What the sale of Axios may mean for Boston news consumers

See correction below.

What will the sale of Axios mean for Boston news consumers? It’s too early to tell. But there are a couple of intriguing tidbits that emerged from the news that the digital startup will be acquired by Cox Enterprises for $525 million, a story first reported by Ben Mullin of The New York Times.

First, the sale appears to be good news for Axios Local. According to Rick Edmonds of Poynter Online, Cox isn’t looking to walk away from the local newsletters it’s been building out in order to concentrate on national politics. Instead, Cox wants to accelerate the growth of Axios Local. “Our goal of 100 cities is in reach,” publisher Nick Johnston told Edmonds. “I have a list of 384 metropolitan areas in my office, and we cross them off one by one.”

Second, Cox already owns is a minority owner of WFXT-TV (Channel 25) in Boston, the home of Boston 25 News. Two months ago, Axios launched a Boston newsletter produced by veteran journalists Mike Deehan and Steph Solis. Although I’m in no position to know what the strategy will be moving forward, it’s not difficult to imagine Axios Boston amplifying big stories from Boston 25, or featuring Deehan and Solis on its newscasts.

Of course, you should always follow the money. Jim VandeHei, Mike Allen and John Harris never had an opportunity to cash in after they left The Washington Post to found Politico in 2007. VandeHei and Allen were the marquee names who left Politico in 2016 to start Axios (Harris stayed behind). Monday was their big payday.

By the way, Ellen Clegg and I interviewed Deehan recently on the “What Works” podcast, so please give it a listen.

Correction/clarification. Axios has been acquired by Cox Enterprises, which spun off its television and radio stations to the hedge fund Apollo Global Management a couple of years ago. Those stations now do business as Cox Media Group. But wait: Cox Enterprises continues to hold an ownership stake in Cox Media Group, including Boston 25. Earlier this year, it was announced that Cox Media would sell Boston 25, but it’s unclear whether Cox Enterprises would keep its minority stake. So what I said above could still happen, but it’s a lot more complicated than I had realized.

Axios Local is coming to Boston. Will it find a place on your smartphone?

Axios CEO Jim VandeHei on “Morning Joe.” Photo (cc) 2018 by MSNBC.

Previously published at GBH News.

Axios is building out its network of local newsletters. Here’s what it means to you:

  • Axios Local, as the initiative is called, will grow from 14 to 25 cities in the coming months, according to CEO Jim VandeHei — and could eventually reach as many as 100.
  • Why it matters: Boston will have its own Axios Local newsletter by mid-2022.
  • What you can expect: Axios says that “local reporters will deliver scoops, offer sharp insights and curate the best local reporting in our proven ‘Smart Brevity’ style.”
The big picture: Go deeper (1,038 words, 5 min. read).

All right, all right. You get the idea. Axios, the jittery, made-for-mobile news site that battles short attention spans with quick takes, boldface type and bullet points, has been expanding over the past year from national to regional news by unveiling a number of local daily newsletters.

Shades of its archrival, Politico? Well, not really. Because while Politico has gone deep with insider information for political junkies with newsletters like its Massachusetts Playbook, Axios is pursuing something different: general-interest news, heavy on business, lifestyle and entertainment, designed mainly to appeal to the young urban tech crowd.

In a “manifesto” released over the weekend, Axios put itself forth as nothing less than the savior that will solve the local news crisis. “Everyone needs — and deserves — high-quality reporting to understand the changes fast unfolding where they live,” the statement says in part. “Axios Local is the solution, synched elegantly to your smartphone.”

The trouble is, Axios Local is setting up shop in places that could hardly be considered news deserts. Instead of, say, Axios Worcester, Axios Newark or Axios Small City without a Newspaper, we’re getting newsletters targeted at affluent urban audiences in places that are already reasonably well served. And the Axios sites are so thinly staffed that it’s going to be difficult for them to make a real difference.

Let’s take Denver as an example. Thanks to the hollowing-out of The Denver Post at the hands of its hedge-fund owner, Alden Global Capital, Denver is often cited as a place that no longer has reliable regional journalism. But is that actually the case?

Not really. Consider that, even in its diminished state, the Post has a newsroom of about 60 full-timers. Colorado Public Radio has more than 60, including its Denverite website. The Colorado Sun, a highly regarded digital start-up, has 23 and continues to grow. About 90 full-time journalists work for a combined newsroom operated by The Gazette of Colorado Springs, Colorado Politics and the start-up Denver Gazette. Denver’s venerable alt-weekly, Westword, has about a half-dozen.

And Axios Denver? Two. As staff reporters John Frank and Alayna Alvarez put it in the introductory message you get when you subscribe, their aim is to provide some original journalism, curation from other news sources and “a little fun at the same time with everything from local beer picks to new outdoor adventures.”

Tuesday’s newsletter, for instance, ranged from an update on Denver’s homeless crisis to the latest on the Colorado wildfires, as well as how to take part in “Dry January.” (No, thank you.) The past week or so has consisted almost entirely of fire updates along with changes to the trash pickup schedule, things to do during the holidays and Colorado’s best beer and breweries.

Now, I can imagine that this would appeal to younger, well-educated professionals who don’t have much time for news and who are looking to connect with those of similar interests. But it’s certainly no competition for other news organizations in the Denver area.

And if that’s the case in Denver, it’s hard to imagine what sort of mindshare Axios is going to be able to command in a place like Boston, which has a healthy and growing daily newspaper, two thriving news-oriented public radio stations, a second daily, a multitude of television news operations and a number other niche and hyperlocal media. Even Politico’s aforementioned Massachusetts Playbook has competition in the form of State House News Service’s Masster List and CommonWealth Magazine’s Daily Download.

Nor will Axios Boston have the quick-hit general-interest-newsletter field to itself — although it is likely to be more robust than BosToday, a newsletter that launched recently under the auspices of a national network called 6AM City. BosToday promises “the inside scoop into what’s happening in your city in 5 minutes or less,” which I guess means that you’ll be a well-informed citizen by 6:05.

It will be interesting to see whether these advertising-backed new ventures can make enough money to justify their investment. In September, Sara Guaglione of Digiday reported that Axios Local was claiming it would pull in ad revenues of $4 million to $5 million in 2021, which isn’t bad for an estimated 30 to 40 full-time journalists; the eventual goal is to triple its staff. Rick Edmonds of Poynter reported around the same time that 6AM City has similar ambitions — a staff of about 30 that its executives hoped to build to around 100. The operation is being funded by venture capital, so look out below.

Axios Local is just the latest act in a drama that goes back to 2007, when Washington Post journalists VandeHei and John Harris left to found Politico after being turned down in their bid to launch a political website under their control inside the Post. They were joined by another Post journalist, Mike Allen, who wrote a widely read morning newsletter.

Politico is often accused by media observers (including me) of covering politics as a sporting event for insiders, and Allen’s newsletter was sometimes accused of crossing an ethical line by providing favorable coverage of advertisers, as the Post’s Erik Wemple has pointed out. But the project has certainly been successful.

Then, in 2017, VandeHei and Allen left to found Axios, setting up an intense rivalry with their former colleagues. Last year Politico was sold to a controversial German company called Axel Springer. According to Ben Smith, soon to be formerly of The New York Times, Axel Springer wanted to buy Axios, too, but VandeHei ended up nixing the deal. You have to imagine that there’s still some chance of that happening.

Axios Local began with Axios’ acquisition of the Charlotte Agenda in late 2020. The site, renamed Axios Charlotte, now has a staff of seven journalists, including an investigative reporter, according to its masthead. If the rest of Axios Local can grow into something equally robust, then VandeHei will genuinely have something to brag about.

For the moment, though, Axios Local is little more than an interesting project to watch as it tries to compete in a local news landscape that isn’t quite as barren as VandeHei and company seem to think it is.

It would have been nice if they’d genuinely tried to address the dearth of local journalism in places that have little or no coverage. Instead, they’re going where the money is. It’s an old story, and you don’t need boldface or bullet points to tell it.

The sale of Politico marks the end of a long duel between the Allbrittons and the Grahams

Katharine Graham believed that Joseph Allbritton hoped to take advantage of the 1975-’76 strike against The Washington Post. Photo by Reading/Simpson, noncommercial use permitted.

Robert Allbritton last week sold Politico to the German media company Axel Springer for $1 billion. Ben Smith, who was part of the launch back in 2007, wrote about the sale earlier this week in The New York Times. I wrote about the two-generation rivalry between the Allbrittons and the Graham family, who controlled The Washington Post until 2013, in “The Return of the Moguls.” Below is an excerpt.

Katharine Graham’s other crucial move was to endure a strike in 1975 in order to get the Post’s printing costs under control. So arcane were the work rules that when an advertiser submitted a finished ad (known in the post-hot-lead, pre-computer age as “camera-ready”), a union compositor still put together an equivalent ad, even though it would be discarded as soon as he was finished with it. In deciding to put a stop to such practices, Graham was fortunate in the viciousness of her opposition. At one demonstration, a leader of the union, Charlie Davis, carried a sign that read “Phil Shot the Wrong Graham,” a reference to Phil Graham’s suicide. On the night that the pressmen went on strike, some of them beat the night foreman and started a fire in an attempt to sabotage the machinery. Because of those actions they earned the enmity of the Newspaper Guild, which represented the reporters. With the paper’s journalists crossing the picket line, the Post was able to resume publishing after just one missed day, enabling them to break the strike. The benefits of being able to modernize production were immediate, as income grew from about $13 million a year to $24.5 million in 1976 and to $35.5 million in 1977.

Not all observers were sympathetic to the Grahams. Ben Bagdikian, a former Post national editor who spent much of his long, distinguished career after leaving the paper as an academic and a harsh critic of corporate journalism, wrote an article in the Washington Monthly attributing the strike to Katharine Graham’s earlier decision to go public. “The idiosyncratic publishers, whose integrity led them to ignore narrow economic arguments in favor of quality, and who as a result created America’s great newspapers, are disappearing,” Bagdikian wrote. “They were being replaced by profit-maximizing conglomerate owners. It is a forecast of trouble for independent journalism in the country’s most important news companies.” Graham recorded her response in a note to Ben Bradlee: “I am really embarrassed to think this ignorant biased fool was ever national editor. Surely the worst asps in this world are the ones one has clasped to the bosom.”

The Post’s rivalry with The Washington Star played a small role in the strike as well, a tidbit of interest mainly because of who owned the Star at that time: Joe Allbritton, a Texan who had acquired the paper from the Kauffmann family in 1974. Katharine Graham wrote that Allbritton declined to help the Post during the strike because, in her view, the only way the Star could stay in business was for the Post to fail. Allbritton sold the Star to Time Inc. in 1978, which closed it in 1981 even though Katharine Graham, Donald Graham and Warren Buffett had made overtures to set up a joint operating agreement under which both papers would be published.

The Allbritton family’s ambitions remained entangled with the Post for many decades to come. Years later, two Post journalists, John Harris and Jim VandeHei, were rebuffed when they proposed setting up a separate political website under the paper’s umbrella. They took their idea to Joe Allbritton’s son, Robert, who helped them launch Politico in 2007. With its hyperkinetic insider’s approach to covering politics, the site quickly established itself as a serious rival to the Post on one of its signature beats, although Politico was often criticized for emphasizing the superficial horse race aspects of politics.

Robert Allbritton also backed a site cheekily named TBD.com (for “to be determined”), edited by the former washingtonpost.com editor Jim Brady and the future Post media blogger Erik Wemple, which covered local news in the Washington area in conjunction with a television station the Allbrittons had owned since acquiring the Star. Fortunately for the Grahams, Allbritton lost patience with it within months of its 2010 launch, and in 2012 the site was shut down. Another Allbritton connection: About a year after Jeff Bezos bought the Post, he hired Frederick Ryan, a former Reagan administration official, to replace Katharine Weymouth as publisher. At the time that the move was made, Ryan was president and chief operating officer of Allbritton Communications and had served as Politico’s first chief executive.

The Post and Politico make for a fascinating contrast. Both companies are ensconced in brand-new headquarters on either side of the Potomac; Politico occupies part of an office tower in the Rosslyn section of Arlington, Virginia. The missions of the two organizations are very different. The Post is a general-interest newspaper with a substantial print presence. Politico is aimed at people in the professional political community, and though it publishes a small print product (daily when Congress is in session; weekly otherwise), it’s mainly digital. Yet if the ancient rivalry between the Post and The New York Times is mostly journalistic and symbolic, the Post’s rivalry with the Allbritton family has involved serious competition over whose news organization will prove to be more financially successful in the long run.

Correction: I have learned that the elder Albritton’s legal name was Joe, not Joseph. Unfortunately, it remains wrong in the book.

Billionaires’ bash: Big moves by Henry’s Globe, Bezos’ Post

Screen Shot 2014-09-03 at 10.40.06 AM

Previously published at WGBHNews.org.

Tuesday may have been the biggest day yet for billionaire newspaper owners John Henry and Jeff Bezos. Henry’s Boston Globe launched the long-anticipated Crux, a free standalone website that covers the Catholic Church. And Bezos replaced Katharine Weymouth as publisher of The Washington Post, bringing an end to the 81-year reign of the Meyer-Graham family.

At a time when the newspaper business remains besieged by cuts (including 22 Newspaper Guild positions at The Providence Journal this week, according to a report by Ian Donnis of Rhode Island Public Radio), Henry and Bezos are taking the opposite approach.

“You can’t shrink your way to success,” new Washington Post publisher Frederick Ryan told Michael Calderone of The Huffington Post. “Growth is the way to continue to build a strong news organization.” Ryan’s words were nearly identical to those of the Globe’s chief executive officer, Michael Sheehan, at the unveiling of the paper’s weekly political section, Capital, in June: “You can’t cut your way to success. You can only grow you way to success.”

First Crux. To my non-Catholic eyes, the site appears to offer an interesting mix of the serious and the not-so-serious. The centerpiece is John Allen’s deeply knowledgeable reporting and analysis, some of which will continue to appear in the Globe. (In late August, Publishers Marketplace reported that Allen is writing a biography of Pope Francis with the working title of “The Francis Miracle.” No publisher was named, but according to this, Time Home Entertainment will release it in March 2015.)

Crux national reporter Michael O’Loughlin has weighed in with features on Native American Catholics who blend tribal and Roman traditions and on the Vatican Secret Archives, whose contents turn out to be not as interesting as the phrase makes them sound. Vatican correspondent Inés San Martín covers stories such as Pope Francis’ call for peace in Gaza. WGBH’s Margery Eagan, a former Boston Herald columnist, is writing a column called “On Spirituality.” The events calendar makes it clear that Crux is a very Catholic venture.

There’s a lighter side to Crux, too, such as a trivia quiz on the saints and updates on football teams from Catholic colleges. Crux’s own reporters are supplemented with wire services, including the Associated Press, Catholic News Service and Religion News Service, as well as personal essays such as the Rev. Jonathan Duncan’s rumination on life as a married Catholic priest with children (he used to be an Episcopalian). Crux is also asking readers to write brief essays; the debut topic is illegal immigration.

Two quibbles. An article on the suffering of Iraqi Christians was published as a straight news story, even though the tagline identifies it as coming from “the pontifical organization Aid to the Church in Need.” When you click to “learn more,” you find out that Church in Need is an advocacy organization that is actively seeking donations. The disclosure is sufficient, but the placement strikes me as problematic. If Crux were a print newspaper, the article could have appeared on the op-ed page. Crux needs a clearly marked place for such material as well.

My other quibble is that content is undated, leaving the impression that everything is now. That can cause confusion, as with a John Allen Globe piece on immigration that refers to “Friday night” — and links to an Associated Press story published on Aug. 2. (Dates do appear on author bios.)

The site is beautifully designed, and it’s responsive, so it looks good on tablets and smartphones. There are a decent number of ads, though given the state of digital advertising, I think it would make sense — as I wrote earlier this summer — to take the best stuff and publish it in a paid, ad-supported print product.

Globe editor Brian McGrory, Crux editor Teresa Hanafin, digital adviser David Skok and company are off to a fine start. For more on Crux, see this article by David Uberti in the Columbia Journalism Review and this, by Justin Ellis, at the Nieman Journalism Lab.

***

A torrent of punditry has already accompanied the news that Frederick Ryan, a former chief executive of Politico, will become publisher of The Washington Post on Oct. 1.

The irony is thick. When Post political reporters John Harris and Jim VanDeHei proposed launching Politico under the newspaper’s auspices in 2006, they were turned down. Today, Politico often dominates the political conversation in a way that the Post used to (and, of course, sometimes still does). I’m not always a fan of Politico’s emphasis on politics as insider gamesmanship, but there’s no doubt the site has been successful.

As the Post’s own account makes clear, Ryan is a longtime Republican activist, and was close to both Ronald and Nancy Reagan. That shouldn’t affect the Post’s news operations, though it could affect the editorial page — hardly a bastion of liberalism even now. In another Post story, Ryan “endorsed” executive editor Marty Baron and editorial-page editor Fred Hiatt. Baron, a former Globe editor, may be the best newspaper editor working on this side of the Atlantic.

What concerns me is the strong scent of insiderism that is attached to Ryan. In an address to the staff, Ryan said one of his goals is “winning the morning,” according to a series of tweets by Post media blogger Erik Wemple (reported by Jim Romenesko). That might seem unremarkable, except that it sounds like something right out of the Politico playbook — um, make that “Playbook.”

A New York Times account by Ravi Somaiya dwells on Ryan’s obsession with the annual White House Correspondents Dinner, and quotes Ryan as calling it “an important event.” Those of us who find the dinner to be an unseemly display of Beltway clubbiness might agree that it’s important, but for different reasons.

Then again, if Ryan can fix the Post’s business model and show the way for other news organizations, all will be forgiven. The Post, like the Globe, has been expanding under new ownership. On Tuesday, the Post unveiled its most recent venture, The Most, an aggregation site.

Bezos’ track record at Amazon shows that he’s willing to take the long view. I suspect that he’s still just getting started with the Washington Post.

 

Ezra Klein and the problem with top-down control

Ezra Klein
Ezra Klein

This commentary was published earlier at the Nieman Journalism Lab.

What should a 21st-century news organization look like? A single entity, run from the top, with a common set of values? Or a loose network of related projects, sharing a brand and to some extent a mission but operating semi-independently?

With the likely departure of Ezra Klein from The Washington Post, the management of one of our last great newspapers might be showing signs of preferring the former approach. Klein, who founded and runs the widely read Wonkblog at washingtonpost.com, is reportedly leaving for a new venture, as yet undefined. According to Ravi Somaiya in The New York Times, Klein sought an eight-figure Post investment in the new project. Klein already has his own Wonkblog staff, but clearly he has something much bigger in mind — perhaps an all-purpose independent news organization along the lines of Talking Points Memo. (Although it wouldn’t be called Wonkblog — the Post owns the name and will be keeping it, writes The Huffington Post’s Michael Calderone, who broke the news about Klein’s proposal last month.)

We can’t know everything that went into the decision. Maybe it came down to money. But Wonkblog generates a hefty amount of Web traffic — more than 4 million page views a month, according to a profile of Klein in The New Republic last February. “It’s ‘fuck you traffic,’” a Post source told TNR’s Julia Ioffe. “He’s always had enough traffic to end any argument with the senior editors.” Apparently, that’s no longer the case.

Significantly, the Times reports that new Post owner Jeff Bezos was involved in the decision to let Klein leave. Last September, shortly after announcing his intention to buy the Post for $250 million, the Amazon.com founder lauded the “daily ritual” of reading the morning paper — which led to some chiding by one of the Post’s own journalists, Timothy B. Lee. Despite Bezos’ well-earned reputation as a clear-eyed digital visionary, he appears to have some romantic notions about the business he’s bought into. And allowing entrepreneurs such as the twentysomething Klein run his own shop inside the Post might not fit with that vision.

What makes the likely Klein departure even more significant is that in 2006 the Post, under the ownership of the Graham family, allowed John Harris and Jim VandeHei to walk out the door and start Politico. Now, I have a lot of problems with Politico’s gossipy “drive the day” approach. But as Times columnist Ross Douthat has observed, much of the media conversation about Washington politics has shifted from the Post to Politico, threatening one of the Post’s franchises. It would have been enormously beneficial to the Post if Politico had been launched under its own umbrella. And Politico itself might be better.

So if the Post is reluctant to loosen the reins, are there any other news organizations that are taking a different approach? Walt Mossberg and Kara Swisher walked away from their AllThingsD site at The Wall Street Journal and set up a new project called Re/code in partnership with NBC. Perhaps the most famous example is Nate Silver, who brought his FiveThirtyEight poll-analysis site to The New York Times a few years ago and then moved it lock, stock and barrel to ESPN. In that regard, I suppose you could say NBC and ESPN have embraced the network approach. To some extent you might say also that of The Huffington Post, as it combines professional journalists, unpaid bloggers (I’m one) and a dizzying array content — from Calderone’s excellent media coverage to the notorious Sideboob vertical.

Jeff Jarvis recently argued that Patch — AOL’s incredibly shrinking hyperlocal news project — might have stood a chance if AOL chief executive Tim Armstrong had taken a network approach. Rather than running cookie-cutter community sites from the top down, Jarvis asked, what if Patch had offered advertising and support services to a network of independent or semi-independent sites?

The problem with such scenarios is that media executives — and business leaders in general — are not accustomed to the idea of giving up control. Calderone reports that some Post staffers have long grumbled at what they see as “preferential treatment” for Klein, which suggests the depth of the problem. But entrepreneurial journalists like Harris and VandeHei, like Mossberg and Swisher, and like Silver and Klein have a proven track record.

Legacy news organizations need to find a way to tap into that success outside the old models of ownership and not worry about obsolete notions of employer-employee relationships. Reach and influence are what matter. And they are proving to be incompatible with the ambitions of young journalists like Ezra Klein.

More: After this piece was published at Nieman, Mathew Ingram responded at Gigaom with his own smart take.