Add one more name to the list of the newspaper industry’s walking dead: those titles that have been put up for sale with the threat of closure if a buyer isn’t found. Colorado’s Rocky Mountain News and Seattle’s Post-Intelligencer are both in limbo awaiting rescue and now Gannett Corp. has added the Tucson Citizen to the auction, stating that if a buyer isn’t found by March 21, the afternoon daily will close.

The Citizen has been published by Gannett in a joint operating agreement partnership with Lee Enterprises, owner of the Arizona Daily Star. Gannett has actually made out in the deal because the Daily Star makes more money than the Citizen and has to pay a share of profits to its competitor. But even that apparently isn’t enough to make the Citizen a worthwhile investment for Gannet. D-Day is March 21.

Some Pols Miss the Heat

In an ironic twist, public officials are beginning to complain about the loss of the watchdog journalists who used to keep them awake at night.

Broward/Palm Beach’s New Times carries an opinion piece featuring quotes from numerous government officials complaining about the lack of journalistic oversight. Financial problems at the Miami Herald and the Fort Lauderdale Sun-Sentinel, compounded by Florida’s sour economy, have led to massive staff cuts. That means some cities that used to have two reporters are now covered by one third of one reporter.

“[The Sentinel] doesn’t seem to have the interest in going after big-time issues that require work,” says Broward Public Defender Howard Finkelstein, in one of several quotes that illustrate how the industry’s turmoil is hitting home on Main St.. “They want to write quick things for the blog. It just looks like it’s falling apart to me.”

Writer Bob Norman says the city of Hollywood, which is home to more than 140,000 souls, doesn’t have a full-time beat reporter for the first time in memory. Sunrise (pop. 85,000) is also almost uncovered. “The state of journalism in Broward has been decimated,” Norman writes. This has put government officials in the odd position of mourning the loss of the same watchdogs who used to make them miserable.

“The newspapers used to be the watchdogs of the government, and people relied on them to tell the truth,” says Sunrise Commissioner Sheila Alu. “Now they’re just filled with advertisements.” But perhaps reflecting the love/hate relationship elected officials have with the fourth estate, she adds, “Believe me, we’re fine with it.”

But Jim McDermott isn’t. The Democratic Congressman from the state of Washington is mad as hell about the possible closure of the Seattle Post-Intelligencer and he intends to do something about it. McDermott, who is also a senior member of House Ways and Means Committee, says in a guest column in the P-I that perhaps we should steal a page from the UK and let more of our newspapers operate as nonprofits. “The tax code might have a direct bearing on developing a new business model for the newspaper business nationwide,” he says. In other words, if all those newspaper conglomerates would be willing to convert to nonprofit status, the government could help them out. Tell that to the folks at National Public Radio, which cut 7% of its workforce and cancelled several programs last month.

McClatchy Watch points to an analysis of recent investigative reporting at the Kansas City Star that cites glaring holes in the story. It’s probably not the reporter’s fault, the writer points out. Writer Eric Adler is a seasoned pro. But the lack of news and copy editors caused some basic questions to go unanswered.

Turnover Epidemic

The industry’s downturn is taking its toll on top management. The New York Times documents editor and publisher turnover at top US titles and says it’s out of control. In fact, 19, of the 20 largest newspapers in the country have changed their top editors this decade. The next to go will be Ken Paulson, who leaves USA Today in February.

Editors and publishers are under unprecedented pressure to do more with less, the Times reports, and angry CEOs are quick to boot them out when they fail. Editors, in particular, are preoccupied with revenues and income statements. “My involvement in business concerns went from something like 15 percent of my time to about 50 percent,” says Paul Steiger, who retired in 2007 as managing editor of The Wall Street Journal, and who now heads the nonprofit journalism foundry ProPublica. The turnover may be necessary. A lot of executives who were successful in good times have been like deer in the headlights when faced with the need to slash and burn through their business.

Maybe the problem is consolidation? From the Media Reform Information Center (via Derek Gilbert):

Miscellany

Carlos Slim, the world’s richest man, may increase his stake in The New York Times Co., according to Reuters. Slim already owns 6.4% of the company, a stake that has fallen by more than half in the past five months. But a source says he’s in it for the long term and is ready to give the embattled Ochs Sulzberger family a vote of confidence by helping them to pay off a $400 million debt that comes due in May. The good news, says Reuters: “Slim, 68, became one of the world’s richest men by placing heavy bets on hard-hit companies.”

Citing a 40% decline in revenue since 2006, the beleaguered San Diego Union-Tribune is getting creative with expense cuts. Hourly workers will have to take one or two days without pay in February and March, merit raises will be frozen, company contributions to 401(k) accounts will be eliminated for this year and employees will pay more for health insurance. The Union-Tribune has been for sale since July and while there have been some interested local buyers, no one has yet named a price.

Ogden Newspapers has eliminated several positions at its Intelligencer and Wheeling News-Register papers in West Virginia. True to the spirit of full disclosure, the publisher isn’t revealing any more information.

Clear Channel Communications isn’t a newspaper company, but its plans to lay off 1,500 employees command attention because Clear Channel is such a leading indicator for the advertising industry. In addition to dominating outdoor (billboard) advertising nationwide, the company owns a portfolio of radio stations, making its difficulties a microcosm of the US advertising market. The layoffs amount to about 7% of the workforce.

And Finally…

It isn’t every day you get cited in The New Yorker, but Jill Lepore leads off a piece on the newspaper industry’s troubles with a reference to the Death Watch this week. We weren’t be able to set aside the time to read and digest this 14-screen epic on Monday morning but will get to it soon. Guess we’re stuck with the R.I.P. column now…

Rumors have been floating around for months that the Seattle Times would shut down, so employees at rival Post-Intelligencer were understandably shocked when a local TV station reported a single-sourced story yesterday that the paper is being put up for sale and would be shut down if no buyer is found. No one, from the P-I‘s publisher on down, is confirming the report or even knowledge of the rumor. This doesn’t stop the Seattle Times from quoting numerous staff and local officials commenting about how sucky a shutdown would be, some of them speaking in the present tense. “I think it’s a horrible tragedy,” said Seattle City Councilman Nick Licata, referring to a single-sourced story that no one has confirmed.

Speculation is focusing on a change of management at P-I owner Hearst Newspapers. Incoming President Steve Swartz reportedly sent employees a memo outlining “100 Days of Change” beginning in early 2009, but offered few specifics. Under the joint operating agreement, either of Seattle’s two daily newspapers must be offered for sale for 30 days before being shut down. The report comes as a particular surprise because well-reported financial troubles at the Seattle Times have had most locals thinking it would be that paper going down first. Keep in mind, however, that this is still a single report based on a single source at a single local TV station. The fact that the publisher of is the P-I‘s main rival denies awareness of it should be taken seriously.

A Benevolent History

Jack Shafer’s account in Slate of how newspapers innovated – and then failed – on the Web is a sympathetic story about an industry that’s often criticized for insularity. In contrast to the popular image that newspaper executives were clueless about online competition, Shafer declares that they were actually paranoid about it. In fact, newspapers threw away a lot of money trying to create early online business models.

The Washington Post had constructed its own interactive service by 1994 and nearly every major newspaper was online by 1999. “Newspapers deserve bragging rights for having homesteaded the Web long before most government agencies and major corporations knew what a URL was,” Shafer writes. In earlier years, Knight-Ridder sank $50 million in an Internet precursor called videotex and newspapers had experimented with fax and even audio editions in the early 1980s.

The problem wasn’t innovation, Shafer notes; it was attitude. Newspaper companies’ approach to these disruptive technologies was first defensive and then opportunistic. Once executives were satisfied that their revenue base wasn’t going away they sought to use new media to find new revenue streams as long as it didn’t mess with the model. Commenting on videotex, he writes, “Once [newspaper companies] they determined that nobody could make money from videotex and the technology posed no threat to the newsprint model, they were happy to shutter their ventures.

But that’s the problem. New technologies never succeed when their use is restricted like that. Shafer calls these “nongenerative” services, meaning that no third party industry can innovate on their platforms. AOL is an example of this. Nongenerative services almost always lose out to “generative” media like the Internet because customers can add their own value. That’s basically why the personal computer has 90% market share and the Mac has 10%. Intel CEO Andy Grove titled his book Only the Paranoid Survive. The newspaper industry had the requisite paranoia, but it didn’t have the innovative attitude to match.

Miscellany

Residents of the New Mexican cities of Santa Rosa, Tucumcari, Clovis, Portales, Lovington and a couple of dozen other cities and towns that currently get home delivery of the Albuquerque Journal will have to find something else to read. New Mexico’s largest daily newspaper, plans to stop home deliveries and rack sales in more than 30 communities around the state. This despite the fact that the Journal lost its only competitor, the Albuquerque Tribune, nearly a year ago. The cost of delivery was just too steep, the publisher said. Elsewhere in New Mexico, Freedom New Mexico stopped home deliveries of the Quay County Sun last week.

The Newark Star-Ledger‘s Paul Mulshine contributes an op-ed piece to The Wall Street Journal that reads at first blush like another curse-the-darkness ranting by an aging journo about the unfairness of it all, but that ultimately makes a persuasive case that no blogger in his of her right mind is going to be caught dead covering city council meetings for free.

McClatchy Watch notes a case of online cluelessness by company management. Responding to rumors that McClatchy was closing its Washington bureau, CEO Gary Pruitt sent off a memo to employees scolding them for spreading the rumor without checking with company management. Of course, it’s management’s responsibility to head off rumors quickly, not employees’ responsibility to verify them. If McClatchy had its internal communications act together, there wouldn’t be an audience for a McClatchy Watch.

Layoff Log

• The drip, drip, drip of layoffs continues at the St. Louis Post-Dispatch: another 39 people have lost their jobs, including 14 in the newswroom. The AP story reckons total announced cutbacks at the P-D amount to 270 in the last 16 months. (Via PaidContent.org)
• The Winnipeg Free Press is begging employees to accept a buyout in order to avoid laying people off next week. The publisher seeks to reduce headcount by about 5%.
• The Buffalo News is offering buyouts to about 300 workers. There’s no word on how many jobs the paper is seeking to eliminate. A similar offer went out last August to 107 employees, but only about a dozen accepted.
• Dow Jones is freezing salaries for a year, reports MediaBistro. Unlike most media companies, Dow Jones has so far managed to avoid major layoffs.
• NJN Publishing, which produces four weekly newspapers in New Jersey, laid off 25 full- and part-time employees, or about 17% of its staff.

And finally

In a print market that’s hemorrhaging, The Slammer is one newspaper that’s flourishing. Its “newsstand profit margin is four times that of most local dailies, and its circulation has grown to 29,000 – up nearly 50 percent from 20,000 just last year. At more than 500 convenience stores across North Carolina, it’s selling at a buck a pop,” writes The Christian Science Monitor. The secret: The Slammer is full of mug shots, crime reports and allegations of misdeeds. “The men and women, with their dour mugs, bloodied noses, and booze-induced grins, have been arrested for everything from skipping a court date to robbing a food mart. It is, in essence, the local police blotter writ large,” the Monitor writes.

Journalism ethicists bemoan The Slammer‘s perverse appeal, but the genre is spreading. Two papers with a similar format have sprung up in Florida and The Slammer is planning to expand its North Carolina distribution.

The secret isn’t just the mug shots and wrongdoings. It’s also the snarky style the paper uses. It sometimes mocks repeat offenders and hosts weekly features like the worst late-night arrest hairdos. Such public flogging is a “step up from the stocks,” says one critic. But victims don’t seem to mind too much. In fact, “the chief complaints the weekly paper gets come from perps complaining that their photos didn’t get printed,” the Monitor writes.

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.

We wrap up our review of the highlights of 2008 with a selection of the best quotes we carried.

What’s black and white and completely over? It’s newspapers.”

– Jon Stewart, The Daily Show

“We wish Scripps well as it leaves the Denver newspaper market.”

–Denver Post Publisher Dean Singleton, effectively closing the door on any chance he would rescue rival Rocky Mountain News

“Today is set aside as National Punctuation Day (though, like National Grammar Day [March 4, isn’t it?], an occasion I’m inclined to approach with some misgivings); it has been commemorated since 2004 by Jeff Rubin, the self-described Punctuation Man (!) and his wife, who, since “premiering Punctuation Playtime in September 2006 … have been as busy as commas in a Sears catalog,” and who carry the message that “careless punctuation mistakes cost time, money, and productivity”: a proposition that merits examination – and illustrated here by a sentence that will have included all 13 standard punctuation marks when it arrives at a full stop.”

–John McIntyre, Baltimore Sun copy desk director, demonstrating how to use all 13 stanbdard punctuation marks correctly in a single sentence

“You are not in the newspaper business. You are in the business of going into your communities, finding stories, processing them and delivering them back to your clients and charging advertisers for those eyeballs.”

– Journalism futurist Michael Rosenblum, to the Society of Editors

“The newsroom…is down to seeds and stems in terms of numbers of reporters, photographers, copy editors and sports writers.”

–Mike Tharp, executive editor of the Merced (Calif.) Sun-Star, leaving little doubt that he has inhaled

“Victimhood is an irresponsible abdication of responsibility, a surrender.”

— Jeff Jarvis, on journalists’ protests that the newspaper industry’s predictament isn’t their fault.

“The newspaper industry is an abusive relationship. We keep getting beat up but we keep coming back because we love him.”

—Martin Gee, administrator of a new group on Facebook called Newspaper Escape Plan

“I repeatedly witnessed bizarre behavior at newspapers that no other business would ever allow. Some reporters and columnists were frequently drunk or on drugs on the job. Such conduct was not simply tolerated, it was condoned. These third-rate Hunter Thompsons screwed up appointments and scrambled facts but were never called to account for their mistakes, incivility or disruptive behavior.”

—Political consultant Clint Reilly

“We wish Jay well and will miss him – not personally, of course – but in the sense of noticing he is no longer here, at least for a few days.”

—Chicago Sun-Times editor Michael Cooke on the paper’s bitter breakup with sports columnist Jay Mariotti

“Many of our regular readers regard us like the electric company or water utility. Yes, everyone wants electricity and water and it’s a pain to do without them. But your soul just isn’t stirred by the sight of working faucet or wall socket.”

—Chicago Tribune Editor Gerry Kern on giving readers what they want

“These guys are in a world of hurt and we as a community need to find economic models that will fund really great content.”

—Google CEO Eric Schmidt on the decline of investigative journalism resulting from newspaper layoffs, a problem for which his company bears no small responsibility

“Galleria escalator stalls, dozens of riders trapped”

—Headline in Not The Los Angeles Times, a parody website

[Veteran journalists told us that if] young people were leaving, it was because they were wimps, and good riddance.”

—Vickey Williams of Northwestern University’s Media Management Center on the challenges of changing newsroom culture

“The inessentialness of copy editors is underscored by the advent of sophisticated spellchecking systems which have introduced a hole new level of error-free proofreading. No longer can we say that the editor’s penis mightier than the sword.”

—Washington Post columnist Gene Weingarten, in playful response to executives’ comments that the paper needed fewer copy editors

“A prototypical publisher selling 250,000 newspapers on each of the 365 days of the year adds nearly 28,000 tons of carbon dioxide to the atmosphere. That’s roughly equivalent to the CO2 spewed by almost 3,700 Ford Explorers being driven 10,000 miles apiece per year.”

—Alan Mutter, a journalist and former CEO who admits to owning an SUV

“At least with Tribune, you could have a rational fight; they never shouted obscenities at me. I wish somebody could tell [Sam Zell] that he’s presiding over important newspapers and that sounding like a knucklehead won’t work in the newspaper business.”

—Dean Baquet, former Los Angeles Times editor-in-chief, in an interview with LAMag.com

“In yesterday’s column about badminton, I misspelled the name of Guatemalan player Kevin Cordon. I apologize. In my defense, I want to note that in the same column I correctly spelled Prapawadee Jaroenrattanatarak, Poompat Sapkulchananart and Porntip Buranapraseatsuk. So by the time I got to Kevin Cordon, my fingers were exhausted.”

–Humorist Dave Barry, quoted in RegretTheError.com

We sorted through our 147 entries of 2008 to come up with the stories that surprised us, delighted us or made us shake our heads in disbelief. We’re presenting them as a series of posts entries over four days. Tomorrow we’ll conclude with our favorite quotes of the year.

Creative Solutions

A group of Ohio newspapers got together to share stories and even reporting assignments in a novel response to cost pressure. The Cleveland Plain Dealer, Columbus Dispatch, Toledo Blade, Cincinnati Enquirer and Akron Beacon Journal now post all their daily stories on a private website where editors can pick whatever they want and publish it in their own pages. The tactic has now been tested in several other parts of the US.

Pasadena Now, a small weekly, fired its entire editorial staff and farmed out coverage to a staff of Indian writers recruited on Craigslist. Publisher James McPherson pays the virtual staff about $7.50 per 1,000 words, compared to the $30,000 to $40,000 he was paying each reporter annually. The Indian writers “report” via telephones, web harvesting and webcams, with support and guidance from McPherson and his wife.

Neighborsgo.com, a spinoff of the Dallas Morning News, uses a social network to anchor a community journalism initiative. Local residents create profiles and post information about their interests, and some celebrities are emerging, like the Helpless Housewife (right). Every week, editors dig through content submitted by citizens and produce 18 local print editions.

Research and Markets released a report entitled “Offshoring By US Newspaper Publishers” that sees big growth in the newspaper outsourcing industry, particularly in India. About 2,300 people were employed offshore to serve US and UK newspaper companies in July, 2008, the report said. However, “The total offshore opportunity from newspaper publishers is estimated to be approximately $3.5 billion,” in the long run.

A team of enterprising publishers in the UK produced a four-page newspaper created entirely by hand. “Every word and every image and every mark of any kind in The Manual was drawn by a team of volunteers – mostly illustrators,” the website says. The group foresees a day when “handmade qualities can transform newspapers from ‘junk’ to collectable.

The Politico, a Washington-based boutique news service that specializes in Capitol Hill coverage, signed up more than 100 newspapers for its news service, including the Arizona Republic, Des Moines Register, Atlanta Journal-Constitution and Philadelphia Inquirer. Launched in early 2007, the specialized print/online/broadcast hybrid focuses exclusively on politics, is reportedly profitable and has become a must-read for political junkies.

CNN announced plans to challenge the Associated Press with its own wire service. The AP suffered subscriber flight in 2008 as several large newspapers have canceled their subscriptions, claiming the price is too high.

The Chicago Sun-Times offered 44 copies of its Nov. 5 front page on eBay as a “museum wrap fine art giclée print on canvas.” Nov. 5 was a rare bright spot in an otherwise disastrous year. The historic election created a brief surge of demand and many publishers sold out that day’s issue.

The Sun-Times had another idea to attract readers: It brought back dead columnists. “Vintage” columns written by Chicago institution Mike Royko began appearing in August, some 11 years after Royko died. The first one was about a Windy City citizen who was also dead.

Brave New World

Huffington Post employee Mayhill Fowler captured a three-minute rant by Bill Clinton about a Vanity Fair report that questioned the propriety of his post-presidential behavior. Fowler didn’t identify herself as a reporter but said she had the video camera in plain view while Clinton was talking. The LA Times account describes the recorder as “candy bar-sized” and Clinton claims to have not known he was being recorded.

CNN reported on a Yahoo employee who Twittered his layoff in February and gained an eager following. Ryan Kuder eventually took a job from the hundreds of leads contributed by his followers . His story was covered on prominent blogs and in mainstream media.

Talking Points Memo was awarded a George Polk Award for its coverage of the firing of eight United States attorneys. The New York Times account pointed to the difference between the new breed of online reporting and traditional print journalism. Chief among them is the involvement of readers in the process. Editor Joshua Micah Marshall has even been known to give “assignments” to his readers, asking them to comb through official documents.

Gutsy Moves

Monitor Editor John Yemma

Editor & Publisher columnist Steve Outing cancelled his newspaper subscription and wrote about it at length, invoking a deluge of scorn from newspaper vets. Outing stuck to his guns.

Tampa Tribune intern Jessica DaSilva documented a contentious meeting about the need for change at the newspaper and posted the editor-in-chief’s comments on her blog. The young woman endured a torrent of abuse from veteran journalists, including many personal insults, as more than 200 comments piled up on her blog. The incident dramatized the industry’s difficulty in dealing with change.

Land of the Rising Seniors

Newspaper sales in Japan are 2.5 times those of the US as a percentage of the population and journalist layoffs are all but unheard of. The reason: the population is declining. The percentage of children 14 and younger is the lowest it’s been in 100 years and the overall population of Japan is expected to decline by a third over the next 50 years. The lack of a new generation of Web-savvy upstarts means papers have less pressure to move online and figure out how to serve a new audience.

Just Plain Fun

The Onion offered a tutorial in how to write a provocative magazine cover line (right).

A tongue-in-cheek investigation by IowaHawk rounded up recent incidents of criminal activity by journalists and concluded that newsrooms are at risk of becoming a “killing field.” Of course, the reporters could have conducted the exercise for lawyers, accountants or plumbers and come to the same conclusion. The best line was from Glenn Reynolds of Instapundit: “I think it’s unfair to single out journalists as thieves, or violent, or drunks, or child abusers. Sometimes they’re all of the above.” The chart is amusing, too.

We sorted through our 147 entries of 2008 to come up with the stories that surprised us, delighted us or made us shake our heads in disbelief. We’ll present them as a series of posts over the next few days in hopes that you’ll find them to be as memorable as we did. Happy New Year!
Telling Tales
Gallup research showed that 31% of US adults now consult the Internet daily for news while 40% read a local newspaper. The trend lines look to cross sometime in the next five years, making the Internet the most important news source among US adults. Only 22% of adults under 30 read a local newspaper daily, Gallup reported. The average daily newspaper reader is now 56 years old.

Ted Gup, a journalism professor at Case Western, lamented his students’ appalling ignorance of basic current events. “Nearly half of a recent class could not name a single country that bordered Israel. In an introductory journalism class, 11 of 18 students could not name what country Kabul was in, although we have been at war there for half a decade. Last fall only one in 21 students could name the U.S. secretary of defense. Given a list of four countries – China, Cuba, India, and Japan – not one of those same 21 students could identify India and Japan as democracies.

Rick Redfern, the resident ink-stained wretch of the Doonesbury comic strip for more than 30 years, decided to accept a buyout

The Wall Street Journal’s paid subscription model has often been held up as an example of how newspapers need to buck the trend toward free content. However, in April, website Salon revealed how to get full access to The Wall Street Journal for free instead of paying $79 annually. It turns out the Journal creates a shadow version of its web content for the express purpose of getting traffic from Google, which can’t see around firewalls.

In May, Mike Koehler launched Praying for Papers, a blog whose stated purpose was to encourage “anyone who is touched by this shift in our industry to include it each day in their prayer life.” On July 11, the author said he was going on vacation. The blog hasn’t been updated since.

Shortly before the stock market meltdown, Valleywag observed that the combined wealth of Google’s co-founders exceeded the value of the entire US newspaper industry

The fifth annual “State of the American News Media” study by the Project for Excellence in Journalism found that as newspapers cut staff, they actually concentrated their remaining resources in fewer places. “You have in a sense more reporters across more outlets, but they are all covering a fairly narrow band of stories,” the project’s director told Reuters.

Jolly Journalist debuted in June, asserting that “these are the most exciting times to work in journalism. We want to collect your reasons why this is the case.” It hasn’t been updated since Oct. 13.

Watchdogs

Cost-cutting is robbing the public of an American institution – the editorial cartoonist. “In the past three years, around three dozen artists have been laid off, forced to take buyouts or to retire, according to the Association of American Editorial Cartoonists,” said an Associated Press piece.

The ombudsman, a staff watchdog position that became popular in the 1970s, turned into an expensive luxury. “Over the past year, reader representatives/public editors/reader advocates/ombudsmen have been reassigned, retired or bought out at the Baltimore Sun, the Minneapolis Star Tribune, the Orlando Sentinel, the Fort Worth Star-Telegram and the Palm Beach Post,” wrote Karen Hunter, the Hartford Courant‘s reader representative, in a farewell column that has since been pulled off the site.

Erica Smith vividly documented the industry’s massive layoffs using a Google Maps mashup.

The Gannett Blog became a major source of news about job cuts at the company. Only the site isn’t run by Gannett but rather by a former employee, Jim Hopkins. The New York Times cited Gannett as a poster child of corporate cluelessness because it refuses to pay attention to the blog, despite the fact that Hopkins’ posts can draw hundreds of comments. Hopkins assembled field reports from employees at more than 70 newspapers about recent layoffs, making the blog the most comprehensive source of news about that topic.

Clue, Please

The American Press Institute held an executive confab in Reston, Va. In November in which industry honchos heard that the newspaper industry is in a full-blown crisis. All but one of the public companies in the room was at real risk of bankruptcy, a summary said. Session leader James Shein said one of the purposes of the meeting was to “illuminate for newspaper industry leaders the urgency of their situation.” Executives agreed to meet again in six months.

The Newspaper Association of America continues to run these strange ads with their baffling images, apparently thinking it’s doing some good. What the heck is that thing?

The executive editor of the Raleigh News & Observer wrote a stirring column about the growth of the newspaper’s overall print and online circulation. Underscoring the importance of the online product and readership trends in that direction, he cited several online sources, but didn’t link to any of them.

Sincerest Form of Flattery

Web wunderkind Marc Andreessen announced a New York Times death watch.
And Advertising Age launched a series of articles intended to “look at the thought leaders in the industry, their attempts to leave the past — and even formats — behind and their strategies for finding new business models. The series title: The Newspaper Death Watch.

We sorted through our 147 entries of 2008 to come up with the stories that surprised us, delighted us or made us shake our heads in disbelief. We’ll present them as a series of posts over the next few days in hopes that you’ll find them to be as memorable as we did. Happy New Year!

Management Ineptitude

The Cleveland Plain Dealer wrote a case history for the how not to handle a layoff. Staff were told not to come in to work until after 9:30 a.m. on Dec. 2. Laid-off employees were notified by phone. Those who didn’t get a call were expected to promptly come to the office. Management then arranged for laid-off employees to clean out their desks on a Saturday morning and to enter the building from the back where they wouldn’t attract the attention.

 
In March, Tribune Co. CEO Sam Zell was caught on video telling one of his reporter employees, “F**k you.” He muttered the comment under his breath at the end of a response to an Orlando Sentinel’s reporter’s pointed question about how newspapers can thrive by giving readers what they want when all readers want is stories about puppy dogs.
 

The Chinese Daily News had to pay $5.2 million for allegedly forcing reporters to file five stories a day and to rush between news conferences and interviews. Ad quotas were unreasonably high and production workers were forced to labor nonstop. Reporters testified that they had to work six days a week, 12 hours a day, but weren’t able to complain because of pressure and the culture of intimidation.

Several publishers chose Valentine’s Day to announce major layoffs.

The Denver alternative weekly Westword reported that staff members of the Longmont, Colo. Times-Call newspaper were invited to the publisher’s holiday party – as parking valets. Staffers reportedly earned what they got for their day jobs, only they spent their time parking the cars of rich people in attendance.

Los Angeles Times publisher David Hiller hatched a plan to move the paper’s monthly magazine completely under the control of the advertising department without telling the newspaper’s editor. Hiller reportedly hired a new editor and planned to replace the magazine’s entire nine-person editorial staff without telling anyone on the editorial side. Hiller resigned a few weeks later.

In June, Tribune Co. launched a campaign to measure journalist productivity by the number of column inches of copy they produced. Noting that Los Angeles Times reporters turn out about one-sixth as many column inches as their counterparts in Hartford or Baltimore, Tribune COO Randy Michaels issued a warning to writers and editors. “When you get into the individuals, you find out that you can eliminate a fair number of people while eliminating not very much content,” he said.

Slate’s Jack Shafer analyzed the use of anonymous sources by major newspapers. He created a few Google Alerts to look for words like “anonymity” and then looked at the stories to see if the secrecy was warranted. In most cases, he found that that the anonymous quotes were either obvious, self-serving or contributed nothing to the story.

Killing the Host

The Newspaper Guild in Honolulu printed up 100,000 cards for readers can send in to cancel their subscriptions in event of a strike. The thinking was that it was better to take down the Advertiser and cause a whole lot more people to lose their jobs than to have 54 employees treated unfairly.

The union at the Los Angeles Times mounted a campaign to drive out of existence the dwindling number of businesses that advertised in the paper because it said the Times wouldn’t negotiate in good faith.

Oh-Oh

A Google search bot triggered a 75% plunge in shares of United Airlines over the weekend when it assigned a Sept. 6, 2008 date to a six-year-old story about United Airlines’ bankruptcy filing.

Editors at the Wine Spectator bestowed a coveted Award of Excellence on a non-existent restaurant. The prank was dreamed up by Robin Goldstein, who concocted a fake website with recipes from an Italian cookbook and a reserve wine list “largely chosen from among some of the lowest-scoring Italian wines in Wine Spectator over the past few decades.”

The Tampa Bay Tribune quickly backtracked on a series of design changes as some 300 readers canceled subscriptions and more than 3,000 called or wrote e-mails of protest. “Turns out, we had really disrupted the way people communicate with each other in the morning,” said executive editor Janet Coats.

The San Francisco Examiner caught a delivery man for the Palo Alto Daily Post apparently stealing copies of the Examiner as he delivered his own newspaper. When confronted and asked to open his trunk, the man had more than 1,000 copies of the rival newspaper stashed there.

The Chicago Sun-Times ran a contest for the best reader-submitted video opposing Sam Zell’s proposal to sell naming rights to the Chicago Cubs. The winner was a college student who interns at the rival Tribune. The Trib had some fun with winning its rival’s contest in this clip, which also includes the winning video.

Craig Silverman

Just before the holiday, I called up Craig Silverman to talk about mistakes. Silverman, a 31-year-old Canadian journalist, has made quite a name for himself by documenting the errors that print publishers make and how and whether they correct them. I recorded the 40-minute phone call and you can listen to it here.

Error-spotting seems an odd avocation, but that’s what makes RegretTheError.com so notable. Before Craig Silverman came along and started doing this in 2004, nobody else was paying attention. On the day he launched RegretTheError in October of that year, “Thousands of people showed up. I didn’t expect the site would catch on as quickly as it did.”

Silverman spends an hour or two a day scanning the Nexis online news database and an assortment of corrections pages at notable journals. He’s selective in what he pulls out for the blog, though. “I see hundreds of corrections a day and post maybe five,” he says. His selections are often funny, extreme or illustrative of a common mistake.

Because of an editor’s error, a photograph of Neil Diamond was incorrectly used in a review of Neil Young at the DCU Center in Worcester in Monday’s Telegram & Gazette – Worcester Telegram & Gazette, Dec. 19.

RegretTheError has changed Silverman’s career. He’s written a book on the topic (the website of which features a corrections page) and just finished co-authoring a second one on an unrelated topic called Mafiaboy. It’s due to be released in the US in 2009.

Craig Silverman just wants to help. He has resisted the temptation to make RegretTheError’s tone mocking or rude. “It would be easy to be mean and nasty, but people don’t want to read that,” he told me. The voice is “helpful, constructive with a little bit of a sense of humor.” As a result, reaction among journalists has been unanimously positive. “There hasn’t been a word of negativity,” he said. As a result, many of the major news organizations in North America have contacted him for help in improving their own corrections policies or in formulating new ones to accommodate the flood of new information being posted on their own blogs or submitted by readers.

Untamed Beast

The vast majority of errors in newspapers and magazines are never corrected or even reported. Research has established that about 80% of published articles contain errors, but most aren’t fixed because they either aren’t worth reporting or journals fail to make it easy for readers to report them.

It’s the latter problem that rubs Silverman raw. “We’re failing in our contract to do our best as journalists,” he said, citing a recent University of Oregon study that found that only about 2% of newspaper errors are corrected. “In our newsrooms, we often don’t have a culture of wanting to get errors corrected. People keep their mouths shut because they don’t want to get in trouble.”

“In yesterday’s column about badminton, I misspelled the name of Guatemalan player Kevin Cordon. I apologize. In my defense, I want to note that in the same column I correctly spelled Prapawadee Jaroenrattanatarak, Poompat Sapkulchananart and Porntip Buranapraseatsuk. So by the time I got to Kevin Cordon, my fingers were exhausted.” – Miami Herald, Aug. 19.

Is the problem getting worse? Because of all the recent layoffs, “We’re in a pretty low period right now,” he said. “At a certain point we’re not going to be able to do even the base level of control we did before.” Part of the problem is that quality control systems are rooted in an old paradigm in which reporters and editors have been separated from their readers. Because readers spot the vast majority of errors, this disconnect has prevented most from being reported.

Publishers could improve their overall level of fact-checking if they involved readers in the process, perhaps by rewarding them for good error-spotting. However, most publishers resist having their flaws highlighted in this way. “Instead of creating a better process, we’re decimating the one we already have,” Silverman said.

Some media are innovating. The website Slate, for example, notes original errors in links from the corrected passages. Reuters maintains a blog called Good, Bad, and Ugly that documents its own gaffes. However, the sheer volume of information being reported online is challenging conventional remediation tactics.

Misinformation Online

One new problem is the difficulty of incorporating consumer-generated reporting into mainstream media content on a timely basis while still checking important facts. In October, Apple Computer stock fell more than 5% because of news on CNN’s ireport.com that CEO Steve Jobs had suffered a heart attack. The New York Times documented this and other transgressions in an article titled Spinning a Web of Lies at Digital Speed.

However, even as the Web has helped to spread falsehood, it has also helped to perpetuate an unprecedented level of accountability. Silverman noted that the journalists who broke the Watergate story in 1973 actually made a few significant errors along the way. Had the Washington Post been subject to the level of scrutiny that newspapers receive today from political bloggers, it’s possible that Woodward and Bernstein would never have been able to overcome such mistakes and break the biggest story of the last 50 years.

“In our November 3 issue, we suggested that the actress Kelly Reilly was having a relationship with Guy Ritchie. It is now clear from the further information that we have received that Ms. Reilly is engaged and there is and has been no romantic relationship between Kelly Reilly and Guy Ritchie. We apologize for any embarrassment caused to Ms. Reilly in our original report.” – Us, Nov. 12.

I asked Silverman what were his favorite errors of the last four years. There are too many candidates to choose just one, he said, but a favorite is this year’s front page from New Hampshire’s Valley News, in which the paper misspelled its own name in the logo. He also likes this year’s Associated Press gaffe in which the news service described Senator Joseph Lieberman as a former “Democratic vice-presidential prick.”

Spell checkers can actually be part of the problem. As useful as these error-correcting programs are, they can run rampant when allowed to operate, er, unchecked. Two years ago, a spell-checker replaced a reference to “queen bee” with the name of the British monarch, enabling led Reuters to report that “Queen Elizabeth has 10 times the lifespan of workers and lays up to 2,000 eggs a day.”  Just this week, a spell-checker at the Canadian Press changed the name of Supreme Court judge Michel Bastarache to “Michel Bastard.”

There are thousands of examples like these at RegretTheError, and thanks to Craig Silverman, the journalism profession has someone to identify and report them.

Listen to the interview: [audio:Regret_the_Error_Silverman.mp3]

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.”

Gallup has issued its bi-annual report on news consumption trends, and all mainstream media are down with the exception of cable news and the Internet. The most striking finding is the percentage of people who say they consult the Internet for news every day: up 9% in two years to 31% today. The percentage has more than doubled in the last five years. Meanwhile, the percentage of people who consult a local newspaper every day has dropped from 54% in 1999 to 40% today.

For newspapers, the demographics are a horror show:

% of respondents who get their news every day from each source, by age group:

The statistics point to a continuing trend that has been hammering the newspaper industry: Young people don’t read newspapers.  Meanwhile, Internet consumption is up across the board as people increasingly demand that news be delivered whenever they want it and wherever they happen to be.

Glimmer of Hope at the Rocky

E.W. Scripps says “a handful” of people have asked to look at the books of the Rocky Mountain News, a Denver institution that the company recently put up for sale. A spokesman said no one has yet offered to buy the troubled newspaper and that there’s no guarantee that the people who have asked to see the financials will be granted that access. However, the tire-kicking does indicate that not all hope is lost.  Employees at the Rocky are trying to rally readers to their cause.  A few of them have launched a site called I Want My Rocky to highlight the paper’s importance to the community and statements of support that have come in from readers. Thank God for WordPress.

Meanwhile, MediaNews CEO and Denver Post publisher Dean Singleton is wasting no time in taking advantage of his possible monopoly position. He’s told unions to reopen negotiations with an eye toward cutting $20 million in costs. The request came a day after Moody’s downgraded almost $1 billion of MediaNews debt out of fear of default. The Newspaper Guild represents 730 employees at The Post and the agency that administers the Post’s joint operating agreement with the Rocky.

Miscellany

The Atlanta Journal-Constitution is making its third round of job cuts in two years, eliminating 56 full-time and 100 part-time jobs in the circulation unit. The paper’s circulation has dropped 13.6 percent in the last year, according to the Audit Bureau of Control.

McClatchy’s November ad revenues were down 22% on an eye-popping 41% decline in classified advertising. E&P has the ugly breakdown: automotive advertising down 42.9%; real estate down 45.8%; and employment down 58.6%. We can’t remember any publisher reporting this kind of catastrophe over the last two years.  Other trauma: retail ad revenue off 17.6%, national advertising down 33.2% and direct marketing off 16.8%. CEO Pat Talamantes said the declines were “in line with recent ad trends,” which has us wondering what other publishers are going to report.

The Tampa Tribune is blaming a rival newspaper for spreading rumors that it plans to exit the print business.  In a co-bylined Sunday editorial, executive editor Janet Coats and publisher Denise Palmer said the rumors originated in the subscription sales department of competitor St. Petersburg Times. Coats and Palmer said the Times was taking advantage of its status as a privately owned company to position recent layoff reports at the Tribune as evidence that the paper would soon cease print operations.  The rumor was also reported in the Tallahassee Democrat. Going on the offensive, Coats and Palmer claimed that the Tribune actually published more editorial pages than its rival in the first 10 days of December and that its willingness to report news of its own layoffs was in the best journalistic tradition that its rival has so far skirted.  The publisher of the St. Petersburg Times countered, “Our circulation is growing nicely, and we’re very happy to have many readers in the Tampa Bay region.”

The New York Times‘s David Carr says newspapers have found an unlikely ally in besieged Illinois Governor Rod Blagojevich. According to a criminal complaint filed by the United States attorney, Blagojevich was obsessed with negative coverage by the Chicago Tribune, which has been campaigning for his impeachment.  The governor allegedly threatened to withhold financial support for the Tribune unless the newspaper fired certain editorial writers. There is no evidence that the newspaper complied.  Carr says the revelations about the Blagojevich’s criminal activities come at an odd time, given that the Tribune Company declared bankruptcy just one day before the scandal broke. “In a city and state where corruption is knit into the political fabric, a solvent daily paper would seem to be a civic necessity,” Carr writes. “But if another governor goes bad, what if the local paper were too diminished to do the job?”

The Financial Times profiles, New York Times Co. Chairman Arthur Sulzberger Jr., questioning whether he has the will and stamina to persevere through the industry downturn. “If the future of America’s newspaper business rests on one individual, it is on the 57-year-old former reporter,” the FT says. “Yet the fourth-generation family proprietor, who became publisher in 1992, is looking increasingly besieged.” You can say that again.  The Times Company has over $1 billion in debt. It has been forced to consider asset sales and taking on even more debt to meet its obligations. The company was forced to cut its dividend by 74% last month, which the FT notes is “equivalent to [Sulzberger] asking his relatives to take an $18 million-a-year pay cut.” Meanwhile, Rupert Murdoch has made no bones about his intentions to take on the Times directly. All this is a heavy burden to bear, the story says, noting that Sulzberger’s legendary father, Arthur Ochs “Punch” Sulzberger, displayed  backbone that has so far not been evident in his offspring.

More bad news for the Associated Press.  The UK’s Guardian newspaper is reporting that Reuters and the Capitol Hill journalism boutique The Politico are teaming up. “The initiative will mean that more than 120 Washington-based journalists will be reporting full-time for Reuters and Politico by the time president-elect Barack Obama takes office in January,” says the Guardian, which has telegraphed its own intentions to enter in the US market. The Politico has been one of the few bright spots in American journalism this year, having signed up more than 100 newspapers for its Washington news service.  Meanwhile, the AP has been under siege for its controversial fee structure and has recently lost some prominent subscribers.