Doom and gloom. Doom and gloom. You’ve heard it ad nauseam and yet so far college students are still undeterred.
The API (American Press Institute) summit this weekend concluded that the newspaper industry is in a “full-blow crisis,” as reported by Editor & Publisher.
Here’s a bit of what’s written by E&P:
The all-day session was described as part “group therapy” and “part business-school class” as participants took in three segments on financial forensics, management tactics for new strategies, and best practices swaps.
The summary of the summit also provided some views of participants keeping their comments anonymous.
One lone person thought the current crisis was due to cyclical force and that heavy cost cutting should do the trick until the economy recovers.
There were a few calls to “radically rethink newsrooms.” One person suggested the hiring of experts such as actual scientists or bank regulators to replace some reporters.
The API said that attendees agreed to reconvene in six months and concludes the report with this unnamed executive who said, “Why can’t we be the disruptors? We have nothing to lose.”
First order of business had been: establish that there is a crisis.
During the financial session, James Shein described as a turnaround specialist and professor at the Kellogg School of Management at Northwestern University, explained the various “phases of a crisis” — with a chart resembling an Alpine double black diamond slope. Starting at the top was the phase “blinded” eventually bottoming to “dissolution.” The stage before dissolution is “crisis” and newspapers are in this stage, according to Shein.
“The biggest hurdles to progress [is] the industry’s senior leadership, including some people in this room,” Shein told the group. “I am not sure you can take a look at your industry with fresh eyes.”
It’s all really quite humorous, in general. But job loss is not funny at all. Lives are being ruined monthly with the announcements of cuts and buyouts and all people (in the journalism industry) are looking for leadership in tough times. And it appears that more cuts are on the way.
This is about the time where we start searching for blame and trying to figure out how to make money off the internet again. I think the latter is the most useful.
In one of my favorite periodicals, American Journalism Review, Paul Farhi laments why you shouldn’t “blame the journalism.”
Here’s a sample of what he had to say:
Fact No. 1: Despite everything you’ve heard, newspapers, even these days, remain remarkably popular. Some readers have left us (and many, it should be said, were dropped by cost-conscious publishers who no longer wanted to deliver papers to far-flung subscribers). But what’s largely overlooked in the gloom is how many people newspapers reach each day. Almost 50 million buy one daily, and nearly 117 million read one, according to the Newspaper Association of America’s research. Throw in 66 million unique visitors to newspaper Web sites each month, and the conclusion is inescapable: Lots of people want what newspaper journalists produce.
Fact No. 2: Newspaper readers – so often derided as old and unattractive to advertisers – are actually better educated and more affluent than TV news viewers. The average newspaper, for example, reaches about seven in 10 households with incomes of more than $60,000 annually, compared with about four in 10 for CNN and Fox News, according to Mediamark Research.
Fact No. 3: Every traditional news medium has lost market share, and some have lost more than newspapers. According to the Project for Excellence in Journalism, ratings for late local newscasts on network-affiliated stations across the country were 6.7 percent lower during the November 2007 sweeps than the previous year – a faster decline than newspaper circulation (down 2.6 percent daily, 3.5 percent on Sunday) during roughly the same period. This isn’t a one-time aberration, either. Local TV stations in Washington, D.C., for example, have seen the ratings for their 6 p.m. newscasts plunge 37 percent from 1997 to 2007. Over the same period, the Washington Post’s Sunday circulation has dropped 16 percent. Yet the local TV news business remains relatively strong, with far fewer layoffs and cutbacks and less end-of-an-era weariness than in most print newsrooms.
So if the problem with newspapers really isn’t too few customers, or too many undesirable ones, why are they so threatened these days?
The problem has little to do with the reporting, packaging and selling of information. It’s much bigger than that. The gravest threats include the flight of classified advertisers, the deterioration of retail advertising and the indebtedness of newspaper owners. Wrap all these factors together and you’ve set in motion the kind of slash-and-burn tactics that will hasten, not forestall, the end.
If only those API publishers understood that, maybe they wouldn’t parse the information on what’s working and what’s not. And maybe, just maybe, they’d stop buying properties they can’t afford. It’s killing their business.
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