Reuters blog archive
from Jack Shafer:
Sometime in the mid-1990s, the Web began to peel from the daily American newspaper bundle its most commercial elements, essentially the editorial sections against which advertisements could be reliably sold. Coverage of sports, business and market news, entertainment and culture, gossip, shopping, and travel still ran in daily newspapers, but the audience steadily shifted to Web sources for this sort of news. Broadcasters had dented newspaper hegemony decades ago, absconding with breaking news and weather coverage, and inventing new audience pleasers, such as traffic reports and talk. But it was the Web that completed the disintegration of the newspaper bundle that dominated the news media market for more than a century. In addition to pinching the most commercial coverage from newspapers, the Web has also made off with the institution's lucrative classified ads market, simultaneously reducing its status as the premier venue for content and advertising.
This isn't to say newspapers deserted the commercial news categories. Newspapers have maintained their presence in the sports-weather-business-entertainment-culture departments to attract readers who attract advertisers. Even so, circulation has eroded and ad revenues have fallen to below 1950 levels in real dollars. The units of the newspaper bundle not yet ransacked by the Web -- international, national, state, local, and political coverage -- have (to paraphrase Frank Zappa) little-to-no commercial potential. Traditionally, newspapers have struggled selling space to advertisers by invoking these news varieties unless the news is absolutely spectacular or sensationalized. As the bundle fragments, it becomes more difficult for publishers to support non-commercial news.
Outlets such as Politico (a child of the Web) and the Bureau of National Affairs (a pre-Web entity, now owned by Bloomberg), which were designed to commercialize news about politics, the federal government, regulatory affairs, political campaigns, law, and lobbying, have succeeded in targeting an elite Washington, D.C., audience with this kind of news. But those successes don't subtract from the fact that Washington news is a loss leader for most mainstream newspapers. The same is largely true of international and national news. No mass audience is willing to directly pay for such news outside of the one already served by the New York Times (combined daily print and digital circulation, 1,865,318). Even At the Times, subscribers now contribute more revenues than advertisers, indicating that they value its mission more than Madison Avenue does.
This discussion would be incomplete without crediting the Wall Street Journal, the Associated Press, and the home team at Reuters for chasing news that can’t be directly monetized. A semblance of the traditional news bundle survives at these places for legacy reasons and because the Web hasn’t usurped their positions in the journalistic order. The day may come, however, that falling revenues force them to redefine their editorial missions, too. That day may close on USA Today, a frequent purveyor of noncommercial news, sooner than later.
from Anatole Kaletsky:
It is now a week since Jeff Bezos, the founder of Amazon, announced that he was buying the Washington Post, in what could be the most exciting case of convergence between the new media and the old since the merger of AOL with Time Warner. But how might Bezos re-launch this venerable flagship of U.S. journalism? And what could his ownership of the Post mean for news businesses around the world?
These may seem strange questions for a column devoted mostly to controversies in public policy and economics, but newspapers today are a declining industry comparable to the steel and shipbuilding industries in the 1980s, and employ even more people at higher wages. Newspapers are therefore of great economic significance, not to mention their importance to democracy. Yet public discussion often assumes that journalism is technologically doomed. The Internet, it seems, is ineluctably turning news and analysis from a thriving industry, gainfully employing millions on decent incomes, into an unpaid hobby for philanthropists or self-promoters who will earn their living by other means.
from Nicholas Wapshott:
The last few days have seen a flurry of purchases of ailing print journalism flagships. The Boston Globe was sold. Newsweek changed hands again. And, most spectacular of all, the Washington Post was bought for chump change. Meanwhile, the Tribune group -- publisher of the Los Angeles Times and the Chicago Tribune -- is readying itself for sale.
There is nothing new about rich men buying newspapers. The surest way to enhance personal prestige is to become a press magnate. As Rupert Murdoch’s second wife Anna replied when asked how she was enjoying Beverly Hills, “It’s not the same if you don’t own the paper.” But something more interesting is going on than social climbing. New technology billionaires are picking up old money properties for a song. Online is moving in on hard copy. This is not evolution, it is a revolution.
from Jack Shafer:
As the American newspaper business began its red-ink slide in the late 2000s, I fully expected a billionaire to rescue the financially struggling Washington Post. But I never thought its savior would be Amazon founder Jeff Bezos, who purchased the paper today for $250 million.
I put my money on Michael R. Bloomberg's money, in a July 2012 column titled "How Bloomberg can still run Washington" because he seemed like such a logical buyer. Unlike Bezos, Bloomberg already owned a media empire comprised of a news service, a cable channel, a weekly magazine, and more. Unlike Bezos, Bloomberg had toyed in semi-public with the idea of buying either the New York Times, the Wall Street Journal, or the Financial Times. Unlike the 49-year-old Bezos, who has been building spaceships and an eternal clock with his mad money, the aging (71 years old) Bloomberg seemed to need one last great gesture in his career before called to paradise. He wasn't ever going to be president, a campaign he had gamed out. As for running the World Bank, a job Bloomberg was reportedly shopped to fill, well, that would be a step down from Emperor of New York City.
from Jack Shafer:
Alternative weekly colossus Boston Phoenix cracked and fell yesterday, ceasing publication after 47 years. According to a Phoenix executive quoted in the obituary in today's Boston Globe, the alternative weekly was losing more than $1 million a year, and a format switch last fall from newsprint to glossy had failed to attract the sort of national advertising it desired.
Once one of the leading alt-weeklies in the nation, the dead paper leaves behind $1.2 million in debt and roughly $500,000 in assets. The fact that its owner didn't -- or couldn't -- sell the publication to cover some of its debt signals the illness of the greater alternative weekly market.
from Jack Shafer:
Last week, Washington Post Publisher Katharine Weymouth discontinued the ombudsman position, replacing it with an ambiguously defined "reader representative" to whom readers will be able to address their "concerns and questions," as soon as the paper gets around to appointing one.
This "ombudsman lite" slot is a radical dilution of the old position. As conceived back in 1970, the ombudsman’s job was, in former Post Executive Editor Ben Bradlee's words, "to monitor the paper for fairness, accuracy, and relevance and to represent the public in whatever strains might arise from time to time between the newspaper and its readers." (Emphasis added.) The Post ombudsman was "resolutely autonomous," Bradlee wrote. Working on contract rather than staff, the ombudsman was given the independence to write about whatever he wanted to write about. He couldn't be assigned. He couldn't be edited. And he couldn't be fired, Bradlee continued.
from Jack Shafer:
The New York Times Co. has been shedding its non-core assets, smoothing its cost structure, strengthening its balance sheet and rebalancing its portfolio with such haste over the past two years that only a cruel and unusual press critic would urge it to quadruple those efforts.
I am that cruel and unusual press critic.
The company was a diversified media outfit 10 years ago, owning eight television stations; two radio stations; 16 newspapers in addition to the New York Times, the Boston Globe and the International Herald Tribune; and a slew of websites. It had a market cap of about $7 billion. Today, the emaciated operation is worth a notch over $1 billion on a good day.
from Jack Shafer:
From their lazy fingers to your scratchy eyeballs, journalists are now transmitting their "year in review" articles and "best of 2012" lists if, unlike the New York Times Book Review, they haven't already published their lists of 100 notable books or their 10 best round-up.
In the coming days, a torrent of best-of-year-in-review copy will crack, crumble, and flow like a calving glacier from the keyboard in business, sports, arts, and editorial sections across the land and plop into readers' laps. Hundreds, perhaps thousands, of beat reporters, political columnists, gossip columnists, tech columnists, and art critics of every denomination will type out their arbitrary listicles about the best and worst of the year and otherwise describe the 11-and-one-half-months just past. Lined up, one-by-one, the best-of-year-in-review packages resemble the floats gliding down wide boulevards during a New Year's Day parade: colorful, big, but pointless. My own news organization, Reuters, builds its own floats, as its "Year in Review 2011" package proves.
In a moment of dubious etiquette, venture capitalist and Netscape co-founder Marc Andreessen said at a New York Times conference this week that the company should dismantle its print operations not in ten years, or five, but “as soon as possible.” Cue print lovers’ outrage.
from The Great Debate UK:
--Laurence Copeland is a professor of finance at Cardiff University Business School. The opinions expressed are his own.--
If you ask a lawyer what to do, he'll recommend a legal remedy – what do you expect? In the same way, many of our politicians have a background as lawyers, so no wonder we have such a proliferation of unnecessary laws. Besides, it does provide plenty of work for old pals…