Marty Baron on the rise of specialized communities

Marty Baron at The Washington Post. Click on image to watch interview.
Marty Baron at The Washington Post. Click on image to watch interview.

Based on recent statements they’ve made, I’m wondering if Washington Post executive editor Marty Baron may have a more sophisticated view of what the Internet has done to newspapers than the Post’s incoming owner, Amazon.com founder Jeff Bezos.

Bezos, who visited the Post’s newsroom earlier this month, seemed to endorse a classic paywall model, arguing that he was convinced people were willing to pay for the “daily ritual bundle” that The Washington Post represents. That brought a retort from Post blogger Timothy B. Lee, who wrote:

That daily ritual got blown up for good reason. 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. In the long run, it’s a recipe for an aging readership and slow growth.

Indeed, many news observers have been arguing for years that one of the Internet’s most profound effects on journalism is “disaggregation” — that in a post-industrial environment, with news no longer tied to the enormous costs of printing and distribution, it makes no sense for international and local news, obituaries and comics, grocery store coupons and the crossword puzzle all to appear in the same place.

Baron, the editor of The Boston Globe until late last year, comes up with another metaphor, not original to him but nevertheless key to understanding what has happened — the decline of geographic communities and the rise of communities built around shared interests. In an interview with fellows from the Joan Shorenstein Center for the Press, Politics and Public Policy, at Harvard’s Kennedy School, Baron talks about the difficulty of putting together (to cite one example) a newspaper sports section for Red Sox fans when there are speciality media devoted to nothing but sports.

This development, Baron says, was furthered by the rise of Twitter and other social media, which bring readers in to a news site to read just one article. How can news organizations make money from that? Baron puts it this way:

My sense is that people are going to their passions. Their passions aren’t always based on geography. Newspapers have traditionally been based on geography. We have a community here. We have a community in Miami, a community in Boston, a community in Los Angeles. The assumption was that people were members of that community actually would want to have a product that covered the full range of things in that community. What I observed over time was that, in fact, the sense of community wasn’t nearly as strong as the other passions that people had. In fact, community wasn’t necessarily such a strong passion. It was much more important to them that they were an aficionado of a particular type of music, or that they were a member of a particular religious denomination or that they were obsessed with a particular sports team, than the fact that they lived in Los Angeles.

Unlike some journalists, Baron thinks it was perfectly logical to give away news for free in the early years of the Internet, both because of the need to get big online in a hurry and because there was every reason to believe that advertising would pay the bills. It was only after ad revenues failed to materialize (and even began to drop because of the ubiquity of online ads), he says, that news organizations reluctantly moved to paywalls.

The transcript of Baron’s full interview is here, and it is well worth reading — or watching, as there is a video version of the interview as well.

Baron was one of 61 people interviewed for “Riptide,” a project carried out by Shorenstein fellows John Huey, Martin Nisenholtz and Paul Sagan. (The site was designed by the Nieman Journalism Lab, which also hosts it — but which played no role in the editorial content, as Lab director Joshua Benton explains.) “Riptide” is a comprehensive, valuable resource — but it has proved to be controversial since its release because it’s not comprehensive enough.

As Kira Goldenberg writes for the Columbia Journalism Review, all but five of the 61 interview subjects are men, and only two of the subjects are non-white. Goldenberg says that efforts have begun to produce a counter-report that will be more diverse. In offering a few nominations of her own, Northeastern University graduate student Meg Heckman adds:

It’s unfortunate that, in telling the latest chapter of journalism history in a fresh, narrative format, the authors of Riptide make an old mistake by continuing to devalue the contributions of women.

My own view is that “Riptide” represents a good start — but that there’s no reason for Huey, Nisenholtz and Sagan not to keep going so that it eventually grows into a truly comprehensive, diverse history of how the Internet disrupted journalism.

(Disclosures, of which there are several: I am an unpaid contributing writer for the Nieman Journalism Lab. I have long had a friendly relationship with folks at the Nieman Foundation and at the Shorenstein Center. Heckman is a student of mine, and I am a student of hers.)

A new book, and an event for “The Wired City”

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wasn’t ready to announce this, but Mark Shanahan of The Boston Globe beat me to it. My next book will be about a new era of newspaper owners and how they are going about remaking their struggling businesses.

The book will focus on Amazon.com founder Jeff Bezos, who is in the process of buying The Washington Post; Red Sox principal owner John Henry, who’ll soon add the Globe to his holdings; and Aaron Kushner, a businessman who tried to buy the Globe and then Maine’s Portland Press Herald before reeling in the Orange County Register. It’s a logical next step in my research into new ways of paying for journalism.

The idea grew out of conversations with Steve Hull, an acquisitions editor at University Press of New England. We’d been trying to do business together for a couple of years, pitching possible projects back and forth. There’s no contract at the moment, but I expect to write the book for a yet-to-be-named new trade division of UPNE. No, I won’t tell you the working title, and I expect it will change long before the publication date — probably sometime in 2016.

Meanwhile, I still have a current book to flog. I’ve got a few events coming up for “The Wired City” in the next month, including one at the Boston law firm of Prince Lobel this Thursday at 5:30 p.m. It’s free, and you can RSVP here. Cosponsors are the New England First Amendment Coalition and the New England chapter of the Society of Professional Journalists.

“The Wired City” was published by University of Massachusetts Press, an academic publisher I would recommend to anyone. I’ve had a great relationship with acquisitions editor Brian Halley, publicist Karen Fisk and company, and I can’t say enough good things about them.

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

BBJ scores big on two local media stories

The Boston Business Journal has come up aces during the past week with two meaty stories on local media news.

• A shaky future at the Globe. The first, published last Friday, found that confidential financial documents put together by the New York Times Co. suggest The Boston Globe was in slightly worse shape than outside observers might have imagined when the paper and several affiliated properties were sold to Red Sox principal owner John Henry for $70 million in early August. The BBJ’s Craig Douglas writes (sub. req.):

In essence, Henry is buying into a borderline breakeven enterprise already teed up for $35 million in cost cuts over a two-year period before he even walks through the door.

How bad is it? According to the documents cited by Douglas, advertising revenue at the New England Media Group (NEMG) — mainly the Globe, the Telegram & Gazette of Worcester and Boston.com — is expected to be 31 percent below the 2009 level next year. And paid print circulation revenue continues to slip despite price increases at the Globe and the T&G.

You may have heard people say at the time of the sale that Boston.com was worth more than the Globe itself. Well, I don’t think you’ve heard me say it. Print advertising remains far more valuable than online, and that holds true at NEMG as well. Douglas writes:

The Globe is by far the biggest revenue generator of the group, accounting for 69 percent, or about $255 million, of its forecasted revenue this year. The Telegram & Gazette in Worcester is next in line at $42.5 million in forecasted revenue this year, while Boston.com is on track to book about $40 million.

Print products account for about 88 percent of NEMG’s total annual revenue. That heavy reliance on print-related advertising and circulation revenue has proven particularly problematic of late, as both categories have lost ground since 2009 and are forecasted to see continued deterioration for the foreseeable future.

Douglas’ story is protected behind a paywall, but if you can find a print edition, you should. Suffice it to say that John Henry has his work cut out for him. The picture Douglas paints is not catastrophic. But it does show that the Globe is not quite as far along the road toward figuring out the digital future as some of us might have hoped.

• Tough times ahead for local papers. The other big media splash, which I linked to last night, is Jon Chesto’s analysis of the sale of Rupert Murdoch’s Dow Jones Local Newspaper Group (formerly Ottaway Newspapers) to an investment firm affiliated with GateHouse Media. The papers sold include three prominent Greater Boston dailies: The Standard-Times of New Bedford, the Cape Cod Times and the Portsmouth Herald, on the New Hampshire seacoast.

Chesto’s article is part of the BBJ’s free offerings, so by all means read the whole thing. It’s a real eye-opener, as he explains as best anyone can at this early stage what the sale and simultaneous bankruptcy of GateHouse will mean for local papers and the communities they serve. Unfortunately, indications are the news will be very bad indeed.

Fairport, N.Y.-based GateHouse, which publishes about 100 local papers in Eastern Massachusetts (including The Patriot Ledger of Quincy, The Enterprise of Brockton and The MetroWest Daily News of Framingham), will somehow be combined with the entity that holds the former Ottaway papers into a new company with the uninspired name of New Media (that may change). (Update: Chesto is a former business editor of The Patriot Ledger, which no doubt helped him write his piece with a real air of authority. And thanks to Roy Harris for reminding me of that.)

The deal with Murdoch — at $82 million, quite a bit more than I had anticipated — was done through Newcastle Investment Corp., a real estate investment trust that is part of Fortress Investment Group, which in turn is GateHouse’s principal backer.

The powers-that-be are already talking about slashing the Ottaway papers, which are among the best local dailies in the region. Chesto writes:

The papers are described as “under-managed by News Corp.” with “expense reductions of only 6% since 2010.” Translation: We can take more out of the expenses than News Corp. did. GateHouse has been an aggressive cost cutter in recent years, most notably with efforts to consolidate most of its page design and layout functions. That work was centralized in two locations, including an office in Framingham. But it will soon be downsized further, into one location in Austin, Texas.

Yes, Murdoch, the “genocidal tyrant,” is likely to prove a better steward of local journalism than the people he’s selling to.

Post-bankruptcy, with $1.2 billion in debt off their backs, the executives now running GateHouse are going to be empowered. According to a presentation put together for investors, Chesto writes, New Media may spend $1 billion to buy up local media companies over the next three years.

Chesto doesn’t say so, but if I were working for the Eagle-Tribune papers north of Boston (The Eagle-Tribune of North Andover, The Daily News of Newburyport, The Salem News and the Gloucester Daily Times), I’d be polishing that résumé right now. On the other hand, those papers have already been cut so much under the Alabama-based CNHI chain that it’s not like a new owner could do a whole lot worse.

At a time when there are reasons to be hopeful about the newspaper business thanks to the interest of people like John Henry, Jeff Bezos and Warren Buffett, the GateHouse deal shows that there are still plenty of reasons to be worried about the future.

Bezos voices skepticism on paywalls, advertising

Jeff Bezos
Jeff Bezos

Two quick takeaways from Jeff Bezos’ interview with The Washington Post, his first since announcing last month that he would purchase the paper for $250 million:

1. He sounds like an ink-stained wretch whining about The Huffington Post in denouncing the evils of aggregation, telling the Post’s Paul Fahri:

Even behind a paywall, Web sites can summarize your work and make it available for free. From a reader point of view, the reader has to ask, “Why should I pay you for all that journalistic effort when I can get it for free” from another site?

2. Despite his  skepticism about paywalls in the age of aggregation, Bezos is not ready to embrace the idea of free content supported by advertising. “I’m skeptical of any mission that has advertisers at its centerpiece,” he said. Good thing: newspaper ad revenues are in the midst of a stunning decline, as this chart demonstrates.

So, if paywalls aren’t the answer and neither is advertising, what will work? Relentless experimentation, combined with time, resources and patience. That’s what the Amazon.com founder brings to the table.

Photo (cc) via Wikimedia Commons.

Gene Weingarten’s presumptuous lecture

I’m genuinely puzzled by all the praise this Gene Weingarten column in The Washington Post has received. Not that the collapse of the news business is Weingarten’s fault, but I’m put off by the finger-wagging, lecturing tone — the exemplar of a failed industry presuming to instruct the visionary who just might save his job. Just listen to us, Jeff, and you’ll be fine! I assume Bezos will not take his advice.

A moment of optimism for the future of journalism

In just four days, a major metropolitan newspaper (The Boston Globe) and, now, a national newspaper (The Washington Post) have been sold to wealthy new owners with good-guy reputations who’ll be able to operate debt-free while they try to figure out how to turn around the fortunes of their beleaguered acquisitions.

John Henry’s buying the Globe is one thing. Jeff Bezos’ purchase of the Post is quite another. Post-Steve Jobs, is there a more visionary tech entrepreneur than the founder of Amazon? This is great and hopeful news for anyone concerned about the future not just of the newspaper business but of journalism.