Speaking of new media juggernauts, I chatted in the conference lobby with Belo Corp. chairman Robert Decherd about the scheduling of his presentation opposite one by Google. He joked that he and his colleagues would do it responsive-reading style to an empty room if necessary.
But in fact a respectable crowd of 100 turned out to hear a more detailed discussion of previously announced plans to split the company in two, spinning off newspaper and interactive ventures, leaving Belo a “pure-play” local television business. Decherd will go with the nee newspaper/interactive company, A.H. Belo, and an 18-24 month transition is under way.
Ultimately, Decherd conceded, A.H. Belo will be competing in some markets for share against the mostly independent television station company, whose CEO will be his longtime right-hand woman, Dunia Shive. But for right now interactive and new business development will remain in the newspaper company and sold as services for a fee to the television unit. There is a little “leap of faith” that such issues can be worked out smoothly, Decherd said.
Belo declined to offer any detailed financial projection for 2008, as did Milwaukee-based Journal Communications. Journal CEO Steve Smith told me it was not a matter of side-stepping bad news (2008 is expected to be better than 2007) so much as a volatility in the business that makes most any forecast unreliable.
Media General executives did forecast a “much stronger” 2008, based on growth of Internet and hyperlocal ventures and local television political advertising. The company did caution that the challenging newspaper publishing business is expecting a 10 to 12 percent increase in the price of newsprint.
