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June 26th, 2008

More newspaper cuts… anyone surprised?

Posted by: Paul Thomasch

tribune-tower.jpgSo Tribune Co is cutting jobs at The Sun in Baltimore and Hartford Courant.

Not to sound callous, but by this point should anyone be surprised by news that a publisher is getting rid of jobs? After all, this is shaping up to be one of the worst years in memory for the newspaper business.

The upshot: The Sun will lose 100 jobs, 60 of them in the newsroom, and the Courant will cut about 60 jobs. (Don’t forget, Tribune is also cutting jobs at the Los Angeles Times and Chicago Tribune)

But it’s not just Tribune. It seems everyone is cutting jobs as advertising revenue plunges thanks to the one-two combination of a weak economy and competition from the Internet for marketing dollars.

Here’s what the union had to say about Tribune’s cuts:

“Baltimore Sun employees are being punished for Tribune’s mismanagement,” Cet Parks, chief negotiator for the Washington-Baltimore Newspaper Guild, said in a statement. “Tribune’s answer to solving declining circulation and readership is to slash employees from the payroll and cut the news hole, salaries and benefits.”

Perhaps that is their answer — but is there a better one out there? So far, nobody seems to have found one.

Keep an eye on:

  • WPP Group chief Sir Martin Sorrell is warning that Google is trying to do an end-run around ad agencies. But French rival Publicis is keen to partner with the search giant - and just about anyone else in the online realm (NY Post)
  • Video games are known to improve hand-eye coordination but can they help someone quit smoking or lose weight? (Reuters)
  • NBC has settled a lawsuit filed by the family of a man who killed himself when confronted with cameras for the documentary series “To Catch a Predator” (NY Times)
  • It costs less to run run ads during “The Office” on Hulu than NBC.com. But keep in mind you can’t buy individual shows on Hulu, just demographics across a number of shows (Silicon Alley Insider)

(Reuters photo of Tribune Tower)

May 16th, 2008

Look out, Yahoo!

Posted by: Michele Gershberg

spider.jpgRemember those scary movie close-ups of a fly caught in a spider’s web, or some tourist who steps into quicksand, or another variation of the same? How with each twist and turn to get free, the captive enmeshes themselves deeper into the trap? 

We’re starting to get that uncomfortable feeling about Yahoo as it dodges the embrace of Microsoft while trying to orchestrate a partnership with Google that won’t encroach on its own business. The New York Post says today that a deal with Google, already at the “any minute now” stage for almost a month, could be sealed next week.
    
Some of the moves could provide a boost down the line, like a new ad-trading partnership with WPP Group, the world’s second largest advertising services company. 
    
[N.B. WPP chief Martin Sorrell said last week it was a shame Yahoo and Microsoft couldn't work it out, since their break-up just leaves Google the biggest kid in the playground]
    
But Yahoo does not have that much more time to prove it can go it alone. Yesterday, Yahoo stood up to billionaire Carl Icahn, who officially launched his proxy fight to deliver the company back to Microsoft. That means there must be some resolution by the time Yahoo’s shareholders meet on July 3. (Reuters)

Keep an eye on:    
* “Gossip Girl” can’t save ratings for the CW network. (WSJ)
    
* Fox embraces Less Is More principle, cutting ad time for two new shows. (Hollywood Reporter via Reuters)

* Microsoft to save cheap laptop program for the world’s poorest schoolchildren. (WSJ)

(Photo: Reuters)

May 6th, 2008

WPP won’t be left out of takeover drama

Posted by: Paul Thomasch

It may not seem as sexy as Yahoo-Microsoft, but there is another notable takeover saga brewing in media. This one is between WPP, the British advertising group, and Taylor Nelson Sofres, the market research firm.

Why does WPP want TNS badly enough that it continued to urge the research firm to engage in talks even after its $1.9 billion bid had been rejected?

It’s partly because research has become so much more essential to advertising these days. With so many media outlets, it doesn’t come as a shock that advertisers are desperate for more information about their products and markets.

WPP Chief Executive Martin Sorrell expressed surpise and disappointment that the board of TNS turned down WPP’s offer. But perhaps this is just a bit of cat-and-mouse, with WPP prepared to come back with a bigger number for TNS, which is also talking with Germany’s Gfk. 

“Given the potential for greater returns, we believe WPP could afford a higher offer,” analysts at UBS said in a note to clients.

Of course, nearly everyone was saying the same thing about Microsoft over the last few weeks, and we know where that went.

(Reuters)

Keep an eye on:

  • NBC Universal has reach an exclusive deal with with the “Project Runway” production team, less than a month after it was outbid for rights to the cable show by Lifetime Networks. Now a new production team has to be put in place. (LA Times
  • Microsoft is adding TV shows to its Zune marketplace, offering rougly 800 TV shows, each for $1.99, for download from places such as Comedy Central, MTV and NBCU. (paidContent)
  • CBS Radio CEO Dan Mason, meeting with advertisers, dismissed the notion that the iPod and satellite radio will kill radio. “To say that an iPod or satellite radio, with little or no human connection will ever replace radio is absurd.” (paidContent)

(Photo: Reuters)