As 2009 draws to an end, about the best thing anyone in the US newspaper industry can say about it is, “Thank God it’s over.”

This was unquestionably the worst year in the history of the business. Circulation plummeted to pre-World War II levels and advertising revenues hit regions not seen since the Johnson administration. The year opened on a dismal note with the closure of major dailies in Denver and Seattle and threatened shutdowns in San Francisco, Boston and Chicago. Many pundits predicted a bloodbath with dozens of dailies folding during the year.

But then the unexpected happened. Union concessions and deep cost cuts brought the Boston and San Francisco papers back from the brink. While smaller dailies did give up the ghost in Tucson and Ann Arbor – and more than 100 weeklies shut down – the doomsday scenario never occurred. Instead, publishers came to grips with the reality of their plight and made earnest attempts to stabilize their operations. In a January column on WallSt.com, former Financial World magazine and Switchboard.com president Douglas McIntyre listed “Twelve Major Media Brands Likely To Close In 2009.” In fact, only one – Gourmet magazine – did.

As the year wore on, signs emerged that sales declines are slowing and circulation revenue from the core of loyal readers is making up some of the advertising gap. A broad consensus has emerged that the ink-on-dead-trees model is mortally wounded, giving publishers permission to turn their attention from saving a dying industry to managing it profitably downward while investing in new ventures that have growth potential.

Creative revenue ideas ranging from pay walls to behavioral targeting sprung up this year. Enrollments in journalism schools hit all-time highs and undergrads said they are approaching their careers with the idea of building personal brand rather than working for a big metro daily. Many industry veterans applauded their spirit.

As the second decade of the new millennium begins, there is a palpable sense of optimism, not only about the economy but also the potential to reinvent journalism. It’s an attitude we have tried to encourage in our own small way, for this blog long ago turned its attention from death to rebirth.

We’ll be posting less frequently during the first six months of 2010 as we tackle a new book on business-to-business social media. Your comments and many words of encouragement have been a constant source of delight in this otherwise dreadful year. We wish you better times in 2010. Keep your chin up.

For now, here are some of the more memorable items from the 178 entries we posted this year, presented in no particular order

Uppers

• Doc Searles presented a well-reasoned argument why journalism isn’t disappearing from the earth but simply following the path already blazed by business. Much as personal computers and open source software moved computing innovation from the center to the ends of the network, journalism is undergoing a similar metamorphosis, he wrote. Journalism isn’t going away so much as being democratized.

• Life magazine published a delightful collection of classic photos – like the one of Los Angeles gangster Mickey Cohen at right – about the contribution of newspapers to our culture under the banner of When Newspapers Mattered.

• The Library of Congress offered free access to a searchable database of dozens of daily newspapers stretching back to 1880. Nearly 1.5 million pages have already been scanned.

• A team of publishing veterans that includes Backfence founder Mark Potts and super-blogger Jeff Jarvis announced GrowthSpur. The startup is building a back-end business system that it hopes will enable bloggers and small publishers to quickly monetize their businesses while building a network that multiplies opportunity for every member.

• A team of veteran journalists and news technologists joined forces to create a technology to enhance the Web browsing experience while creating a new revenue stream for content producers. Startup CircLabs is developing a tool that learns from the user’s online behavior to deliver recommendations for relevant content. Founders include three top officials from the Donald W. Reynolds Journalism Institute at the University of Missouri.

• News-editor-turned-Silicon-Valley-entrepreneur Alan Mutter proposed ViewPass, a subscription service that would aggregate editorial content and collect visitor data that could be used to sell higher-priced ads. Mutter estimated that the system could more than double the CPMs that publishers charge advertisers and would manage copyrights more effectively than the current haphazard system.

• Former Rocky Mountain News Washington correspondent ME Sprengelmeyer penned a splendidly written essay about the joys of rediscovering his journalist roots as publisher of a small weekly newspaper.

• In a moving retrospective, Christian Science Monitor Editor John Yemma reminded us why he admired Walter Cronkite.

• “My beat at The Globe and Mail is the dead,” wrote Sandra Martin in a superbly written piece on the craft of obituary writing, one of the least understood and most often satirized disciplines in journalism.

• Writing in The New York Times, David Carr presented a glass-is-half-full perspective about the future of journalism. Carr observed that the new breed of technology-enabled young journalists see the collapse of media institutions as an opportunity to make a name for themselves based upon merit rather than survival. “The next wave is not just knocking on doors, but seeking to knock them down,” he wrote.

• A new Bay Area nonprofit was funded to the tune of $5 million by a local investor. The venture is a collaboration between public broadcaster KQED and the Graduate School of Journalism at the University of California at Berkeley.

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

Downers

• The New York Times published a jaw-dropping correction from its July 17 “appraisal” of Walter Cronkite’s career. Among the eight errors in the story where Wikipediable factoids such as the date of Martin Luther King, Jr.’s assassination. Ombudsman Clark Hoyt was blunt in his explanation: “A television critic with a history of errors wrote hastily and failed to double-check her work…editors who should have been vigilant were not.” The critic, Alessandra Stanley, has a history of being so careless with facts that in 2005, “she was assigned a single copy editor responsible for checking her facts.”

• The owner of Editor & Publisher, which has covered the newspaper industry for 125 years, announced that it will shut down the magazine.

• The bankrupt Tribune Company sent “14 reporters, columnists and photogs to this year’s Super Bowl, even though neither Super Bowl team came from a city where Tribune actually has a newspaper,” observed Mark Potts.

• The Printed Blog, a venture by serial entrepeneur Josh Karp that sought to flip the online publishing model by delivering blogs in print, shut its doors after just a few months.

• The Journal News of Westchester County fired all 288 employees and invited them to re-apply for 218 jobs. Managers had two weeks to conduct interviews and decide who got to stay.

• Many publishers apparently took advantage of recent changes to Audit Bureau of Circulation (ABC) rules to overstate their real readership numbers. The rules changes enabled publishers to count “bundled” subscriptions of paid and online editions as two subscribers, even if only one person was doing the reading.

• Ahwatukee (Ariz.) Foothills News staff writer Krystin Wiggs told of being victimized by an elaborate hoax concocted by a young man who claimed to be a gifted and successful chef. The man convinced Wiggs that he had won scholarships to culinary school and landed a sous chef job at a top restaurant at the age of 21. He even enlisted an accomplice to masquerade as head chef at the restaurant for a phone interview.

• BusinessWeek was put up for sale for $1. It was no bargain, since the legendary newsweekly was on track to lose $75 million this year. Bloomberg eventually paid up and then took a hatchet to the senior staff.

• After a tense four-month staredown with The New York Times Co., the Boston Globe’s largest union voted to accept a package of pay cuts, benefit reductions and other concessions that was worse than the one it had rejected a month earlier. The union chief was later charged with misappropriating funds by, among other things, faking a countersignature on his own paycheck.

• Sydney Morning Herald technology writer Asher Moses was publicly embarrassed over comments he made about a sex scandal involving a prominent former rugby star. Although the comments were made during his off hours, Moses’ impartiality was widely questioned.

• Amazon.com had a chance to win friends among the ranks of newspaper publishers by offering paid subscriptions to their products via the Kindle e-reader. Unfortunately, Amazon’s onerous licensing terms entitled it to keep 70% of the subscription fees.

• Todd Smith, who was shot on the job while working as a reporter for the Missouri-based Suburban Journals chain of newspapers, was called to a meeting at headquarters on April 15. Smith thought that maybe the staff had won an award for coverage of the massacre. Instead, he learned that he and several others were being laid off.

• Boston Herald Sunday editor Tom Mashberg reprinted an e-mail exchange between him and Keith O’Brien, the author of a harshly critical story about the Herald that appeared in the rival Boston Globe. The e-mail outlined O’Brien’s intention to include negative comments about the Globe in his story as well as the fact that the Herald was profitable while the Globe wasn’t. None of that information appeared in the final piece. “Looks like the editors got hold of this and turned it into a hatchet job,” Mashberg wrote.

• Washington Post publisher Katharine Weymouth (right) canceled plans for a series of dinners at her home after an overzealous Post marketing executive issued flyers positioning the events as a way for sponsors to buy access to the paper’s journalists and members of Congress. Weymouth said the promotions “should never have happened.”

• French President Nicolas Sarkozy said his government would double its advertising in print and online newspapers in an effort to prop up an industry that many people believe needs a radical overhaul more than money. That’s on top of previously announced subsidies that give every 18-year-old French citizen a free newspaper subscription.

• The Chicago Tribune’s marketing department launched an experimental project to seek feedback on stories that hadn’t yet been published or even fully reported. A group of 55 reporters signed an angry e-mail in protest. Editor Gerould Kern issued a statement calling the experiment “a brief market research project.”

• A survey of 1,400 people by Britain’s YouGov found that media people consume an average of 44 drinks a week, or almost twice the recommended maximum.

• In a Vanity Fair profile of New York Times Co. CEO Arthur Ochs Sulzberger, Jr., Mark Bowden described one management offsite exercise in which Times Co. executives played a game that challenged them to decide between safe choices and riskier but potentially more rewarding long shots. An employee who had seen many groups play the game observed, “This is the most conservative group I have ever seen.”

• The Houston Chronicle devoted just 208 words to news that it was laying off 12% of its staff, or nearly 200 people. In fact, the Chronicle didn’t even mention a body count. A Wall Street Journal story was the source for the number.

• A press release from the Washington Times, as reprinted on Talking Points Memo, also buried the lead about its own bad news: “The Washington Times today announced that it will begin producing a more focused Monday through Friday edition designed to feature its most distinctive news and opinion content.” In other words, it was killing the Sunday edition.

• Kubas Consultants polled 500 newspaper executives in November and found them to be optimistic that the worst is almost over. Blogger Alan Mutter e-mailed the researcher who conducted the survey and learned that even he didn’t believe the resutls. “Optimism is better than slitting your wrists,” reasoned Ed Strapagiel.

• A new newspaper in Detroit, the Daily Press, published just five issues before hitting “a bump in the road” and suspending further operations until the new year.

• ZDNet blogger Richard Koman alleged that Yahoo had passed the names and e-mail addresses of hundreds of thousands of bloggers to Iranian authorities during the country’s controversial election. It turns out Koman‘s unnamed source for the story was an Iranian blogger with a vested interest in spreading misinformation. Paul Carr ranted about the incident and ZDNet retracted the entry and apologized.

Signs of the Times

• The online-only Huffington Post set up a small investigative unit to examine the nation’s economy. The online news site is collaborating with The Atlantic Philanthropies and others on the Huffington Post Investigative Fund with an initial budget of $1.75 million and a staff of 10 investigative journalists to coordinate work done by freelancers.

• HuffPo also began writing two different headlines for some stories and showing them randomly to viewers for five minutes. After that time, the headline that generates the most clicks becomes the default.

• The Providence Journal took hyperlocal to heart by moving all its local coverage to the front and banishing national and international news to a separate section.

• TV stations in Milwaukee, Lancaster, Pa. and Little Rock opened their daily news budget meetings to outsiders through video, live blogs and Twitter. News directors said the experiment has been a mixed bag, but has resulted in some solid news tips.

• The New York Times shattered tradition in January with a front-page strip ad for CBS. The Boston Globe followed suit just two weeks later. And the Los Angeles Times ran a page-one ad (at right) in a position and typeface that some people believed could be mistaken for a news story. Executive editor John Arthur called the ad “horrible” and “a mistake.”

• Science and technology columnist Dave Brooks of the Nashua Telegraph handed over partial control of his blog on the Telegraph website to the University of New Hampshire news service so that it could “post items about science and social science research at the university…directly on GraniteGeek whenever it wants.” Said Brooks, “Slightly to my surprise, reaction in the newsroom has been uniformly favorable.”

• Reader’s Digest filed for Chapter 11 bankruptcy protection.

• Three Connecticut alternative publications – the Hartford Advocate, New Haven Advocate and Fairfield County Weekly – outsourced all editorial content for one week’s issue to freelance journalists in India. Editors assigned journalists 7,700 miles away to principally cover local news, entertainment and culture.

• Writing under the pseudonym of @TheMediaIsDying, microblogger Paul Armstrong racked up more than 21,000 followers for his stream of tweets about the troubles of mainstream media.

• Several blogs were started to tote up the gloomy layoff numbers across the US. They included The Layoff List, Layoff Blog, Jobless and Less, The American Lawyer Layoff List and the TechCrunch Layoff Tracker.

• One print paper did just fine this year. The Slammer boasts a newsstand profit margin that “is four times that of most local dailies, and its circulation has grown to 29,000 – up nearly 50 percent from 20,000 just last year,” wrote The Christian Science Monitor. The Slammer is full of mug shots, crime reports and allegations of misdeeds and carries the slogan “All Crime, All the Time.”

• The Wall Street Journal launched an interactive map showing “adverse events at the top 100 newspapers” since 2006.

• Condé Nast closed four magazines, including the 70-year-old Gourmet. September ad page figures for the publisher showed a stunning fall of nearly 1,700 pages.

• The 12,000-circulation Newport (R.I.) Daily News instituted a paywall that requires online visitors to pay nearly two-and-a-half times as much for a yearly subscription as print subscribers do. “Our goal was to get people back into the printed product,” publisher Albert K. Sherman, Jr. told Nieman’s Edward J. Delaney.

• More newspapers began pooling resources to share stories, with consortia forming in Florida, Tennessee, New York and New Jersey. In New York, five newspapers banded together to exchange content in the largest such arrangement since the share-nicely trend began in 2008. Bloomberg and the Washington Post did a deal to create the Washington Post News Service With Bloomberg News. The alliance includes a revenue-sharing agreement to create a co-branded online business section on the Post’s website in the first quarter of 2010.

• In Moscow, the the GazetaPacket began delivering news, crosswords, recipes and advertising on printed paper bags.

Numbers

• A Pew Research study in January found that the Internet passed newspapers as the preferred source of news among Americans. The survey of 1,489 adults found that 40% get most of their national and international news online, compared with 35% who rely primarily on newspapers. Television continued to be the number one choice, at 70%. Among people under 30, however, the Internet is now as popular as television for news.

• In March, Mark Potts toted up the market capitalizations of publicly held newspaper companies in the US and came to a striking conclusion: Their combined value was just $1.3 billion, or a little more than the $1.1 billion that The New York Times Co. paid for the Boston Globe in 1993. Valuations had recovered somewhat by year’s end.

• One-third of Americans under the age of 40 told Rasmussen Reports that Comedy Central’s Daily Show with Jon Stewart (right) and the Colbert Report are replacing traditional news outlets.

• A survey of 95 editors by the Associated Press Managing Editors found that newsroom workers between the ages of 18 and 35 were the most likely to be laid off, despite the industry’s need to increase its appeal to precisely that age group.

• Nevertheless, journalism schools saw an astonishing surge in enrollments. “According to an annual survey by the University of Georgia, the number of undergraduates enrolled nationwide in journalism and mass communication schools jumped more than 41% between 1997 and 2007,” reported the Capital Times of Madison, Wisc.  Also, Forbes.com noted that journalism schools at Columbia University, the University of Maryland and Stanford University saw significant spikes in applications in 2008 — 30 percent, 25 percent and 20 percent, respectively.

• A poll by Zogby International found that only one in 200 people believes newspapers will be a dominant source of information in 2014. In addition, 56% of adults said that if they were only allowed one source of news, they would choose the Internet, compared to 41% for television, newspapers and radio combined.

• Martin Langeveld calculated that in 1940 publishers distributed 118 newspaper copies for every 100 households. Today, the number is 33 copies per 100 households, down from 53 less than a decade ago.

• Ninety-three percent of all newspaper sales “can now be attributed to kidnappers seeking to prove the day’s date in filmed ransom demands,” reported The Onion in a hilarious spoof of the industry’s downturn.

Notable Quotes

“Our newspaper’s biggest revenue source today is foreclosure notices.”

-Clifford Buchan, editor of the Minnesota-based weekly Forest Lake Times.

“That’s like asking someone in another business if they want to get vaccinated with a live virus.”

-Tribune Co. CEO Sam Zell, commenting on the prospect of finding a merger partner for his bankrupt company.

“Most people would hear you say that, and they would say, you know, he doesn’t — with all due respect, you don’t get it.”

-Charlie Rose to Mortimer Zuckerman regarding the latter’s plans to continue publishing the New York Daily News because, among other things, his 11-year-old daughter is going to be the next publisher.

“Students will work to make their blogging more vivid using the fundamentals of the craft, such as imagery, foreshadowing, symbolism, and viral paparazzi photos of celebrity nip slips.”

-McSweeney’s Internet-age writing syllabus and course overview

“JFK assassin8d @ Dallas, def. heard second gunshot from grassy knoll WTF?”

-The UK’s Guardian in an April Fool’s Day announcement that it would cease print publication after 188 years and go Twitter-only.

“There was nothing [in these newspapers] of remote interest [to] just about any sentient being. But that’s not what the paper’s editors were aiming for. The point is that there was nothing there that could possibly offend anyone.”

– Bill Wyman’s blunt, sometimes savage essay on Five Key Reasons Why Newspapers Are Failing

“I don’t know how to write an inverted pyramid story or even really what that is. I do know how to write for different platforms, be scrappy and break news. I’ve had zero important alum connections and never got an internship at a big daily. And, in hindsight, that’s probably the greatest stroke of luck I could have had.”

-BusinessWeek’s Sarah Lacy writing on TechCrunch

“As I rose through the editorial ranks of various magazines, I was encouraged to cultivate a mild contempt for readers.”

- MIT Technology Review Editor Jason Pontin in a prescription for saving print media

“The 500-year-old accident of economics occasioned by the printing press – high upfront cost and filtering happening at the source of publication – is over. But will The New York Times still exist on paper? Of course, because people will hit the print button.”

– Clay Shirky

“Newspapers are an important part of our lives, not to read, of course, but, when you’re moving you can’t wrap your dishes in a blog.”

-Stephen Colbert quoted in the Columbia Journalism Review

“There’s an enormous amount of vanity among journalists who forget that people buy newspapers not just for journalism but crosswords, cartoons, TV listings and indeed advertising.”

-Paul Bradshaw on Online Journalism Blog

“‘Jon and Kate’ for first mention, ‘Jesus, ENOUGH’ afterwards.”

@FakeAPStylebook, a Twitter-based parody that has quickly amassed more than 82,000 followers.

“Completion of a tower that will give Phoenix Sky Harbor International Airport controllers technology and visibility to monitor air traffic for the foreseeable future, settling a contract that will keep the controllers on the job and redefining air space corridors, are keys to the Valley airport’s future, Robert Sturgell, FAA deputy administrator, said Thursday.”

-Unattributed quote cited by former Baltimore Sun copy chief John McIntyre as an example of the tortured inverted pyramid prose that is driving readers to blogs

“It’s safer to make an outrageous statement about Saddam Hussein than to make a mild criticism of a local car dealer. It’s something newspapers don’t like to admit. It has always mattered who pays the bills.”

-Alternative weekly publishing veteran Jeff vonKaenel

“This is the thought of the day and this is where you put the thought of the day as if anyone has a thought for the day. And can’t work out what the hell is going on. But who knows what is happeningishness. – Jesus Mark 7:21-23 (Bible for Today)”

-Dummy copy mistakenly published as the Thought for the Day in Australia’s Advertiser

Images

The AP posted this photo of discarded newspaper racks languishing in a San Francisco junkyard. Updated: This was the consequence of a new city ordinance banning stand-alone newspaper racks. However, the image acquired particular power in light of the industry’s plight.

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An ad created by the North Carolina Press Association to urge citizens to fight legislation that would allow local governments to post public notices on the Web instead of in local newspapers appeared to portray newspaper readers as old and technophobic.

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Christopher Ave, the political editor at the St. Louis Post-Dispatch, isn’t a copy editor but he’s sympathetic to the pain of wordsmiths around the country who are falling victim to layoffs. He created this clever music video to dramatize their plight.

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This monologue by a resident of Santa Cruz, Calif. testifying before the city council about, we think, vegetables, raises questions about whether as a population we can, you know, express stuff.

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A 26-year old Berkeley musician named Jonathan Mann joined forces with the staff of the East Bay Express to come up with a solution to newspapers’ business problems. Wait till the end to hear it.

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The Seattle Post-Intelligencer and the Rocky Mountain News took very different approaches to commemorating their final issues.

It hurts to read Bill Wyman’s blunt, sometimes savage piece on Five Key Reasons Why Newspapers Are Failing, but the veteran journalist says some things that need to be said. Unlike recent analyses that have mainly focused on the industry’s business challenges, Wyman aims his guns squarely at the editors and reporters whom he believes fostered a culture of risk-aversion and self-absorption even as the need for change grew urgent. Although the piece is heavy on anecdotes and light on statistical evidence, we found ourselves nodding in agreement frequently as Wyman ticked off a list of editorial missteps.

Perhaps the most damning point in the 9,000-word opus is when the author lists headlines from a “recent” (actually, it was well over a year ago) features section of an unnamed local newspaper (actually, it was the Arizona Republic). They include: “Post office food drive,” “Fight Crohn’s and colitis,” “Mom and Estában,” “Healthful salsa non-guilty pleasure,” and

“Great gifts for teachers.” The point: “There was nothing there of remote interest [to] just about any sentient being. But that’s not what the paper’s editors were aiming for. The point is that there was nothing there that could possibly offend anyone.”

Wyman hammers home this point repeatedly. In his view, advertisers and editors joined in an unholy alliance decades ago in which watchdog journalism was sacrificed to reliable and profitable ad contracts, stable circulation and don’t-rock-the-boat blandness. As a consequence, the guiding principle in editorial departments changed from informing the public to offending as few people as possible. Causing a reader to cancel a subscription was the ultimate sin. Better to under-inform than to antagonize.

As a longtime arts critic, Wyman has some stories to back up the premise. He tells of one arts editor who instructed him to avoid negativity in reviews because readers didn’t want to “hear bad things about their favorite artists over breakfast.” Reviews sections in local papers are almost unfailing positive, or at worst blasé, he notes. Arts sections are filled out with snippets from those stanchions of informational blandness: Press releases.

“Let’s be honest. Most newspapers in the U.S. aren’t watchdogs…Most papers are instead lapdogs, and the metaphorical lap they sit in isn’t even that of powerful interests like their advertisers…The real tyrant the papers served was the tender sensibilities of their readers,” he writes.

Tangled Web

The piece is equally damning in its criticism of newspaper websites, which Wyman believes are too often ponderous, difficult to use and inwardly focused. Search results return rivers of irrelevant promotions that the user doesn’t care about and that exist only to serve the interests of internal constituents, he says. External links are far too rare and readability is managed by people whose expertise is mostly in print. As a result, newspaper websites are some of the least useful properties on the Web, which is a shame because their content should be some of the most useful.

Wyman’s piece makes valuable reading, if only to hammer home the problems of a change-averse culture that still exists in many metro dailies. In part, that attitude is a hangover of management greed that has steadily pared back resources in the interest of maintaining 20% profit tax margins. However, the evils of management are a horse has been beaten to death pretty thoroughly by now. What’s different about Wyman’s perspective is that he takes editors and reporters to step to task for not doing more with the resources they have. Pack journalism and the not-invented-here mentality frustrate efforts at meaningful change. Last week’s acquisition of EveryBlock by Microsoft and MSNBC – rather than by a newspaper company — is just another indication that these businesses don’t move quickly enough.

Bloggers’ Harsh Glare

One insight that we found particularly illuminating is Wyman’s observation that the freewheeling — some would say reckless — culture of the blogosphere has cast a harsh light on the mediocrity that many newspapers have dished out for years. “The Web mercilessly exposes the flaccidness of the content of most papers. It creates a straightjacket for them: As they desperately bland themselves out on land, the material they have on hand to impress in cyberspace is correspondingly pallid,” he writes.

This point deserves special attention. Journalists like to trash talk bloggers for lacking basic journalism skills, but for all its weaknesses, the blogosphere is nothing if not interesting. Put another way, the sudden availability of massive choice exposes boring information for what it is. Big media could get away with mediocrity for many years because readers had no choice. Now that they do, the weakness of the products is magnified.

Wyman’s piece is far from perfect, being at times more tirade than exposé. But it is thought-provoking and — dare we say it — interesting. To hear him tell it, that’s a characteristic that’s all too often missing from the publications he criticizes.

Miscellany

After six quarters of stomachturning losses, newspaper companies finally reported some stability in the most recent quarter, and even a couple of upside surprises. The Wall Street Journal asks if the recovery is sustainable and largely concludes that it isn’t. One unexpected factor in the industry’s recent good fortune has been the plummeting price of paper, which is down nearly 40% in the last nine months. But the Journal expects those prices to come back as the market winnows out some weaker players. It also points to recent research indicating that marketers are more likely to cut newspaper and direct-mail spending than any other line item in the name of increasing their interactive budgets.

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Rupert Murdoch’s British newspaper company plans to close the free daily thelondonpaper after reporting a ₤13 million pretax loss. Thelondonpaper is one of two afternoon free dailies, which are targeted mainly at young commuters. It lost ₤12.9 million in the fiscal year ended June 2008 on revenue of just ₤14.1 million. About 60 jobs are affected, though it’s not clear how many people will lose their jobs.

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Marty Petty, a Pulitzer Prize-winning journalist-turned-successful-publisher, will leave the St. Petersburg Times after nine years. Calling the apparently voluntary move a “business decision” that reflects the shrinking size of the newspaper, Petty said management must adjust along with employees. Petty was a member of two Pulitzer Prize-winning teams at the Kansas City Star and Times in 1982. She later joined the Hartford Courant, where she rose to the position of associate publisher. She was named the Tampa Bay Business Journal’s BusinessWoman of the Year for media in 2005.

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What do journalists and porn stars have in common? Plenty, according to a short piece in New York magazine. Jessica Pressler writes that pornographers who were making good money online just a couple of years ago are suddenly confronting a new threat from amateur videographers who are giving away all the sex you can watch for free. Once highly paid porn stars are complaining that they can’t find work and there’s little new blood coming into the system. Pressler suggests that maybe The New York Times ought to steal a page from the porn industry by focusing more on stars than on programs. That means orchestrating the careers and various activities of its best reporters instead of simply publishing their stuff.

The Columbia Journalism Review explores the changes at The Wall Street Journal that have made it an enigma among US newspapers. In an atmosphere of decline and panic, the Journal is growing both print and online subscriptions. While its advertising revenue has suffered along with the rest of the industry’s, there is a sense that this paper is doing something right. It’s “moving the needle,” as journalist Liz Featherstone notes at the outset of her 3,300-word analysis.

Moving the needle is apparently a sore spot at the Journal. Some people see the phrase as a euphemism for dumbing down the content, and their opinion has some merit. A 3,300-word analysis like Featherstone’s would have a tough time getting in the paper these days. Featherstone counted a dozen stories of over 2,000 words in the front section during a one-week period in 2007. In a more recent comparison, that total had dwindled to three. Instead, the Journal has got reporters chasing news in general and The New York Times in particular. Stories are shorter, reporters are running from press conference to press conference and the Journal no longer seems to regard its mission as being to explain capitalism. Instead, it’s becoming a hard news-driven international wire service with a specialty in business topics.

Reader Focus

Under new editor Robert Thomson (left, WSJ photo), the paper has become more focused on giving his readers what they want, even if that isn’t what the journalists like.  Featherstone snagged an interview with Thomson, who refers disdainfully to some newspapers as being written more for journalists than for their readers.  The reference is clearly to the Journal itself.

Thomson sees today’s constantly distracted, media-agnostic reader as needing quick information delivered in plain language.  Some see this approach as a heretical rejection of the principles of legendary editor Barney Kilgore, who guided the paper for 27 years and who oversaw its meteoric growth.  But others believe Thomson is simply staying true to Kilgore’s principles of giving readers what they want, rather than what journalists think they need.

The Journal story isn’t a simple one.  While Rupert Murdoch has clearly put his stamp on the organization he acquired for more than $5 billion nearly two years ago, fears that he would meddle with the paper’s editorial voice haven’t materialized.  Murdoch has also proven to be strikingly eager to support editorial quality, such as when he personally stepped in to prevent the government of China from denying a visa to a Journal Beijing reporter.

Many journalists have found themselves at odds with the new direction of the paper and have left with thinly disguised disgust.  But others are fully on board with management’s efforts to make the Journal more relevant to its audience in an effort to insure its long-term vitality.  This story is a balanced account of a journalistic institution in the midst of a transition that has torn at the fabric of its organizational values but that is clearly succeeding in the marketplace. For better or for worse.

Miscellany

There are limitations to how far one should go in giving readers what they want, of course.  The Chicago Tribune apparently stepped over that line recently with an experimental project initiated by the marketing department to seek feedback on stories that hadn’t yet been published or even fully reported. A group of reporters didn’t like this idea one bit, and 55 of them signed an angry e-mail in protest. Editor Gerould Kern quickly backtracked, issuing a statement calling the experiment “a brief market research project that tested reader reaction to working story ideas.”

The Trib went too far, says Newsosaur Alan Mutter, but the fundamental idea has merit.  Mutter sees nothing with using a little market research to shape content, even if it’s only keeping an eye on the most e-mailed stories. He relates the practice of one South American newspaper that posts stories to a website as soon after they clear editing but before they appear in print.  Editors then monitor online activity through the evening and take reader interest into account in laying out pages.

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The rule of thumb with buyouts is to take them early because the terms get worse as time passes. Now we’re seeing news organizations do away with severance packages entirely. It happened at the Reading Eagle last week, where 52 staffers were shown the door with just two weeks of health insurance coverage to tide them over. One of the laid-off employees had been with the paper for 45 years.

The Memphis Commercial Appeal just laid off 19 newsroom people without any severance, according to one of the victims, who contacted us.  What they did get was instructions on how to tap into their Guild Retirement Income Plan at a penalty of 10% plus tax withholding at 20%.  Or laid-off employees could elect a lump sum payment from the plan, which would lead them with retirement annuities of less than $10 a month, in some cases. “Will that even pay for a prescription for ’sugar diabetes’ medicine?” the former employee asks. “I’m in my 40s but everybody over 65 in my family has the ’sugar diabetes,’ as we call it here in the South.”

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The Atlanta Journal-Constitution, which has been hemorrhaging readership, has got a clever new campaign to promote coziness within the newspaper. Called “Unplug. It’s Sunday,” the promotion positions “the old-school Sunday newspaper as a refuge from the constant buzzing and beeping of smart phones, instant messages and e-mail that marks the modern workweek,” according to a short article in AdWeek. We think it’s a great idea.

And Finally…

Does Lindsay Lohan really look like Gollum from The Lord of the Rings trilogy? You decide. TotallyLooksLike.com will help you make the decision. The site has scores of photo pairs contrasting well-known celebrities with other figures who bear a striking resemblance to them, although we’re sure the likeness wasn’t intentional. Does Mary Kate Olson Totally Look Like Ozzy Osbourne? We didn’t think so till we saw the two in their separated-at-birth photo. See for yourself. You’ll be sharing the images with your friends within minutes. We guarantee it. Use Facebook.

Eric Alterman (right) lays waste to the value of political endorsements, which news organizations would have to sacrifice if they took public money. Who cares? asks Alterman, calling endorsements a “near total anachronism” in a world in which readers have so much choice of information.  Endorsements haven’t been meaningful in a long time, say Alterman, journalism scholar Kathleen Hall Jamieson’s conclusions in a 2004 study that “The direct effect of editorials does not appear to be significant…” So why is this such a hot potato in the public funding issue? The loss of the power to endorse candidates is often cited as the primary barrier to a public-funding solution for dying newspapers. In fact, endorsements work against news organizations, Alterman argues. “What endorsements do…is convince readers that the news they receive is being colored by bias expressed on its editorial pages.” And that perceived bias is a much bigger threat than endorsements that the public largely ignore. Alterman admits, reluctantly, that public funding may be the only approach that keeps journalism in the public interest alive. So get over the issue of taking sides in political debates.

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Salon.com offers similar hope in profiles of several nonprofit organizations that are struggling to get by. It profiles Voice of San Diego, MinnPost.com and ProPublica, which are three startups producing quality journalism on a shoestring budget.  Each has a somewhat different revenue model, with ProPublica existing largely at the behest of philanthropic funding while Voice of San Diego and MinnPost.com have hybrid models that include advertising, reader subscriptions and foundation support.  All three operations have had some notable successes, but the journalists who work there admit that the working conditions are demanding.

Joel Kramer, the editor and CEO of MinnPost, works without a salary and one of his reporters, Jay Weiner, traded in an $80,000-a-year job with a pension, health insurance, vacations and overtime at the Minneapolis Star Tribune for a post that pays about $700 for a 60-hour work week, with no benefits. Weiner’s motivations are altruistic. “I am so happy to not be at the newspaper,” he says. “We’re growing, there is freedom, we’re all involved in a product that we really want to make as good as possible.”

It’s exhilarating stuff, but even the leaders of these fledgling organizations admit that a publicly funded model is not the solution for big newspapers. “”Tell people to send us money,” says Kramer, in a plea that’s only half in jest.

Bostonians Confront a Globe-less Future

With its liberal bias and nudge-nudge political insiderism, the Boston Globe has long been a lightning rod for criticism in New England. But with the region now facing the prospect of losing its largest daily newspaper, people of all political stripes are rushing to its side. Bloggers rallied last week to think up ideas to rescue the paper, which the New York Times Co. has threatened to close in a few weeks if the unions don’t make dramatic concessions.

More than 20 prominent Boston bloggers rallied last week to voice their support for the Globe (we can’t find an organizing body, but Beth Israel Deaconess CEO Paul Levy lists the participants), debating ideas ranging from public funding to subscription fees. Everyone seems to agree that local ownership is a necessity, particularly since so many local institutions have been swallowed by out-of-town owners in recent years.

The problem is that no one knows of any local investors who are willing to put up the money. There were rumors of a consortium organizing to buy the Globe back from the Times Co. a few years ago, but that talk ended when the newspaper industry tanked.

The Times Co.’s demands are rankling Globe unions. Management has reportedly asked Teamsters Local 1, which represents about 250 full- and part-time mailers, for $5 million in concessions, or about $20,000 per person. Demands include a 25 percent wage cut, near-virtual elimination of company healthcare contribution, elimination of sick and holiday pay and the end of lifetime job guarantees enjoyed by about 145 mailers. This is on top of concessions by the mailers two years ago that cut average pay by about $10,000.

Meanwhile, Globe writers are doing a little rallying of their own. Columnist Scot Lehigh asked  readers last Wednesday to weigh in about the paper’s future and hundreds of them did, most with positive comments, he says. In fact, “I was surprised by how many subscribers said they’d pay more – some substantially more – for home delivery if it would help save the paper,” Lehigh says. They may soon get their wish. The Globe hiked its newsstand price by up to 40% last week. Many people also said they’d be willing to pay a fee to use Boston.com, the Globe’s successful Web venture.  Lehigh thinks that’s a great idea: “It’s time we gave them the chance,” he concludes.

It’s a nice thought, but a subscription scheme would probably go the way of Times Select before too long. The problem is, as Alan Mutter phrased it in our recent interview, “Giving away all this content for free was the original sin.” Boston.com is the sixth largest newspaper website on the Internet, which is an accomplishment, since the newspaper is only the 14^th largest in the US. Imposing a pay wall would send traffic down 90%. The Globe would then have a lot of explaining to do to advertisers. The flight of ad dollars would probably more than cancel out the reader revenue.

And then there’s the demographic elephant in the corner. Speaking to a class of University of Massachusetts students and administrators last week, we asked how many had read a printed newspaper within the last 48 hours. Out of approximately 45 people in attendance, five hands went up. Four of them belonged to people over the age of 35.

Hyper-Local Startups Gaining Traction

Neighborhood-based online news startups are proliferating, says The New York Times in a story that profiles three of them. Among the new entrants are EveryBlock, Outside.in, Placeblogger and Patch. Funding models range from angel investment to foundation grants but each startup agrees that geographic relevance is core to the news.

EveryBlock uses human editors to gather links to news stories and combine them with material posted by the burgeoning number of neighborhood bloogers. Patch pays journalists in each town it covers to attend school board meetings and interview people in coffee shops. Outside.in scans articles and blog posts for geographical cues and organizes the content by community.

They’re hoping to tap into a local online ad market that Kelsey Group estimates will double to $32 billion by 2013. Small business advertising needs are still being served predominantly by the Yellow Pages, making this the great frontier of online advertising.

The story questions whether the collapse of local newspapers will also kill off these startups, but EveryBlock’s Adrian Holovaty says, “In many cities, the local blog scene is so rich and deep that even if a newspaper goes away, there would be still be plenty of stuff for us to publish.”

Miscellany

The publisher of the Palm Beach Post won’t win many friends in the blogosphere with statements like, “The only information on the Internet worth reading for hard news is produced by news agencies like ours.” But that’s not surprising, considering his newspaper is “your ticket to democracy… Seventy-five cents a day is a small price to pay for freedom.” Or hyperbole.

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McClatchy Co. CEO Gary Pruitt addressed the Newspaper Association of America’s annual convention on Monday. Here are his remarks, courtesy of the NAA.

Each year at McClatchy’s shareholders meeting, we conclude with a video highlighting the work of our photojournalists over the past year. I pick a song that I think speaks to the year and we set the photographs to the music. This year, I wasn’t sure which song to choose. I like the Rolling Stones, and they have several songs that fit our current economic environment:

• “I Can’t Get No Satisfaction,” of course. But also consider …
• “You Can’t Always Get What You Want”
• “19th Nervous Breakdown”
• “Shattered” and
• “Gimme Shelter”

But I really don’t feel fatalistic. I speak to you this morning with a strong sense of resolve and hope. We have a serious fight on our hands, but I believe we are up to it. So I thought it more appropriate to select a battle song for this year’s video – the “Battle Hymn of the Republic” to be specific – as we fight to ensure that truth does indeed go marching on. See what you think …. (Plays DVD)

Public Service Mandate

I came to newspapers not as a journalist or a businessman but as a First Amendment lawyer from Berkeley, California. So as you might expect, I’m passionate about free speech and a free press. I believe in the idea – and the ideal – that newspapers should provide high quality public service journalism so that the public can fully participate in democracy. This is not just some abstract concept. There is emerging empirical evidence to support the important relationship between democracy and the press.

A study published in The Journal of Law, Economics and Organization in 2003 looked at the per capita circulation of newspapers in different countries around the world and among the states in our own country. The study found that the lower the circulation, the greater the political corruption. Of course, the First Amendment isn’t a business model. Making the case that we’re important to society – proving it, even – does not guarantee our success. It just means the stakes are high. It is up to us to devise a business model that will sustain quality, public service journalism.

Our critics and the naysayers aren’t going to do it. This is the challenge before us. So while there were easier times to lead newspapers, there has never been a more important time.

Future generations will judge how we do. Or, as Abraham Lincoln said so eloquently in 1862 during an even more historic fight: “We can not escape history … The fiery trial through which we pass will light us down in honor or dishonor to the latest generation.”

Competitive History

I think history has much to teach us. As Mark Twain said, “History may not repeat itself but it does rhyme a lot.” Newspapering, for much of its history, was a fiercely competitive, rough-and-tumble, dog-eat-dog, low-margin business.

Consider The Sacramento Bee. In the first 30 years of its life, from 1857 to 1887, 80 newspapers came and went in the Sacramento market. That was a tough business. The number of daily newspapers in the United States peaked in the early part of the 20th century. There have never been more newspapers before or since.

Not coincidentally, that same time period witnessed the birth of a new medium — commercial radio. First radio and then television emerged, taking share from existing media, namely newspapers. Many people predicted newspapers would go out of business – and many did. So many, in fact, that by the second half of the 20th century, all but the largest cities in the United States had only one daily newspaper. And then a funny thing happened. Those successful, scrappy, surviving newspapers got rich because there was no other print or classified advertising competition. It’s a noteworthy paradox that the development of radio and TV ultimately led to the enrichment of newspapers.

For the first time in the history of newspapers, profit margins exploded and newspapering became an easy and lucrative business. Warren Buffett once said: “You want to invest in a business that even your stupid cousin could run, because one day he will.” That was the newspaper business in the second half of the 20th century. As newspapers’ profit margins grew, so did their cost structures. Ah, but we were so much older then; we’re younger than that now.

New Disruption

The Golden Age of newspapering wasn’t to last. With the maturation of the Internet over the past decade, a new medium has emerged, a virulent competitor again taking advertising share from all existing media, especially share of classified advertising. The Internet’s impact has been particularly disruptive at large metro papers with their higher cost structures and greater dependence on classified advertising.

Some of our critics seem to think newspapers were blindsided by the Internet’s potential impact. But we deserve credit for the considerable progress we’ve made online. The U.S. newspaper industry generated $3 billion in digital revenue last year. At McClatchy, 15% of our advertising revenue today comes from online.

McClatchy, a company founded before the advent of electric lights, will generate nearly $200 million dollars in digital revenue this year at a higher profit margin than our print business. Our digital revenue and online audience grew by double digits last year and, we operate the leading local internet business in each of our daily newspaper markets.

None of which is to say this transition is easy or that we haven’t made mistakes along the way. Secular transitions are always disruptive and painful for all media — what Austrian economist Joseph Schumpeter called “the creative destruction of capitalism.”

Working On It

My point is that newspaper companies, to varying degrees, were working their way through it, difficult as it was. The game-changer was the arrival of the deepest and most painful recession in generations. It’s the combination of the secular shift and the cyclical downturn that has created a very real crisis for newspapers.

Many of our critics conflate the secular and the cyclical. They see the revenue declines brought about by the recession as proof we can’t weather the secular transition. This leads to the wrong, but increasingly popular conclusion, that there’s no viable future for newspaper companies.

Absolutely we’ve got a future. But just what does it look like and how do we hurry up and get there? Alan Kay, the visionary computer scientist, once said, “The best way to predict the future is to invent it.” That’s where we are today. It’s up to us to invent that future.

There is no silver bullet. There are no easy answers. And, sadly, as we have seen already, not every newspaper will make it. But here is what I see going forward:

Reinvention

Print remains viable now and into the future. Most newspapers today are profitable even in the depths of this crippling recession. More than 100 million adults in the United States read a printed newspaper every day – more than watched the Super Bowl. As troubled as the U.S. economy is, if 100 million consumers want and use something, that product usually doesn’t go away.

Sixty-one percent of 18 to 34-year-olds read a newspaper in an average week. So much for the notion that younger people don’t read newspapers.

Despite all these positives, newspapers alone are not enough. Our future depends on becoming successful hybrid media companies – fully engaged and vested in digital publishing and digital platforms as we have been historically with print. This isn’t breaking news. In the month of January, 44 percent of all U.S. internet users visited a newspaper website. And audience growth at newspaper websites is outpacing overall U.S. internet audience growth.

So we’ve been moving in this digital direction for some time – but we need to accelerate the pace and sharpen our focus. We need to establish our brands and offer our services on many different platforms. We need to leverage social media, mobile technology and the web’s interactivity as our communities and customers change how they acquire and share information.

This economic downturn makes it difficult to take risks, but we need to experiment smartly and partner where it makes sense. We need to learn from our mistakes, adjust and move on. Let’s listen to our audience and our advertisers – not conventional wisdom.

Transform the Business

The same technology that challenges us on the revenue side offers savings on the expense side through centralization, collaboration and outsourcing. We must continue to shed those legacy, 20th century, monopoly cost structures that weigh us down, limit our flexibility, jeopardize our health.

Think of the newspaper company of the future as an athlete – lean, fit and trim, yet muscular where we need to be. We need to ensure strength in our newsrooms and advertising sales staffs – our two most powerful assets, our core competencies and our social responsibility. Even today, with all the downsizing across our industry, we have the largest newsgathering operations in our markets by far. No other local media outlet is as well equipped to produce and deliver the high value, premium local content that’s growing our total audience in print and online. And we know that audience growth remains the best predictor of long-term success for any medium.

While we’ve done a good job growing audience, we need to do a better job of leveraging our sales forces. We must empower our sales staffs to sell our full portfolio of print and digital products – giving them the right tools, training and incentives. Also, think of the possibilities of harnessing that large, local sales staff to sell on behalf of others and share revenues. The untapped potential of local digital advertising in each of our markets is why internet giants like Yahoo and Google seek partnerships with newspapers. We need to mine that local digital revenue stream. We can’t afford to fumble the opportunity.

Lastly, we need to accept the reality that we’re in a tougher, more competitive business, now and forever. Ours is a business that’s still viable and vital – just with a smaller margin for profits and a smaller margin for error. Let’s appreciate how lucky we are to work in the media business in this critical time of transition. Our actions count. No unbearable lightness of being here. The ball is in our hands and the game is on the line.

I’d like to leave you this morning with a bit of inspiration from Bob Dylan and his song “Silvio.” Although written more than 20 years ago now, I think Dylan’s lyrics speak to the newspaper industry today:

Stake my future on a hell of a past
Looks like tomorrow is coming on fast
Ain’t complaining ’bout what I got
Seen better times, but who has not?

The New Republic devotes 3,400 words to an examination of The Politico, a beltway publishing phenomenon that is upending the balance of media power on Capitol Hill. The piece implies that the Politico is not a place where aging reporters go to live off their reputations. It’s a pressure-cooker environment fueled by the constant drive to be first with everything and to win the attention of broadcast outlets. Witness its Politico44 diary, which documents the activities of the Obama administration literally minute by minute.

Politico’s 60 reporters file their first stories of the day by 8 a.m. and carry tech gear that makes it possible for them to post from anywhere, including a city bus. Stories are written and formatted to be read on a BlackBerry. Speed is essential. Politico aims to be first with every story and it has scored some notable exclusives, including last fall’s scandal about the price of Sarah Palin’s wardrobe.

Worked to Exhaustion

Reporters are handsomely paid but worked to exhaustion. The piece relates the story of one Politico staffer starting his daily column as other reporters covering the Hillary Clinton campaign where shuffling off to bed after a long day. Journalists are encouraged to promote their own stories. A staff of three publicists spend their days sending links to political bloggers to do just that.

The goal is not just to be first, but also to the influence of the media.  Political strategy is to be the number one source of breaking news for the cable networks that cover Washington on almost a 24/7 basis.  It is making rapid gains against the Washington Post, which initially offered to incubate the startup before alternative funding sources emerged.

Started by two ex-Washington Post editors and funded by media mogul-to-be Robert Albritton, The Politico is upsetting the applecart in Beltway journalism. On Capitol Hill, it’s considered a must-read. However, it’s earned its share of critics among mainstream media, who sniff that The Politico is too quick to go with gossip in the absence of facts.

The Politico makes most of its revenue from a print edition that recently expanded to five days a week, but Allbritton says he’s preparing for the day when print is out of the picture and The Politico makes its money online. Those preparations are going pretty well; Allbritton said the operation could turn a profit in six months. “We’re way ahead of budget…It wouldn’t surprise me if the profit this year would count in the millions of dollars.”

Blogger’s Growing Influence Doesn’t Faze Gannett

Dow Jones profiles Jim Hopkins, the man behind the popular Gannett Blog. Hopkins took a buyout from Gannett a little more than a year ago and has been living on severance, savings and the kindness of visitors ever since. He hopes to generate about $6,000 per quarter in advertising and donations revenue. At 100,000 page views a month, the site has impressive traffic for one about such a specific topic.

Gannett Blog is a great example of how blogs have changed corporate communications. In this case, the chief source of information about a company is outside its own walls, yet Gannett continues to ignore Hopkins. That only magnifies curiosity about the blog and boosts its visibility, not to mention its word-of-mouth popularity among disenfranchised employees. Gannett spokeswoman Tara Connell is quoted as saying that Hopkins doesn’t want to hear the company’s side of the story. “Since that’s a frustrating process with him, we try to keep it to a minimum.”

But Gannett doesn’t have to engage with Hopkins. Blogs have a feature called comments that enables visitors to state their opinions directly, without a media filter. If Gannett would start engaging with readers through comments, it would win sympathy just for listening, regardless of whether Hopkins agreed or not.

There’s plenty of evidence that engagement works.  About 18 months ago, Dell Computer reversed its practice of ignoring blogger commentary and adopted a new policy of responding to each and every post, whether positive or negative. The initiative reduced negative commentary from 50% to 20% in a little less than a year. For businesses have good reasons for doing what they do, engagement is always a better strategy than avoidance. Gannett still doesn’t get it.

Miscellany

It’s the middle of winter and nerves are fraying up in Canada. Quebecor Media has locked out 253 employees at its flagship paper, the Journal de Montréal. Employees there “have refused to accept cuts to benefits, a longer workweek for no extra pay and a loss of journalistic independence over the paper’s content,” writes Lyle Stewart, who admits that he is affiliated with the newspaper’s union. And he thinks the Montreal Gazette may not be far behind. “Unionized workers there recently rejected a contract offer that would have eliminated several positions and offloaded the editing of the paper to a centralized office in Hamilton, Ontario.”

If you wonder why you haven’t read more about this, all we can say is how’s your French?

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Tim Burden has assembled an impressive timeline of quotes about the micropayments debate. His discussion thread begins last Dec. 20 with a post by Joel Brinkley and goes for exactly two months. He hits all the high points we’ve seen. It’s a great running script of this tortuous debate and we hope he updates it from time to time.

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The Yakima (Wa.) Herald-Republic says business isn’t bad, it’s making money and the layoff of four to six employees – or less than 3% of the workforce – is a response to general economic pressure. In fact, the company just signed a deal to print the 5,800-circulation Ellensburg Daily Record.

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The Daytona Beach News-Journal laid off nine more staff members, bringing to 185 the number of employees it has furloughed in the last eight months. That’s 25% of the workforce. Commenters weigh in with the usual collection of politics-laden diatribes, making us wish they was a way to lay off them.

And Finally…

TJ Sullivan has posted an online petition calling upon newspaper companies to wall off their Web sites to non-paying subscribers for one week in July. He posts an extended explanation of his thinking on LA Observed. Lots of people have blogged about the petition over the last two weeks, yet it has garnered less than 200 signatures. It’s not such a bad idea, but maybe the sheer impracticality of it is inspiring ennui.

Five New York newspapers have banded together to exchange content in the largest such arrangement since the share-nicely craze began last year. The new group includes The Record of Hackensack, New Jersey, The Star-Ledger of Newark, the Times Union of Albany, the Buffalo News, and New York Daily News, which apparently organized the party.

Members will “assist each other in gathering news, sports and features materials, giving our readers access to more and expanded content from the top newspapers in each of the respective markets,” said Marc Kramer, CEO of the New York Daily News, in a very prepared statement.

No details were forthcoming, but the group issued a press release quoting top editors at all the participating papers making head-slapping “Why didn’t we think of this earlier?” statements.

The regional consortium trend was kicked off last April, when a group of five Ohio newspapers began posting all their daily stories on a private website where editors could pick and choose whatever they wanted. The Baltimore Sun and Washington Post are among other newspapers that have banded together in this way.

There was immediate speculation that the New York consortium was an excuse to lay off more newsroom employees. However, announced cutbacks at the Ohio Five haven’t been any greater than at other newspaper companies. The handshake deal is more likely aimed at setting members free from the Associated Press, which has been an industry whipping boy for the past year because of its license fees.

We’re interested in what you are seeing. If you subscribe to the Cleveland Plain Dealer, Columbus Dispatch, Toledo Blade, Cincinnati Enquirer and/or Akron Beacon Journal, please leave a omment and tell us if you’ve seen any noticeable difference in quality since those papers began sharing stories nearly a year ago.

State Aid and a Posthumous Polk

Publishers from the state of Washington pleaded with legislators for a special tax break yesterday, saying the severe recession has dealt a body blow to their already shaky business model. “Some of us, like The Seattle Times, are literally holding on by our fingertips today,” said Times publisher Frank Blethen, who presumably was not literally holding in by his fingertips at that very moment.

Publishers appeared before the state senate Ways and Means Committee to support a bill that would give them a tax break through 2015. While the measure would cost the state about $8 billion, lawmakers appear willing to help. The bill has bipartisan support.

In an ironic demonstration of the seriousness of the problems in Seattle, the Times covered the story with AP wire copy. 

Speaking of Seattle, the Post-Intelligencer may become the first newspaper to win a major journalism award posthumously. Mark Fitzgerald reports that Eric Nalder, the P-I’s chief investigative reporter, has won a George Polk Award for his two-part series “Demoted to Private,” about waste by government military contractors. The P-I is due to close March 15 if a buyer can’t be found, meaning that at the April 15 ceremony, the award may be bestowed on a newspaper that no longer exists.

P.S. The Pacific Northwest Newspaper Guild will hold a meeting next week to see if it can rustle up enough enthusiasm to initiate an employee buyout of the P-I. In more robust economic times this idea might stand a chance, but it’s hard to believe employees are going to dig into their depleted savings to buy a money-losing operation.

Miscellany

Having already laid of 12% of its staff if 2008, The Milwaukee Journal-Sentinel is now freezing wages and may impose a one-week furlough. Print revenue was down 10.4% in the fourth quarter and “We’ve seen that deterioration accelerate in the first weeks of 2009,”said publisher Betsy Brenner.

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Journal Register Co.’s mass execution of scores of weekly newspapers got little media coverage because not that many people will miss the Millbrook Round Table. But an unsigned editorial in the Odessa American delivers a poignant message about the impact a local weekly’s closure has on a community. 

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A blog called Brazosport News has word that the Houston Chronicle is about to cut 10% of its staff. It even has a memo from the publisher saying so. We can find no coverage of this story anywhere else.

And Finally…

Yes we can. We just found it on Twitter. And if you came here looking for breaking news about the latest layoffs and cutbacks, you’re wasting your time. This is a daily blog, which is so last year. Instead, subscribe to The Media is Dying on Twitter. This anonymous microblogger is so speedy at documenting gloom and doom that he/she puts Romenesko to shame.  Fortunately for Romenesko, he gets more than 140 characters.

It’s the pit of winter and the economy is stuck in molasses, yet the tone in the newspaper business has turned brighter. The few publishers who aren’t weighed down by crushing debt are talking tough and a paid news model is getting renewed attention.

Charlie Rose convenes a panel of industry notables, including The Wall Street Journal’s Robert Thomson, Time’s Walter Isaacson and New York Daily News owner Mortimer Zuckerman, who provides comic relief (See “And Finally…” below). The issue is “The Future of Newspapers,” and Poynter has thoughtfully provided a transcript.

Thomson’s comments are the most insightful. He hits the nail on the head with his description of Google as the great leveler: “Google is great for Google, but it’s terrible for content providers, because it divides that content quantitatively rather than qualitatively.” He also has razor-sharp criticism for editorial arrogance. “There’s a great tendency for journalists to be high and mighty, and to underestimate the intelligence of readers. And I think one of the reasons they’re losing readers is for that very reason.” And he says the Journal now “loves” the paid-subscription model it considered abandoning only about a year ago.

Everyone marvels at the new Amazon Kindle (right) and declares that it may be the last chance to create a reader-funded news model. Isaacson says the challenge for newspapers is to “prevent us from giving it away for free on the Kindles…just like we gave it away for free on the Web. We’ve got one more shot at it… Let’s make some really cool…applications we can…actually charge for.”  Tom Foremski and Greg Sterling both have interesting comments on the roundtable.
Watch the video here:

Making the Case

The New York Times has an op-ed by Eduardo Porter that argues that no other entity can take newspapers’ place. Citing numerous historical precedents, he argues that populations with an active media enjoy higher voter turnout, better government services and a higher standard of living. “During the Great Depression, the Federal Emergency Relief Administration doled out more money in counties with more radios,” he writes, in just one example. “Today, Hispanic voter turnout is higher, relative to the non-Hispanic vote, where there is a local Spanish-language TV station.” He also says television has been cited as an important factor in declining voter turnout beginning in the 1950. Porter’s use of these distant mirrors is novel, but his assumption that it takes a newspaper for a population to achieve these benefits is a bit of a stretch.

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The former CEO of Cox Newspapers makes a plea for embattled newspaper companies to fight back. Jay Smith retired eight months ago, just as the walls were beginning to cave in, and he recently joined with three top executives from the business to talk about the industry’s plight. “Their passion and enthusiasm contrasted with…the bleak forecasts for newspapers,” he writes. “Their voices have not been heard much, but they should be.” In particular, “Donna Barrett, who runs the 140 newspapers of Birmingham, Ala.-based CNHI Inc., says nothing in the financials of her company resemble the gloom and doom she reads about.” And the publisher of Parade magazine says he’s still delivering a convincing ROI to advertisers.

Smith is right that these publishers aren’t being heard, and why not? If CNHI is bucking the industry trend, we’d think the Newspaper Association of America would be parading her around like a football hero. It’s odd that those individuals are so quiet when their business is under such siege.

Speaking of sieges, check out the comments at the end of this piece. They’re typical of the reactions we see to published commentaries on the industry’s future: political bashing of the media by both left- and right-wing ideologues accusing newspapers of liberal or conservative bias. This response is so common that we wonder if it’s a coordinated campaign. The comments invariably have nothing to do with the original commentary. They seem designed to spread some kind of agenda. Does anyone have a theory as to why this criticism turns up with such mind-numbing frequency?

But Will They Pay?

Eric Alterman, who penned last spring’s riveting account of the newspaper industry’s problems in The New Yorker, updates the scene in a shorter account on The Nation. Unfortunately, he has no better ideas for saving the industry than anyone else. Alterman recaps the solutions that have been proposed, ranging from micropayments to charitable support, and finds them all wanting. And he points out that the core news section of the typical major metro daily is the part most at risk. “Ironically, it is the sections of the paper most crucial to informed democratic discourse that are in danger of disappearing,”Alterman writes. “Sports news, entertainment news, health news, fashion, celebrity and style reporting will always be with us in one form or another, because they are such delightful places to advertise.” In contrast, no one wants their ad to appear next to a story about an airplane crash.

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Writing on Nieman Journalism Lab, Matthew Ingram basically agrees. Ingram recaps the recent debate and says there’s no way readers are going to pay the freight. “Newspapers have never been paid directly by readers for the news,” he writes, adding that subscription and or newsstand fees cover, at best, a few pages worth of production cost. “What newspapers need to do is find ways of creating content that is more valuable than the perishable daily news.” Ah, but that is the problem. No one short of a few specialized publishers has figured that one out.

Miscellany

Three weeks after it pulled the plug on a print advertising program, Google has cancelled a second offline initiative. Google Audio Ads was the second leg of the stool that Google was building to support its expansion into offline advertising. Like Print Ads, the program was meant to upsell airtime to search advertisers. However, the radio industry never much took to the idea, seeing it as a way to commoditize its business. Only one major station owner, Clear Channel Radio, signed on to the program and many smaller networks gave Google the cold shoulder. The search giant still has a similar program to sell television ads and analysts say that one probably isn’t going away soon. About 40 people will lose their jobs.

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Have you tried the The New York Times’ new article skimmer? We just did and pronounce it cool. The as-yet-unnamed service (though we like “skimmer” just fine) attempts to recreate the experience of scanning a printed newspaper on a computer screen. Each “page” includes a tiled assortment of summaries and sections slide pleasingly into place. Coolest feature: “Instead of displaying dates, articles gradually fade as they get older,” says a post on the Times‘ First Look blog. ReadWriteWeb notes that it would be nice if you could read the articles in the same interface. But first things first. This is a nice new idea.

And Finally…

Is Mortimer Zuckerman losing it? Or perhaps the collapse in value of his Manhattan real estate holdings has addled his mind just a bit. In this exchange from the Charlie Rose interview referenced above, Zuckerman oulines his plans to turn around the Daily News through the addition of color:

I committed to the new presses out of sheer passion 18 months ago…They will dramatically increase our revenues, because we’ll have all color, and this will increase our advertising revenues, and it will also increase our circulation, because it will be a completely transformed visual product.

The Daily News is one of the last newspapers to go to color. Printing in color isn’t helping anyone right now. But just wait a few years and Zuckerman’s daughter will figure out the solution:

I own The Daily News and I’m determined to keep The Daily News going because my daughter, who is 11, is now committed to be the next publisher…She’s agreed. She liked the working conditions. She liked the demands.

Rose comments, delicately, “Most people would hear you say that, and they would say, you know, he doesn’t — with all due respect, you don’t get it.”

Over the last few weeks, the mood in the news industry has shifted from a kind of morbid resignation to one of fiery indignation over the forces that are tearing apart a once-mighty business. The promising development is that media supporters have stopped trying to resurrect a dying print industry and are now focused on saving the essence of quality journalism. They’re getting creative in their approaches. Below are a few recent opinions.

Lean, Mean Media Machine

Writing in the Dallas Morning News, John Chachas says the time has come for the US government to jettison old cross-ownership rules and grant media companies broad license to prosecute people who steal their content.

Chacas, who co-heads the media practice at Lazard, proposes granting news organization “a finite (36-month) anti-trust law exemption to permit deployment of an industry-wide system to track and charge for re-use of their content.” Today’s bloggers thumb their noses at the organizations whose content they steal, and newspapers’ unwillingness to defend their value is their undoing, he says.

Chacas also calls on the government to repeal laws that prohibit media cross-ownership in regional markets. Information no longer knows geographic boundaries, he says, and laws that make it easier for the Los Angeles Daily News to merge with The New York Times than with the Orange County Register are a set of handcuffs on media businesses. Conversely, it’s no longer relevant for the government to try to preserve multiple voices in a market when readers and advertisers no longer believe they’re needed. His four-point proscription is an intelligent call for legal and legislative change.

Reinvent the Model; Save What’s Best

The New York Times rounds up opinions from thought leaders around the industry. The consensus: stop trying to revive the traditional model and focus on finding places to add value.

MinnPost.com CEO Joel Kramer says news organizations will need to derive more revenue from readers in the future, even if that means shrinking circulation: “A newspaper that sold 400,000 copies at 50 cents daily and $1.25 on Sunday might sell only 100,000 at four times the price. But there would be a business incentive to keep quality high, because each extra copy sold should increase profit, not subtract from it.”

Steven Brill mostly agrees. He says the key is to find the crevices where local information needs aren’t being served: “Local newspapers are the best brands, and people will pay a small amount online to get information – whether it be a zoning board meeting or a Little League game – that they can’t get anywhere else.”

Geneva Overholser of the Annenberg School of Journalism is in the same camp. She sees value in a hybrid of community journalists and professional publishers. “These changes will be difficult for newspapers which have considered themselves the primary newsgathers, but they may lead to the next chapter of American journalism,” she writes.

Craig Newmark, whose Craigslist.org is often seen as the Great Satan by the newspaper industry, says media companies need to involve their readers in the process of determining what they do. Quoting David Weinberger, Newmark says, “a paper should be perceived as ‘ours’ (the public) not ‘theirs’ (the owners).” Perhaps the Great Satan is really the newspaper owners.

Author Andrew Keen picks up the thread, suggesting that the future is in a layered model in which community members contribute information that’s then organized by staffs of professional editors. “Rather than slithering into the democratic swamp of crowd-generated content, smart local publishers should focus on their core expertise – the organization and curation of information by professionals,” he writes.

Edward Fouhy of the Pew Center for Civic Journalism tells the story of three small operations that are proud of providing balanced, accurate coverage of local news. “Citizens are inventing a new form of locally based and financed journalism while preserving the values of accuracy, objectivity and independence,” he writes, hopefully.

There are more than 180 comments as of this morning. Thankfully, they are mostly free of the partisan politican ranting that seems to plague this discussion.

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BTW, Jack D. Lai thinks micropayments are stupid and he’s got a long list of links to people who agree. It’s an impressive archive and we really hope to get around to reading it all.

Micropayments with a Twist

Steve Outing opens his Editor & Publisher column by dissing micropayments (“that model will only hasten newspapers’ death spiral”) and then goes on to make a passionate case for…micropayments! Okay, we’re oversimplifying. What Outing doesn’t like is the idea that each publisher would have its own system for charging people a few cents to consume its content, sort of like running a PayPal button in the sidebar. He’s right: That’s a dumb idea. The solution may be in a service like Kachingle, a system that distributes payments to website owners based upon their readership.

Kachingle users only have to set up and fund one account. Whenever they visit a site that’s part of the network, Kachingle allocates a portion of their account to that provider. If Newspaper Death Watch gets 20% of your monthly visits, then the owners get 20% of the payment you set aside. Thanks! Readers decide how much they want to pay and Kachingle takes care of the accounting. In theory, the value of the network grows as membership expands. The New York Times may be helping Newspaper Death Watch by joining the network, but the equation also works in reverse. Somehow, we think we’d get the better of that deal.

Steve Outing is nothing if not thought-provoking. Although this column is a tad more enthusiastic than his usual fare, he’s found an interesting model to promote. Hopefully, the column will still be available at SteveOuting.com after E&P inevitably pulls it off its website. You can also comment at SteveOuting.com, but not at E&P.

Miscellany

Last month we told you about The Printed Blog (“Extra! Extra! Blog All About It!”) a startup that’s proposing to reinvigorate print publishing by harvesting content from local bloggers. Simon Owens called up founder Joshua Karp and found an Internet entrepreneur who’s serious about print.

“The print newspaper doesn’t need to go away simply because it’s on paper,” Karp told him. The problem is that publishers haven’t revisited the way they produce their printed products to include the work of the community. The Printed Blog is on thin financial footing unless more funding can be found, Karp said. He’s funding the first issues himself and needs to find venture capital “over the next few weeks.”

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They dribble out the news about cuts at the Honolulu Star-Bulletin in this story. The paper will lay off 17 people but wait, there will probably be more. The neighbor island bureaus will be shut down. Oh, and there’ll be a redesign from a broadsheet to a tabloid. Praent Oahu Publications is also discontinuing its Friday edition of the MidWeek tabloid. You have to stick with this story to the end in order to learn everything.

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The Charleston Post and Courier has laid off 25 employees after a buyout failed to achieve cost reduction goals. When the company announced its buyout offer in July, the newspaper reported that it had 513 full-time and part-time employees. It will employ 460 people after the latest cuts.

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

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

- Jon Stewart, The Daily Show

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

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

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

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

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

- Journalism futurist Michael Rosenblum, to the Society of Editors

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

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

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

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

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

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

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

–Political consultant Clint Reilly

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

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

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

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

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

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

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“Galleria escalator stalls, dozens of riders trapped”

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

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

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

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

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

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

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

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

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

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

–Humorist Dave Barry, quoted in RegretTheError.com