Readers show increasing willingness to pick up the tab

New York Times figures include International Herald Tribune. Boston Globe figures include Worcester Telegram & Gazette and Boston.com. Courtesy of Paul McMorrow.

Advertiser-supported journalism isn’t going away, but it’s not going to recover, either. The forces aligned against it are just too overwhelming. Classifieds aren’t coming back. Print is dying. And online advertisers are staying away from news sites even as Internet ads overall continue to grow, as this Reuters report by Jennifer Saba shows.

Which is why the New York Times Co.’s progress in tilting the revenue equation away from advertising and toward readers is so important. Joe Coscarelli of New York magazine writes that circulation revenue at the company’s Big Three newspapers — the Times, the International Herald Tribune and the Boston Globe — is rising faster than ad revenue is falling.

(Coscarelli doesn’t say so, but his Globe numbers are almost certainly for the New England Newspaper Group — the Globe, the Worcester Telegram & Gazette and Boston.com. The Times Co. does not break out those numbers separately.)

Here are the details. In the second quarter of this year, which ended on June 30, the Times Co. lost $88.1 million. Advertising, both in print and online, fell 6.6 percent, to $220 million. But circulation revenue rose 8.3 percent, to $233 million. News-business analyst Ken Doctor tells Coscarelli that the Times Co. may be the first major newspaper company to pull in more money from circulation than from advertising.

The newspaper business had long earned some 80 percent of its revenues from ads. It was often said that the news was free, with readers asked to pay only for printing and delivery. The question facing the industry is whether there are enough readers who value newspapers to pay much more for print than they used to, and to pay anything at all for online access.

The Times and the Globe both have smart, flexible digital-subscription systems that are being closely watched by newspaper executives. (The Telegram & Gazette has a paywall as well, though I’m not familiar enough with it to offer an assessment.) But the Times has been much more successful than the Globe in selling digital subscriptions — 509,000 for the Times and the IHT in the second quarter, compared to about 23,000 for the Globe, according to Chris Reidy of the Globe.

The caution flag for the Globe is that the Times is an utterly unique product — for all its flaws, it is surely the highest-quality, most comprehensive news source in the United States. And it may be the one news source people are willing to pay for.

The Globe is an excellent regional paper, but it’s unlikely that online subscriptions will ever be more than a small part of its revenue stream. Globe executives themselves seem wary of pushing the paywall too hard, as they continue to offer quite a bit of Globe content on the free Boston.com site. Indeed, the chart above, put together by Paul McMorrow of CommonWealth Magazine, shows that circulation revenue as a percentage of overall revenues actually dipped slightly in the second quarter at the New England Media Group.

In other words, the latest numbers are great news for the Times. For everyone else, they are something to aspire to, with no guarantee of success.

Pushing back against the White House anti-leak crusade

By Bill Kirtz

Leading news figures this weekend blasted expanding investigations of national-security leaks, detailed the dilemma of dealing with confidential sources and offered ways to restore credibility in a media universe that merges fact with fiction.

Their comments came at Boston’s Investigative Reporters and Editors conference attended by some 1,200 established and aspiring journalists.

New York Times executive editor Jill Abramson said the Obama administration’s widening probes have created an “urgent” problem because it has a “chilling effect” on confidential sources. She said the current Washington environment “has never been tougher and [confidential] information harder to dislodge.”

She said the attorney general’s latest attempts to ferret out leakers raise the question of whether the U.S. Espionage Act “is being used as a substitute for” Britain’s wide-ranging Official Secrets Act.

Using the Espionage Act, the current administration is pursuing six leak-related criminal cases. That’s twice as many as all previous administrations combined brought since the act was passed in 1917 to punish anyone who “knowingly and willfully” passes on information that hurts the country or helps a foreign power “to the detriment of the United States.”

The Official Secrets Act makes it unlawful to disclose information relating to defense, security and intelligence, international relations, intelligence gained from other departments or international organizations and intelligence useful to criminals.

Alluding to recent Times stories about U.S. drone strikes and computer attacks aimed at Iran’s nuclear infrastructure, Abramson said the government’s policy on cyber warfare is an important subject about which the public needs to know.

The vast majority of her paper’s national-security disclosures come from “old-fashioned shoe-leather reporting” and not from leaks, she said. And before they run, she said, “We give all responsible officials a chance to reply” and will hold or cut information if they raise a legitimate security objection.

Times media columnist David Carr called the government investigations an “appalling” attempt to restrict information about significant issues.

“Whistle-blowers aren’t scarce but the people who blow them are,” he said, citing as an example the indictment of a National Security Agency worker who told a Baltimore Sun reporter about a failed technology program.

“As war becomes less visible and becomes its own ‘dark ops,’ reporters are trying to punch through and bring accountability,” he said. Carr added that while it’s easy to say leak-based scoops come gift-wrapped, they usually come from reporters working hard and asking the right questions. Continue reading “Pushing back against the White House anti-leak crusade”

Rory O’Connor to read from his new book

Backscratching Day festivities continue with my interview at thephoenix.com with old friend Rory O’Connor. The occasion is O’Connor’s excellent new book, “Friends, Followers and the Future: How Social Media are Changing Politics, Threatening Big Brands and Killing Traditional Media,” published by City Lights.

O’Connor will appear on Tuesday, May 22, at 7 p.m. at the Brookline Booksmith to talk about his book and sign. His book grew out of a semester he spent a few years ago at Harvard’s Joan Shorenstein Center after stepping down as editorial director of NewsTrust. The idea behind NewsTrust was that an online community could identify and evaluate journalism with respect to sourcing, fairness and the like. Unfortunately, O’Connor discovered that too many of the people who joined NewsTrust were pushing a political agenda.

Among the more provocative ideas that O’Connor discusses in “Friends, Followers and the Future” is that Facebook is actually a fairly effective platform for sharing diverse sources of information, since members tend to cultivate a lot of “weak ties” with acquaintances whose political views and life experiences may be quite different from their own.

The larger issue, in O’Connor’s view, is trust. We no longer fully trust legacy media, whether it’s the New York Times or Fox News. Facebook, Google and other online services present their own trust issues. “But I’m optimistic,” he concludes, “that ultimately the ongoing digital information revolution will help us not only to trust, but also to verify.”

For newspapers, a digital break from the bad news

It’s hard to know what to make of the latest numbers from the Audit Bureau of Circulations given that the New York Times gets credit for a paid-circulation boost of 73 percent. Yes, it makes sense to add print and digital subscriptions together. But some of the numbers reported on Tuesday are anomalies that won’t be repeated once digital subscriptions grow into maturity.

Still, good news is good news. Thanks to digital subscriptions, the Boston Globe registered a 2.5 percent circulation boost on Sundays (now 365,512) and a 2.9 percent increase on weekdays (225,482) — the paper’s first increases since 2004. Those numbers, though, do rely to some extent on favorable ABC rules when it comes to counting digital readership.

The Globe reports 18,000 digital subscriptions. ABC gives the Globe credit for about 33,000 digital readers. The difference is that the 18,000 figure counts Globe readers whose only subscription is digital. The higher ABC figure encompasses those whose subscriptions include some combination of print and digital — “engaged home delivery print subscribers who access BostonGlobe.com at least once per week,” according to an email from Peter Doucette, the Globe’s executive director of circulation sales and marketing.

Boston Herald publisher Pat Purcell has talked about a paid-subscription model for his paper, and I’d imagine that talk is likely to increase after Tuesday. The Herald’s daily paid circulation fell by 12.3 percent, to 108,548; on Sundays it declined by 6.2 percent, to 81,925. In its own story today, the Herald emphasizes the popularity of its free website, traffic to which it claims is up 25 percent over the past year.

One point the Herald does make in its rather snippy account of the Globe’s numbers is that paid digital circulation simply isn’t as valuable to advertisers as paid print circulation. That’s true, and, if anything, the situation may be deteriorating. According to newspaper analyst Alan Mutter, the share of online advertising going to newspaper websites dropped to an all-time low in 2011.

What that means is the question of who will pay for journalism remains as vital as ever. The newspaper business is proving that at least some of its users are willing to pay for online news. Will there be enough of them to make a real difference — and will they be willing to pay enough to offset the continuing loss of advertising revenues?

Those are questions that will have to be answered. For now, we should all be glad that the issue is whether the new circulation numbers are as good as they seem. That’s a nice break from wondering if the bottom is about to fall out.

Journalism that deepens our understanding

Walmart in Merida, Mexico

I’d like to call your attention to three stories that stood out for me yesterday as examples of high-quality journalism that tells you something important that you didn’t already know, that places isolated facts within a broader perspective, or both.

• First up is David Barstow’s remarkable New York Times story on Wal-Mart’s Mexican bribery scandal — a scandal that was known to few outside Wal-Mart before this weekend. Clocking in at a New Yorker-like 7,600 words, Barstow’s article documents corruption at every level of the company, from active bribery in Mexico to passive acceptance at Wal-Mart’s U.S. headquarters.

Given the complexity of the story, I thought the “Guide to People in This Article” was a nice touch. So was the inclusion of Wal-Mart’s full response as a stand-alone document.

The story is a tour de force with implications that will be playing out for some time to come. It’s also a reminder that there are certain types of public-interest journalism that can be carried out only by a high-profile, well-funded news organization with its own army of lawyers.

• Next is Meghan Irons and Beth Healy’s Boston Globe article on the financial crisis that threatens the Charles Street African Methodist Episcopal Church, a leading institution in Boston’s African-American community that is in big trouble over an ill-advised expansion project.

The church’s primary lender is another African-American institution, OneUnited Bank, which brought down the hammer in part as a reaction to its own problems related to the national mortgage crisis.

The story has been in the news for some time now, but Irons and Healy are the first to pull all the strands together in a way that makes sense, even though no one from OneUnited would talk with them on the record. It’s fleshed out with photos and a video of a recent protest by African-American leaders in front of OneUnited headquarters.

• Finally, I was driving home from work on Sunday when I heard a long (11:29) piece on NPR’s “All Things Considered” called “Poverty in America: Defining the New Poor,” which explained how Clinton-era welfare reform has resulted in a shift toward food stamps as the primary means by which the government provides assistance to poor families.

During the recession of the past several years, the number of Americans on food stamps has risen from about 30 million to about 46 million.

Particularly riveting was NPR’s interview with Vicki Jones, who recently wrote an op-ed piece for the Chicago Sun-Times on what it’s like to live on $60 a week in food stamps while going to chiropractic school full-time and supporting her 7-year-old son.

Although the clear message of the story, reported by Guy Raz, is that we are not doing enough for the poor, the piece also functions as an outstanding explainer, bringing into focus a number of issues that are poorly defined when used as debating points by partisans.

Thanks to the Times, the Globe and NPR, I know more today than I did 24 hours ago.

Photo (cc) by ruffin_ready and republished here under a Creative Commons license. Some rights reserved.

Obama’s war on journalism and free expression

President Obama

This commentary also appears at the Huffington Post.

Kudos to David Carr of the New York Times for shining a light on an issue that doesn’t attract nearly the attention that it should: the Obama administration’s abuse of the Espionage Act, which in turn has led to a virtual war on journalism and free expression.

As Carr notes, the Espionage Act, approved in 1917 during the hysteria of World War I, was used three times before President Obama took office in 2009 — and six times during his presidency.

We live in a dangerous era, and there have been prosecutions with which it may be hard to disagree. Carr cites the case of Bradley Manning, who’s been charged with stealing national-security documents that are at the heart of the WikiLeaks disclosures.

But Carr also writes that leak prosecutions often seem to be aimed more at punishing people for embarrassing the government than for genuinely damaging national security. In a particularly ironic case, a former CIA officer named John Kiriakou has been charged with leaking the names of agents involved in interrogating terrorism suspects. Carr points out that “none of the individuals who engaged in or authorized the waterboarding of terror suspects have been prosecuted.”

(More about the Kiriakou case from the Reporters Committee for Freedom of the Press. Kiriakou has denied the charges.)

Kudos, too, to Jake Tapper of ABC News, whose confrontation with White House press secretary Jay Carney is the hook Carr uses to delve into the issue. A fuller account of Tapper and Carney’s exchange can be found here. Here’s Tapper responding to Carney’s praise for the journalist Marie Colvin, killed in Syria last week:

How does that square with the fact that this administration has been so aggressively trying to stop aggressive journalism in the United States by using the Espionage Act to take whistleblowers to court? You’re — currently I think that you’ve invoked it the sixth time, and before the Obama administration, it had only been used three times in history. You’re — this is the sixth time you’re suing a CIA officer for allegedly providing information in 2009 about CIA torture. Certainly that’s something that’s in the public interest of the United States. The administration is taking this person to court. There just seems to be disconnect here. You want aggressive journalism abroad; you just don’t want it in the United States.

I suspect Obama and Attorney General Eric Holder have gotten a pass from many liberals because they believe a Republican president would be even worse on such matters. The fact is, though, that no president has been more aggressive than Obama in prosecuting suspected leakers.

And given the way the media work, it’s no surprise that they’ve said little, since the heart of what they do is respond to accusations. The storyline being promoted by Mitt Romney, Rick Santorum and Newt Gingrich is that Obama is weak on national security, so they’re certainly not going to criticize the president for being too tough on leakers. Thus, no story.

When the government wants to take suspected leakers to court, it inevitably demands that journalists reveal their confidential sources. There is no constitutionally recognized right for journalists to protect their sources, and no federal shield law, which means that such cases have a considerable chilling effect on tough reporting.

In 2006, “Frontline” interviewed Mark Corallo, who was director of public affairs for George W. Bush’s first attorney general, John Ashcroft. In this transcript, you’ll see that Corallo, with the support of Ashcroft — not generally thought of as a friend of the First Amendment — approved only one subpoena for a journalist out of “dozens” that were requested. Corallo continued:

I can’t tell you about that case. It was a national-security case. I believed, after long reflection, that it did put innocent people’s lives in danger, our allies, people in other countries who would be subject to terrorist attacks. The case was so egregious; it was such a horrible instance of unethical behavior by a journalist to boot.

I hope Tapper’s tough questioning and Carr’s column are the beginning of a genuine attempt to hold the Obama White House to account for its repressive policies.

Copyright hypocrisy at the New York Times

Last Saturday the New York Times posted a PDF of a 1976 article by the legendary Boston sports journalist Clark Booth that appeared in the Real Paper, an alternative weekly that was published for several years in the 1970s. The article accompanied a column by Joe Nocera on football injuries, about which Booth wrote perceptively some 36 years ago.

I have to confess I didn’t think twice about copyright, figuring Booth, whom Nocera interviewed, had given him permission to reproduce his words. But now Boston Phoenix editor Carly Carioli has pointed out — rightly, in my view — that, in fact, the Times has violated the Real Paper’s copyright and that of the photographer(s) whose work was reproduced. And since the Phoenix acquired the Real Paper’s assets when the paper went out of business, the Times must answer to the Phoenix.

The Times’ reproduction clearly fails the fair-use test, most obviously on the grounds that it reposted the Real Paper article not for the purpose of commentary and criticism, but so that its readers could enjoy reading it. I imagine the Times could also get whacked for taking too much of the article (i.e., the whole thing). Even though it would be tough to argue that anyone lost any money as a result of the Times’ actions, another important fair-use test, I’d guess a judge would favor the Phoenix if it ever came to that.

But Carioli is not concerned with the negligible harm the Times has done to the Phoenix so much as he is with the behemoth’s rank hypocrisy. Former executive editor Bill Keller, now a Times columnist, has been obsessed with the nefarious forces whom he believes have been improperly profiting from Times content. And, Carioli notes, the Times reached out and killed a pretty cool iPad app called Pulse merely because it reproduced headlines without permission.

Writing that “copyright in this country is a goddamn mess,” Carioli continues: “We want an internet and an intellectual-property regime that rewards discovery and innovation. We won’t get it with copyright construed the way it is now.”

And we won’t get it with the Times saying one thing and doing another.

Addenda: (1) I had the privilege of copy-editing Clark Booth’s weekly sports column for a short time in 1990, when I was working at the Pilot, for whom he still writes; (2) you can also read Booth in the Dorchester Reporter.

Disclosure: I’m a contributor to the Phoenix, and was a staff member from 1991 to 2005. I have a standing disclosure here, but sometimes it doesn’t hurt to remind people.