The Globe loses its contract to print The New York Times

Sign outside the Globe’s printing plant in Taunton. Photo (cc) 2018 by Dan Kennedy.

The Boston Globe has lost its contract to print the regional edition of The New York Times at its Taunton facility. The Times will instead now be printed at the Dow Jones plant in Chicopee. Dow Jones is the parent company of The Wall Street Journal.

When the Globe’s Taunton printing plant opened in 2017, the hope was that it could turn a profit for the paper by taking on outside clients. The facility got off to a rough start, though, with publisher-owner John Henry writing a front-page note to subscribers admitting that the presses “are operating too slowly and breaking too often.” He added: “We are embarrassed. We are sincerely sorry to all those affected.” In my 2018 book, “The Return of the Moguls,” I described the launch of the Taunton plant as a “disaster.”

At one point, the Globe printed the Times, the Boston Herald and USA Today. The Herald decamped for The Providence Journal some time ago. When I asked Globe spokeswoman Heidi Flood whether the Taunton facility currently has any outside work, she answered only that “we are always exploring ways to bring more work into the plant.” She did say that Taunton now handles the entire Globe print run. At one time the Globe was jobbing some of its run out to The Eagle-Tribune in North Andover; I’m not sure when that stopped.

I’ve heard that the Taunton plant has laid some employees off as well, but Flood did not address that when I asked her about it by email. The full text of her statement follows.

I can confirm that the Times decided not to renew their printing contract with the Globe. We worked very hard over many months to keep their business in a way that also worked for ours, but were not able to arrive at a financially sustainable agreement. While the pending NYT departure is disappointing, from a business perspective it’s the right decision and positions us more favorably for the future.

The Times’s decision to print elsewhere will not affect our Globe print operations. Taunton currently handles the entire Globe print run and we are always exploring ways to bring more work into the plant. First and foremost, the Globe remains committed to meeting the needs of our valuable print subscribers.

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Emulating its R.I. strategy, The Boston Globe next year will move into N.H.

The State Capitol in Concord, N.H. Photo (cc) 2010 by Jimmy Emerson, DMV.

There was news in Mark Shanahan’s Boston Globe story on the decline of the once-great Providence Journal under Gannett ownership: the Globe is opening a New Hampshire bureau sometime in 2023, a move similar to what it’s done in Rhode Island.

At one time the Globe took New England coverage seriously, even publishing a Sunday section called New Hampshire Weekly. On a recent episode of our podcast about local news, “What Works,” Nancy West, executive director of the investigative news organization InDepthNH, said she would welcome a Globe comeback in the Granite State.

“I loved it when the Globe came up and was doing important reporting,” she said, citing in particular the paper’s coverage of a cardiac surgeon at Catholic Medical Center in Manchester whose horrendous malpractice record was obscured by his status as an operating-room star. “Was I a little jealous? My first instinct is jealousy, of course,” West told us. “But then I’m just really pleased that the word is getting out.” She added: “I would love to have the Globe come back. I would love to see it because we just need talented reporters on the street. And I think competition is healthy.”

Unlike Rhode Island, New Hampshire’s two major daily newspapers, the New Hampshire Union Leader and the Concord Monitor, are independently owned. Both, however, have endured significant cuts to their reporting capacity in recent years. As West says, another news organization focused on the state would be welcome.

As with Rhode Island, New Hampshire is an opportunity for the Globe to sell more digital subscriptions without the hassle of bygone days, when it was necessary to truck papers across New England.

So where might the Globe go next? Vermont strikes me as a stretch. Connecticut? Probably not. Much of the state roots for the Yankees, and Hearst CT has a growing digital operation. Maine? Possibly, although the Globe has collaborated on some stories with the Portland Press Herald. I’m not sure they’d want to compete. If they do, David Dahl, a former top editor at the Globe who’s now editor of the nonprofit Maine Monitor, told us on “What Works” that he’d love to work with his old paper. “We’re open to any partnership discussions that we would have,” he said, “and if they want to affiliate with us, they’re more than more than welcome.”

The most logical move for the Globe after New Hampshire would be an expanded presence in Central Massachusetts — ironic given that Globe owner John Henry acquired the Telegram & Gazette of Worcester when he bought the Globe in 2013 only to sell it to out-of-state interests. The T&G eventually landed in the hands of GateHouse Media, which merged with Gannett; like most of Gannett’s properties, the T&G has been gutted.

At a time when the decline of advertising and fears of recession are leading to cuts even at once high-flying newspapers like The Washington Post, it’s heartening to see that the Globe continues to focus on expansion.

The Globe’s Rhode Island initiative may be expanded across New England

The Boston Globe’s Rhode Island section could be a model for other verticals devoted to different regions in New England. That’s the main takeaway from this week’s edition of “E&P Reports,” a vodcast produced by the trade publication Editor & Publisher.

The vodcast, hosted by E&P publisher Mike Blinder, featured the Globe’s Rhode Island editor (and my “Beat the Press” crony), Lylah Alphonse; Rhode Island reporter Dan McGowan; and Michelle Micone, the Globe’s vice president for innovation and strategic initiatives.

It was Micone who talked about expanding the Globe’s coverage to other regions. She specifically mentioned New Hampshire, Maine and Vermont but not Connecticut, which was either inadvertent or, more likely, a nod to the Nutmeg State’s very different media and cultural environment. I mean, my God, they root for the Yankees down there.

Alphonse and McGowan were careful not to criticize The Providence Journal, but let’s face it — the Globe’s Rhode Island project was begun in response to Gannett’s evisceration of that once great paper. Blinder said that the Journal’s full-time staff is down to about 14. [Note: The actual number is about 30.] Alphonse told me that Globe Rhode Island now has eight full-time journalists. Of course, the folks who remain at the Journal are doing good work under trying conditions, and Alphonse and McGowan were smart to acknowledge that.

One statistic that really hit me was that McGowan’s daily newsletter, “Rhode Map,” is sent to 80,000 recipients each morning, with an open rate of about 30%. By contrast, the Journal’s combined paid print and digital circulation on weekdays, according to data the paper filed with the Alliance for Audited Media, is a little under 31,000. (About 24,000 of that is print, showing that Gannett’s push on digital subscriptions has a long way to go.)

I also want to highlight the news that staff reporter Alexa Gagosz, one of our great master’s degree alums at Northeastern, is heading up expanded food and dining coverage in Rhode Island, including a weekly newsletter.

Now, to get back to possible expansion in other regions: Rhode Island was an opportunity that may not be entirely replicable elsewhere, thanks not only to the ProJo’s shrinkage but to the state’s unique identity. The state has a range of media options, including good-quality public radio, television newscasts and independent community news outlets. But the ProJo’s decline gave the Globe a chance to slide in and quickly establish itself as one of the players.

Where else does opportunity that exist? Worcester and Central Massachusetts strike me as in serious need of more journalism. The Globe memorably walked away from the region when then-new owner John Henry sold the Telegram & Gazette to a Florida-based chain after leading the staff to believe he was committed to selling to local interests. Soon enough, the T&G became part of Gannett, and it was subjected to the same devastating cuts that the chain has imposed throughout the country. The T&G carried on but is currently in flux, having lost its respected executive editor, Dave Nordman, to Northeastern, where he’s heading up the internal news operation. Could the Henrys return to Worcester? I’ve heard that might be within the range of possibilities.

But where else? New Hampshire and Maine both have good-quality independent newspapers, though New Hampshire’s two leading papers — the Union Leader and the Concord Monitor — have shrunk quite a bit. Vermont is unique, dominated by one of the most respected nonprofit news organizations in the country, VTDigger.

Then there’s the distribution model, which, if they were asking me (they’re not), is too reliant on print. Quite a bit of the Globe’s Rhode Island coverage appears in the Globe’s print edition. But rather than take on the cost of trucking more papers to Rhode Island, why not use digital to expand your reach and drive more digital subscriptions? What the Globe is doing with Rhode Island and print simply wouldn’t work if the paper established bureaus in Central Massachusetts, New Hampshire, Maine and Vermont.

The Globe is one of the few major metropolitan dailies in the country that is growing. What it’s doing in Rhode Island is impressive, and I’d love to see it happen elsewhere.

Correction: After this item was published, I learned that the Journal’s full-time newsroom staff is actually around 30 people, supplemented by freelancers.

Staying optimistic about local news amid the damage wrought by corporate chains

Providence, R.I. Photo (cc) 2017 by Kenneth C. Zirkel.

My research work on the local news crisis often feels like a race against time. On the one hand, I try to highlight independent community journalism projects that are keeping their heads above water or, in a few cases, are actually thriving. On the other hand, chain owners like Alden Global Capital and Gannett keep hollowing out the hundreds of newspapers they own across the country, not because they’re not making money but because they want to make more.

Last week came the odd news that Gannett is seeking to sell The Providence Journal’s printing plant for $8 million, as well as several other plants that it owns across the country. The story was broken by Alexa Gagosz of The Boston Globe, a former student of mine. What struck me as odd is that the Journal isn’t outsourcing its printing; rather, it intends to lease the plant back for a period of five or 10 years.

No doubt Gannett executives are thinking ahead to the day when the Journal goes all-digital. But the sell-and-leaseback provision seems hard to explain, especially for a paltry amount like $8 million. That doesn’t put a dent in the massive debt that Gannett is struggling with.

Also last week, The Atlantic published an essay about The Hawk Eye, of Burlington, Iowa, the oldest paper in the state, which was acquired several years by GateHouse Media — the predecessor to Gannett — and is now being dismantled. Written by Elaine Godfrey and photographed by KC McGinnis, it is a lovely piece, haunting and elegiac, conjuring a lost way of life as much as a newspaper that’s been hollowed out. But Godfrey has a keen sense of Gannett’s business model as well. This gets right to the heart of it:

Readers noticed the paper’s sloppiness first — how there seemed to be twice as many typos as before, and how sometimes the articles would end mid-sentence instead of continuing after the jump. The newspaper’s remaining reporters are overworked; there are local stories they’d like to tell but don’t have the bandwidth to cover. The Hawk Eye’s current staff is facing the impossible task of keeping a historic newspaper alive while its owner is attempting to squeeze it dry.

None of this was inevitable: At the time of the sale to GateHouse, The Hawk Eye wasn’t struggling financially. Far from it. In the years leading up to the sale, the paper was seeing profit margins ranging from the mid-teens to the high 20s. Gannett has dedicated much of its revenue to servicing and paying off loans associated with the merger, rather than reinvesting in local journalism. Which is to say that southeastern Iowans are losing their community paper not because it was a failing business, but because a massive media-holding company has investors to please and debts to pay.

So what’s lost? Consider the experience of Tom Courtney, a former state senator, who lost his re-election bid after he discovered that his constituents, lacking any reliable local news, were judging him on the basis of national stories instead:

In the absence of local coverage, all news becomes national news: Instead of reading about local policy decisions, people read about the blacklisting of Dr. Seuss books. Instead of learning about their own local candidates, they consume angry takes about Marjorie Taylor Greene. Tom Courtney, a Democrat and four-term former state senator from Burlington, made more than 10,000 phone calls to voters during his 2020 run for office. In those calls, he heard something he never had before: “People that live in small-town rural Iowa [said] they wouldn’t vote for me or any Democrat because I’m in the same party as AOC,” Courtney told me. “Where did they get that? Not local news!”

Also last week, the trade magazine Editor & Publisher ran a story about Gannett papers that have actually been bought back by local owners. Written by Gretchen A. Peck, the story looks in on four people who’ve acquired former Gannett papers and are now reinvesting in news and in their communities.

Still, it hardly looks like a trend. Peck spoke with newspaper broker Sara April, who said Gannett is selling just a few papers here and there. “All the markets are typically smaller. Look at the size of the towns. That has been the charge: To find quality local companies, with high regard for journalism, to take ownership of these newspapers so they can continue to serve their communities,” April was quoted as saying. No doubt the papers don’t fit with Gannett’s current strategy, which seems to be filling up its papers and websites with regional news so it doesn’t have to put too much into local coverage.

The good news — and there’s always good news — is that local independent journalism is thriving in many parts of the country. The bad news is that the corporate chains and the hedge funds continue to strangle news organizations that would otherwise be doing much better.

An earlier version of this post was part of last week’s Media Nation Member Newsletter. To become a member for just $5 a week, please click here.

The Globe adds a R.I. podcast; the union pleads its case in a full-page ad

A couple of yin and yang notes about The Boston Globe this morning.

First, the paper has expanded its Rhode Island coverage by adding a podcast, “Rhode Island Report.” The guest for the debut is former Gov. Gina Raimondo, now the U.S. secretary of commerce.

It’s good to see the Globe doubling down on Rhode Island, which has really been underserved by Gannett’s Providence Journal. But I’ve been noticing more and more Rhode Island coverage making its way into the Globe’s print edition. I thought the idea was to leverage digital. If this continues, I hope there will be some consideration given to replating so that there are separate print editions for Greater Boston and Rhode Island.

I also hope John and Linda Henry are giving some consideration to expanding in Worcester, which is a virtual news desert these days. You may recall that employees at the city’s daily, the Telegram & Gazette, said John Henry promised to sell it to local interests or keep the paper after he acquired it from the New York Times Co. as part of the Globe deal. Instead, he sold it to a Florida chain, and it eventually was passed off to GateHouse Media, now Gannett. (When I asked Henry about it several years ago, he told me he believed he had only promised not to sell to GateHouse.)

Second, the Greater Boston Labor Council, the Greater Boston Building Trades Union and the Communication Workers of America have purchased a full-page ad in today’s Globe in support of the Boston Newspaper Guild’s long quest for a new contract. You can see the ad here.

The FT offers a close-up look at how Alden is destroying the Hartford Courant

The state capitol in Hartford, Connecticut. Photo (cc) 2009 by Dan Kennedy.

Not too many years ago, New England was home to a number of medium-size and smaller daily newspapers that did an excellent job of covering their communities. There are a dozen or so that come to mind. But among the largest and the best were The Providence Journal and the Hartford Courant.

The Journal, as we all know, has been decimated by its corporate-chain owner, Gannett, the successor to GateHouse Media. The Hartford Courant, which bills itself as the oldest continuously published paper in the country, has been battered for years under the ownership of a chain now known as Tribune Publishing. The Courant’s printing has been outsourced, and the newsroom was shuttered recently as well. There is no indication that reporters and editors will have a place to work other than their homes even after the COVID pandemic is behind us.

As I’ve written several times recently, the hedge fund Alden Global Capital, whose MediaNews Group is widely regarded as the worst newspaper owner in operation, controls 32% of Tribune — and is seeking a majority share.

The Financial Times recently published a lengthy article on the plight of local news focused on the Courant. There is nothing new in the story — we hear about the widespread closure of community newspapers, the rise of hedge-fund ownership and other familiar themes. Nevertheless, it’s a strong overview for anyone who’s unfamiliar with the tale of what happened to a key part of democratic life.

There are also a few points that deserve to be emphasized. At a time when profits in local news are elusive at best, Alden is living high:

The cost cutting is certainly working. MediaNews Group achieved about 20-25 per cent operating margins in 2019, according to people familiar with the matter, more than double that of peers such as Gannett or even The New York Times. In 2020, although the pandemic shattered advertising and MNG’s revenues fell by 20 per cent, the company was still on track to make a profit.

The Courant itself is doing well from a bottom-line perspective as well, earning a profit of $2 million a year, according to the FT’s reporting.

What this shows is that there is still an inflow of cash into even the most moribund newspapers. Readers buy them despite their ever-decreasing value. Businesses advertise in them. If you’re willing to gut the newspapers you own to keep expenses well below income, and to keep cutting as income continues to fall, well, yes, you can earn a profit. At some point, needless to say, you’ll reach the point at which you can no longer cut. And that’s when you shut your doors. (Oops. Bad analogy. They already have.)

Heath Freeman and other officials at Alden rarely speak for the record. When Freeman cooperated with a Washington Post reporter last year, it, uh, did not go well. So I was interested to see that the FT did manage to get a comment out of a company spokesperson named Chrissy Carvalho. It was a classic:

It’s a lot easier to make snippy anonymous comments than actually undertake the difficult task of making sure news organisations across America are able to serve their communities during a prolonged period of declining revenues.

As the FT notes, there are efforts to try to get Tribune to sell the Courant to local interests. But that’s going to be hard to do given the paper’s continued profitability. The tragedy is that the crisis afflicting local news is only partly related to external factors such as technology, the decline of advertising and the rise of Google and Facebook. Corporate greed is at least as responsible.

Previous coverage:

The Globe partners with ProPublica and public radio in its push into Rhode Island

The Boston Globe’s Rhode Island vertical today features an investigative report from ProPublica and The Public’s Radio (formerly Rhode Island Public Radio) on “whether failures in Rhode Island’s 911 system are costing lives.” ProPublica stories are licensed under Creative Commons, which means that anyone can republish them for free as long as they give credit. (It’s a little more complicated than that, but not much.)

But if you go to the ProPublica version of the story, you’ll see a note that it was “co-published” with the Globe, which suggests some sort of exclusive arrangement — or at least a head’s-up. (The Public’s Radio version is here.) I asked Globe editor Brian McGrory to explain. His emailed answer:

We’ve got a good relationship with ProPublica. Its editors were kind enough to see if we had interest in co-publishing this story, an important look at a flawed system. We were delighted to do it. and it’s getting significant readership. We’ll keep looking for other opportunities to collaborate in Rhode Island, adding to the work of the three excellent reporters that we have on the ground.

Smart move by the Globe, as it was an easy way to get access to an important investigative story as well as to give a boost to its Rhode Island initiative. There is nothing to stop The Providence Journal or other news organizations from publishing the story, but it doesn’t seem likely given that the Globe, ProPublica and The Public’s Radio have already run it.

I also asked McGrory if he could say what region the Globe might target next as part of what looks very much like an effort to expand its digital footprint in various underserved parts of New England. Not surprisingly, he demurred — and, of course, it’s possible that no decisions have been made.

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The Globe’s URL for its Rhode Island vertical offers some intriguing hints

Is taxonomy destiny? Less than two weeks after GateHouse Media’s Providence Journal laid off a reported six journalists, The Boston Globe has unveiled a new online vertical for its expanded Rhode Island coverage. And the URL is intriguing. Rather than going with bostonglobe.com/metro/rhode-island, the address is bostonglobe.com/metro/new-england/rhode-island (emphasis added).

The Globe’s move into Rhode Island has prompted speculation that other regions might be targeted as well. And, as it turns out, there is a New England vertical on the site, although it doesn’t seem to be listed anywhere. You have to type it in. Who knew?

The great irony would be if the Globe made a move into Worcester, where GateHouse just laid off about six journalists at the daily Telegram & Gazette and the weekly Worcester Magazine. In 2014 then-new Globe owner John Henry sold the T&G to a Florida chain after reportedly assuring staff members that he would keep the paper if he couldn’t find a local buyer. Henry later told me he only remembered promising that he wouldn’t sell to GateHouse — which, of course, ended up with the paper anyway.

In any case, it seems that the Globe has built a system that would easily accommodate future expansion.

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The Globe gets ready to sail its Arc into Rhode Island

Big changes are coming for Boston Globe digital subscribers, not to mention staff members. Over the next few weeks, visitors to BostonGlobe.com will be driven to Arc, the paper’s new content-management system, according to an email to the staff from senior product manager Eric Westby. The email was passed along by a trusted source who asked to remain anonymous.

The Globe is licensing Arc from The Washington Post, where the CMS was developed.  As a Globe subscriber, I’m hoping for a consistent user experience across all platforms, web, tablet and phone, as is the case with washingtonpost.com and its “classic” (black) apps. The Globe unveiled an Arc-based mobile app last fall, but it remains underdeveloped. Among other things, you still can’t swipe horizontally through articles on the iOS version. (I’m told that you can if you’re an Android user.)

The final steps toward adopting Arc come at the same time that the Globe is making a digital push into Rhode Island, hiring three veteran reporters (so far) at a time when The Providence Journal is being decimated by GateHouse Media, its corporate chain owner. Improved digital platforms should help with that push — but only if the Globe really commits to getting Arc right.

The full text of Westby’s email follows.

Dear Colleagues,

A quick update on the upcoming Arc CMS launch. We’re happy to report that our Arc beta test has been a success, and we’ll be ending the test and moving BostonGlobe.com visitors to an Arc-driven site beginning April 22. Our plan is to transition the bulk of our traffic from Méthode to Arc gradually over the course of that week. Visitors will be randomly assigned to the Arc group in stages, with all traffic driven to Arc by Friday, April 26. Two things to note:

    • The plan is for the redesigned Globe.com homepage and the sports section front to follow one week later, in order to mitigate any potential workflow or technical issues at launch. Our current plan is to move these two critical pages from Méthode to Arc on or about May 1.
    • With this launch, we will have effectively moved BostonGlobe.com to a sleeker, more modern, and more flexible design, one that’s built for our future and run with the best system in its class. You’ll still notice an odd page here and there in the old site layout: Today’s Paper, Crosswords, Author pages, etc. We will be transitioning these pages one at a time in the weeks ahead, both to account for variables with the coding and to ensure our readers don’t lose any functionality during this important transition.

Articles will continue to be written and edited in Méthode for now, with the move to Ellipsis (Arc’s article authoring tool) soon to follow. This rollout will be a phased approach that will require training and careful planning. You’ll be receiving more information on the Ellipsis rollout soon.

There will no doubt be bugs to squash, but this launch will mark a major milestone in our Arc rollout.

All the best,

Eric Westby
Senior Product Manager, BostonGlobe.com

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Digital First to move Herald printing to GateHouse’s Providence Journal

When printing the Herald was not a problem. 1881 photo via Wikimedia Commons.

A key part of The Boston Globe’s strategy to reposition itself as a sustainable business has been to establish its printing operation as a regional hub for a variety of publications, including The New York Times and USA Today. That strategy has come under question since last summer, when its new Taunton printing plant got off to an exceedingly rocky start.

Now the Globe has suffered a significant blow, as Digital First Media, the incoming owner of the Boston Herald, will take the tabloid’s printing business to the Providence Journal, owned by GateHouse Media — ironically, one of the losers in the recent bidding to buy the Herald out of bankruptcy. Don Seiffert of the Boston Business Journal has the details.

The Globe’s business relationship with the Herald has been strained last September, when then-Herald owner Pat Purcell published a hotly worded statement in his paper blaming the Globe for the Herald’s printing woes. “We talk with the Globe on a regular basis but unfortunately the remedies they put forth to solve the production problems have failed miserably,” the Herald said at that time.

Although the Globe’s printing woes have by most accounts eased considerably (even if they have not been entirely solved), Digital First clearly wasn’t going to stick around. The Providence facility is well-regarded, and it was widely believed that GateHouse would move the Herald’s printing there if it won the bidding. Ironically, GateHouse will end up making money from the Herald even though its bid fell short. In a statement to the BBJ, Globe president Vinay Mehra said:

At present, we are unable to offer a competitive bid for that business. What this move affords us is the opportunity to continue to bring our production costs and efficiencies in line, take advantage of added capabilities for The Globe product, and deliver to our readers the best quality news product in the market.

I’m hearing reports from inside the Herald that the switch will require deadlines so early that evening sports stories may not make the print edition. Mehra, meanwhile, sounds like he’s just as happy to be rid of the Herald — something that would surely not be the case if everything was running smoothly.

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