After Alden Global Capital destroyed The Denver Post, everyone assumed it was lights out. A city that had long had two vibrant daily papers (the Rocky Mountain News closed down in 2009) now barely had one.
Suddenly, though, news sources are proliferating in Denver. Today the all-digital Denver Gazette makes its debut, joining an earlier start-up, The Colorado Sun. The alt-weekly Westword continues to publish.
The lesson, as always, is that when legacy media fail, entrepreneurial journalists seize the opportunity to move in.
Among those of us who follow the business of local news, there is a tendency to lump the two most notorious corporate chain owners together. Gannett Co. and Alden Globe Capital, after all, are both notorious for slashing their newsrooms to the bone. Their newspapers and websites in too many instances fail to meet the information needs of the communities they purportedly serve.
Yet there is a difference. And I was reminded of that difference recently by Rick Edmonds, who analyzes the media business for the Poynter Institute.
After a decade’s worth of cuts, Gannett is planning to bolster its reporting corps in the near future, Gannett chief executive Mike Reed told Edmonds — although he didn’t provide any numbers. Currently, Gannett employs about 5,000 journalists at its properties, which include USA Today, about 260 regional dailies and many other weekly papers and websites, including dozens in Greater Boston.
“We need to get even better,” Reed was quoted as saying. Well, OK. I would replace “even” with “a lot.” Still, such talk would be unimaginable at Alden Global Capital, whose MediaNews Group chain of about 200 papers has sparked newsroom revolts as well as demands from 21 U.S. senators that the company stop its “reckless acquisition and destruction of newspapers,” according to a recent story by Sarah Ellison in The Washington Post.
The difference between how Gannett and MediaNews are perceived may have something to do with their ownership structures.
The current Gannett is the result of a merger late last year between Gannett and GateHouse Media. Despite keeping the Gannett name, it was clearly GateHouse that got the better of the deal: Reed was the chief executive at GateHouse before assuming the same position at Gannett. The new Gannett immediately embarked on an estimated $400 million in cuts in order to pay down the debt it had taken on in financing the merger, according to the media-business analyst (and newly minted entrepreneur) Ken Doctor at Nieman Lab.
Gannett is a publicly traded corporation, which means that Reed’s ultimate goal is long-term growth and sustainability — albeit with as little journalism as the company can get away with. Reed hopes to do that by leveraging Gannett’s media holdings with digital marketing subsidiaries the company owns as well as an events business, which is obviously on hold during the COVID pandemic.
If everything works out over time, it is possible to imagine Gannett’s local news outlets staffing up and providing better, more comprehensive coverage than they have in recent years. As good as what would be offered by independent newspapers and websites? Almost certainly not. But any improvements would be welcome.
Alden Global Capital, on the other hand, is a hedge fund. And as best as anyone can tell, the company has no strategy for MediaNews Group beyond extracting as much money as it can for as long as it can. Its Massachusetts papers, the Boston Herald, The Sun of Lowell and the Enterprise & Sentinel of Fitchburg, operate on a shoestring. The Fitchburg office was closed several years ago. The Herald’s office in Braintree was recently shut down as well, although it’s unclear whether that was a temporary, COVID-related move or something permanent.
In Ellison’s Washington Post article, Alden managing director Heath Freeman tried to portray himself as a savior of journalism. “I would love our team to be remembered as the team that saved the newspaper business,” he was quoted as saying. Ellison, though, ran through a list of MediaNews papers across the country that have been so gutted that they have virtually no one to cover the news.
“Don’t buy the idea that Alden is trying to save newspapers. I don’t think any idiot would buy that,” said Dean Singleton, the owner of an earlier iteration of MediaNews Group whose own reputation as a cost-cutter looks benign by today’s standards. Freeman’s retort: “We’ve saved the very newspapers that Dean Singleton ran into bankruptcy, so take his recriminations with a grain of salt.”
Stop me if you’ve heard me say this before, but quality local news can be a key to reviving civic engagement, which in turn could help us overcome the hyperpolarization that defines our culture nationally. According to a recent survey by Gallup and the Knight Foundation, 70% of Americans believe the news media play a “critical” (30%) or “very important” (42%) role “in making residents feel connected to their local community.”
“While national press was perceived by residents of all political backgrounds as distant, privileged, and dismissive of local culture,” she wrote, “it was not uncommon for residents to have first- or secondhand interactions with local reporters. So while participants could identify shortcomings, there was a base-level familiarity and trust.”
Those interactions are important — but they are becoming increasingly rare at the local news organizations being run by Gannett and MediaNews Group. At least there’s some reason to hope that the situation might improve at Gannett. As for MediaNews, a former reporter for the chain, Julie Reynolds, put it this way in The Nation several years ago: “Don’t just blame the Internet for journalism’s decline. Old-fashioned capitalist greed also strangles newspapers.”
The New York Times has published an article about Evan Brandt, the last reporter covering Pottstown, Pennsylvania. His paper, The Mercury, has been decimated by its owner, the notorious hedge fund Alden Global Capital. It’s a great story, beautifully written by Dan Barry, with superb visuals by Haruka Sakaguchi.
And yet the air of inevitability bugs me. Barry offers nostalgia, not hope. I’m not going to suggest that Brandt quit and start his own local news project — he’s in his 50s, has a kid in college and his wife his sick. But why doesn’t the community get together, start a news project and make Brandt the first hire?
Better yet: Why can’t LNP, the newspaper in nearby Lancaster, which is independently owned and reportedly doing well, hire Brandt for a Pottstown edition? Lancaster is probably a bit too far away to justify firing up the printing presses and the trucks. But a digital edition wouldn’t cost much, and would allow them to expand their paid subscription base — much as The Boston Globe did in Rhode Island.
Sarah Ellison of The Washington Post profiles Heath Freeman, the undertaker-in-chief for Alden Global Capital’s MediaNews Group, the worst newspaper chain in the known universe.
Alden is notorious for destroying good newspapers like The Denver Post and The Mercury News of San Jose, and is now making a play for Tribune Publishing, which owns big metros like the Chicago Tribune and The Baltimore Sun. In Massachusetts, Alden owns the Boston Herald, The Sun of Lowell and the Sentinel & Enterprise of Fitchburg.
“I would love our team to be remembered as the team that saved the newspaper business,” Freeman tells Ellison. She follows up with this withering paragraph:
This is what Freeman’s approach to saving the newspaper business looks like in St. Paul, Minn.: A local sheriff blew his budget by $1 million and there was no Pioneer Press reporter available to cover the county board meeting. In San Jose: There was no reporter on the education beat at the Mercury News when the pandemic started closing schools. In Denver: In the aftermath of the 2012 Aurora movie theater mass shooting, the editor was asked to slash staff to improve the next month’s budget numbers. In Vallejo, Calif.: There is exactly one news reporter left at the Times-Herald to cover a community of 120,000 people.
The best thing that could happen for those communities is for MediaNews Group to collapse. The papers would still be there, and they would almost certainly have a brighter future on their own.
Note: Susan Campbell, a Hartford Courant columnist, posted the following on Facebook earlier today, writing, “I am told the Courant is shifting focus to cover the coronavirus and the column I submitted wouldn’t be read, or run this Sunday. So here is the column I wrote.” I contacted her and asked if I could republish it at Media Nation. She gave her permission, and so here it is. Her column has also been republished by #NewsMatters, “a NewsGuild project for Digital First Media workers.” Digital First Media is an earlier name for MediaNews Group, the newspaper chain that Alden controls. — DK
By Susan Campbell
Dear Hartford Courant reader,
Your roof is on fire.
The signs have been there, but you may not be aware of the damage overhead. What you, the reader, sees are a few typos, a missed paper, or someone on the other end of the phone who cannot stop your paper delivery during your vacation. Worse, there’s no one at your local meeting, because when newspapers had more people on staff, they could afford to come to your traffic commissions, town council meetings, and panel discussions.
Nothing just happens, dear reader, but before we explore what’s going on, see if you can figure out this math: Recently, Tribune Publishing Co. announced that the company’s fourth-quarter profit was $4 million. That should be good news, but these days, newsroom blood-letting has moved from paper cuts to full-on beheadings.
And for that, you can thank Alden Global Capital, a New York-based hedge fund, which owns 32% of the Tribune company. Alden is known for one thing and one thing only: Alden kills newspapers. The corporation walks through the battlefield of struggling newspapers (which pretty much describes 99% of newspapers), lifts up the wounded, props them up at a computer, and then methodically sucks up all the resources until there’s nothing left. Their shady business practices — including an accusation that they moved employee pension assets into their own accounts — have earned the notice of the Department of Labor.
The next time you want to complain about your local coverage, remember that you have no idea how hard the dead-last-remainders of America’s newsrooms work to do what they do. They are part of a broken business model, but there is your reporter/photographer/editor, spinning as fast as s/he can.
I know. I was a remainder, until I realized I was so angry at the system I couldn’t exist in it. I left in 2012 when I thought things were pretty bad.
But this isn’t just me, a disgruntled former employee. Last May, some U.S. senators, including Sherrod Brown (husband of Pulitzer-winning newspaper columnist Connie Schultz), Tammy Baldwin and Cory Booker, wrote Alden a letter begging them to abandon their attempted hostile takeover of Gannett because newspapers are a “public good.” Gannett shareholders ultimately rejected the takeover.
Alden’s holdings include The Denver Post, where in December, members of the Denver City Council passed a resolution that called on the company to either invest in the Post or sell it. Alden has been draining the blood from that once-fine newspaper since 2011.
We need that here, in Hartford. We need a concerted effort to save the Oldest Continuously Published Newspaper in the Nation, the newspaper that printed a copy of the Declaration of Independence, and was sued for libel by Thomas Jefferson. We need a full-throated show of support, like that of state Sen. Saud Anwar and others. We, too, need to encourage Alden to put up or shut up. We, too, need wealthy people to invest in local journalism.
Mostly, we need to stop the dangerous trend that threatens our free press. According to the Pew Research Center, post-Watergate, the circulation of daily newspapers peaked in the late ’80s. About that same time, third-generation newspaper families began to lose interest in the family business, while corporations began to notice the healthy profit margins found in the newspaper industry. At a rate that accelerated as we barreled through the ‘90s, more and more newspapers became part of media conglomerates.
If the carnage continues, Alden will kill our newspaper. When that happens, we’re left with news deserts, with our “news” shoveled at us by social media, with its lack of fact-checkers and professionalism. Our information age will suffer from an appalling lack of information.
Passivity is not an option. This is our damn newspaper. This is our damn democracy.
Susan Campbell teaches at University of New Haven, and is the author of several books, including, most recently, “Frog Hollow: Stories From an American Neighborhood.” She can be reached at firstname.lastname@example.org.
UKIAH, Calif. — About 15 people had gathered on the second floor of the Ukiah Brewing Company. The television in the corner was tuned to CNN, and Sen. Bernie Sanders was speaking. This was a pro-Sanders crowd. Nearly everyone stopped what they were doing so they could listen.
Then the band downstairs started playing, and that was the end of that.
I’m here this week learning about The Mendocino Voice, an online news organization started three and a half years ago that is in the process of moving toward a cooperative model of ownership — an innovative step that could help ensure the project’s future. “We are going to be owned by our readers and our staff,” publisher Kate Maxwell told those on hand. “We think that’s the best way to be sustainable and locally owned.”
The Super Tuesday party, which drew a total of 25 to 30 people, was organized by the Voice as a way of bringing the community together to watch not just the presidential results but to find out who had won the primary elections for the Mendocino County Board of Supervisors. There are five supervisors, and three of the seats were contested.
There’s no question, though, that most people were mainly interested in the Democratic presidential primary. Sanders won California easily on a night when the chatter was about former Vice President Joe Biden’s emergence as the clear (though hardly dominant) frontrunner. I was told that Mendocino County, a two-hour drive north of San Francisco, is even more pro-Sanders than the rest of the state. That was certainly true at the Ukiah Brewing Company, where the folks I spoke with expressed their enthusiasm for Bernie over burgers and beer.
“I think the possibility of having a socialist Democrat in the White House is really exciting,” said Rayna Grace, citing Sanders’ “solidarity with the Palestinian people” as well as his support for Medicare for All and for canceling student debt. Her companion, Silver, who declined to tell me her last name, added, “I’m just excited to see a candidate who reflects my radical values.”
Even the only non-Sanders supporter I spoke with said he preferred Sanders to the candidate he actually cast a ballot for — Sen. Elizabeth Warren. “I thought Warren is electable. I don’t know if Bernie is electable,” said John Haschak, a member of the board of supervisors. “Maybe my political calculation is a little off, but we can’t have four more years of Trump.”
Unfortunately for Warren, Haschak’s political calculation turned out to be more than a little off. Warren suffered the worst of what has been a series of bad nights for her, as she came in third in her home state of Massachusetts, behind Biden and Sanders. (WGBH News Senior Political Editor Peter Kadzis breaks down the Bay State results here.) In just a few months, Warren has gone from being the frontrunner to having to do some serious fence-mending with her constituents.
Like many people, I’ve visited California’s urban centers of San Francisco, Los Angeles and San Diego. But this is the first time I’ve been in the rural north. The population of Mendocino County is just under 90,000. Yet, geographically, it’s about two-thirds the size of Connecticut (population 3.5 million) and larger than Delaware (nearly a million).
As is the case in many other places, Mendocino County suffers from a dearth of reliable local journalism. Most of the papers in the county — including The Ukiah Daily Journal, the only daily — were absorbed into the MediaNews Group conglomerate years ago, and have been systemically gutted by the chain’s hedge-fund owner, Alden Global Capital.
Maxwell and Managing Editor Adrian Fernandez Baumann, the Voice’s only full-time staff members, are themselves former MediaNews employees. Though their office — a tiny second-floor room that they rent from a low-power FM radio station — is in the inland city of Ukiah, the county seat, they have positioned the Voice as a county-wide news service. As such, they regularly drive two hours to Fort Bragg, on the Pacific coast, as well as to other parts of the county.
This is weed-and-wine country. The “cannabis economy,” as Baumann calls it, is dominated by so-called back-to-landers, hippies and former hippies who moved to the area in the 1960s. So it’s no surprise that Sanders is the favorite here.
Yes, I did meet a few non-enthusiasts. Before the party, Baumann and I talked with voters outside a polling station at the county offices, where we encountered an older couple who’d cast their ballots for Biden and a volunteer firefighter who’d taken a Republican ballot and voted for President Donald Trump. Overwhelmingly, though, the folks we met had voted for Sanders.
“We’ve been diehard Bernie supporters since the last election,” Moriah McGill told us.
Given Biden’s strong performance across the country Tuesday, it’s no exaggeration to say that voters like McGill, Grace and Silver saved the Sanders campaign. Whether that will be enough to stop Biden is a question for another day.
Can a news organization help to support itself by opening a café, bar and wedding venue? It’s a good question, but here’s a better one: Can such a gathering place lead to the revival of civic engagement and, thus, to renewed interest in local journalism?
The New York Times last week reported on an interesting experiment taking place at The Big Bend Sentinel of Marfa, Texas. The paper was acquired last year by two former New Yorkers, Maisie Crow and Max Kabat, who quickly found themselves facing the challenge of paying the bills in an era of shrinking ad revenues. Their solution was to renovate a former bar and transform it into a newsroom and café. The revenues, Crow said, would be used to expand the Sentinel’s coverage, explaining that “we wanted to expand the potential.”
But at a time when the decline of civic life is leading to diminishing interest in the day-to-day goings-on that are the staple of local newspapers, bringing journalists and the community together in a common space could help remind residents of why news matters. Indeed, Abbie Perrault, the Sentinel’s managing editor, told the Times that the shared space is “a great way to keep my finger on the pulse and get new leads and find stories.”
The Sentinel is offering a fresh take on an idea that nearly got off the ground a decade ago. That’s when Matt DeRienzo, then the 34-year-old publisher of The Register Citizen in Torrington, Connecticut, was opening up his newsroom to the public with the encouragement of John Paton, an innovative executive who was briefly the toast of the newspaper business.
As The New York Times wrote back then, members of the public could visit The Register Citizen’s Newsroom Café for coffee and muffins and to use the paper’s archives for free. “Matt’s taking his audience and making it a colleague,” Paton was quoted as saying. “A building with open doors, with no walls, is the brick-and-mortar metaphor for how the web works.”
DeRienzo was soon named editor of all of the Journal Register Co. chain’s Connecticut newspapers, including its flagship, the New Haven Register. I interviewed him around that time, and he was brimming with ideas. The company sold off its hulking plant by I-95, and DeRienzo began making plans for an open newsroom on the Yale side of the New Haven Green.
Sadly, it wasn’t to be. Journal Register was merged with another chain, MediaNews Group, and the resulting behemoth was dubbed Digital First Media — an ironic moniker that paid tribute to Paton’s oft-repeated mantra, “digital first,” but that soon proved it was dedicated mainly to squeezing out profits for the benefit of its hedge-fund owner, Alden Global Capital. Paton left. DeRienzo left. And the idea of local journalism reinvented around open newsrooms and public participation faded away. (I told the full story of Digital First’s rise and fall in an earlier WGBH News commentary.)
“It elevated the awareness and reputation of the newspaper and the people who worked in the newsroom,” DeRienzo said of the Torrington experiment in a Facebook discussion last week. “It improved transparency and trust with readers. Our audience grew, and our digital revenue grew.”
Nearly a generation ago, the Harvard sociologist Robert Putnam wrote in his landmark book “Bowling Alone” that newspaper readership correlates strongly with civic engagement. People who vote in local elections, take part in volunteer activities, attend religious services or engage in any number of other activities are also more likely to read the paper. “Newspaper readers,” he wrote, “are machers and schmoozers.”
Which brings us back to The Big Bend Sentinel. The local news crisis has multiple causes, technological change and corporate greed being foremost among them. But, fundamentally, it’s also about declining interest in what the school board is up to, whether the city council will approve a new liquor license and other quotidian matters.
News organizations that hope to survive and thrive can’t settle for merely covering civic life — they have to teach their communities the importance of local news so that people will start paying attention and realize that what the mayor is doing is likely to have more of an effect on their families than anything that is taking place in Washington.
Such journalism is sometimes derisively called “eating your broccoli.” So kudos to the Sentinel for reimagining the intersection of journalism and audience engagement more along the lines of a cheeseburger and a beer. And look! Here comes the bride!
Correction: This article has been updated to correct the spelling of the town name of Marfa, Texas.
The devolution of Tucker Carlson. The MIT Media Lab’s entanglement with career sex criminal Jeffrey Epstein. The ever-present threat to free speech. And, above all, the ongoing corporate-fueled crisis afflicting local news.
These are the themes that emerged in my most-read commentaries for WGBH News from the past year. We live in difficult times, and my list might provoke pessimism. But given that four of my top 10 are about the meltdown of local news, I’m at least somewhat optimistic. People really care about this stuff. And that’s the first step toward coming up with possible solutions. So let’s get to it.
10. Whatever happened to Tucker Carlson?(March 12). When Fox News talking head Tucker Carlson began his journalistic career in the mid-1990s, he built a reputation as a smart, unconventional conservative, a stylish writer and (as I can attest) a charming lunch companion. Today he is a racist, sexist hate-monger and a full-throated apologist for President Trump. What happened? Although I can’t read Carlson’s mind, it would appear that he values fame and fortune over principle. In that sense, Carlson is a metaphor for nearly the entire conservative movement, with the few conservatives of conscience having been exiled to #NeverTrump irrelevance.
9. Corporate newspaper chains’ race to the bottom (Jan. 16). One year ago, the cost-slashing newspaper chain Gannett was fighting off a possible takeover by Digital First Media (now MediaNews Group), owned by the hedge fund Alden Global Capital and generally regarded as the worst of the worst. Gannett avoided that grim fate. But by the end of the year, Gannett had merged with another bottom-feeder, GateHouse Media. The first order of business: Cutting another $400 million or so from papers that had already been hollowed out, including titles that serve more than 100 cities and towns in Eastern Massachusetts and Rhode Island.
8. The move from no-profit to nonprofit journalism (May 15). A brief period of hope greeted Paul Huntsman after he bought The Salt Lake Tribune in 2016. Instead, the cutting continued, as Huntsman discovered that 21st-century newspaper economics were more of a challenge than he’d imagined. Then, last spring, he announced that he would seek to reorganize the Tribune as a nonprofit entity. Several months later, the IRS approved his application. Nonprofit ownership is not a panacea — the Tribune still must take in more money than it spends. But by removing the pressure for quarterly profits and keeping the chains at bay, Huntsman might point the way for other beleaguered newspaper owners.
7. Fact-checking and the dangers of false equivalence (Sept. 18). We have never had a president who spews falsehoods like President Trump. Much of what he says can be chalked up to old-fashioned lying; some of it consists of conspiracy theories from the fever swamps of the far right that he might actually believe. Fact-checkers at The Washington Post, CNN, PolitiFact and other news organizations have diligently kept track, with the Post reporting several weeks ago that Trump had made more than 15,000 “false or misleading claims” during his presidency. Yet the media all too often remain obsessed with balance in this most unbalanced of times. And thus Democratic presidential candidates, including Bernie Sanders and Joe Biden, are inevitably held to a higher standard, being branded as liars for what are merely rhetorical excesses or even disputed facts.
6. Yes, millennials are paying attention to the news (July 24). Millennials are often, and wrongly, caricatured as self-absorbed and caring about little other than where their next slice of avocado toast is coming from. It’s not true. A study by the Knight Foundation, which surveyed 1,600 young adults, “shows that 88 percent of people ages 18-34 access news at least weekly, including 53 percent who do so every day.” The findings matched what I’ve seen in many years of teaching journalism students: they’re dubious about the news as a curated package, but they’re well-informed, highly quality-conscious and not wedded to the notion of loyalty to specific news brands. Can we put them in charge now, please?
5. Stop letting Trump take up residence inside your head(Jan. 2). I kicked off 2019 with a list of five ideas for de-Trumpifying your life. Unfortunately, the president’s bizarre, hateful rants and policies can’t be ignored completely — but surely we can save our outrage for his truly important outbursts. Looking back, I think my best piece of advice was to pay more attention to non-Trump news, especially at the local level. We live in communities, and making them work better is a great antidote to our dysfunctional president.
4. Post-Jeffrey Epstein, some questions for the MIT Media Lab (Sept. 11). Joi Ito, a celebrated star in the media world, was forced to resign as director of the MIT Media Lab after his modified limited hangout about his financial entanglements with serial rapist Jeffrey Epstein, who committed suicide while in jail, turned out to be far more extensive than he had originally admitted. That, in turn, brought the Media Lab itself under scrutiny. In the post-Ito, post-Epstein era, questions remained about exactly how dependent the lab had become on Epstein’s money — and whether it was really producing valuable work or if some of it was smoke and mirrors aimed at impressing its mega-wealthy funders.
3. Don’t blame the internet for the decline of local journalism(Nov. 27). Following yet another round on academic Twitter arguing that we need new forms of journalism in response to the damage that the internet had done to local news, I was mad as hell and couldn’t take it anymore. Yes, technology has done tremendous harm to the business model that traditionally paid for the news. But equally to blame is the rise of chain ownership intent on bleeding newspapers dry before discarding them and moving on. From Woburn, Massachusetts, to New Haven, Connecticut, independent local news organizations are thriving despite the very real economic pressures created by the rise of Craigslist, Google and Facebook. Local news isn’t dying — it’s being murdered by corporate greed.
2. Calling out New England’s enemies of free expression (July 2). Since 1998, I’ve been writing an annual Fourth of July round-up of outrages against the First Amendment called the New England Muzzle Awards. For many years, the Muzzles were hosted by the late, great Boston Phoenix. Since 2013, they’ve made their home at WGBH News. The 2019 list included school officials in Vermont who tried to silence the high school newspaper (and lost) and a police chief in Connecticut whose officers arrested a journalist during a Black Lives Matter protest to prevent her from doing her job. And don’t miss the 2019 Campus Muzzles, by Harvey Silverglate, Monika Greco and Nathan McGuire, which focus on free-speech issues on college campuses.
1. GateHouse decimates its already-decimated newspapers (June 5). As I noted above, the Gannett newspaper chain managed to fend off the depredations of Alden Global Capital. But Alden, Gannett and GateHouse Media danced around each other all year. In the spring, GateHouse, already known for taking a bonesaw to its newspapers, eliminated about 170 positions at its papers nationwide and merged 50 of its smaller weeklies in Greater Boston into 18, a surefire way to undermine customer loyalty to the local paper. “We remain positive about the future for local media but certainly acknowledge that the business model for community news is under pressure,” GateHouse CEO Kirk Davis told me. But by year’s end, GateHouse had merged with Gannett, Davis was gone — and the cutting continued.
So what will 2020 bring? Call me crazy, but I think we’re going to see some good news on the local-journalism front. As for what will happen nationally, I think I can safely predict that the political press will continue to focus on polls and campaign-trail controversies at the expense of substance, continuing a trend documented recently by my colleagues Aleszu Bajak, John Wihbey and me at Northeastern University’s School of Journalism.
Finally, my thanks to WGBH News for the privilege of having this platform and to you for reading. Best wishes to everyone for a great 2020.
The news from MediaNews Group (formerly known as Digital First Media) just gets worse and worse. Jim Clark writes that not only has he been laid off from his position as a sports copy editor at the Boston Herald, but that the Herald is “eliminating its copy desk positions.”
Meanwhile, Julie Reynolds, the go-to source for all things MediaNews, reports for The Intercept that the chain — owned by the hedge fund Alden Global Capital — is moving in the direction of outsourcing its page-design jobs overseas and covering high school sports with artificial intelligence.
“Now it’s outsourcing California news design to the Philippines, paying pennies on the dollar for work that once employed professionals who lived in the communities they served,” Reynolds writes.
The Washington Post reports some startling figures about the role of private equity firms in the retail business. According to the Post’s Abha Bhattarai:
More than 1.3 million Americans have lost their jobs in the past decade as a result of private equity ownership in retail, according to a report released Wednesday. That includes 600,000 retail workers, as well as 728,000 employees in related industries. Overall, the sector added more than 1 million jobs during that period. [my emphasis]
This is exactly what has happened to the newspaper business over the past several decades. Yes, the internet has devastated the economic model, with advertisers fleeing to Craigslist, Google and Facebook. But that’s only part of the story. The other part is that corporate chains have hollowed out newsrooms in order to maximize profits at a time when what was really needed was investment and patience.
The most notorious of the corporate raiders is MediaNews Group, formerly Digital First Media, which is owned by Alden Global Capital. MNG has all but destroyed once-great papers like The Denver Post and The Mercury News of San Jose, as U.S. Sen. Elizabeth Warren notes in her proposal to re-regulate Wall Street. Cuts continue at MNG’s Massachusetts holdings, the Boston Herald, The Sun of Lowell and the Sentinel & Enterprise of Fitchburg. Meanwhile, The Berkshire Eagle is rebuilding after a group of local business people bought the paper back from MNG.
For years we’ve been hearing that Amazon is destroying retail — yet, as the Post observes, that part of the sector not being strangled by private equity has continued to grow. Newspapers’ business problems are very real. But surely they would be shrinking a lot more slowly, and perhaps groping their way toward sustainability, if they weren’t being destroyed by our financial overlords.