John Henry – Page 15 – Media Nation

Six takeaways from BoMag’s big John Henry profile

This article was posted earlier at WGBH News.

The local media community has been buzzing since Tuesday, when Jason Schwartz’s 5,000-word Boston magazine article on the state of The Boston Globe under John Henry went live. The piece is chock-full of goodies, and you should read the whole thing. As you do, here are six takeaways for you to ponder.

1. It could have been a lot worse. Although we knew that Douglas Manchester, the right-wing hotel magnate who bought the San Diego Union-Tribune and unforgivably renamed it U-T San Diego, was interested in buying the Globe (he even threatened legal action after it was sold to Henry instead of him), it is nevertheless chilling to read Schwartz’s account of Manchester’s coming in and kicking the tires after the New York Times Co. put the Globe up for sale.

As I wrote in my book about online community journalism, “The Wired City,” Manchester has been described as “a minor-league Donald Trump” who uses his newspaper to promote his business interests as well as conservative causes such as his opposition to same-sex marriage.

In the Boston magazine article, Globe editor Brian McGrory tells Schwartz that “some potential bidders” — and by “some,” it’s clear that he’s including Manchester — would have “cut the living bejesus out of the place.” And Schwartz includes this delicious anecdote: “During the U-T San Diego presentation, people who were in the room attest, Manchester at one point instructed McGrory to call him ‘Papa Doug.’ McGrory did not call him Papa Doug.”

2. It’s official: The Globe is moving. Even before Henry won the Globe sweepstakes, it was clear that the next owner was likely to sell the paper’s 1950s-era Dorchester headquarters for redevelopment — a move that would presumably recoup virtually all of the $70 million Henry paid to purchase the Globe, the Telegram & Gazette of Worcester and related properties.

Henry has now made it official, telling Schwartz his goal is to move the paper to a smaller space with better access “in the heart of the city.”

Of course, the Globe still needs a printing press, not only for its own use but for other publications it prints under contract — including its tabloid rival, the Boston Herald. One likely possibility: the Telegram & Gazette’s printing facility in Millbury, which Henry said he was keeping when he announced recently that he was putting the T&G up for sale.

3. The two-website strategy needs an overhaul. Since the fall of 2011, the Globe has offered two websites: BostonGlobe.com, a paid-subscription site offering Globe content and a few extras; and Boston.com, a free site that’s been around since the mid-1990s.

The problem, Schwartz tells us, is that Boston.com, stripped of most Globe content, has been struggling, while BostonGlobe.com hasn’t produced as much revenue as Globe executives would like. The next step: a looser paywall for BostonGlobe.com to encourage more social sharing and a mobile-first Boston.com that’s still in development. (Joshua Benton has more at the Nieman Journalism Lab.)

4. Henry wants to reinvent the newspaper business. This week’s New Yorker includes a rather dispiriting account by George Packer of how Jeff Bezos and Amazon.com took over the book business. Anyone looking for signs that Bezos has a clear idea of what to do with The Washington Post, which he agreed to buy just days after Henry’s purchase of the Globe was announced, will come away disappointed — although he is, to his credit, spending money on the Post.

By contrast, Henry comes across as energized, bristling with ideas — peppering Brian McGrory with emails at all hours of the night — and getting ready to unveil new products, such as standalone websites that cover religion, innovation and other topics.

“I wanted to be a part of finding the solution for the Globe and newspapers in general,” Henry tells Schwartz. “I feel my mortality. I don’t want to waste any of the time I have left, and I felt this was a cause worth fighting for.”

5. Mike Barnicle is lurking off stage. If you were worried when you spotted Barnicle with Henry during the World Series, well, you were right to be. Barnicle, who left the Globe in 1998 after a career full of ethical missteps finally caught up with him, really does have Henry’s ear — and even supplied him with the email address of John Allen, the National Catholic Reporter journalist whom Henry successfully talked into coming to the Globe.

The old reprobate hasn’t changed, either, supplying Schwartz with a great quote that artfully combines religion with an F-bomb.

6. The executive team is now in place. By accepting publisher Christopher Mayer’s resignation, naming himself publisher and bringing in former Hill Holliday president Mike Sheehan as his chief executive officer, Henry has completed a series of moves that have remade the top layer of Globe leadership. McGrory is staying. Andrew Perlmutter, who made his bones at Atlantic Media and The Daily Beast, has replaced Jeff Moriarty, who left for a job in Britain, as the Globe’s chief digital strategist.

That’s not to rule out further change, especially if Henry’s goals aren’t met. But the sense you get is that Henry — to use a Red Sox analogy — now has his Larry Lucchino/Ben Cherington/John Farrell triumvirate in place. No doubt they all realize that winning a world championship is a lot easier than finding a profitable way forward for the beleaguered newspaper business.

Can Aaron Kushner go the distance?

Aaron Kushner speaking in April 2013 at California State University, Fullerton.

This commentary was published earlier at The Huffington Post.

Has Orange County Register owner Aaron Kushner run into nothing more than a bit of turbulence from which he can recover? Or do the layoffs he announced last week show that his plan to resuscitate the newspaper business by hiring more journalists and doubling down on print is fundamentally flawed?

I hope it’s the former — not just because I’d like to see him prove everybody wrong (including me) about the future of news, but because I’m planning to include him in a book about a new breed of media moguls who are using their personal wealth and smarts to innovate their way toward a brighter future. (News of the layoffs was broken by Gustavo Arellano of OC Weekly, which has taken a jaundiced view of Kushner’s ownership.)

Trouble is, there have been hints previously that Kushner, 40, lacked the sheer financial firepower of Boston Globe owner John Henry or Washington Post owner Jeff Bezos. I’ll get to that in a moment. But first, a little background on what’s unfolding in Southern California.

Kushner, who bought the Register in 2012 for $50 million, was the most celebrated new newspaper owner in the country before he was eclipsed in August of last year by Bezos and Henry. “Can Aaron Kushner save the Orange County Register — and the newspaper industry?” asked the Columbia Journalism Review last May. As CJR’s Ryan Chittum explained it, Kushner’s vision was based on:

Lavish attention to the print product, including more pages and an upgrade in the quality of paper.
A move away from free or even reduced-price content online, with Internet users paying exactly the same fees as print subscribers.
An increase in the size of the newsroom staff, as he added 140 journalists to the 180 who were there when he bought the paper.

Nor was Kushner content with pumping up the Orange County Register. Last August he started a new daily, the Long Beach Register. He bought The Press-Enterprise of Riverside. And in his most audacious move yet, he announced plans to start a Los Angeles Register to compete with the Los Angeles Times, once among the best newspapers in the country and still formidable. (LA is also home to a second paper, the Los Angeles Daily News.)

Then, last week, came a significant setback. Not everyone agrees on the figures, but Ken Bensinger of the LA Times reported that Kushner laid off about 35 people at the Orange County Register and 39 at The Press-Enterprise. Register editor Ken Brusic and other top editors left. Rob Curley, who had overseen digital initiatives at papers at the Washington Post and the Las Vegas Sun, was promoted to the top position.

“We are evaluating our cost structure for the next leg of our journey in terms of covering Orange County and LA County,” Kushner told New York Times media columnist David Carr, who noted that Kushner plans to plunge ahead with his idea for a Los Angeles paper without adding any staff. Carr wrote:

By amortizing the costs of all the journalists he hired over a bigger market, he can achieve savings in terms of production while adding marginal readers and advertising.

He clearly sees himself as a smart entrepreneur making bold bets. I see a man on a wire, with millions of dollars and hundreds of jobs at stake.

As for past hints that Kushner may not be well-heeled enough to play the long game, you may recall that, several years ago, he tried to buy The Boston Globe. (The Globe’s then-owner, the New York Times Co., apparently showed no interest, and Kushner later struck out on a bid to purchase Maine’s Portland Press Herald.)

Before Kushner gave up on his Globe dream, though, Katherine Ozment wrote an in-depth profile of him for Boston magazine. Among other things, Ozment attempted to show precisely how Kushner had made a fortune in the greeting-card business, his major claim to fame up to that time. What she found was a haze of acquisitions, layoffs and charges (which Kushner denied) that he was late in paying artists, sales reps and the like.

Eventually Kushner left his company after some sort of falling-out with the investors, though he told Ozment he remained part of ownership. “I had a vision for the business, and they had a very different vision, and they controlled the working capital, so we decided to move on,” he said.

Despite that possible warning sign, it has to be noted that the Orange County Register remains a much more richly staffed paper today than when Kushner bought it. In a memo to his staff published by the blog LA Observed after the layoffs were announced, Kushner wrote that he now has 370 journalists — uh, make that “content team members” — covering Orange County and Los Angeles County, up from 198 a year and a half ago.

An optimistic take would be that Kushner got ahead of himself and is now retrenching, but not retreating. No doubt we’ll know a lot more as 2014 unfolds.

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

Conflicts of interest and the new media moguls

Washington Post executive editor Martin Baron has rejected a demand by a group of left-leaning activists that the Post more fully disclose Amazon.com’s business dealings with the CIA.

Nearly 33,000 people have signed an online petition put together by RootsAction, headed by longtime media critic Norman Solomon, to call attention to Amazon’s $600 million contract to provide cloud services to the CIA. The Post’s owner is Jeff Bezos, the founder and chief executive of Amazon. Here is the text of the petition:

A basic principle of journalism is to acknowledge when the owner of a media outlet has a major financial relationship with the subject of coverage. We strongly urge the Washington Post to be fully candid with its readers about the fact that the newspaper’s new owner, Jeff Bezos, is the founder and CEO of Amazon which recently landed a $600 million contract with the CIA. The Washington Post’s coverage of the CIA should include full disclosure that the sole owner of the Post is also the main owner of Amazon — and Amazon is now gaining huge profits directly from the CIA.

Baron, in his response, argues that the Post “has among the strictest ethics policies in the field of journalism, and we vigorously enforce it. We have routinely disclosed corporate conflicts when they were directly relevant to our coverage. We reported on Amazon’s pursuit of CIA contracts in our coverage of plans by Jeff Bezos to purchase The Washington Post.” Baron goes on to point out that the Post has been a leader in reporting on the National Security Agency and on the CIA’s involvement in the Colombian government’s fight against an insurgency, writing:

You can be sure neither the NSA nor the CIA has been pleased with publication of their secrets.

Neither Amazon nor Jeff Bezos was involved, nor ever will be involved, in our coverage of the intelligence community.

(Note: I first learned about the petition from Greg Mitchell’s blog, Pressing Issues.)

The exchange between RootsAction and Baron highlights the conflicts of interest that can arise when wealthy individuals such as Bezos buy in to the newspaper business. It’s a situation that affects The Boston Globe as well, as its editors juggle the lower-stakes conflict between John Henry’s ownership of the Globe and his majority interest in the Red Sox.

Baron himself is not unfamiliar with the Red Sox conflict, as the New York Times Co., from whom Henry bought the Globe, owned a minority stake in the team and in New England Sports Network, which carries Red Sox games, during most of Baron’s years as Globe editor.

The way the Globe handled it during those years was just about right: don’t disclose in sports stories, but disclose whenever the paper covers the Red Sox as a business. Current Globe editor Brian McGrory has insisted that Henry will not interfere. Henry, in a speech before the Greater Boston Chamber of Commerce last week, said he would not breech the wall of separation between the Globe’s news operations and its business interests.

Of course, it’s not as though the era in which news organizations were typically owned by publicly traded corporations was free of such conflicts. (The Times Co., after all, is a publicly traded corporation, though the Sulzberger family calls the shots.) Media critic Danny Schechter noted in his book “Embedded: Weapons of Mass Deception” that MSNBC — then in its pre-liberal phase — was a cheerleader for the war in Iraq even as its then-corporate parent, General Electric Co., was a leading military contractor.

But the rise of a new breed of media moguls such as Bezos, Henry and Aaron Kushner of the Orange County Register, who buy their way into the news business with their own personal wealth, seems likely to bring the issue of conflicts to the fore. The same is true of a media entrepreneur of a different sort — eBay founder Pierre Omidyar, who is launching an online venture called First Look Media with (among others) the journalists Glenn Greenwald and Laura Poitras.

It is the very fact that these individuals have been successful that makes them such intriguing players in the quest to reinvent the news business. But disclosure and non-interference need to be at the forefront of their ethical codes.

Chris Mayer to step down as Globe publisher

Boston Globe publisher Chris Mayer was his usual affable self when we exchanged New Year’s greetings this morning at the Mandarin Oriental hotel. He knew something very few others knew — that he would be announcing his departure before the end of the day. But no doubt he’d come to terms with that as early as last August, when Red Sox principal owner John Henry agreed to buy the paper from the New York Times Co. for $70 million.

Mayer, like me and several hundred other people, had turned out for a breakfast speech by Henry before the Greater Boston Chamber of Commerce. The soft-spoken Henry didn’t make much news. He talked about his soccer and baseball teams for so long that I wondered if he would ever get around to his newspaper. When he did, it was to say he planned to apply the same formula to turning around the Globe that he did to reviving the Red Sox — hard work and smarts, leavened, he hoped, with good fortune.

“No one has a magic bullet for newspapers,” Henry said. “We have to get it right at the Globe, and we’ll work as hard as we need to do to do that.” And though he talked about boosting the paper’s coverage in areas in which it excels — particularly in local coverage — he conceded that it meant cutting back in some other, unspecified areas as well.

If it’s smarts that Henry is looking for, Mayer has plenty. A longtime Globe veteran who got the top job in 2010 following a string of Times Co. executives, Mayer was a popular choice both inside and outside 135 Morrissey Blvd. Moreover, he deserves much of the credit for some key business-side decisions made in recent years, such as raising the price of the print edition and introducing the paper’s two-website strategy — the subscription-based BostonGlobe.com and the free Boston.com.

Still, it’s hardly a surprise that the new owner would want to pick his own publisher. Last week came word that the Globe was hiring Hill Holliday chairman Mike Sheehan as an advertising consultant, a move that seemed more Henry than Mayer. And this morning Henry announced that he was seeking a chief operating officer to run the Globe — a person who, one might assume, could be handed the title of publisher as well. (Craig Douglas of the Boston Business Journal covers Mayer’s departure here and Henry’s talk here.)

With Mayer leaving, it’s time to start wondering how committed Henry is to keeping Brian McGrory as the Globe’s editor. Owners hire publishers; publishers hire editors. And Mayer’s successor may want to put his or her mark on the paper by choosing the Globe’s top news executive. It’s hard to imagine how anyone could have done a better job than McGrory, who oversaw the paper’s Pulitzer-caliber coverage of the Boston Marathon bombings as well as important enterprise projects. But it’s hard to imagine how Mayer could have done a better job, either.

The message today, in case anyone had missed it before, is that Henry didn’t inherit the Globe — he bought it. And though he seems sincere in talking about the paper as a public trust, he’s making it clear that he intends to run it as he sees fit.

Swartz case leads Media Nation’s top 10 of 2013

Last January, not long after the young Internet genius Aaron Swartz committed suicide, civil-liberties lawyer Harvey Silverglate wrote powerfully about the abusive prosecutorial tactics that may have led to his death.

Swartz faced a lengthy federal prison sentence for downloading academic articles at MIT without authorization. Even though the publisher, JSTOR, declined to press charges, U.S. Attorney Carmen Ortiz brought a case agains Swartz under the Computer Fraud and Abuse Act. As Silverglate put it, the law is “a notoriously broad statute enacted by Congress seemingly to criminalize any use of a computer to do something that could be deemed bad.”

Silverglate’s article was republished in Media Nation with the permission of Massachusetts Lawyers Weekly, where it originally appeared. And it was far and away the most viewed article in Media Nation in 2013.

Today we present Media Nation’s top 10 posts for 2013, based on statistics compiled by WordPress.com. They represent a range of topics — from the vicissitudes of talk radio to a media conflict of interest, from Rolling Stone’s controversial cover image of accused Boston Marathon bomber Dzhokhar Tsarnaev to the sad, sudden death of The Boston Phoenix.

The top 10 is by no means representative of the year in media. Certainly the biggest story about journalism in 2013 involved the National Security Agency secrets revealed by Edward Snowden to The Guardian and The Washington Post — a story that did not make the cut at Media Nation.

Here, then, is our unrepresentative sample for the past 12 months.

1. Harvey Silverglate on the Aaron Swartz case (Jan. 24). Few people were more qualified to weigh in on U.S. Attorney Ortiz’s abusive tactics than Silverglate, my friend and occasional collaborator, who several years ago wrote “Three Felonies a Day,” a book on how the federal justice system has spun out of control. But Silverglate’s take wasn’t the only article about Swartz to generate interest in Media Nation. The aftermath of Swartz’s suicide also came in at No. 11 (“The Globe turns up the heat on Carmen Ortiz,” Jan. 11) and No. 13 (“Aaron Swartz, Carmen Ortiz and the meaning of justice,” Jan. 14). In a bit of poetic justice, a project Swartz was working on at the time of his death — software that allows whistleblowers to submit documents without being identified — was unveiled by The New Yorker just several months after his suicide.

2. The New Republic’s new owner crosses a line (Jan. 28). A little more than a year ago, the venerable New Republic was saved by Chris Hughes, a co-founder of Facebook who is using some of his fortune to restore the magazine to relevance and fiscal health. But he crossed an ethical line last January when he took part in an interview with President Obama, whose campaign he had worked on, and tossed a series of softball questions his way. At the time I wrote that Hughes was guilty of “no more than a minor misstep.” So how did it rise to No. 2? It turns out that a number of right-leaning websites picked up on it, bringing a considerable amount of traffic to Media Nation that I normally don’t receive.

3. Dailies go wild over sports controversies (Aug. 30). Four months after publishing this item, I find it hard to make heads or tails of what was going on. But essentially Globe-turned-Herald sportswriter Ron Borges contributed to a Rolling Stone article on the Aaron Hernandez murder case, which generated some tough criticism from both the Globe and the well-known blog Boston Sports Media Watch. That was followed almost immediately by a Globe article on the ratings collapse of sports radio station WEEI (AM 850), which brought yet more tough talk from, among others, ’EEI morning co-host Gerry Callahan, who also happens to write a column for the Herald. Yes, Boston is a small town.

4. Rolling Stone’s controversial cover (July 17). I thought it was brilliant. I still do. The accusion that Rolling Stone was trying to turn Dzhokhar Tsarnaev into some sort of pop-culture hero is absurd and offensive — and not borne out by the well-reported article that the cover was designed to illustrate.

5. Glenn Ordway walks the ratings plank (Feb. 14). Ordway built sports talker WEEI into a ratings monster only to see its numbers crater in the face of competition from the Sports Hub (WBZ-FM, 98.5). Ordway was by no means the problem with WEEI. But station management decided it could no longer afford his $500,000 contract, and so that was it for the Big O.

6. A big moment for The Boston Globe (Dec. 17). It was actually a big year for the Globe, from its riveting coverage of the marathon bombing and the standoff that led to the arrest of Dzhokhar Tsarnaev to the paper’s acquisition by Red Sox principal owner John Henry. But two days in mid-December were emblematic of the paper’s continuing excellence and relevance — a long, detailed exposé of the Tsarnaev family that revealed Dzhokhar, rather than his older brother, Tamerlan, may have been the driving force behind the bombing; an investigation into a case of alleged “medical child abuse” that pitted a Connecticut family against Children’s Hospital; and a nationally celebrated series of tweets by staff reporter Billy Baker about a Boston teenager from a poor family who had been admitted to Yale.

7. The Boston Phoenix reaches the end of the road (March 14). A stalwart of the alternative-weekly scene and my professional home from 1991 to 2005, the Phoenix was a voice of incalculable importance. But with even the legendary Village Voice struggling to survive, the alt-weekly moment may have passed. At the time of its death, the Phoenix had more than 100,000 readers — but little revenue, as advertising had dried up and both the print edition and the website were free. I scribbled a few preliminary thoughts in this post, and later wrote something more coherent for PBS MediaShift.

8. The return of Jim Braude and Margery Eagan (Feb. 6). Eagan and Braude’s morning show was the one bright spot on WTKK Radio, an otherwise run-of-the-mill right-wing talk station that had been taken off the air a month earlier. So it was good news indeed when the pair was hired to host “Boston Public Radio” from noon to 2 p.m. on public station WGBH (89.7 FM). (Note: (I am a paid contributor to WGBH-TV’s “Beat the Press,” where Eagan is a frequent panelist.)

9. Joe Scarborough grapples with history — and loses (Feb. 17). Asking cable blowhard Scarborough to write a review for The New York Times Book Review about the relationship between Dwight Eisenhower and Richard Nixon could have been a smart, counterintuitive move. But it only works if the writer in question is, you know, smart.

10. The bell tolls for WTKK Radio (Jan. 3). As I already mentioned, Jim Braude and Margery Eagan were able to walk away from the rubble of WTKK, which was shut down by corporate owner Greater Media and turned into an urban music station. Just a few years earlier the station had been a ratings success with trash-talking hosts like Jay Severin and Michael Graham. But tastes change — sometimes for the better.

Photo (cc) by Maria Jesus V and published under a Creative Commons license. Some rights reserved.

BBJ: Henry is close to selling Worcester paper

The indispensable Boston Business Journal reports that John Henry may be close to selling the Telegram & Gazette of Worcester, the “other” newspaper he acquired when he purchased The Boston Globe.

Craig Douglas writes that the T&G may end up in the hands of GateHouse Media, which recently implemented cuts at its two newest Massachusetts properties, the Cape Cod Times and The Standard-Times of New Bedford.

I’d like to think that Henry would sell to local owners if he could find any. The T&G may be a tough acquisition at this point, and GateHouse may be among the few prospective buyers willing to take it on.

My hope is that GateHouse, which is going through a structured bankruptcy aimed at getting $1.2 billion in debt off its back, will prove to be a better steward of the T&G than we’ve come to expect.

GateHouse’s recent move at its weekly papers in Massachusetts — reallocating resources from weaker to stronger papers rather than engaging in out-and-out cuts — offers some reason for optimism.

Update: Henry has what sounds like good news, according to the T&G — no sale before 2014, plus he’s hoping for a local buyer.

The challenge of counting digital subscribers

How many digital subscriptions has The Boston Globe sold? According to Globe spokeswoman Ellen Clegg, there were 45,971 “digital-only subscribers” in September — an increase of nearly 80 percent over the 25,557 who had signed up a year earlier.

That sounds impressive. But it’s a pittance compared to the numbers compiled by the Alliance for Audited Media (AAM), which recently released a report claiming the Globe had an average of 86,566 digital readers for its Monday-through-Friday editions for the six-month period ending Sept. 30.

The difference is in how you count digital subscriptions. I’ve written about this before, but the AAM’s methodology is becoming increasingly controversial, as some readers are being double- or even triple-counted.

Here’s how it works. As Clegg says, the number reported by the Globe represents only customers who have signed up for paid online access through the BostonGlobe.com website, the iPhone app, the ePaper replica edition or an edition for e-readers like the Kindle.

If anything, that methodology undercounts digital readership. For instance, we pay for home delivery of the Sunday paper, which entitles us to digital access at no extra charge — and that’s how we read the Globe Monday through Saturday. Yet according to Clegg, because we have not specifically purchased a digital edition we are counted as Sunday-only print subscribers.

By contrast, under the AAM methodology you could sign up for seven-day home delivery of the print edition — and if you also regularly log on to BostonGlobe.com at work, you’d count as a digital subscriber as well. If you download and use the Globe iPhone app to check the headlines while waiting for the subway, well, there’s a good chance you’ll be counted again. Joshua Benton of the Nieman Journalism Lab recently broke it down:

AAM wrote a blog post in May explaining that a paying print subscriber at a paywalled newspaper can actually count as two “subscriptions” if publishers provide proof that the subscriber activated their username and password for digital. And there’s no reason to stop at two: “each digital platform,” like an iPhone app, can count as its own sub too.

And in a considerable understatement, Poynter’s Andrew Beaujon — noting that the AAM methodology allowed USA Today to claim a 67 percent increase in paid circulation — wrote that “the new figures make many comparisons challenging.”

The good news for the Globe is that paid circulation more or less held its own during past year even if you use the paper’s own understated figures. From September 2012 to September 2013, print circulation of the Monday-through-Friday edition fell from 180,919 to 166,807, according to the AAM. On Sundays it fell from 323,345 to 297,493.

But when you factor in digital-only subscriptions, the Globe had a paid Monday-through-Friday circulation of 212,778 this September, up from 206,476 a year ago — an increase of 3 percent. On Sundays, total paid circulation declined from 348,902 to 343,464, or about 1.5 percent.

The picture looks considerably brighter if you use the AAM’s figures. By those measures, Monday-through-Friday paid circulation at the Globe rose from 230,351 to 253,373, an increase of about 10 percent. Sunday circulation rose from 372,541 to 384,931, or 3.3 percent.

What is the most accurate measure? The AAM figures may be exaggerated, but it’s also clear that the Globe’s measurements undercount paid subscribers — especially Sunday-only print customers who read the paper online during the rest of the week.

My best estimate is that paid circulation at the Globe is stable or growing slightly. And though digital advertising is not nearly as lucrative as its print counterpart, the far lower costs of digital publishing should help John Henry and company offset the loss in ad revenue.

Certainly Boston Herald publisher Pat Purcell must be looking closely at the Globe’s strategy. According to the AAM, paid circulation of the Monday-through-Friday Herald dropped by 9 percent, to 88,052, over the past year. The Sunday edition fell by 7.5 percent, to 71,918.

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.

Why John Henry should dump Times content

The New York Times Co. no longer owns The Boston Globe. Now is the moment for new owner John Henry to take the next step: stop running Times content in his paper.

I’m suggesting this not because I dislike the Times. Rather, I’m suggesting it because the Globe’s best, most engaged readers are those who are most likely to read the Times, too. There’s nothing quite like reading the Globe and coming across a shortened Times story on a national or international event to make you feel like you’re reading Times Lite.

For example: The story above, by New York Times reporter Robert Pear, takes up about 750 words at the top of page A2 in today’s Globe — and 1,170 words on page A18 of the Times.

For many years — even for the first decade or so of Times Co. ownership — the Globe never ran Times articles. Instead, the Globe supplemented its own coverage with journalism from wire services and from newspapers such as The Washington Post and the Los Angeles Times.

Somewhere along the line, though, someone at the Mother Ship decided the Times Co. could save money by running Times articles in the Globe. It’s hard to argue with the math — no matter how they did the accounting, it was essentially free content.

I don’t know how many people subscribe to both the Times and the Globe. The number may be very small. But those double subscribers tend to be journalists, community leaders and opinion makers — the very people Henry needs to court as he embarks on his new career as a newspaper owner.

Dumping the Times would serve as an emphatic statement that he intends to chart a new, independent course for the Globe.

Globe publisher calls BBJ report “misleading”

Boston Globe publisher Christopher Mayer is disputing a report that toxic contamination at the paper’s 16-acre Dorchester property could interfere with any plans incoming owner John Henry might have to move the Globe and redevelop the land.

In an internal message to Globe employees that I obtained, Mayer refers to the story as “misleading,” and says the contamination will not be an obstacle to redevelopment.

Craig Douglas of the Boston Business Journal wrote on Tuesday that pollution from underground diesel tanks, first discovered in 1996, has led the Massachusetts Department of Environmental Protection to ban “any work or potential development that might disturb sections of chemical-soaked soil in their present state.” [Note: Douglas responds below.]

The $70 million purchase of the Globe has already been delayed by a labor dispute at the Telegram & Gazette of Worcester, which, like the Globe, is being sold to Henry by the New York Times Co.

Douglas’ story makes it clear that the such problems are not unusual in urban areas, and that the typical solution is rehabilitation and reuse. But he notes that such efforts can run into the tens of millions of dollars depending on the seriousness of the contamination.

Douglas reports that the Globe and the New York Times Co. declined to comment and that Henry could not be reached.

Mayer’s message to employees refers to “reports,” but the news was broken by the BBJ. For instance, this article in Go Local Worcester, posted on Wednesday, credits the BBJ.

I have emailed Douglas for a response to Mayer’s message.

The full text of Mayer’s message follows.

Dear Colleagues,

I would like to address recent press reports concerning environmental conditions at The Globe’s headquarters on Morrissey Boulevard that raised questions about the safety of two areas of the property.

These reports are misleading. The conditions referred to are nearly two decades old and measures taken at that time addressed the issues that were identified.

Like any property holder with industrial activity conducted on its site over several decades, The Globe has, on occasion, needed to address environmental conditions. Development on the site is governed by health and safety rules and regulations, but it is not prohibited or banned.

Indeed, during the sales process, and prompted by requests from potential buyers (including John Henry), The Globe conducted an updated environmental assessment that did not identify any environmental conditions that warranted further review.

Chris

Christopher M. Mayer
Publisher, The Boston Globe
President, New England Media Group

Update. Craig Douglas responds: “As your blog suggests, there is nothing misleading in our story. The environmental reports we cited speak for themselves, making it clear there are certain activities and uses that are prohibited on the Globe’s property in its current state. We never claim or infer, as the Globe’s publisher suggests, that those problems can’t be remediated or that the Globe employees are exposed in any way to health risks.”

Update II. It’s official: John Henry is now the owner of The Boston Globe, the Telegram & Gazette, Boston.com and several smaller properties. (6:41 p.m.)

Update III. I missed this earlier, but I thought it was worth flagging as a sign of how Henry might respond to negative news coverage. (Saturday.)

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