Jon Chesto – Media Nation

Three tales of woe from GateHouseLand

The nice thing about missing out on bad news from GateHouse Media* is that you only have to wait a few days for fresh material. Thus we learn today that The Standard-Times of New Bedford is getting rid of three newsroom jobs. Here’s the internal email from editor Beth Perdue:

Colleagues,

Today we eliminated three editorial positions in an effort to align our staffing levels to expected revenues in 2015 and levels at similar sized media companies.

These are always tough decisions and my heart goes out to those who departed. Their loss will be felt by all of us.

Please know that these changes represent the full extent of planned reductions in the newsroom. While changes like this are very difficult, we can now focus fully on pursuing a variety of opportunities that will help us move forward.

— Beth

I hear that among those departing is veteran reporter Steve DeCosta, a respected figure in the newsroom since the late 1970s. I also understand that Simón Rios is leaving the paper for WBUR Radio (90.9 FM). The cuts, I’m told, will shrink the reporting staff to five, compared to nine just two years ago. (I’m asking for details on the third job that’s been eliminated and will update if I hear anything.)

You may recall that Perdue’s predecessor as editor, Bob Unger, resigned in December rather than implement GateHouse-ordered cuts. Boston Globe reporter (and GateHouse alumnus) Jon Chesto wrote at the time that Unger was “hoping his sacrifice will save two or three lower-paying jobs.” If you scroll to the bottom of Chesto’s story, you’ll see what I told him: Don’t count on it.

• T&G reporter quits over shrinking pay. In a departure that has gotten national buzz, Thomas Caywood, an investigative reporter for the Telegram & Gazette in Worcester, quit after management refused to give him a 3 percent raise — which, he said, would have offset only a fraction of the reduction in income he’s been subjected to over the years. Here is part of what Caywood wrote to T&G publisher James Normandin:

For your background, I have been a reporter at the Telegram & Gazette since September 2007, during which time I have had one small pay raise. The cumulative impact of inflation over the last seven years of my employment has been to reduce the value of my annual earnings by nearly 14 percent. My vacation allotment was reduced from three weeks a year to two weeks by Halifax Media Group. Meanwhile, our benefits cost more and cover less than before the Halifax acquisition….

All I require is a 3 percent raise and restoration of my previous three-weeks-a-year vacation allotment. The meager raise would barely be noticeable to my finances, but it’s vital to me that I see some tangible evidence of this commitment to quality journalism of which you and GateHouse speak.

Caywood told Jim Romenesko: “I didn’t leave the Telegram & Gazette with any hard feelings and my departure was not intended as some kind of provocative ‘fuck you’ gesture…. But I just couldn’t avoid any longer the unwelcome truth that I valued the job more highly than the company valued me.”

If you’re having a hard time following the bouncing chains, Globe owner John Henry sold the T&G to Halifax Media Group of Florida in 2014. Halifax turned around a few months later and sold out in its entirety to GateHouse, which is based in suburban Rochester, New York. Here is the analysis I wrote for WGBHNews.org in November.

• Cape Cod Times to close printing plant. The Cape Cod Times and its affiliated weeklies will shut down their printing press in Hyannis and move production to the Providence Journal.

This move, at least, makes sense, and has been anticipated from the time that GateHouse acquired the Journal last summer. But “an undisclosed number of jobs” will be eliminated, writes Times reporter Bryan Lantz. And here’s more from Jon Chesto.

*For the sake of simplicity, I am referring to the corporate owner of all these papers as GateHouse Media. The chain’s acquisition branch is known as New Media Investment Group.

Update. I’m now hearing that DeCosta and two other newsroom people were let go at The Standard-Times — not counting Rios, who’ll begin his new job at WBUR soon.

Expanded Globe Business section makes its debut

The Boston Globe has all age groups covered in its expanded Business section, which debuts today.

For younger readers, there is this story, by Stefanie Friedhoff, on a start-up that sells highly reflective paint to make bicycles more visible in the dark.

And for old folks like me, tech columnist Hiawatha Bray has advice for what to do about the blizzard of passwords you want your loved ones to be able to access after you’ve departed this vale of tears. I’m going to bookmark that one.

When it comes to newspapers, more is better. The section offers a nice mix of stories and is attractively designed. (I took a rare peek at the replica edition so that I could see what it looks like in print.) And for those who still care about such things, Business is once again a standalone section.

To its credit, the Globe has also assigned reporter Katie Johnston to cover “workplace and income inequality.” I’d like to see her reporting supplemented with a strong, opinionated voice along the lines of the way columnist Shirley Leung chronicles the local power players.

Here’s the press release:

The Boston Globe Launches New and Expanded Standalone Business Section

Tuesday through Friday section, with new staff and features, debuts December 4; launch sponsored by University of Massachusetts

Boston (Dec. 4, 2014) — The Boston Globe today launches a new and expanded business section. Tuesday through Friday, and Sunday, the print version of Business will be a standalone section, giving it a more prominent position in the newspaper.

The new section — also on BostonGlobe.com — debuts at a time when Boston and the region is at the front-end of an unprecedented period of growth. The section will cover the power players and big-thinkers helping to make the area a national hub for innovation, as well as those struggling to raise their economic standing in a state with some of the nation’s highest housing and energy costs.

Readers can also expect more personalities, more strong-voiced writing, and more dramatic design. It’s a section that reflects the fact that people work in many different ways these days, and that jobs intersect with private lives in ways that weren’t imagined not so long ago. It’s not just about what people do for work, but how they do it, where they do it, and what they do after work. It’s about business as part of life.

“When we at the Globe think about business as a subject, it encompasses so much more than stock prices and mergers, profits and losses,” said Mark Pothier, Globe business editor. “There are bold ideas and life stories behind every business and business decision. There are people leading the way and those who are left behind. We want to make the section relevant to a much broader range of readers than a traditional business section.”

New features include:

Bold Types: A destination for anyone interested in who’s doing what. Think of this as the Business version of the popular Names column in the Metro section, with CEOs and startup geniuses instead of movie stars.

Talking Points: A fast-paced summary of what the time-starved business person needs to start the day — from local to national to global

Agenda: What’s on tap for tomorrow and what might you want to attend? This could feature events like the next Federal Reserve meeting, a product giveaway or charity event

Workspace: Highlights trends and unusual workspaces, from the back of a bus to ultra-hip high tech offices

Build: Covers real estate, new projects and architecture

Double Shot: Washington-based reporter Matt Viser’s column expands from politics to focus on the coffee-drinking habits of businesspeople.

The Download: A brisk digital dossier of someone in the business world – their social media habits, last photo taken, most-used apps and more

Business Lunch: Everything from the hot spots to get business done to the eating habits of the power brokers

There and Back: From commuting horror stories to favorite destinations for conferences to travel tips from airport veterans

Shop: New stores, new trends, new products, good deals, potential scams and more

Number of the Day: One number can say a lot

In advance of the new section, Cynthia Needham, formerly the Globe’s political editor, joined Business.

New hires include Jon Chesto, formerly managing editor of the Boston Business Journal, and Sacha Pfeiffer, formerly senior reporter and host of WBUR’s “All Things Considered.” Prior to joining WBUR six years ago, Pfeiffer spent a decade at the Globe, most notably as part of the Spotlight Team that won the Pulitzer Prize for reporting on the clergy abuse scandal. She will cover nonprofits, venture capital, philanthropy, and the people and motivations behind them.

The new section also includes coverage from BetaBoston.com, the source for innovation and tech news, from the latest start-ups to the newest biotechnology breakthrough. BetaBoston.com will also share and link to the expanded Globe business coverage.

The University of Massachusetts (UMass) is the section launch sponsor. “As the state’s largest university, we are always following changes and trends in the regional business landscape,” said Robert P. Connolly, UMass Vice President for Communications. “We value this expanded coverage as a member of the business community and value the opportunity to support its launch.”

The new Business section is the latest example of the Globe’s commitment to providing an unparalleled depth of information and perspective on a variety of coverage areas. Its Capital (politics) and Address (real estate) sections are the most recent examples.

The Globe’s new Business section debuts Dec. 4, 2014. All content will be available at BostonGlobe.com/business and readers can also follow Business on Twitter at @BostonGlobe and @GlobeBiz.

Big moves as Globe prepares to expand its business section

Some big media moves were announced a little while ago as The Boston Globe plans to ramp up its business section next month. First the email sent to the staff by editor Brian McGrory and business editor Mark Pothier. Then a bit of analysis.

Hey all,

We’d like to fill you in on some terrific developments in our Business department, all of them designed to build on the exceptional work that went into our Market Basket coverage and so many other news and enterprise stories over the past year.

First, we’re reconfiguring the paper to give Business its own section front on Tuesdays through Fridays, starting the first week of December. In fact, Business will get a free-standing eight-page section, somewhere between Metro and Sports. We’ve worked with Mark Morrow and Dan Zedek, as well as an entire team of creative editors and reporters, to conceive a bold new approach to business coverage, both in form and function. There’ll be a more contemporary look, a plethora of new features, and a renewed commitment to the most insightful and energetic business coverage in New England. We’ve got everything but a new name, which is currently, to my chagrin, “Business.” Please offer better ideas.

For this new section, we need additional talent, and that’s the best part of this note. We’ve locked in three major moves and we’re working on still others. To wit:

— Cynthia Needham, the Globe’s invaluable political editor for the past four years, the person who has taken us deftly from Brown v Warren to Baker v Coakley, and through so much in between, is heading to Business to help oversee a talented team of reporters and key parts of the new section. There’s not a better person in the industry to help the cause. Cynthia was a vital part of the conception and launch of Capital, our wonderfully popular Friday political section. She knows inherently that journalistic sweetspot where insight meets accessibility. And she is among the smartest, hardest-working, and best-connected editors in the building, all of which is why we asked her to undertake this crucial assignment. Cynthia will start at her new post, as one of Mark’s deputies, next week.

— Jon Chesto, the managing editor of the Boston Business Journal, is coming to the Globe November 24, as a reporter covering what we’ll describe as a “power beat.” It’s a great get for us. Jon’s among the absolute best connected reporters in the city, with a deep knowledge of how commerce works and the major figures who shape it. He’s also an energetic workhorse, an irrepressible reporter who will help breathe fresh energy into the department with smart stories. Before his stint at the BBJ, Jon spent a big chunk of time as the business editor at the Patriot Ledger, where he won a string of national awards for his weekly column, “Mass. Market.”

— Sacha Pfeiffer will arrive back home to the Globe the first week of December. There’s no way to overstate the significance of this. Sacha is legend here, which has nothing to do with Rachel McAdams, but everything to do with her exceptional reporting over a decade-long stint at the Globe, during which she shared in the Pulitzer Prize for the Spotlight series on clergy child abuse and a litany of national honors for other stories. She’s been a star at WBUR since 2008, recognizable for her expert reporting and authoritative on-air presence. The exact particulars of Sacha’s beat are still being worked out, but it will focus on wealth management and power, along with a weekly column tailored to the huge and vital nonprofit world in greater Boston. Sacha, like Jon, will report to Cynthia.

We’re aiming to make our business coverage a signature part of the Globe, both in print and online, which shouldn’t be hard, given that we’re starting from a very strong position. Our reporters have attacked their beats with gusto. Shirley [Leung] has proven to be a must-read columnist every time she taps on her keyboard. Our editors have poured creativity into the job, and it shows.

The reimagined section will launch December 4, give or take a day. We have mock-ups we’ll share with the whole staff early next week. In the meantime, please take a moment to congratulate Cynthia and to welcome Jon and Sacha to the Globe.

All best,
Brian and Mark

Now, then. This is great news for Globe readers, although I would express the hope that expanded labor coverage will be part of this as well. But for those of us who watch the comings and goings of local media people, the most surprising development is Sacha Pfeiffer’s return to the Globe.

When Pfeiffer joined WBUR (90.9 FM) several years ago, I thought it solidified ’BUR as the city’s most interesting and creative news organization. Of course, ’BUR remains one of the crown jewels of the public radio system. But Pfeiffer’s return underscores the extent to which the Globe is expanding these days under owner John Henry and editor McGrory. (Disclosure: I’m a paid contributor to WGBH, whose news-and-talk radio station, at 89.7 FM, is a direct competitor of WBUR’s.)

Chesto’s move is less surprising because it’s a step up. But the Boston Business Journal has been set back on its heels given that executive editor George Donnelly left at the end of last month.

Sale of ProJo a lost opportunity for local ownership

Previously published at WGBHNews.org.

The online news site GoLocalProv is taking a well-deserved victory lap now that it’s been announced that GateHouse Media will acquire The Providence Journal from A.H. Belo of Dallas for $46 million. GoLocalProv reported on June 13 that the sale was imminent. But there the matter stood until Tuesday, when we learned that the Journal had been sold to GateHouse’s parent, New Media Investment Group.

As I told Ted Nesi of WPRI.com, I think it’s a shame that some way couldn’t be found for the Journal to return to local ownership — a lost opportunity, just as it was when John Henry sold the Telegram & Gazette of Worcester to Halifax Media Group of Daytona Beach, Florida, earlier this year. There is no substitute for a newspaper that is fully invested in the community. I have no doubt that cuts will follow, just as they did when New Media/GateHouse last year purchased Rupert Murdoch’s Dow Jones community papers, including the Cape Cod Times and The Standard-Times of New Bedford.

Still, any incoming chain would make cuts, and I think the new, post-bankruptcy GateHouse, based in Fairport, New York, deserves a chance to prove it will be good steward of the Journal. Despite reductions at the Cape Cod and New Bedford papers, journalists there continue to do a good job of serving their communities. On the other hand, the more than 100 community papers GateHouse already owns in Eastern Massachusetts are strictly barebones operations.

In a full-page ad in today’s Journal aimed at reassuring his new employees, customers and the community of the company’s good intentions, GateHouse chief executive officer Kirk Davis concludes:

We know The Providence Journal plays an indispensable role in helping you live your life in and around Rhode Island. We look to uphold these great traditions and make the investments needed to thrive in the new multimedia world. The purchase is expected to close later this summer. We are looking forward to welcoming the readers, advertisers and employees of The Providence Journal to our family.

At $46 million, New Media/GateHouse paid a surprisingly high price for the Journal. Although Belo is keeping the pension liabilities, it’s also keeping the downtown property. By way of comparison, John Henry paid $70 million for the Globe, the Telegram & Gazette and all associated properties — then turned around and sold the T&G for $17.5 million, according to a source involved in the sale. One possible explanation is that the New York Times Co. sold the Globe and the T&G to the low bidder, as one of the spurned suitors, “Papa Doug” Manchester, complained at the time. New Media/GateHouse, by contrast, was presumably the high bidder for the Journal.

Another possible explanation is that the Journal is worth more to GateHouse than to other buyers because it gives the company new territory for its Propel Marketing subsidiary. According to a perceptive analysis of the deal by Jon Chesto in the Boston Business Journal, Propel is seen by GateHouse executives as “the primary engine for growth at the company.”

Yet another wrinkle: The Globe has developed a nice side business printing other newspapers, including the Boston Herald and GateHouse properties such as The Patriot Ledger of Quincy and The Enterprise of Brockton. At a time when Henry is getting ready to sell the Globe’s Dorchester plant and move printing operations to a former T&G facility in Millbury, the prospect of losing GateHouse’s business has got to be disconcerting.

More on those inflated digital circulation numbers

Jon Chesto of the Boston Business Journal takes on a subject that I tackled recently: trying to make sense of The Boston Globe’s paid circulation figures at a time when no one seems to know how to count print and digital sales.

As Chesto and a number of us have observed, the Alliance for Audited Media (AAM), whose numbers are considered to be the industry standard, has gotten carried away with digital subscriptions, allowing the Globe and other newspapers to count some subscribers two or even three times. Chesto writes:

This potential for discrepancies and confusion is one reason why the AAM board, which oversees how newspaper circulations are reported to advertisers, is weighing whether to tighten its rules.

It’s hard these days to get a precise number for unique paying subscribers, a figure that AAM was generally able to provide, back when it was known as the Audit Bureau of Circulations, and readership was essentially measured by the number of copies sold.

There’s no question we need a standard that everyone can agree on and that makes sense. Paid digital has enabled the Globe to improve its circulation numbers, and that’s fine. But the AAM system is so out of whack that it’s in danger of not being taken seriously.

Globe cuts Your Town staffing in half

Just catching up with this. Jon Chesto of the Boston Business Journal reports that The Boston Globe’s Your Town sites are being trimmed by six correspondents — approximately half the staff. Your Town, part of the Globe’s free Boston.com website, provides hyperlocal coverage of the suburbs as well as of several Boston neighborhoods.

Globe regional editor David Dahl tells Chesto that there will be no site closures. But it seems inevitable that there will be cuts in coverage, even though Globe staff reporters and freelancers will continue to contribute. There are more than 100 Your Town sites and about 15 related Your Campus websites covering colleges and universities in Greater Boston.

Your Town got off to a shaky start in 2008, as GateHouse Media — which operates Wicked Local sites in virtually all of the same communities targeted by Your Town — sued the New York Times Co. (the Globe’s owner, at least for a few more weeks) for copyright infringement, arguing that the Your Town sites in some cases aggregated virtually all of GateHouse’s content for a given community without offering much else.

The two sides reached an out-of-court settlement in early 2009, as I reported for The Guardian. Your Town eventually grew into a valuable resource in many communities. But it looks like the sites, which carry little advertising, got to be too expensive to operate.

Chesto writes that the cuts call hyperlocal coverage into question as a business strategy, noting that AOL’s Patch sites are in the midst of deep cuts as well. But though hyperlocal may well be a loser at the corporate chain level, there are a number of successful independent sites operating across the country. You could read a book about such sites, hint, hint. The real issue is that hyperlocal is best understood as a grassroots phenomenon.

Did Globe executives reach this decision on their own? Or was incoming owner John Henry involved? And if he was, what does that say about his priorities for the Globe?

(Disclosure: Journalism students at Northeastern as well as several other Boston colleges and universities contribute to the Your Town and Your Campus sites.)