Dancing on the newspaper business’ grave

Former Wall Street bad boy Henry Blodget takes a look at the state of the newspaper business and asks an impolite question: So what? Blodget writes:

“Journalism” is alive and well, as evidenced by the still-robust health of companies like Bloomberg and Reuters, the survival of the New York Times, Wall Street Journal, and other great news organizations, the hyper-growth of online news and commentary sites, and the rise of social media.

Interestingly, Blodget’s provocation coincides with news that conditions are improving at the New York Times Co., which, despite its financial woes, is almost certain to be one of the winners in the emerging media landscape.

And I don’t think anyone would disagree with Blodget’s assessment that “society doesn’t need hundreds of White House reporters.” Back in the day, many of us used to argue that at least a few newspapers ought to have the guts to leave the White House to the AP and instead dig into the undercovered federal agencies. It never happened, and the moment has long since passed.

But I can’t be as cavalier as Blodget. If major metropolitan newspapers like the Boston Globe, the Philadelphia Inquirer and the Miami Herald can’t reinvent themselves as robust local-news operations, or somehow be replaced, then democratic self-government will suffer.

As you know, I’ve been paying a lot of attention to the New Haven Independent, a non-profit news site that stands as an interesting model of where local journalism may be headed. The local daily, the New Haven Register, is owned by the Journal Register Co., which is bankrupt. [Correction: The company emerged from bankruptcy in August.] The Register still does good work, but the Independent focuses more closely on the city, on urban issues and on community-building.

But the Independent employs just four full-timers, plus another two at an affiliate site. And it may never get much bigger than that.

I have very little nostalgia for the newspaper business, and I’m excited and energized about what’s taking place at the grassroots. But if we lose the capacity to throw bodies at certain kinds of complicated stories, especially local stories, then we’ll have lost a lot. (Via Jack Shafer’s Twitter feed.)

Calling all NU journalism majors

If you are a journalism major at a university other than Northeastern, please look the other way for a moment.

Placeblogger is looking for two interns at its office in Cambridge. Headed by Lisa Williams, the project tracks local blogs across the country and around the world. It’s cutting-edge stuff, and you’ll learn a lot about the future of journalism.

Check out the slideshow. And just do it.

Steamed Brauchli

Washington Post executive editor Marcus Brauchli emerged from the salon debacle unscathed. But now that he’s admitted he knew all along that the salons were intended as off-the-record fundraisers, it’s time to demand that he and publisher Katharine Weymouth come clean on what they knew and when they knew it.

Or so I argue in the Guardian.

Paid content, free alternatives

Boston Herald publisher Pat Purcell is the latest to argue that newspaper owners need to get together and agree to start charging for online content. And as I’ve said before, I’m not philosophically opposed. But it’s not going to work.

Let’s say every newspaper began charging for Web-site access tomorrow. By the end of the day, anyone could put together about a half-dozen bookmarks giving them at least 75 percent to 80 percent of what they were getting from newspapers, provided by news organizations that are free and will almost certainly remain so.

Here are just a few top-of-my-head alternatives. I’m leaving out a lot more than I’m including.

Consider, too, that many of these sites would beef up if newspapers were to withdraw from the free Web. Nothing remains static, especially when a business opportunity beckons.

There is no pot of paid-content gold at the end of the online rainbow.

More: Steve Buttry made similar points back in June.

Tax incentives, yes. Government subsidies, no.

Len Downie
Len Downie

Len Downie, former executive editor of the Washington Post, and Michael Schudson of Columbia University will release a report tomorrow that calls, among other things, for direct government funding of local journalism. Rick Edmonds of the Poynter Institute says such funding could amount to $500 million a year.

Despite Downie’s sterling credentials — and he’s looking better every day — I suspect this isn’t going anywhere, nor should it. True, Downie and Schudson try to draw parallels to existing models such as the National Endowments for the Arts and Humanities in order to make their proposed Fund for Local Journalism seem less exotic. But it still amounts to a direct government bailout for the news business, which would severely compromise journalism’s ability to act as a watchdog on government.

Indirect government subsidies in the form of non-profit status and the tax incentives that go with that status make much more sense. Not that every news organization should go non-profit. But many non-profit news organizations are already doing good work, including public radio and television (which, alas, do receive some direct government funding) and community Web sites such as Voice of San Diego, MinnPost and the New Haven Independent.

If legislation is needed to bring non-profit news more into the mainstream, that might not be a bad idea. But when government starts writing checks, it will, inevitably, demand to have some say in what it’s paying for.

Chest-hair battle rages on

Boston Herald media reporter Jessica Heslam says Platinum Equity chairman Tom Gores does too have chest hair, and that the print version of the photo she and Boston University’s Tom Fiedler saw in the Boston Globe recently makes that clear. She writes:

Kennedy … has posted what appears to be the Internet version of the Gores photo on his blog. But if you still read a newspaper the good-old-fashioned way, like Boston University journalism honcho Tom Fiedler and I do, you’ll see that his black chest hair is very prominent.

I will have to take Heslam’s word for it. She’s right in saying I did not see the print version of the Globe. A quick survey of Google Images this morning does not settle the issue. In any case, Gores will not be the next publisher of the Boston Globe, so this hairy issue will have to remain unresolved.

Balloon dad hits the 14:59 mark

Richard_Heene_20091017Yes, we should all be skeptical about checkbook journalism, and Gawker is right up front about having paid Robert Thomas, a former friend and would-be business associate of balloon dad Richard Heene (photo).

But if Thomas can be trusted, the picture he paints of Heene is devastating. Thomas portrays Heene as an increasingly paranoid, frantic man who believes shape-shifting reptiles are running the government and who would do anything to get on television.

The two had even talked about perpetrating a hoax with the balloon, Thomas claims, though getting one of the kids involved was supposedly not part of the original plan.

This story in the Denver Post only adds to the sense that it’s all about to fall apart.

Photo of Heene is from his MySpace profile.

GateHouse reverses pay cuts

Despite having plenty of financial problems of its own, GateHouse Media New England will reverse pay cuts that had been implemented earlier this year. A little while ago Media Nation obtained a copy of an e-mail that president and CEO Rick Daniels sent to all staff members announcing the news. The full text follows.

Colleagues,

Based on the strengthened cash flows over the last several months, I am pleased to announce that the temporary pay cuts that were implemented in June and July are coming to an end, and our pay rates will be restored to full, pre-cut levels. For those whose pay was reduced as of June 1, the first workday that will be paid using the original, “pre-cut” rates will be Oct. 5th. The first paycheck that will reflect your original rates will be Oct 23rd. For those employees who received paychecks on Oct. 14th, your “retroactive pay” (from Oct. 5th onwards) will be reflected in your first post-announcement paycheck. For those colleagues who are represented by unions, the restorations will be done in accordance with the terms of the relevant agreements. These dates have been communicated to union leadership and your respective managers will communicate these dates to you under separate heading.

First and foremost: Thank you all — for your work, your dedication and your toughness. NONE of us were pleased about the need to take this step, yet the vast majority of employees did not choose to do anything BUT to put in their very best efforts to do their jobs so that we could reverse these cuts as soon as possible. We believed then, and still believe that this step allowed us to preserve the core assets and capabilities our customers value most. While the members of the senior management team had hoped we could restore these cuts prior to year’s end, at least partially, we are heartened that the time spent under the pay cuts will prove to be shorter than expected; that said, even had it been a week or a month, it would have still been an onerous sacrifice. Ending these cuts is not only a major relief for all of us, but it’s also an important affirmation of our business model, and an affirmation of the quality and effectiveness of our collective efforts, and the results we have been able to generate. We are in a position to restore the cuts because GHMNE is again generating sufficient cash flows to be clearly and safely in the black. If you remember, when we announced these cuts, I said there were two kinds of companies: Those that produced positive cash flow, and those that didn’t, and we could not allow ourselves to be among those that didn’t.

I don’t want to create any misimpressions that the economy, and its powerful effects on our advertising revenues, is improving all that much. Ask any of our sales personnel. Most of our advertisers are struggling. For the most part, most of our cash-flow improvements are being generated by very stringent spending reductions, NOT a rapid return to great revenue performance — (although there has fortunately been some strengthening in revenue comparisons vs. the year over year declines we experienced earlier in the year). NONE of these cost reductions has been “easy”, and while we’ve turned over many stones to reduce the structural costs of GHMNE by several millions of dollars, we need to continue to take all possible steps to increase our efficiencies — and we will. Going forward, we need to continue to evaluate all aspects of our operations to help ensure that we are operating in a smart and efficient manner. ALL of us hope that we will never have to cope with pay reductions again (and I’m sure we all hope we never see another “Great Recession” in our lifetimes). We have, once again, proven that highly focused and very efficient local publications (both print and digital), that are produced by a very focused, talented and dedicated group of team members are extraordinarily durable, because they provide exceptional and truly unique value to readers and advertisers. We have a GREAT, and now very much battle-tested, group of employees and publications that will allow us to get back to the business of growth, and probably in the not-too-distant future. There are a host of new business initiatives, both at local and at GateHouse-wide levels that are being put into effect, and both I and the members of the senior team will be scheduling site visits and employee meetings in just over a month to share details on some of these, as well as answer your questions and hear your thoughts and suggestions. Again, thanks very much — you’re talented, dedicated and durable and a group that’s a true privilege to work with and lead.

Richard Daniels,
President and Chief Executive Officer

“What’s the end-game there?”

Former Boston Globe columnist John Ellis, a venture capitalist who disclosed earlier this year that he’d done some work for a potential buyer, warns that things are still bad at 135 Morrissey Blvd. and likely to get worse.

“How long can the NYT afford to carry the net operating losses?” he asks. “When does it make more sense to just shut it down?”

Ellis also argues that the Globe must do everything it can to hang on to what’s left of its big-name sports talent, namely columnists Dan Shaughnessy and Bob Ryan.

I revere Ryan, who, despite his veteran status, happens to be one of the hardest-working folks at the Globe. Shaughnessy’s a good read even when he’s sending me over the edge. But the idea that management might have to shell out more money to keep its stars from jumping to the Internet is galling at a time when everyone else is being asked to sacrifice.

Which is not to say Ellis is wrong. He’s probably right.

Surveying the Globe-al manscape

Tom Gores
Tom Gores

A grateful Media Nation extends its thanks this morning to Tom Fielder, dean of Boston University’s College of Communication, for giving me an excuse to run this photo of Platinum Equity chairman Tom Gores one more time.

Fiedler cites the photo in explaining why Gores would have been all wrong for Boston if he had succeeded in purchasing the Boston Globe. Jessica Heslam and Christine McConville of the Boston Herald write:

Fiedler said if there was one story that signaled the sale wasn’t moving ahead, it was the Oct. 7 Globe piece on Platinum founder Tom Gores that included a photo of him “with his chest open, chest hair just puffing out.”

“This said to me, number one, the Globe editor who laid out this page doesn’t like this guy, and number two, this guy doesn’t understand Boston,” he said.

“Chest hair just puffing out”? Really? As I noted on Oct. 7, the day the Globe ran the photo, Gores was “[w]earing a flamboyantly pinstriped black suit jacket over a black shirt strategically unbuttoned to show off his smooth chest.” And I’ve had some serious and substantive discussions with fellow media analysts as to whether Gores may have partaken in some manscaping to achieve his smooth look.

It’s likely that Fiedler was too horrified to look closely.

In other Globe-related news, we learn in the Herald story that ballooning pension-liability costs were a major reason that the New York Times Co. ultimately failed in its attempt to sell the Globe either to Platinum or to a group led by former Globe executive Stephen Taylor. That was a story the Herald broke a week ago, so good on them.

In the Globe, Beth Healy and Robert Weisman report that Globe publisher Steve Ainsley would not rule out further cuts when he and Times Co. president Janet Robinson met with employees yesterday.

Over at Beat the Press, Ralph Ranalli quotes Globe staff member Scott Allen’s downbeat take on the meeting: “I think people probably came away from that meeting feeling like well, we know who our owner is, but we don’t see any improvement in our working conditions for some time to come.”