The downward spiral of Aaron Kushner and the Orange County Register continues, reports Christine Haughney of The New York Times. The latest — a round-up of what has appeared elsewhere — includes unpaid bills, lawsuits, Kushner’s stepping aside as publisher (“I was not removed,” he insists) and, of course, Kushner’s soothing reassurances that everything is on track.
In April, when Orange County Register publisher Aaron Kushner launched the Los Angeles Register, the bloom was already off the rose. (Here’s what I wrote in June.) So it’s not really a surprise that Kushner is shutting down the misbegotten daily. Andrew Khouri of the Los Angeles Times has the details.
And here’s the inevitable quote from Kushner and his business partner Eric Spitz about all those darn naysayers:
Pundits and local competitors who have closely followed our entry into Los Angeles will be quick to criticize our decision to launch a new newspaper and they will say that we failed. We believe, the true definition of failure is not taking bold steps toward growth.
Image via the Newseum’s Today’s Front Pages.
On the East Coast, The Washington Post is in the midst of a revival that could return the storied newspaper to its former status as a serious competitor to The New York Times for national and international news. On the West Coast, the Orange County Register is rapidly sinking into the pit from which it had only recently crawled.
The two contrasting stories are told by the Columbia Journalism Review’s Michael Meyer, who writes about the Post in the early months of the Jeff Bezos era, and Gustavo Arellano of OC Weekly, who’s been all over Aaron Kushner since his arrival as the Register’s principal owner in 2012.
First the Post, which has been the subject of considerable fascination since Amazon founder Bezos announced last August (just a few days after John Henry said he would buy The Boston Globe) that he would purchase the paper from the Graham family for $250 million.
Bezos’ vision, as best as Meyer could discern (Bezos, as is his wont, did not give him an interview), is to leave the journalists alone and work on ways to expand the Post’s digital audience across a variety of platforms. Meyer describes a meeting that Bezos held in Seattle with executive editor Marty Baron and other top managers:
Baron says he came away from the weekend in Seattle with a clear sense of what the Post’s mission would be in the coming year: It had to have “a more expansive national vision” in order to achieve the ultimate goal of substantially growing its digital audience. Baron brought this directive back to the newsroom, and the editors set about building a plan for 2014, a year managing editor Kevin Merida dubbed “the year of ambition.” At one point in the budgeting process, Bezos even admonished the leadership for not thinking big enough. “I think that we had been in the mode of sort of watching our pennies,” Baron told me. “We were just being more cautious at the beginning so he came back with an indication that we should be more ambitious.”
Among the more perplexing moves (to me at least) that the Post has made under Bezos has been to cut deals with more than 100 daily papers across the country so that paid subscribers to those papers would receive free digital access to the Post as well. Locally, the papers include the Portland Press Herald as well as Digital First Media’s papers, such as The Sun of Lowell, The Berkshire Eagle and the New Haven Register.
Journalistically, it’s a good deal for subscribers, since they get free access to a high-quality national news source. But no money changes hands. So how is it any better for the Post than simply offering a free advertiser-supported website, as it did until instituting a metered paywall last year? Meyer tells me by email that “the reason they are doing this is for customer data. A logged in, regular user is a lot more data rich than someone who just happens across your site from time to time.” He adds:
Data is the key difference between this program and just having a free website. And another key difference to my mind is psychological. The readers of partner newspapers feel like they’re being given something that would otherwise not be free. This adds value in terms of how they view their subscriptions to their home newspapers. And also adds value in terms of how they view the Post’s content. My guess is they will use the service more as a result.
And as Meyer writes in his story, “Anyone interested in seeing how consumer data might be used in the hands of Jeff Bezos can go to Amazon.com and watch the company’s algorithms try to predict their desires.”
The story Gustavo Arellano tells about Aaron Kushner and the Orange County Register has become well-known in recent weeks, in large measure because of Arellano’s own coverage in the OC Weekly. Kushner has spent 2014 rapidly dismantling what he spent 2012 and 2013 building up.
As I wrote recently in The Huffington Post, it makes no sense to invest in growth unless you have enough money to wait and see how it plays out, which is clearly the case with Bezos at the Post and Henry at the Globe — and which now is clearly not the case with Kushner and the Register.
The Orange County meltdown was also the subject of an unusually nasty blog post earlier this month by Clay Shirky, who criticized Ryan Chittum of the CJR and Ken Doctor of Newsonomics and the Nieman Journalism Lab for overlooking the weaknesses in Kushner’s expansion. (Chittum and Doctor wrote detailed, thoughtful responses, and I’ve linked to both of them in the comments of a piece I wrote about the kerfuffle for WGBHNews.org.)
Arellano has gotten hold of some internal documents that make it clear that Kushner’s expansionary dreams were doomed from the start. He also paints a picture of a poisoned newsroom and offers lots of anonymous quotes to back it up.
“I wouldn’t say I got hoodwinked,” he quotes one former staff member as saying, “but it’s just another lesson of life: If it’s too good to be true, it is.”
I recently criticized Arellano for his overreliance on anonymous quotes, although I freely concede that I used them regularly when I was covering the media for The Boston Phoenix in the 1990s and the early ’00s. This time, he includes a clear explanation of why almost none of his sources would go on the record: fear of “reprisal or the endangerment of their buyout, which included a nondisclosure clause.” Given that, I think the story is stronger with the quotes than without.
In retrospect, it seems obvious Kushner set himself up for failure, like a Jenga tower depending on every precariously placed block. He installed himself as publisher despite having no previous newspaper experience. A hard paywall — his most controversial move — was erected to force readers to buy the print edition in an era when online content is king. To justify that, Kushner plunged into a hiring binge that saw the Register sign up hundreds of employees even though it didn’t have the revenue to pay them. To fund his vision, the sales department was tasked with selling all those points despite an industry-wide decline in print advertising during the past decade.
It’s a sad, ugly moment for a tale that began so optimistically. As for whether this will prove to be the end of the story — well, it sure looks that way, although Kushner insists he’s merely slowed down. After two years of hiring binges and layoffs, the launch and virtual folding of the Long Beach Register, and the inexplicably odd decision to start a Los Angeles Register to compete with the mighty Times, Kushner is clearly down to his last chance — if that.
Five years ago Clay Shirky wrote an eloquent blog post titled “Newspapers and Thinking the Unthinkable.” His essential argument was that we were only at the very beginning of trying to figure out new models for journalism following the cataclysmic changes wrought by the Internet — like Europeans in the decades immediately following the invention of Gutenberg’s press. Along with a subsequent talk he gave at Harvard’s Shorenstein Center, Shirky helped me frame the ideas that form the foundation of “The Wired City,” my book about online community journalism.
Now Shirky has written a rant. In “Nostalgia and Newspapers,” posted on Tuesday, the New York University professor and author wants us to know that we’re not getting it fast enough — that print is dead, and anything that diverts us from the hard work of figuring out what’s next is a dangerous distraction. His targets range from Aaron Kushner and his alleged apologists to journalism-school professors who are supposedly letting their students get away with thinking that print can somehow be saved.
As always, Shirky offers a lot to think about, as he did at a recent panel discussion at WGBH. I don’t take issue with the overarching arguments he makes in “Nostalgia and Newspapers.” But I do want to offer a countervailing view on some of the particulars.
1. Good journalism schools are not print-centric: Shirky writes that he “exploded” when he was recently asked by an NYU student, in front of the class, “So how do we save print?” I assume Shirky is exaggerating his reaction for effect. It wasn’t a terrible question, and in any case there was no reason for him to embarrass a student in front of her classmates. I’m sure he didn’t.
More important, Shirky takes the view that students haven’t given up on print because no one had given it to them straight until he came along to tell them otherwise. He writes that he told the students that “print was in terminal decline and that everyone in the class needed to understand this if they were thinking of journalism as a major or a profession.” And he attributed their nostalgic views to “Adults lying to them.”
Now, I find it hard to believe that Shirky’s take on the decline of print was novel to journalism students at a progressive institution like NYU. And from what I’ve seen from my own small perch within academia, all of us are looking well beyond print. In the new issue of Nieman Reports, Jon Marcus surveys changes in journalism education (including the media innovation program for graduate students headed by my Northeastern colleague Jeff Howe that will begin this fall). Citing a recent survey by Poynter, Marcus writes that, in many cases, j-schools are actually ahead of professional newsrooms in pushing for digital change:
A recent Poynter survey — which some argue demonstrates that educators are outpacing editors in their approaches to digital innovation — underlines the divide between j-schools and newsrooms. Educators are more likely than professional journalists to believe it’s important for journalism graduates to have multimedia skills, for instance, according to the survey Poynter released in April. They are more likely to think it’s crucial for j-school grads to understand HTML and other computer languages, and how to shoot and edit video and photos, record audio, tell stories with visuals, and write for different platforms.
Could we be doing better? No doubt. But we’re already doing a lot.
2. Aaron Kushner might have been on to something. OK, I’m pushing it here. There’s no doubt that Kushner’s moves after he bought the Orange County Register in 2012 have blown up in his face — the hiring spree, the launching of new daily newspapers in Long Beach and Los Angeles, the emphasis on print. Earlier this month, it all seemed to be coming to a very bad end, though Kushner himself says he simply needs time to retrench.
But Kushner’s ideas may not have been entirely beyond the realm of reality. Over the past several decades, great newspapers have been laid low by debt-addled chains trying to squeeze every last drop of profit out of them. This long-term disinvestment has had at least as harmful an effect on the news business as the Internet-driven loss of advertising revenues. Yes, Kushner’s love of print seems — well, odd, although it’s also true that newspapers continue to derive most of their shrinking advertising revenues from print. But investing in growth, even without a clear plan (or, rather, even with an ever-changing plan), strikes me as exactly what we ought to hope news(paper) companies will do. After all, that’s what Jeff Bezos is doing at The Washington Post and John Henry at The Boston Globe. And that’s not to say there won’t be layoffs and downsizing along the way.
Shirky also mocks Ryan Chittum of the Columbia Journalism Review and Ken Doctor, a newspaper analyst and blogger who writes for the Nieman Journalism Lab, writing that they “wrote puff pieces for Kushner, because they couldn’t bear to treat him like the snake-oil salesman he is.” (Shirky does concede that Chittum offered some qualifications.)
Chittum recently disagreed with me merely for writing that he had “hailed their [Kushner's and his business partner Eric Spitz's] print-centric approach.” It will be interesting to see whether and how he and Doctor respond to Shirky. I’ll be watching. Chittum has already posted this.
In any case, I hardly think it was “terrible” (Shirky’s description) for Chittum and Doctor to play down their doubts given that Kushner, a smart, seemingly well-funded outsider, claimed to have a better way.
Post-publication updates. After this commentary was published at WGBH News on Wednesday, the reactions, as expected, started rolling in. First up: Chittum, who apologized for his F-bomb, though not the sentiment behind it.
Finally, Ken Doctor wrote a long, thoughtful retort to Shirky at the Nieman Journalism Lab. (And now Shirky has posted a comment.)
Even more finally: Chittum has responded at some length in the CJR. The end?
A week after Aaron Kushner announced major cuts at the Orange County Register and its affiliated papers, it sounds like the wheels may be coming off. In an interview with Larry Mantle of Southern California Public Radio, Kushner kept insisting that the cuts were nothing but a temporary setback, saying:
To continue to invest and grow over the long term, we have to align our cost structure with what we now know we can achieve in revenue growth. Doing so will not be easy and will impact all of us, but it is necessary to ensure a strong and healthy future for our newspapers.
But Mantle was having none of it. He pressed Kushner on the all-but-closing of the start-up Long Beach Register and asked him if he expected his newest paper, the Los Angeles Register, to compete seriously with the Los Angeles Times. Kushner’s answers might best be described as on message to a fault, leading to this testy exchange near the end:
Mantle: I have to say, if I worked for you, hearing your description and the lack of specifics, I’d be very nervous about the future.
Kushner: Any other questions?
Meanwhile, Gustavo Arellano, editor of the OC Weekly, an alternative paper that has been so dubious of Kushner’s plans that it even has a blog category called “OC Register Death Watch,” posted a scorcher on Monday, reporting that the Register’s staff is all but fleeing toward the exits. Arellano quotes a “longtimer” as saying of Kushner, “He’s lost the newsroom. No one has any faith in him at all. People want to get the hell out while they can.”
(An aside: If everything is truly coming apart, why did the “longtimer” think it was necessary to remain anonymous? And why did Arellano go ahead and quote him anyway? Look, I’ve been there and done that. And there’s no reason to think the quote doesn’t reflect the genuine sentiment of the newsroom. But I’m more skeptical of anonymous quotes these days than I used to be, and I think readers are too.)
I continue to hope that Kushner and his business partner, Eric Spitz, can right their leaking ship. But the simplest explanation for what is happening is that Kushner never had a real plan — he simply thought that all he had to do was spend lavishly and readers and advertisers would flock to his side.
Newspaper analyst Ken Doctor, whom I would characterize as a sympathetic Kushner observer up until now, weighed in with a devastating piece last week. I linked to it then, and here it is again. I recommend it highly.
Photo (cc) by Denise Sonicberg and published under a Creative Commons license. Some rights reserved.
It was the messaging, though, that really mattered. About a hundred invited guests mingled in the lobby of the historic Paramount Theatre, elegantly restored by Emerson College, helping themselves to free food and an open bar. Owner/publisher John Henry joined the minglers, working the room like one of the politicians his reporters might write about.
And if you didn’t quite get the messaging, chief executive officer Michael Sheehan and editor Brian McGrory were there helpfully to explain.
“You can’t cut your way to success. You can only grow you way to success,” Sheehan said while introducing a panel discussion. Added McGrory in his closing remarks: “We are investing in our political coverage at a time when virtually every other paper is retreating.”
If you’re a news junkie, a political junkie or both, enjoy it. The newspaper implosion that has defined the past decade may have slowed, but it hasn’t stopped.
Some 16,200 full-time newspaper jobs disappeared between 2003 and 2012, according to the American Society of News Editors. Just this week, about 20 employees — one-fourth of editorial staff members — were let go by the Telegram & Gazette of Worcester, recently sold by Henry to Halifax Media Group of Daytona Beach, Florida. Aaron Kushner, whose print-centric approach was hailed as the salvation of the newspaper business just a year ago, is now dismantling the Orange County Register and its affiliated Southern California properties as quickly as he built them up.
The only major papers bucking this trend are Henry’s Globe and Jeff Bezos’ Washington Post, both of which are adding staff and expanding their portfolios. (The New York Times remains relatively healthy, but in recent years the ruling Sulzberger family has tended to define success by keeping cuts to a minimum.)
So what is Capital? Simply put, it’s a Friday-only section comprising features, think pieces, polling, commentary and lots of graphics. The debut consists of 12 pages, including three full-page ads — two of them advocacy messages of the sort that might not have made their way into the paper otherwise — and a smaller bank ad on the front of the section.
The lead story, by Jim O’Sullivan and Matt Viser, looks at the implications of a presidential race that is not likely to have a Massachusetts candidate for the first time since 2000. A poll (and Capital is slated to have lots of polls) suggests that Republican gubernatorial candidate Charlie Baker is making some headway, trailing Democratic contender Martha Coakley by a few points and leading Coakley’s rival Steve Grossman by a similar margin.
Among the more intriguing pieces of content is a “social networks dashboard,” put together by SocialSphere of Cambridge, which tracks conversations and the “biggest influencers” on Twitter. The print version has the highlights; online, it goes into more depth. It could use some tweaking, though. For instance, it’s fine to know that Gov. Deval Patrick is +463, but I’d like to see an explanation of what that means.
And if the Globe is looking for suggestions, I’d like to see a more outward-looking orientation, at least in the online version. There are
no few links to outside content. How about a curated reading list of the best political coverage appearing elsewhere? (Online, Capital does offer some outside links in an automated feature based on Twitter called “The Talk,” which combines mostly Globe content with a little bit of offsite stuff. I’m also told that a daily newsletter to be written by political reporter Joshua Miller will include non-Globe links.)
One challenge the Globe faces is to come up with compelling content that isn’t tied to the daily news cycle. Today, for instance, the paper’s two most important political stories appear not in Capital but, rather, on the front page: more questions about Scott Brown’s dubious dealings with a Florida firearms company and insider shenanigans involving Mayor Marty Walsh’s administration and the city’s largest construction company. Of necessity, Capital will have to focus on analysis and smart step-back pieces.
During the panel discussion, political editor Cynthia Needham said that a frequent topic of conversation in the newsroom is whether the Globe’s political coverage should appeal to “insiders” or to readers “who dip in every once in a while.” For Capital to work week after week, the answer needs to be both — and then some.
But seriously — how refreshing is it to be able to write about the Globe’s latest expansion instead of the cuts and layoffs that pervade the rest of the newspaper business? We’ll remember these times. Let’s hope they last.
If you’re going to make an audacious bet on the future of newspapers, as Aaron Kushner did with the Orange County Register, then it stands to reason that you should have enough money in the bank to be able to wait and see how it plays out.
Kushner, unfortunately, is now slashing costs at his newspapers almost as quickly as he built them up. On Tuesday, Kushner announced that Register employees would be required to take unpaid two-week furloughs during June and July. Other cuts were announced as well. The most significant: buyouts for up to 100 employees; and one of Kushner’s startup dailies, the Long Beach Register, will more or less be folded into another, the Los Angeles Register.
Those cuts follow the elimination of some 70 jobs at the OC Register and the Press-Enterprise of Riverside in January — cuts that came not long after a year when Kushner’s papers, in a celebrated hiring spree, added 170 jobs.
Is it time to push the panic button? The estimable Ken Doctor, writing for the Nieman Journalism Lab, says yes, arguing that the latest round of cuts raise “new questions about its very viability in the year ahead.” Doctor may be right. But as I wrote at The Huffington Post earlier this year, I hope Doctor is wrong, given the promise of Kushner’s early moves.
In 2013 Kushner and his business partner, Eric Spitz, were the toast of the newspaper industry. In the Columbia Journalism Review, Ryan Chittum hailed their print-centric approach and hypothesized that being able to scoop up the Register debt-free might enable them to succeed where others — including Tribune Co. and the Journal Register Co. — had failed. “Kushner,” Chittum wrote, “had the benefit of buying Register parent Freedom Communications out of bankruptcy — after newspaper valuations had already fallen 90 percent in some cases.”
Spitz, in a cocksure interview last October with Lauren Indvik of Mashable, mocked his competitors for giving their journalism away online, insisting that he and Kushner had a better idea.
“The key decisions they made — and they were the worst decisions anyone has made in my memory — they made 20 years or so ago. They took their core product, the news, and priced it at free,” Spitz told Indvik, adding: “I think 20 years later the amount of revenue you can derive from advertising is less than they thought. But the bigger problem they created is telling your customer that your product has no value.”
Unfortunately for Spitz and Kushner, there are few signs that their strategy of pumping up their print editions (even improving the paper stock) while walling off their digital content behind relatively inflexible paywalls has paid off.
According to the Alliance for Audited Media, paid circulation at the Orange County Register for the six months ending Sept. 30, 2011, before Kushner and Spitz took charge, averaged 283,997 on Sundays and 172,942 Monday through Saturday. The sale took place in July 2012. That September, paid circulation actually rose, to 301,576 on Sundays and 175,851 the rest of the week. But in September 2013 it dropped below pre-Kushner levels, to 274,737 on Sundays and 162,894 the other six days. (I am excluding what AAM refers to as “branded editions” — mainly regional weeklies published by the Register. The numbers combine print and paid digital circulation, which, in the case of the Register, is negligible.)
Kushner is a Boston-area native who made his money in the greeting-card business. Before his move to Southern California, he tried to buy The Boston Globe and, later, nearly closed a deal to purchase the Portland Press Herald of Maine. So it’s interesting to note that Red Sox principal owner John Henry, who eventually won the sweepstakes for the Globe, has taken a very different approach from Kushner, sinking money into an online-only vertical covering innovation and technology as well as repositioning the paper’s venerable free Boston.com site as a “younger, voicier, edgier” complement to the Globe. Soon the Globe is expected to unveil an ambitious website covering the Catholic Church in the hopes of attracting a national and international audience.
Perhaps the most important difference between Henry and Kushner, though, is the depth of their pockets. There are limits to Kushner’s wealth, and those limits are becoming apparent as he attempts to make his newspaper mini-empire profitable. Henry, a billionaire investor, can afford to take the long view. In that respect, he is more like Amazon.com founder Jeff Bezos, who announced that he would buy the Washington Post just days after Henry said he would acquire the Globe.
Ryan Chittum, in his CJR piece, called Kushner’s approach “the most interesting — and important — experiment in journalism right now.” It would be easy and facile to make too much of Kushner’s woes. He may simply have gotten ahead of himself, and is now buying the time he needs to make sense of what he is building. Then again, if Ken Doctor is right, the end of this particular newspaper story may be in sight.