By paulgillin | December 5, 2008 - 8:24 am - Posted in Facebook, Fake News, Google, Hyper-local, Paywalls

Hot on the heels of the newspaper industry’s record-breaking 18.1% quarterly revenue decline, analysts are weighing in with dire forecasts and advice.

“A newspaper that cannot sell enough advertising or cut enough expenses to sustain profitable operations is not likely to make it to the other side of 2009,” writes Alan Mutter in a depressing outlook on the industry’s immediate future. While the rest of Mutter’s post isn’t as provocative as that closing statement, it provides a detailed analysis of which markets are mostly likely to see mergers or closures (Minneapolis, San Francisco, Southern California, Southern Florida) as well as markets like Chicago and Boston, where two competitors are locked in battles of mutual destruction. The most likely scenario for 2009 is that publishers will have to choose from a palette of equally distasteful cost-cutting options, and that the measures they have to take will be more drastic than the 10%-20% workforce cuts of the past year. Mutter lists voluntary pay cuts, massive outsourcing, frequency reduction and asset sales as being on the table.

Fitch Ratings might agree. Its report says several major daily papers could shut down by 2010. Speaking in that odd third-person-singular that investment companies like to use, the agency sa

ys “Fitch expects newspaper industry revenue growth will be negative for the foreseeable future,” and that credit ratings are likely to decline further. Unlike the 2001 advertising crash, this one is affecting both national and regional advertisers, the credit rating agency says. “And unlike the easy credit and lower interest rates during the 2001 ad recession, this time advertisers and consumers face a credit freeze.” The outlook for 2009? Don’t ask. Fitch expects real US GDP to drop 1.2% while inflation hovers at 2.7%.

Steve Outing has some advice for newspaper executives struggling with the reinvention question. While his E&P column isn’t as edgy as usual, his prescriptions are practical. The most counter-intuitive in our opinion: stop chasing young people. Millennials aren’t going to read newspapers, so your redesigns intended to make your print edition more appealing are going to fail. Reach out to them through their mobile devices and services that aggregate their social networks with news (he isn’t more specific about this; Facebook is a pretty big obstacle to this goal). Focus your print editions on the readers who want to read print. Yeah, they’re older, but they’re still viable. You’re going to be

managing print down for the next 15-20 years, so get used to it. And while you’re at it, start pushing those older print readers online. Make your newspaper a gateway to enhanced services on the Web. And for God’s sake, stop wasting your time on fluffy lifestyle pieces. Print loyalists want serious journalism.

Outing has some investment advice, too: hire someone to maximize online visibility through social media channels, bring in a mobility specialist and give your staff time to come up with novel ideas for reinvention. The problem, of course, is who’s got the time or money for all this? Outing doesn’t address the budget issue but then again, he’s a pundit, not an accountant.

Profiling the Provocateur

The New York Observer has a long profile of local media guru Jeff Jarvis, who perhaps vexes the mainstream media industry more than any other contrarian. That’s because Jarvis, who now teaches journalism at NYU and agitates with his popular Buzz Machine blog, is one of them. He worked at the San Francisco Examiner, New York Daily News, People and TV Guide, among other outlets, and was founding editor of Entertainment Weekly. Jarvis may understand traditional media’s pain, but he doesn’t cut the industry much slack.

He is passionate about citizen journalism and the need for media institutions to remake themselves as hubs of news, commentary and conversation among a community of people with similar interests. He has little tolerance for the go-slow mentality that pervades American newsrooms. As Jarvis sees it, the quicker we blow up the old, the quicker we can get on with the new. And he makes his points in blunt, sometimes profane language.

This has made Jarvis a hot potato for a tribe of senior editorialists who are trying to balance their respect for the man with their distaste for his revolutionary ideas. The piece quotes several of these top editors, including New York Times Executive Editor Bill Keller, who clearly finds some of Jarvis’ ideas persuasive but is uncomfortable with his extremism. Gawker’s Nick Denton sums it up: “Of all the Internet supremacists, he is the one who has betrayed his origins in print. Of all the people who grew up in newspapers and magazines, he is the one who has most clearly abandoned them.”

Jeff Jarvis is required reading at the Death Watch and we commend him to you.

Poignant Tales From the Front Lines

Pam Podger and her husband moved from Virginia to Montana because they loved the natural beauty and the lifestyle. They took at job at the Missoulian. Nine months later, they were both laid off on the same day. More than 50 years of journalism experience was thus thrust out on the street, with two kids to care for. Podger writes in American Journalism Review of her anxiety, her fears about the future of journalism and her determination to stick it out in her new home.


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,” says an Associated Press piece. The story spotlights Eric Devericks, whose work is pictured above. Devericks has known nothing but success since his work was recognized with a national award while he was still in college. But rewards don’t amount to a hill of beans in an industry that’s cutting bone, so the Seattle Times laid him off effective next Friday. Next month, Devericks, his wife and three kids are “heading to southern California, where two buddies have offered Devericks a job as a business development specialist for their new industrial design company,” says the AP account. The curtain is quickly coming down on a generation of journalists who proved that the brush, as well the pen, can be mightier than the sword.

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By paulgillin | December 4, 2008 - 5:18 pm - Posted in Fake News, Layoffs

Back in late October, Gannett Co. announced plans to cut 10% of its workforce.  This week, the hacking began in earnest. A sampling:

All this and more is being documented in gruesome detail on the Gannett Blog, Jim Hopkins’ remarkable watchdog website.  Gannett may not be revealing the extent of its job cuts, but Hopkins has assembled field reports from employees at 71 newspapers, as of today.  In addition, more than 100 comments have been posted. Peter Kafka of All Things Digital pays homage to the blog here, as does Editor & Publisher, which quotes extensively from it.

Unrelated to the Gannett moves:

And to all a good night…

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By paulgillin | December 2, 2008 - 9:05 am - Posted in Facebook, Fake News, Hyper-local

Bad news has spread across traditional media at a breathtaking rate. Fortune’s Richard Siklos ticks off some of the sorry numbers. It’s not just the newspaper industry that’s suffering.

Quoting Michael Nathanson, media analyst at Sanford Bernstein, Siklos notes that this is the first time in memory that a coincident election and Olympic year has been accompanied by a decline in ad spending. “Excluding Internet spending, ad spending across all traditional media in this year’s third quarter was down 8.5 per cent, the sixth consecutive quarter of declining spending,” he writes.

Siklos quotes Craig Huber of Barclays Capital forecasting that “classified advertising as a percentage of newspapers’ revenue will decline to 26 per cent in 2009 from 36 per cent in 2006. Meanwhile, newspapers’ share of total U.S. ad expenditures…will have declined to 10 per cent next year from 20 per cent in 1999.”

But it’s not just newspapers. Yahoo just reported a 64% drop in quarterly earnings. Google stock is off more than 45% and analysts are cutting their forecasts of online spending growth. The only winners at this point appear to be subscription services that derive a significant portion of their revenue from non-advertising sources. While the story stops short of pointing to a generalized decline in advertising, the numbers leave you wondering. Could it be that businesses are beginning to question the value of advertising and that those doubts are creeping into the numbers? Could be. On the other hand, it could also just be a crummy economy.

“Get Me Bangalore!”

Maureen Dowd writes about a newspaper that’s offshoring editorial content and learning to make it work. James McPherson is the editor and publisher of Pasadena Now, a small weekly. A year ago, he fired his entire editorial staff and farmed out coverage to a staff of Indian writers he recruited on Craigslist. He pays them 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.

Reaction to the idea was brutal at first, but the concept of editorial offshoring is gaining traction. Dowd counts MediaNews Group chairman Dean Singleton among the ranks of executives who have recently talked about massive offshoring to save costs. Singleton says most preproduction work for MediaNews’s California papers is already outsourced to India, which has cut costs by 65 percent.

If the idea sounds preposterous, think about it. How many people in a standard newsroom never leave the building? Any job that primarily involves computer and phone work is a candidate for offshoring. Between cell phones, webcams, virtual meetings and instant messaging, the need for face-to-face contact is diminishing to the point of irrelevance in many cases. On-site reporters will always have value, but in the future they could become a small corps of feet on the street feeding copy to a virtualized production force that is largely invisible. The compelling cost efficiencies give publishers a lot of incentive to be creative.

Ex-LA Times Editor Takes on Zell

Former Los Angeles Times editor James O’Shea comments at some length on recent statements by Tribune Co. CEO Sam Zell about the failure of newspapers to listen to their customers. O’Shea has a problem with that philosophy. “If all we had to do was ask readers what they wanted in a newspaper and then give it to them, wouldn’t someone have done that years ago?” he asks? In fact, they did. “I’ve seen dozens of papers march down that road to no success.”

O’Shea agrees that journalists have done a poor job of demonstrating their value as stewards of the public trust, but he thinks that failure is actually due to their efforts to listen too closely to their customers. The conventional marketing wisdom is that readers want soft, lifestyle stories and the more we give them that pabulum, the more we undermine our value as serious journalists. “To the extent we blur the differences between these once-distinct voices with pandering coverage that resembles advertorial and not editorial we play right into this trap,” he writes.

After nearly 2,500 words of analysis, O’Shea fails to deliver a prescription for change. “Newspapers have to figure out how to deliver journalism that makes the public believe we once again are a public trust, something of value and something they won’t hesitate to pay for,” he writes. Hear, hear! How are we going to do it? O’Shea doesn’t offer any ideas. That makes this piece ultimately rather disappointing.

Miscellany

If the newspaper industry is dying, apparently no one told Saharra White. The California State University, Northridge journalism major pooled her savings and donations from friends last year to launch Say It Loud!, a newspaper for African-Americans of the San Fernando Valley. “I wanted to start the newspaper because there are black people in the Valley doing some positive things,” she says. Say It Loud! is one of about 200 black community newspapers across the US, according to the Black Newspaper Publishers Association. White says she felt the stunning election of an African-American as President demanded new media to cover the impact of the Obama administration on America’s future. She distributed the paper in print for a year, but now has gone online-only as a matter of economic necessity.


The Cleveland Plain Dealer is laying off 27 staffers by phone this morning because not enough people took the paper up on its buyout offer. In a memo yesterday, Editor Susan Goldberg told Guild local 1 employees that those selected for layoff will be notified by 9:30 a.m. Anyone who doesn’t get a call should come in to work.


The publisher of the San Jose Mercrury News has told employees to brace for more layoffs early in the new year. The company has already cut newsroom employment by 50%.


The Charleston (W. Va.) Daily Mail will switch from afternoon to morning publication, giving the city two morning papers. The Daily Mail and the Charleston Gazette will continue to compete with each other, despite the fact that they share production staffs and distribution networks. They also share about 6,000 readers who subscribe to both publications. Afternoon newspapers have all but disappeared in the US.

And Finally…

While executives and journalists fret about the implications of life without newspapers, Donna Freedman writes on MSN Money Blog about more practical matters: what’s she going to use to clean her windows?  The alarming shrinkage of daily newspapers is going to leave people with a shortage of packing material, impromptu gift-wrap and puppy-training supplies, she worries. “Without newspapers, what will I put at the front door to soak up moisture from wet shoes? To say nothing of the fact that I would no longer be able to say, ‘These are the Times that dry men’s soles,'” she groans. Several visitors pick up on the fun, offering eulogies for Sudoku puzzles lost and fish ‘n chips that lost their appeal on polystyrene platters.

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By paulgillin | November 21, 2008 - 8:18 am - Posted in Paywalls
Vol. 1, No. 1

Vol. 1, No. 1

It isn’t a newspaper, but to millions of computer enthusiasts, PC Magazine is an institution. It led the uprising of PC-empowered office workers against corporate IT departments in the 1980s and peaked at 1.2 million circulation in the 1990s. Issue sizes once ran to 500+ pages and the magazine supported a staff of more than 300 people. Its product reviews were considered the gold standard in the industry.

So the announcement this week that PC Magazine will exit the print market and go online-only was a turning point of sorts. With circulation down by half and an advertising base that has switched its budgets almost entirely online, the move makes sense. Expect to see more tech titles follow.

Longtime tech writer David Strom and I devote 14 minutes to a eulogy and look to the future in this podcast. Strom also has his own memorial here. Former PC Mag editor-in-chief Michael Miller also has a few thoughts.

Technology media has been a leading indicator of change in other media sectors. InfoWorld was the first major tech title to abandon print and many publishers have scaled back on size and frequency to keep their ink-on-paper operations viable. Most will tell you that they run print at break-even and make all their profits online. That was apparently the situation at PC Mag. Readers of tech publications are naturally more Internet-savvy than the general population, so the shift to the Internet was evident in the tech market several years ago. Look to that market as a leading indicator of where the media in general is going.


Tough times for the Newspaper Guild are shifting the union’s strategy from organizing laborers to simply surviving. Membership is down about 17% since 1986 and 2,000 Guild members have left this year alone. In a telling move, the union recently cut back the frequency of its internal newspaper from monthly to bimonthly and moved more content online. “Right now the biggest thing you’re fighting is the overall sense of impending doom,” is the uplifting quote from new Guild President Bernard Lunzer.

It’s so bad that the Guild is now focused on helping its longtime adversaries survive. The union recently pitched in to help finance an acquisition and it has worked actively with some newspaper owners to arrange concessions that would keep the titles afloat. It’s also beginning to organize people outside of the newspaper industry, such as interpreters in California courts.

The industry’s shift to online distribution hasn’t helped the Guild. Fobes notes that Much of its power came from its ability to seize up a paper by asking sister unions running presses to strike.” With fewer copies to print and presses to staff, that club isn’t as big as it once was.


The Associated Press will reduce it staff by 10% over the next year. The cutback of roughly 400 positions will be accomplished by attrition to the greatest degree possible, according to CEO Tom Curley, but layoffs may be necessary. The AP instituted a hiring freeze several weeks ago. The pain being felt by member newspapers has hit the AP hard and the situation has worsened as several large members have announced plans to drop the subscription service in order to save money.

By paulgillin | November 19, 2008 - 11:40 am - Posted in Facebook, Fake News, Hyper-local

Sobering news out of the American Press Institute’s executive confab in Reston, Va. last week. The newspaper industry is in a full-blown crisis and radical surgery is needed to save it, according to an executive summary. CEOs learned about the classic stages of a crisis and ran the numbers on their own businesses. All but one of the public companies in the room was “below the safe stage,” the summary said, meaning that they’re at real risk of bankruptcy.

There were strong words from the podium. Turnaround specialist James Shein of the Kellogg School of Management at Northwestern University said one of the biggest hurdles to progress is “the industry’s senior leadership, including some people in this room…I am not sure you can take a look at your industry with fresh eyes.” Remedies that were discussed ranged from waiting out the economy to hiring experts like scientists or bank regulators to replace some reporters (wait’ll you see the bill on that one). Everyone who’s still around will come back in six months to revisit the situation.

There was undoubtedly some debate about asking the government for a bailout, as the auto industry as done. Ain’t gonna happen, says Alan Mutter. For one thing, government bailouts are intended for industries that have the potential to turn things around and grow again, which is highly iffy proposition for the newspaper business. Paradoxically, a government handout would also compromise one of the most common arguments for supporting the press, which is that it provides a vital watchdog function. “It is difficult to imagine how the vigor and independence of the press would be maintained if the industry depended on the largesse of the very government officials it is supposed to be watching,” Mutter writes. Finally, the industry is just too small to make a difference in the health of the overall economy.

In Praise of Experience

Few news scribes are as eloquent and engaging as The New York Times’ David Carr and you’d do well to read this column about the foolhardiness of firing experienced employees. Pointing to veteran reporters and columnists who have been sacrificed on the altar of cost-efficiency, Carr says newspapers are effectively cutting off their nose to spite their face. Once the short-term profit boost is complete, these organizations, “won’t stay relevant to readers with generic content ginned up by newbies with no background in the communities they serve,” he writes. Read the column for more gems like that.

St. Petersburg Times columnist Eric Deggans was referenced in the Carr column, and he posts a thank-you for the recognition and an elaboration on the practice of laying off experienced people. Deggans notes that his newspaper has few senior journalists writing any more; most of the old-times have made the jump to management or left the paper. He wonders if the loss of veteran old-timers will leave a gap for the next generation: “I wonder if we’ll reach a point where only the best writers can keep doing the job as they age, creating a bit of a generation gap between writers and editors,” he asks. That would be a loss because youngsters need the wisdom of older scribes who aren’t their bosses, Deggans says.

In Condemnation of Euphemisms

It isn’t a layoff, it’s an evolution. At least, that’s how a column by Ventura County Star Editor Joe Howry describes it. “At The Star, our plans were to continue intensifying our focus on local news… Life, in the form of the economic downturn, has forced us to speed up those plans,” he wrote last Sunday.

What really happened is that the Star recently laid off 44 people and consolidated its weekday paper to conserve space. In Howry’s view, though, the cutbacks are simply part of an “evolution” centered around “preserving the quality and quantity of local news.” Not once does his editorial mention layoffs or cost reductions. LA Observed’s TJ Sullivan finds absurdity in the message. Sullivan doesn’t doubt it was painful for Howry to let so many people go, but he thinks they deserved a more honorable send-off that to be referred to as victims of efficiency. Journalists are supposed to tell the truth, he says. Don’t candy-coat downsizing. Admit it sucks and move on.

Newspaper Outsourcing a Growth Industry

Research and Markets has 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 says. Most of the work is in ad production. Overall revenues of the business are estimated at $35 million this year (quick calculation: about $15,000 per head), growing to $120 million by 2012. “The total offshore opportunity from newspaper publishers is estimated to be approximately $3.5 billion,” the summary says, although it doesn’t specify whether that’s an annual figure or a total of several years. However, vendors still “need to build client confidence in terms of delivering consistently good quality of output and quick turnaround.” You can download your own copy for 437 euros (about $555).

Miscellany

The New York Times has closed its quarterly sports magazine Play because of slow ad sales. Assistant Managing Editor Gerald Marzorati called the closure the “hardest professional call I’ve ever made in my life,” but with the magazine losing six-figure sums every year, there was no viable alternative. The quarterly was said to be a favorite of New York Times Co. Chairman Arthur Sulzberger. According to The Wall Street Journal, “The Times explored several options to keep the magazine afloat, including cutting editorial staff, publishing it only online and signing a single advertiser for each issue. New York Observer says no staff positions will be cut because the content was mainly freelanced and the only staff employee will be reassigned within the organization.


The Erie (Pa.) Times-News will use a “generous” buyout to reduce staff by 25 employees, or 9 percent of its 273-person workforce. The buyout, which is available to 51 employees, provides up to five years of company-paid health insurance, or an equivalent flat payment, plus a $10,000 signing bonus for each eligible employee who accepts. The paper has actually been growing weekday circulation in the past year, but “broad economic market conditions” mandate the cuts. The publisher said no layoffs will be necessary in 2009 if enough people accept the offer.


The Sun-Times Media Group (STMG) is cleaning house in a concession to two big shareholders. Several board members will resign in the first stage of a complete restructuring of the governing body. The company will also lose a special monitor who was assigned to keep an eye on things following an earlier scandal in which two executive were jailed for stealing. STMG is also deregistering its Class A common stock and will now trade on the pink sheets, which require less regulatory overhead.


The industry’s malaise is spreading overseas. The UK’s Independent is laying off 20% of its staff, or about 90 people. The company’s managing director said the business is “racking up losses that would threaten the very survival of these papers.” Trinity Mirror, which is the country’s largest local newspaper publisher, recently said it had quietly closed 28 titles this year.


The southern California-based North County Times has cut 25 newsroom jobs, or about 25% of its workforce. Ironically, the paper also has a column this week by John Van Doorn, who was laid off after 58 years as a reporter and editor. The veteran New York newspaperman could be excused for being cynical about the whole thing, but his farewell piece (pre-published in Editor & Publisher) is actually quite uplifting.
Van Doorn thanks an industry that gave him the opportunity to “reside in 11 countries and work in 35, rub shoulders with presidents, prime ministers and a king or two, and with ordinary people far more substantive, such as the North County population.” And he’ll be back. “I cannot not write,” he concludes, inducing paroxysms in Microsoft Word’s grammar checker.

And Finally…

This year may go down as the worst ever for the newspaper industry, but 2008 also ironically included one of the best single-day sales milestones in history: the day after the presidential election. Issues flew off the newsstands in record numbers following Barack Obama’s victory, as readers sought to capture a moment in history.

Now the Chicago Sun-Times is going one step further by offering 44 copies of its Nov. 5 front page as a “museum wrap fine art giclée print on canvas.” If, like us, you’ve managed to live your entire life without knowing what giclée is, Ed Chasen Fine Art describes it as “a French term used to describe a specialized process in which pigmented inks are applied to canvas or paper to reproduce a fine art reproduction.” Regardless, the first 15 copies have so far failed to elicit a single bid starting at $350 each on the auction site, although there are still several days left.

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By paulgillin | November 14, 2008 - 11:37 am - Posted in Facebook, Google, Hyper-local, Solutions
Lee Abrams and friend

Lee Abrams and friend

Conde Nast Portfolio takes a look at Tribune Co.’s much ballyhooed redesigns and finds that nothing much has changed. New looks-and-feels in Orlando and Ft. Lauderdale have barely budged circulation, which continues to fall. “We can’t find any impact from the redesign,” Norbert Ortiz, the Orlando Sentinel‘s vice president for circulation and consumer marketing, tells Portfolio.

This doesn’t bode well for recent makeovers in Los Angeles and Chicago. Experts debate whether the new designs are radical or just a new coat of paint, with the painters holding the edge: “a distraction,” says Ken Doctor; “seat of the pants” adds Alan Mutter. The story focuses on Tribune chief innovation officer Lee Abrams, who is inexplicably pictured with the cast of Blue Man Group. Abrams invented the album format that revolutionized FM radio back in the 80s, but his innovations in print have been less dramatic. “I wouldn’t call it redesign. I would call it redecoration,” says Alan Jacobson of Brass Tacks Design.

Abrams is quoted asserting that “we really had to work on reclaiming things that newspapers had traditionally owned,” from investigative reporting to election and crime coverage. Oddly, Tribune Co. has slashed editorial staff at most of its papers this year, drastically undercutting their ability to sustain provide such information.

We’ve previously shared our opinion of redesigns (“A Useless Exercise at the Wrong Time”) and see no further need to comment.

New/Old Journalism Clash in Washington Park

Mediashift tell of a new online publication at New York University that’s challenging the school’s 36-year-old campus fixture, Washington Square News (WSN). The venture was launched by three non-journalism majors who were frustrated with what they call WSN’s bland tone and faux objectivity. NYU Local, which is currently configured as a blog, takes a fundamentally different view of impartiality. Most people who want to be objective tend to disguise their opinions,” says co-editor Lily Quateman says. “Being objective treats readers like idiots and makes them guess.”

WSN Editor-in-Chief, Adam Playford begs to differ, saying his journal will continue to report just the facts and label opinions accordingly. He also says online isn’t a major focus at WSN, which updates its website just once a day. In contract, NYU Local encourages anyone to contribute and makes it possible to do so by any means possible, including cell phone. The staff hopes to move to a social networking platform in order to further encourage community journalism. “The idea of citizen journalism is a massive misnomer,” says 20-year-old co-editor Cody Brown. “Everyone is a citizen and anyone can be a reporter. The term is patronizing.”

The piece, which is written by an NYU junior, highlights the push-pull taking place between old- and new-media models, even within the context of a college-age audience. The fundamental debate is over the question of whether professional reporters are better equipped to tell a story versus thousands of unknown citizens. The fact that the battle is taking place in an institution that’s training the next generation of journalists indicates that this issue will be debated for some time to come.

Layoff Log

  • More layoffs are days away at the Baltimore Sun, according to the newspaper’s union. If true, the action would follow by just five months a 100-person downsizing this summer, a cutback that hit the newsroom particularly hard. No word on numbers, but the cuts are expected to be layoffs, not buyouts. The Sun employed 1,400 people before the 100-person cutback last June.
  • With five more newsroom layoffs at the New Haven Register, the size of the newsroom staff will have shrunk from 110 to 65 in a decade. The five editors are part of a larger cutback of 20 people announced yesterday. The daily will also shutter Play, an entertainment-oriented weekly. More layoffs are possible in mid-January, when parent Journal Register may fall into default if it can’t make its debt payments. Earlier this week, Journal Register said it would probably close two small Connecticut dailies – the New Britain Herald and the Bristol Press – along with 11 weeklies in the state.
  • As expected, the ax has fallen in Tribune Co.’s Washington bureaus. LA Observed reports that Chicago Tribune staffers John Crewdson, Bay Fang, Stephen Hedges, and Aamer Madhani were let go. Earlier eight Los Angeles Times staffers were laid off and acting Tribune acting bureau chief Naftali Bendavid left to join The Wall Street Journal.
  • Newhouse is cutting deeply in Michigan. Staff at eight newspapers have been told that massive buyouts are planned and some operations will be consolidated in Grand Rapids and Kalamazoo. There’s no word on numbers, but the Ann Arbor Chronicle account says nearly everyone in the newsroom has been offered a buyout. Production staff has been told that if they don’t take the buyout, they’ll have to work from the Grand Rapids office, which is 130 miles away. Papers in the group include the Grand Rapids Press, Ann Arbor News, Jackson Citizen Patriot, Flint Journal, Bay City Times, Muskegon Chronicle, Saginaw News and the Michigan Business Review. The Ann Arbor paper early announced plans to close its Ypsilanti bureau and to slash pages and sections in an effort to control costs.

Miscellany

Outsell’s Ken Doctor has some encouraging news for newspapers. “It’s a shrinking business that only looks like it is dying,” he tells Media Life. “The U.S. newspaper business will still take in some $40 billion in revenues in 2008.” Doctor believes some papers will close and many may scale back frequency in coming years in order to align expenses with smaller revenues. However, he expects the business to come back, even the devastated classified advertising business. “Forty percent of the newspaper industry is partnering with Yahoo, and we should see a good Yahoo bump in online display ads,” Doctor says. A lot of retraining will be needed, though.


Preliminary research by Middleberg & Associates and the Society of New Communications Research shows that 100% of reporters under 30 agree that new media and communication tools are valuable journalism tools. But only 40% of journalists over 50 year agree with that statement. There is no more change-averse animal than an old newsman. You can still take the survey here.


The Daily Triplicate of Crescent City, Calif. celebrates awards from the California Newspaper Publishers Association by trashing the slipshod tactics most awards programs use to select winners. Its tone might sound a bit snarky, but our experience is that the point is valid.


In case you didn’t see this comment from last week, journalism professor Robert Hodierne at the University of Richmond has been commissioned by American Journalism Review “to survey folks who left the newspaper business under circumstances other than voluntary — laid off, bought out, etc. I’m spreading the word about this survey in every way I can and if you guys could help me spread the word I’d be grateful. Take the survey here.


Newspaper Death Watch editor Paul Gillin is interviewed on The Radio Ecoshock Show about what’s ailing newspapers and what will fill the gap. You can skip the description and listen to the short interview here.

By paulgillin | November 12, 2008 - 8:48 am - Posted in Facebook, Fake News, Google, Hyper-local, Solutions

Michael Rosenblum

Here are a couple of interesting ideas about the future of journalism that we thought were worth reading/viewing.

The Online Journalism Blog has clips of video visionary Mark Rosenblum addressing the Society of Editors conference this week. Rosenblum ditched a top job at CBS to go out on his own and demonstrated that a single journalist with a video camera and a Macintosh can duplicate the work of an entire television video team at a tiny fraction of the cost. He has spent the last six years helping organizations like the BBC and the Voice of America reinvent themselves as foundries of video journalism.

Any idiot can operate a video camera, Rosenblum says in colorful and often off-color language. You don’t need news trucks or production teams or half-million-dollar editing consoles. Give reporters a videocam and a Mac, train them how to use the technology and send them out to find stories. They can even work out of their homes. It’s that drop-dead simple. “You are not in the newspaper business,” he says. “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.”

Rosenblum urges editors to embrace new technologies instead of worrying about how to monetize them first. We’re not going back to the way things were, so move ahead with confidence. Transform your newsrooms into multimedia centers and decentralize your organization. “You are magnets for talent,” he tells the editors. So do something with it. “You will not survive unless you have the courage to embrace this new technology and go for it all,” he concludes. There are three videos. We found the first to be most illuminating.

Maegan Carberry files a report from the Web 2.0 Summit for Editor & Publisher, scolding the newspaper industry for not leading change and enabling conversation between their readers. “What is a journalist if not someone who hopes to enable others with the information they need to solve the problems of our time? To connect individual citizens with their communities? Shouldn’t newspapers be the ones championing this enterprise?” she writes.

Carberry tells of election night coverage that combined Twitter, Digg and Current TV to enable viewers to effectively control the information they were consuming. Too many mainstream media reporters still regard these tools as something they use to enhance their work, she says. What they don’t realize is that the tools  are central to the experience that media companies need to give their constituents. She also has a nice list of interesting Twitter pundits to follow.

Miscellany

Canadian correspondent Mark Hamilton rounds up the latest financial news from media companies north of the border. It isn’t pretty. Another Canadian, National Post‘s Jonathan Key, outlines the three print models that will survive the newspaper collapse. Okay, we won’t keep you in suspense. They are: business media (The Economist), premium upscale media (The New Yorker) and hyper-local media (your community newspaper).


Steve Outing quotes a missive he received from a retired management consultant whose observations should be relevant to the industry honchos gathered behind closed doors in Reston tomorrow: “Newspapers are cutting staff and in so doing, totally curbing their capability to produce a quality product and thereby even have a chance to survive. The result is an ever deepening and ever tightening death spiral.”


The Charlotte Greensboro News & Record has offered all its employees a buyout in an effort to reduce its staff by 8 to 10%, according to a haiku-like story on the paper’s website.


The Associated Press is launching two youth-oriented mobile websites via Virgin Mobile. AP Entertainment and CUBI (“Can You Believe It?”) will offer the “latest film, TV, and music news,” and “off-the-beaten-path news from around the world,” respectively.

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By paulgillin | November 10, 2008 - 7:56 am - Posted in Facebook, Fake News, Google

E.W. Scripps Co. joins the growing ranks of newspapers that are cutting broadly across their portfolios. The company will lay off about 400 people as it struggles with profits that plunged from $16.6 million a year ago to a loss of $21 million in the most recent quarter. Editor & Publisher reports that layoffs have already happened at Scripps-owner papers in Knoxville, Tenn. and Evansville, Ind. The National Press Photographers Association has more details on where the cuts are coming, including elimination of 20% of the newsroom in Ventura, Calif. Other newspaper holding companies that have cut broadly in recent months include Gannett and A.H. Belo.

Looks Like a Newspaper, Smells Like a Newspaper

They’re having a good old-fashioned hockey brawl in Toronto over the publication at left. It’s called Our Toronto (no, you won’t find it online anywhere) and it’s a quarterly communication from the mayor’s office that looks an awful lot like a newspaper. Or at least some city council members and watchdog groups think it’s awful. They use terms like “travesty,” “offensive propaganda” and “Pravda” to describe what Mayor David Miller says is simply an honest attempt to inform citizens about what’s going on in their city.

Our Toronto will be mailed to residents’ homes and also published online and translated into languages ranging from Chinese to Urdu. The editor is city communications director Kevin Sack and Mayor Miller will have a column in each issue. The cost to the taxpayers is about $850,000 a year.

Debate centers upon whether this is a propaganda sheet masking as a legitimate news organ or simply a propaganda sheet. Critics complain that all the content is positive about the mayor, but Mayor Miller says he’s simply doing what every other elected official does in providing facts and updates to his constituents. In any case, it’s interesting to see somebody getting into the newspaper business these days.

Miscellany

Too little, too late. The American Press Institute will host a “Crisis Summit” for the newspaper industry this week. Executives will gather behind closed doors to ponder what to do to reverse the industry’s downward spiral. Session leader James Shein says one of the purposes of the head-knock will be to “illuminate for newspaper industry leaders the urgency of their situation.” If any of those leaders still need to be illuminated in this respect, then shareholders should be demanding their heads on a plater.


Barack Obama’s win caused a big one-day surge in newspaper sales as people scrambled to get souvenirs of the historic event. One opportunist was asking $2,000 on eBay for a copy of the Charlotte Observer, of all things. Perhaps attendees at the API Crisis Summit can come up with ways to create more big news events so they can sell out at the newsstand and make a killing on online auctions.


Mark Gunther tells the encouraging story of a nonprofit organization that is funding entrepreneurs to solve pressing social problems, including the decline of traditional media. The group is called Ashoka, and among its investments are several citizen journalism organizations around the world. Gunther has details and links.

And Finally…

Sam Zell could be stuck with the Chicago Cubs for a while. The Wall Street Journal reports that the real estate billionaire-turned-newspaper magnate may be foiled in his effort to sell the storied franchise for $1 billion, the victim of a plunging real estate market and dried-up sources of capital. So Zell, who has said he’s not a baseball fan, could end up with a 50% stake in America’s Most Frustrating Team for some time to come. Perhaps that was on his mind when this photo was snapped during Game One of the National League Division series, where Chicago was swept in three games by a Dodger team that had won 13 fewer games during the regular season.

By paulgillin | November 7, 2008 - 8:20 am - Posted in Facebook, Google, Hyper-local, Solutions

Always-provocative Editor & Publisher columnist Steve Outing proposes that publishers need to change their definition of news. Those Twitter and Facebook feeds that stream information about what your friends are having for lunch? That’s news, Outing says. Only most professional editors don’t consider it that. If information doesn’t have a wire-service imprimatur or at least the watermark of a professional writer, it doesn’t quality as news.

But guess what? Customers don’t care. To them, advice from friends is at least as valuable as advice from a news pro. The popularity of social networks and Twitter attests to that. Professional publishers need to tap in to this phenomenon, but they’re too addicted to conventional definitions of news to make that happen, Outing suggests. They’re missing the boat and the market is passing them by.

Outing nails it. For a great perspective on the popularity of social networking read this piece on “ambient intimacy” from the International Herald-Tribune. Clive Thompson explains the value of sustaining relationships through casual awareness of what others are doing.

Twitter and the Facebook News Feed bring new breadth to this concept, enabling people to glimpse others’ lives through occasional insights into their everyday activities. This intimacy becomes addictive. People who initially reject the News Feed as too intrusive or the constant stream of Twitter chatter as too overwhelming often find themselves drawn in to the point that monitoring the stream becomes engrossing. It’s an experience that appeals to basic human instincts.

The 18-year-olds who log on to Facebook 15 times a day are telling us something. Their friends network is their news stream. As we all know by now, they are rejecting packaged media in favor of a jumbled, unpredictable gush of information from all kinds of sources. They choose who to listen to. If publishers aren’t in the news stream, they’re irrelevant. Outing is proposing that publishers could be the source of the news stream, mixing packaged content from professional sources with ambient chatter from individuals. Of course, Facebook is already pretty well entrenched, but it’s not very localized. Publishers could still transform their websites into something more than a print archive with a few blogs wrapped around it.

Miscellany

More layoffs at the Boston Globe. This time, 42 people in the advertising, circulation, marketing and production departments lost their jobs, or a little less than 2% of the 2,450-person workforce. That’s a bloodbath, says the hyperbolic headline in rival Boston Herald, which should know about bloodbaths. No newsroom jobs were cut. The ranks of the idled reportedly include several senior managers, although no one named names. The Boston Phoenix has the memo from Globe publisher Steve Aimsley. The Globe‘s website is now also reporting to the Globe instead of to The New York Times, which kind of makes sense. And in unrelated news, the newspaper’s truck driver’s union rejected an offer of a 5% pay cut and less vacation. The Globe reported the fourth-worst percentage circulation decline among the top 25 US newspapers in the most recent numbers from the Audit Bureau of Control.


The Redding (Calif.) Record Searchlight is laying of 12 people, or about 6% of its workforce. No newsroom jobs were affected and the publisher says the paper’s financial position is strong. Read the delightfully random comments from readers, who attribute the layoffs to everything from the Bush administration to yellow journalism, although not to the 85-lb. salmon carcass that is the paper’s most e-mailed story of the day.


Reuters says the outlook is worsening for Canadian newspapers. Ad revenue at the Toronto Star fell 8.5% in the most recent quarter on top of an 18% jump in newsprint prices. Canwest, which is Canada’s biggest publisher of daily newspapers, can cut back print runs of the National Post daily in western provinces. The Canadian dollar is off more than 20% in the past year, which can’t help.


There are rumors that the Jackson (Miss.) Clarion-Ledger is planning more layoffs in early December, even as it invests in a new lifestyle website that will show pictures of all the bars in town. Jackson Free Press Editor Donna Ladd sums up: “So there’s money for drunk pictures, but not for news coverage.”  Well, what the heck is wrong with that, Donna? Commenters pile on. Ladd says the C-L Scroogishly cancelled the $50 holiday bonus and is asking staffers to pay for coffee while hardwood floors are installed in the publisher’s office.


Did you know US News & World Report is going to go monthly? We didn’t even know it was still around.


News After Newspapers says what we’ve been saying for two years about the outlook for the newspaper industry, but the author sees hope in a new class of product.

And Finally…

This isn’t news, at least as professional editors define it, but the Top 10 Strangest Coincidences on 2Spare.com is worth the waste of time. In fact, the whole site is a time sink. You can get lost for hours. We don’t know how much of the information is true, but this is the Internet and you shouldn’t believe what you read, anyway.

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By paulgillin | October 30, 2008 - 2:37 pm - Posted in Facebook, Fake News

Rupert Murdoch biographer Michael Wolff says the media mogul was unaware that Dow Jones had an enterprise business when he purchased the company two years ago. “He wanted the newspaper, and the fact that afterward he found himself with businesses that were rather more successful than the newspaper business, was surprising,” Wolff told a conference.

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. “We only put 20 percent of our content on the Web,” says on association executive. Of course, there’s a train wreck waiting down the line at some point, but in the meantime, publishers can plan to gracefully manage their properties into oblivion in lock-step with demographic trends.

The Pacific Northwest Newspaper Guild pried a nice contract settlement out of the Seattle Times: a 6% raise over two years. That money’s gotta come from somewhere, though, and staffers are bracing for an “ugly” layoff announcement in the near future.

We’re late reporting this one (little things like making a living do take their toll), but the New York Times Co. reported that profits fell 51.4% on a 14.4% decline in ad revenue in the third quarter.  Standard & Poor’s responded by lowering the company’s debt to junk bond status. Print advertising was off 18.5% and online advertising was up 10%. Online revenue now makes up over 12% of total sales at the company. The board also said it is considering writing down the value of assets in its New England Media Group, which includes the Boston Globe, $150 million. The Times Co. originally paid $1 billion for the group.

Traffic to newspaper websites was up almost 16% in the third quarter, according to the Newspaper Association of America. Page views were up 25%, making it the best quarter for newspaper website traffic since the organization began tracking those figures in 2004. Interest in the political campaigns and the ongoing turmoil on Wall Street were cited as likely drivers of the traffic surge. It remains to be seen how year-over-year comparisons will fare once the election is over.

Threatened Journalist has an uplifting story on San Diego Union-Tribune ex-pats who are doing quite nicely, thank you. One is a communications manager for the Port of San Diego, another works in media relations for the University of Southern California and a third is a Methodist minister in Mission Valley. All are wistful about their former jobs in the pressure-packed newsroom, but they say they have no regrets. The way the industry was going, there wasn’t much future in the business. The author relates other happy landings: “Former metro reporter Liz Neely just landed a job as an investigator for a law firm. Former business reporter Craig Rose is working for City Attorney Mike Aguirre. Former columnist Gerry Braun is working for Mayor Jerry Sanders. Former reporters Chet Barfield and Mark Sauer are working for Councilwoman Donna Frye. Former North County reporter Lisa Petrillo is working at Children’s Hospital. And the list go on.” So there is life after newspapers!

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