Reuters blog archive
By Jeffrey Goldfarb
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
A Gannett breakup is really just a matter of Time. The $6.6 billion owner of USA Today and other newspapers isn’t getting much credit for its TV transformation. As Time Warner sets free its publishing arm this week, a Breakingviews analysis suggests Gannett should do the same.
Along with the imminent spinoff of the vast Time magazine rack, Tribune is in the process of creating a standalone company for the Los Angeles Times, Orlando Sentinel and other dailies. Ink-stained Rupert Murdoch essentially kicked off the trend two years ago after lieutenants finally convinced him to separate newspapers including the Wall Street Journal, the Sun and the Australian from the Fox entertainment empire.
The splits have paid off. Shares of all three parent companies, including over-the-counter-traded Tribune, have outperformed the broader market after disclosing plans to offload their print businesses. That can’t have escaped the notice of Gannett boss Gracia Martore, who last year spent $2.2 billion to buy broadcaster Belo in a move that dramatically increased the company’s dependence on television. At the same time, she has pursued new subscription and advertising revenue ideas for the newspapers.
from Jack Shafer:
Neil Barsky, a former Wall Street money manager, became the latest Medici of journalism this week when he hired Bill Keller, former executive editor of the New York Times, to head his new non-profit journalism enterprise, the Marshall Project.
The Marshall Project, which will scrutinize the criminal justice system, joins a busy flotilla of non-profit journalism organizations already patrolling the news beat. Everywhere you look, a rich patron has founded, funded or seeded a substantial non-profit journalism outfit in the last half-decade: Herbert Sandler and ProPublica, John Thornton and the Texas Tribune, Pete Peterson and Fiscal Times, the Koch brothers and the Franklin Center, John Arnold and WNET, scores of other local and regional operations funded by minor Medicis, and well-established enterprises, such as the Center for Investigative Reporting and the Center for Public Integrity.
from Jack Shafer:
Oh to be a fly on the wall Jan. 15, when Tribune Co. executives meet with the staff of Rep. Henry A. Waxman, D-Calif., in a command performance to explain the media conglomerate's plans to spin off its newspapers -- which include the Los Angeles Times, the Chicago Tribune, and the Baltimore Sun -- into a separate company named Tribune Publishing.
Waxman called for the meeting in mid-December after Tribune filed its blueprint with the Securities and Exchange Commission, arguing in a letter that the restructuring may not "be in the best interests" of his constituents, who live in the Pacific Coast-hugging congressional district that runs inland to include Beverly Hills. The spin-off will essentially defund the newspapers, Waxman argued, specifically the Los Angeles Times, which his district depends on for news. Under the terms of the restructuring, the Tribune Publishing newspapers will pay a cash dividend to Tribune Co. The newspapers will also lose their real estate holdings, forcing them to pay rent for their current facilities.
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.
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.