Archive for November, 2009

Newspapers’ chief says ‘worst has passed’

Friday, November 20th, 2009

“U.S. newspaper industry ad revenue, helped by a slowdown in the drop of print ad sales, fell 28 percent in the third quarter, Newspaper Association of America data show,” according to Bloomberg News. “It was a narrower decline than the previous period.

“… Total ad sales plunged 29 percent in the second quarter.

“’The broad consensus is that the worst has passed,’ NAA Chief Executive Officer John Sturm said in a statement. ‘These numbers are in line with most expectations.’”

Reuters, on the other hand, says, “If AOL’s announcement on Thursday of another 2,500 job cuts is anything to go by, the painful layoffs that have ravaged the media industry over the past year are nowhere near over.

“Newspaper publishers haven’t posted a quarterly gain in ad revenue since the third quarter of 2006,” Bloomberg says.

Glad to have you, Sarah

Friday, November 20th, 2009

“I read Newsmax and the Frontiersman and The Wall Street Journal and everything online,” [Sarah] Palin said Wednesday night in an interview with Fox News host Sean Hannity.

Oh, no:  it’s our 100th post and it’s simply a cheap shot at a political hack. Ah, well.

Associated Press layoffs cross the country

Wednesday, November 18th, 2009

Update: The Newspaper Guild, a part of the Communications Workers of America, lists one Raleigh-based employee among its members laid off by the AP.

Update: From Editor & Publisher Friday morning: “The count of Associated Press union employees laid off this week has risen to 90, which, according to the news cooperative, meets its goal of cutting annual payroll costs by 10 percent. It is the AP’s largest cut in newsroom layoffs in memory, roughly 2 percent of its workforce.”

Update: From the News Media Guild Web site Wednesday — “The Associated Press informed the Guild late Tuesday evening that 57 employees received termination notices earlier in the day. The list includes 33 newspersons, 19 editorial assistants, and five photographers.”

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If we covered everyone in the news media making job cuts, that could be a whole other blog. But the Associated Press’ commitment to “lower its payroll costs by 10 percent by the end of 2009″ has a wide reach, with the cuts beginning Tuesday.

The Gawker is compiling a list of casualties. “From a tipster: They hear that ‘a high percentage’ of the editorial assistants nationwide are being let go, as well as a National Photo Editor. In all, they hear, the layoffs will total 80-90 people,” the blog says.

Anyone in the Raleigh AP bureau want to drop us a line?

“The AP, a nonprofit corporation controlled by United States newspapers, said it had about 4,000 employees worldwide a year ago,” according to The New York Times. “It reported labor expenses of $418.8 million in 2008, or 58 percent of total operating costs.”

Online or in print, newspapers still valued

Wednesday, November 18th, 2009

A new study from Scarborough Research finds that 74 percent of adults — nearly 171 million — in the United States read a newspaper in print or online during the past week,” Editor & Publisher reports.

This number counters the notion that newspapers no longer impact consumers. ‘Given the fragmentation of media choices, printed newspapers are holding onto their audiences relatively well,’ Gary Meo, Scarborough’s senior vice president of print and digital media services, said in a statement.”

Why copy editors … again

Wednesday, November 18th, 2009

BadJumpHeadThe San Diego Union-Tribune recently provided another demonstration of how the elimination of positions hurts the quality of a newspaper. Adopting a new pagination system with the stressed staff apparently didn’t help either.

“You can see another sign the new system needs tweaking when you check out the Obituary page and find one with the headline ‘Name Nameline’ and subtitle ‘This is a headline for a wire obituary;headline for wire obit,’” says NBC  San Diego.

(We first saw this on Media Jobs Daily.)

Non-print media subscriptions grow

Tuesday, November 17th, 2009

Americans are spending 7 percent more this year than last to subscribe to various media, a study says, but “print media would be an exception.”

The average household spends $115 a month for subscriptions to “television, DVR, satellite radio, subscription music, newspapers and magazines, mobile phone data, Internet access, Netflix and similar offerings, and online gaming services,” says researcher NPD in its “Entertainment Trends in America” study.

“According to the study, newspapers are in 29 percent of U.S. households and magazines are in 41 percent, but both are down 2 percentage points from last year,” says The Hollywood Report.

Meanwhile, a new study from Forrester Research says 80 percent of Americans are unwilling to pay for online newspaper and magazine articles and other content. Another recent study, by Boston Consulting, said 52 percent of American respondents were unwilling to pay for online news content.

N&O’s Living in Style breathes its last

Monday, November 16th, 2009

livinginstyleWake County subscribers to The News & Observer last Friday received  the final issue of Living in Style magazine, a bi-monthly published by the newspaper since 2006. Jim McClure, vice president for display advertising, told his staff in an e-mail this morning that, “Given our focus on Print & Deliver [a preprint insert program] and Yahoo sales, and taking into account the staffing changes that have recently taken place … [and] in light of the economic pressures on our building and home furnishings customers” the company will discontinue publication of the magazine.

All but one of Living in Style’s staff members left the company through layoffs and buyouts this year, and the publication itself, which once had a circulation of 87,000 per issue, has dwindled from a high of 92 pages in May/June 2007 to 32 in the past week’s November/December issue.

Living in Style was a huge undertaking by The N&O’s Display Advertising Department, setting out to publish a lifestyle magazine that would capture revenue being lost to other glossies produced in the Triangle. It was headed by the local advertising manager, and staffed by a single writer/copy editor – the author of this blog – in addition to a creative manager, design staff and ad sales representatives. Freelancers were enlisted for photography and additional coverage; staff members eventually took over most photography duties.

Each issue presented a cover feature about a large home, a food feature with recipes, seasonal fashion, a gardening feature, a trio of first-person artist profiles, a books column, a short travel article and a lengthy events calendar. When page count allowed, additional features focused on consumer technology and general home/décor topics. It pursued stories from across the state in addition to the Triangle, and was well-received from the start.

After two issues in 2006, the four planned for 2007 became six as the contribution that additional issues would make to all-important fourth-quarter revenues became apparent.

By 2008, the company had established the Niche Publications Division, with Living in Style on a bi-monthly schedule; a quarterly called About Downtown Raleigh published in cooperation with the Downtown Raleigh Association; skirt! Magazine, the local franchise of an established women’s monthly based in Charleston, South Carolina; and a local semi-annual edition of Carolina Bride, which had for years been published by The Charlotte Observer, a sister newspaper.

A talented young journalist was hired to write and edit skirt! and Carolina Bride, and the new division had three dedicated sales reps, a creative/design staff of three and an administrative aide, in addition to Living in Style’s writer/editor and the ad manager now dubbed the director of niche publications and new business development (with a mandate to develop a fifth publication by year’s end). Later in the year, a veteran newspaper editor was brought in under the director as publisher, bringing the staff to 11.

The parent McClatchy Company proclaimed that it was looking toward its newspapers’ niche publications as a reliable and growing revenue source, and N&O Publisher Orage Quarles III backed that sentiment at a company gathering and in a newspaper ad. But consensus among the advertising department was that department management didn’t support Living in Style, seeing it as simply one more product among nearly a dozen with sales goals to be met. Meanwhile, advertising department staff openly opined that Living in Style should be written by a woman instead of the 40-something man assigned to the job.

When the economy turned in late 2008, the fortunes of The N&O and its Niche Publications Division quickly followed. About Downtown Raleigh, which had never caught on, had become an insert in Living in Style and was discontinued at year’s end. Carolina Bride could not compete successfully with established local bridal magazines, and the Winter 2009 edition was its last. One of the division’s three sales reps and its administrative aide were reassigned. In April 2009, the skirt! editor and the creative manager were laid off (the latter after 18 years with the company), and the division’s publisher became the skirt! editor. The two sales reps were told that one had to take a buyout, and the second resigned rather than live with a pressure-packed situation, leaving all sales to the department at large. Living in Style’s distribution was cut to 57,000 as an additional cost-savings measure.

Some 90 days later, I was laid off, as was the skirt! editor/publisher and one of the two remaining designers. The division director, who over the course of the previous year was also assigned to direct Classified Advertising, was re-assigned as a territory ad manager, and the remaining publication designer was transferred to the artists’ pool for the newly merged (Display, Classified and Online) advertising department.

The layoff orders came from the vice president(s) in charge of the advertising department(s) with no consultation with those below them. The niche publications director said in April that “there is no plan” moving forward. She also said at the time that Living in Style was “making good money for this company.” In August, she said she didn’t know how they’d continue to publish nor for certain that she was still in charge of magazines.

It was understood that Living in Style wasn’t making revenue goals and, as the economy sank, advertising dwindled steadily. The 32-page June/July 2009 issue just managed to cover its costs when a full-page ad came through at the last minute. Managers quickly decided to cancel the August/September and October/November issues and pin hopes on a year-end issue bolstered by holiday advertising. It proved a futile expectation as the company moved forward with additional buyouts in November. This round fell most heavily on advertising staff, including the niche publications director, Living in Style’s last advocate.

Living is Style was a lightweight publication, by design providing “fluff,” as the division director put it. But it was written and designed well, and not entirely without useful information. Despite the “advertising supplement” tag that publications of the advertising department must carry, it was not advertorial, as many assumed. (The final issue, produced without a writing staff, carried advertorial for its back-page travel feature and in an article by the president of the Raleigh Regional Association of Realtors – who quotes himself in the story!) It also benefited from distribution inside home-delivered copies of The N&O, as opposed to other local magazines that sit in stores and may or may not go any farther. This was supposed to make the publication more attractive to advertisers.

The magazine was hurt by a poor online presence, in which images of pages were reproduced instead of a true Web site. The division director, in response to my suggestion that Living in Style needed a stronger online presence, replied that “by definition” Niche Publications were print. “We’re doomed,” I thought to myself. The head of the N&O’s online division, in response to the same suggestion, said it had “been decided” that the page-image setup was “good enough.” The good-enough setup went through at least three different vendors. The last was more user-friendly than the earlier ones, but only the first provided functioning links for URLs printed in the magazine. (I always enjoyed giving people the www.livinginstylenc.com address and telling them to be sure to remember the “nc,” because www.livinginstyle.com goes to a much different magazine.)

Skirt! magazine’s local edition (which has had a strong online presence through its parent firm and its editors’ efforts) lives on under the direction of The N&O’s head of community papers and features, at least in part because The N&O signed a 10-year contract to publish it.

Not dead … yet

Monday, November 16th, 2009

The Motley Fool says it hears the death rattle for McClatchy Company stock.

“Don’t assume that all such companies are goners. Some will barely cling to life, while others will make a full recovery. Sure it happens, but here we’re seeking companies that have all but given up the ghost.”

Most Americans see online news as free

Monday, November 16th, 2009

Forty-eight percent of regular Internet users in the United States say they would  pay for online news content, fewer than in other countries. The U.S. number tied with Britain for the lowest figure among nine countries where Boston Consulting commissioned surveys, says The New York Times.

In several Western European countries, more than 60 percent said they would pay.

Americans who would pay say on average they’d pony up $3 a month for online news, also the lowest figure in the study.

“The question is of crucial interest to the American newspaper industry, which is weighing whether and how to put toll gates on its Web sites, to make up for plummeting print advertising,” The Times says.

Newspapers still not ready for online world

Friday, November 13th, 2009

Poynter’s Bill Mitchell previews a new study that says printing and distribution account for “almost half of expenses” at many newspapers, but “few — if any — publishers have a game plan or timeline for transitioning a majority of their print readers to online delivery.” That’s so, they argue, “even though several recent surveys of media usage indicate that readers are re-organizing their lives around the new technology — and leaving print behind.”

The study is by “two leading analysts of media economics,” Penelope Muse Abernathy, who holds the Knight Chair in Digital Media Economics and Journalism at the School of Journalism and Mass Communication at the University of North Carolina, and Richard Foster, a former McKinsey & Company executive who is a now senior faculty fellow at the School of Management at Yale.

They urge traditional news organizations to pursue a three-pronged survival strategy over the next five years:

  • Shedding legacy costs as quickly as possible.
  • Re-creating community online — in an attempt to regain pricing leverage.
  • Building new online advertising revenue streams to replace the loss of traditional print categories.