GateHouse to partner with Google News on digital subscriptions

GateHouse Media will partner with Google News on a digital-subscriptions project, according to this internal email from GateHouse chief executive Kirk Davis, forwarded to me by a trusted source just a few minutes ago. The news follows Tuesday’s announcement that Google News will partner with the McClatchy chain.

The GateHouse experiment will take place at The Columbus Dispatch, followed by “a broad roll-out of our Digital Subscription Lab learnings across the GateHouse network.” GateHouse, as you know, owns more than 100 newspapers in Greater Boston and beyond, including the Providence Journal and the Telegram & Gazette of Worcester.

Certainly I would rather that Google put its efforts (and its money) into helping independent local news projects. But Google wants content, and the corporate chains are in the best position to give them that. Davis’ full email follows.

To: All GateHouse Media employees
From: Kirk Davis, CEO, GateHouse Media
Re: Google News Initiative Digital Subscriptions Lab
Date: March 27, 2019

Developing a sustainable digital subscription model to showcase the amazing work being done by our journalists across the United States is essential to preserving the vitality and viability of our local journalism. Which is why I’m thrilled to announce that GateHouse has been selected, as one of eight publishers, to participate in the Digital Subscriptions Lab, a partnership between the Google News Initiative, the Local Media Association and FTI Consulting.

This intensive six-month program will address every step of the digital subscription process from discovery to conversion to retention. Participants will receive dedicated 1:1 support from each of the three partners, as they leverage their respective capabilities in research, product, technology and analytics. Several in-person meetings over the course of the program will enable participating publishers to share strategies, insights and best practices.

We have selected The Columbus Dispatch to be the focus for our engagement; with 13,000 digital subs, The Dispatch is among our largest, paid digital subscription products. We anticipate a broad roll-out of our Digital Subscription Lab learnings across the GateHouse network. Our participation in this elite program is exciting; it reflects our very strong commitment to the future of community journalism!

Kirk

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Good jobs at good wages

Context is everything. Yesterday, I wrote about the compensation packages of GateHouse Media’s top two officials, chief executive Michael Reed and the just-promoted president and chief operating officer, Kirk Davis.

What I wrote was accurate, but I failed to consider what top executives might be making at other newspaper companies. As it turns out, there’s nothing special about Reed’s salary ($925,000 in 2007) or Davis’ (about $461,000). Reed’s 2006 compensation, $6.4 million, included a lot of stock, the value of which has presumably all but disappeared.

With 2007 revenues of $589 million, GateHouse is on the smaller end of the publicly traded newspaper companies I looked at this morning. But its challenges are as great or greater than those of much larger companies — it’s staggering under a debt load of $1.2 billion, and its stock price has fallen so much that it was delisted this fall by the New York Stock Exchange.

Anyway, here’s a quick cruise around a few other newspaper companies and what they paid their top managers in 2007, ranked by 2007 revenues.

Gannett Co. ($7.4 billion)

  • Craig Dubow, chairman, president and chief executive officer: salary, $1.2 million; total compensation, $7,546,710
  • Gracia Martore, chief financial officer, executive vice president: salary, $700,000; total compensation, $3,026,985
  • Susan Clark-Johnson, chairwoman of U.S. community publishing: salary, $735,000; total compensation, $3,145,339
  • Not-so-fun fact: Employees have been told to take a one-week unpaid furlough during the first quarter of 2009
  • Financials from WSJ.com

New York Times Co. ($3.2 billion)

  • Arthur Sulzberger Jr., chairman: salary, $1,087,000; total compensation, $3,439,280
  • Janet Robinson, chief executive officer: salary, $1 million; total compensation, $4,142,410
  • Michael Golden, vice chairman: salary, $1 million; total compensation, $1,706,579
  • James Follo, chief financial officer and senior vice president: salary, $480,000; total compensation, $859,273
  • Not-so-fun fact: A recent, widely disputed essay in the Atlantic speculates that the flagshap New York Times could cease publishing as early as this May
  • Financials from WSJ.com

McClatchy Co. ($2.3 billion)

  • Gary Pruitt, chairman and CEO: salary, $1.1 million; total compensation, $4,635,355
  • Patrick Talamantes, chief financial officer and vice president for finance: salary, $500,000; total compensation, $938,970
  • Three vice presidents of operations are paid salaries in the range of $500,000 to $600,000; total compensation is around $1.1 million apiece
  • Not-so-fun fact: The debt-burdened chain is trying to sell the Miami Herald, but can’t find any takers
  • Financials from WSJ.com

Journal Register Co. ($463 million)

  • James Hall, chairman and chief executive officer: salary, $394,750; total compensation, 411,233
  • Scott Wright, president and chief operating officer: salary, $201,923; total compensation, $231,040
  • Julie Beck, executive vice president and chief financial officer: salary, $337,500; total compensation, $431,510
  • Robert Jelenic, former chairman and chief executive officer: salary, $945,396; total compensation, $6,318,394 (Jelenic died last month)
  • Not-so-fun fact: The deeply troubled company is closing some of its papers and selling off others
  • Financials from the company’s 2008 proxy statement (PDF)

What’s the takeaway? Top executives at newspaper companies, like top executives everywhere, make a lot of money. We tend not to notice when times are good. But with the newspaper business under siege, such lavish compensation packages seem out of sync, both symbolically and substantively.

On the other hand, if any of these well-paid folks can find a way out of the current morass, they will be worth every cent.