the short-term spikes that make year-to-year comparisons practically useless.

Fans of Jim Hopkins’ hugely popular Gannett Blog can breathe a sigh of relief.  The crusade to be the world’s most reliable source about what’s going on inside the company will continue at Gannettoid after the blog shuts down on July 19. Gannettoid is “a Web site that serves as a collection of stories, links and other Web sites about Gannett Company.” While it isn’t formally affiliated with Gannett Blog, Gannettoid is welcoming devotees to continue their conversations in the forum section.  No word on whether Hopkins will pop in for a visit now and then.

The new owners of the San Diego Union-Tribune are already selling off property acquired in the purchase of the newspaper last month. Two properties have gone on the market at a combined sale price of $9.1 million, which is nearly 40% higher than what Platinum Equity paid for them. The move would tend to confirm Ken Doctor’s theory that Platinum Equity acquired the U-T primarily for its real estate value and got the newspaper thrown in for free. (via Gary Scott)

Sun Newspapers will eliminate 115 full- and part-time positions in mid-August as part of a sweeping reorganization plan that will reduce the company’s portfolio of weekly newspapers by half and outsource accounting, payroll and home delivery to the Cleveland Plain Dealer. Both organizations are owned by New Jersey-based Advance Publications.

The Columbia Journalism Review profiles Alan Mutter, whose Reflections of a Newsosaur blog has stirred up the industry and created a launch pad for Mutter’s ideas about reinventing news organizations. It’s a good companion to our Feb. 18 audio interview with Mutter that includes details about his new ViewPass venture, which seeks to give publishers a viable subscription model.

Washington Post publisher Katharine Weymouth addressed graduates of the Medill School Of Journalism at Northwestern University over the weekend, urging them to continue to fight the good fight and declaring that “the need for great journalism is stronger than ever.” You can read the full text of her address here. Dan Gillmor tweeted that it was a “defensive commencement speech by WashPost publisher; she plainly has no strategy for future.”  However, Weymouth’s remarks indicate that she understands that the old model is collapsing and that publishers must adapt to a new world in which they are no longer “a toll booth over a bridge” to their readers.  Read the text and draw your own conclusions.

Last week we noted that MySpace is struggling against Facebook and other adult-oriented social networks, calling into question the effectiveness of Rupert Murdoch’s management strategy.  Now MySpace is laying off two-thirds of its international workforce, or 300 people, on top of the 400 laid off in the US last week.  Altogether, the company has cut its total workforce by nearly 40%.  Which only goes to show, we suppose, that media dislocation isn’t limited strictly to old media.

And Finally…

There is hope for veteran journalists.  Oyster Hotel Reviews is a fledgling online venture that employs 13 journalists to conduct extensive reviews of lodgings for business and leisure travelers.  The site, which is funded by Bain Capital Ventures, bucks the current trend toward wisdom-of-crowds reviews by employing professionals to visit hotels under cover and write about their experiences. “Oyster.com is a great opportunity for these journalists as they provide full benefits, competitive salary and a job that includes travel to various hotels around the world fully paid for—who wouldn’t want that as a job?” a publicist wrote us.  We’re wondering where to apply.

The Newspaper Guild stalled for time in an attempt to block massive pay cuts at the Boston Globe, but it strategy may have ultimately backfired, reports The New York Times.  In a behind-the-scenes look at the machinations that preceded Guild members’ June 8 rejection of a proposed package of salary and benefit cuts, the Times concludes that the Guild knew about the depth of the newspaper’s financial problems a year ago but adopted a strategy of stalling and secrecy for reasons that aren’t clear.  The Guild even refused to sign a confidentiality agreement that would have given it a look at the Globe‘s financial data a year ago.

As a result, Guild members, which include most of the Globe‘s reporting staff, were unaware of the depth of the paper’s financial problems when the New York Times Co. announced on April 3 that it would shut down the Globe unless the union made  significant wage concessions.  The Times Co. has unilaterally imposed a 23% salary cut while negotiations continue. A vote on a new contract postal is set for next month, and it appears that this one has a better chance of passing, but the Times article basically concludes that the Guild members will get a worse deal as a result of their union’s intransigence.

How much is the Boston Globe worth?  Ken Doctor suggests it’s one buck.  That’s the price of a gentleman’s agreement in which a buyer agrees to assume the seller’s liabilities in hopes of future profits.  The Times Co. has said that the Globe is for sale, but hasn’t named a price.  Doctor sees any buyer assuming huge liabilities, including expensive union contracts, ongoing losses and a declining ad market.  However, he sees some upside next year when the economy begins to turn and advertising recovers with the help of government-subsidized programs for home and car buyers.  This should give a buyer some breathing room to make structural changes hopefully revive the Globe as a profitable entity, whether in print or some other form, Doctor believes.

Meanwhile, the lesser entity in the Times Co.’s 1993 acquisition of its New England — the Worcester Telegram & Gazette — is also for sale.  The T&G was reportedly valued at about $300 million in 2000, but now carries an estimated price tag of $10 million to $50 million.  The paper does not appear to be in as dire financial straits as the Globe, but it is at best a break-even proposition.  the T&G speculates on potential buyers, including a former publisher and financial heavyweights in the area, but no one is saying much of any substance.  There is broad agreement that the T&G fills a critical role as the only major news source in New England’s second-largest city.

Journalism Vets Seek New Revenue Streams

A team of veteran journalists and news technologists have joined forces to create a technology that they hope will enhance the Web browsing experience while creating a new revenue stream for content producers.  Called Circulate, the tool has elements of social networking, intelligent filtering and subscription management.  It basically learns from the user’s online behavior and delivers recommendations for content the user might like.  People can easily share information with each other and Circulate will deliver notice of new information as it becomes available.

What may appeal to publishers is the tool’s flexibility to adapt to any payment model, ranging from subscription fees to per-item pricing.  Circulate will also become a more valuable tool for targeted advertising as it learns about a user’s behavior.  Executives behind the venture have extensive credentials in the news business and the board of directors includes three top officials from the Donald W. Reynolds Journalism Institute at the University of Missouri, where Circulate was incubated.

Miscellany

The Minneapolis Star Tribune plans to exit bankruptcy in the fall, but with a market value of nearly zero.  The company, which fell into bankruptcy under the weight of nearly a half billion dollars in debt, has received approval for a plan under which it would emerge from Chapter 11 with $100 million in debt and a market value of no more than $144 million, including real estate.  All the current owners would basically exit the business and a new board of directors would be formed to appoint new management.

A new poll by Zogby International finds that only one in 200 people believe newspapers will be a dominant source of information in 2014.  What’s more, 56% of adults say that if they were only allowed one source of news, they would choose the Internet, compared to 41% for television, newspapers and radio combined.  What amazed us is that 38% of the more than 3000 respondents said they believe news from the Internet is the most reliable, followed by television at 17% and newspapers at 16%.  So the idea that the Internet is a vast cesspool of misinformation does not appear to be deterring public trust.  (Via Mark Potts)

The Gannett Blog, which will be shut down permanently on July 19, is going out with a bang.  Editor Jim Hopkins is reporting that Gannett plans to lay off 4,500 people in its newspaper division and cut salaries in its broadcast division.  The bright spot: no new furloughs the rest of this year.  Hopkins says the ax is due to fall on July 8.  Gannett has already cut 4,000 positions, or about 10% of its workforce, over the last year.  This would be the biggest round of layoffs yet.

About 500 unionized workers at the Cleveland Plain Dealer will take an 8% pay cut and 11 unpaid days off as a way of avoiding further layoffs.  Meanwhile, the paper is launching yet another redesign that the editor says will make more efficient use of dwindling space (below).

The Albany Times Union is set to cut as many as 45 jobs in a bid to reduce operating costs by 20% after it failed to come to terms with the Newspaper Guild on a new contract.  The proposed contract would have allowed management to outsource any job and lay off workers without respect to seniority.  It was rejected 125-35.  The union says the new layoffs are a punitive step and vows to challenge them.

The government of France has stepped up its novel rescue plan for the French newspaper industry, offering to give 18- to 24-year-olds a free newspaper once a week for a year.  The original plan, announced in January, applied only to 18-year-olds.  The government is investing €600 million in its newspaper rescue plan.

Is Walter Cronkite near death? CBS News was reportedly told a week ago to update the legendary newsman’s obituary, but friends are now saying rumors of Cronkite’s impending demise are greatly exaggerated.  Commentator Andy Rooney stopped in to visit the 92-year-old Cronkite recently and says “Walter’s going to live for a while.” A family friend says America’s most trusted man is losing his memory and is confined to a wheelchair but the death is not imminent.

And Finally…

Garrison Keillor is going to miss The New York Times, so he’s adopted a strategy of reading every word of every issue, forsaking all other activities in the meantime.  He’s up to 1999 and should be busy for quite a while.  Keillor spins his story in typical Prairie Home style, and an audio version is also available.

We’re back from filing an 80,000-word manuscript for a book about using billions of dollars worth of high-tech satellite equipment to find Tupperware in the woods. Really. And not much has changed in the last 10 days.

Murdoch Now Struggles Online

Rupert Murdoch was hailed as a visionary when he paid the then-bargain price of $580 million for MySpace in 2005, but now it appears that the newspaper mogul may not know that much about running an Internet community after all. MySpace just laid off 400 employees in the US and could cut another 100 internationally. That would amount to more than 15% of the company’s 3,000-employee workforce.

Crain’s New York quotes eMarketer forecasting a 15% drop in MySpace ad revenue this year, while Facebook is expected to gain 10%. MySpace is still bigger, but it’s headed in the wrong direction, with a 2% decline in visitors in April, compared to an 89% gain at Facebook. Murdoch has fired some executives and promised to rejuvenate MySpace, but the site has lost its utility to the older audience, which is flocking to Facebook. MySpace is still the preferred destination for rock bands and entertainment companies, but that doesn’t give it much cachet with the wealthier audience that Facebook is attracting.

Post Publisher Just an Ordinary Mom

Vogue has a feature on Katharine Weymouth, publisher of the Washington Post and granddaughter of the revered Katharine Graham. Nancy Hass portrays Weymouth as an unpretentious, down to earth mother of three who just happens to run one of the world’s most prominent media properties.  “She’s a mother first,” says her friend Molly Elkin, a labor lawyer.

The Post‘s new managing editor, Marcus Brauchli, calls Weymouth “an amazing listener” who isn’t afraid of criticism and who seems more at home with her people that the glitterati. She moved her office off the Post‘s executive floor and down into the advertising department, where she easily banters with her employees. Her home is a modest four-bedroom affair in Chevy Chase, where she greets visitors amid the barely controlled chaos of a living room full of toys.

Although she faces a huge task in reinvigorating a paper whose circulation has dropped 20% since its heyday, she says she has no grand plan. In fact, the piece makes out Weymouth to be a smart (Harvard magna cum laud and Stanford Law) achiever who makes it up as she goes along. Her attitude toward the Huffington Post and The Daily Beast, which both use Post content without paying: “Good for them. All’s fair, you know.”

Miscellany

The Associated Press is struggling to change its business model in light of the collapsing fortunes of the newspaper industry. The cooperative is trying to negotiate more lucrative licensing deals from major Internet news sites while cutting prices to newspapers in an effort to prop them up. The AP will reduce fees by $45 million for newspapers and broadcasters next year, or about $10 million more than the rate cut it announced in April, CEO Tom Curley said earlier this week. But that won’t stop the decline in revenue, which is expected to continue through at least next year. Curley said the AP aims to reduce its 4,100-person workforce by 10% through attrition, but that layoffs may be necessary.

After 18 months on the market, the Portland (Me.) Press Herald finally has a new owner who has promised to reinvigorate the troubled paper and restore it to profitability by the end of the year. Bangor native Richard Connor officially took the helm this week and said readers will immediately notice a thicker paper and better integration with the website. But there will be pain, with layoffs of up to 100 employees likely.  Remaining employees will get a percentage of the operation and two seats on the board. A conciliatory Guild executive said the layoffs will prevent much bigger job losses that would have occurred if the Press Herald had gone under.

The Knight Foundation is funding nine new-media projects to the tune of $5.1 million. The biggest winner is DocumentCloud, a project conceived by journalists from The New York Times and ProPublica to create a set of open standards for sharing documents. Other projects receiving support include one to help citizens use cell phones to report and distribute news, an effort to develop a media toolkit for developing mobile applications and an online space where the people can report and track errors in the media.

Yahoo’s Newspaper Consortium continues to be a bright spot for the industry. Yahoo reported that five new members just joined the ad-sharing cooperative: the Orange County Register, Colorado Springs Gazette, North Jersey’s Record and Herald News and the San Diego Union-Tribune. The group’s 814 newspaper members account for 51 percent of all Sunday circulation in the US.

Newspaper Guild members at the Albany Times Union have rejected a management proposal that would have eliminated seniority considerations in layoffs and permitted outsourcing of Guild jobs. The vote was 125 to 35. No word on whether the parties will return to the bargaining table, where they have been deadlocked for nine months.

Dan Gillmor has a short, pointed piece on MediaShift pleading for an end to caterwauling over the future of journalism and praising the “messy” process that is going on.  “I’ve grown more and more certain that we will not lack for a supply of quality news and information,” provided that risk-takers are permitted to experiment and that the supply of people who want to practice quality journalism doesn’t dry up, he writes. Like Clay Shirky, Gillmor believes experimentation will ultimately lead to many smaller news operations replacing a few big ones, and that that’s not a bad thing.

It appears that some leading news titles are finally throwing in the towel on the circulation wars.  The New York Times just announced that it will hike its single copy price to $2 on June 1, a 33% increase. Outside of the New York area, the Sunday Times will now cost a whopping seven dollars for home delivery. Several other papers have also increased prices recently, including the Washington Post, Tampa Tribune and Dallas Morning News.  These papers have effectively doubled their newsstand prices in the last two years.  Newsweek just rolled out a new design and cut its circulation by half while increasing cover prices.

What’s going on?  We suspect the publishers are finally beginning a sunsetting strategy for their print editions.  By driving up circulation prices, they are effectively winnowing out their low-value customers.  Price increases will probably come fast and furious in the future. Each will cause circulation to fall until a new floor is reached. Expect circulation declines to quicken as more newspapers adopt the strategy.  Declines have been running in the 6% to 8% range per year for the last two years, but will probably increase if more papers follow the lead of the Times and Journal.

In effect, these newspapers are giving up on print. They are harvesting their most loyal readers and shifting their investments to new platforms.  With the average age of a daily newspaper reader now standing at over 55 years, publishers can expect to derive print circulation revenue for about another decade. Of course, it may not be economically viable to stick with a daily schedule that long, but that readership can be milked for some time to come.

The harvesting strategy makes sense economically, strategically and environmentally. It’s pointless to throw good money after bad chasing new readers with deeply discounted subscriptions that are canceled after three months.  Loyal readers are more attractive to advertisers than bulk circulation and can command higher CPMs. And this means fewer papers going in landfills.  Treating print as a cash cow enables publishers to plow whatever profits are left into new platforms.  Their companies will grow smaller over time, but at least they’re more likely to have a future.

Miscellany

Dan Froomkin begins a four-part series at Nieman Journalism Lab on a prescription for the news industry.  He argues that the bland, expressionless voice that journalism organizations have adopted for the past 40 years has undermined their appeal. “We stifle some of our best stories with a wet blanket of pseudo-neutrality. We edit out tone. We banish anything smacking of activism. We don’t telegraph our own enthusiasm for what it is we’re doing.” In part two, he argues for putting passion back in news reporting.

The Wall Street Journal is running an interactive map that shows “adverse events at the top 100 newspapers” since 2006.  You can mouse over the regions and see information on layoffs, circulation trends and business conditions.  It ‘s accompanied by a dense, ugly chart with detailed information and lots of unexplained columns.  It also doesn’t include recent information like the closure of the Tucson Citizen.

San Diego Valley Reader has an extensive profile of Tewfiq (Tom) Gores, the billionaire who runs Platinum Equity, the partnership that bought the San Diego Union-Tribune. The piece details the controversial background of Gores’ uncle, Tom Joubran, an Arab immigrant who prospered as a grocer in Flint, Michigan but whose background may involve some criminal activity.  It suggests that the Union-Tribune may adopt a strong pro-Palestinian editorial position, which would be quite a contrast from its traditional Republican leanings.

USA Today has a cover story in its money section today that was reported entirely on Twitter. Reporter Del Jones asked CEOs to comment on whether the country is drifting toward a European style of capitalism.  Their responses are reproduced in the staccato shorthand that Twitter’s 140 character limitation imposes.  Absent from the discussion are the founders of Twitter – Evan Williams, Jack Dorsey and Biz Stone – who failed to respond to numerous tweeted requests.  Of course, with more than 2 million followers between them, they’re probably busy.