Meet the new Big Three weekly news magazines

With the Washington Post Co. having put money-losing Newsweek up for sale, you’re going to hear a lot about how we’ve gone from three weekly news magazines to one (Time) if Newsweek isn’t rescued. (U.S. News & World Report lives, but it hasn’t been a weekly for years.) Cue the dirge.

Except that it’s not true. If Newsweek goes down, we’ll simply have a new Big Three: Time, The Economist and The Week. And unlike the Time/Newsweek/U.S. News trio, which at their peak were all more or less clones of each other, the three survivors have distinctly different missions. The Economist offers a smart, analytical take on the news. The Week is a digest. And Time is — well, who knows these days? Politics, pop culture and lists of stuff, I guess.

You’ll often hear people say that Newsweek and U.S. News were the victims of larger forces, and that the weekly news-magazine genre is no longer relevant. But if that were true, why were they overtaken by competitors within that genre?

And yes, I recognize that The Economist and especially The Week are bare-bones operations compared to the American news magazines in their prime. The fact is, they’re here — and they’re thriving. Newsweek and U.S. News were not done in by cable TV and blogs. They were done in by leaner, smarter competitors who had a better idea of what a weekly news magazine should be.

After all, their various owners never figured out how to overtake Time, either.

At the Globe, higher prices, lower circulation

If you take a look at the new list of the top 25 daily newspapers in the United States, you might notice something odd: the Boston Globe, a longtime fixture, has disappeared. In fact, the Globe’s weekday circulation has plunged so much that it now sells fewer papers than the Oregonian, the San Diego Union-Tribune and Newark’s Star-Ledger.

In a memo to Globe staff members that was obtained by Media Nation, publisher Chris Mayer says the latest figures from the Audit Bureau of Circulations show the Globe’s weekday paid print circulation is now 232,432, down 23 percent from a year ago. On Sundays, a category in which the Globe is still a top-25 paper, circulation is 378,949, a decline of 19 percent.

Circulation continues to drop almost everywhere. But the Globe’s particularly steep decline was the calculated result of a 30 percent to 50 percent (depending on the geographic area) hike in home-delivery rates, Mayer writes. The move is credited with helping to stabilize the Globe’s shaky finances. And it drove even longtime print subscribers like the Media Nation household to switch to home delivery on Sundays only; the other six days we subscribe to GlobeReader, a paid electronic edition of the paper.

Mayer also reports that the local audience for Boston.com, the Globe’s website, is up 16 percent over the past year.

I don’t have any hard figures for the Boston Herald, but Jon Chesto of the Patriot Ledger reports that the Herald’s weekday circulation fell by 12 percent over the past year. That would put the Herald’s Monday-to-Friday current circulation at about 140,000. Sunday circulation at the Herald was about 95,000 a year ago.

The full text of Mayer’s memo follows.

Dear Colleagues,

As you may know the ABC March Fas-Fax six-month circulation numbers were released today, and as we anticipated, the Globe has shown significant year-over-year declines, as a result of our pricing strategy instituted last summer.

The Globe’s circulation, now at 378,949 on Sunday and 232,432 daily, still leaves us the most dominant newspaper in New England. The year-to-year decreases of about 19% on Sunday and 23% daily were just about what we budgeted. We raised prices last summer in most areas by 30% to 50% to grow circulation revenue and stabilize the business.

To stress the point, these decreases were forecast and taken into account before launching our strategy. We set out in this direction not only to cope with the effects of the recession on advertising, but to compensate for the structural shift of advertising to the Web.

In terms of readership, also included in the ABC Fas-Fax report, we reach 32% of all adults in the metro market on Sunday and 20% each weekday. In contrast to our print circulation declines, Boston.com’s local audience grew by 16%. When you factor in Boston.com, our readership is even more impressive. Currently, during an average week, the Sunday Globe, the daily Globe and Boston.com together will reach more than half of all adults in the metro Boston area.

We are also developing additional news platforms to attract audiences. For instance, our mobile product usage is growing considerably, as is our recently launched app for the iPhone. We launched GlobeReader, and are working full-speed on other initiatives. Our goal is to be available wherever and whenever the consumer wants – on whatever device they prefer.

No local media can point to such a large audience or dynamic media portfolio. It’s heartening to know that hundreds of thousands of adults choose to rely on the Globe’s quality news each and every day, and that the newspaper has a core loyal audience who is willing to pay a premium for our product.

Thank you for your continued commitment to our mission.

— Chris

Worcester Guild slams Times Co. executives

One month after Newspaper Guild members at the Boston Globe circulated a letter criticizing New York Times Co. chairman Arthur Sulzberger and president Janet Robinson for richly rewarding themselves while threatening to shut the Globe, their counterparts at Worcester’s Telegram & Gazette have followed suit.

Beset by what they describe as a four-year pay freeze, substantial newsroom downsizing and proposed cuts in benefits, union officials say management has repeatedly called for “sacrifice” while Sulzberger and Robinson paid themselves more than $12 million in 2009.

As you no doubt know, the Times Co. operates the Globe, the T&G and Boston.com as a unit known as the New England Media Group. But though the Guild has a presence at both papers, the largest union at the Globe is the Boston Newspaper Guild, whereas T&G employees are represented by the Providence Newspaper Guild.

The Worcester protest coincides with an announcement by the T&G that it will start charging for some online content starting this summer. (So, too, will the Concord Monitor, as the paid-content trend continues to ramp up. Here is Tony Schinella’s take.)

The full text of the Worcester Guild’s press release and letter to Sulzberger and Robinson follows.

NYTimes Execs Big Raises Gall Guild in Worcester

Contact:

Bob Datz  508 xxx-xxxx
Lee Hammel 508 xxx-xxxx
Worcester Unit Council members
Local 31041 The Newspaper Guild

The letter below was sent April 23 to NY Times Co. chairman  Arthur Sulzberger Jr. and CEO Janet Robinson by the Worcester (Mass.) unit of The Newspaper Guild, expressing frustration with the enormous pay raises they recived.

During the three years that contract negotiations with the Guild in Worcester have stretched out, the company has offered its employees no pay raise. (The day before union members were scheduled to ratify the letter,  the company finally offered a one-time $750 signing bonus, which amounts to about  0.4 percent of pay over 3 years without raising base pay, in exchange for stripping away hard-won rights and benefits).

We would appreciate if you would consider a story alerting your readers to the dichotomy between the NYTimes editorial insistence that others behave justly and its attitude toward its own employees.

April 23, 2010

Arthur O. Sulzberger, Jr.
Chairman
Janet Robinson
President and Chief Executive Officer
The New York Times Company
620 8th Avenue
New York, NY10018

Dear Arthur and Janet,

Many of us at the Telegram & Gazette in Worcester don’t pay a lot of attention to high finance in New York. We have terrific jobs in the world’s best industry, and we are only too happy to concentrate on the business and politics and human drama that enliven Central Massachusettsday in and day out that we are privileged to gather and write and distribute.

But even the most focused of us could not help but notice the pay raises that both of you received for 2009. You have told us that our business is changing and times are difficult, and we have heard the same in contract negotiations over the past three years. We understand that we must change with the times in an environment where paid circulation and advertising revenue are falling. And management has told us that sacrifice is necessary.

So imagine our surprise upon learning the kind of “sacrifice” that you are enduring. As President and Chief Executive Officer, you Janet, have been given a 31.8 percent increase in salary, bonus, and other compensation in a single year, bringing your total compensation to $6.3 million.

Arthur, as Board Chairman and Publisher of the New York Times, your total compensation more than doubled in 2009, to $6 million. The $3.7 million that your compensation increased could pay the salary of some 75 of the people that have been laid off by the company, some of whom we have been saddened to see walk out our own doors.

Meanwhile, The Newspaper Guild has been in negotiation with the management in Worcester, as our contract expired nearly three years ago. Fortunately, we are told, the Telegram & Gazette is not only not losing money, but continues to make money through this period, albeit at lower than customary levels.

Nevertheless we have been offered neither a pay raise nor bonus over a four-year period. In fact, the company proposes to slash real compensation when benefits are considered. Management also wants to stop offering a pension to any new hires and to freeze the guaranteed pension of those of us who have one, in a “tradeoff” that the company should be well aware calculates to significant losses in projected retirement income.

While offering little or no financial incentive, the company wants to change contract language to remove the substantial equivalency of our medical coverage with no guarantees on the proportionate sharing of the premium costs. Finally, the company wishes to be allowed to lay off employees regardless of seniority.

This takes place in a backdrop of existing layoffs, buyouts and hiring freezes that have brought an 18 percent reduction of the company’s work force in 2009 alone. The employees remaining are asked, or forced, to reduce their benefits in the wake of a management decision to build a new skyscraper for the company headquarters. Our productivity subsidizes not only distant and ill-fated real estate transactions (click here) but deficits in units where employees are paid significantly better than we are, even with recent concessionary contracts.

We are thrilled to see the New York Times editorial pages seek fair treatment for people. Arthur and Janet, we ask that we, like you, receive some financial consideration for our efforts and that you recognize the increased work load we have taken on, because we, like you, have families who depend on us.

Sincerely,

Members of The Newspaper Guild
Worcester Unit, Local 31041

Herald names two managing editors

Congratulations to my “Beat the Press” colleague Joe Sciacca, who’s been named managing editor for content at the Boston Herald. (And to Jim Potter, the Herald’s newly promoted managing editor for production, whom I don’t know.)

Sciacca has been a staunch advocate of a Web-first strategy for the Herald, which is important given that the paper is printed in Chicopee and has unusually early deadlines.

And as Sciacca himself has pointed out, BostonHerald.com is an example of a newspaper.com that is quite different from the print edition in look, feel and, to some extent, content — a separate-path strategy that other newspaper executives would be wise to pursue.

Definitely a good move by Herald editor Kevin Convey.

Some quiet (so far) upgrades to Boston.com

If you’re a regular visitor to the Boston Globe’s Web site, Boston.com, you may have noticed some new features creeping into view during the past week. Media Nation has obtained an internal e-mail written by Bennie DiNardo, the Globe’s deputy managing editor for multimedia. Here is what’s going on:

• A one-and-a-half- to two-minute daily video of news headlines, called “GlobeToday,” will appear on the home page every weekday from 11:45 a.m. to 1:15 p.m. I viewed a sample on YouTube and found it to be slick and spritely, though limited by the extremely short length.

• A new section called “The Angle” is described by DiNardo as an “online news magazine that pulls together the most provocative content on Boston.com that day and engages readers to join in the conversation on these hot topics.” It is produced by the editorial and Ideas sections.

• A particularly promising new feature is “Thought Leader,” a gathering spot for blogs by a variety of folks in the community — from ACLU of Massachusetts executive director Carol Rose to Boston Celtics star Paul Pierce. Other contributors thus far are my “Beat the Press” colleague Kara Miller, Northeastern University criminologist James Alan Fox, Boston University journalism-department chairman Lou Ureneck and music buff Ben Collins. I am told that the bloggers are unpaid, which could limit the amount of work that folks are willing to put into it. But this bears watching.

Other new features include “App Sampler,” a blog in which Hiawatha Bray will, you know, sample apps (it doesn’t appear to be online yet); “Munch Madness,” some sort of interactive attempt to tie together the NCAA tournament and eating; and improvements to breaking news and sports coverage.

As is generally the case with Boston.com, a lot of this stuff could be easier to find. But what’s impressive is the air of experimentation, and the New York Times Co.’s willingness to invest modest amounts of money at a time when other newspaper companies remain in cutback mode.

I also think it’s smart that Boston.com continues to move in the direction of being a different product from the Globe. Since the idea is to maintain paid print and electronic editions alongside a free Web site, they should each offer a different experience. To that end, I’ll repeat what I’ve said in the past: I would get rid of Boston.com’s “Today’s Globe” feature. Though I think all (or most) of the Globe’s content should be available on Boston.com, it shouldn’t be packaged exactly the same way. (By way of comparison, BostonHerald.com has a very different look and feel from the print edition.)

Good news from an organization that appeared to be on the ropes a year ago.

The future of journalism will be local

In my latest for the Guardian, I argue that the Project for Excellence in Journalism’s annual “State of the News Media” report, though valuable, doesn’t really capture what’s going on at the grassroots, where hyperlocal projects like the New Haven Independent and The Batavian are reinventing journalism every day.

Making GateHouse execs look like pikers

Check out some of these numbers at the New York Times Co., courtesy of the Boston Herald:

  • About $6 million in total compensation each for chairman Arthur Sulzberger (up more than 150 percent over 2008) and president Janet Robinson (up 32 percent).
  • About $2 million for former Boston Globe publisher Steven Ainsley.

Just for the heck of it, let’s assume Sulzberger and Robinson, in deference to their company’s problems, had decided to get by with a paltry $1 million apiece in 2009. Ainsley, too. That’s $11 million — or 55 percent of the $20 million in union givebacks the company extracted from the Globe’s unions. We are talking about three people.

No question the Globe needed to downsize and reinvest in new technologies. No question it couldn’t support nearly as many staff members as it had once employed.

But the bonuses show, in case there was any doubt, that the cuts in pay and benefits was, for management, a war of choice, not of necessity.

More from Editor & Publisher.

Hard times continue at CNHI

The pain keeps on coming at CNHI, a Birmingham, Ala.-based newspaper chain that owns four Massachusetts dailies: the Eagle-Tribune of North Andover, the Daily News of Newburyport, the Salem News and the Gloucester Daily Times.

On the heels of a holiday furlough several months ago, Yvette Northcutt, the company’s vice president of human resources, is now telling employees they must take five unpaid days off between April 1 and June 30.

CNHI, as you may know, exists mainly to provide Alabama schoolteachers with a comfortable retirement. Those of us who live on the North Shore or the Merrimack Valley can ponder that the next time we wonder why an important local event didn’t get covered.

The full text of Northcutt’s memo follows:

We have chosen to implement reduced work schedules for hourly employees and reduced work schedules and pay reductions for salaried employees in the second quarter of 2010. The details are described below:

  • We will implement a reduced work schedule for hourly employees during the second quarter of 2010. All hourly employees must take five days off without pay between April 1, 2010 and June 30, 2010. It is expected that no work will be done during this time. This applies to full and part-time employees. Part-time employees’ work schedules will be reduced on a prorated basis. These days must be taken during the second quarter, and regular vacation, personal and sick days may not be substituted for these unpaid days.
  • A reduced schedule will also be implemented for salaried employees during the second quarter with a corresponding reduction in pay. Salaried employees already affected by the first-quarter pay reduction will simply see their current base salary roll forward. The second-quarter pay reduction will be applied over all pay dates occurring during the second quarter. In turn, salaried employees must take five days off between April 1, 2010 and June 30, 2010. Under this plan, the days off will not reduce the employees’ existing allotment of regular vacation, personal and sick days. Regular vacation, personal and sick days may not be substituted for these additional days off.
  • We are asking our unions to voluntarily agree to similar arrangements for the employees they represent. If our unions agree, this will help us avoid future layoffs.
  • In order to ensure staffing needs are met, these off days must be planned and approved in advance. Please submit the attached Request for Second Quarter Days Off form to your manager by March 15, 2010.

Thank you again for your hard work, dedication and support. Please contact Human Resources if you have any questions.