Rick Edmonds

Researcher and writer for Poynter Institute on business and journalism issues. Co author, State of the News Media 2006. ExSP Times and Phil Inquirer


Rupert Murdoch

News Corp. rumored to be putting together a new bid for Tribune newspapers

Rumor has it that News Corp — with a $2.5 billion cash kitty for acquisitions — may be mounting a new bid for the Los Angeles Times, the Chicago Tribune and the six other Tribune newspapers.

Rupert Murdoch and his company were first reported interested in the acquisition (in a story in the L.A. Times and elsewhere) when the papers were being shopped in late 2012 and early 2013.

No deal was struck, and last July Tribune announced that it would instead spin off the papers into a new publicly-traded company, Tribune Publishing. Tribune Publishing has recently hired a CEO and other staff, and the split is now scheduled to happen as soon as Aug. 4, but at least within the next several months.

I would not typically report a publishing rumor. This one could prove dead wrong. But a confidential tip that started this inquiry was more substantive than gossip on the street. Various circumstances would make such a deal logical for both buyer and seller.

Robert Willens, a New York-based corporate tax analyst who has previously commented on the spinoff plans, said in a phone interviews that a sale to News Corp would be plausible — but much more likely after the spinoff had been completed.… Read more

Tools:
8 Comments
Screen Shot 2014-07-02 at 1.21.03 PM

As mobile ad revenue continues to soar, newspapers still struggle to catch the wave

There was a double dose of good news in eMarketer’s mid-year ad forecast released today. Ad spending will grow more than 5 percent in 2014 for the first time in 10 years. And the mobile ad boom shows no sign of plateauing with 83 percent growth over 2013 expected.

Digital giants like Facebook and Google continue to dominate the category (together more than 50 percent), while newspapers and magazine struggle to offer competitive ad buys on their mobile products.

The Newspaper Association of America’s revenue report for 2013, released in April, found that mobile advertising had grown 77 percent for the year but still accounted for less than 1 percent of total revenue.  By contrast, as Facebook reported its first quarter earnings the same month, it said mobile had grown to 59 percent of its total ad revenue.

A newspaper publisher friend summarized the state of play in his industry this way — “2013 will be remembered as the year when mobile went from infinitesimal to insignificant.”

Doing better in 2014 remains a high priority for many newspapers, but more bumps in an already bumpy road are foreseeable.

The American Press Institute held a summit on mobile this spring and found that detailed personalized data is the key to sales. … Read more

Tools:
6 Comments
nola

Advance digital makeover of its newspapers — five years in and no turning back

It seems like only yesterday, but we are closing in on five years since Advance Publications shook up the newspaper business by stopping daily publication of the Ann Arbor News, dissolving the company and reincorporating as a web-dominant enterprise.

I was reminded to take a look back at the relentless, if controversial, strategy when Advance Local president Randy Siegel released one of his regular six-month progress reports to senior executives Friday and e-mailed me a copy.  (The full text follows at the end of this post).

In the manner of such communiques at Advance and other newspaper chains, the report was upbeat, noting big increases in web traffic and digital ad sales, spiced with mentions of journalism of note and editorial prizes.

As measured by comScore, Advance’s 31 properties were up 43 percent in visits year-to-year in April and 37 percent in May, Siegel wrote, and collectively comScore ranks the sites ninth among general news sites nationally.

“All of our local markets are generating significant year-over-year growth in digital revenues,” Siegel added, led by a 66 percent increase at its Pennsylvania properties.

This prompted me to ask (and not for the first time) how Advance’s digital revenue gains compared to continuing print advertising losses.… Read more

Tools:
3 Comments
innovators-delemma copy

Naysayers are swarming on Clayton Christensen and his “gospel of innovation”

Clayton Christensen

Updated 6-24.

If business school professors were pop stars, Clayton Christensen would be Beyonce. His 1997 book, The Innovator’s Dilemma, is wildly influential — in particular, it has been both the theoretical underpinning and rallying banner for would-be digital disruptors of legacy media.

Most recently, Christensen’s thinking is central (and repeatedly cited) in the leaked 2014 Innovation Report young digital staffers of the New York Times produced this spring.  They argue that the print newspaper on which the company built its reputation needs to be de-emphasized and that, borrowing from upstarts like BuzzFeed, the Times should embrace a newsroom culture of aggressive digital development.

This month, however, Christensen has begun to gather some formidable detractors as well as acolytes.  The lead critic is fellow Harvard professor Jill Lepore who unloads a long debunking article in the current issue of The New Yorker.

The core of Christensen’s view is that big and established companies often go wrong trying to improve their dominant premium-priced product as nimble challengers whittle away at market share with much cheaper alternatives. Lepore concedes that this “dilemma” — the frequent futility of sustaining improvements — explains some business failures.  But that’s all she concedes.

Otherwise she finds Christensen building a broad general theory on the back of a few  handpicked case studies, many of which are factually and logically flawed.… Read more

Tools:
0 Comments
Bowe Bergdahl

How non-stop Bowe Bergdahl coverage hit its expiration date at CNN

FILE – This undated photo provided by the U.S. Army shows Sgt. Bowe Bergdahl. Bergdahl. His complicated story does not seem to have caught the attention of CNN like the missing Malaysian airliner story. (AP Photo/U.S. Army)

Hard on the heels of its critically slammed, but ratings friendly, wall-to-wall coverage of missing Malaysian Flight 370, CNN appeared last week to have found another big story to play big around the clock: the Bowe Bergdahl rescue.

CNN’s in-house media critic/reporter, Brian Stelter, opened his Reliable Sources show Sunday with a Bergdahl segment, saying that in the news-about-news arena “it is (the) one obvious lead story.”

But a funny thing happened Monday and Tuesday. The political storm over Bergdahl’s release in exchange for five Taliban detainees and questions over whether he deserted his unit suddenly faded to a middle-of-the-hour topic.

The Bergdahl affair did rally Wednesday with live coverage of Defense Secretary Chuck Hagel’s two-hour appearance before a congressional committee.However, it appears, going forward, that CNN’s coverage will be episodic rather than continuous.

Stelter and a CNN spokesperson declined to discuss how the decision to drop focus on Bergdahl down a notch was made or why its run was cut short after 10 days while the missing plane saga dragged on for six weeks. … Read more

Tools:
1 Comment
Pierre Moscovici

Digital disruption is now in full bloom at European, Australian newspapers

Traveling periodically to Europe and Latin America in the 2000s to speak at news business events, I got a consistent impression: international newspapers were better off than ours, but executives could see U.S.-style decline on the horizon within a few years.

Statistics released yesterday by the World Association of Newspapers and News Publishers (WAN-IFRA) suggest that digital disruption is now in full bloom in Europe and Australia. Latin American newspapers are still showing moderate circulation and advertising growth. The picture is mixed in Asia and Africa.

The summary picture now matches the United States fairly exactly:  some growth in combined digital and print audience, digital ad revenues not keeping pace and both print circulation and print advertising declining sharply.

And Larry Kilman, secretary general of the association, sees a familiar implication.  “Unless we crack the revenue issue,” he wrote in a release summarizing the findings,  “and provide sufficient funds so that newspapers can fulfill their societal role, democracy will inevitably be weakened.”

Former French Finance Minister Pierre Moscovici reads a newspaper during the EU Finance Ministers meeting, at the European Council building in Brussels in 2013. (AP Photo/Yves Logghe)

The report’s release coincides with the association’s annual World Congress conference, being held in Turin today through Wednesday.… Read more

Tools:
1 Comment
newspapers_depositphotos

Expansionary Halifax Media looks beyond its Southeast base for next buy

The Worcester (Mass.) Telegram & Gazette, long up for sale, reported Thursday that an executive team from Halifax Media Group had been in the building for several days of talks with management — a signal that the company is a likely buyer.

Halifax who? The Florida-based company, barely four years old, now has 35 dailies. With a billionaire backer, Warren Stephens of Arkansas, Halifax is pushing to the front of the line as mid-sized and smaller papers come up for sale. It bought the 16-paper New York Times Regional group for $143 million in December 2011 and 19 Florida and North Carolina dailies and weeklies from Freedom Communications six months later.

Halifax is little-known by design. Except for the occasional letter to readers, CEO Michael Redding typically does not do interviews (and I got no response to an email request that he discuss the company’s growth). But Halifax is exemplary of an acquisition boom in recent years. While billionaire hometown buyers like The Boston Globe’s John Henry or the Star Tribune’s Glen Turner get the ink, the consolidators are scooping up smaller papers by the dozen.

A landmark event for the sector occurred last September. GateHouse Media simultaneously went through a prearranged Chapter 11 bankruptcy, purchased the Dow Jones local media group (formerly the Ottaway chain) and re-emerged as publicly-traded New Media Investment Group.… Read more

Tools:
2 Comments
NAA_190

Newspaper industry narrowed revenue loss in 2013 as paywall plans increased

The newspaper industry narrowed its total revenue loss in 2013 to 2.6 percent, the best performance since 2006, according to figures released today by the Newspaper Association of America.

As suggested by earlier year-end reports from public companies, daily and Sunday print advertising revenues were down 8.6 percent and total advertising revenues down 6.5 percent.

However, circulation revenues grew for the second consecutive year, up 3.7 percent in 2013 compared to a 5 percent increase in 2012. That was driven by continued adoption of paywall plans, now at more than 500 of the roughly 1,400 dailies.

Revenue from digital-only subscriptions was up 47 percent, and print + digital bundled subscription revenue grew 108 percent. With many newspapers now offering all print subscribers a free digital access bundle, revenue from print-only subs and single-copy sales was down 20 percent.

Besides the circulation gain, the industry had 2.4 percent growth in digital marketing services offered to local businesses and showed some growth in newer activities like events and conferences.

Total revenue for the industry stands at $37.59 billion compared to $38.60 billion in 2012. Of that, $10.87 billion comes from circulation.

The NAA calculates digital advertising revenue rose 1.5 percent for the year and now accounts for 19 percent of ad revenues.… Read more

Tools:
2 Comments
Anchorage Daily News homepage _ via Newseum.

Alaska newspaper sale: a second look at money, logic behind purchase

The news out of Anchorage Tuesday afternoon had one of those story lines too good to check — plucky little digital upstart Alaska Dispatch is buying the legacy Anchorage Daily News for $34 million from The McClatchy Co.

Well, yes. But several accounts, including those of The Associated Press and Reuters, neglected to mention that Alaska Dispatch owner Alice Rogoff is married to multi-billionaire David Rubenstein, co-founder of The Carlyle Group private equity firm. The Dispatch, in its thorough takeout on Rogoff, noted that she is wealthy in her own right. Her father was an engineer and businessman who invented a key component of GPS systems and cell phones.

So the financial story is that another rich person has bought another hometown paper.  A little twist was that the Anchorage Daily News was not for sale until Rogoff made her offer. McClatchy shares took a modest bump up the morning after the sale, indicating the stock market is good with this kind of sell-off. We seem to be entering a period where newspaper groups are quite willing to dispose of some titles as The New York Times Co. did with its regional newspapers and The Boston Globe.

Also, unlike other well-off buyers like John Henry in Boston, Doug Manchester in San Diego and Glen Taylor weeks ago in Minneapolis, Rogoff comes with her own news operation.… Read more

Tools:
0 Comments
Technology background, News text in perspective

What went wrong at Digital First Media — and what’s next?

The announced shutdown of Digital First Media’s national newsroom Wednesday and the probable sale of its 75 daily newspapers later this year is a significant jolt to those who believe a viable business model for rapid transformation of legacy operations is close at hand.

CEO John Paton’s explanation in his blog that the company has decided to dismantle Project Thunderdome “to go in a new direction” barely hints at the converging economic troubles.

Most basically, the very able editor Jim Brady (a Poynter National Advisory Board member) and his lieutenants were like a crack auto racing team trying to succeed in a highly competitive field driving Chevy Cobalts.

The two companies that were merged into Digital First, Journal Register and MediaNews, have both been through bankruptcies, Journal Register twice. Both had been under-invested for years in content management systems and other essential technology.

Steve Buttry, who was just months into “Project Unbolt” to hasten the break from print habits to digital, told me the four pilot papers for that project all had different CMSes, none of them especially good.

It is myth, embraced by digital future-of-news enthusiasts, that Web publishing is close to free. Paton seemed of that view early in his tenure when he asked newsrooms to use mainly free tools to put out their reports for a week.Read more

Tools:
3 Comments