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Archive for July, 2015

What’s wrong with news companies? Do they have a strategy for surviving past the age of print? Why aren’t they executing it? Why do they only cut expenses? Why don’t the billionaires build the digital news business model?

The questions have been asked for so long that they grow tiresome.

After Ken Doctor’s recent piece on whether newspaper companies are even trying to build a sustainable digital business model, I had a Facebook discussion with a friend who has a digitally based job with a television station. He said, in part:

“Big Media print organization wont last much longer. If warren buffet cant figure out a business model for you – who will? My guess is they will milk as much as they can until it isnt profitable any more and then the papers will have to buy the rights back to their names. My advice would be just to start a blog, hire some stringers per piece and get a good, small digital sales team together.”

And that’s what so many people say, in a nutshell. Chuck the paper now, the legacy costs as well as the legacy revenue, and just go whole hog into digital.

That might seem like a slam dunk to those in the digital business, but it makes a giant assumption: that the people running news companies are primarily interested in journalism.

I have argued increasingly what is implied in Doctor’s new article for Nieman Lab, that those running the news business by and large are not in it to serve the community, which is why there is not great concern with making sure there is a future news model that works.

The idea of retooling and refocusing, of giving up some — or, to be more accurate, most of — your current revenue to build a currently less profitable kind of business that has more legs, so that local journalism survives matters only if what is of top importance to you is local journalism. If you don’t care about journalism, if you are first and foremost a business person, your decisions are based on current revenue. Why would you cut your profit on purpose to pursue a theory that may, possibly, bring you more money in 20 years than your current path is likely to bring? That’s 20 years away — and it’s a theory.

Take my friend’s example, Warren Buffett. People keep pointing to him and saying he hasn’t “figured out” a business model. But look back at his statements. He never said he would reinvent the industry. What he has said is that if someone else finds something that actually works, he would evaluate it, but in the meantime he thinks small, locally focused papers can be profitable for some time.

And that’s what made Buffett a billionaire — looking for places where there is money to be made with minimal investment. He isn’t a venture capitalist.

We keep waiting for someone with deep pockets to rescue journalism. Charles Foster Kane existed only in the movies, but even there he was losing $1 million a year.

News people will not stop feeling screwed around by the people on the business side until there are no more business people left, and they will have left because there was no more money to be made.

When journalists move on from newspapers, it feels different. It’s personal. It’s more than a career shift and a mindset change.

When business people leave newspapers, they don’t change careers, they just move on to the next job. It isn’t personal. It’s ledgers, assets, liabilities and margins — money in, money out.

That’s why it feels like such a betrayal to journalists, and why journalists never seem to understand why everyone seems only to want to break their hearts.

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My company’s group of NC papers is migrating to a new CMS. I’m the lead for my paper. Within the setup questionnaire that started the process, there was an option for a free “day pass” for non-subscribers. I checked that box. Why not? Let a curious non-reader in. Maybe, best-case scenario, you gain a reader. Worst-case, someone who never reads you leaves that incremental revenue associated with the online ads that displayed with that person’s visit.

Later, I was told, nope, can’t do that. Nothing free is allowed.

How about $1? The iTunes 99 cents? Nope, it’s less than the charges that would be associated with the payment system.

So what is the one-day charge? $5. Read again: FIVE. DOLLARS.

“You have lost your f***ing mind,” I said.

I have been fortunate in my career that I have had multiple bosses who tolerate being spoken to that way.

“You have lost your f***ing mind,” I repeated. “Who would pay that?”

Still, my objections aside, that’s the plan. Come Aug. 7, at the latest, that’s the cost. Also the cost for a full week. The hope, if not the theory, is people will choose a week — and not, as I maintain, just give up.

I likened it to erecting an admission gate at Sears and saying you couldn’t come in unless you paid $5. I can walk through Sears or any retail store in this country, peruse the wares, pick them up, wack fellow customers in the arm with them, etc., without paying a dime and without any horribly overt ads confronting me.

I lost this argument.

Meanwhile, a free startup website that we had passed in social engagement has switched to a more aggegration-based strategy and has passed us in at least some measures, though it has less actual news content than it did before (its content is entirely social, press release or spot news the poster comes upon). But it’s free. I’m told, by those in the business, its ad rates mean it can’t possibly be making any money. But I’m told, by people in the community, that it’s intending to hire staff.

I don’t know yet who wins that argument.

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I spent most of the 12 years before coming to Lenoir trying to translate the national discussions about new media and news transformation for small newsrooms. Everyone talks in terms of big newsrooms and metro papers. But in terms of the national media scene, those are a minority of news organizations. The things that are of top importance in their newsrooms are luxurious daydreams for most newsrooms in the country.

In that sense, I was amply prepared for my current job. Yet I remain frustrated that smaller newsrooms, even those much larger than mine, seem to be less than an afterthought in journalism-discussion circles.

Take, as just one example, the Denver Post memo about the paper’s newsroom reorganization, much publicized and much discussed. “As part of the public meetings starting later in July, think about what The Post should cover, how should we be organized, what beats would you start and which would you eliminate,” it says.

It is the latest of many news conversations focused on rethinking what newspapers do cover versus what we should.

Good. I agree. Let’s rethink it.

I have four reporters in my newsroom, with these beats: sports (all), justice (cops and courts, countywide), city-county (Lenoir city government plus county government), and education plus the other five and a half (one is on the county line) small towns throughout the county.

I have no idea how I might reconstruct things to get better coverage. Literally everyone is a generalist. Half of all stories, at least, are what the city folk would call general assignment.

Do I stop having people cover the small towns in the county? That one reporter would like having Monday and Tuesday nights back, but the town leaders would view it as abandoning coverage, which would feed the negative narrative in the towns about our coverage. They are small towns. The average citizen in Charlotte may not give much weight to what his or her city council member thinks of the Observer’s coverage, but in Gamewell the elected officials are authorities, to many, and if they go around saying the newspaper doesn’t care, that carries significant weight.

Or maybe there should be no beats based on government structure at all. Except that my reporting staff is entirely under the age of 25 and from places other than here. Where would they begin? Beats, lets remember, are structure and help a new reporter figure out where to begin.

Or perhaps everyone would agree with me, that my newsroom is smaller than anyone would contemplate trying to reorganize beat structures.

Yes, well, move on, then, but it won’t mean I am less affected by the restructuring of media habits, advertising and news consumption patterns than you are.

The national discussion in journalism is divorced from the reality that the majority of papers face. Yet I know it is what the people on my staff will face if and when they decide to seek a job at a larger newsroom. And I know, from experience, that whatever larger newsrooms confront now will manifest themselves eventually in smaller newsrooms. Except it will be different, and no one will talk much about it then.

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