Showing posts with label Dismantling. Show all posts
Showing posts with label Dismantling. Show all posts

Wednesday, 5 November 2008

The Black Week for Print - October 27th to November 2nd, 2008




Many people are writing that last week was the worst week for Print Media since the Great Depression, as judged by layoffs, results and sea change shifts in reading habits. In many respects they're not wrong.


The front page of the IHT was dominated today by an article speaking about a similar paradigm shift in U.S elections, one that was turned upside down and 'truly became bottom up instead of top down'.

Speaking of the election, and the same can be said of media in the 21st century, the 2000 and 2004 presidential elections 'leveraged the Internet in ways never imagined. This year we went to warp speed.'

Exactly.


I've spoken of tipping points for the NYT Company and it is at one right now, because of this warp speed year.


A part of the Black Week for Print narrative was Gawker announcing rumoured sales of About.com (on Sunday 2nd November) by the NYT Company to reduce its debt and help it go private.
(BTW, all those people who took exception to my recent analysis of About.com really ought to go and read the derogatory comments about About.com posted on Gawker and elsewhere.)

I finally realised what the difference is between a blog and a non MSM news site like Gawker.

A good blog - hopefully this one - speculates on the future, using a platform of what I call 'conditional information' - things that might be true, things that might happen. Sites like HuffPo, Gawker etc rely often on reporting rumours without sources or verifiable fact checking. Nothing wrong with that, provided the reader knows what he or she is getting.

What you're getting at this blog is nothing more than informed speculation. It's what MSM calls opinion, and that the NYT hasn't an official editorial definition of what a blog is or should do tells you all you need to know about just what trouble they are in.

I had blogged several times on the dismantling of the NYT Company and the possibility of it being taken private well before actual rumours hit sites like Gawker.

I'll come back to this so-called Black Week to see if it's as black as everyone says it is.

For now, my personal point of view is that print has DEMAND side problems, not from READERS, but from ADVERTISERS who are losing faith in print as a viable option. I remain convinced that there is a demand for print from the reader, but what papers like the NYT and the IHT are SUPPLYING is not what (enough valueable) readers want.

The NYT Company Annual report of 2007 complained of audience fragementation.

OK. So what's the big effing problem?

Of course there is audience fragmentation, so having a single monolithic entity, be it on print, or online, as the NYT has, is clearly not a very smart idea as the middle ground CONSENSUS about what the intelligent mass market reader WANTS is over. Get it?

When I speak of dismantling the NYT Company, yes, I am talking about selling some assets to reduce debt, and going private wouldn't be a bad idea either.

However, what really needs to be dismantled and built from the ground up is the NYT newspaper and brands within the NYTMG stable, including the IHT.

Now naturally, with a million circulation and over two thirds of the company's revenues coming from the NYTMG, I wouldn't be doing that in a hasty or ill-considered manner.

However, I would be thinking about how the NTY Company can sit atop a framgmented audience and stop pursuing a strategy that seems to think that the NYT newspaper can somehow hold together that fragmentation.

It can't, for reasons of the audience's various, framgmented, age, income, interests, political affiliations and other things too many to get into right now.

The NYT Company needs to strip out its core brand values and apply them to other brands, new ones or existing ones, that cater to various audience splinters, some of which will be highly profitable in print as well as online.

It conspicuously failed to do this with About.com which serious Net Heads haven't looked at since they closed their AOL account about 9 years ago.

On this historic day, I'll leave you with this article from The Economist to think about.



A BIASED MARKET
Oct 30th 2008
Skewed news reporting is taken as a sign of a dysfunctional media. In fact, it may be a sign of healthy competition

BARACK OBAMA recently told a writer for the NEW YORK TIMES MAGAZINE that he was convinced he might be two or three percentage points better off in the polls for the American presidential election if Fox News, aright-leaning television station, did not exist. Sarah Palin, the Republican nominee for vice-president, has made hay railing against the bias of the "liberal media". Allegations of partial news reporting are common in American politics. But few stop to ask what leads to differences in the way the news is reported. Bias can be thought of as a supply-side phenomenon that arises from ideology. Owners' or employees' political views will determine how a newspaper or channel slants its coverage of a piece of news. But this does not square with the assumption that readers and viewers value accuracy. If so, then competition should hurt media outlets that systematically distort the news (in any direction). The brouhaha about bias in America, as free a media market as any, suggests something else is going on. The key to understanding why bias flourishes in a competitive market may lie in thinking more clearly about what readers actually want.

Sendhil Mullainathan and Andrei Shleifer, two Harvard economists,argued in an influential paper*[1] that it may be naive to think that people care about accuracy alone. Instead, they modelled the consequences of assuming that newspaper readers also like to have their beliefs confirmed by what they read. As long as readers have different beliefs, the Mullainathan-Shleifer model suggests that competition, far from driving biased reporting out of the market, would encourage newspapers to cater to the biases of different segments of the reading public.

A more recent paper**[2] by Matthew Gentzkow and Jesse Shapiro,two economists at the University of Chicago's business school, set out to test this proposition. To do so, they first needed a way to measure the political slant of American news coverage. Their solution was rather imaginative. The researchers ran computer programs that analysed debates in Congress and identified phrases that were disproportionately used by Republicans or Democrats. The list of frequent Democratic phrases, for example,included "estate tax". While talking about the same issue, Republicans tended to use the phrase "death tax". (This is not just coincidence. MrGentzkow and Mr Shapiro quote an anonymous Republican staffer as saying that the party machine trained members to say "death tax", because"'estate tax' sounds like it hits only the wealthy but 'death tax' sounds like it hits everyone".) Having identified partisan phrases, the academics then analysed the news coverage of more than 400 American newspapers to see how often they cropped up in reporting. This gave them a precise measure of "slant", showing the extent to which the news coverage in these papers tended to use politically charged phrases.
Mr Gentzkow and Mr Shapiro then needed to assess the political beliefs of different newspapers' readerships, which they did using data on the share of votes in each newspaper's market that went to President Bush in the 2004 presidential elections, and information on how likely people in different parts of that market were to contribute to entities allied to either Democrats or Republicans. The researchers were now able to look at the relationships between circulation, slant, and people's political views.First, they measured whether a newspaper's circulation responded to the match between its slant and its readers' views. Not surprisingly, they found that more "Republican" newspapers had relatively higher circulations in more "Republican" zip codes. But their calculations of the degree to which circulation responded to political beliefs also allowed them to do something more interesting: to calculate what degree of slant would be most profitable for each newspaper in their sample to adopt, given the political make-up of the market it covered. They compared this profit-maximising slant to their measure of the actual slant of each newspaper's coverage. They found a striking congruence between the two. Newspapers tended,on average, to locate themselves neither to the right nor to the left of the level of slant that Mr Gentzkow and Mr Shapiro reckon would maximise their profits. And for good commercial reasons: their model showed that even a minor deviation from this "ideal" level of slant would hurt profits through a sizeable loss of circulation.

HAVE I GOT SKEWS FOR YOU
Showing that newspapers have a political slant that is economically rational does not necessarily answer the question of whether ownership or demand determines bias. Here, the academics are helped by the fact that large media companies may own several newspapers, often in markets that are politically very different. This allowed them to test whether the slants of newspapers with the same owner were more strongly correlated than those of two newspapers picked at random. They found that this was not so: owners exerted a negligible influence on slant.

Readers' political views explained about a fifth of measured slant,while ownership explained virtually none.None of this is particularly helpful to seekers of the unvarnished truth. These conscientious sorts still have to find the time to readlots of newspapers to get an unbiased picture of the world. But by serving demand from a variety of political niches, competition does allow for different points of view to be represented. After all, just as Mrs Palin does not spend her time condemning Fox News, Mr Obama is unlikely to have too many complaints about the NEW YORK TIMES.
* "The Market for News", American Economic Review (September 2005).
**"What Drives Media Slant? Evidence from U.S. Daily Newspapers" (May2007)http://faculty.chicagogsb.edu/matthew.gentzkow/biasmeas081507.pdf[3]-----[1] http://www.economist.com/#footnote1
[2] http://www.economist.com/#footnote1

See this article with graphics and related items at http://www.economist.com/finance/displaystory.cfm?story_id=12510893&fsrc=rss





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Thursday, 30 October 2008

Throw some investment fund cash at Bill Keller and tell him to give it to promising editorial franchises.


Now this is interesting: the NYT has a 'special investment fund'.
Who holds the purse strings to the special investment fund and how can strategic planning and/or the IHT get hold of some of it?
And is specific investment in some promising verticals the same, in affect, as a sort of dismantling of The Grey Lady, especially when you throw in the word 'franchises'?

Special 'Investment Fund' to Increase Business Coverage at The Times?
by John Koblin October 28, 2008

At first, there was good news at New York Times executive editor Bill Keller’s semi-annual State of the Newsroom town hall meeting, the supposed informal name of which has now become official: “Throw Stuff at Bill.”

There would be no job cuts.
But of course, there’s a plenty big trade-off for protecting a staff.
For one, you’ve got to lose your stand-alone Metro and sports sections. It means new projects and some investigative projects are suspended. It also means that you might get “more exotic and garish species of advertisements,” said Mr. Keller.
And: “It will mean, I’m sure, that our hiring is even more selective than before.”
Hiring is already selective to begin with. Yes, The Times has been able to pluck away the likes of Peter Baker from The Washington Post and Jackie Calmes from The Wall Street Journal this year, but even Mr. Keller conceded, “There have been very few of those.”
And they were brought in to cover the election, for which the newspaper anyway gets a quadrennial shot of a special budget-plumping complex.
But cuts aren’t everything, and, as Bill Keller well knows, the remaining question is, what are you doing with what you’ve got? And the answer, it seems: taking care of Business Day.
Why, one questioner asked, was BizDay suddenly increasing in size while everyone else was being told they couldn’t hire?
“The new hiring we’ve done over the past six months to a year, I would say, certainly since the time of the buyouts and the layoffs, has been overwhelmingly for digital,” he said.
He continued: “It’s been money that comes from an investment fund, if you will, that was set up to try and expand some of the business verticals that the company hopes have the potential to make good money down the road.”
Last month, The Times did expand BizDay, at a moment that was timed eerily well (traffic in September, thanks to the financial world going nuts, was up 66 percent versus September 2007). The page added Personal Technology, Small Business, Your Money and Economy sections—the sort of stuff that generates lots and lots of traffic.
And traffic is everything in the executive suites of the Eighth Avenue Times Tower these days.
When those “channels” launched on the business page last month, a press release went out to investors and reporters. The release declared: “First of Many Steps to Enhance Online Business and Technology Coverage.”
In a conference call with investors, a call generally reserved to talk of dividends, debts and risk, CEO Janet Robinson trumpeted the section even more and said more reporters and editors will be hired!
“In the coming months, nytimes.com will expand its Small Business, Personal Technology and Your Money sections, introduce more journalists, deepen coverage in its DealBook franchise and continue to add more tools and multimedia features,” she said in the call.
And indeed the hiring has already begun.
Over the past six months, the paper has hired more than a dozen journalists to work for it, most recently plucking the New York Post’s mergers and acquisitions reporter, Zachery Kouwe, to come work under Andrew Ross Sorkin at DealBook. Other hires have included Ben White from the Financial Times, Vindu Goel, Sam Grobart, Claire Cain Miller and Ashlee Vance.
So—what’s this magical “investment fund,” and where can we get one?
“We’ve gotten money budgeted to invest in business verticals on the Web site this year—economics, green business, small business, expanded technology,” wrote Mr. Keller in an e-mail to Off the Record. “The money has gone to hire a small number of editors, reporters and producers. Most of the vertical expansions are already launched, and some of their work has appeared in the printed page as well.”
As far as where it comes from, he said: “The money is in the digital budget, which (as part of the integration of the newsroom) is merging with the newsroom budget.”
So … that’s the investment fund! So does this mean that digital products that produce traffic results are immune from the budgetary constraints of the rest of the paper? (And are we really asking a different question than Mr. Keller’s questioner asked?)
Not that it doesn’t make sense: In September—no doubt because of the credit crisis—the newly launched Economy section had four million page views in its debut month. But it does seem to indicate that the horse and the cart of print and Web have reached a new kind of accommodation.
“Nothing better validates the priority we have given to our journalists than our coverage of the financial crisis,” he said to staffers. “Because Larry Ingrassia has been building a stronger BizDay staff over the past few years when other newsrooms have been brutally downsizing, we have dominated this story with the best reporting team in journalism. That is not just sloganeering or paternal pride.”
He added: “Day after day, week after week, we have been quicker to the news, smarter and more lucid in explaining it, and better at conveying what it means to ordinary Americans than our competition—and, yes, that includes publications that live primarily to report on business.”



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Wednesday, 29 October 2008

Should you the NYT Company be dismantled?



"At some point, you start to dismantle the companies"


Media (Forbes)
Selling Papers
James Erik Abels, 10.27.08, 6:00 AM ET
There's nothing like bad news to sell newspapers. Unless there are no newspapers left to sell.
Many people are wondering if this may soon be a reality. Revenues were in free-fall last week at many of the country's largest newspaper companies. "The only hope is that as we get through the spring, the rate of [the advertising] decline starts to ease up," says newspaper analyst Edward Atorino of The Benchmark Co.
On Friday, Gannett Co. reported that third-quarter revenue fell 9% from the same quarter last year to $1.64 billion. Other companies fared no better: The New York Times Company said total revenues fell 8.9% in the third quarter year over year to $687 million. And McClatchy posted third-quarter revenues of $451.6 million, down 16.4% over the same quarter last year.
Last week, the question on everyone's mind was whether the newspaper industry has hit bottom. Now they're wondering if these businesses can possibly rebound.
"[Newspapers] draw most of their advertising from the local economy," says John Puchella, a newspaper analyst with Moody's. As recession sinks in across the country, many of the local businesses that constitute newspapers' biggest ad buyers could disappear, he says--and an industry can't rebound if its market ceases to exist.
Where does that leave the papers? "At some point, you start to dismantle the companies," says Atorino. The newspaper industry's cost structure, staffing and share price are based on an outdated business model that continues to define financial expectations. So the goal would be to slough off enough costs to let younger, more nimble newspaper businesses live without the artificial market pressure of year-over-year comparisons.
Essentially, modern newspaper companies are the final legacies of an industry given life as a rich man's toy. The model was built in an era when high distribution and production costs kept new types of competitors at bay, anointing the dynastic fortunes of families like the Hearsts, Sulzbergers and Bancrofts.
Certainly, newspapers are being battered by massive declines in advertising due to a bad economy. Yet that decline is merely accelerating an ongoing and devastating trend of the newspaper business being destroyed by the Internet. The financial expectations on a younger company--and the staffing and business costs it agrees to build into its organization--may be more manageable than they are for today's behemoths.
Some industry observers have suggested that industry giants should go private. Take The New York Times Co.: With a market cap of $1.3 billion and roughly $1.1 billion of debt, buying the company out of the public market might be a steal--if someone could find the credit to consider a bid.
Sure, the Sulzbergers are often said to be uninterested in selling, and supposedly have an iron-clad stock-ownership plan that virtually ensures their grip on the Grey Lady. But the Bancrofts were said to have similar dreams last year, before they sold the Wall Street Journal to Rupert Murdoch and News Corp., a move that, in retrospect, may have saved the paper.
There may also be plenty of buyers for local newspapers. "In small markets, newspapers continue to be the dominant ad platform," says Philip Murray. His firm, Dirks, Van Essen & Murray, is currently involved in several deals with private equity firms and individuals looking to buy newspapers. Prospective buyers are betting that better days lie ahead for a business that sells information, a valuable commodity in any market. In fact, Murray says that while many local papers are experiencing single-digit year-over-year advertising declines, some of those serving farming communities or energy boomtowns are actually growing.
Uh oh, an argument in favor of the newspaper industry? Not likely. The big papers, at least, will be making headlines with lay-offs and dwindling revenues for some time to come.
Gotta sell those papers, after all.



READ AN ALTERNATIVE IHT DAILY NARRATIVE AT
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LOOKING FOR A CHRISTMAS BOOK GIFT TO BUY?
"Books about cosmopolitan urbanites discovering the joys of country life are two a penny, but this one is worth a second glance. Walthew's vivid description of the moral stress induced by his job as a high-flying executive with the International Herald Tribune newspaper is worth the cover price alone…. Highly recommended."
The Oxford Times

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For more reviews visit www.ianwalthew.com