Clay Shirky – Media Nation

How paywalls have revived the idea of the newspaper bundle

Jeff Bezos was right. Photo by Grant Miller for the George W. Bush Presidential Center.

As newspapers have moved away from making their content freely available online, a lot of thinking that seemed forward-looking a few years ago needs to be re-examined. Near the top of the list is the future of the newspaper bundle — that combination of local, national and international news, sports, comics, the crossword puzzle, the school lunch menu and myriad other features that traditionally comprised a daily newspaper.

In the early years of online news, when it seemed reasonable to imagine that digital advertising could subsidize free journalism, the bundle was often described as a relic of the industrial age. Disparate content was brought together, according to this line of reasoning, not because it belonged in one place but because printing was a high-cost manufacturing enterprise. It was logical for the local newspaper to be a one-stop destination for all kinds of material. But with print receding into the past, readers could skip from a hyperlocal website for community news, to a dedicated sports site, to yet another site for comics and puzzles,

“The web wrecks horizontal integration,” wrote C.W. Anderson, Emily Bell and Clay Shirky in their influential 2012 report “Post-Industrial Journalism.” “Prior to the web, having a dozen good-but-not-great stories in one bundle used to be enough to keep someone from hunting for the dozen best stories in a dozen different publications. In a world of links and feeds, however, it is often easier to find the next thing you read, watch or listen to from your friends than it is to stick with any given publication.”

But at a time when readers are once again being asked to pay for newspaper journalism, some sort of bundling is necessary. The days of regularly surfing among multiple free websites are drawing to a close. For any one newspaper to stand out as something to which readers will be willing to buy a subscription, it almost certainly has to offer a wide variety of content.

From the newspaper business’ point of view, the ideal reader would buy digital subscriptions to national, regional and local newspapers. But that’s asking a lot. The reality is that most people aren’t going to subscribe to any newspaper, and those who do are likely to choose one, maybe two. Which means that the newspaper needs to be all things to most people in a way that we thought was obsolete just a few years ago.

In early 2016 I interviewed Bill Marimow, the editor of The Philadelphia Inquirer, days after its billionaire owner, Gerry Lenfest, had donated the Inquirer and its related media properties to a nonprofit organization. (The Philadelphia story comprises a section in my 2018 book “The Return of the Moguls.”) The Inquirer was just getting ready to start charging for digital subscriptions. And I was struck by what Marimow told me he thought needed to be part of the daily mix.

“If you look at today’s paper,” he said, “you’ll see stories that represent the best of city news, Philadelphia suburbs, South Jersey, national and foreign.” I expressed some surprise at Marimow’s insistence on national and international news since the Inquirer relied almost exclusively on wire services for anything outside the Philadelphia area. His answer was that 90% of his readers did not read a national paper and thus relied on the Inquirer.

You see this at The Boston Globe, too. Before the internet began to take a toll on the newspaper business in the 1990s, the Globe — and many other large regional newspapers, including the Inquirer — had a number of U.S. and international bureaus. With the exception of a Washington bureau, those are all gone now. But the Globe continues to publish quite a bit of national and international news from wire services, both in print and online.

Ten years ago, that would have been described as old-media thinking. Now, with the Globe charging $30 a month for digital subscriptions, it makes a great deal of sense to position the paper as a single stop for most of its customers. After all, if the Globe forced its best readers to subscribe to The New York Times, The Washington Post or The Wall Street Journal in order to get news from beyond the Boston area, there’s a real danger that they would decide to drop the Globe.

When Jeff Bezos bought The Washington Post in 2013, he announced that he wanted to reinvigorate the traditional newspaper bundle. “People will buy a package,” Bezos said. “They will not pay for a story.” Bezos’ attitude seemed archaic for someone who had made his reputation as a tech visionary. One of the Post’s younger journalists, Timothy B. Lee, went so far as to disagree with his new boss in a piece headlined “Sorry, Jeff Bezos, the news bundle isn’t coming back.”

“Trying to recreate the ‘bundle’ experience in Web or tablet form means working against the grain of how readers, especially younger readers, consume the news today,” Lee wrote. “In the long run, it’s a recipe for an aging readership and slow growth.”

It turned out that Bezos was right and Lee was wrong — not because Lee was mistaken about how the web had changed news habits, but because paywalls were going up everywhere, thus forcing a change in those habits whether readers liked it or not. Under Bezos’ ownership, the Post’s digital bundle has led to profits and growth, re-establishing the paper as a serious competitor to the Times.

With Google and Facebook capturing the vast majority of digital advertising in recent years, paid content has become the last stand. It may not work for more than a handful of mostly national titles. But, if nothing else, paywalls have given new life to the idea of the bundle that has traditionally defined the general-interest newspaper.

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A new study measures the cost of corruption when the local newspaper dies

Previously published at WGBHNews.org.

As local newspapers shrink or disappear, opportunities increase for politicians and public employees to reach into the cookie jar and help themselves. After all, one of journalism’s most important functions is to act as a watchdog on government. As far back as 2009, the internet scholar Clay Shirky said that he expected to see an explosion of “casual endemic corruption” as more and more small papers shut down.

But how to quantify that? According to a new study, the lack of oversight can be measured by a rise in the cost of government in communities that lose their newspapers. Kriston Capps writes in CityLab that researchers at the University of Notre Dame and the University of Illinois at Chicago found that a municipality’s borrowing costs increase in statistically significant ways in “news deserts” — that is, in places where there is no longer a news outlet that reports on important local issues.

“A local newspaper provides an ideal monitoring agent,” the researchers write in their as-yet-unpublished paper. “Mismanaged projects can be exposed by investigative reporters employed by the local newspaper. When a newspaper closes, this monitoring mechanism also ceases to exist, leading to a greater risk that the cash flows generated by these projects will be mismanaged.”

The ongoing shrinkage of the newspaper business provided the researchers with plenty of data. According to Capps, the study looked at 1,596 papers and found that there were 296 “exits,” a term used to describe newspapers that went out of business, were acquired by competitors, or otherwise lost their relevance.

Although the map that accompanies Capps’ story shows that several newspapers have gone out of business in Massachusetts, the real problem in Greater Boston is depleted resources rather than a shutdown of newspapers altogether. The Boston Globe has gotten smaller as publisher John Henry tries to figure out a path to sustainability. The Boston Herald, an important check on the Globe, is being decimated by its new chain owner, Digital First Media. And GateHouse Media runs the more than 100 community papers it owns in Eastern Massachusetts on a shoestring.

I tend to be skeptical of social science that tries to craft a narrative out of data that could be background noise. But the Notre Dame-Illinois findings appear to be fairly robust. There’s no doubt that government officials — especially those who are corrupt — fear the scrutiny of tough, independent journalism. We already knew we were paying a cost for the decline of the news business. This is one of the first indications that there may be a way of measuring that cost.

***

Unfortunately, the desertification of the news ecosystem continues apace. Another study, scheduled to be released later this month, will show that about 900 communities nationally have lost news coverage since 2004, with the hardest-hit areas tending to be the least affluent.

This new research is being put together by the Center for Innovation and Sustainability in Local Media, based at the University of North Carolina. Veteran journalist Tom Stites, who helped popularize the term “news deserts,” writes about the study for the Poynter Institute. The data will be released in the form of a searchable database and will include demographic information such as household income and poverty rates.

One of the study’s findings, Stites says, is particularly distressing: many of the online-only news projects that have arisen over the past decade-plus to replace or supplement the local newspaper are serving affluent areas rather than poorer communities. Indeed, robust news projects serving low-income cities such as the New Haven Independent, which I wrote about in my 2013 book, “The Wired City,” appear to be the exception rather than the rule.

Stites, a former editor with papers such as The New York Times and the Chicago Tribune, is the founder of the Banyan Project, an ambitious effort to bring cooperatively owned news sites to lower-income communities. Banyan’s first site, Haverhill Matters, is still not fully operational despite many years in the making, though fundraising and planning for a full-fledged launch continue.

***

For a long time, Facebook loomed as the force that news organizations couldn’t live with and couldn’t live without. On the one hand, Facebook and Google were hoovering up more than 90 percent of all new digital ad revenues. On the other hand, publishers were dependent on Facebook for much of their traffic.

Now there are signs that is changing. According to Lucia Moses of Digiday, new statistics from the web analytics firm Chartbeat show that Facebook referrals to news sites are down while direct traffic to news sites is up. Part of the reason is that Facebook in January decided to give a boost to posts from users’ family and friends. But though that may help to explain the decline in referrals, it doesn’t explain the rise in direct traffic.

“The increase in direct traffic matters because it enables publishers to control their own destiny,” Moses writes. “They have more data on reader behavior, which enables them to better target readers with more content and offers for subscriptions and other revenue drivers.”

This is pure speculation on my part, but I think the rise in direct traffic may also be part of the flight to quality we’ve seen since the 2016 election. Digital subscriptions are up at The New York Times, The Washington Post, and regional papers like The Boston Globe, donations have increased to nonprofit news organizations like ProPublica, and listenership has risen at NPR. Word may finally be getting out that social media in general, and Facebook in particular, is awash in fake and unreliable news.

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Baron joins McGrory in thinking digital thoughts

It’s interesting that during the same week Boston Globe editor Brian McGrory exhorted his journalists to keep pushing ahead on the digital side, Washington Post executive editor Marty Baron gave a speech on the same subject at the University of California Riverside.

Baron, who was McGrory’s predecessor as Globe editor, talked quite a bit about a discussion led by Clay Shirky at Harvard’s Shorenstein Center in 2009. As it turns out, I was there, and wrote about it at the time.

As with McGrory’s memo, Baron’s speech is worth reading in full. But here’s a taste:

If this pace of change unnerves you, there is no consolation. Things will only get faster. And for those who resist the change rather than embrace it, there will be no forbearance or forgiveness. Their destiny is to be pushed aside and forgotten. That is the brutal truth.

So journalism’s Big Move from print to digital comes with discomfort for those, like me, who grew up in this field well before the 21st Century. We just have to get over it.

We are moving from one habitat to another, from one world to another. We are leaving a home where we felt settled. Now we encounter behaviors that are unfamiliar. Our new neighbors are younger, more agile. They suffer none of our anxieties. They often speak a different language. They regard with disinterest, or disdain, where we came from, what we did before. We’re the immigrants. They’re the natives. They know this new place of ours well. We’re just learning it.

Welcome to the neighborhood!

McGrory and Baron may be the two luckiest big-city newspaper editors in the country. Both work for deep-pocketed owners who are willing to invest and take the long view. As always, it will be fascinating to see what they make of that opportunity.

The good, the bad and the ugly of the new news ecosystem

Is this a new golden age of journalism? It all depends on who’s getting the gold.

For consumers of news, these are the best of times. Thanks to the Internet, we are awash in quality journalism, from longstanding bastions of excellence such as The New York Times and The Guardian to start-ups that are rising above their disreputable roots such as BuzzFeed and Vice News.

For producers of news, though, the challenge is to find new ways of paying for journalism at a time when advertising appears to be in terminal decline.

The optimistic and pessimistic views got an airing recently in a pair of point/counterpoint posts. Writing in Wired, Frank Rose gave the new smartphone-driven media ecosystem a thumbs up, arguing that mobile — rather than leading to shorter attention spans — has actually helped foster long-form journalism and more minutes spent reading in-depth articles. Rose continued:

Little wonder that for every fledgling enterprise like Circa, which generates slick digests of other people’s journalism on the theory that that’s what mobile readers want, you have formerly short-attention-span sites like BuzzFeed and Politico retooling themselves to offer serious, in-depth reporting.

That Rose-colored assessment brought a withering retort from Andrew Leonard of Salon, who complained that Rose never even mentioned the difficulties of paying for all that wonderful journalism.

“The strangest thing about Rose’s piece is that there isn’t a single sentence that discusses the economics of the journalism business,” Leonard wrote, adding: “If you are lucky, you might be able to command a freelance pay rate that hasn’t budged in 30 years. But more people than ever work for nothing.”

To support his argument, Leonard linked to a recent essay on the self-publishing platform Medium by Clay Shirky, a New York University professor who writes about Internet culture. Shirky, author of the influential 2009 blog post “Newspapers and Thinking the Unthinkable” as well as books such as “Here Comes Everybody” and “Cognitive Surplus,” predicted that advertising in print newspapers is about to enter its final death spiral. That’s because Sunday inserts are about to follow classified ads and many types of display ads into the digital-only world, where retailers will be able to reach their customers in a cheaper, more targeted way. Here’s how Shirky put it:

It’s tempting to try to find a moral dimension to newspapers’ collapse, but there isn’t one. All that’s happened is advertisers are leaving, classifieds first, inserts last. Business is business; the advertisers never had a stake in keeping the newsroom open in the first place.

There’s no question that print will eventually go away, though it may survive for a few more years as a high-priced specialty product for people who are willing to pay for it. The dilemma of how to pay for journalism, though, is not going away.

Free online news supported solely by advertising has not proven to be a reliable business model, although there are exceptions, including a few well-managed hyperlocals, like The Batavian in western New York, and sites that draw enormous audiences while employing very few people, like The Huffington Post.

Digital paywalls that require users to pay up after reading a certain number of articles have helped bolster the bottom lines of many newspapers, including The Boston Globe. But very few have been able to generate a significant amount of revenue from paywalls, with The New York Times being a notable exception.

It may turn out that the most reliable path for journalism in the digital age is the nonprofit model, with foundations, wealthy individuals and small donors picking up the tab. It’s a model that has worked well for public television and radio, and that is currently supporting online news organizations both large (ProPublica) and small (the New Haven Independent). But nonprofits are hardly a panacea. The pool of nonprofit money available for journalism is finite, and in any case the IRS has made it difficult for news organizations to take advantage of nonprofit status, as I wrote for The Huffington Post in 2013.

Journalism has never been free. Someone has always paid for it, whether it was department stores taking out ads in the Sunday paper or employers buying up pages and pages of help-wanted ads in the classifieds. Today, the most pressing question for journalists isn’t whether we are living in another golden age. Rather it’s something much blunter: Who will pay?

Tales of two newspapers, one rising, one falling

On the East Coast, The Washington Post is in the midst of a revival that could return the storied newspaper to its former status as a serious competitor to The New York Times for national and international news. On the West Coast, the Orange County Register is rapidly sinking into the pit from which it had only recently crawled.

The two contrasting stories are told by the Columbia Journalism Review’s Michael Meyer, who writes about the Post in the early months of the Jeff Bezos era, and Gustavo Arellano of OC Weekly, who’s been all over Aaron Kushner since his arrival as the Register’s principal owner in 2012.

First the Post, which has been the subject of considerable fascination since Amazon founder Bezos announced last August (just a few days after John Henry said he would buy The Boston Globe) that he would purchase the paper from the Graham family for $250 million.

Bezos’ vision, as best as Meyer could discern (Bezos, as is his wont, did not give him an interview), is to leave the journalists alone and work on ways to expand the Post’s digital audience across a variety of platforms. Meyer describes a meeting that Bezos held in Seattle with executive editor Marty Baron and other top managers:

Baron says he came away from the weekend in Seattle with a clear sense of what the Post’s mission would be in the coming year: It had to have “a more expansive national vision” in order to achieve the ultimate goal of substantially growing its digital audience. Baron brought this directive back to the newsroom, and the editors set about building a plan for 2014, a year managing editor Kevin Merida dubbed “the year of ambition.” At one point in the budgeting process, Bezos even admonished the leadership for not thinking big enough. “I think that we had been in the mode of sort of watching our pennies,” Baron told me. “We were just being more cautious at the beginning so he came back with an indication that we should be more ambitious.”

Among the more perplexing moves (to me at least) that the Post has made under Bezos has been to cut deals with more than 100 daily papers across the country so that paid subscribers to those papers would receive free digital access to the Post as well. Locally, the papers include the Portland Press Herald as well as Digital First Media’s papers, such as The Sun of Lowell, The Berkshire Eagle and the New Haven Register.

Journalistically, it’s a good deal for subscribers, since they get free access to a high-quality national news source. But no money changes hands. So how is it any better for the Post than simply offering a free advertiser-supported website, as it did until instituting a metered paywall last year? Meyer tells me by email that “the reason they are doing this is for customer data. A logged in, regular user is a lot more data rich than someone who just happens across your site from time to time.” He adds:

Data is the key difference between this program and just having a free website. And another key difference to my mind is psychological. The readers of partner newspapers feel like they’re being given something that would otherwise not be free. This adds value in terms of how they view their subscriptions to their home newspapers. And also adds value in terms of how they view the Post’s content. My guess is they will use the service more as a result.

And as Meyer writes in his story, “Anyone interested in seeing how consumer data might be used in the hands of Jeff Bezos can go to Amazon.com and watch the company’s algorithms try to predict their desires.”

The story Gustavo Arellano tells about Aaron Kushner and the Orange County Register has become well-known in recent weeks, in large measure because of Arellano’s own coverage in the OC Weekly. Kushner has spent 2014 rapidly dismantling what he spent 2012 and 2013 building up.

As I wrote recently in The Huffington Post, it makes no sense to invest in growth unless you have enough money to wait and see how it plays out, which is clearly the case with Bezos at the Post and Henry at the Globe — and which now is clearly not the case with Kushner and the Register.

The Orange County meltdown was also the subject of an unusually nasty blog post earlier this month by Clay Shirky, who criticized Ryan Chittum of the CJR and Ken Doctor of Newsonomics and the Nieman Journalism Lab for overlooking the weaknesses in Kushner’s expansion. (Chittum and Doctor wrote detailed, thoughtful responses, and I’ve linked to both of them in the comments of a piece I wrote about the kerfuffle for WGBHNews.org.)

Arellano has gotten hold of some internal documents that make it clear that Kushner’s expansionary dreams were doomed from the start. He also paints a picture of a poisoned newsroom and offers lots of anonymous quotes to back it up.

“I wouldn’t say I got hoodwinked,” he quotes one former staff member as saying, “but it’s just another lesson of life: If it’s too good to be true, it is.”

I recently criticized Arellano for his overreliance on anonymous quotes, although I freely concede that I used them regularly when I was covering the media for The Boston Phoenix in the 1990s and the early ’00s. This time, he includes a clear explanation of why almost none of his sources would go on the record: fear of “reprisal or the endangerment of their buyout, which included a nondisclosure clause.” Given that, I think the story is stronger with the quotes than without.

Arellano writes:

In retrospect, it seems obvious Kushner set himself up for failure, like a Jenga tower depending on every precariously placed block. He installed himself as publisher despite having no previous newspaper experience. A hard paywall — his most controversial move — was erected to force readers to buy the print edition in an era when online content is king. To justify that, Kushner plunged into a hiring binge that saw the Register sign up hundreds of employees even though it didn’t have the revenue to pay them. To fund his vision, the sales department was tasked with selling all those points despite an industry-wide decline in print advertising during the past decade.

It’s a sad, ugly moment for a tale that began so optimistically. As for whether this will prove to be the end of the story — well, it sure looks that way, although Kushner insists he’s merely slowed down. After two years of hiring binges and layoffs, the launch and virtual folding of the Long Beach Register, and the inexplicably odd decision to start a Los Angeles Register to compete with the mighty Times, Kushner is clearly down to his last chance — if that.

A few quibbles with Clay Shirky’s ‘Nostalgia and Newspapers’

printing1_large — Gutenberg-era printing press

Published previously at WGBH News.

Five years ago Clay Shirky wrote an eloquent blog post titled “Newspapers and Thinking the Unthinkable.” His essential argument was that we were only at the very beginning of trying to figure out new models for journalism following the cataclysmic changes wrought by the Internet — like Europeans in the decades immediately following the invention of Gutenberg’s press. Along with a subsequent talk he gave at Harvard’s Shorenstein Center, Shirky helped me frame the ideas that form the foundation of “The Wired City,” my book about online community journalism.

Now Shirky has written a rant. In “Nostalgia and Newspapers,” posted on Tuesday, the New York University professor and author wants us to know that we’re not getting it fast enough — that print is dead, and anything that diverts us from the hard work of figuring out what’s next is a dangerous distraction. His targets range from Aaron Kushner and his alleged apologists to journalism-school professors who are supposedly letting their students get away with thinking that print can somehow be saved.

As always, Shirky offers a lot to think about, as he did at a recent panel discussion at WGBH. I don’t take issue with the overarching arguments he makes in “Nostalgia and Newspapers.” But I do want to offer a countervailing view on some of the particulars.

1. Good journalism schools are not print-centric: Shirky writes that he “exploded” when he was recently asked by an NYU student, in front of the class, “So how do we save print?” I assume Shirky is exaggerating his reaction for effect. It wasn’t a terrible question, and in any case there was no reason for him to embarrass a student in front of her classmates. I’m sure he didn’t.

More important, Shirky takes the view that students haven’t given up on print because no one had given it to them straight until he came along to tell them otherwise. He writes that he told the students that “print was in terminal decline and that everyone in the class needed to understand this if they were thinking of journalism as a major or a profession.” And he attributed their nostalgic views to “Adults lying to them.”

Now, I find it hard to believe that Shirky’s take on the decline of print was novel to journalism students at a progressive institution like NYU. And from what I’ve seen from my own small perch within academia, all of us are looking well beyond print. In the new issue of Nieman Reports, Jon Marcus surveys changes in journalism education (including the media innovation program for graduate students headed by my Northeastern colleague Jeff Howe that will begin this fall). Citing a recent survey by Poynter, Marcus writes that, in many cases, j-schools are actually ahead of professional newsrooms in pushing for digital change:

A recent Poynter survey — which some argue demonstrates that educators are outpacing editors in their approaches to digital innovation — underlines the divide between j-schools and newsrooms. Educators are more likely than professional journalists to believe it’s important for journalism graduates to have multimedia skills, for instance, according to the survey Poynter released in April. They are more likely to think it’s crucial for j-school grads to understand HTML and other computer languages, and how to shoot and edit video and photos, record audio, tell stories with visuals, and write for different platforms.

Could we be doing better? No doubt. But we’re already doing a lot.

2. Aaron Kushner might have been on to something. OK, I’m pushing it here. There’s no doubt that Kushner’s moves after he bought the Orange County Register in 2012 have blown up in his face — the hiring spree, the launching of new daily newspapers in Long Beach and Los Angeles, the emphasis on print. Earlier this month, it all seemed to be coming to a very bad end, though Kushner himself says he simply needs time to retrench.

But Kushner’s ideas may not have been entirely beyond the realm of reality. Over the past several decades, great newspapers have been laid low by debt-addled chains trying to squeeze every last drop of profit out of them. This long-term disinvestment has had at least as harmful an effect on the news business as the Internet-driven loss of advertising revenues. Yes, Kushner’s love of print seems — well, odd, although it’s also true that newspapers continue to derive most of their shrinking advertising revenues from print. But investing in growth, even without a clear plan (or, rather, even with an ever-changing plan), strikes me as exactly what we ought to hope news(paper) companies will do. After all, that’s what Jeff Bezos is doing at The Washington Post and John Henry at The Boston Globe. And that’s not to say there won’t be layoffs and downsizing along the way.

Shirky also mocks Ryan Chittum of the Columbia Journalism Review and Ken Doctor, a newspaper analyst and blogger who writes for the Nieman Journalism Lab, writing that they “wrote puff pieces for Kushner, because they couldn’t bear to treat him like the snake-oil salesman he is.” (Shirky does concede that Chittum offered some qualifications.)

Chittum recently disagreed with me merely for writing that he had “hailed their [Kushner’s and his business partner Eric Spitz’s] print-centric approach.” It will be interesting to see whether and how he and Doctor respond to Shirky. I’ll be watching. Chittum has already posted this.

https://twitter.com/ryanchittum/status/479251808087724033

In any case, I hardly think it was “terrible” (Shirky’s description) for Chittum and Doctor to play down their doubts given that Kushner, a smart, seemingly well-funded outsider, claimed to have a better way.

Post-publication updates. After this commentary was published at WGBH News on Wednesday, the reactions, as expected, started rolling in. First up: Chittum, who apologized for his F-bomb, though not the sentiment behind it.

https://twitter.com/ryanchittum/status/479298269538181120

Shirky responded to Chittum’s first tweet, though his blog seems to be down at the moment. (It’s now back, and here is the direct link.)

Finally, Ken Doctor wrote a long, thoughtful retort to Shirky at the Nieman Journalism Lab. (And now Shirky has posted a comment.)

Even more finally: Chittum has responded at some length in the CJR. The end?

They Posted Clickbait So They’d All Get Rich. What Happened Next Made Them Cry.

WGBH forum — From left: Raney Aronson Rath, deputy executive producer of “Frontline,” who introduced the panel: moderator Joshua Benton, Tim O’Brien, Clay Shirky and Ethan Zuckerman. Photo by Lisa Palone via Twitter.

Cross-posted at WGBH News.

Have we reached the limits of clickbait media exemplified by The Huffington Post and BuzzFeed? According to three experts on Internet journalism, the answer is yes.

At a forum on the future of journalism held in WGBH’s Yawkey Theater on Wednesday, the consensus was that aggregating as many eyeballs as possible in order to show them advertising does not produce enough revenue to support quality journalism. Instead, news organizations like The New York Times are succeeding by persuading a small percentage of their audience to support them through subscription fees. (Click here for some tweets from the session.)

“One of the things that interests me is the end of the audience as a discrete category that can be treated as an aggregate,” said Clay Shirky of New York University. “Scale was the business model,” he said, describing the attitude among Web publishers as “‘At some point scale will play out.’ And it didn’t.”

As it turns out, Shirky continued, pushing people to “a hot new story” didn’t really matter that much. “What really matters,” he said, “is that there’s about 3 percent of that audience who really cares whether that newspaper lives or dies. We’re just at the beginning of that.”

Shirky and his fellow panelists — Tim O’Brien, publisher of Bloomberg View, and Ethan Zuckerman, director of MIT’s Center for Civic Media, moderated by Nieman Journalism Lab editor Joshua Benton — noted that the revenue model being pursued by the Times and others is essentially the same as the system that funds public media outlets such as WGBH, WBUR, NPR and the like.

O’Brien and Zuckerman disagreed over the need for mass media. O’Brien argued that the audience for an entertainment program can come up with ways of paying for it that don’t depend on attracting a larger audience. “We’re talking about different ways to finance passion,” he said.

To which Zuckerman retorted: “We’re not just talking about ‘Downton Abbey.’ We’re talking about news.” The challenge, Zuckerman said, is to find ways not just of funding journalism but of building enough of an audience so that investigative reporting at the local level can have enough clout to influence events.

Zuckerman also raised the issue of how news organizations do and don’t foster civic engagement, offering the example of the sudden closing of North Adams Regional Hospital in western Massachusetts. The closing put about 500 people out of work and left residents about 45 minutes away from the nearest emergency room.

Zuckerman praised the Berkshire Eagle’s coverage, but said the paper offered little sense of what the public could do. That, he said, would require “advocacy journalism” of the sort that makes traditional journalists uncomfortable.

That led to an observation by Shirky that newspaper editors are actually well-versed in telling their readers how to get involved when it comes to something like a theater review. Not only do readers learn whether the critic liked the play or not, but they are also told when and where it is being performed, how much tickets cost and how to buy them. But when covering a political story, Shirky continued, readers never learn how to make a donation or get involved.

Zuckerman said the problem is that news organizations don’t like to promote what-you-can-do measures when it comes to partisan politics.

By contrast, he added, news organizations have no issues with telling their audience how they can help after a natural disaster, explaining: “There is not a huge pro-hurricane constituency.”

Four takeaways from new owner John Henry’s message to readers of The Boston Globe

John Henry at celebration of the Red Sox' 2007 World Series victory. — John Henry in October 2007

This article was published earlier in the Nieman Journalism Lab and The Huffington Post.

John Henry’s nearly 2,900-word message to readers of The Boston Globe could have been little more than an exercise in public relations, standing up for what is good and deploring what is bad.

There’s a lot of that, of course. We’re only into the second paragraph before he dutifully informs us that the Globe “is the eyes and ears of the region in some ways, the heartbeat in many others.” But Henry, a billionaire financier who is the principal owner of the Boston Red Sox, is also unexpectedly revealing about himself and how he intends to run the Globe. (Henry purchased the Globe, its BostonGlobe.com and Boston.com websites, the Telegram & Gazette of Worcester and several smaller properties from the New York Times Co. for $70 million. The sale, announced in August, closed last week following a brief delay over a labor dispute at the T&G. Henry also made a bit of news when folks at the T&G noticed that his message omitted Worcester entirely.)

Henry’s piece, headlined “Why I bought the Globe,” takes up a full page in the Opinion section of Sunday’s paper. It’s teased on the front page as well. He writes about his life, the Red Sox, the financially struggling news business and what he thinks needs to be done to set it on a sustainable path. Here are what I think are the most important takeaways.

1. He plans to be an activist owner. Just the atmospherics of the essay itself are a pretty strong indication that Henry does not see this as a passive investment. He wants to be the face of the Globe.

To counter his image as a reserved, slightly eccentric rich guy who dabbles in sports, Henry goes into some detail about his involvement in the civil-rights movement and his subsequent retreat “into what most of my friends thought was my primary talent at the time — writing and performing rock music.”

Somewhere along the way he made a lot of money, but he writes about that only briefly. Instead, he describes his stewardship of the Red Sox as a possible model for what he intends to do with the Globe:

When we acquired the Red Sox, profit was literally at the bottom of our list of goals. We were determined to do whatever it took to win.

Now I see The Boston Globe and all that it represents as another great Boston institution that is worth fighting for.

Here’s another intriguing example of what sort of profile Henry intends for himself as the Globe’s owner: Recently the Boston Business Journal reported that toxic waste at the Globe’s Dorchester property could complicate any plans Henry might have to develop the site and move the paper to a cheaper location. Henry used his Twitter feed to dispute the BBJ’s story and slam an earlier piece about the Globe’s break-up with a classified-ad site called Cars.com:

News flash: BBJ has a 20-year-old environmental report on Morrisey Blvd. Seriously? Last week it was faulty info on cars.

— John W. Henry (@John_W_Henry) October 26, 2013

A feisty newspaper owner who fights back in public? Bring it on. That’s certainly an improvement over the gray management style of the Times Co.

2. He’s looking for advice in all the right places. If the Globe and other large regional dailies are going to survive and prosper, they need to develop new ways of doing business. So it’s encouraging that Henry mentions alliances the paper already has with Harvard’s Shorenstein Center, the MIT Media Lab and the Nieman Journalism Lab.

Henry also gives a shout-out to Clay Shirky, which I take as a signal that Henry is reading and talking to the right people. It doesn’t sound like he intends to take the approach adopted by Aaron Kushner, a one-time Globe suitor who’s winning plaudits for trying to revive the Orange County Register by focusing on the print edition. The Globe has been a leader in digital journalism. So it’s good news that Henry sounds like he’s going to double down on innovation.

3. He has some retro ideas about paid content. Near the top of his commentary, Henry repeats an old trope, writing that newspapers have been losing money because “Readers were flocking from the papers to the Internet, consuming expensive journalism for free.”

Now, I’ve got nothing against charging for digital subscriptions, and the Globe has had some success with that — 39,000 at last count. But it’s important to keep in mind what newspaper owners are up against in asking readers to pay for online access.

As has often been said, newspaper readers never paid for the news — they paid for the expense of printing and delivering the paper, with advertisers picking up the rest. These days, readers are paying — a lot — for their own printing presses (computers, tablets and smartphones) and their own delivery (broadband and cellular access). It’s perfectly understandable that they don’t want to pay more.

What went wrong was not that newspapers started giving away their content but, rather, that the advertising model collapsed, especially from classifieds. Henry understands this, writing, “I feel strongly that newspapers and their news sites are going to rely upon the support of subscribers to a large extent in order to provide what readers want.”

I wish any newspaper owner well in persuading readers to pay for journalism. But we have to understand that we are asking them to do something they’ve never done before: pay for news in addition to paying for printing and delivery. We need to be humble about how much we’re asking of our audience.

4. He wants the Globe to act as a guide to the larger conversation. One of the most important roles professional journalism can play is to aggregate and curate the torrent of information — not just when big news breaks, but on a daily basis.

The New York Times does this with The Lede; the Globe does it from time to time, as it did following the Boston Marathon bombing. The idea is to become the go-to place for trustworthy links to other news sources, blogs and citizen media. Henry clearly gets that, writing:

We will provide what we will call the Globe Standard when it comes to curated links that will ensure our readers do not waste their time when they click on news, reviews, writers, columnists, ecommerce, events, opportunities, and social engagement from any of our platforms.

One thing Henry gets absolutely right is that the newspaper business is not now and never was compatible with ownership by publicly traded corporations and the quarterly demands of Wall Street. For more than a generation, corporate chains slashed newsrooms, first to drive up profit margins, later to stave off mounting losses. The debt they took on to build their chains is one of the prime reasons for their inability to set themselves on a new path. Henry understands that.

“I soon realized that one of the key things the paper needed in order to prosper was private, local ownership, passionate about its mission,” Henry writes. Farther down, he adds: “But this investment isn’t about profit at all. It’s about sustainability. Any great paper, the Globe included, must generate enough revenue to support its vital mission.”

Leaving aside the obvious fact that profit is a key to sustainability, Henry articulates a vision in which journalism comes first — which is another way of saying the customer comes first. Too many newspaper owners have forgotten that.

Photo (cc) by Patrick Mannion and published under a Creative Commons license. Some rights reserved.

Local journalism, civic life and “The Wired City”

Paul Bass speaking at the New Haven Independent's 10th-anniversary party, Sept. 15, 2010. — Paul Bass speaking at the New Haven Independent’s fifth-anniversary party, Sept. 15, 2010. Yes, that’s two-time U.S. Senate candidate Linda McMahon in the background.

This article appeared previously at the Nieman Journalism Lab.

The star attraction was supposed to be Diane Ravitch, a prominent critic of education reform. But the real stars were the audience members themselves.

I had driven to New Haven on this day in late November 2010 to see if Paul Bass, the founder and editor of the New Haven Independent, could pull off an audacious experiment in civic engagement. The Independent, a nonprofit online-only news organization, is the principal subject of my new book, “The Wired City.” The subtitle — “Reimagining Journalism and Civic Life in the Post-Newspaper Age” — reflects my belief that news can’t survive without public participation. What we got that night was full immersion.

Stage right, Ravitch sat with 11 other people — principals, teachers, school officials, a high school student, a board of education member and the like. Stage left, a half-dozen media folks and elected officials, including Mayor John DeStefano, were live-blogging the event. The forum was webcast on television and radio, as well as on the websites of the Independent and the New Haven Register, the city’s daily newspaper. Viewers at home — and, for that matter, those in the auditorium who had laptops — were able to engage in a real-time, online conversation with the live-bloggers. Afterwards, readers posted a total of 53 comments to the two stories the Independent published (here and here). The archived video was posted as well. Finally, in a touch that seemed almost old-fashioned, the 200 or so people who attended were invited to line up at two microphones during an extended question-and-answer period.

Among the myriad crises facing journalism, perhaps none is more vexing than civic illiteracy. Starting in the 1990s, leading thinkers such as New York University’s Jay Rosen began sketching out ways for news organizations to listen to their audience’s concerns and to shape their coverage accordingly. This “public journalism” movement, as it became known, fizzled as newsroom budget cuts and criticism from traditional journalists took their toll.

But if the audience doesn’t care about the public-interest aspects of journalism, then there really isn’t much hope for a revival. Over the years, newspaper publishers have responded to the decline of civic life by loading up on celebrity gossip and so-called news you can use, such as personal finance and cooking tips. It’s a losing game, because there are always going to be better sources of such information than the local newspaper.

More than a dozen years ago the Harvard scholar Robert Putnam, in his classic book “Bowling Alone,” found that people who were engaged in civic life — voting in local elections, taking part in volunteer activities, attending religious services or participating in any number of other activities — were also more likely to read newspapers. “Newspaper readers,” he wrote, “are machers and schmoozers.”

Trouble is, Putnam’s machers and schmoozers were aging even then. And so it is up to news organizations not merely to serve the public, but to nurture and educate the public so that it is engaged with civic life, and thus with the fundamental purpose of journalism.

C.W. Anderson, in his book “Rebuilding the News: Metropolitan Journalism in the Digital Age,” writes that “journalists [report] the news in order to call a particular form of public into being.” Along similar lines, I argue in “The Wired City” that creating a public is at least as important as reporting on its behalf. No longer can it be taken for granted that there is a public ready to engage with news about last night’s city council meeting, a speech by the mayor or plans by a developer to tear down a neighborhood landmark and replace it with yet another convenience store.

Howard Owens, the publisher of The Batavian, a for-profit site in western New York that I also write about in my book, once put it this way:

Local community news is currently only a niche product. Entrepreneurs need to think about not only “how am I going to appeal to the people who care now, but how am I going to get more people to care about their community so I can grow my audience?”

In researching “The Wired City,” I learned that the readership for the New Haven Independent comprises a wide swath — elected officials, city employees (especially police officers and teachers), leaders and activists in the African-American community, dedicated localists and members of what struck me as a surprisingly large and politically aware group of bicycling advocates.

Though the Independent’s audience is not as large as that of the New Haven Register, its concentration inside the city limits and its popularity among opinion leaders — “the grassroots and grasstops circles,” as Michael Morand, an associate vice president at Yale, described it to me in an interview — gives the site outsize influence. Indeed, it was the Independent’s relentless coverage of a controversy over the video-recording of police actions by members of the public that led to a clarification from the police chief that such recording was legal. It also led to mandatory training for all officers.

Thus what we see in New Haven, in Batavia and in other places where news organizations are trying new methods of bridging the divide between journalism and the public is a revival of the ideas Jay Rosen and others first began championing two decades ago. “What we today call ‘engagement’ was a central feature of many civic-journalism experiments, but in a way we were working with very crude tools then,” Rosen told me in 2011. “It’s almost like we were trying to do civic engagement with heavy machinery instead of the infinitely lighter and cheaper tools we have now.”

The “wired city” that I argue the New Haven Independent brought into being is a community built around local news, empowered by the “lighter and cheaper tools” that have become available during the past decade and a half. Through events like the Diane Ravitch forum, through carefully (if not perfectly) curated user comments and through the now-taken-for-granted convenience of always being just a few clicks away, the Independent has succeeded not so much as an entity unto itself but as the hub of a civic ecosystem.

As Clay Shirky has observed, with local newspapers slowly fading away, no single alternative will replace what they once provided. We need a variety of experiments — for-profit, nonprofit, cooperative ownership and voluntary efforts. The challenge all of them face is that serving the public is no longer enough. Rather, the public they serve must first be assembled — and given a voice.

Photo (cc) by Dan Kennedy and published here under a Creative Commons license. Some rights reserved.

The Daily was on the Internet — but not of the Internet

Rupert Murdoch this week killed off The Daily, the tablet-centric electronic newspaper that he unveiled nearly two years ago to great fanfare and even greater skepticism.

It’s no exaggeration to say this was one experiment that was dead on arrival. Very few observers believed there was a market for a middlebrow paid digital news product aimed at a general audience. And those few were proved wrong.

It so happens that The Daily died just as I was reading “Post-Industrial Journalism,” a new report by Columbia’s Tow Center for Digital Journalism. The authors, C.W. Anderson, Emily Bell and Clay Shirky, argue that digital technology has ended the industrial model of journalism — an approach to news built around the industrial processes (printing plants, fleets of trucks and the like) needed to produce and distribute it. They credit the phrase “post-industrial journalism” to the redoubtable Doc Searls, who in 2001 defined it as “journalism no longer organized around the norms of proximity to the machinery of production.”

The problem with The Daily — or, at least, one of the problems — was that Murdoch followed the industrial model of news despite his reliance on post-industrial technology. The Daily was a centralized operation built around a daily cycle when it should have taken advantage of not being tied down to a print edition. It was essentially an electronic version of a print newspaper that offered none of the advantages of either format.

The Daily was not part of the broader Web. Social sharing was difficult if not impossible. The Daily was, well, a daily — it came out once a day, you downloaded it and that was that. No updating until the next day’s edition. At first, you could only read it on an iPad, although it eventually migrated to other tablets and to the iPhone.

With print, people are willing to put up with some of these shortcomings because of the convenience and aesthetics of ink on paper, which still haven’t lost their appeal. An online news source simply has to offer more. The Daily was on the Internet, but it wasn’t of the Internet. Its demise was inevitable.