Tag Archives: Huffington Post

Bezos’ bucks may re-ignite Post-Times competition

Jeff Bezos

Jeff Bezos

When Amazon.com founder Jeff Bezos bought The Washington Post last year for the paltry sum (especially for him) of $250 million, newspaper observers hoped that it presaged a new era for the struggling daily. For now, at least, it looks like those hopes are becoming a reality.

The Post is ramping up. Michael Calderone of The Huffington Post reported recently that the paper has hired 50 full-time staff journalists so far in 2014, and that it is making at least a partial return to its status as a national newspaper — a status it had retreated from during the final years of Graham family ownership. Executive editor Marty Baron told Calderone:

We’ve talked a lot about the need to grow. We’ve said that in order to grow, we have to look outside our own immediate region and the only opportunity for growth is digital. We are looking at growth opportunities around the country.

Richard Byrne Reilly recently wrote in VentureBeat that Bezos isn’t quite the hands-off owner that he appears to be, taking a deep interest in the paper’s digital initiatives. According to Reilly:

With chief information officer and technology vice president Shailesh Prakash at the helm, Bezos is pumping cash into the once staid company’s IT infrastructure. Lots of it. The new leadership has put 25 computer engineers into the newsroom, helping reporters craft multifaceted digital stories for mobile devices.

The Post’s expansion is a heartening development, and it’s one we’re seeing unfold in Boston as well. Red Sox principal owner John Henry, whose $75 million purchase of The Boston Globe was announced just days before Bezos said he was buying the Post, has, like Bezos, shown a willingness to try to grow his news organization out of the doldrums into which it had fallen.

The Globe is making some interesting moves into video; has redesigned its nearly two-decade-old free Boston.com site while moving all Globe content behind a flexible paywall at BostonGlobe.com; has developed new verticals for innovation and technology (BetaBoston) and arts and entertainment (RadioBDC and BDCWire); and will soon unveil a standalone site covering the Catholic Church.

As for the Post, it’s notable that its comeback coincides with a serious misstep at The New York Times — the botched firing of executive editor Jill Abramson. Combined with the loss this week of the Times’ chief digital strategist, Aron Pilhofer, to The Guardian, and the release of an internal report criticizing the Times’ own digital strategy, it may not be an exaggeration to suggest that energy and momentum have swung from the Times to the Post. (To be sure, the Times’ new executive editor, Dean Baquet, enjoys an excellent reputation.)

From the Pentagon Papers and Watergate in the early 1970s until about a decade ago, the Times and the Post were often mentioned in the same breath as our two leading newspapers. Good as the Post was during the final years of the Graham era, budget-cutting allowed the Times to open up a lead and remain in a category of its own.

It would be great for journalism and for all of us if Bezos, Baron and company are able to level the playing field once again.

Photo (cc) by Steve Jurvetson and used under a Creative Commons license. Some rights reserved.

A New Haven-centric view of Digital First’s latest woes

The Register in June 2013, shortly after a redesign.

The Register in June 2013, shortly after a redesign.

This article was published earlier at The Huffington Post.

The end may be near for one of the most widely watched experiments in local journalism.

Early today, Ken Doctor reported at the Nieman Journalism Lab that Digital First Media was pulling the plug on Project Thunderdome, an initiative to provide national and international content to the company’s 75 daily newspapers and other publications and websites. Soon, Doctor added, Digital First’s papers are likely to be sold.

Judging from the reaction on Twitter, the news came as a shock, with many offering their condolences and best wishes to the top-notch digital news innovators who are leaving — including Jim Brady, Robyn Tomlin and Steve Buttry. But for someone who has been watching the Digital First story play out in New Haven for the past five years, what happened today was more a disappointment than a surprise.

I first visited the New Haven Register, a regional daily, in 2009. I was interviewing people for what would become “The Wired City,” a book centered on the New Haven Independent, a nonprofit online-only news site that represents an alternative to the broken advertising-based model that has traditionally supported local journalism. The Register’s corporate chain owner, the Journal Register Co., was in bankruptcy. The paper itself seemed listless and without direction.

Two years later, everything had changed. Journal Register had emerged from bankruptcy and hired a colorful, hard-driving chief executive, John Paton, whose oft-stated philosophy for turning around the newspaper business — “digital first” — became the name of his blog and, eventually, of his expanded empire, formed by the union of Journal Register and MediaNews, the latter best known for its ownership of the Denver Post.

Just before Labor Day in 2011, Matt DeRienzo — then a 35-year-old rising star who had just been put in charge of all of Journal Register’s Connecticut publications, including the New Haven Register — sat down with me and outlined his plans. His predecessor had refused my requests for an interview; DeRienzo, by contrast, had tracked me down because he’d heard I was writing a book. It seemed that a new era of openness and progress had begun.

The openness was for real. The progress, though, proved elusive. For a while, John Paton was the most celebrated newspaper executive in the country, the subject of flattering profiles in the The New York Times, the Columbia Journalism Review and elsewhere. Media reporters were charmed by his blunt profanity, as when he described a presentation he gave to Journal Register managerial employees. “They were like, ‘Who’s the fat guy in the front telling us that we’re broken? Who the fuck is he?'” Paton told the CJR.

In 2012, though, Journal Register declared bankruptcy again — a necessary step, Paton said, as it was the only way he could get costs such as long-term building leases and pension obligations under control. After Journal Register emerged from bankruptcy in 2013, Paton’s moment in the national spotlight seemed to have passed, as media observers turned their attention to a new breed of media moguls like Amazon.com founder Jeff Bezos (who bought The Washington Post), Red Sox principal owner John Henry (who bought The Boston Globe), greeting-card executive Aaron Kushner (who acquired the Orange County Register) and eBay founder Pierre Omidyar (who launched a new venture called First Look Media).

Although Digital First’s deepening woes may have escaped national attention, there were signs in New Haven that not all was well. Some positive steps were taken. The print edition was redesigned. The Register website was the beneficiary of a chain-wide refurbishing. Nasty, racist online comments were brought under control, and the newsroom embraced social media. But larger improvements were harder to accomplish.

Among the goals Matt DeRienzo had talked about was moving the paper out of its headquarters, a hulking former shirt factory near Interstate 95, and opening a smaller office in the downtown. In 2012, the Register shut down its printing presses and outsourced the work to the Hartford Courant. The second part of that process never came, though. Just last week, the New Haven Independent reported that the Register had backed away from moving to a former downtown mall facing New Haven Green. Two months earlier, according to the Independent, the Register and Digital First’s other Connecticut publications laid off 10 people.

Neither development should be described as a death knell. The downtown move is reportedly still in the works. And the 10 layoffs were at least partly offset by the creation of six new digitally focused positions. But rather than boldly moving forward, the paper appears to be spinning its wheels. And now — or soon — it may be for sale.

One of the biggest problems Digital First faces is its corporate structure. Can for-profit local journalism truly be reinvented by a national chain whose majority owner — Alden Global Capital — is a hedge fund? People who invest in hedge funds are not generally known for their deep and abiding affection for the idea that quality journalism is essential to democratic self-goverance. Rather, they want their money back — and then some. Preferably as quickly as possible.

No matter how smart, hard-working and well-intentioned John Paton, Jim Brady, Matt DeRienzo et al. may be, the Digital First experiment was probably destined to end this way, as chain ownership generally does. I wish for a good outcome, especially in New Haven. Maybe some civic-minded business leaders will buy the paper and keep DeRienzo as editor. And maybe we’ll all come to understand that the best way to reinvent local journalism is at the local level, by people who are rooted in and care about their community.

Can Aaron Kushner go the distance?

Aaron Kushner speaking in April 2013 at California State University, Fullerton.

Aaron Kushner speaking in April 2013 at California State University, Fullerton.

This commentary was published earlier at The Huffington Post.

Has Orange County Register owner Aaron Kushner run into nothing more than a bit of turbulence from which he can recover? Or do the layoffs he announced last week show that his plan to resuscitate the newspaper business by hiring more journalists and doubling down on print is fundamentally flawed?

I hope it’s the former — not just because I’d like to see him prove everybody wrong (including me) about the future of news, but because I’m planning to include him in a book about a new breed of media moguls who are using their personal wealth and smarts to innovate their way toward a brighter future. (News of the layoffs was broken by Gustavo Arellano of OC Weekly, which has taken a jaundiced view of Kushner’s ownership.)

Trouble is, there have been hints previously that Kushner, 40, lacked the sheer financial firepower of Boston Globe owner John Henry or Washington Post owner Jeff Bezos. I’ll get to that in a moment. But first, a little background on what’s unfolding in Southern California.

Kushner, who bought the Register in 2012 for $50 million, was the most celebrated new newspaper owner in the country before he was eclipsed in August of last year by Bezos and Henry. “Can Aaron Kushner save the Orange County Register — and the newspaper industry?” asked the Columbia Journalism Review last May. As CJR’s Ryan Chittum explained it, Kushner’s vision was based on:

  • Lavish attention to the print product, including more pages and an upgrade in the quality of paper.
  • A move away from free or even reduced-price content online, with Internet users paying exactly the same fees as print subscribers.
  • An increase in the size of the newsroom staff, as he added 140 journalists to the 180 who were there when he bought the paper.

Nor was Kushner content with pumping up the Orange County Register. Last August he started a new daily, the Long Beach Register. He bought The Press-Enterprise of Riverside. And in his most audacious move yet, he announced plans to start a Los Angeles Register to compete with the Los Angeles Times, once among the best newspapers in the country and still formidable. (LA is also home to a second paper, the Los Angeles Daily News.)

Then, last week, came a significant setback. Not everyone agrees on the figures, but Ken Bensinger of the LA Times reported that Kushner laid off about 35 people at the Orange County Register and 39 at The Press-Enterprise. Register editor Ken Brusic and other top editors left. Rob Curley, who had overseen digital initiatives at papers at the Washington Post and the Las Vegas Sun, was promoted to the top position.

“We are evaluating our cost structure for the next leg of our journey in terms of covering Orange County and LA County,” Kushner told New York Times media columnist David Carr, who noted that Kushner plans to plunge ahead with his idea for a Los Angeles paper without adding any staff. Carr wrote:

By amortizing the costs of all the journalists he hired over a bigger market, he can achieve savings in terms of production while adding marginal readers and advertising.

He clearly sees himself as a smart entrepreneur making bold bets. I see a man on a wire, with millions of dollars and hundreds of jobs at stake.

As for past hints that Kushner may not be well-heeled enough to play the long game, you may recall that, several years ago, he tried to buy The Boston Globe. (The Globe’s then-owner, the New York Times Co., apparently showed no interest, and Kushner later struck out on a bid to purchase Maine’s Portland Press Herald.)

Before Kushner gave up on his Globe dream, though, Katherine Ozment wrote an in-depth profile of him for Boston magazine. Among other things, Ozment attempted to show precisely how Kushner had made a fortune in the greeting-card business, his major claim to fame up to that time. What she found was a haze of acquisitions, layoffs and charges (which Kushner denied) that he was late in paying artists, sales reps and the like.

Eventually Kushner left his company after some sort of falling-out with the investors, though he told Ozment he remained part of ownership. “I had a vision for the business, and they had a very different vision, and they controlled the working capital, so we decided to move on,” he said.

Despite that possible warning sign, it has to be noted that the Orange County Register remains a much more richly staffed paper today than when Kushner bought it. In a memo to his staff published by the blog LA Observed after the layoffs were announced, Kushner wrote that he now has 370 journalists — uh, make that “content team members” — covering Orange County and Los Angeles County, up from 198 a year and a half ago.

An optimistic take would be that Kushner got ahead of himself and is now retrenching, but not retreating. No doubt we’ll know a lot more as 2014 unfolds.

Photo (cc) by CSUF Photos and published under a Creative Commons license. Some rights reserved.

Ezra Klein and the problem with top-down control

Ezra Klein

Ezra Klein

This commentary was published earlier at the Nieman Journalism Lab.

What should a 21st-century news organization look like? A single entity, run from the top, with a common set of values? Or a loose network of related projects, sharing a brand and to some extent a mission but operating semi-independently?

With the likely departure of Ezra Klein from The Washington Post, the management of one of our last great newspapers might be showing signs of preferring the former approach. Klein, who founded and runs the widely read Wonkblog at washingtonpost.com, is reportedly leaving for a new venture, as yet undefined. According to Ravi Somaiya in The New York Times, Klein sought an eight-figure Post investment in the new project. Klein already has his own Wonkblog staff, but clearly he has something much bigger in mind — perhaps an all-purpose independent news organization along the lines of Talking Points Memo. (Although it wouldn’t be called Wonkblog — the Post owns the name and will be keeping it, writes The Huffington Post’s Michael Calderone, who broke the news about Klein’s proposal last month.)

We can’t know everything that went into the decision. Maybe it came down to money. But Wonkblog generates a hefty amount of Web traffic — more than 4 million page views a month, according to a profile of Klein in The New Republic last February. “It’s ‘fuck you traffic,’” a Post source told TNR’s Julia Ioffe. “He’s always had enough traffic to end any argument with the senior editors.” Apparently, that’s no longer the case.

Significantly, the Times reports that new Post owner Jeff Bezos was involved in the decision to let Klein leave. Last September, shortly after announcing his intention to buy the Post for $250 million, the Amazon.com founder lauded the “daily ritual” of reading the morning paper — which led to some chiding by one of the Post’s own journalists, Timothy B. Lee. Despite Bezos’ well-earned reputation as a clear-eyed digital visionary, he appears to have some romantic notions about the business he’s bought into. And allowing entrepreneurs such as the twentysomething Klein run his own shop inside the Post might not fit with that vision.

What makes the likely Klein departure even more significant is that in 2006 the Post, under the ownership of the Graham family, allowed John Harris and Jim VandeHei to walk out the door and start Politico. Now, I have a lot of problems with Politico’s gossipy “drive the day” approach. But as Times columnist Ross Douthat has observed, much of the media conversation about Washington politics has shifted from the Post to Politico, threatening one of the Post’s franchises. It would have been enormously beneficial to the Post if Politico had been launched under its own umbrella. And Politico itself might be better.

So if the Post is reluctant to loosen the reins, are there any other news organizations that are taking a different approach? Walt Mossberg and Kara Swisher walked away from their AllThingsD site at The Wall Street Journal and set up a new project called Re/code in partnership with NBC. Perhaps the most famous example is Nate Silver, who brought his FiveThirtyEight poll-analysis site to The New York Times a few years ago and then moved it lock, stock and barrel to ESPN. In that regard, I suppose you could say NBC and ESPN have embraced the network approach. To some extent you might say also that of The Huffington Post, as it combines professional journalists, unpaid bloggers (I’m one) and a dizzying array content — from Calderone’s excellent media coverage to the notorious Sideboob vertical.

Jeff Jarvis recently argued that Patch — AOL’s incredibly shrinking hyperlocal news project — might have stood a chance if AOL chief executive Tim Armstrong had taken a network approach. Rather than running cookie-cutter community sites from the top down, Jarvis asked, what if Patch had offered advertising and support services to a network of independent or semi-independent sites?

The problem with such scenarios is that media executives — and business leaders in general — are not accustomed to the idea of giving up control. Calderone reports that some Post staffers have long grumbled at what they see as “preferential treatment” for Klein, which suggests the depth of the problem. But entrepreneurial journalists like Harris and VandeHei, like Mossberg and Swisher, and like Silver and Klein have a proven track record.

Legacy news organizations need to find a way to tap into that success outside the old models of ownership and not worry about obsolete notions of employer-employee relationships. Reach and influence are what matter. And they are proving to be incompatible with the ambitions of young journalists like Ezra Klein.

More: After this piece was published at Nieman, Mathew Ingram responded at Gigaom with his own smart take.

Michael Calderone on what to expect from Carolyn Ryan

One of the first media pieces I ever wrote for The Boston Phoenix, in the mid-1990s, was on the shrinking Statehouse press corps. Among those I interviewed was a young reporter for The Patriot Ledger of Quincy named Carolyn Ryan.

Ryan went on to great success at the Boston Herald, The Boston Globe and The New York Times. She was recently named the Times’ Washington bureau chief, and Michael Calderone of The Huffington Post has written about what to expect. An excerpt:

Ryan … has managed large reporting staffs in New York and Boston and is known inside the paper as a fierce competitor who sets high expectations. Such attributes can benefit the the Times’ Washington operation, which appears to be stepping up efforts against Politico and others in driving the political conversation of the day. Ryan may help ward off the complacency that news outlets long at the top of the media pecking order can sometimes fall prey to.

Quite a rise for Ryan, a hard-working, talented journalist. She deserves this moment, and I have no doubt she’ll make the most of it.

Four takeaways from new owner John Henry’s message to readers of The Boston Globe

John Henry at celebration of the Red Sox' 2007 World Series victory.

John Henry in October 2007

This article was published earlier in the Nieman Journalism Lab and The Huffington Post.

John Henry’s nearly 2,900-word message to readers of The Boston Globe could have been little more than an exercise in public relations, standing up for what is good and deploring what is bad.

There’s a lot of that, of course. We’re only into the second paragraph before he dutifully informs us that the Globe “is the eyes and ears of the region in some ways, the heartbeat in many others.” But Henry, a billionaire financier who is the principal owner of the Boston Red Sox, is also unexpectedly revealing about himself and how he intends to run the Globe. (Henry purchased the Globe, its BostonGlobe.com and Boston.com websites, the Telegram & Gazette of Worcester and several smaller properties from the New York Times Co. for $70 million. The sale, announced in August, closed last week following a brief delay over a labor dispute at the T&G. Henry also made a bit of news when folks at the T&G noticed that his message omitted Worcester entirely.)

Henry’s piece, headlined “Why I bought the Globe,” takes up a full page in the Opinion section of Sunday’s paper. It’s teased on the front page as well. He writes about his life, the Red Sox, the financially struggling news business and what he thinks needs to be done to set it on a sustainable path. Here are what I think are the most important takeaways.

1. He plans to be an activist owner. Just the atmospherics of the essay itself are a pretty strong indication that Henry does not see this as a passive investment. He wants to be the face of the Globe.

To counter his image as a reserved, slightly eccentric rich guy who dabbles in sports, Henry goes into some detail about his involvement in the civil-rights movement and his subsequent retreat “into what most of my friends thought was my primary talent at the time — writing and performing rock music.”

Somewhere along the way he made a lot of money, but he writes about that only briefly. Instead, he describes his stewardship of the Red Sox as a possible model for what he intends to do with the Globe:

When we acquired the Red Sox, profit was literally at the bottom of our list of goals. We were determined to do whatever it took to win.

Now I see The Boston Globe and all that it represents as another great Boston institution that is worth fighting for.

Here’s another intriguing example of what sort of profile Henry intends for himself as the Globe’s owner: Recently the Boston Business Journal reported that toxic waste at the Globe’s Dorchester property could complicate any plans Henry might have to develop the site and move the paper to a cheaper location. Henry used his Twitter feed to dispute the BBJ’s story and slam an earlier piece about the Globe’s break-up with a classified-ad site called Cars.com:

A feisty newspaper owner who fights back in public? Bring it on. That’s certainly an improvement over the gray management style of the Times Co.

2. He’s looking for advice in all the right places. If the Globe and other large regional dailies are going to survive and prosper, they need to develop new ways of doing business. So it’s encouraging that Henry mentions alliances the paper already has with Harvard’s Shorenstein Center, the MIT Media Lab and the Nieman Journalism Lab.

Henry also gives a shout-out to Clay Shirky, which I take as a signal that Henry is reading and talking to the right people. It doesn’t sound like he intends to take the approach adopted by Aaron Kushner, a one-time Globe suitor who’s winning plaudits for trying to revive the Orange County Register by focusing on the print edition. The Globe has been a leader in digital journalism. So it’s good news that Henry sounds like he’s going to double down on innovation.

3. He has some retro ideas about paid content. Near the top of his commentary, Henry repeats an old trope, writing that newspapers have been losing money because “Readers were flocking from the papers to the Internet, consuming expensive journalism for free.”

Now, I’ve got nothing against charging for digital subscriptions, and the Globe has had some success with that — 39,000 at last count. But it’s important to keep in mind what newspaper owners are up against in asking readers to pay for online access.

As has often been said, newspaper readers never paid for the news — they paid for the expense of printing and delivering the paper, with advertisers picking up the rest. These days, readers are paying — a lot — for their own printing presses (computers, tablets and smartphones) and their own delivery (broadband and cellular access). It’s perfectly understandable that they don’t want to pay more.

What went wrong was not that newspapers started giving away their content but, rather, that the advertising model collapsed, especially from classifieds. Henry understands this, writing, “I feel strongly that newspapers and their news sites are going to rely upon the support of subscribers to a large extent in order to provide what readers want.”

I wish any newspaper owner well in persuading readers to pay for journalism. But we have to understand that we are asking them to do something they’ve never done before: pay for news in addition to paying for printing and delivery. We need to be humble about how much we’re asking of our audience.

4. He wants the Globe to act as a guide to the larger conversation. One of the most important roles professional journalism can play is to aggregate and curate the torrent of information — not just when big news breaks, but on a daily basis.

The New York Times does this with The Lede; the Globe does it from time to time, as it did following the Boston Marathon bombing. The idea is to become the go-to place for trustworthy links to other news sources, blogs and citizen media. Henry clearly gets that, writing:

We will provide what we will call the Globe Standard when it comes to curated links that will ensure our readers do not waste their time when they click on news, reviews, writers, columnists, ecommerce, events, opportunities, and social engagement from any of our platforms.

One thing Henry gets absolutely right is that the newspaper business is not now and never was compatible with ownership by publicly traded corporations and the quarterly demands of Wall Street. For more than a generation, corporate chains slashed newsrooms, first to drive up profit margins, later to stave off mounting losses. The debt they took on to build their chains is one of the prime reasons for their inability to set themselves on a new path. Henry understands that.

“I soon realized that one of the key things the paper needed in order to prosper was private, local ownership, passionate about its mission,” Henry writes. Farther down, he adds: “But this investment isn’t about profit at all. It’s about sustainability. Any great paper, the Globe included, must generate enough revenue to support its vital mission.”

Leaving aside the obvious fact that profit is a key to sustainability, Henry articulates a vision in which journalism comes first — which is another way of saying the customer comes first. Too many newspaper owners have forgotten that.

Photo (cc) by Patrick Mannion and published under a Creative Commons license. Some rights reserved.

Bezos voices skepticism on paywalls, advertising

Jeff Bezos

Jeff Bezos

Two quick takeaways from Jeff Bezos’ interview with The Washington Post, his first since announcing last month that he would purchase the paper for $250 million:

1. He sounds like an ink-stained wretch whining about The Huffington Post in denouncing the evils of aggregation, telling the Post’s Paul Fahri:

Even behind a paywall, Web sites can summarize your work and make it available for free. From a reader point of view, the reader has to ask, “Why should I pay you for all that journalistic effort when I can get it for free” from another site?

2. Despite his  skepticism about paywalls in the age of aggregation, Bezos is not ready to embrace the idea of free content supported by advertising. “I’m skeptical of any mission that has advertisers at its centerpiece,” he said. Good thing: newspaper ad revenues are in the midst of a stunning decline, as this chart demonstrates.

So, if paywalls aren’t the answer and neither is advertising, what will work? Relentless experimentation, combined with time, resources and patience. That’s what the Amazon.com founder brings to the table.

Photo (cc) via Wikimedia Commons.