Sponsored content helps drive 10% boost in ad revenues at the Globe, says internal memo

A recent memo from Boston Globe Media’s chief commercial officer paints a rosy picture about advertising at the Globe. According to the memo, from Kayvan Salmanpour, ad revenue will increase by more than 10% in 2021 as compared to 2020. I’d like to see a comparison with 2019, the last pre-pandemic year, but growth is growth.

Much of Salmanpour’s message, provided to me by a trusted source, concerns sponsored content — that is, story-based advertising produced in collaboration with the Globe’s sales staff. Such ads send some media critics reaching for the smelling salts, but they don’t bother me as long as they’re properly labeled. The Globe’s sponsored content comes with multiple disclosures.

I also chuckled at Salmanpour’s reference to the Globe’s advertising partnership with the Red Sox. I’m pretty sure the paper has an in with the Sox; I’ll get back to you if I find out otherwise.

Still, this is good news for the Globe and, thus, good news for readers. Along with its success in digital subscriptions, the paper is growing and hiring. And it recently achieved labor peace as well.

The full text of Salmanpour’s memo follows.

Dear Colleagues,

I’m excited to share some of our year-end advertising highlights and achievements with all of you. Before I dive into the specifics, the most important and meaningful observation I can share is that Boston Globe Media is a truly special media brand. We have a unique ability to tell powerful stories in creative ways, and our clients value the deep connection we bring with the communities that we serve. More and more brands are noticing the work that we’re capable of producing and are proactively reaching out to engage us. Over the last 24 months, the advertising team has witnessed a remarkable turnaround, culminating in a pivotal feat: In 2021, the Globe will grow advertising revenue by more than 10 percent year over year.

Honestly, we’re not sure the last time this happened at the Globe — our memories don’t go back that far. But we do know this success is the product of a herculean effort from the sales team, and the result of a smart strategy that has brought the Globe’s advertising business much closer to top players in the media industry.

As we all know, the advertising marketplace has been radically disrupted.  Amazon, Google and Facebook together take up 64% of all digital advertising spending in the US. Many advertisers have shifted to programmatic buys — an automated auction of internet advertising inventory that’s sold at a steep discount. Add in more and more channels and constantly evolving technology like ad blockers,, and you can understand why advertising revenue has been declining.

The entrepreneurial team in the Globe Sales department found a way to adapt and thrive after doing some intense market analysis, innovative planning, investing in the team, and then deploying bold new strategies.

After a deep analytics audit of our advertising business, we calculated that 42% of our clients accounted for just 4% of revenue. On the other side of the spectrum, 65% of our revenue came from just 12% of our clients.  The lesson? We were spending too much time servicing small deals, and we were spending too little time building resources for larger deals. To tackle this, we reorganized our local, corporate, marketplaces sales teams to a system that is aligned with how much an advertiser was spending.  We invested in new technology and structured our advertising strategy around the following:

Tier 1 – Smaller advertising buys/high-volume: We are deploying an efficient, automated process to serve our smaller advertisers at scale and provide a great user experience at optimum pricing. We’re investing in a self-serve platform that will allow for a seamless transition for these advertisers.

Tier 2 – Mid-dollar advertising buys/mid-level volume: We’ve created compelling and complementary advertising opportunities for clients in danger of leaving their Globe mid-tier print spend for good. We are transitioning many of them to newsletter sponsorships, where revenue has increased by 77% over last year. We rolled out paid social posts as a new product and brought in direct sponsorships for newsroom projects. Our long-standing themed print sections have rebounded through clever print/digital combos.

We have created a system that has proved that we can grow revenue, not just sustain it.

Tier 3 – High-dollar amount/low volume: This is the pricing tier that will ultimately be a big factor in our future success. More media advertising departments are functioning like storytelling agencies with a guaranteed audience (they are serving fewer but larger clients and employ a more consultative approach with clients). Many of our deals in this tier are “bundled” multimedia products, so we’ve invested heavily in supporting the sales team with the resources to put these packages together.

Since implementing this structure and investment, the team has closed a number of impressive deals, including a multi-year deal with Harvard Pilgrim, in partnership with the Red Sox. This was the first of many collaborative deals with the Red Sox, as sponsors/advertisers want to be more than just sponsors,  they want to be mission-driven storytellers like us.

I have seen firsthand how impressed the Red Sox team has been with the work that comes out of the Globe’s creative ad dept, Studio B. Every day, we surprise people with our creative branded storytelling (a huge factor in our continued success); Studio B has grown branded content products  by more than 55% year over year, and is poised to grow even more next year. This will be a large factor in Globe.com sales success, as sponsored content makes up more than 63% of the revenue for that platform.

Finally, the ad department and the events team are in sync more than ever, as more of our deals become bundled multimedia packages that involve media, branded content, display, event sponsorships, and email. It has not only allowed us to increase our deal sizes, but also showed to the market how we can adapt to a client’s needs. Events has grown from a lower volume, smaller deal size enterprise to an operation in which the programming, sponsor collaboration and revenue has us playing with the majors.

Events revenue grew 81% over last year as previous clients returned to do more with us while 68% of event revenue this year is from new advertisers.

One of the best parts, however, is that 75% of this revenue came from events featuring our journalists — the heart of what we do as a news media company.

You may have noticed what’s not in this memo so far — any mention of the pandemic. Yes, the economic impact of Covid-19 dramatically impacted our print business, as it did across the industry. Our goal for 2022 is to hit our original budgeted number of 2020 (again, growing year over year), and yet the composition of that number will be so much healthier than it was back then.

Ultimately, I am most proud of this department’s mindset shift, especially under intense pressure of the revenue challenges of the local news industry. There are too many people to thank here, but a big credit to the sales executive team who are such exemplary leaders, the sellers who are such a great representation of our department and brand, and the sales support team who work so tirelessly everyday to make sure the train is running ahead of schedule.  

We are, without a doubt, a mission-driven team, and we are driven by the fact that we are contributing, through revenue, to the world-class journalism produced by the Globe newsroom.

Thank you to our editors and newsroom for keeping us inspired to do our work.

Best,
Kayvan

Kayvan Salmanpour
Chief Commercial Officer

With Alden on the prowl again, it’s time to stop hedge funds from destroying newspapers

Photo (cc) 2007 by Mike

It’s rather late in the game to ask whether hedge funds can be stopped from buying up every last one of our local newspapers. After all, about half of us are already stuck with a paper that is owned by, or is in debt to, the likes of Alden Global Capital (Tribune Publishing and MediaNews Group), Apollo Global Management (Gannett) and Chatham Asset Management (McClatchy).

Still, with Alden having now set its sights on Lee Enterprises, a chain that owns 77 daily newspapers in 26 states, we need to take steps aimed at preventing what is already a debacle from devolving into a catastrophe.

Read the rest at GBH News.

Talking local news with Michael Azevedo

On the podcast “Making Media Now,” host Michael Azevedo and I talk about the local news crisis and what to do about it. Please give it a listen.

Northeastern’s School of Journalism backs bills to address the local news crisis

Rep. Mark DeSaulnier

Our faculty at Northeastern University’s School of Journalism recently voted unanimously to support two pieces of legislation aimed at addressing the local news crisis — a bill to make it easier for newspapers to become nonprofit organizations and a resolution that asks Congress to help reverse the decline of community journalism.

The bills were introduced in the House today by U.S. Rep. Mark DeSaulnier, D-Calif., and co-sponsored by Reps. Ed Perlmutter, D-Colo., Jamie Raskin, D-Md., and David Cicilline, D-R.I.

“As local newspapers are being bought up and taken over by large corporations, it is incumbent on Congress to act to protect this public good,” said DeSaulnier in a press release. “My legislation would do just that and ensure newspapers in every community can continue to provide high-quality local coverage that millions of American rely on and deserve.”

Professor Jonathan Kaufman, director of Northeastern’s School of Journalism, said, “The hollowing-out and disappearance of local news organizations imperils journalism, communities and our democracy. These measures provide a financial lifeline and tools for the next generation of journalists to pursue new models and innovation that bring more local news to communities.”

The bills are not related to the Local Journalism Sustainability Act, which would provide tax credits to subscribers, advertisers and publishers. The tax credit that would benefit publishers is part of President Biden’s Build Back Better legislation. DeSaulnier’s bills, by contrast, would address the problem that journalism is not among the activities that qualifies for nonprofit status, even though the IRS has approved such status for many news organizations over the years.

The full press release issued by Rep. DeSaulnier’s office follows.

Congressman DeSaulnier Introduces Legislative Package to Support and Preserve Local Journalism

Washington, D.C. – Today, Congressman Mark DeSaulnier (CA-11), along with his colleagues Congressman Ed Perlmutter (CO-07), Congressman Jamie Raskin (MD-08), and Congressman David Cicilline (RI-01) introduced two pieces of legislation aimed at supporting and protecting local journalism, and honoring its role in bolstering our democracy, holding government accountable, and informing the electorate. The Saving Local News Act (H.R. 6068) would make it easier for newspapers to become non-profits, allowing them the flexibility to focus less on maximizing profits and more on producing quality content. The local news resolution (H.Res. 821) recognizes the importance of local media outlets to society and expresses the urgent need for Congress to help stop the decline of local media outlets.

“Local journalism has been the bedrock of American democracy for centuries. I have seen firsthand how journalists for local newspapers have kept our community informed, educated voters, and held power to account,” said Congressman DeSaulnier. “As local newspapers are being bought up and taken over by large corporations, it is incumbent on Congress to act to protect this public good. My legislation would do just that and ensure newspapers in every community can continue to provide high-quality local coverage that millions of American rely on and deserve.”

“Local and accurate sources of news are becoming more and more important for our community and our country. I believe Congress has a role to play to ensure legitimate media outlets are able to better adapt to the changing media landscape and continue to inform Americans in every community,” said Congressman Perlmutter.

“An informed American public is essential to strong democracy,” said Congressman Raskin. “We cannot allow worldwide propaganda and conspiracy theories to replace hard local news based on local reportage. I’m proud to join Rep. DeSaulnier in introducing this important legislation that will give local news the flexibility it needs to thrive in a dangerously toxic media environment.”

“Over the past 15 years, one in five newspapers have closed, and the number of journalists working for newspapers has been slashed in half. We now live in a country in which at least 200 counties have no local newspapers at all,” said Congressman Cicilline. “This crisis in American journalism has led to the crises we are seeing today in our democracy and civic life. We cannot let this trend continue because if it does, we risk permanently compromising the news organizations that are essential to our communities, holding the government and powerful corporations accountable, and sustaining our democracy. I’m proud to support this resolution and the Saving Local News Act and thank Congressman DeSaulnier for his leadership and partnership in this work.”

“We commend Congressman DeSaulnier for introducing this important piece of legislation that recognizes the importance of nonprofit journalism to the American society. At a time when news deserts are a growing concern, we must ensure that we support all newsrooms in their efforts to provide high-quality journalism to their local communities. This journalism bill that would allow non-profit newsrooms to treat advertising revenue as nontaxable income could be helpful to a number of publishers,” said David Chavern, President and CEO, News Media Alliance.

“Community newspapers are exploring many new models for sustainability. Our newsrooms realize that without us, whole communities will lose their center of gravity. A nonprofit model is one that can work in some communities, but just establishing this status isn’t enough to keep the doors open and journalists at work. The need for revenue from a variety of sources, including local advertisers, remains acute. NNA supports the Saving Local News Act and thanks Congressman DeSaulnier for his work on behalf of local communities,” said Brett Wesner, Chair, National Newspaper Association and Publisher, Wesner Publications, Cordell, OK.

“Honest, truthful reporting is essential to informing our democracy at all levels. Without it, we won’t remain a nation of the people, by the people, for the people. Bills that help sustain local reporting that informs people about what their government representatives are up to, will help keep the citizens in charge of our country,” said George Stanley, President of the News Leaders Association.

“News organizations are looking at multiple ways to fund their organizations while continuing to deliver local journalism that is fundamental to a thriving Democracy. If news organizations want to pursue the nonprofit business model; it should be as accessible for established organizations as it is for news startups. Our members are known and trusted in the communities they serve and removing the hurdles to find philanthropic support would allow newsrooms to focus on serving their communities,” said Brandi Rivera, Publisher, Santa Barbara Independent and Board Member, Association of Alternative Newsmedia.

“Community newspapers are woven into the fabric of American society and provide accurate and trusted information that improves the lives of individuals in the communities they serve. It is no secret that newspapers face an increasing number of existential threats from online competitors which have left them with a decreasing number of revenue opportunities. This measure would provide news organizations with the means to better rise to these challenges and continue to play a vital role in their communities by holding the feet of the powerful to the fire and giving voice to the powerless,” said Jim Ewert, General Counsel, California News Publishers Association.

“Free Press Action supports this important legislation and applauds Congressman DeSaulnier for recognizing the importance of building, supporting and sustaining local nonprofit news operations,” said Craig Aaron, President and co-CEO of Free Press Action. “In too many places, corporate media have shrunk newsrooms or abandoned communities entirely. Nonprofit news has emerged as the future of local journalism, and it’s our best hope for keeping reporters on the beat focused on the needs of local communities, serving communities of color, and reaching so many people who have never been well served by the media. This bill will remove obstacles to nonprofit journalism, help launch more of these outlets, encourage more existing outlets to go nonprofit, and create more of the kind of high-quality journalism we need to inform our communities and keep our democracy thriving.”

“The hollowing-out and disappearance of local news organizations imperils journalism, communities and our democracy. These measures provide a financial lifeline and tools for the next generation of journalists to pursue new models and innovation that bring more local news to communities,” said Professor Jonathan Kaufman, Director of the Northeastern University School of Journalism.

“The health of the news industry is so precarious, all efforts to strengthen an industry so instrumental to democracy are well received. Thanks to Rep. DeSaulnier for stepping up,” said Jody Brannon, Ph.D., Director of the Center for Journalism and Liberty at the Open Markets Institute.

“The U.S. tax code needs this important update to make it easier for nonprofit news organizations to grow across our country. We’ve lost tens of thousands of local journalists over the last decade. That’s meant fewer journalists covering local government meetings, local business and even high school sports. Journalists are essential to holding power to account, watching over our democracy and providing a voice to the voiceless. We applaud Rep. DeSaulnier’s support of journalism. Our country was founded under the principle that a free press was the best way to make sure we have a robust democracy by having an informed electorate. We all have to fight now to save local news,” said Jon Schleuss, President of NewsGuild-CWA.

“The newspaper business model is broken. At a time when local journalism has never been more essential, journalists are losing their jobs across the country, leaving important stories untold. Compelling, original journalism does continue to drive significant advertising revenue—just not for newspapers. Big Tech giants, like Google and Facebook, have used their monopoly power to capture huge swaths of the digital advertising market, making it nearly impossible for many papers to chart a path forward in the digital age. This has allowed hedge fund vulture capitalists to scoop up scores of newspapers across the country—all of whom have been reduced to shadows of their former glory by a short-sighted cut, cut, cut approach. We welcome and applaud efforts to help news outlets continue to cover of the communities they serve. This legislation will create a path that communities can use to save their local papers. Local news is a key piece of American democracy, and while addressing the underlying problems Big Tech has created for journalists is complex, we have to do everything we can to allow for news to thrive,” said the Save Journalism Project.

“PEN America applauds the introduction of the Saving Local News Act – and the accompanying resolution on the importance of local news – as a welcome and needed step to support America’s journalism ecosystem. By making it easier for news organizations to become nonprofits, Congressman DeSaulnier’s legislation will open up a sustainable financial pathway for quality local journalism, recognizing its value as a public good. Enacting this bill will strengthen a fundamental pillar of our democracy, encouraging diverse reporting, civic engagement, and access to essential community information,” said Nadine Farid Johnson, Washington director of PEN America.

Since 2017, estimated daily newspaper circulation fell 11 percent from the previous year (Pew Research Center). Congressman DeSaulnier established a working group of dedicated Members of Congress from areas affected by a drought of high-quality journalism. Together they have been working to highlight this crisis and bring attention to the need to promote local journalism, including by holding a Special Order on the floor of the U.S. House of Representatives and introducing the Journalism Competition and Preservation Act (H.R. 1735), a bill to create a temporary safe harbor from anti-trust laws to allow news organizations to join together and negotiate with dominant online platforms to get a fair share of advertising profits.

Congressman DeSaulnier’s bill and resolution are supported by: News Media Alliance, National Newspaper Association, News Leaders Association, Association of Alternative Newsmedia, California News Publishers Association, Free Press Action, Faculty of the School of Journalism at Northeastern University, Local Independent Online News (LION) Publishers, Save Journalism Project, PEN America, Center for Journalism and Liberty at the Open Markets Institute, and NewsGuild-CWA.

Democratic leaders roll the dice with assistance for local news organizations

Sen. Joe Manchin. Photo (cc) 2017 by Third Way Think Tank.

The Local Journalism Sustainability Act (LJSA), which I’ve written about rather obsessively here, is built upon the foundation of a three-legged stool: a tax write-off for individuals of up to $250 for subscription fees or donations to local news organizations; a tax credit for advertisers in local news outlets; and a payroll tax credit for publishers that hire or retain journalists.

Now the payroll credit has been carved out and added to the Build Back Better bill, which has passed the House and now faces uncertain prospects in the Senate. Marc Tracy reports in The New York Times that the provision would add up to nearly $1.7 billion over the next five years for newspapers, digital operations and broadcast operations.

Tracy notes — rather huffily, if I’m reading him accurately — that large newspapers like the Times would be excluded because they employ more than 1,500 in one location, but giant newspaper chains such as Gannett and those owned by Alden Global Capital would stand to benefit. As I’ve said before, I wish there were a way of restricting the benefits to independent owners; still, this strikes me as worth trying.

What I’m more concerned about is the political wisdom of adding just one part of the LJSA to Build Back Better, which — despite the optimism voiced by President Biden and other Democratic leaders — could be doomed given the seemingly endless demands made by Democratic Sens. Joe Manchin and Kyrsten Sinema.

There is at least some bipartisan support for the LJSA. Moreover, the tax write-off for subscriptions and donations strikes me as more interesting and creative than simply handing money to publishers for not laying people off. If Build Back Better passes, it will be with just 50 Democratic votes and Vice President Harris breaking the tie — and at that point it seems likely that the other two legs of the stool would disappear. If Build Back Better goes down to defeat, proponents of the LJSA will have to start from scratch.

Even so, the benefits that would be provided by the payroll tax credit are not insignificant. Art Cullen, editor of Iowa’s Storm Lake Times, tells The New York Times that the credit would mean $200,000 in just the first year for his struggling newspaper. “We’d be walking in tall cotton,” he’s quoted as saying. (Ellen Clegg and I spoke with Cullen recently on our podcast, What Works: The Future of Local News.)

Providing government assistance to journalism is fraught with concerns about the First Amendment and the need for an independent press. Yet journalism has always benefited from government help, starting with postal subsidies in the late 1700s. The LJSA is worth trying. I just hope that Democratic leaders haven’t outsmarted themselves by splitting up a bill that stood a decent chance of passing and grafting it onto a large package that they just can’t seem to get done.

Become a member of Media Nation for just $5 a month!

Alden’s latest move may be the final act in Warren Buffett’s newspaper misadventure

Warren Buffett. Photo (cc) 2011 by Fortune Live Media.

The final act is about to be consummated in Warren Buffett’s disappointing dalliance with the newspaper business. Despite the legendary investor’s self-professed love for newspapers, he ran the newspapers he acquired starting in 2012 as a hopeless cause rather than investing in them as his fellow billionaires Jeff Bezos did with The Washington Post and John Henry did with The Boston Globe.

Buffett eventually sold his papers — including his hometown Omaha World-Herald — to Lee Enterprises. And on Monday we learned that the predatory hedge fund Alden Global Capital is now attempting to purchase Lee’s 90 daily newspapers, which are located in 26 states. The death watch has begun.

I wrote about Buffett’s track record as a newspaper owner in my book “The Return of the Moguls.” Here’s an excerpt.

***

When Buffett’s Berkshire Hathaway investment company purchased 63 newspapers from the Media General chain in 2012 for $142 million, the news was greeted with the hope that the legendary octogenarian might be just the person to show the way forward. Buffett bolstered his new holdings by extending loans to those papers totaling $445 million. It was a generous gesture with which Aaron Kushner and his investors, who also wanted the papers, could not compete. A year earlier Buffett had bought his hometown paper, the Omaha World-Herald, along with six other papers for $200 million. He already owned The Buffalo News. And in those pre-Bezos days, he held a substantial number of shares in The Washington Post Co. “Does Warren E. Buffett want to be a media mogul?” asked The New York Times.

Certainly Buffett had the right pedigree. Not only was he a brilliant financial thinker, but he had long loved newspapers and had been a close adviser to the Graham family at The Washington Post for many years. He even had a hand in winning a Pulitzer Prize: in 1973, when he was the owner of the Omaha Sun, he helped his reporters investigate a local charity by finding documents, providing financial analysis, and even assisting with the writing. Katharine Graham praised Buffett fulsomely in her autobiography, saying that he became a trusted confidant after he invested in the Washington Post Co. “By the spring of 1974,” she wrote, “Warren was sending me a constant flow of helpful memos with advice, and occasionally alerting me to problems of which I was unaware.”

Yet Buffett, astute financier that he is, expressed skepticism about prospects for the newspaper business after it entered its long decline. In 2009, for instance, he said he had no interest in purchasing papers, because their financial outlook was so grim. “For most newspapers in the United States, we would not buy them at any price,” he said. “They have the possibility of going to just unending losses.” And though he later reversed himself, his acquisition strategy gravitated toward papers of the type that still do reasonably well: those in medium-sized markets where the local paper is the principal source of regional and community news and where competition from the internet is less a factor than it is in large cities. Buffett’s papers carry little debt and are profitable. In the spring of 2016, though, he admitted that the picture was continuing to darken for the newspaper business and that he was no closer to finding a way out than anyone else.

“We haven’t cracked the code yet,” he told USA Today. “Circulation continues to decline at a significant pace, advertising at an even faster pace. The easy cutting has taken place. There’s no indication that anyone besides the national papers has found a way.” He added that even though all of his papers were making money (at that time he was up to 32 dailies and 47 weeklies), that might not be the case in future years. “If you have a problem in five years, you have a problem now,” he said. Buffett doubled down on those remarks in early 2017, telling CNBC that The New York Times, The Wall Street Journal, and possibly The Washington Post were the only newspapers he believed had an “assured future,” explaining, “They have developed an online presence that people will pay for.”

Less than two months later, the hammer came down at BH Media, the company Buffett had set up to manage his newspapers. BH Media announced the termination of 289 positions throughout the chain, including the elimination of 108 vacant jobs. The BH Media president and chief executive officer, Terry Kroeger, told the Omaha World-Herald that Buffett had been informed of the reductions but that “his opinion was not sought or offered,” in keeping with Buffett’s hands-off investment philosophy. Kroeger blamed the papers’ declining revenue on changes in retail advertising, and especially on the move to online shopping — an irony given how the most successful of the new breed of newspaper owners, Jeff Bezos, made his money. Buffett’s World-Herald did not suffer any cuts at that time. But then, in May, BH Media reduced the size of the Omaha paper and eliminated three jobs, according to a memo to the staff from the executive editor, Melissa Matczak.

For a self-confessed newspaper fan whose net worth was roughly the same as that of Bezos (more than $60 billion apiece in mid-2016), Buffett’s role in helping to figure out the future of journalism might be considered disappointingly modest. Perhaps it would be too much to expect someone in his mid-80s to dedicate himself to figuring out the future of the newspapers he had acquired. But he was ideally positioned to bring in the sorts of minds who might apply themselves to the task of saving smaller papers in much the same way that Bezos and Henry were attempting to reinvent their much larger properties. Surely Buffett understands as much as anyone that readers and advertisers will put up with an ever-diminishing paper for only so long before an irreversible downward spiral sets in.

Become a member of Media Nation for just $5 a month!

In our latest podcast, Penny Abernathy talks about news deserts and what to do about them

Penelope Muse Abernathy

Penelope “Penny” Muse Abernathy, a visiting professor at Northwestern University’s Medill School of Journalism, arguably launched a movement with her path-breaking research on “news deserts” and the forces undermining community newspapers across the nation.

Abernathy, a former executive with The New York Times and The Wall Street Journal, was also Knight Chair in Journalism and Digital Media Economics at the University of North Carolina from 2008 to 2020. She talks about why this is a pivotal moment for community journalism, about her forthcoming research and about why her journalism students are still bullish on speaking truth to power at the local level.

In Quick Takes, Dan reports that the nonprofit strategy at The Salt Lake City Tribune is actually working out, and Ellen tunes us in to Heartland Signal, a new digital outlet with a Democratic spin that is setting up to cover the midterm congressional elections.

Please give us a listen — and subscribe via Apple Podcasts, Spotify or wherever fine podcasts are available.

Guild approves contract with Boston Globe Media, ending nearly three years of strife

After nearly three years of increasingly fraught negotiations, the Boston Newspaper Guild and Boston Globe Media Partners have finally reached agreement on a new three-year contract. The Guild is the union that represents newsroom employees at the Globe as well as several other departments. Staff members at Boston.com and Stat News are included as well.

Don Seiffert has the details in the Boston Business Journal, reporting that about 85% of Guild members approved the contract proposal, which calls for raises, a signing bonus, a new parental-leave policy, the continuation of overtime pay and unspecified protections against outsourcing.

Become a member of Media Nation for just $5 a month!

The Globe has been growing in recent years, as its paid digital subscription drive has led to profitability (at least before the pandemic) and new hires. William Turville wrote in the U.K.-based Press Gazette last week that digital-only subscribers have settled in at about 225,000, as the paper has retained most of those who signed up at a big discount during the height of COVID-19.

Still, there are warning signs for owners John and Linda Henry, as Seiffert notes. The contract talks grew increasingly contentious over time. In September, Sens. Elizabeth Warren and Ed Markey pulled out of a Globe-sponsored event in order to show their support for the union.

“There’s definitely a sour taste lingering in our mouths,” an anonymous union member told Seiffert. “I doubt any of us will trust our owners as much as we once did.”

Such feelings are understandable but can be overcome with time. The best way to do that is to put out a great newspaper.

Here’s a statement from management, as reported by the Globe:

A Globe spokesperson said the contract “provides strong protections and economic benefits for Guild members and we will immediately start working together on its implementation.”

“The Globe remains committed to journalistic excellence and a relentless focus on providing the best possible service to our region,” the spokesperson said in a statement. “We will continue to invest and innovate in order to ensure that the local, independent journalism that our community has relied on for nearly 150 years will thrive and be sustainable for many years to come.”

And here’s a statement from the Guild, provided Friday night by a trusted source:

Dear Guild members,

Following the tabulation of today’s vote, we are pleased to announce that Guild membership has voted to ratify the three-year tentative contract agreement between the Boston Newspaper Guild and Boston Globe Media Partners.

Together, the two parties have reached an agreement that will benefit the approximately 300 members of the Guild while also providing the company some of the operational flexibility it desired to chart a path for the company’s future success.

As soon as the contract is officially ratified by both parties, which will happen in short order, Guild members will receive a $1,000 signing bonus and a 3 percent raise on their base salary. At the start of year two and year three of this agreement, members will receive 2 percent raises. After nearly three years of difficult negotiations, it is nice to know that our members will have some extra money coming in during the holidays.

Additionally, this agreement will help codify crucial employee rights that were at risk during many stages of these negotiations. All employees will be protected by the Guild’s powers of grievance and arbitration in matters of discipline, termination, and any attempt by the Globe to create new company policies. The Guild also ensured that strong fences have been put around the company’s ability to subcontract work to outside providers, a crucial compromise that protects the integrity of our newsroom. This agreement also retains the successors and assigns clause from our prior CBA, which means that the vast majority of Guild members will enjoy all of the rights afforded by this contract in the event that the Globe comes under new ownership.

This contract would not have been possible without the time and effort of so many of you who chose to fully engage, show up, and do the hard work required, despite the demands of your own busy lives. Through your words and actions over the last three years, we have reached an agreement that stands in stark contrast to the one we were first offered back in 2018. Over the next three years, we hope that every member will continue to stay involved and be vocal about policies you believe will create a better, stronger Boston Globe.

In solidarity,

The BNG Negotiation Team

Scott Steeves
Jenna Russell
Kevin Slane

The Cambridge Chronicle lives. But the city still needs a lot more coverage.

News coverage in Cambridge — or the lack thereof — got a lot of attention recently when Joshua Benton wrote in Nieman Lab about the departure of Amy Saltzman as editor of the Cambridge Chronicle-Tab.

What drew national notice was Benton’s warning that maybe Saltzman wouldn’t be replaced and that Gannett would allow it to sink into the ranks of ghost newspapers. Fortunately, that didn’t happen, although Gannett has gone on a spree of shutting down print editions recently. Saltzman’s successor, Will Dowd, introduced himself this week. But Benton’s larger point still holds. Cambridge, a well-educated, affluent city of about 118,000, is covered by just one full-time paid journalist.

Saltzman edited the Chronicle for nine years, which is about 150 years in Corporate Chain Journalism Time. In her farewell column, she writes that she had more resources at her disposal back when she started — in addition to herself, there were one and a half reporting positions, an editorial assistant, a freelance budget, several photographers and an office in nearby Somerville. Four years later, she found herself alone. Yet she adds:

So as I leave my post, I have one plea: Support local journalism. Subscribe to the Chronicle. The paper’s survival as the oldest continuously run weekly newspaper in the country continues to be against all odds and should be lauded.

Well, now. Should Cantabrigians support the Chronicle? My answer would be yes if they’re getting value from it. But I don’t think anyone should feel obliged to support a paper that’s been hollowed out by Gannett and its predecessor company, GateHouse Media, especially when it could almost certainly be run profitably with a bigger staff and a more imaginative approach to the business of journalism. At this point, the closest thing the city has to a news source of record is the Cambridge Day, a mostly volunteer project. It would be nice to see some resources put into the Day, or perhaps into a nonprofit start-up.

Then again, news coverage in Cambridge has always been a puzzle. According to legend, at one time it was the largest city in the country without a daily newspaper, a fact that was usually attributed to its proximity to Boston. Yet neither the Globe nor the Herald ever gave more than cursory coverage to Cambridge. The alt-weeklies — The Boston Phoenix and The Real Paper — actually devoted quite a few resources to Cambridge coverage since that’s where a lot of their readers lived. I remember covering a few Cambridge political stories myself. But those papers are all gone.

When I was a senior in college, a friend of mine who lived in Cambridge and I made serious plans to launch a weekly after we graduated that would compete with the Chronicle, then owned by the Dole family. As we immersed ourselves in the details, though, we discovered that the Chronicle was actually selling its ads at prices well below those listed on its rate card. Realizing we’d be undercut, we got about the business of finding jobs, and that was that.

Later on, Russel Pergament launched the Cambridge Tab, a free paper that was part of a chain of Tab papers in the western suburbs. Pergament sold out to Community Newspaper Co. in 1996, when it was owned by Fidelity Capital. The Chronicle and the Tab were eventually merged.

Which brings us back to the present. Saltzman enjoyed a solid reputation, and I know that Dowd was respected for his work at Gannett’s North Shore papers. But one person can’t cover a city of nearly 120,000 people. It’s long past time for someone to step in and provide Cambridge with the news and information it needs.

Please become a member of Media Nation for just $5 a month!

The Salt Lake Tribune, now a nonprofit, reports that it’s healthy and growing

Salt Lake City. Photo (cc) 2011 by Jazz Spain.

You sometimes hear that nonprofit status is not a solution to the local news crisis. After all, just because a media outlet is a nonprofit doesn’t mean it’s exempt from having to bring in revenue and balance its books.

True. But nonprofit ownership also means local ownership invested in the community. Which is why the latest news from The Salt Lake Tribune, the largest daily paper in Utah, is so heartening.

According to a recent update from Lauren Gustus, the executive editor, the Tribune is growing. The newsroom, she writes, is 23% larger than it was a year ago, with the paper adding a three-member Innovation Lab reporting team and beefing up its reporting, digital and editing operations. After cutting back to just one print edition each week, it’s adding a second. The Tribune is also taking care of its employees, she says, providing much-needed equipment to its photographers as well as a 401(k) match and parental leave.

“We celebrate 150 years this year and we are healthy,” she writes. “We are sustainable in 2021, and we have no plans to return to a previously precarious position.”

The Tribune was acquired from the hedge fund Alden Global Capital in 2016 by Paul Huntsman, part of a politically connected Utah family. As I wrote for GBH News in 2019, Huntsman, like many civic-minded publishers before him, discovered that owning a newspaper isn’t as easy as he might have imagined. He was forced to cut the staff in order to make ends meet before hitting on the idea of transforming the Tribune into the first large nonprofit newspaper in the country.

Nonprofit ownership makes it easier to raise tax-deductible grant money from foundations, and it transforms the subscription model into a membership model. Done right, the audience feels invested in the news organization in a way that it generally doesn’t with a for-profit newspaper.

One disadvantage is that nonprofit news organizations are constrained from some traditional newspaper functions, including having a robust editorial page that endorses political candidates. On the latest episode of our podcast, “What Works,” Storm Lake Times editor Art Cullen told Ellen Clegg and me that’s why he and his older brother, John, the publisher, have kept their paper for-profit.

What the Cullens have done instead is set up a nonprofit organization called the Western Iowa Journalism Foundation that can receive tax-deductible donations to support the Times and several other papers. It’s a model similar to that used by news outlets as large as The Philadelphia Inquirer and as small as The Colorado Sun and The Provincetown Independent.

The local news crisis will not be solved by a single model, and there’s plenty of room for nonprofits, for-profits and hybrids. What’s taking place in Salt Lake is important, and is sure to be watched by other news executives.

“The Tribune will welcome more journalists in 2022,” writes Gustus, “because you’ve told us many times over that this is what you want and because if we are not holding those in public office to account, there are few others who will.”

Please become a member of Media Nation for just $5 a month!