By paulgillin | August 8, 2008 - 7:53 am - Posted in Fake News, Google, Hyper-local

Nine summers ago, I left a job running a 75-person newsroom to become the sixth employee at an Internet startup. That was the thing to do in the late 90s, when stock options were plentiful and the Internet promised boundless reward. By 2002, that had all changed, and many dot-com entrepreneurs were slinking back to their old employers, asking if they could have their jobs back.

That didn’t happen to me, though. The media startup I joined, TechTarget, actually grew through the technology nuclear winter. It went public last year (although the stock has recently been sucked down by the media stock malaise) and now employs about 600 people.

One thing we did early on that challenged conventional wisdom was to tear down walls between advertising and editorial. At previous employers, it was accepted that sales people and editors not only never talked, they were often openly hostile toward each other. My new organization didn’t have cultural barriers like that, so we experimented with a more collegial process.

Ad sales and editorial people sat together in biweekly meetings to discuss story budgets and the sales climate. Things got pretty testy sometimes, but the debate was open and honest. Instead of calling people names behind their backs, each side shared stories about its successes and challenges. Over time, the relationships grew to be, if not chummy, at least respectful.

Once people respected each other, they began to work collaboratively. Management urged along the process by putting in place a bonus plan that rewarded everyone for a business unit’s financial success. Sales reps and editors openly batted around ideas for products that would have both advertiser and reader appeal. They came up with a lot of innovations. It turned out that collaborating didn’t mean infringing. Boundaries were still respected, but conversation wasn’t prohibited. Imagine that.

It was my job as chief editor to insure that the quality and integrity of the editorial product weren’t compromised. In five years in that role, I never once felt that my principles were violated. If ever there was a challenge, I appealed to the CEO, who always came down on the side of editorial quality.

Incidentally, a handful of people switched groups over these five years, including a few editors who realized their true calling was in sales.

This experience came to mind today reading Chris O’Brien’s Five Steps to Foster Innovation in the Newsroom. Among them: “Find new ways to get people from different areas to work together. This includes editorial and business side (Sorry, but it’s long past time to kill this sacred cow).”

Amen to that. Stick a fork in that well-done bovine. Building moats between the revenue side and the product side was excusable when profits were healthy, but now is the time to discard assumptions. Ad sales people aren’t contagious and talking with them won’t make you compromise your principles. If it does, then you have bigger problems.

Traditionalists are still resistant. Over at the San Francisco Chronicle, whose future is probably less secure than any major metro daily’s, “real journalists” are appalled about the decision to give former mayor Willie Brown a column because of Brown’s history of alleged self-dealing. People who aren’t disgusted by Brown’s column “are people who don’t put journalism first,” says one insider.

Puh-leeze. Giving a popular ex-mayor a column sounds like a pretty interesting way to spur circulation. And if the purists have a problem with that, have it out in public. Let the Chron columnists and bloggers debate the issue in front of everyone instead of grousing in the men’s room. Too many editors continue to use the shield of journalistic integrity to duck new ideas and then complain to each other instead of airing their opinions in public.

Newspapers need strong chief editors who support collaboration. They also need publishers who will rally to the side of quality journalism when a dispute occurs. Reporters and editors need to get over the old biases that never made much sense to begin with. I can’t think of another industry in which the people who sell the product are at such odds with the people who make the product. If you can make a persuasive case for maintaining this rigid separation, please contribute to the comments section. I just don’t see it.

The Futility of Corporate Secrecy

There’s an interesting discussion going on over at the Gannett Blog. On Wednesday, Editor Jim Hopkins picked up on an item in one of the Gannett titles that said corporate finance and accounting operations were being consolidated and moved to Indianapolis. He suggested that recent cutbacks at other Gannett holdings point to layoffs of as many as 2,300 people, or about 5% of Gannett’s workforce.

Blogs are a petrie dish for speculation, so when Hopkins asked reader for input, they responded. Gannett folk from Asheville, Detroit, Louisville and elsewhere are jumping in with their local version of layoff rumors. It sounds like something’s coming, and it isn’t good. Absent from the discussion is Gannett, which certainly should be aware of this popular site. If the rumors are false, why isn’t someone from corporate stepping in and correcting them? Perhaps it’s because the rumors are true. Absent Gannett’s voice, people will tend to believe that silence is confirmation.

Go East, Young Journo

Media markets in India are booming, thanks to the surging economy and the growing middle class, and some discouraged US journalists are picking up and moving east. New dailies and magazines are popping up every week and they’re hiring. Some TV stations are paying ex-print reporters up to $180,000 to go on-air, and that kind of money goes a long way in India. Five recent graduates of the Columbia University Graduate School of Journalism recently joined the Hindustan Times and say the experience has been great and the opportunity is greater. One expat says he turns down two or three assignments a month. “I’d like to see more freelancers move to India. There are too many stories to cover and just not enough time to get to them all.’

Miscellany

San Diegans may have reason for cautious optimism. The owner of a local TV station says he may make a bid for the distressed Union-Tribune. Michael D. McKinnon was a print publisher back in the 50s and 60s and he doesn’t want to see a local institution in the hands of an outsider.


Just because it’s user-generated, doesn’t mean it’s profitable. In May, we told you about Everywhere and JPG, two new magazines from 8020 Media that break the mold by deriving most of their content from readers. Well, it turns out that Everywhere wasn’t everywhere with advertisers, so 8020 has shuttered it after only four issues in order to focus on JPG. Management prefers to use the term “on hold” and said it’s still committed to the model. Interesting side note: only two editors lost their jobs.


While owner Blethen Maine Newspapers continues to seek a buyer, the Portland Press Herald/Maine Sunday Telegram bleeds. An unspecified number of people have been laid off in the fourth round of cuts in a year. The publisher is also adjusting trim size and consolidating some sections to save money on paper. Employee solidarity helped mitigate the pain; workers volunteered to take time off so that jobs wouldn’t be eliminated.


Management at the Los Angeles Daily News apparently thought that one way to boost sagging morale would be to implement a dress code. Employees didn’t agree. The idea has been scotched.


The McPherson (Kan.) Sentinel becomes the latest daily to eliminate its Monday edition. It will publish five days a week. Mondays are notoriously poor for ad sales.


James Cogan says it’s a great time to get into the newspaper business because chaos is a good time for innovation. We wish there were more people with his positive attitude.


Charles Apple has a practical, whimsical and uplifting essay on advice for the recently laid-off. Our favorite: “Your editor didn’t want to lay you off. Seriously. Make him/her a reference. Even if you have to apologize for throwing that potted plant during your HR interview.”

Comments Off on Time to Tear Down Those Walls
By paulgillin | July 28, 2008 - 9:35 am - Posted in Facebook, Fake News, Hyper-local

The newspaper industry needs to make radical changes, but neither the management nor the culture in a typical newsroom is conducive to much change at all, according to an organizational behavior specialist.

Mark Glaser interviews Vickey Williams, director of the Digital Workforce Initiative in the Media Management Center at Northwestern University and author of All Eyes Forward, a report about the challenges in changing newsroom culture.

Bottom line: Williams believes most newsrooms are still forcing young journalists into the mold that existed 20 years ago: a top-down structure in which decisions are made at the top and underlings are expected to execute them without question. Characterizing many newsrooms as “aggressive-defensive workplaces,” she finds structural impediments to the adoption of digital tools, suspicion of online media and organizational resistance to any ideas that don’t come from the top.

What’s most troubling about this behavior is that it’s sending young journalists for the doors, Williams says. They don’t believe their ideas are getting a fair hearing and they don’t want to work for organizations that are so insular.

Glaser has a transcipt of his interview with Williams. A few quotes:

  • “Resistance [to change] is going down. I am not at all convinced that we know how to replace that with something constructive. So in short, we don’t fight it as hard and as loudly” the fact that we have to change” but we don’t know what to do instead.”
  • “Journalists need to get more business savvy” and they will get more business savvy one way or the other. If they become a victim of the cutbacks, then they will be looking at making their own living and be worried about income and attracting advertisers to their website. So getting more business savvy is only a plus.”
  • “We asked people what they thought about the data [showing that young people wanted to leave], and the veterans even wanted to argue down that the data was correct. And if it was correct and young people were leaving, it was because they were wimps, and good riddance.”
  • On creating a change-oriented culture: “For years, we have been an industry with our panels and task forces and we’ve generated lots of reports that have gathered dust on the corners of bosses’ desks, and people don’t have the energy for that anymore.”
  • “I agree with Jeff Jarvis that it would be a very good gamble to allow Millennials to start up companies or products. But I can’t think of a single media company where that would be allowed to happen on a broad scale.”

Williams’ conclusions are sobering. There’s a lot of talk about change and what newspapers need to do to save themselves these days .There are many great ideas for reinvention, although there is no avoiding a lot of pain in the process. Ideas are just one part of the picture, though. There needs to be a culture in place that’s willing to accept change. Newspapers don’t have a lot going for them in this area.

Newspapers have done business more or less the same way for about 150 years.Few industries on earth can say that. The newspaper business has been historically stable, profitable and predictable. It’s boring, but it makes a lot of money. In the 1970s and 80s, some titles enjoyed renewal rates of 90%. In addition, consolidation during the last 50 years has left most cities with only one or two newspapers. Monopolies and duopolies usually suck at innovation. When was the last time your electric company did something clever?

Williams is right that newsroom culture rewards obedience. After all, you need structure and process to produce a fresh product every 24 hours. The hierarchical organization of most newsrooms is appropriate for what they’ve been asked to do for many years. Now you’ve got a situation in which authority needs to be openly questioned. Do you suppose a 30-year veteran city editor is going to cozy up to that idea? Cultures don’t change until people change, and organizations that are run by old guys who have worked their way up through the ranks are the least change-oriented of all.

This is why it’s so hard to be optimistic about the future of newspapers. Ideas can’t flourish without a nurturing culture. Newspapers exist in a culture that is so change-averse that adding color to the front page is considered a breakthrough. When your value is defined by process rather than agility, it’s tough to suddenly be agile.

Maybe I’m being too cynical. Please share your views. Is there a way for this industry to reinvent itself without blowing itself up first?

Miscellany

  • Perhaps the savior will be cell phones. The New York Times reports that Verve wireless has signed up 4,000 papers and 140 publishers to deliver news via its wireless service. Research says 40 million people use their phones to go online, and Verve’s service can push news alerts, local stories and geotargeted advertising at those customers, most of whom are probably driving at the time. The CEO of Verve is a former Pulitzer Prize-winning reporter, by the way.
  • The Santa Fe New Mexican is cutting 16.5 jobs, or about 7% of its workforce. Ten of those lost jobs are in the newsroom. The biggest culprit is real estate advertising, which has all but disappeared.
  • E.W. Scripps may write down the value of its newspaper and local broadcast holdings in the third quarter, the CEO said on the company’s earnings call. Scripps carved out the troubled businesses into their own company earlier this year so they wouldn’t drag on the more lucrative TV and online businesses.
  • Speaking of Scripps, columnist Jay Ambrose scolds readers for not appreciating all the great things newspapers deliver. “Perhaps the Internet and innovative editors will come up with ways to preserve the distinguishing value of newspapers,” he writes. “It would help if more citizens understood this value themselves.” Good going, Jay. Blame those customers.

By paulgillin | July 25, 2008 - 6:45 am - Posted in Facebook, Google

It’s the fourth week after the end of the quarter and you know what that means: earnings time. Quit now if you have a weak stomach. Here’s something fun to read instead. Otherwise, onward:

  • McClatchy profits fell 50% on a 15.6% decline in revenue.  CEO Gary Pruitt highlighted gains in online advertising but said he doesn’t expect overall ad revenues to recover any time soon. The company expects to cut staff by 10% over the next year. Pruitt boasted that McClatchy realized two years ago that online advertising isn’t just an upsell to print advertising and that Web-only ads now make up 50% of the online business. We wonder why it took until 2006 for this stroke of brilliance to occur.
  • The news was a little better at Lee Enterprises, which reported only a 10% drop in  print revenue.  More troubling, though, was that online revenue was off 9%. Although the decline in online business appears to be unique to Lee for the moment, other publishers have recently reported that online sales growth is slowing. Most forecasters still predict the overall online ad market to grow in the 20% to 25% range this year, so anything below that is lagging.
  • Bringing up the rear, E.W. Scripps reported similar results: profits down 47.5% on a 13% revenue decline. The company set its broadcast and online division free three weeks ago so it wouldn’t be dragged down by the implosion of the newspaper business.

The continuing profit slide, along with a bleak outlook for the future, may force some big publishers to cut dividends, says The Wall Street Journal. This would be no trivial decision, since  some of the biggest companies are owned by families that depend on the dividends for income. But  publishers may have no choice. If there are no profits, there can be no dividends, and falling stock prices have made existing payouts an onerous burden.


The San Diego Union-Tribune is for sale. Owner Copley press is “exploring strategic options” and we know what that means. The Union-Tribune hit the wall before most other major metro dailies, announcing a big layoff in January on the heels of nearly a 20% drop in circulation. the paper is the only asset Copley has. However, it’s a very big newspaper, the 21st largest in the US by circulation. The parent company claims its products reach almost 60% of area residents each week. But we suppose big doesn’t count for much these days. There’s speculation that A.H. Belo may find the Union-Tribune attractive and pick it up for pennies on the dollar if it can combine operations with another San Diego-area property it owns.

Miscellany

Writing in Editor & Publisher, Steve Outing issues a call for newspapers to start integrating user-submitted content into their products. Inviting reader comments isn’t enough, he says. Online coverage should include relevant photos, advice, observations and comments from interested and interesting parties. And we’re not talking Wikipedia here; editors need to separate the good stuff from the junk, but they still have to publish the junk somewhere in order to get get people to participate (TG for the “more…” link). The reason more newsrooms don’t do this already is that they’re culturally biased against involving non-journalists in the journalistic process, Outing says. But get over it; if you don’t interact with your readers, you’ll just isolate yourself. E&P, by the way, doesn’t allow reader comments on its site.


Zell Hell teddy bearTwo views on Tribune Co. CEO Sam Zell: The maniacal Tell Zell blog is now hawking anti-Sam merchandise like the adorable, hate-spewing bear at left. You can even buy a 50-pack of “Zell  Hell” bumper stickers for only $97 and  you know the holidays aren’t that far away.  However, Recovering Journalist Mark Potts plays spoilsport. He derides the constant Zell-bashing within Tribune Co. as childish and counter-productive, particularly since the owner is actually trying to innovate as fast as he can. We have to admit he’s right, although we might pick up one of the teddy bears, anyway.


In a folksy editorial laced with jabs at the Bush administration, the editor of the Reno News & Review announces that his paper is going to do its part to save the planet by putting the staff on a four-day, 10-hour work week. It’s also folding its Theatre section as a stand-alone, but that probably won’ t have much of a carbon footprint. We wonder if readers could care less about the staff’s work hours.


When all else fails, eat. To celebrate its 30th anniversary, The Cheesecake Factory chain of restaurants will sell every slice of cheesecake at the 1978 price of $1.50 on July 30. We know where you can find us that day.

Comments Off on It's Earnings Time; Go Read Something Else
By paulgillin | July 15, 2008 - 3:27 pm - Posted in Facebook

David HillerTo no one’s great surprise, Los Angeles Times Publisher David Hiller (left) resigned today. The clock had been ticking on the embattled executive since an embarrassing incident a little more than a month ago when it was revealed that Hiller was planning to turn the paper’s weekly magazine into an advertorial without consulting Editor Russ Stanton. When the subterfuge became public, it was Stanton who set the record straight in a clear public snub of his boss.

The LA Times pulls no punches in documenting its own dirty laundry.  “The paper has experienced the steepest drop in cash flow of any in the Tribune chain of 11 daily newspapers,” writes staffer Michael Hiltzik. “Hiller also acquired a reputation among Tribune brass as an indecisive leader…the Times has been without an advertising manager since February, for example.”

The timing couldn’t have been worse for staff morale, coming as the paper begins cutting 250 jobs. Hiller is the third publisher in eight years, and he’s overseen a revolving door of editors who have left under unpleasant circumstances. The news also comes just one day after Chicago Tribune editor Ann Marie Lipinski announced that she would leave the paper after more than seven years at the helm.

What’s really going on here? A changing of the guard that isn’t unusual at companies that have been sold during troubled times. After a year on the job, CEO Sam Zell has decided that the only way to right the Tribune Co. ship is through severe cutbacks. Executives who don’t get with the program are going to be quickly shown the door. During the reign of Zell, anyone with bottom-line responsibility who doesn’t move quickly will be moved aside. Publishers at other Tribune Co. properties should see the handwriting on the wall. It’s all about revenue right now, which is appropriate when the noose of huge interest payments is staring you in the face.

A tumultuous as these events are, they’re actually a positive sign for Tribune leadership. A company in such deep trouble needs a strategy. It’s almost inconsequential whether it’s a good strategy or a popular one. Simply getting people pulling in the same direction is an improvement. Say what you will about Rupert Murdoch, you can’t deny that he has acted quickly and decisively to shoot dissenters and bring in his own team to implement a new strategy for The Wall Street Journal. As a result, the paper is generally acknowledged to be making rapid progress in its campaign to challenge The New York Times. Zell’s biggest mistake so far may have been to let things deteriorate so much before taking action. Now he’s getting something done.

Comments Off on Hiller Exits LA Times as Zell Puts His Team Into Place
By paulgillin | July 14, 2008 - 6:45 am - Posted in Fake News, Google

NAA adHere’s a new ad campaign being run by the Newspaper Association of America. We have some questions:

  • If the Internet is the best thing since the paperboy, what is the worst thing to happen?
  • What on earth is this a picture of? And what is that thing doing?
  • Did you know that “Internet” is a proper noun?

The ad links to an over-engineered Flash-animated landing page that has no apparent relevance to the message in the ad and that gave us a headache. Furthermore, Flash is invisible to search engines, which is why most websites ditched it as a home-page platform years ago. Update: Adobe is partnering with Google to solve this problem.

If the Internet is such a great thing for newspapers, we wonder by the organization that supposedly represents their interests is so clueless about using the Internet as a promotional medium.

What do you think? Is this campaign in your best interests?

Comments Off on NAA's Strange Campaign
By paulgillin | June 12, 2008 - 7:10 am - Posted in Facebook

David Hiller (left) with Ed PadgettYou’ve got to wonder about morale at the Los Angeles Times after it was revealed this week that publisher David Hiller (left, with pressman Ed Padgett) hatched a plan to move the paper’s monthly magazine completely under the control of the advertising department without telling the newspaper’s editor. Citing anonymous sources, The New York Times reports that Hiller planned to replace the magazine’s entire nine-person editorial staff and that a new editor has already been hired.

That editor’s credentials don’t indicate that a lot of hard-hitting investigative journalism was in the plan. In a droll resume rundown, the Times’ Richard Perez-Pena writes: “The new editor…is Annie Gilbar, who has been the host of a program on the Home Shopping Network. She is a former editor of InStyle magazine and has written or co-written a number of advice books, like ‘Wedding Sanity Savers.’”

The astounding thing is that Hiller apparently didn’t tell LA Times editor Russ Stanton about any of these plans. The publication currently named Los Angeles Times Magazine was going to hit the street in late summer or early fall with no oversight from the paper’s editorial staff, despite carrying the weight of the paper’s reputation and credibility.

Equally amazing is that the plans had moved along this far without Stanton’s knowledge. According to the Times report, Hiller had already hired a new editor, art director and photo editor. Assuming that the previous staff of the magazine was reporting somehow through the LA Times editorial operation, it seems incredible that those changes could be made under the radar.

This puts Russ Stanton in a tough position, of course. The New York Times story, if true, is a public humiliation, the kind of revelation that could prompt Stanton’s resignation. But Stanton’s only been in his job for four months, and he’s the fourth LA Times editor in the last three years. Another resignation at the top level would send staff morale into the tank.

We won’t even speculate about what Hiller was thinking.


Washington Post columnist Harold Myerson has a withering piece about Sam Zell, likening the Tribune Co. CEO to the union activist who tried to blow up the LA Times offices nearly a century ago. “At the rate he’s going, [Zell is] on his way to accomplishing a feat that [the bomber] didn’t even contemplate: destroying the L.A. Times,” he writes. Describing Zell as “a visiting Visigoth, whose civic influence is about as positive as that of the Crips, the Bloods and the Mexican mafia,” Myerson trashes Zell’s pronouncements last week that journalists would increasingly be measured on the volume of their output, noting that under those metrics, the Post’s Pulitzer-winner reporters would find their heads on the chopping block.

Comments Off on Theatre of the Absurd at LA Times
By paulgillin | June 5, 2008 - 10:40 am - Posted in Fake News, Google, Paywalls, Solutions

The 15th World Editors Forum is going on in Göteborg, Sweden, and Editors Weblog is providing exhaustive coverage. A lot of the talk has been about the new, integrated newsroom and the reinvention of journalism. Here are some highlights.


Comments Off on Swedish Message: Publishers and Editors Talk of Change
By paulgillin | May 7, 2008 - 8:39 am - Posted in Fake News

LAmag.com rounds up a group of former LA Times editors for one-on-ones about the past and future of the newspaper. The conversation is pleasant until you hit the jump page, when former EICs Dean Baquet and James O’Shea unload on owner Sam Zell.

Quoting from Baquet:

“Tribune was not a good steward, but Zell seems to be worse. Tribune didn’t like the L.A. Times, but Zell seems to be flailing and making it up as he goes along. At least with Tribune, you could have a rational fight—they never shouted obscenities at me. I wish somebody could tell this guy that he’s presiding over important newspapers and that sounding like a knucklehead won’t work in the newspaper business. Doesn’t he understand that the best people at the Times are floating résumés across the country because of his bullying?”

And from O’Shea:

“I think Mr. Zell looks at newspapers as he looks at any business, but a newspaper isn’t any other business. It’s a public service. If you do a good job serving the public, then business will be good. Public service is not a dividend you decrease or increase when profits fall or grow. What the L.A. Times becomes will depend on Mr. Zell’s understanding of that.”

Survey says Newspaper Websites Attract Smart, Rich People

A Nielsen survey commissioned by the Newspaper Association of America reports that newspaper websites attracted more than 66.4 million unique visitors in the first quarter, up 12.3% from last year. Page views were up a more modest five percent. In addition, the survey found that regular online newspaper readers are richer, better educated, more likely to travel and more likely to use iTunes. They have all kinds of other desirable characteristics, which you can read about in the press release.

Murdoch Still Favored to Win Newsday

Newsday continues to provide the best coverage of its own impending sale. You’d think that with Cablevision outbidding two other suitors by $70 million, the deal would be a no-brainer.  Not so, says this report. For one thing, Sam Zell may be reluctant to snub his new buddy, Rupert Murdoch. Cablevision may also face the same kind of cross-ownership regulatory hurdles as News Corp. And the whole deal needs to be rubber-stamped by a watchdog group of Tribune Co. employees, who may or may not agree with their boss. The whole thing could drag on for months. (via Romenesko)

Envisioning the Future of News

Susan EdgerleySusan Edgerley, assistant managing editor of The New York Times, is answering questions from readers. She’s focused on reinventing the newsroom. Some notable quotes:

“Two years ago, we might have been hesitant to break a scoop on the Web — we would have worried about the competition catching up to us before our print deadline. No more. Now we put the story out there and figure out how to advance it for the next day’s paper.”

 “The Web staff used to be in a different building a couple of blocks from our old Times Square office. When we moved into our new building about a year ago, we had the space to sit together for the first time.”

 “I don’t think you’re wasting your time getting a print journalism degree. Telling stories fairly and compellingly will always be at the center of what we do.”

 “We’re hiring people, some of them straight out of school, for their Web skills.”

 “Finally, NYTimes.com is more than the stories, pictures and graphics you see everyday in The New York Times. It is more than a newspaper on the Web. We want to use its blogs and reader comments and Topics pages and interactivity to talk more directly to our readers and find ways for them to share information with us.”


ReinventingClassifieds.com has a prescription for resuscitating the dying business. Newspapers should put all their classifieds into one distributed, constantly updated database and then distribute them freely to bloggers, who can sell display ads against them. Bloggers can offer free classifieds to their readers, which become part of the master database. It’s an interesting idea, although we question how much interest bloggers – or display advertisers – will have in running ads next to ads. (via Romenesko)


For the true TV news junkie, check out LiveNewsCameras.com. The site aggregates video feeds from more than 100 stations around the U.S. The project is the brainchild of a former Bay Area TV producer, says the San Francisco Peninsula Press Club.


Sunlight News MashupEditors Weblog reports on Sunlight Foundation’s new tools for online journalists. They include a Google Maps mash-up of earmarks from last year’s Labor, Health and Human Services appropriations bill.

There’s also an item on the innovative uses of Twitter by the Evening Leader in the UK. The group text-messaging service recently enabled the paper to cover local election results, scooping its competition and setting up the print edition for more thoughtful next-day coverage. Will Twitter become an essential tool for journalists in the future? Let’s hear your comments.

Layoff Log

  • The Lexington Herald-Leader is offering a voluntary buyout program, looking to reduce its staff of 385 employees by about four percent. Layoffs are possible if the offer doesn’t generate enough interest.
  • The Camera of Boulder, Colo. laid off nine employees — 6 percent of its staff — in response to declining advertising revenues. The president of the company described the newspaper’s business as “healthy.” You figure it out.

Comments Off on Former LA Times Editors Sound Off on Zell
By paulgillin | May 6, 2008 - 7:35 am - Posted in Fake News, Solutions

The New York Times tells the story of International Data Group’s (IDG) successful transition from the print to the online model, proving that it can be done (full disclosure: I worked for IDG for 15 years). IDG still has a lot of print publications, but the print component of its publishing revenue model has dropped from 86% in 2002 to 48% online today. The Web has not only picked up the slack but is actually driving growth of 10% annually, according to CEO Pat McGovern.

This story focuses on Infoworld, which was once a top technology title in the U.S. Buffeted by the rapid shift of its techie readers from print to the Web, Infoworld shut down its print edition a year ago. Today, it’s bringing in just as much money online as it did in print, only lthe margins are much better.

The technology trade media market is unique in several ways, but publishers should take heart that an online business model really does exist and that you really can get there.

Stirring Story From the Heartland

When The Times of Liberal, Ks., cut back from daily to three days a week last fall, readers took it as a slap in the face. The proud town of 20,000 thought it deserved better. So the publisher of the Times packed up, took 70% of his staff with him and launched the High Plains Daily Leader, a new daily newspaper (yes, you read that right) that distributed its first 7,000 copies on Sunday. Key details are unclear; the paper has no website yet and the AP report says nothing about who’s funding the venture. But its kind of thrilling to see that entrepreneurial spirit and reader advocacy are alive and well amid the pervasive gloom in the industry.

Labor Struggle Amid the Palms

The Santa Barbara News-Press laid off 10 employees last week, including two newsroom managers, in part because of financial damage caused by a Teamsters boycott. The trouble started two years ago, when most of the top editors collectively quit over allegations that the owner was interfering with editorial coverage. The owner shot back that all she was doing was preventing the editors from injecting their opinions into their reporting. So the editors voted to organize, the owner resisted, the Teamsters urged readers to cancel their subscriptions and apparently a lot of them did. Now we supposed the next move is up to the union. It’s hard to imagine all this unrest in such a pretty Pacific coast town.

Update: Craig Smith offers a lengthy perspective on the  News-Press‘ problems, laying the blame squarely at the feet of owner Wendy McCaw. Smith says McCaw has run the paper like a personal blog, micro-managing the editors and using threats and intimidation to keep staff in line. The large number of recent stories about animals is a consequence of McCaw’s passion for animal rights, he claims. Staff members live in fear.

Veteran Editors Sound Off on Industry Woes

Doug Fisher does what a good columnist should and challenges conventional wisdom by arguing that the newspaper industry should stop panicking and starting finding out where the readers are. Reporters and editors are too inclined to make assumptions, says Fisher, and a lot of the headlong rush to online delivery is driven by their gut belief that readers prefer to get their news that way. In fact, Fisher believes a lot of readers would gladly start taking a daily newspaper again if publishers could figure out how to make the product more useful.


Veteran editor Jerry Ceppos says it’s time for the American Society of Newspaper Editors (ASNE) and the Associated Press Managing Editors (APME) organizations to merge. The existence of two groups with similar charters and declining memberships is weakening both, says Ceppos, who’s a past APME president. He describes attendance at the recent ASNE meeting as being the worst he’s seen in 25 years. In writing this Poynter opinion piece, Ceppos ran the merger idea by officials from both groups. The APME basically trashed it while the ASNE sounded interested. The best part of the article is excerpts from the groups’ mission statements, which read like they were written on the back of cocktail napkins.

Survey Reveals Editors Realistic About Industry’s Future

The results of the annual Newsroom Barometer survey of 700 editors from around the world was just released, and it’s worth a scan at Editors Weblog. We found few big surprises in the numbers. Most editors believe news will be free in the future, the Internet will be the preferred delivery platform and journalists will need to use every medium at their disposal to tell a story. Nearly 60% think the decline in young readership is the industry’s biggest threat. Almost two-thirds expect some editorial operations to be outsourced.

If anything is remarkable about this survey, it’s that a significant minority of editors continues to curse the darkness. Nearly a third still believe that print “will be the most common way of reading the news in your country” in a decade. One-third also believe that readers will pay for news (although the ambiguous wording of this question may have skewed the results). Sadly, only 45% believe the quality of journalism will improve over the next decade, down from 50% in 2006. The research was conducted by Zogby International and commissioned by the World Editors Forum and Reuters.

And Finally…

Comments Off on Inspiring Tales of Success and Spirit
By paulgillin | May 2, 2008 - 7:40 am - Posted in Facebook, Solutions

Final Earnings Reports Trickle In

The Ontario-based publisher of the Toronto Star and dozens of community weeklies reported a $3.5 million loss on a 3.4% decline in revenue. A big factor in the swing from last year’s $15.7 million same-quarter profit was a $21 million restructuring charge associated with the elimination of 160 jobs at the flagship. Less than a month ago, news reports were marveling at the resilience of the Canadian newspaper market, but that optimism seems to have all but disappeared. The Globe and Mail says executives from other Canadian publishers like CanWest Global and Astral Media are also seeing rough times ahead.


American Community Newspapers (ACN), which publishes three dailies and 100 mostly free non-dailies, lost $4.5 million in the first quarter on an 11.7% revenue decline. It blamed the 44 papers in its Minneapolis/St. Paul cluster. More ominous was its statement that “for the second quarter of fiscal 2008 ACN does not expect to be in compliance with financial ratio covenants contained in its credit agreements.” In other words, it’s hoping creditors will be feeling generous, which isn’t too likely given the ugly state of the market since the Bear Stearns implosion.


Journal Register Co. will stop acting like a public company, even though it’ll still be publicly held. Beaten, bedraggled and delisted, the publisher of 21 dailies and 300 community papers said the cost of filing SEC reports and publishing shareholder communications just wasn’t worth it, in light of its stock being priced below that of a gumball. You’ll still be able to buy the stock on the Pink Sheets market, but you might just want to use the Pink Sheets to dispose of that wad of gum. Journal Register has applied for the necessary SEC exemptions.

Layoff Log

Fresh on the heels of a whopping 8.5% loss in daily circulation, the Atlanta Journal-Constitution said it’s cutting 62 positions and cutting back its distribution area from 74 to 49 counties. As recently as two years ago, the paper was distributed to 200 counties in five states.

Craig Smith says the Santa Barbara News-Press has laid off 16 people and names some names. He quotes a memo from the publishers saying that the Teamsters Union, which represents newsroom employees, has been doing things like calling people and urging them to cancel their subscriptions. One wonders how union members could think this would be constructive activity in the current environment. There’s no mention of total employment at the paper.

Where Will All the Dollars Go?

Respected market analyst Henry Blodgett speculates on Silicon Valley Insider about where $42 billion in newspaper advertising revenue will go. Describing a scenario that’s been outlined on this blog many times, he envisions a future in which circulation declines eventually reverse economies of scale and send newsapers into a tailspin. He adds that the green movement will pile on with its general distaste for anything on paper. Blodgett sees newspapers and their associated websites capturing maybe a third of those ad dollars, most of which will go online elsewhere. A spirited debate ensues in the comments section.

Department of Unintended Consequences

Washington City Paper analyzes the newspaper classified advertising business and finds that it is actually surprisingly healthy in the Beltway area. But the reason is that foreclosure notices have replaced “for sale” advertising as the engine of growth in the deflating real estate market . “On March 13, the Washington Post’s classifieds section totaled 22 pages, approximately 14 of which were devoted to what are technically known as ‘trustee’s sales,'” the website reports. This revenue is a legacy subsidy from area municipalities, which require foreclosure notices to be listed in local newspapers at several hundred dollars a pop. Which proves you can always find a silver lining.

Comments Off on Weak Earnings End Forgettable Week