Newspaper vendor

Death of newspapers announced prematurely (yet again)

I woke up thinking today was much like any other on the news-about-news beat, that is until I learned from David Carr and the New York Times that “Print is Down, and Now Out.”

Really? Let me beg to differ.

For starters, Carr is, as the country song goes, looking for love in all the wrong places if he wants validation from Wall Street. The financial prospects of newspaper organizations are not comparable right now to those of local broadcast or growing digital classified brands.

So investors are performing their role and corporate execs responding logically with the wave of spinoffs completed last week with Gannett’s announcement it will split its community newspaper division and USA Today into a new company early next year. We shouldn’t look to the money guys for a ringing vote of confidence in the public service mission and democratic role of print journalism.

Carr equates the spinoff to being “kicked to the curb.” Kindred spirits like Michael Wolff are also pretty sure life as an independent company is a way station to print’s doom — and sooner rather than later. Read more

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Thursday, July 31, 2014

breakup rope  on big dollar background

Splitsville: Why newspapers and TV are going their separate ways corporately

Like the sale of the Washington Post this time last year, the merger of E.W. Scripps and Journal Communications, announced last night, and their reorganization into separate print and broadcast companies came as a jaw-dropping surprise.

But the morning after, the complicated transaction makes perfect sense.

  • Local broadcasting is seeing a wave of consolidations. The business is healthy, and getting bigger provides station groups more leverage negotiating retransmission fees with cable providers. That has become a significant new source of revenue growth as political and automotive advertising remain strong.
  • Financially squeezed newspapers drag down the share price of companies with prospering TV, cable and digital divisions. The spinoff of Tribune Publishing scheduled next week and the division of News Corp a year ago give the remaining parent television and entertainment companies investment wind at their back.
  • At the same time, newspaper groups theoretically do better with management whose exclusive focus is on the particular challenges of that industry. 
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Tuesday, July 29, 2014

New York Times Sales

NYT’s new digital apps and subscriptions are off to a bumpy start

On the surface, the New York Times Co. had a very positive headline number as part of its second quarter earnings report today — a 32,000 digital circulation increase, driven by three newly introduced digital services.

But in a subsequent conference call with analysts, executives were quick to concede that the launch of NYT Now, NYT Opinion and Times Premier has been anything but smooth.

Several months in, the Times is still trying to get offers, terms and audience targeting right, especially with the NYT Now app aimed at smartphone users, said Denise Warren, who directs digital products for the company. As result, the company fell short of its initial goals for new subscribers and revenues. NYT Opinion is also a smartphone app with a separate subscription tier.

Times Premier offers extra helpings of content, seemingly aimed at upselling to existing subscribers. It includes several features — including Times Insider reports on stories behind the journalism — that have been marketing separately.  Read more

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newspapersfeatured

Newspaper industry lost another 1,300 full-time editorial professionals in 2013

The American Society of News Editors annual newsroom census, released today, found a net loss of another 1,300 full-time professionals last year.

That was better than the 2,600 net job loss in 2012 but brings total newsroom employment at newspaper organizations to roughly 36,700, a decline of 3.2 percent from the 38,000 counted in last year’s census.

Newsroom employment has fallen 33 percent from a pre-recession peak of 55,000 in 2006 and is down 35 percent from its all-time high of 56,900 in 1989.

Asked for reaction to the 2013 census total, ASNE president David Boardman, dean of the Temple University School of Media and Communications,  told me by phone, “Well, here we go again….Obviously we should all continue to be concerned about the losses.”

The census has been conducted since 1978 to measure progress in newsroom diversity.  On that front, the news was better, with a small gain of 200 minority employees last year. Read more

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Wednesday, July 23, 2014

Gannett

If Gannett is a bellwether, 2014 will be another tough year for newspaper advertising

the sign for Gannett headquarters is displayed in McLean, Va. (AP Photo/Jacquelyn Martin, file)

the sign for Gannett headquarters is displayed in McLean, Va. (AP Photo/Jacquelyn Martin, file)

Since the Newspaper Association of America stopped reporting quarterly revenue results last year, I have looked at Gannett’s numbers as a reasonable proxy for the industry. Here are three takeaways from yesterday’s second quarter earnings report and conference call with analysts.

  • National advertising was terrible in the second quarter (down 16.3 percent compared to the same period in 2013) for Gannett’s publishing division. Despite a small gain in digital advertising and marketing services, overall advertising was down 6 percent.CEO Gracia Martore told analysts she had heard of similar weak national results from friends in the industry, as have I.  One explanation, on top of the stop-and-go economic recovery — the World Cup was an attractive advertising opportunity for big companies, and they pulled from print budgets to go heavy in social media.

    The third quarter is looking somewhat better, she said.

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Tuesday, July 22, 2014

AP F IL USA EARNS TRIBUNE

Eighteen months after dropping AP, Tribune happy with Reuters

When newspaper ad revenues were in free fall in 2008, there was much angry complaining among editors about the high cost and inflexibility of the Associated Press service. At a gripe session in Washington, one editor compared the cooperative to the USSR’s politburo.  Threats to quit were common.

In the end though, AP cut its rates, offered several levels of service and has retained the great majority of its newspaper members (who also own the cooperative and hold most its board seats).

But there was an exception.

Starting in 2009, Chicago Tribune editor Gerould Kern quietly began working with Reuters to build an acceptable substitute service.  Kern told me the Chicago Tribune ran its last AP material in March 2012.  With six other Tribune papers (but not the Los Angeles Times), it dropped AP entirely at the start of 2013.

Kern said in a phone interview that he cannot recall a single reader complaint about inferior wire coverage.  Read more

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Wednesday, July 09, 2014

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.  Read more

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Thursday, July 03, 2014

usatoday-small

Case Study: Gannett’s monumental task — A content management system for all

(This case study, the fifth in an occasional series, was underwritten by a grant from the Stibo-Foundation.) Note: CCI Europe is a subsidiary of Stibo, whose foundation made a grant for this series. The funder had no editorial input on the study.

In 2011, Gannett Co. owned more than a hundred newspapers and television stations – each with its own website. To publish its online material, the company was supporting about a half dozen content management systems.

Journalists in most of the company’s broadcast newsrooms wrote and published their digital stories through a homegrown CMS called Newsmaker, while almost all of Gannett’s newspaper websites were powered with Saxotech. But the Arizona Republic had its own system known as Enigma, and the Des Moines Register posted some of its content through WordPress.

Meanwhile, Gannett’s flagship publication, USA Today, maintained its site with a proprietary system it simply called “CMS.”

The assortment of software left Gannett no easy way to share web content among its properties, and some systems lacked basic functions such as the ability to embed hyperlinks or multimedia into articles. Read more

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Tuesday, June 24, 2014

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. Read more

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Thursday, June 19, 2014

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. Read more

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