Stat makes a ‘sensational’ hire, luring Matthew Herper from Forbes

Matthew Herper (via LinkedIn)

Stat, one of Boston Globe owner John Henry’s other media properties, is making a big move. Editor Rick Berke announced today that the health-and-life-sciences news organization is hiring Matthew Herper, a veteran Forbes reporter whom Berke describes as “sensational,” not to mention “supremely talented, versatile and deeply sourced.”

I sometimes describe Henry’s five years of ownership as throwing stuff against the wall to see what will stick. Some ideas, like Crux, launched to cover the Catholic Church, slid onto the floor, though it continues to do well under different ownership. Stat is one of the ideas that has stuck. The project was launched in 2015 with nearly 40 full-time journalists. It’s a bit smaller today (Berke puts the number at around 30), but it appears to be doing reasonably well.

During the past couple of years the emphasis at Stat has been on paid content, a $300-a-year subscription-based model known as Stat Plus. Revenue, Berke told me in an email, is 20 percent ahead of projections. “We’re not breaking even but closer and closer to profitability,” he said. According to Angus Macaulay, Stat’s chief revenue officer, the site is aiming for 10,000 paid subscribers by the end of 2019, and “we’re ahead of that timeline.”

Like Stat, the Globe itself is smaller than it was when Henry first bought it. But Henry continues to invest, if not necessarily on the scale of giving $68 million to Nathan Eovaldi so that he’ll stay with the Red Sox, one of Henry’s other holdings. The Globe is currently restocking its Washington bureau after losing several top people to The Washington Post and The New York Times, Michael Calderone recently reported in Politico. That’s not necessarily where I’d put my money (if I had money). But Globe editor Brian McGrory said at a conference last year that national politics drives readership and paid subscriptions.

In the early days of Stat, there was a lot of coverage aimed at a general audience — and, in fact, stories from Stat still migrate to the Globe on a fairly regular basis. But the paid Stat Plus model means that the site is increasingly targeting health-care professionals. The Herper move sounds like a smart way to appeal to that audience.

The full text of Berke’s message to his staff follows.

I could not be more excited to announce that we have a sensational new colleague: Matthew Herper.

Many of you are familiar with Matt’s work. Over the past 18 years at Forbes, he has distinguished himself as a supremely talented, versatile and deeply sourced reporter with a loyal readership across the health care and science communities. His first cover (with Bob Langreth) was “How the Drug Industry Abandoned Science for Salesmanship.” He went on to write 16 more covers, ranging from a deep look at breakthrough cancer immunotherapies to an early assessment of the potential impact of Bill Gates on vaccine development. This past summer, in one of his most moving recent projects, Matt gave readers an intimate window into the life of Michael Becker, a biotech executive facing end-stage cancer.

Matt also holds the journalistic distinction of having interviewed Elizabeth Holmes and Martin Shkreli on stage the very same day. (That was in their halcyon year.)

For our team of journalistic powerhouses, there is no better recruit. Matt’s interest in revelatory and compelling stories is naturally suited to STAT. He sees himself as writing and reporting from the perspective of a bench scientist, focusing on the researchers who create or study tomorrow’s medicines. He also has a knack for getting some of the most influential names in the life sciences industry to talk with him.

Beyond Matt’s journalistic heft, I see his joining us as a critical step in further ensuring our business success. Presumptuous as it may be, our objective is very clear: to corner the market on smart, must-read journalists writing about health, medicine, and science.

STAT Plus is already growing beyond our projections, and we’re confident that Matt will help us accelerate the expansion of our core business of paying subscribers and sponsors. In addition, Matt will be our point person on the editorial staff as we build out our events business.

Matt’s title will be Senior Writer, Medicine. Like Ed and Damian, he’ll be based in New York. But he has family in the region, and we’ll encourage him to work from HQ as much as he’d like.

Lastly: Matt’s interest in joining us is a testament to our groundbreaking journalism and the business that we have built. One of our biggest draws, he said, is that he’ll get to work with reporters whose work he has admired for years.

“For years, I’ve been saying this is biology’s century,” Matt told me. “Nobody has been covering that giant story better than STAT. I can’t wait to join this amazing team and see what we can do together.”

We can’t wait either. Matt starts in two weeks.

Please welcome our new colleague.

Rick

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The shrinking Globe pursues funding alternatives for accountability journalism

For local and regional news organizations, nothing is more expensive — or more important — than investigative journalism aimed at holding government and other large institutions to account. Despite the economic challenges that continue to shrink the newspaper business, The Boston Globe continues to provide a steady stream of such stories. And over the past few days, the paper demonstrated the results of two innovative ways to fund such reporting.

First, on Saturday, the Globe published a major update on how Catholic bishops have failed in their response to the sexual-abuse crisis. The story, which appeared in print on Sunday, was reported and written by a team of journalists from the Globe and The Philadelphia Inquirer, with funding from the Lenfest Institute for Journalism. The institute, a nonprofit organization, owns the Inquirer and two sister media properties, the result of a gift from the late Gerry Lenfest in 2016. (I wrote about Lenfest’s legacy for the Globe after his death in August.) Here is how the Globe describes the partnership:

Boston and Philadelphia have been ground zero for the Catholic clergy sex abuse scandal — both cities have endured years of church investigations, allegations, prosecutions, and lasting scars. Now, amid a rising tide of revelations about misconduct by US bishops, the Inquirer and Globe pooled their resources for a deeper look at the crisis. Reporters from the two newsrooms visited nine states, conducted scores of interviews, and reviewed thousands of pages of court and church records to produce this report. Funding for the effort came from the Lenfest Institute for Journalism.

Then, today, the Globe published a story by Jana Winter on attempts by hackers to penetrate voting systems across the United States. Fortunately, her reporting shows that officials are well aware of those attempts and that they appear to be on top of it. Equally interesting, though, is that Winter is the Globe’s Spotlight Fellow — a program funded by Participant Media, which produced the movie “Spotlight.” The fellowship, according to the online description, provides “awards up to $100,000 for one or more individuals or teams of journalists to work on in-depth research and reporting projects.”

As if to underscore the need for alternative funding for accountability journalism, the Globe unveiled a shrunken business section on Sunday, moving innovation columnist Scott Kirsner to Monday.

Kirsner’s column was usually the main event in the Sunday business section. Given that it will continue, this isn’t too much of a loss. But it does show that the Globe’s finances remain precarious, as publisher John Henry admitted when I interviewed him during the summer for WGBH News:

The Globe cannot ever seem to meet budgets — on either the revenue side or the expense side and I am not going to continue that. This has always been about sustainability rather than sizable, endless, annual losses. That is frustrating and due to a combination of mismanagement and a tough industry.

In such an economic environment, it’s essential that the Globe find new ways to pay for what really matters.

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The Globe hits a digital benchmark — and finds a new art critic in Toronto

Murray Whyte (via LinkedIn)

A couple of good-news items from The Boston Globe.

First, the paper is reporting that it has passed the 100,000 level for digital-only subscriptions, a benchmark the paper’s executives had originally hoped to reach by the end of June. Don Seiffert of the Boston Business Journal has the details.

When I interviewed Globe editor Brian McGrory for “The Return of the Moguls” nearly two years ago, he said the paper would start to look like a sustainable business if it could hit 200,000. My mother always told me that the first 100,000 is the hardest. But the Globe’s digital presence is in the midst of getting an upgrade as it adopts The Washington Post’s Arc content-management system this fall. If the Arc transition goes smoothly, then perhaps another circulation boost will follow.

Second, the Globe is announcing today that it has finally replaced Pulitzer Prize-winning art critic Sebastian Smee, who left for the Post nearly a year ago. The Globe’s new critic is Murray Whyte, currently at The Star of Toronto, whose arrival in Boston, I’m told, was delayed because of immigration issues.

In an email to the Globe’s staff, deputy managing editor for arts and newsroom innovation Janice Page and arts editor Rebecca Ostriker call Whyte “a truly extraordinary writer” who “brings a unique combination of keen insight, wide-ranging expertise, superb judgment, and an ability to recognize and write about what really matters.” The full text of their message follows.

We are delighted to announce that Murray Whyte is joining the Globe as art critic, starting next month.

Murray was born in Winnipeg and grew up partly in Calgary, and he will completely understand if you have no idea where those places are (directly north — way north — of Minnesota and Montana, respectively). He’s spent the better part of two decades in Toronto, and the last 10 of those as the art critic at the Toronto Star, Canada’s largest daily newspaper, where he is a recent winner of Canada’s National Newspaper Award, the country’s highest journalistic honor.

As Globe readers will soon learn, Murray is a truly extraordinary writer. He brings a unique combination of keen insight, wide-ranging expertise, superb judgment, and an ability to recognize and write about what really matters. He does not focus on art for art’s sake, but rather connects art to what can make a difference to people living in the world — to society, to ideas, to our culture as a whole.

Murray’s eclectic background also extends beyond arts journalism, including a stint as a producer with the Canadian Broadcasting Corporation. In fact, he may be the only journalist in North America who has reported from the oil sands in northern Alberta and Uranium City in Saskatchewan as well as the Venice Biennale.

But the visual arts have always been in his bones. As a journalism graduate student at New York University, his refuge was the Museum of Modern Art, where he could exult in the stillness of Mark Rothko or the luminescence of Claude Monet. Art museums, he says, are his version of a walk in the woods — a rejuvenating, almost transcendent communion with the sublime.

He’s also a huge hockey fan — another kind of sublime — and would appreciate any spare tickets when the Calgary Flames come to town, because surely, he says, there can’t be anyone else here as interested in the progress of Dillon Dube on left wing this year. Can there?

Murray will be making his home in the Boston area with his wife, photographer Sian Richards, and their two children. He’ll arrive at the Globe in mid-November. Please join us in giving him a very warm welcome.

Janice and Rebecca

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A few preliminary thoughts on The Boston Globe’s new Arc-powered app

Following a soft launch, The Boston Globe today is going public with its new app for tablets and phones, powered by Arc, The Washington Post’s content-management system. I’ve been playing with it since Tuesday, and I have a few very preliminary observations.

— It’s fast and attractive in a Post kind of way. The icon for the app is a white “B” on a black background, and the look and feel are similar to the Post’s black app. Stories load quickly, pictures are big and the type size can be easily adjusted.

— The organizational scheme is intuitive and makes sense. Across the top is a navigation bar that lets you choose from among Top Stories, Sports, Metro and the like. One of the choices is Marijuana, a hint of the paper’s expanded coverage of all things pot that is said to be in the works. Click on “Sections” at the bottom and you can drill down to more specific coverage. Again, this will be familiar to Post readers.

— Unlike virtually any news app I’ve ever used, you can’t swipe from one story to the next. Instead, you have to click the back arrow to return to whatever section you’re browsing. Stories load quickly enough that this amounts to a minor annoyance, not a major one. But it needs to be fixed.

— Stories appear in seemingly random order, even in the Top Stories section. As I scroll through the section right now, I see a few news stories followed by some sports, then back to news, then some more sports. The Top Stories sections of the best newspaper apps — those offered by the Post and The New York Times — are divided into sections and have a curated feel to them. The Globe needs to do better.

— As with the Post, there is no Today’s Paper listing of stories. That’s actually one of my favorite features of the Times’ app, since I might read a few stories on my way to work and then pick it up later during the day. A newspaper as a fixed record of the day’s most important events may seem old-school, but stories you might want to read tend to disappear from continuously updated apps. There’s a Today’s Paper listing at the Globe’s website, which works fine on a phone, even if it’s slow. I’d like to see that migrate to the app as well.

Based on first impressions, I’d give the Globe’s app a “B.” Given that the Globe’s owners, John and Linda Henry, have bet the farm on selling pricey digital subscriptions (currently just shy of 100,000), the tech side ought to keep working and get it into the “A” range. There’s a lot to like, a few things that need to be improved and one shortcoming — the inability to swipe from story to story — that is just plain unacceptable.

Update: A Facebook commenter says that you can swipe with the Android version. I’m an iOS user. But that suggests the problem won’t be too difficult to fix.

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It’s 1974 all over again: For the Globe, Trump’s angry words have consequences

Entrance to the lobby of the Globe’s former plant in Dorchester. Photo (cc) 2012 by Dan Kennedy.

Early Monday morning, a gunman fired one shot through the plate glass window of the plant’s lobby facing Morrissey boulevard, narrowly missing a security guard, and three more shots through the plate glass windows of the press room. No one was injured.

— The Boston Globe, Oct. 8, 1974

Angry words have consequences. Nearly 44 years ago, The Boston Globe came under attack because of white racism, fueled by anti-integration activists who were furious at the Globe’s sympathetic coverage of and editorial support for court-ordered desegregation.

In addition to the shots that were fired at the Globe on two separate occasions (possibly by the notorious killer James “Whitey” Bulger), the Globe was beset by a violent demonstration in front of the plant as well as vandalism. At one point, gun-wielding youths forced a driver out of a Globe delivery truck, whereupon they pushed it into Fort Point Channel. All of this is described in J. Anthony Lukas’ “Common Ground” (1985), possibly the greatest book ever written about Boston.

What brings this history to mind, obviously, is a death threat made against the Globe following the Globe’s campaign to persuade newspapers across the country to editorialize against President Trump’s anti-press rhetoric. (Ultimately more than 400 papers joined in.) The suspect, a Trump supporter named Robert Chain, reportedly referred to the Globe as “the enemy of the people,” thus quoting his hero’s oft-tweeted characterization word for word.

Fortunately no one was hurt, just as the anonymous shooter or shooters in 1974 somehow didn’t injure or kill anyone. But Trump’s dangerous words add up to incitement to violence — not in the legal sense, perhaps, but certainly in the moral sense. Our president is a careless and evil man.

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Some thoughts on The Boston Globe’s Shirley Leung appointment

Shirley Leung via LinkedIn

The choice of Shirley Leung to run The Boston Globe’s editorial pages on an interim basis is an interesting one. The paper’s top two editors — the editorial-page editor and the editor of everything else — have traditionally held fairly low-profile positions before their appointment, at least in terms of their public profile. But Leung, a business columnist (and former business editor), is one of the Globe’s most high-profile personalities.

In that respect, the choice of Leung resembles the elevation of Brian McGrory to the top of the masthead in 2012. Unlike his predecessors, McGrory wrote a widely read metro column. At a time when newspapers can hardly afford to give up features that draw readers, that was a significant loss. Likewise, Leung’s column will be missed unless the Globe is able to find a suitable replacement. We can all hope that Leung finds the time to write under her own byline at least occasionally, but that’s going to be tough.

As a columnist, Leung is a provocateur who seems to enjoy taking controversial stands — most notably, advocating for the Olympics to come to town. There’s nothing wrong with an editorial-page editor who likes to think counterintuitively. But she’s now going to have to express her opinions as part of a team that includes the editorial board as well as owners John and Linda Henry.

Leung’s predecessor, Ellen Clegg, who retired last week, served a long time as the interim before finally being named to the job. Clegg led the pages through some significant accomplishments: a redesign of the print section that allowed her to cut the number of unsigned editorials from the traditional three per day to (usually) one; innovative editorial projects on gun violence and other topics; new voices such as Michael Cohen, Renée Graham, Niall Ferguson and Richard North Patterson; and an uptick in web-only content. Leung has large shoes to fill, but my guess is that she’s being groomed as the permanent replacement once her six-month interim stint is up. (Disclosure.)

It’s also interesting that Leung’s appointment comes just after deputy editorial-page editor Marjorie Pritchard led a nationwide campaign to persuade newspapers to editorialize against President Trump’s anti-press rhetoric. Ultimately more than 400 papers signed on. Which means that Leung will be even more closely watched than might have otherwise been the case.

Best wishes to Shirley. The full text of the Globe’s press release is below.

SHIRLEY LEUNG NAMED INTERIM EDITORIAL PAGE EDITOR

August 20, 2018, The Boston Globe Boston, MA – The Boston Globe announced today that starting August 27th, Shirley Leung will assume leadership for the Editorial Board for the next six months and will be named the interim Editorial Page Editor.

Leung has been a bold voice in Boston. For the past five years, she wrote an impactful, must-read, often counterintuitive column in The Globe’s business section. Prior to that, Leung served as The Globe’s business editor overseeing coverage of the Great Recession. Her experience brings a deep understanding of the business community and connection to the newsroom that will help lead transformation across the organization. Leung will be the fifth woman in The Globe’s 142-year history to hold this position, and the first person of color to do so.

In naming Leung, Linda Henry, The Globe’s Managing Director, said “We need the strength of a courageous thinker, someone who knows both the newsroom and the world of opinion well, and who knows how to challenge assumptions, and while I am reluctant to lose her column, I could not be more excited about this new role for her. “ Henry added, “I am proud of the board’s progress and bold initiatives, and look forward to the board becoming an even more vibrant voice serving our community locally and nationally.  We want to make certain that we take our time to think strategically about the board, who the next permanent leader will be, and how it will be organized.”

Prior to the Globe, Leung spent six years at the Wall Street Journal. A graduate of Princeton University, Leung started her career at her hometown paper, The Baltimore Sun.

“The Globe’s editorial board last week spoke loudly and with purpose with its #FreePress initiative driving a national conversation on the role of journalism,“ said Leung. “I am proud and humbled to take on this new post and have my voice join theirs.”

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Why the Globe is leading a nationwide push to counter Trump’s anti-press rhetoric

Pro-Trump rally in Washington. Photo (cc) 2017 by Ted Eytan.

Previously published at WGBHNews.org

Consider the humble newspaper editorial. Unsigned and often unread, these gray exercises in cautious chin-stroking — representing as they do the theoretically awesome power of the institution — assert, applaud, deplore, and urge. But only rarely do they leap off the screen or page and grab the reader by the throat.

For the past several years, though, The Boston Globe’s opinionators have been trying desperately to break free from that swirling vortex of irrelevance. A satirical front page imagining a Trump presidency drew applause, moans, and brickbats. More successfully, the paper published several digital editorials about gun violence that incorporated interactive data presentations and online tools for contacting elected officials. (Here’s the most recent example.)

Now the Globe has embarked on its most audacious campaign yet: a call for newspapers across the country to publish editorials this Thursday condemning President Trump’s repeated assertions that journalists are “the enemy of the American people” and purveyors of “fake news,” an outrageous tactic that has led to threats against reporters at Trump rallies. More than 200 papers have signed on so far. “This dirty war on the free press must end,” the Globe said in announcing the coordinated effort, which you can follow on Twitter at #EnemyOfNone.

The idea originated with Marjorie Pritchard, the Globe’s deputy editorial-page editor. She told me by email that she brought it up at a meeting of the editorial board (journalists who work for the opinion section) and got the go-ahead to begin contacting the editorial boards of other newspapers. Given the difficulty of changing anyone’s minds in this era of hyperpolarization, I asked her whether she thought the effort could truly make a difference. She took the optimistic view.

“This effort is an attempt to break through sides and remind everyone of the importance of a free press, no matter what their political preference is,” she said. “A free and independent press is one of the most sacred principles enshrined in the Constitution. It must remain so.”

The newspapers taking part will each write and publish their own editorials. “The impact of Trump’s assault on journalism looks different in Boise than it does in Boston,” Pritchard wrote in announcing the campaign. “Our words will differ. But at least we can agree that such attacks are alarming.” That should at least partly counter any claims made by Trump supporters that the mainstream media are marching in lockstep with the Resistance to drive the president out of the White House. Still, there is a certain predictability regarding who’s for it and who’s against it.

In addition to the 200-plus newspapers that have responded to the Globe’s call, organizations such as the New England Newspaper and Press Association and the American Society of News Editors are lending their support. Last Friday on WGBH-TV’s “Beat the Press,” Tom Fiedler, the dean of Boston University’s College of Communication, gave the idea a hearty “rave.” For press advocates, the campaign is an opportunity to stand up for First Amendment values in the face of president who seeks to delegitimize journalism in the eyes of his followers.

But Trump-supporting media outlets have mocked the effort as the usual drivel from the usual suspects. “This is just another day at the office,” wrote Karen Townsend at Hot Air. “The press has never supported President Trump and both print and television network coverage has been grossly skewered [sic] negatively against him.” Over at Breitbart, John Nolte called the Globe a “far-left” outlet and, not surprisingly, turned the very fact that newspapers are working together on its head. “The bottom line,” Nolte said, “is that this coordinated attack coming from all corners of the establishment media only serves to validate the criticism coming from Trump and other media critics.”

In a sense, the effort is a perfect illustration of the dilemma facing the press right now. On the one hand, mainstream news organizations are attracting more subscriptions, donations, and readers. On the other hand, that increased interest is almost entirely restricted to opponents of Trump, as his supporters have gravitated to their own media ecosystem dominated by Fox News and Breitbart.

As someone who has written my share of unsigned editorials over the years, I doubt that more than a handful of hearts and minds are going to be changed on Thursday. But that doesn’t mean it’s not worth doing. Journalism is under siege. Last week, incredibly, a new poll showed that 43 percent of Republicans believe the president should have the authority to shut down “news outlets engaged in bad behavior.”

It’s time for us to stand up for our values and to remind the public of what the First Amendment is all about. What we’re not: perfect. What we are: an independent monitor of power, the absence of which would make this fraught moment infinitely worse.

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How Gerry Lenfest morphed from reluctant publisher into a savior of journalism

Gerry Lenfest, second from left, in 2009. Photo by the Library Company of Philadelphia.

Previously published by the Boston Globe.

H.F. “Gerry” Lenfest didn’t want to run a newspaper. In 2014 the Philadelphia billionaire, who died last week at the age of 88, unexpectedly won an auction to buy the city’s paper of record, the Inquirer, and its sister properties, the Daily News and Philly.com, media outlets that he already owned in part and was hoping to unload. “He did not expect to have to write a check that day,” Joel Mathis, a former reporter for Philadelphia magazine, told me. “He thought he was going to be getting a check that day.”

Just a few weeks later, Lenfest’s business partner, Lewis Katz, was killed in a plane crash along with six others, leaving Lenfest as the sole, unhappy proprietor. Lenfest’s solution to his dilemma was an act of generosity that continues to reverberate, and that could serve as a possible blueprint for saving the shrinking newspaper business. In early 2016 he donated the properties to a nonprofit organization, the Philadelphia Foundation. And he endowed the institute that the foundation set up to run the properties — now known as the Lenfest Institute for Journalism — with an initial $20 million from his fortune.

“Of all the things I’ve done, this is the most important. Because of the journalism,” Lenfest said when the complicated transaction was announced.

As it happened, I had already scheduled interviews with a number of Philadelphia journalists for a book project. I arrived on the Amtrak in the aftermath of a monumental snowstorm. What I encountered was a warm sense of (to invoke a cliché) cautious optimism.

Bill Marimow, the respected editor who had been fired or demoted twice through years of musical-chairs ownership, was particularly enthusiastic about the structure Lenfest had set up. Though the three properties would be owned by a nonprofit, they would be run as a for-profit “public-benefit corporation,” which meant that they would not be legally required to serve the financial interests of shareholders or investors.

“There’s parity between the mandate to do great journalism and the mandate to have an economically viable business,” Marimow said. “But the priority is no longer maximizing profits. It’s having sufficient profits to keep producing good journalism.”

These days, of course, there’s no guarantee that newspapers will have the resources to cover the communities they serve even without the pressure to turn a profit. Newspaper advertising, both in print and online, plunged from a high of $49.4 billion in 2005 to an estimated $16.5 billion in 2017, according to the Pew Research Center. Full-time newsroom employment fell by nearly half during roughly the same period.

Here and there a few wealthy newspaper owners are trying to figure out ways to revive their struggling businesses. Jeff Bezos’s efforts at The Washington Post are the best-known, but he runs what he has repositioned as a national digital news organization. The economics of large regional papers like the Inquirer are very different — and much more difficult. For every paper like The Boston Globe, where billionaire owner John Henry has attempted to minimize newsroom cuts while figuring out a path to sustainability, there are dozens owned by hedge funds and corporate chains that have plundered their newspapers in order to squeeze out their last remaining profits.

The nonprofit/for-profit hybrid model that Lenfest set up in Philadelphia is not a panacea. Ultimately, the papers still have to break even, an enormous challenge in the current environment. Still, the Philadelphia experiment has brought stable ownership, community-minded oversight and a journalism-first mindset to the Inquirer and its sister properties after years of chaos. That is a commendable legacy — and one worth emulating elsewhere.

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Stat is up and Design New England is out: A message from the Globe’s president

A source sent this to me a little while ago. It’s a message from Vinay Mehra, the president and chief financial officer of Boston Globe Media. Not a lot of news here. For my money, the most interesting revelations are that Stat, the company’s health and life-sciences vertical, continues to grow, and that Design New England magazine has been discontinued. (Confession: I’m not sure I’ve ever seen an issue.)

For more on the Arc content-management system and the latest on the Globe’s digital subscriptions, see the email interview I did with publisher John Henry last week for WGBH News.

The full text of Mehra’s message follows.

Team,

Happy summer! As we go into the second half of the year, the Senior Leadership Team and I would like to share with you where things stand midpoint of this year. Here are some highlights:

  • The newsroom continues to hit it out of the park. The Spotlight Team was a finalist for the Pulitzer Prize for a series on race that spurred an unprecedented conversation in this region. Our recent TSA piece has made waves nationally. Day in, day out, there is uniquely compelling journalism on our site and print pages, including the launch of the latest reader advocacy initiative, the Help Desk.
  • We continue to invest in the future of the Globe. Our latest investment in our digital future is ARC, our new publishing platform that will result in the redesign of our Globe.com website, and the launch of an ioS and Android Boston Globe app in August. There has been great collaborative work across the company to get to this point, and I am grateful for everyone’s help.
  • We have been disciplined on reducing costs, from ensuring we establish a robust contract management process to more tightly managing expenses, and continue to push ourselves on creating new revenue opportunities and exploring new ways to meet readers where they are, leveraged by our entrepreneurial spirit.
  • While advertising sales continues to experience industry disruption, we are excited about the potential of BG BrandLabs and sponsored content — we have completed 21 customer campaigns since the beginning of the year and have 14 more in our pipeline. Leading companies across the region appreciate and seek out partnerships with us and we will continue to build on that momentum.
  • Subscription revenues are on budget with our digital subscriber base over 94,000, putting us #1 among U.S. major metros in terms of total digital subscription revenue. With Pete [Doucette]’s departure, I have made the decision to conduct a search for a new head of consumer revenues, and I am pleased with the initial results of the search and the caliber of candidates who are interested in the role.
  • After months of negotiation, we have an agreement with the Pressman, Mailers and the Drivers unions. We appreciated the partnership with the bargaining committees and these new contracts give us the flexibility we need to continue to meet the needs of the market and industry.
  • We made the difficult but necessary decision to discontinue publishing Design New England magazine in order to redirect resources into our growth.  This was hard news for our colleagues affected by the change, but we were transparent with the decision making process and explored all options before coming to this decision.
  • STAT, our bold life sciences initiative, continues to see impressive growth – year over year growth in advertising by 59% and growth in subscribers by 308%.

The constant change we are experiencing is what it feels like to be in transformation, and frankly, it will continue. While it is no doubt challenging to navigate in a business as dynamic as ours, I can tell you that we are not alone in this challenge and I believe that our organization will be positioned for success. Since starting at the Globe, I have spent a lot of time out in the field speaking with CEOs in the greater Boston area, familiarizing myself with the unique perspectives within the region and forging relationships that will ultimately allow our organization to help tell the incredible stories of growth, disruption and innovation in our backyard. The good (and bad) news is that I hear the exact same set of challenges in all of these discussions. Everyone, in every industry, is experiencing the very real ups and downs of transformation. The key for us is to stay focused on why we do the work we do, because what I also hear in these conversations is that we, the Globe, are critical to this city.

Success will require that all of us — and particularly the Senior Leadership Team — work across boundaries as one Boston Globe and in harmony with our partners. In the coming month, the Senior Leadership Team and I will be engaging in a strategic planning process to determine our plans for long-term growth.  Expect to hear more from us after some of that work is done.

Finally, I truly believe that each of us must find meaning in our work. The best work happens when you know that it’s not just work, but something that will inform and improve other people’s lives. This is the opportunity that drives each of us at this company.

Thank you for your ongoing support and hard work. I recognize we wouldn’t be where we are without the contributions made by each and every one of you.

Vinay

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Despite ongoing losses, John Henry insists that The Boston Globe is not for sale

Photo (cc) 2018 by Dan Kennedy.

Previously published at WGBHNews.org.

John Henry isn’t selling.

Nearly five years after the billionaire financier announced that he would buy The Boston Globe, there’s a low but persistent buzz within the city’s media and political circles that Henry is tired of losing money and looking to get out. But Henry, who is also the principal owner of the Red Sox, insists there’s nothing to it.

“I don’t think of selling any local assets during my lifetime,” Henry said in an email interview. “Linda and I love and are committed to this city.”

Henry holds the title of Globe publisher. His wife, Linda Pizzuti Henry, is the managing director and, even more than her husband, is a regular presence at the Globe’s offices.

Henry responded to a range of questions I recently emailed to him. He declined to offer answers on two issues: whether he thought columnist Kevin Cullen could regain the trust of his readers after he returns from a three-month suspension for ethics violations; and how he plans to handle former Boston.com editor and reporter Hilary Sargent’s claims that she was sexually harassed by Globe editor Brian McGrory — claims that she has continued to assert even after the Globe’s recent announcement that investigators had interviewed Sargent and cleared McGrory. Henry did offer praise for McGrory’s performance as editor, saying, “Brian has done a terrific job of early on moving us primarily into local reporting and over the past year or so has really moved us to more and more relevant, interesting and compelling stories across New England. Every day there are ‘can’t miss’ stories.”

As is the case with many daily newspapers, the Globe has staked its future on its ability to sell digital subscriptions. The Globe missed its target of signing up 100,000 digital-only subscribers by the end of June — a crucial benchmark on the way to 200,000, which McGrory and other Globe executives have identified as one of the keys to long-term financial sustainability. Those efforts are about to get a significant boost. Earlier this year, it was announced that the paper would adopt The Washington Post’s highly regarded content-management system, Arc, both for internal operations and for re-energizing the Globe’s web and mobile platforms.

Globe spokeswoman Jane Bowman said the rollout would begin in August, with updates throughout the fall and full adoption by the end of the year. “The move to Arc will relaunch globe.com with a focus on site speed and driving user engagement,” Bowman said via email. “We will extend our mobile offerings, with Arc powering new iOS and Android apps for digital subscribers. The newsroom will have access to Arc’s advanced testing and analytics tools, giving us deeper insight into how readers engage with our content.”

Henry also had some provocative things to say about objectivity, telling me, “A news journalist (as opposed to a columnist) has an obligation to sift through whatever evidence he or she can find and give the reader what actually has happened or is happening to the best of his or her ability much like a juror in a courtroom is asked to do. Today we get the news interpreted far too often rather than reported.”

The financier-turned-publisher’s efforts to reinvent the Globe as a business have been mixed. Expanded print sections, for the most part, have not worked out, as advertising to support those sections failed to materialize. Crux, a free website devoted to covering the Catholic Church, was given away to its star columnist, John Allen. A new $75 million printing plant in Taunton got off to a slow start, resulting in poor quality, late and missed deliveries, and the loss of client publications such as the Boston Herald and USA Today. A revamped version of Boston.com, stripped of Globe content, never really achieved liftoff.

On the other hand, the standalone website Stat, which covers health and life sciences, keeps chugging along. The newsroom and business operations were moved from the paper’s hulking, outmoded plant in Dorchester (sold for about $80 million) to downtown Boston. The Globe’s journalism remains excellent, and the newsroom, with about 220 full-timers, is far larger than it would have been if the paper had fallen into the hands of a corporate chain — as we saw this week with New York’s Daily News, whose staff was cut in half by tronc, its bizarrely named owner.

According to The Washington Post, the Daily News had as many as 400 full-time editorial employees in the late 1980s. After this week’s cuts, that number is now about 45 — an indication not only of how fortunate the Globe has been to have Henry at the helm, but of how bad it might get if he can’t turn things around.

A transcript of my email conversation with Henry follows.

Q: From time to time people tell me that you are considering selling the Globe. Lately that kind of talk has been more persistent — I’ve heard people say that you’re tired of losing money and perhaps tired of the recent controversies. So: Are you planning to sell the Globe?

A: We have had no discussions about selling nor is anything contemplated. I don’t think of selling any local assets during my lifetime. Linda and I love and are committed to this city.

The Globe cannot ever seem to meet budgets — on either the revenue side or the expense side and I am not going to continue that. This has always been about sustainability rather than sizable, endless, annual losses. That is frustrating and due to a combination of mismanagement and a tough industry.

Q: If you are not planning to sell the Globe, are you committed to keeping it for the foreseeable future, which I’ll define as the next three to five years?

A: There is no time frame, honestly. We want to do our part and will, but ultimately the community’s support and the excellence of the paper will determine the long-term future.

I believe this community will support a news organization of this caliber. Brian has done a terrific job of early on moving us primarily into local reporting and over the past year or so has really moved us to more and more relevant, interesting and compelling stories across New England. Every day there are “can’t miss” stories.

Journalism is under attack in this country. We all know facts are under attack. Facts. What should be under attack in journalism these days are not facts but the lack of objective reporting. Personally I reject the notion that you can’t have highly objective reporting although the media seems to believe it isn’t possible. To me that is a long-held myth that has no place in a democracy. A news journalist (as opposed to a columnist) has an obligation to sift through whatever evidence he or she can find and give the reader what actually has happened or is happening to the best of his or her ability much like a juror in a courtroom is asked to do. Today we get the news interpreted far too often rather than reported.

Q: When I was doing my reporting for my book “The Return of the Moguls,” you and others told me that the Globe’s revenues were about $300 million a year. Could you tell me what they are today? What is the gap between revenues and expenses — in other words, how much are you losing?

A: The annual losses are just not sustainable but even if I personally felt that it was acceptable to continue losing significant sums, it does not put the news organization on the road to sustainability. Sooner or later it must sustain itself and it will — again though it will require the Globe convincing the community that it is worthwhile to support.

Q: Do you have concrete plans to fill the gap and move to break-even? You’ve had some success in charging for digital subscriptions, but what can you point to beyond that? How many digital-only subscribers do you now have — did you meet the 100,000 target that had been announced for the end of June?

A: Bridging the gap will not be easy but we have been working on it all year. Last week [early July] we were at 94,797 digital-only subscribers. While the numbers continue to grow, advertising revenues across the country are being gobbled up by Google and Facebook. Bloomberg today reported, “Omnicom Group suffered its biggest decline in nine years after posting sluggish results, renewing concerns that the ad giant can weather media disruption spurred by the likes of Google and Facebook.”

Q: Do you believe the Taunton printing problems have been straightened out or are at least under control? Contracted work was supposed to be a big part of your strategy, but you have lost customers, including the Boston Herald and USA Today. Do you have a strategy to sign up new customers or to lure back old ones (or both)?

A: Yes, and everyone there has been doing everything they can to reduce costs while at the same time getting used to new equipment that initially was extremely challenging.

Whether or not we print other publications comes down to cost primarily. Our cost structure was such that the Herald could be printed more cheaply out of the area. Our costs also led to minimal profit from printing other papers. If we can get our costs in line and be efficient enough we will have almost certainly have more commercial clients than The New York Times.

Q: When will you name a successor to editorial-page editor Ellen Clegg, who recently announced her retirement? [Clegg and I plan to work on a project together. See this disclosure.] Have you chosen anyone? Can you say who that is?

A: This is an extremely important position so we will take our time. Ellen has done a superb job for us and we will miss her.

Q: What do you expect the Globe’s adoption of The Washington Post’s Arc platform is going to accomplish for you? When will that be implemented?

A: I’m not the best person to talk with about this, but it is exciting. Our number one issue is reader experience and having an app experience across platforms as well as a new site will be great for readers.

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