Thursday, May 31, 2012

If you want to understand newspapers' future ...

Then you have to read the interview with Media General CEO Marshall Morton in RichmondBizSense.com about why Media General agreed to sell most of its papers to Warren Buffett.

Say all you want about "Mismanagement General" - and there's plenty that can be said. But Morton lays some stark truths on the line:

Although the bulk of its cash flow — 87 percent in the first quarter —comes from its TV stations, owning newspapers put Media General at a disadvantage when it came time to renegotiate its huge debt load.
That blindsided Media General, Morton said.
“The banks who had lent us the money no longer wanted to lend to media companies,” Morton said. “They just don’t have confidence in newspapers. You can talk until you’re blue in the face about the value of newspapers in communities, but if you can’t get capital …”


And this:
Publishing revenues are down about 50 percent over the past five years, Morton said, but much of the costs— printing presses, delivery drivers, etc. — have held steady.
“There was nowhere to hide from these revenue declines,” Morton said.

“Over the past five years, our first thought was that this was heavily due to the recession and, like many other recessions in the past, that this was a cycle. You tighten your belt, freeze hiring and even drop the number of people.

“So we went through a couple years thinking that was the way to handle it. But it kept going.”

It wasn’t until the second quarter of 2011, Morton says, “that we realized the world had changed.”
I don't think Buffett is all nostalgic and doesn't understand the newspaper business as people like Clay Shirky suggest. In fact, I don't think he really bought newspapers at all - he bought cash flow from properties that, in general because of their location, are likely to throw off decent cash for at least a decade. He bought them at a fire-sale price. And he got the real estate and a 20 percent stake in Media General's broadcast operations as well (just as has often been noted, McDonald's is not so much a hamburger company as a real estate holding company that happens to sell hamburgers.

So when he's done getting he cash, he can flip the real estate (if not before)

Meanwhile, over at John Robinson's blog, in response to his skeptical post about paywalls, we continue to get from some of the comments the same old take-it-on-faith rubbish that as the younger generation gets older, has families, etc., they will become newspaper readers. Rip Van Winkle can't top that. Every stick of research in the past 20 years shows that each generational cohort reads the newspaper less and does not convert as it ages. Back to my rant last week about journalists failing to even read the research about their industry - and then waking up surprised.

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Friday, December 17, 2010

Winston-Salem copy desk's last day

Sad but classy good-bye to Winston-Salem Journal's copy desk that is going away under Media General's consolidation:

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Friday, September 03, 2010

It's baaaack - all this talk of converged newsrooms

The announced merger of Salt Lake City's Deseret News and sister KSL stations into one newsroom has the blogosphere all atwitter.

There's Ken Doctor over at Nieman Lab with an analysis worth reading.

There's Alan Mutter at Newsosaur wondering if newspaper-TV mergers are the next big thing.

Put me in the less-than-sanguine column for a couple of reasons:
  1. Almost all of these that have happened are special circumstances of co-ownership - Media General's Tampa center, Lawrence, Kan. (where the paper actually created the TV outlet). Those situations are still relatively rare, with no immediate indication the FCC and Congress are willing to cave yet on allowing more of them. 
  2. Yes, perhaps the economic imperatives are high. But so are the barriers. Every academic study I've seen lays out those barriers, and we've reviewed a lot of them and looked at these operations through Newsplex. While I firmly believe that someday it's all going to come down the same digital pipe, whether it comes from merged newsrooms is an entirely different matter.
  3. There's this little thing in the back of my head that says the Founding Fathers had this idea that competition in journalism is a good thing. Oh, how Neanderthal of me, I know. And certainly, from a business perspective as Doctor points out, how probably irrational. But I get all warm and fuzzy when I see two people, not one, working on a story from competing operations because then I have a better sense that all the questions will be asked and the angles examined. And if three or more are on it -- for a moment, let's exclude the "pack" stories -- I get positively jiggly. Now, the argument will be that there's lots of other competition out there - blogs, hyperlocal sites, etc. But study after study (plus my own experience - see the report in red in the right rail - with such a site) shows that's not the case yet. The marketplace of ideas envisioned so long ago is thwarted by the economic marketplace we see today.
And yet there may be no choice eventually. Consider this from Paid Content relaying an analyst's observation that even in the best case, online customers are worth about a quarter of those in print, even when there is a paywall.

Meanwhile, the battle of the teens is shaping up to be who can come up with ways to end-run the Web with other digital distribution platforms. We've finally gotten over the fallacy that the content - most of it anyway - is worth that much (and as noted here many times, even if it is, the cost of capturing the relatively fleeting economic value is too great) and are starting to openly admit it's all about control.

So the industry is focused on mobile, where people are used to paying, and there are projects afoot to "plug the leaks" in the Web by creating alternative distribution systems or those that seek to thwart standard Web protocols tilted toward distribution, not control. (David Sullivan has some further thoughts on all this, and see TechDirt's rebuttal to the current meme that apps will fundamentally change the Web.)

Chew on that along with your cole slaw this holiday weekend.

------
I will say that I am fascinated with the description of the Salt Lake City operation on Doctor's post.

The new staff of something more than 200 (Gilbert is being cagey about the number) will be expected to multitask, with remaining staffers increasingly cross-trained and “new employees expected to have those skills.” Do the math. If it took four people to do a story and now it takes only one, you can afford to jettison one of those positions and get more productivity out of the other two.

Step two: “Deepen coverage,” meaning the re-allocating of resources to cover issues most important to the readers. Gilbert says that about half of the remaining news staffers will serve in the “integrated newsroom,” with the remainder staying in more traditional journalistic roles. In that integrated newsroom of roughly a hundred, a third will serve as first responders/rewrite and two-thirds as field reporters. “You’re sandwiching the reporters between first responders [getting to news and getting it out quickly] and rewrite [those taking the reporters work and purposing it for various platforms],” explains Gilbert. Those who first-respond also do rewrite — so that’s going to be a busy staff.

The journalistic question: How do the new stories compare to the old ones?

Converged or not, I suspect they're on to something here as far as how staff resources are likely to be allocated in the future. This follows on the heels of the USA Today realignment which includes putting digital first and throwing everything at a story in the first 30 minutes.

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Saturday, April 17, 2010

Media General Consolidation - a bit more detail

Media General confirmed last week that it would consolidate editing at Richmond and Tampa, leaving Winston-Salem the odd man out.

Here are a few more details I've picked up:
  • Apparently the decision on Tampa reversed course. MG originally feared it could be vulnerable to hurricanes, but there was heavy lobbying, and MG had made investments in Tampa and Richmond that it had not made in Winston-Salem.
  • The 21 Winston-Salem staffers get a chance to move. Those who don't will get severance, and those who do move will get relocation.
  • Media General will roll out CCI among all three papers (it's the system the Tampa Trib now uses). The transition should be done by August.
  • The consolidated desks will be treated as a separate content division, with the managing editor reporting to Donna Reed,  vice president of content.
(Note: Working on consolidated desks and the problems associated with juggling the needs and egos of so many papers came up during my Friday panel at ACES2010. I suggested this would be a good panel for next year at Phoenix, and from Tweets and talking to people, I hear the recruiting of panel members already is going on. This is going to be a major focus next year. By that time, all the major chains and AP will have gone to editing hubs.)

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Wednesday, April 07, 2010

Media General consolidates design/editing of metros

Well, Media General has finally dropped the lopng-awaited other shoe -- it's consolidating design and some editing for its three metro papers:

FOR IMMEDIATE RELEASE
Wednesday, April 7, 2010

Media General to Consolidate Copy Editing and Page Design for its Three Metro Newspapers

RICHMOND, Va. – Media General, Inc. (NYSE: MEG) said today it will consolidate copy editing and page design for its three metro newspapers, The Tampa Tribune, Richmond Times-Dispatch and Winston-Salem Journal.

The consolidated metro editing and design operation will have two groups, one in Tampa, Fla., and one in Richmond, Va. The operation will be led by a single managing editor located at the Richmond facility. Each of the two groups will have primary responsibility for particular sections and pages for all three metro newspapers. The next steps are to select the managing editor, install common production software and establish common design elements that will facilitate production efficiencies. The consolidated operation is expected to start up in the third quarter of this year.

The metro operation will be the third of its kind for Media General. The first became operational in Lynchburg, Va., in April 2009. The second started up in Hickory, N.C., in October, 2009. At this time, 12 of Media General’s 23 metro and community newspapers are either part of or transitioning to a consolidated editing and design operation. The company expects to have all of its newspapers in a consolidated editing and design operation by the end of the year. Once all newspapers have completed the transition, Media General expects to realize annualized cost savings of more than $1 million from efficiencies related to this initiative, starting in 2011. The company intends to use a portion of the savings to focus on intensified local news coverage.

“Our consolidated editing and design operations allow our newsrooms to focus on strong local news reporting. Stories will be edited once rather than multiple times, and we can take advantage of economies of scale and centralization of top talent,” said Donna Reed, Media General’s Vice President of Content. “Our customers will be unaffected by this internal process change and all news decisions will continue to be made by our local editors,” said Ms. Reed.

Over the past 10 years, Media General has consolidated and centralized a number of broadcast functions, including traffic, master control and graphics, and newspaper functions, including printing and distribution and various call centers. This approach allows the company’s properties to focus on their local communities while creating resource groups that both increase quality and provide significant process efficiencies.

The Lynchburg editing and design center produces the pages for The (Lynchburg) News & Advance, Danville Register & Bee, and the company’s Rockingham, N.C., community newspapers. The (Manassas, Va.) News & Messenger and The (Waynesboro, Va.) News Virginian are in the process of transitioning there.

The Hickory, N.C., editing and design center produces the pages for the Hickory Daily Record, Statesville Record & Landmark, The (Morganton) News Herald, The McDowell News, and the weekly Mooresville Tribune. The Florence (S.C.) Morning News and (Concord & Kannapolis, N.C.) Independent Tribune are in the process of transitioning there.

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Wednesday, January 06, 2010

Media General's editing hub plans confirmed

My previous post about Media General looking at creating an editing hub for its three largest papers in Richmond, Va.; Tampa, Fla.; and Winston-Salem, N.C., has been confirmed in an article announcing the resignation of Winston-Salem Managing Editor Ken Otterbourg:

From the article:

"Also, I have some disagreements with Media General's plans for our newsroom," he said. "I'm not in favor of consolidating our editing."

Media General Inc., the owner of the Journal and other media outlets, is considering consolidating the copy-editing and design functions of its three largest newspapers -- Winston-Salem, Richmond and Tampa, Fla. -- in one location. It already has created such news centers for its community newspapers in North Carolina and Virginia.

"I appreciate Ken's concerns about the impact on the (newspaper's) quality," said Carl Crothers, the newspaper's vice president and executive editor. "We are going to make sure that the newspaper's quality will not be affected."


And to be fair, though my sources apparently had the Richmond/Tampa/Winston-Salem thing dead on, there were rumors earlier about MG's smaller papers (the editing of many now having been consolidated in Lynchburg, Va.), and Rachel Kaufman of Media Jobs Daily had that rumor in October.

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Saturday, January 02, 2010

Media General looks at editorial hub

Word from several sources is that Media General may be the latest looking to create an editing hub for its major papers in Richmond, Tampa and Winston-Salem.

My sources say the MG discussions began several months ago and that execs have been getting ready to visit (or may already have started visiting) others who have done the same things.

Such hubs aren't new. Scripps has done it for some of its Florida papers and Media News has done it - and taken lots of flack - for the consolidation of its editorial operations at its Bay Area papers in California. AP did away with most of its national desk in New York and created editorial hubs across the country.

Gannett has started it, too; for instance, the Louisville Courier-Journal has taken over much of the editing of the papers in Greenville, S.C., and Asheville, N.C.

And as News & Tech recently reported, some publishers take it even further, seeing the day when everything but the creation of new content is outsourced.

The folks I've talked to tell me that Winston-Salem seems to be a favored spot for the Media General operation, but all is in flux, including whether to even do it.

Update:
Another source reminds that MG has already created a hub in Lynchburg for many of its Virginia papers, as well as those in Reidsville, N.C., and Eden, N.C. Word is, the person says, that the hub will eventually handle all Virginia papers except for Richmond and Bristol.

Update 1/6: Media General's plans are confirmed with resignation of Winston-Salem Managing Editor Ken Otterbourg.

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Wednesday, October 07, 2009

Hartsville Today - RIP, but being reborn

Hartsville Today, the almost 4-year-old community news service serving Hartsville in eastern South Carolina died on Friday when the Amazon server (and it turns out the backup) on which it was being run went RIP.

HVTD, as it was known, was one of the first projects funded by J-lab in 2005. In many ways, it was a success, having grown to 1,900 registered members and at least triple that in unique users in a market area of 20,000. The "cookbook" about creating the site (link in the right rail) has been translated into Russian, we are told, has been downloaded more than 3,000 times from our servers and has been linked to by Yahoo's You-Witness News site.

In some ways, it wasn't a success, having never been integrated into the operations of The Messenger, its publishing partner that, in the middle of this, was sold to Media General (research report here, Grassroots Editor, Winter 2008 (pdf)).

Now, Hartsville Today begins a new life. It is being rebuilt by Media General using the Expression Engine platform instead of Drupal, which was our original publishing system. Some things will be different; we're not entirely sure yet. Of course there will be some differences in filing, but we're still looking at things like pictures, calendar functions etc.

A page-holder should be up shortly, and the first phase of the rebuilt site should go up sometime next week.

So now we have some potential new research. HVTD was a vibrant community. Can such communities stay together given this kind of disruption and digital tragedy? What will it take?

We'll see.

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Thursday, July 10, 2008

AAghhhh, the 'circles' are back

The "circles" are dead. Long live the "circles."

We know about the "circles" here in Columbia. We went through them in the 1990s. At The State. With Gil Thelen.

It's not that we didn't like them. Something was needed to break the newsroom out of the old, hidebound model. But the circles with their beats divorced from bricks and mortar and concentrating on the "big picture look," connecting the dots, whatever, produced unintended side effects, like the newspaper's discovering major lawsuits days after they were filed but treating them as today's news, etc. (You could do that in the "good old days" before an army of bloggers could call you on it.)

(I was at AP at the time, so I had a dog in the hunt, being as this was the biggest paper in the state and it relied on us, "uncircled " as we were, to cover a lot of the daily beat stuff -- at least judging from the almost daily calls I got from the paper's "governing" desk.)

Thelen went to Tampa."Goodbye circles," we said as they headed for Media General's News Center, that crucible of "convergence." (Except things never really converged between the newspaper, TV station and online - I know this because I have contacts in that building. I have gotten the cook's tour. I have talked with the rank and file.)

So I'm reading the rather lengthy memo from Tampa Exec. Ed. Janet Coats (Thelen is now retired) about the upheaval there, and there they are again, the "circles."

News Circles – the units where news is produced. Each group is composed of reporters, editors, television and online producers and visual journalists who are working to create the stories we’ll use across all platforms. Reporters receive their story assignments from within these groups, and the front-line editing occurs here. Photographers work within these groups, and the first cut at photo and video selection occurs here. The managers in this unit get performance feedback from the audience editors and the news leadership, as well as their direct reports.

Finishing Circles – the units where content is made ready for publication, broadcast and posting. These groups are responsible for melding the knowledge of audience with an understanding of what the audience expects from print, television and the Website. The finishing circles act as advocates for the individual platforms. The managers in this group get performance feedback from the audience editors and the news leadership.
"Finishing circles"? What next, quilting bees? (Or as the mysterious and sexy woman I was with last night said over dinner when I mentioned this: "I'm thinking, what, are they Amish?")

AAaaaaaaggggggggghhhhhhhh. Run for your lives!

All right, enough funsies. No, I'm not going to knock Coats' plan into a cocked hat. Parts of her plan actually make some sense. When you finally get the circles image out of your brain and give it a hard look, it has a lot of the same aspects of the Atlanta Journal Constitution's reorganization plan of a little over a year ago.

(It's just that Coats, already with a rather checkered history for some of her moves in Wichita -- when she was Janet Weaver, in case you're keeping score -- had the unfortunate timing of making the announcement as she was laying off people. That included a sports writer who, at the paper's urging, had moved to Tallahassee to cover Florida State sports and then was told the paper was cutting that slot (see his story - scroll down).)

And it followed what had to be one of the worst two-week periods for employment in the newspaper industry. And then there was the perky intern who blogged about it somewhat intemperately before a holiday weekend, setting off three-day flame war among the traditionals and the digiterati* that perfectly encapsulates the mood afoot in many newsrooms these days. (Note to Janet: Check your horoscope next time. Timing, as they say, is everything.)

Coats, and Julia Wallace at the AJC earlier, are splitting off production of the paper (and in Tampa's case, the newscast) from the production of news. (Gannett's "information centers" don't seem to have done that quite so much, but someone fill us in in the comments section, if I'm wrong.) This is the model we've been promoting in one way or another for five years at Newsplex, the experimental news center at USC.

Newsgathering/journalism is a service business. Putting out a newspaper or a broadcast is an industrial undertaking. It was pretty much just an accident of oligopoly and an artifact of the Industrial Revolution that allowed them to be happily married for about 120 years. David Sullivan hit it perfectly on on his blog:
[N]ewspapers are essentially a logistics business that happens to employ journalists. ... That's why, in the end, you can lay off reporters easier than you can lay off truck drivers. You have less in the paper, but you get it to the dropoff site on time, because the core financial contract (for 80 percent of your money) was always -- we distribute the ads to the right place on time.

Now, this may not be the core competence of journalists -- who may be collecting, evaluating and presenting news and information to people in whatever form they wish and at whatever time they wish, doing it for themselves or in the pay of all types of companies. And in today's environment, perhaps journalists and their work would be better served by an employer who had different competencies. But of all their employers, the newspaper company also knows best how to run a factory, and the bigger ones know how to run a trucking company.

Sullivan argues, essentially, that newspapers and journalists remain joined at the hip for now (his argument could be extended to broadcasters and the traditional TV model too). But this just serves to shackle newsrooms' core competency of getting valuable and valued information in front of the consumer on time. Too many remain tied to "big iron," both physically and psychologically.

And that's where the Trib and AJC come in.

If Coats' plan, and the AJC's work out**, the production part of the operation -- the copy desks, designers, etc. -- go to their own pod, circle or whatever. Online should also be separate as a production unit. Tampa's case also gives us the first real look at how a broadcast unit also hooks into this mix. In the ideal model, the newsroom itself remains platform agnostic.

And before you get all lathered up, I am not proposing to move online back to the "digital ghetto" to which it was too long relegated. In fact, this gives it equal status, or should, with the two other production units (and any future ones we might dream up) as supplicants to the newsgathering part of the operation.

At least that's how it should be. The devil, of course, is in the details -- or in Tampa's case, the circles.

First, the very nature of a medium dictates that it will have some influence on newsgathering. It does no good to have the newsgathering apparatus separate if it cannot produce the assets needed by all production units, but all are not created equal. Depending on the story, one medium is more likely to dominate. And while it's neither likely nor efficient that every "circle" will produce all types of elements on every story, each circle will have to produce more than one type (otherwise, you're just back to the old division of labor model, or more as it is practiced today, division of labor and, oh, can you throw an Internet piece together on that for me, too, model).

Thus, it will take a Herculean effort to ensure a proper mix and balance, a job made doubly difficult by the documented difficulties of mixing sometimes antagonistic cultures. (Another summary here.) And between those circles are going to be some shark-infested waters as the news circles compete for resources (not to mention the tendency toward turf wars).

We're suddenly, finally supposed to become one big, happy family? Fat chance, wrote one of my contacts who has deep channels into the building.

And where the thing will go awry... they hate and do not trust each other. There is NO compromise in that crowd. When they sing a scale... none can get past the third note.... which invariably gets repeated like a stutter, wrote the other.

No exactly ringing endorsements from people who I will assure you do not belong to the curmudgeon class. Human nature can be that way, of course. And maybe they'll pull it off. I hope they do. But in any case, silly circles or not, worth watching closely because if they can pull it off, it should produce structures where the news gathering is not tied to the platform. That means more flexibility and, we'd hope, more ability to adapt with alacrity to new technologies not already seen.***

So far, short of blowing it up and starting over, these are the most hopeful models I've seen.


* Look, there are no terms out there that aren't going to p-o somebody, so get over it, OK?
** I'd love to have someone check in from the AJC and tell us how it's going.
*** It also, I would hope, sever the still-too-prevalent idea that online is an adjunct of the newspaper. For instance, how many newsrooms have a "social media expert" on their online staffs tasked with 1) thinking about existing and new social media apps and 2) figuring out how to use those to grow online audience? Doesn't have to be "an" expert -- anyone on the staff can pitch in with new ideas and try to implement them. If online is set up as its own area and charged to grow revenue and readership, good things might happen. Meanwhile, on the other side of the equation, the news gatherers, freed from having to be media specific, can be thinking about how to get ALL the relevant assets on a story or point people to those it can't get.

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