Newspaper Death Watch
Chronicling the Decline of Newspapers and the Rebirth of Journalism
  • R.I.P.

    About this column

    US metropolitan dailies that have closed since this site was created in March, 2007

    Tucson Citizen

    Rocky Mountain News

    Baltimore Examiner

    Kentucky Post

    Cincinnati Post

    King County Journal

    Union City Register-Tribune

    Halifax Daily News

    Albuquerque Tribune

    South Idaho Press

    San Juan Star

  • W.I.P.

    Works In Progress: Former print dailies that have adopted hybrid online/print or online-only models.

    Seattle Post-Intelligencer

    Capital Times

    Detroit News/Detroit Free Press

    Christian Science Monitor

    East Valley Tribune

    Ann Arbor News

    Flint Journal; Bay City Times; Saginaw News

    Catskill Daily Mail/Hudson Register-Star


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  • Recent Comments

    • This Week in Review: Plagiarism and the link, location and context at SXSW, and advice for newspapers » Nieman Journalism Lab on Not Yet Time To Burn the Boats
    • O futuro do jornalismo : Ponto Media on Johnston on Journalism’s Future
    • Online on a shoestring « JRNL 310 Digital Journalism on Interview: Young Journalist Makes Online Transition
    • To Burn the Boats, or Not? « Reinventing the Newsroom on Not Yet Time To Burn the Boats
    • Jstocker on Johnston on Journalism’s Future
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Not Yet Time To Burn the Boats
By paulgillin | March 9, 2010 - 1:32 pm - Posted in Advertising, Best/Worst, Business News, BusinessModel, Circulation, Demographics, NewMedia, Newspapers

TechCrunch has an interview with Marc Andreessen in which the Internet boy wonder advises media companies to “burn the boats,” an analogy to the instructions Cortés supposedly gave his army upon landing in Mexico nearly 500 years ago in order to insure that the soldiers pressed on.

Print newspapers and magazines will never get [to new online business models], he argues, until they burn the boats and shut down their print operations. Yes, there are still a lot of people and money in those boats—billions of dollars in revenue in some cases. “At risk is 80% of revenues and headcount,” Andreessen acknowledges, “but shift happens.”

Andreessen has a point that it makes senses to abandon failing models in the long term, but setting fire to profitable print operations is the wrong strategy at the moment. After years of fretting over declining circulation and trying desperately to rejuvenate a dying business, newspaper publishers are finally adopting an intelligent strategy. They’re milking all they can from their profitable business while trying to manage it down to a level that new models can take over. It won’t be easy.

The strategy that most publishers have recently adopted has three parts:

  • Raise subscription rates in order to milk as much revenue as possible out of an aging but loyal reader base;
  • Manage costs downward in a manner that preserves profitability without alienating traditional readers;
  • Invest in growth markets that can preserve the brand and generate new profits.

The New York Times reported last year that its second-quarter subscription revenues nearly matched its advertising revenue. Aggressive price increases, combined with a substantial reduction in discounted circulation, are turning paying subscribers into a profit engine. Other publishers are adopting this approach, which is why the seemingly catastrophic declines in circulation of the last couple of years aren’t as devastating as they seem. Many businesses have legacy customers that generate a small but profitable business. Successful long-term franchises, however, also have the skills to move on.

A Successful Online Model

New media news entities have demonstrated that they can earn a profit with about 20% of the revenues of print organizations. That’s because their operating expenses are about 90% lower. These organizations are profitable, but a lot smaller than print publishers.

In their most recent round of earnings reports, most publishers stated that they are now deriving between 12% and 16% of their revenue from online advertising. Most of them have also not done nearly as much as they can to monetize other sources such as events, transaction fees and value-added and classified advertising. Once publishers reach the threshold of 20% online revenue, they can conceivably shutter their print operations while sustaining the business and the brand. They’re trying to get to that threshold gracefully, though. Lots of money can still be made in print if publishers can manage that asset down steadily while reducing costs in lockstep.

That’s a tricky process. If publishers cut costs too deeply, they risk losing loyal print subscribers and circulation revenue could enter a free-fall. They also don’t have the luxury of much time to complete the transition.

Even harder is the third bullet point. The people who run newspapers are skilled at operations and asset management, not visionary investments in emerging markets. In the TechCrunch interview, Andreessen correctly points out that technology companies are adept at dealing with constant disruption to their markets, a situation that faces Microsoft right now. Successful technology companies manage this challenge through a kind of creative destruction process. Successful executives are experts at learning to identify new opportunities and quickly discarding old product lines without looking back.

However, technology companies don’t have the luxury of a loyal legacy base that newspaper publishers have. The audience of committed daily readers may still buy the newspaper industry another 10 years of life in print, although that business will eventually become unsustainable. It isn’t crazy for publishers to want to milk the cash cow for a few more years. The hard part is finding new opportunities and having the stomach to invest in them in the face of inevitable shareholder demands for greater profits.

Burning the boats isn’t a wise strategy at the moment. But it’s a good idea to start collecting firewood.


Newspaper executives and their largest advertisers will gather next month in Orlando to discuss the transition to a digital media world. Advertisers in attendance include Staples Inc., Walgreens, Best Buy,  Home Depot, RadioShack, Target and many other print media veterans.

It’s good to see the industry tackling its challenges head on, but we have to wonder if this is the right crowd to do it. Nearly every person in the room will have a career and a business built on a crumbling advertising model. It seems unlikely that much innovation will flourish in that atmosphere. And if you believe what people like Mark Potts and Steve Outing are saying, then the future of these companies is about diversifying revenue and cultivating local advertisers, not finding new ways to squeeze more blood from the display advertising stone.. Meanwhile, the agenda is packed with speakers from the newspaper industry. We trust Huffington Post wasn’t invited.


Meanwhile, Outsell has a new report predicting that US companies will spend more on digital marketing than print for the first time ever this year. Of the $368 billion that Outsell expects US advertisers to spend this year, roughly $120 billion will be spent online and $111 in print. Of the total online spending, 53% will be on company websites. Outsell expects print newspaper ad spending to drop 8.2% to $27 billion. The report costs $1,295. More here.

And Finally…

The folks who brought you the wonderful Fail Blog have aggregated some of their best media miscues into Probably Bad News, a site whose tagline is “News Fails, because journalism isn’t dying fast enough.”You can upload your own favorite typos, double entendres and acts of sheer stupidity for others to vote upon. Many of the examples are computers gone haywire, which lack the sheer hilarity of printed mistakes, in our view. But there’s some good stuff there, anyway.


Dan Bloom has been pushing the idea of renaming newspapers “snailpapers.” He’s put the cause to music. It’s six-and-a-half-minutes of countrified banjo-picking. Watch it if you can.

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Plagiarism’s Murky New Rules
By paulgillin | February 19, 2010 - 12:22 pm - Posted in Best/Worst, Business News, Citizen Journalism, Future of Journalism, Journalism, NewMedia, Newspapers

This week’s sorry tale of a New York Times reporter being forced to resign for plagiarizing content from The Wall Street Journal, Reuters and other sources, apparently over a long period of time, raises questions about how traditional practices can survive the pressures of the online age.

Zachery Kouwe (right) walked the plank after editors at the Wall Street Journal complained that passages in a post on the Times’ DealBook blog substantially duplicated material published in the Journal a couple of hours earlier. The Times published a correction and later suspended Kouwe. He resigned on Tuesday.

In an interview with The New York Observer, Kouwe apologize for the transgression but explained that it was an honest mistake brought on by the need to respond to a rival’s story combined with the relentless pressure to produce weekly output of about 7,000 words. “I was stupid and careless and fucked up and thought it was my own stuff, or it somehow slipped in there. I think that’s what probably happened,” he said.

There’s never an excuse for plagiarism, but an understanding of the environment in which young reporters like Kouwe work can at least explain his acts, if not excuse them.

Deadlines in Minutes

It wasn’t long ago that reporters at a big paper like the Times had the luxury of turning out a story a day or even less. Print deadlines measured in hours offered an opportunity to check sources and rewrite notes in a timeframe that seems positively leisurely today. A few skilled professionals, mostly wire reporters, excelled at deadline reporting. Their expertise in synthesizing and contextualizing large amounts of information, often in chaotic environments, was the product of years of experience.

Today, everyone who writes news online is a wire service reporter. Deadlines are measured in minutes and anyone who wants to compete has to put speed at the top of the agenda. Not everyone is good at working under that kind of pressure, so it’s not surprising that the quality of deadline news reporting is becoming more erratic. Budget cuts at newspapers have also forced a lot of young, relatively unseasoned reporters to the front lines where their work nevertheless carries the moniker of a 150-year-old trusted brand. Such was clearly the case with Kouwe who, at 31, has developed his journalism skills inside the culture and pressure of the Internet.

The craft of note-taking has also changed. In today’s cut-and-paste world, journalists assemble background information from snippets published elsewhere. Notes are typed rather than hand written. In a document made up of first-person interview notes mashed together with clips from other sources, it’s not surprising that the origins of information can become confused. That’s not an excuse for shoddy note-taking, but it is an explanation for how errors can happen.

Changing Views on Copyright

The standards of intellectual property ownership that have been broadly accepted for so long are also growing fuzzier. Many bloggers don’t even post copyright information on their sites or they choose from one of an assortment of Creative Commons licenses that can themselves be confusing. The nonprofit culture of the blogosphere largely looks the other way when people lift content from each other. Many people use blogs as essentially online notepads, posting everything up to and including their shopping lists. Even if they cared about plagiarism, it’s difficult to spot violations and usually not worth the trouble of chasing the offenders. This works okay in the blogosphere because few bloggers practice their craft for money. In some cases, theft of content is actually considered a compliment to the author.

Then there are the proliferating forms that online communications take. Are Twitter messages copyrightable? If so, then isn’t the coveted retweet a form of copyright infringement? Google Voice has a feature that transcribes phone messages and makes it easy to embed those transcriptions in websites. Is that also a legal problem?

Finally, software tools now enable  someone to republish entire articles on multiple sites without even copying and pasting. Posterous is just one that makes this process automatic. A person using this feature may be violating someone else’s intellectual property without even knowing it.

This is not an excuse for Kouwe’s transgressions. A professional reporter should understand the fundamentals of the craft. However, the freewheeling nature of the democratized information landscape creates all sorts of gray areas. Journalism schools and editors need to do a better job of giving young journalist the tools to living with the growing pressures of deadlines and information overload without violating basic principles of ownership.

New Image Protection

Photographers have a particularly difficult time tracking copyright violations. Search engines don’t index images and the content embedded within tags gets lost as pictures are copied and redisplayed around the web. Watermarking affords some protection, but it also can make the image unattractive to potential publishers.

PicScout is trying to do something about this. Founded in 2002 to market an image recognition and classification technology, the company has a new platform that analyzes images and stores ownership information in a registry. That information travels with the image wherever it’s reproduced, thanks to technology that is capable of recognizing certain patterns within the bitstream. With one click, a potential user of the image can be connected to the license holder to work out terms.

License holders can upload their images to PicScout for indexing. The service then continually scans the Web looking for reuse of that content. License holders get a regular report on potential violations, along with company name and a screen capture. Users can download a free plug-in that alerts them to images that are listed in the PicScout database. The company just signed a partnership deal with PhotoShelter, a website for professional photographers and enthusiasts, that will automatically include PhotoShelter images in the PicScout registry.

Miscellany

If you think the demise of newspapers has killed good journalism, take a look at the list of the 13 winners of George Polk Awards for 2009. The awards, which have been administered by Long Island University for more than 60 years, cover a wide range of national and international accomplishments, ranging the New York Times reporter who documented his seven-month captivity by the Taliban to a ProPublica journalist who reported on the dangers of a natural gas-drilling process that yields carcinogenic byproducts. While the honorees include the usual lineup of mainstream media sources, a few surprises crept into the group this year. They include a team of Stars and Stripes reporters that unearthed a Pentagon campaign that profiled journalists in order to steer them toward positive coverage of the war in Afghanistan and a group of Bloomberg reporters who documented abuses of the government’s bank bailout program.


The Phoenix-area East Valley Tribune just won’t die. Owner Freedom Communications filed a motion with the U.S. Bankruptcy Court this week seeking approval to sell its Phoenix-area publications — including the Tribune — to 1013 Communications LLC. The purchase price is reportedly just $2.05 million. Freedom has been in bankruptcy protection since September and has been trying to unload the Tribune for more than a year. It had earlier announced plans to shut down the paper at the end of 2009, but is keeping the lights on in hopes of finding a buyer.


Growth of digital coupons is outpacing growth of newspaper coupons by a factor of 10 to 1, according to a company that has a stake in the digital market. Coupons.com reports that more than 45 million American consumers are now using online coupons, a nearly 20% increase from the 38 million who used them in 2008. “Of that number, nearly a third (13.1 million) don’t clip coupons from their Sunday paper, a 140% increase over 9.4 million in 2008,” said Coupons.com. If anyone can explain how the difference between 9.4 million and 13.1 million comes out to 140%, we’d like to hear it.


Questions are already being raised about Apple’s iPad licensing terms and whether its policy of keeping subscriber data close to the vest is a deal-killer. The Financial Times reports that the generous royalty model that Apple uses with book publishers (they get to keep 70% of the take) doesn’t work so well in subscription models.  It’s particularly bad in light of Apple’s practice of gathering all subscriber information and sharing nothing with its publisher or developer partners except download and sales totals.  “Is it a dealbreaker? It’s pretty damn close,” says one senior US media executive. Here’s another opportunity for Amazon. Publishers appear to prefer the Kindle platform for a number of reasons, but Amazon’s licensing terms grant them too little of the subscription revenue. If Amazon would loosen up quickly, it could grab most-favored-reader status in this important market. So far, though, Amazon shows little inclination of changing anything.

And Finally…

“There is nothing more frustrating than having a perfect comment for a conversation the two strangers in front of you are having.”

“It’s never more important to me to look my best than when I’m gonna be around someone I can’t stand.”

“I don’t understand the purpose of the line, ‘I don’t need to drink to have fun.’ No one does. But why start a fire with flint and sticks when they’ve invented the lighter?”

Those are just three of the gems from Ruminations, a website that accepts short, funny, original observations or anecdotes and then encourages its members to vote them up or down the popularity scale.

Reading Ruminations is like listening to a nonstop Steven Wright standup routine. Many of the contributions are hilarious, but some of them make you ponder the odd, illogical and bizarre things that humans do. “How many times is it appropriate to say ‘What?’ before you just nod and smile because you still didn’t hear what they said?” asks one contributor. The site was started by author and comedian Aaron Karo (above), who has a newsletter by the same name.

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NY Times Swallows Paywall Pill
By paulgillin | January 22, 2010 - 9:48 am - Posted in Advertising, Best/Worst, Business News, BusinessModel, Newspapers, OnlineMedia, Paywalls

The New York Times is building a paywall despite the 2005-2007 disaster that was TimesSelect. On Wednesday, the Times announced the decision to start charging for access beyond a specified number of articles beginning in 2011. Details, including the fee and the access threshold, weren’t revealed. The Times is leaving itself plenty of leeway to modify or even call off the program, knowing that the eyes of a $35 billion industry are upon it. “We can’t get this halfway right or three-quarters of the way right. We have to get this really, really right,” said Times Co. publisher Arthur Sulzberger, Jr.

The Times is stepping with characteristic caution into territory that its own coverage acknowledged has both “tempted and terrified” publishers. The most well-read newspaper in America is under pressure to set a precedent that others can follow while at the same time preserving its dominance and an online revenue stream that is a growing part of its business.

A Q&A on the Times‘ website sounds almost apologetic in tone. It points out that readers will continue to have full access to Times content from search engines but will not be able to click through to other stories on the website without paying a fee. Readers will be entitled to access a certain number of articles each month at no charge, but the limit was not specified. The decision to announce the paywall a year before implementation gives the Times some breathing room to assess reaction and set thresholds that readers can live with. The article in the Times notes that most readers still arrive at NYTimes.com via search engine, meaning that their experience will be undisturbed. The piece also notes that reader reaction on the Times’ website has been modestly favorable toward the move.

Even if the Times‘ paywall experience is successful, there’s no guarantee that other newspapers will be able to duplicate it. The newspaper enjoys a cachet that few other titles can duplicate and it’s likely that some readers will support the initiative in the name of keeping the hallowed title afloat. The same can probably not be said for the Chicago Tribune.

The New York Post reports that New York Times Co. minority owner Carlos Slim is a big fan of paid content and has been  pushing Times Co. executives behind the scenes to take the plunge. TimesSelect was an early stab at paid content that floundered when columnists complained that their visibility plummeted when a price was put on their work.

The problem with paywalls is that they cannibalize Web traffic that could otherwise be monetized with advertising. ClickZ reports that Forrester Research analyst James McQuivey predicts that ad revenues for NYTimes.com will drop by up to 50% after the paywall is erected. It also notes that Newsday saw website traffic drop 21% in the month after it built a limited paywall last fall. The trick is to find the right balance and The New York Times, with its history of online innovation, is the best candidate to reach a happy medium.


The Times is diversifying its revenue through a novel partnership with four institutions of higher learning that deliver Times expertise as online courses. This spring, the Times will start awarding certificates to paying students. For example, Ball State University just launched a six-week course on video storytelling that bestows certificates in “emerging media journalism” co-validated by the Times and Ball State. We love this idea. While tuition will never be a major revenue stream for the old Gray Lady, it is at least a diversification out of the declining advertising business. And with more citizens wanting to learn the craft of storytelling, perhaps a course with Times reporters and editors is something they’d be willing to pay for.

Internet Out of the Courtroom

Print journalists can take some heart – while new-media advocates roll their eyes – at two court decisions last week that limit the dissemination of trial coverage over the Internet. First, the U.S. Supreme Court overrode a trial judge’s decision and blocked video coverage of a federal trial about the constitutionality of California’s law banning gay marriage. Then a Florida judge ruled later in the week that a Florida Times-Union reporter couldn’t live blog a capital murder trial.

The California case is important because it involves a highly polarized issue that has implications in other states. A 5-4 conservative majority ruled that the judge in the case had erred by initially allowing video of the trial to be streamed to other courtrooms even though that practice is usually denied in federal cases. However, the justices did not address the bigger constitutional question of whether live video is permissible in legal proceedings.

In the Florida case, the judge banned a reporter from live blogging because he said the noise was distracting. A second reporter who was texting notes from the courtroom on a cell phone was also told to cut it out. However, a third reporter who was writing notes on paper was not disciplined. The tweeting journalist had drawn a more than 1,300 followers on Twitter for her coverage of the trial.

The cases illustrate the discomfort that new media is creating in the trial courts. The capability of anyone to relate the events of a trial would seem to comply with the founding fathers’ desire for legal transparency, but the fact that those narratives can now be communicated worldwide makes some jurists nervous. Both of these issues are likely to need a Supreme Court resolution.

Miscellany

When Nielsen orphaned Editor & Publisher in a sale of several of its titles to e5 Global Media last month, the staff at the venerable newspaper industry trade publication held out for a rescue. It came. Duncan McIntosh Co., an Irvine, Calif.-based publisher of trade magazines that ironically include FishRap News (which has nothing to do with newspapers), has picked up E&P and will continue more or less uninterrupted publication. “We’re all very excited around here about the news,” said staffer Mark Fitzgerald, who gains a promotion to editor in the process. Monthly print publication will resume next month and entries on the magazine’s two blogs – Fitz & Jen Give You the Business and the E&P Pub – have already resumed. Hooray.


The parent company of MediaNews Group, Inc. will file for bankruptcy, the 13th such filing by a U.S. newspaper publisher in the last 13 months. But it doesn’t look like MediaNews plans to stay in Chapter 11 for long. It has a debt restructuring plan in place that will cut its debt from about $930 million to $165 million and swap senior debtors’ paper for stock. The 116 creditors will have a majority of stock but not voting control. The Hearst Corp. and the family of MediaNews co-founder Richard Scudder are reportedly giving up interests in the company. Hearst took a $300 million stake in MediaNews in 2006 and that investment is now effectively worthless.  MediaNews said newspaper operations, employees and suppliers wouldn’t be affected and that the debt restructuring plan would enable the company to quickly emerge in better financial condition.


Dan Bloom has come up with a new word for newspapers. He calls them “snailpapers.” Only the longtime newspaperman insists this is a term of endearment, not derision. He thinks maybe if newspapers poked more fun at themselves instead of getting all righteously indignant about new media, they would generate more sympathy. More on his blog.


The Greenwood Lake (N.Y.) News is shutting down after 46 years, idling a small staff. The weekly had been honored for  editorial quality by the New York Press Association.

Dramatic Effect

We get some unusual requests at the Death Watch and always try to be helpful, but we were stumped by this inquiry from Amy Wimmer Schwarb, a 15-year journalism veteran:

“What’s more old-school than the print-on-paper newspaper we both love?” she writes. “The theater, of course. I’ve been working on and off for the past 18 months on a script that I’m about to start submitting to play competitions around the country. The title is ‘Dash Thirty Dash: An Allegory for the End Times.’ The piece celebrates the fun and beauty of the business and documents the suicide of newspapers.

“My concern about submitting this play through traditional channels is that I want it to be seen NOW, and sometimes, such channels have long lag times. Through your online travels and contacts, do you have any suggestions for how I might distribute this work? In my dreams, it will be performed in small independent theaters around the country.”

We couldn’t help, but perhaps you can. Post any ideas below as comments, or e-mail us using the contact box on the right and we’ll put you in touch with Amy directly.

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Our Most Memorable Stories of 2009
By paulgillin | December 31, 2009 - 11:35 am - Posted in Best/Worst

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.
  • Los Angeles gangster Mickey CohenLife 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.
  • LA Times front-page adThe 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.
  • The Media is Dying iconWriting 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.

Discarded newspaper racks


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.

North Carolina Press Association newspaper ad


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.


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.


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.


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

Rocky Mountain News final front page

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Celebrating the Crunks
By paulgillin | December 18, 2009 - 10:30 am - Posted in Best/Worst, Citizen Journalism, Future of Journalism, Journalism, NewMedia

One of our favorite year-end delights is the annual publication of Craig Silverman’s Crunk awards. Silverman, whom we interviewed about a year ago, devotes hundreds of hours each year to documenting the missteps of media organizations large and small on his Regret the Error blog. Each year around this time, he publishes the high — and mostly low —  lights of the previous 12 months of media messups. It’s a half hour of reading pleasure.

Silverman’s award for the “Correction of the Year” goes to the Washington Post for this brief but symbolic beauty:

A Nov. 26 article in the District edition of Local Living incorrectly said a Public Enemy song declared 9/11 a joke. The song refers to 911, the emergency phone number.

The misstep gets the award because of the torrent of reaction it sparked. The Post’s error was ridiculed in leading online publications like Techdirt and Huffington Post and even sparked a twitter hash tag (#washingtonpostcorrections) in which thousands of people have posted satirical corrections based on literal interpretations of popular songs.

There’s a serious side to the story, however, and Silverman provides some perspective at the top of his lengthy retrospective.

dekalbhookerNews organizations can be forgiven occasional lapses under the burden of deadline pressure, but it’s unfathomable that basic errors of historical fact can occur when the truth is only a Google search away. This reality was brought into sharp relief in July, when The New York Times published a stunning correction of eight errors in a reporter’s retrospective on Walter Cronkite’s career. They included such Wikipediable factoids such as the date of Martin Luther King Jr.’s assassination.

Such careless disregard for easily verifiable facts doesn’t do news organizations any favors at a time when their credibility is at historic lows. Silverman points out that the media watchdog function has passed into the public domain and sparked several efforts at self-regulation by media companies. Newspaper correction columns have long been a casual afterthought that did little to address the pain and humiliation that the original error may have caused. Publishers  could get away with that in the days when they owned the channels of information. Today, bloggers and tweeters can turn an error into a persistent chorus of mockery.

In the case of the Post’s correction, the lyrics of the Public Enemy song were easily available online, along with interpretations. The abuse that the newspaper earned for the transgression may have been extreme, but hopefully it turned a few heads among the ranks of top editors.

Turning back to the Crunks, there are too many good ones to summarize here, so read through and choose your favorites. You can also show your support for Silverman’s efforts by buying a copy of his book. Our personal favorite comes from the Advertiser in Australia, which published an editor’s dummy copy as this Thought for the Day:

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)

We suspect that nearly every veteran journalist can relate to that one.


We’d like to quietly note that this is the 500th post on Newspaper Death Watch since this blog launched in March, 2007. Thanks to the nearly 1,000 people who visit this site on a typical weekday. Your many comments and messages of encouragement do far more to keep us motivated than the sporadic beer money from Google AdSense.

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R.I.P. Editor & Publisher
By paulgillin | December 10, 2009 - 3:32 pm - Posted in Best/Worst, Business News, NewMedia, Newspapers, R.I.P.

As if to dramatize the crisis facing the newspaper industry, the owner of the 125-year-old Editor & Publisher magazine announced it is shutting down the title. The venerable trade magazine was the unwanted child in a deal between Nielsen Business Media and e5 Global Media Holdings, LLC involving the sale of eight brands in Nielsen’s Media and Entertainment Group. The closing was announced in a one-sentence mention in a memo from Nielsen Business Media President Greg Farrar. AFP has the facts and Huffington Post, considered by some to be the standard-bearer for the new breed of publishers that will succeed daily newspapers, adds detail.

That includes E&P’s string of 11 Neal Awards, a prestigious honor awarded to trade publications by American Business Media, as well as the magazine’s once-formidable position as the journal of record for the newspaper industry. E&P writes its own obituary and suggests that there’s still a possibility that the title could be carried on in some form. It also obligingly lists the e-mail address of all staff members for the benefit of recruiters.

We have often cited E&P’s work in our posts on this website, and had just this morning written a commentary on an excellent dissection of the circulation experiment at the Dallas Morning News that appeared in E&P this week. While the publications articles could be annoyingly terse at times, its features are often very good and its coverage was always timely. We have particularly enjoyed the work of Mark Fitzgerald and Jennifer Sabba and hope that they quickly find a new place to showcase their talents.

It’s perhaps fitting that we learned of E&P’s demise the way an increasing number of readers consume their news these days: it was posted on Twitter.

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Without a Clue
By paulgillin | September 4, 2009 - 7:33 am - Posted in Best/Worst, Business News, BusinessModel, Demographics, Future of Journalism, Journalism, Layoffs, NewMedia, Newspapers, OnlineMedia

We’d like to be able to close out the week on a happier note, but the evidence that newspaper executives and union leaders have no friggin’ clue about the enormity of the challenges facing them just keeps on coming. Consider:

Newspaper layoffs have hit young people the hardest, according to a survey by the Associated Press Managing Editors. The survey of 95 editors found that newsroom staffs have shrunk more than 10% in the last year and that workers between the ages of 18 and 35 were the most likely to be shown the door. This information comes at a time when newspapers are desperately struggling to become relevant to precisely that age group. It’s not that the editors want to lay off all the young staff, but union rules require them to preserve the jobs of older – and more change-averse – employees at the expense of younger and cheaper workers. We like Silicon Alley’s graphic accompanying this story. It shows a man aiming a revolver at his foot.

Ken Doctor of Outsell has a new report on the state of newspaper companies’ digital migration efforts and he comes to some pretty bleak conclusions. Newspapers derived just 11% of their revenues from digital sources in 2008, Doctor found. In comparison, the rest of the information industry gets 70% of its revenue online. In other words, the specialty publishing markets have substantially completed their migration to digital business models while newspapers are just beginning.

It gets worse. Online revenue for newspapers is now static or declining while it’s growing nearly everywhere else. And all the major publishers except Dow Jones are losing market share. “The news segment still stands out as the biggest laggard in the information industry overall,” Doctor says. Listen to our August interview with Doctor.

Miscellany

The number of reporters on Capitol Hill isn’t declining, but the profile is changing. There were 819 accredited reporters from mainstream US newspapers and wire services on the Hill in 2009, a decline of 193 – or 19% – from the previous year, according to the Pew Research Center. However, the gap is being filled by reporters from niche and specialty publications. There were 500 of them in the galleries this year, up from 335 a decade ago. As a result, the full Washington press corps has remained fairly stable at between 1,300 and 1,500 souls over the last 20 years. It’s just that newspapers now make up less than half the total, compared to two-thirds a decade ago.


The authors of the study note that ordinary Joes are privy to less and less information about their government, while well-heeled business types can afford to finance on-site reportage that keeps them in the lobbying loop. And the advantage isn’t limited to conservative business interests. “The Washington bureau of Mother Jones, a San Francisco-based, left-leaning non-profit magazine, which had no reporters permanently assigned to the nation’s capital a decade ago, today has seven, about the same size as the now-reduced Time magazine bureau,” the study notes.


The Pittsburgh Post-Gazette is the latest newspaper to jump on the pay-wall bandwagon. Its new PG+ section went live this week, offering bonus features like “social networking, live chats, videos, blogs and behind-the-scenes” look at the daily news,” according to president Christopher H. Chamberlain. Standard daily fare will remain free, but for $3.99/month or $36/year, readers will get exclusive access to the thoughts of Steelers reporter Ed Bouchette, as well as undefined special offers. We’ll see. You can tour the “PG+ Experience” here.


The folks at North America’s largest French-language daily must have liked what they saw in Boston, where The New York Times Co. successfully stared down unions at the Boston Globe and won significant cost reductions. Montreal’s La Presse will shut down Dec. 1 if the newspaper’s eight unions don’t help it cut $26 million in operating expenses. Among the concessions management is seeking are the end of a four-day work week for full-time pay and elimination of as many as 100 of the 700 jobs at the newspaper. The union says it’s open to discussion if it can see the paper’s books. La Presse cut out Sunday publication earlier this year in order to save money.

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Hyperlocal Profits: They Really Exist
By paulgillin | August 24, 2009 - 11:23 am - Posted in Advertising, Best/Worst, Business News, BusinessModel, Citizen Journalism, Future of Journalism, Journalism, Local news, NewMedia, Newspapers, R.I.P.

Hyperlocal LogoBob Garfield of NPR’s “On The Media” interviews media superblogger Jeff Jarvis and asks “Can journalism be sustained in the top 25 markets if all the dailies fold?

The question was prompted by a recent project by the City University of New York Graduate School Of Journalism that created economic models for next-generation news organizations. Jarvis says a decentralized, hyperlocal newsgathering infrastructure is not only plausible but quite profitable. Some hyperlocal bloggers are already pulling in up to $200,000 annually in revenue, he says, and that’s without the sophisticated funding and advertising mechanisms that are now being developed. We’d like to talk to one of these people.

The metropolitan news organization of the future will be smaller but no less profitable than that of today, Jarvis predicts. His study foresees a full-time staff of about 45 people with substantial contributions from locals. “It needs to work more collaboratively with bloggers and other locals,” he says. All together, a next-generation metro newsroom could have about 275 regular contributors.

“At the end of three years, our research shows that these businesses bring in margins that are reminiscent of the glory days of newspapers,” Jarvis states. “However, they’re much smaller businesses. A 20% margin on a $30 million business is not the same as on a $400 million business. But it is profitable, and that means it’s sustainable.”

Ever the optimist, Jarvis further states that journalism can become “better and richer” in the new model, Although there’s going to be some chaos in the process, “I believe we can actually improve journalism, not just save it,” he says.


They won’t be doing either in Loudoun, Va. The Washington Post Co. is closing its experimental hyperlocal site, the LoudounExtra, after two years, saying that the business “was not a sustainable model.” There were extenuating factors, however. The executives who launched the site left soon after startup and LoudounExtra never received the appropriate attention from the struggling parent company. One of those execs Rob Curley, moved on to bigger and better things in Las Vegas.

Miscellany

The Chicago Sun-Times Media Group (STMG) may be a few weeks from insolvency. The owner of the Sun-Times newspaper has just $19.3 million in cash left and is burning nearly $1 million per week, according to court documents. Chairman Jeremy Halbreich said he has been talking with several potential buyers who are more focused on cost structure than cash on hand.  STMG has been in Chapter 11 bankruptcy since March 31. If it runs out of money, it would probably have to abruptly shut down without offering severance or other transitional amenities.


The Red Wing (Minn.) Republican Eagle will cut back from five days to two days a week. “Goodhue County’s No. 1 news Web site” will continue to be updated daily. The paper said the cutbacks were being made in order to save money and to focus  reporting on its local market.


In the economically devastated region of South Florida, the 55-year-old Boca Raton News published its last print edition yesterday. The paper had previously cut back from five days per week to three. No employees will be laid off, but the paper’s offices will be closed and everyone will work from home. Perhaps this is precisely what Jeff Jarvis has in mind.


“The New York Times is quietly seeking a buyer for its Santa Rosa (Calif.) Press Democrat,” said the anonymous message that landed in our inbox. Now you know as much as we do.

And finally…

As we enter the last two weeks of summer and news all but grinds to a halt, bloggers are turning to the offbeat and bizarre. Former Baltimore Sun copy chief John McIntyre reviews a third and expanded edition of “The F Word“ (Oxford University Press, 270 pages, $11.53 on Amazon), a book that is all about, well, the “F word.” Author Jesse Sheidlower apparently scoured 500 years of English literature to trace the evolution of everyone’s favorite expletive from its mid-15th century origins on the European continent to Jon Stewart on The Daily Show. In the course of his research, Mr. Sheidlower “read an astonishing amount of Victorian pornography,” McIntyre concludes. We can’t wait till Google gets around to putting it all on line.


We’ve been reading with some dismay recently that the US no longer ranks in the top 25 countries on high school achievement test scores. We don’t want to believe that, but then we see videos like this monologue by a resident of Santa Cruz, Calif. testifying before the city Council last year about, we think, vegetables. It speaks for itself.  (Via Free From Editors.)

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Ownership Struggles
By paulgillin | August 18, 2009 - 1:15 pm - Posted in Best/Worst, Business News, BusinessModel, Circulation, Citizen Journalism, Layoffs, Local news, Murdoch, NewMedia, Newspapers, Solutions

Did you know they still do paste-up at the San Diego Union-Tribune? That’s just one of the revelations in a story about the new openness of the U-T’s management, an openness that is apparently playing very well with employees. Having laid off more than 300 people since taking control of the daily in May, Platinum Equity is now forecasting a profit of $5 million this year, which would be a major turnaround from the $8 million the paper was on track to lose when new management arrived.

The extent of the new ownership’s transparency about the paper’s finances and operations apparently surprised and pleased staffers, who had been privy to almost no financial information under former owners the Copley family. They learned that the U-T’s revenues have dropped 53% since 2006 while profitability has plummeted from $67 million that year to the expected $8 million loss this year. They also learned that the paper has shed nearly half its staff in the last 21 months. However, cuts like that are what set the stage for a return to profitability. Staffers apparently liked what they heard. They told Voice of San Diego that Platinum’s decisiveness was a welcome change from the plodding pace of change under the Copleys. Now they need to work on getting rid of those paste-up boards.


Platinum’s early success at the U-T is apparently not typical of private equity firms. Yesterday’s blockbuster announcement that Reader’s Digest is bankrupt cast a harsh spotlight on Ripplewood Holdings, which bought the publisher for $1.6 billion in 2007 and which has now seen that entire investment wiped out by bankruptcy. Reader’s Digest magazine, which was once a coffee-table staple, has suffered circulation declines of more than half over the last 30 years and 40% in the last decade. The company is staggering under $2.2 billion in debt. Under the proposed reorganization, creditors will now own 92.5% of the company, which publishes more than 100 titles. Even after the debt is restructured, though, Readers Digest will owe four times its annual earnings to lenders.


Meanwhile, the owner of Philadelphia’s two largest newspapers has proposed an audacious plan to get creditors off his back. Brian Tierney wants to swap $300 million in debt for $90 million in cash, real estate and bankruptcy costs. Under the proposed deal, creditors would get little ownership stake in Philadelphia Newspaper Holdings, while the company would walk away from most of its debt. Tierney appears to be betting that the alternative of total insolvency will scare lenders into accepting the deal, but an attorney for the creditors calls the plan a “horrible proposal.”

Miscellany

The Financial Times began charging for access to its website in 2002, and history is vindicating the London-based publisher. With media leaders like Rupert Murdoch now openly advocating for pay walls, the FT is stepping up its experimentation with new paid-content models. It plans to add a micropayment system for access to individual articles and it recently launched an online newsletter for investors in China that costs $4,138 a year for a subscription. The FT newspaper has only 117,000 paid online subscribers, compared to more than one million for The Wall Street Journal, but it charges $300 a year for Web access. CEO John Ridding says he’s pleased that the industry is finally coming around to seeing things the way the FT has seen them for many years. “Quality journalism has to be paid for,” he tells The New York Times.


EveryBlock ScreenA partnership of Microsoft and MSNBC made off with EveryBlock and Alan Mutter can’t quite believe it. “If ever there were an application designed to fast-forward newspapers into at least the late 20th Century, then this was it,” he writes. Funded by a Knight Foundation grant, EveryBlock (screen grab at right) is perhaps the nation’s most visible experiment in hyperlocal news. It covers 15 cities with news focused on tight geographic segments. Under Microsoft/MSNBC ownership, expect that coverage to expand dramatically. Microsoft was actually an early innovator in hyperlocal publishing with its Sidewalk city guides more than a decade ago. Sidewalk bombed, but the concept may simply have been ahead of its time.


Things continue to rock and roll under new ownership at the Waco Tribune. A few weeks ago, the paper made headlines when the new owner added the words “In God We Trust” under the front-page logo. Now it has jettisoned rock musician and gun activist Ted Nugent as a columnist after Nugent refused to tone down invective and personal attacks in a weekly guest column he writes. Editor Carlos Sanchez makes it clear that he was somewhat reluctant to carry out the new owner’s orders to reprimand Nugent, but he was stunned and outraged by the tactics Nugent used to lodge his protests.


The AP has one of those charming throwback pieces about The Budget, a 119-year-old newspaper that serves Amish and Mennonite communities and which seems to have none of the problems or pressures of its Internet-addled counterparts. In fact, the 20,000 readers seem to be quite militant about keeping The Budget in print and delivered by mail to their homes each week. The Budget’s owners and editors aren’t Amish, but they’re careful not to offend their pious readership. Ads for alcohol and tobacco aren’t accepted and much of the content consists of homespun diary entries submitted by a network of unpaid correspondents. To the geographically dispersed Amish, The Budget is kind of a hard-copy Facebook. It’s the way they keep up to date on births, deaths and the price of wheat. Circulation has stayed strong even during the economic downturn.

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TGIF, 8/14/09
By paulgillin | August 14, 2009 - 11:29 am - Posted in Best/Worst, BusinessModel, Circulation, Citizen Journalism, Future of Journalism, Layoffs, Local news, NewMedia, Newspapers, Solutions

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

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


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

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


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

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


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

Clown hall

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