Gannett – Page 7 – Media Nation

Gannett is (wait for it) bulking up on local even as union staffers stage a one-day strike

As you may have heard, union journalists at many Gannett newspapers staged a one-day strike Monday to protest chair Michael Reed’s brutal leadership style, which has resulted in devastating cuts and a sliding stock price even as he’s pulled down more than $11 million in compensation over the past two years.

I’ll get back to that. But first I want to discuss a less publicized development. Over the past several weeks, Gannett has made a couple of personnel moves aimed at — wait for it — reinvigorating local coverage at the country’s largest newspaper chain.

On May 19 came word that Michael Anastasi, vice president of The Tennessean of Nashville and editor of USA Today’s South Region, was being promoted to the newly created position of vice president of local, part of what the company is calling “a new nationwide Gannett effort to transform the growth trajectory for hundreds of local newspapers.”

In an article announcing the move, Anastasi was quoted as saying, “I can’t wait to help accelerate our transformation as I work with the thousands of local Gannett journalists across the country.” He’ll report to Kristin Roberts, Gannett’s chief content officer, who stated, “We are going to save local journalism, and we’re going to do it by working together with absolutely clear eyes about the challenge and tremendous speed toward the solution.”

Anastasi’s promotion is part of what Gannett is calling Project Breakthrough, which “focuses on key growth areas to increase nationwide audience, including opinion columns, newsletters, service journalism, breaking news and audience engagement.”

Less than two weeks later came word that Imtiaz Patel, chief executive officer of The Baltimore Banner, will leave July 7 in order to become a top executive at Gannett. According to the Banner’s story on that departure, Gannett has not yet announced what Patel’s new position will be. But it’s remarkable that the head of one of the most respected nonprofit digital news organizations in the country would jump onto what is widely regarded as a sinking ship.

Now, there were family considerations involved in Patel’s move. He told the staff that a change in his wife’s job made it impossible for her to move from New York City to Baltimore, as she had planned. Still, Patel has won nothing but plaudits for his management of the Banner, and presumably he could have written his own ticket. (Interesting wrinkle: former Boston Globe editor Brian McGrory, now chair of Boston University’s journalism department, will help lead the transition as the outlet searches for a new CEO.)

“I’m tremendously proud of what we have achieved to bring locally owned, not-for-profit news to Baltimore,” said Patel, who’ll remain on the Banner’s board of directors. Under his leadership, the news organization signed up about 70,000 paid subscribers.

For all of Gannett’s cuts, which have had a devastating effect on newsrooms as well as the communities they serve, the company has always had a story to tell about how brighter days are just around the corner. Back before the merger with GateHouse Media, GateHouse folks used to talk about developing revenues from ancillary businesses such as services and events in order to support their journalism. Not much ever came of that. More recently, Gannett has embraced sports betting and even NFTs — again, without an discernable positive impact on the bottom line. (Are NFTs even still a thing?)

All of this came to a head Monday, when hundreds of journalists went on strike at Gannett’s dailies, which employ about 1,000 union members in 50 newsrooms. The job action coincided with Gannett’s annual shareholder meeting, Angela Fu reports for Poynter Online.

Most of the strikes are one-day work stoppages and involve journalists at some of Gannett’s largest newsrooms: the Rochester Democrat and Chronicle, the Austin American-Statesman and The Palm Beach Post. Workers at The Arizona Republic and The Desert Sun will stage multi-day strikes, and journalists at The Indianapolis Star are withholding their bylines in lieu of a work stoppage.

The NewsGuild-CWA had hoped to persuade shareholders to vote against Reed’s continued tenure as chair. Not surprisingly, according to Katie Robertson of The New York Times, that effort fell short.

So now we’ll get to see how the latest story Gannett is telling itself plays out. Anastasi and Patel are serious news leaders, and it seems unlikely they would have agreed to accept their new roles without promises of money, resources and time. And yet — really? Gannett is not going to bring back all the weekly newspapers that it closed in Massachusetts, or restore the local journalism it eliminated in favor of regional coverage. It’s almost certainly not going to repopulate daily papers like The Californian of Salinas, now operating with zero staff reporters.

It would be easier to read the tea leaves if Reed and his associates simply continued pillaging the company. The Anastasi and Patel moves suggest that they’ve got something else in mind. It will bear watching to find out exactly what that looks like.

Correction: Updated to fix Kristin Roberts’ name. That’s two this week. I’ll try to slow down and read more carefully.

Something for the kitchen table: Why print makes sense for some local news startups

Local news board members Greg Bestick of the Harpswell Anchor, Fred Perry of Brookline.News and Virginia McIntyre of The Concord Bridge. Photo (cc) 2023 by Dan Kennedy.

Residents looking to start news organizations in their communities usually look to digital first. Even at the local level, advertising revenues are not what they used to be, and the cost of offering a print newspaper — both in terms of money and complexity — often isn’t worth it.

Yet the traditional notion of publishing a weekly newspaper remains attractive on several levels. Readers like it. Advertisers prefer it. And in many states, public notices placed by governmental agencies, a lucrative source of revenue, are restricted to print papers.

So I was interested to learn that print is part of the discussion at three nonprofit local news startups that were featured at a panel discussion, “The Re-Emergence of the Community Newspaper,” held during the recent conference of the NorthEast Association of Communications Executives, held in Meredith, New Hampshire.

The Harpswell Anchor in Maine and The Concord Bridge in Massachusetts have offered print right from the beginning. Brookline.News in Massachusetts is digital-only but may offer a print edition in the future. (Disclosure: Ellen Clegg, my research, podcast and writing partner, is also a founder and co-chair of Brookline.News.)

Greg Bestick, president of the nonprofit board that publishes the Anchor, said print was not something he and his fellow founders especially wanted to offer. What changed their mind, he explained, was that a survey of the community revealed that 95% wanted something they could hold in their hands.

“We weren’t thrilled about that,” Bestick said, “but we did say we’d be much more robust online than the previous owner.”

Unlike The Concord Bridge and Brookline.News, which were both launched in response to massive budget cuts by the newspaper chain Gannett, The Harpswell Anchor had been a locally owned for-profit newspaper until several years ago. The paper ceased publication during the COVID-19 pandemic, Bestick said. The new iteration of the Anchor has had an operating surplus from the start, he added, and won 11 awards from the Maine Press Association during its first year.

Virginia McIntyre, a member of The Concord Bridge’s board, said the founders of that site were enthusiastic about print right from the start. “We wanted something people could have on the kitchen table,” she said, adding: “It’s nice to have something that the family can see as a whole. Our advertisers also like having an ad that hits every household.” The print edition of the Bridge, she explained, is mailed for free to each of Concord’s 8,700 households.

Discussions about starting a community news outlet began after Gannett decided in early 2022 to eliminate nearly all local journalism from its Massachusetts weeklies. The Concord Journal is still published, but it’s filled with regional stories from throughout Gannett’s network. Because of that, McIntyre said, many residents had no idea about important developments such as the hiring of a town manager and a $110 million middle school project. Although the Bridge includes feature stories and coverage of school sports, she said that the goal is to inform the public about day-to-day goings-on.

“It’s not entertainment,” she said. “I always thought Concord was a boring place, and now I know it is.”

In contrast to Concord, Gannett shut down the Brookline Tab altogether, leaving a community of nearly 60,000 people just minutes from Boston without any local source of news. “The Tab was not good. But it was something,” said Fred Perry, a member of the Brookline.News board.

Brookline.News’ website didn’t go live until last week; a newsletter began covering the town just before the annual town meeting in April. Perry said he’s hoping that the project can start offering a print edition sometime this fall, praising “the wonderful examples on both sides of me,” a reference to Bestick and McIntyre. Several other board members, he added, are skeptical of print because of the cost, but he said he’s optimistic that print “can generate a significant surplus.”

The panel discussion was moderated by John Harrison, an executive with Wallit, a company that helps publishers manage digital subscriptions.

In many cases, digital-only makes sense. LION (Local Independent Online News) Publishers, an organization for digital news entrepreneurs, has more than 300 members. Many of the projects that Ellen and I are profiling in our forthcoming book, “What Works in Community News,” are digital-only, and they have no plans to add a print edition.

Yet print has persisted long past its anticipated expiration date. Perhaps the best way to think about it is that print is still worth doing — but only if it makes sense in terms of revenue, reader preferences and advertiser reach.

Correction: Updated with the proper spelling of Greg Bestick’s name.

At The Batavian, an innovative paywall gives subscribers a four-hour head start

Now, here’s an interesting idea. The Batavian, a for-profit digital news outlet located in Genesee County, in western New York, has begun charging readers who want to see stories as soon as they’re posted. Others have to wait four hours.

In a press release posted by the trade publication Editor & Publisher, Howard Owens, who has led The Batavian since its founding nearly 15 years ago, explained that the website has begun charging $8 a month, or $80 a year, for subscribers who don’t want to put up with the four-hour delay. He calls it an “Early Access Pass,” and he writes:

I’m not aware of any other news publication using a similar reader-revenue model. For 15 years, our news site has been supported by more than 150 locally owned businesses, and we had an obligation to our fellow small business owners to ensure The Batavian remains the first stop in our community for local news. A paywall like many newspaper sites erect would kill site traffic, but with this model, we anticipate our program will keep our market-dominating traffic numbers high.

In a post at The Batavian, Owens says that the Early Access Pass is off to a fast start. He quotes one couple who told him: “We believe that being connected to local news is important for a healthy community. Knowing what’s happening in our own backyards helps raise awareness of events that we can have an effect on. We appreciate having an unbiased news source, and that is still free for our neighbors who may frequently face difficult financial choices.”

The Batavian has been an innovative project since its founding, and I reported on it for my 2013 book “The Wired City.” Owens launched the site as a pilot project for GateHouse Media in 2008, when he was the chain’s head of digital publishing. After GateHouse eliminated his position the following year, he took The Batavian with him and has been at it ever since. (GateHouse, as you know, merged with Gannett in 2019 and took its name.)

You’ll be able to hear Owens talk about The Batavian on an upcoming episode of the “What Works” podcast.

Two celebrated hyperlocals in N.J. will merge; plus, a 2009 visit with Baristanet’s founder

Rooster mural in Montclair, N.J. Photo (cc) 2016 by Rob DiCaterino.

If you felt some distant rumblings coming from the general direction of New Jersey a few days ago, I’m here to tell you why. A pioneering local blog in that state, Baristanet, will merge with a six-year-old community news organization, Montclair Local. Liz George, the editor and publisher of Baristanet, will served as publisher of the combined outlet.

This is a huge development in the world of hyperlocal news. I was especially struck by the news that the Local will drop its print edition, which had been a key part of its business strategy. The Local’s digital content is free, but the print weekly has served as an extra goodie for donors. Last year, when I was in Montclair to report on the media ecosystem in New Jersey, ProPublica editor-in-chief Stephen Engelberg, who serves on the Local’s governing board, joked that the print edition was the Local’s “tote bag.”

Now that will be going away, with the final print edition coming out this Thursday. According to the announcement, published in both the Local and Baristanet: “Putting out a print edition consumed more than 40 percent of the Local’s revenue from donors and advertisers, and trustees concluded it was better to spend the Local’s funds to generate more stories.”

The two outlets will continue separately through the summer while George works on a new website that will bring together both sites, according to the announcement. Baristanet was a for-profit, but the new, expanded Local will continue to be a nonprofit.

The spring of 2022 was actually my second visit to report on local news in Montclair. I also paid a visit in 2009 to meet with Debbie Galant, who founded Baristanet in 2004 and who at that time was regarded as a leader in DIY local journalism. George joined Baristanet several months after the founding. I wrote about Baristanet in my 2013 book, “The Wired City,” and I’m including an excerpt below.

Baristanet, founded in May 2004, was among the first successful hyperlocal sites. It was an inspiration for Paul Bass, who keeps a frisbee from a Baristanet anniversary party on the wall of his office at the New Haven Independent. Centered in the New York City suburb of Montclair, New Jersey, Baristanet in 2011 covered seven communities — six of which had their own Patch sites. AOL reportedly chooses communities based on an algorithm comprising 59 factors, including advertising potential, voter turnout and household income. Clearly the affluent, well-educated suburbs served by Baristanet were exactly what AOL was looking for.

Despite the threat posed by Patch, Baristanet continued to do well, according to Galant. When I interviewed her in 2009, she told me that revenues for the site were between $100,000 and $200,000 per year. Two years later, she said revenues were “a bit higher than $200,000, but our expenses have gone way higher too.” She did not specify what those expenses were. Unlike Howard Owens at The Batavian, Galant and her business partner, Liz George, had always treated Baristanet as a sideline, doing much of the work themselves but hiring part-time editors and designers as needed to accommodate their other projects — which, in Galant’s case, includes having written several published novels.

I met Galant on a rainy day in June 2009 at a Panera — a then new advertiser — just outside Montclair’s downtown. At the time, it was covering only three communities, and had just recently incorporated a parenting site that was renamed Barista Kids. Galant said she got the inspiration for starting Baristanet after losing her freelance position as a local columnist for The New York Times and then meeting Jeff Jarvis, an online-news expert and the author of the blog BuzzMachine. “He was talking a mile a minute about this idea of hyperlocal blogging and hyperlocal journalism. And the idea just really clicked in my head,” Galant said. “I thought it would be a fun thing to do. I’d been freelancing for years and years, and I saw that you could be vulnerable as a freelancer. I’d rather be a publisher.” The name of the site was based on the idea of “a virtual coffee shop,” she said, explaining, “In the old days you used to go to your bartender and talk to your bartender. These days, everybody’s at the coffeeshop, so you talk to your barista.”

The tone of Baristanet is conversational, fun and a bit snarky, and Galant is adept at involving readers. For instance, during an outbreak of swine flu just a few days before our meeting, she quoted from a news release issued by the Montclair public schools promising that students would not be punished if they were absent because of illness. “Does the usual policy for staying home sick from school include reprisals and punishment?” Galant asked. The brief item attracted 37 comments. “A traditional journalist would have taken the same tip, would have gone to the schools, interviewed the superintendent, interviewed the high school principal, and attempted somehow to find a whole bunch of representative parents and students to get their input,” she told me. “But they wouldn’t have actually gotten it nearly as efficiently or with as widespread a response from parents as from just having put it on the website.”

Baristanet is tracked by Quantcast, which found that the site attracted between 27,000 and 35,000 unique visitors a month for the first half of 2011. Galant told me her internal count was about double that, between 50,000 and 70,000 uniques per month.

As with The Batavian and its competition, The Daily News of Batavia, Baristanet could not compete head-to-head with the weekly Montclair Times or other newspapers in its seven communities, even though Galant said she had sometimes beaten the Times on breaking news. Times editor Mark Porter told me he had 12 full-time and one part-time editorial employees working for him, a startlingly high number for a weekly newspaper. Porter was dismissive of his online competition, saying, “Baristanet’s skill is getting press releases and people throughout the community who email or text-message breaking news to people who sit in front of computers.” Despite his rather caustic assessment of the competition, there was no doubting his dedication or sincerity as he described the hours he and his staff put in and the local meetings and events they covered. [Note: The Montclair Times today is part of the Gannett chain. When I visited Montclair last year, the Times appeared to be slightly more robust than the hollowed-out remains of Gannett’s weeklies in Eastern Massachusetts, though it was a shadow of the paper that Porter had presided over.]

When I asked Galant in 2009 how long she wanted to keep doing Baristanet, she replied, “I really don’t know.” She surprised me by saying that she wished The Star-Ledger’s parent company, New Jersey Media, had tried to acquire Baristanet before its own business problems became so acute that they precluded such a move. “I think that’s every startup business’s dream — somebody coming in and offering a whole big pot of money,” she said. “It would have made tremendous sense. Of course, no newspapers have any money anymore, so that’s not going to happen.” Two years later, when I asked about her battle with Patch, she replied, “Competition is no fun, but we’re hanging in there.” (In the summer of 2012 Galant left Baristanet in order to accept a position at Montclair State University, with Liz George continuing as the editor.)

More: Here are a couple of video interviews I conducted with Galant and Porter all those years ago.

Cambridge Day takes on an advisory board and seeks to raise $75,000

Cambridge City Hall. Photo (cc) 2007 by Thomas Steiner.

Over the course of several months, I’ve talked with a few people in Cambridge about the dearth of local news in that city. Its only newspaper, Gannett’s Cambridge Chronicle, has been without a reporter since last year. The leading news outlet, Cambridge Day, does good work, but it was essentially a one-person operation headed by Marc Levy on a volunteer basis. I encouraged Marc and two members of a group seeking to start a nonprofit, journalists Mary McGrath and Susanne Beck, to try to work together.

Now it looks like that’s exactly what’s going to happen. Cambridge Day, which Levy founded in 2009, has published a story announcing that the nonprofit group is going to head up a fundraising campaign with a goal of raising $75,000. “The fundraising is not only to ‘save’ Cambridge Day, but to help it take a leap forward in quality and comprehensiveness,” according to an article published by the Day on Tuesday. The campaign will be headed up by an organization called Cambridge Local News Matters. It’s not clear what Marc’s role will be moving forward, but it’s surely a good sign that he wrote the article announcing the changes.

You could go back several decades, to when the Chronicle was independently owned and competed with the Cambridge Tab, and even then it was often said that Cambridge was the largest city in the country (population: 118,000) without a daily newspaper. The Day has been indispensable since its founding, and I wish Marc and his new partners all the best.

At Gannett, those better days that are just around the corner never seem to arrive

Boston Globe columnist Brian McGrory wrote Wednesday that he’d heard from Gannett chair and chief executive Mike Reed after his recent piece detailing the devastating cuts that the country’s largest newspaper chain had endured. Reed told McGrory that the worst was over and that happy days were almost here again. McGrory wrote:

“My full intention is to do more journalism, not less,” Reed said. “We’re so close to that inflection point that the major cuts are behind us.” Moments later, for emphasis: “The cuts are behind us.”

Is that a commitment, Mike?

He hesitated. I swear I could hear the loud warning beeps from a truck backing up. “What I’m saying is we’re near the end of the process on the reduction side,” he replied. Then this: “I wouldn’t say that I don’t know there’ll be one more cut.” And finally: “We’re in the ninth inning of the game.”

It sounded so familiar. I’ve written about Gannett and its predecessor company, GateHouse Media, many, many times over the years. For instance, after I wrote for GBH News in June 2019 that GateHouse seemed to be imploding, Reed contacted me to push back. He wouldn’t put any of our phone conversation on the record, but he didn’t need to. Because it’s been the same old song for a very long time.

How long? Let’s go back to August 2008, when GateHouse’s stock price was taking such a pounding that it could not longer be traded on the floor of the New York Stock Exchange. In a conference call with investors, according to the Rochester Business Journal, Reed was full of assurances that the worst was over. “Our results, while below our estimates, are holding up quite well, and our capital assets put us in a position of strength going forward,” he said. And: “We believe our assets will continue to produce strong cash flows and when the economic cycle improves we are positioned in our small markets to grow.”

If that’s not enough déjà vu for you, consider that, around the same time, the website 24/7 Wall St. named Reed “The Most Overpaid CEO Of The Day,” noting that he was being paid a salary of $500,000 to preside over a company whose stock price was down 90%. As readers of Media Nation know, Reed was just getting started. He received $7.7 million in total compensation in 2021, and was rewarded with another $3.4 million in 2022. Meanwhile, Gannett newspapers are being shut down and journalists laid off by the score.

In October 2008, I wrote a piece for CommonWealth magazine about GateHouse’s operations in Eastern Massachusetts — around 100 community newspapers, mostly weeklies, that it had acquired from Boston Herald owner Pat Purcell, who had in turn purchased them from Fidelity Capital a few years earlier. The theme of the day, inevitably, was newsroom cuts. But Kirk Davis, then the president and publisher of GateHouse Media New England, was, to invoke an old cliché, cautiously optimistic:

“We feel that community newspapers have a very viable future and, juxtaposed against the trend overall, are performing very well,” says Davis, arguing that small, community newspapers have a competitive advantage over major metros because their locally focused content is not available elsewhere. “I believe in it, and I believe it’s going to stay strong.”

Five years later, the company sought Chapter 11 bankruptcy protection so that it could restructure $1.2 billion of the debt it had taken on in assembling its newspaper chain.

The cutting continued after GateHouse emerged from bankruptcy, sometimes slowly, sometimes quickly, but always with the same downward momentum. In late 2019, GateHouse merged with Gannett, a longtime publisher that was also notorious for running its papers on the cheap. The new Gannett was saddled with $1.1 billion in debt, and a lot of that has been financed by cutting the workforce in half, as Axios reported recently. Davis left shortly after the merger, but Reed continues to decimate newsrooms, just as he continues to insist that better days are just around the corner, as he told the trade publication Editor & Publisher last November.

The problem with Gannett, as always, is that better days for Reed never translate to better days for his newspapers, his journalists or the communities they serve. McGrory’s skepticism is warranted.

Shed a tear for Gannett’s Reed, whose compensation has been cut to just $3.4 million

I guess we’ll have to start referring to Mike Reed as Gannett’s $3.4 million man.

According to Gannett’s just-released proxy statement for 2022, Reed, the newspaper chain’s chair and CEO, received nearly $3.4 million in total compensation last year, down from $7.7 million the year before. That’s a decline of 56%, but it’s still a healthy pay package for someone who has wreaked so much destruction on the local news business. It’s also 66 times more than the median salary ($51,035) earned by Gannett employees in 2022, as Don Seiffert observes at the Boston Business Journal. Seiffert broke the news about Gannett’s latest numbers on Friday afternoon.

The main difference in Reed’s compensation package is that he received just $2 million in stock awards in 2022, down from about $6 million in 2021. His base salary was cut slightly as well, from $900,000 to $859,615, but he also received a bonus of $513,652 in 2022, which he did not get in 2021. Finally, he got a 401(k) match of $6,184 in 2022, something he didn’t get in 2021. I guess we can refer to that last as rubbing-it-in money, since Gannett suspended 401(k) matches for its employees last October. If they were restored later on, I haven’t heard about it.

Gannett’s chief financial officer and chief accounting officer, Douglas Horne, received nearly $2.2 million in 2022, up from about $1.75 million the year before. And all but one of Gannett’s nine non-executive board members continued to receive in excess of $200,000 for their part-time work — which, as I reported last August, was at least generous, and perhaps excessive, when compared to other publicly traded companies. You’d think that would especially be the case for Gannett, whose stock price opened 2022 at $5.54 a share and closed the year at $2.03. (It’s now down to $1.87.)

Gannett is our largest newspaper chain, but it’s hard to say exactly how large. At one time it published more than 200 dailies and a slew of weeklies, but it’s been closing weeklies in droves over the past few years. Just last week, Sara Fischer of Axios reported that Reed was predicting the closure of more papers moving forward. Just recently a knowledgeable industry observer told me that they wouldn’t be surprised if Gannett got down to about 30 dailies, including its flagship, USA Today, and zero weeklies in the not-too-distant future.

Gannett’s annual meeting is scheduled for June 3. If the past is any indication, though, the only complaint will be that Reed hasn’t cut enough.

Maine publisher Reade Brower says he’s ready to move on. So what comes next?

Portland Harbor. Photo (cc) 2021 by Paul VanDerWerf.

Maine newspaper publisher Reade Brower is getting ready to move on. Michael Shepherd and Lori Valigra of the Bangor Daily News, the only daily in Maine that Brower doesn’t own, reported on Thursday that the publisher is seeking to wind down his stewardship of the Portland Press Herald, four other daily papers and a number of weeklies.

In a follow-up by the Press Herald’s Eric Russell, Brower sounded like he isn’t in any hurry, and that he was not yet sure what the transition might look like. Brower put it this way in a memo to the staff:

The truth is I am beginning the search for what’s next, whether that be a new steward or perhaps partners willing to join me in carrying the torch. We are watching new ownership models emerge across the country from B-corporations to nonprofit efforts. Transparency has always been a pillar of journalism, and it’s important to me personally. That said, people will speculate because it is human nature. Over the past couple of years, I have been approached and looked at different pathways for the future but did not pull the trigger — either I wasn’t ready, I still felt my job was not completed, or the path just didn’t feel right.

A B-corporation is another name for a public benefit corporation — for-profit that is under no obligation to maximize earnings, allowing revenues to be reinvested in the mission. In the news world, some well-known B-corps include The Colorado Sun, Lookout Santa Cruz and, closer to home, The Provincetown Independent.

Brower, by all accounts, has been a decent steward of his Maine properties. More important, he’s kept the national chains out of the state, and he may well have outlasted them. Gannett is getting rid of papers, as Sarah Fischer of Axios observes, so it would be unlikely that the company would bring its special brand of looting and pillaging newsrooms to Portland The hedge fund Alden Global Capital hasn’t acquired anything for quite a while, so perhaps we can hope that its executives are content with their current holdings. As I told Russell, “Whether this has a happy ending or not depends on who steps forward as buyer.” If Brower’s memo is any indication, he cares about his legacy.

Brower came in after a tumultuous period at the Press Herald, which I recounted in my book “The Return of the Moguls.” In 2008, the paper’s then-owner, The Seattle Times, sold it to a businessman named Richard Connor, who promptly ran it into a ditch. Four years later, the paper was nearly sold to Aaron Kushner, a wealthy Boston-area tech entrepreneur who had previously been spurned in his bid to purchase The Boston Globe.

Union leaders at the Press Herald rebelled at Kushner’s demand for concessions. Kushner moved on, buying the Orange County Register in Southern California and steering it into bankruptcy after a massive, ill-advised expansion failed to produce the revenues he was hoping for. The Press Herald’s fortunes, meanwhile, began to improve. First, billionaire Donald Sussman stepped forward and ran the paper for a few years. Then, in 2015, Sussman was succeeded by Brower, a printer who lacked Sussman’s deep pockets but who cared about news coverage and kept cuts to a minimum.

The Press Herald and its affiliated newspapers have a reputation for doing things the right way, and Brower surely deserves credit for that. I hope this week’s news means the continuation of what he has accomplished — and not the beginning of the end.

Gannett seeks correction to Nieman Lab article

Last Friday I disputed Joshua Benton’s reporting in Nieman Lab on the extent of the decline in paid circulation at USA Today, owned by Gannett. Now Gannett has asked for a correction. I’m sure Gannett would take issue with my reporting as well; as I noted in an update, both Benton and I may have been led astray by the lack of transparency with which Gannett reports its numbers.

In fact, there’s a statement within Gannett’s request for a correction that is just pure gold regarding the circulation figures that it reports to the Alliance for Audited Media: “AAM data is used to help advertisers understand publisher reach in specific markets, not to infer readership or paid circulation.” Huh?

Surely it is news to many of us that terms such as “print readership,” “print and digital readership” and “circulation” ought to be defined by something other than their plain English meaning. In my earlier post, I concluded that it is impossible to know what Gannett’s publicly reported numbers mean. This only confirms it.

Gannett is wrecking its papers, but USA Today’s circulation is not down 93%

Update: Trying to write about Gannett and accurate numbers simply isn’t possible. One reader notes that USA Today didn’t start offering digital subscriptions until 2021 — and yet Gannett was reporting paid (or unpaid?) digital for USA Today to the Alliance for Audited Media starting at least in 2012. So how is that possible? Another reader hints at an answer — if you subscribe to any Gannett paper, or maybe just any Gannett daily, you get a subscription to USA Today included. Or you used to. Maybe that changed after USA Today’s paywall went up.

So it could be that USA Today’s paid circulation was far lower in 2018 than what it reported to AAN — not the 2,632,392 that Joshua Benton used, and not the 1,584,462 that I used. Instead, maybe what we ought to look at is the 631,076 print figure. And since USA Today seemed to be selling an e-paper option as well, that would bring total paid circulation in 2018 to 654,743.

Now let’s go for an apples-to-apples comparison. The 156,453 that Benton reported for USA Today’s current paid circulation is the total of print and replica. That’s a nausea-inducing decline of 76% over the four-year period, but that’s still not nearly as much as the 93% Benton’s numbers showed. It’s also a lot worse than the 33% estimate that I offered.

But wait! USA Today has been selling paid nonreplica digital subscriptions for nearly two years now. How many? As I explained, Gannett stopped reporting that figure a while back, so we don’t know. Surely it’s not the “zero” that Gannett claims on its most recent report to AAN. (It should at least be one; I mean, I bought one.) We simply can’t know how by how much USA Today’s paid circulation has declined without knowing that important figure, or whether subscriptions to other Gannett papers are included. Without access to Gannett’s internal numbers and insight into exactly what they mean, it’s an unsolveable mess.

Earlier: Did USA Today’s paid circulation drop by 93% between 2018 and 2022? The near-certain answer to that is no — yet that’s the astonishing claim that Joshua Benton makes at Nieman Lab. I knew there was a problem with his numbers as soon as I saw them, mainly because I recently put some effort into figuring out how USA Today’s corporate owner, Gannett, compiles its circulation figures. So let’s dive in.

Benton reports that USA Today’s paid circulation in the third quarter of 2018 was 2,632,392 and then fell in the third quarter of 2022 to just 180,381. That’s a staggering loss of 2,452,011, or 93%. But as I’ll show, much of that apparent loss is the result of a change in the way Gannett reports its paid digital circulation to the Alliance for Audited Media.

What I was able to dig up at AAN uses slightly different time periods compared to what Benton found. I’m going to use all of 2018 rather than the third quarter because the latter wasn’t available when I looked. But it should tell the same tale. It shows that the average weekday circulation that year was 2,708,983, which is in the same ballpark as what Benton reported. A lot of that, though, consists of “affiliated publications” such as Local/Life and Sports Weekly. The circulation of the paper alone was 1,584,462. Now, pay attention to the following breakdown, because it will prove important:

Print: 631,076
Digital replica: 23,667
Digital nonreplica: 929,719

“Digital nonreplica” is the term for digital subscribers who access the website but don’t bother with the e-paper. As you can see, it comprises the vast majority of digital subscriptions — and, at some point, Gannett simply stopped reporting that number.

Now let’s look at the third quarter of 2022. Paid weekday circulation is reported as 180,381 at the top level at ANN (the figure Benton used) or 156,453, which is the number that pops up at AAN if you click through. That latter number comprises 132,176 for print and 24,277 for digital replica (the 156,453 figure, which I didn’t immediately grasp) — and zero for digital nonreplica. So, yes, print circulation is down by a stunning 79%, which may have more than a little to do with the COVID-19 pandemic. USA Today, after all, was a staple of hotels for many years. But digital replica is up slightly. And digital nonreplica simply isn’t being reported.

I encountered this recently when I was analyzing some numbers for Gannett’s Burlington Free Press in northern Vermont. I discovered that, not only had Gannett stopped reporting digital nonreplica, but that — according to confidential internal reports I had obtained — it was underreporting its total paid digital circulation by about half.

Gannett is trying very hard to sell digital subscriptions for its incredible shrinking news outlets. Keep in mind, too, that people don’t buy subscriptions to the replica edition — they buy digital subscriptions, period, and the papers themselves report how many readers are accessing the e-paper so they can tout that number to advertisers. (AAN recently explained all of this to me. As you’ll see, it’s pretty complicated.) In other word, Gannett is telling AAN how many subscribers are accessing the e-paper, but they’re keeping total digital circulation to themselves.

Now, I’m going to take a leap here and assume that USA Today’s total digital circulation was the same in 2022 as it was in 2018, or maybe even a little higher. I base that on several factors: digital circulation was up at all of Gannett’s New England properties, according to the confidential report I mentioned; USA Today’s digital replica circulation was up slightly; and Gannett has been pushing digital subscriptions hard. I even signed up for one, and it was a great deal — with a little fiddling, I can use it to access every Gannett paper in the country. Of course, there’s little in them.

With all that in mind, I came up with a guesstimate that USA Today’s paid circulation in the third quarter of 2022 was about 1,056,000. I’m building in a nonreplica figure of 900,000, a decline (as I said, unlikely) compared to 2018. Put all that together, and using a 2018 circulation figure of 1,584,462 (that is, not counting “affiliated publications”), and I come up with a drop of 33% between 2018 and 2022. Now, that’s still a lot — but it’s also in line with a lot of non-Gannett papers that Benton used for comparison.

Everything else Benton says about Gannett is right on target. The company has decimated its papers, is closing them and selling them off, and generally appears to be squeezing out the last few drops of revenue they can muster before people like top executive Mike Reed, the $7.7 million man, walk away. It’s an outrage, and we really can’t call attention to it often enough.

But the crazy circulation drop at USA Today and other Gannett dailies is more a function of Gannett’s decision to stop reporting paid digital nonreplica subscriptions than it is an actual measurement of readers fleeing for the exits.