These two pieces really need to be read together. In today’s New York Times, media columnist David Carr takes a look at Gannett’s Journal News, in Westchester County, which has essentially fired the whole staff and invited everyone to reapply.
It sounds brutal — OK, it is brutal — but with the business model irretrievably broken, it makes perfect sense to blow everything up and start over. If it’s inevitable that the paper is going to end up with a much smaller staff, then it’s vital that the right people get to keep their jobs.
The second piece is a blog post by Howard Owens, the former GateHouse digital-publishing director who’s now publisher of the Batavian, a community news site covering the area between Buffalo and Rochester, N.Y.
Although much of Owens’ post is about why it makes sense for newspaper companies to separate print and online news operations, the heart of it is that since online advertising can only grow so much, the proper response is to cut expenses in order to reach break-even. He writes:
In a market where the newspaper newsroom might cost $10 million, I knew how to make $1 million online, or even $2 million, but I didn’t know — and still don’t — how to make $10 million.
So if I can make a million online, why do I need operate a $10 million newsroom, especially given the greater efficiencies of online publishing?
It’s possible to make money in online journalism. What may not be possible is for large, legacy news organizations — especially newspapers — to survive unless their executives are willing to rethink everything they do.