Tag: newbiznews

  • Google’s first step as a paper platform

    (this is a restored post; comments lost)

    The other day (and again in my upcoming Guardian column) I quoted Telegraph digital head Edward Roussel speculating about shifting his paper’s platforms — business, sales, distribution — to Google.

    Now here’s Paul Cheesbrough, the CIO of the Telegraph Media Group, making a first step in that direction. He tells CIO that he’s not updating Microsoft Office licenses and has opened up Google Apps for the entire newsroom.

    “[As a pilot] we put 10 per cent of our 1400 user seat estate and allowed them to use Google Apps alongside their Office and Exchange infrastructure. Overwhelmingly, the feedback was positive and there would have been uproar if we had said we were turning it off. We were faced with the decision of whether we pursued the same [Microsoft] path and paid the price for that or put more and more internal solutions in the cloud.

    “We made a conscious decision not to refresh any of [the Microsoft infrastructure]. We’re not going to remove it but we won’t upgrade it. . . . Google Apps is good enough and rich enough for us to do what we need to do. Collaboration has been very powerful [in Google Apps] and as people use Google Mail and Calendar they’ll naturally stray to use Google Docs. . . .

    I think it might be time to sell my Microsoft stock.

  • What do you buy when you buy a newspaper?

    (this is a restored post; comments lost)

    Alan Mutter runs the numbers to see which newspaper companies could be taken private and Mark Potts fears they could be taken private by private-equity blood/cash-suckers. A few examples: Mutter says the Times Company would need to borrow $2 billion to go private, Gannett $4.5 billion, and McClatchy a K-Mart flashing blue-light special of only $467 million.

    But what are you buying when you buy a newspaper? And in a buy-or-build debate, which is the better bet? And if you just wait, will some of the giants just topple, leaving holes in the ground that’d be easier to fill from scratch?

    Well, to start with, you’re buying cash flow, but that is only going to diminish and as too many private buyers of newspapers are finding, it’s getting tougher and tougher to cover debt expenses. You’re buying physical plants but — unlike, say, retail or fast food — they tend not to be in desirable areas. You’re buying union agreements; whoopie. You’re buying huge physical costs: presses, trucks, and other fast-depreciating assets. You’re buying shut-down costs galore.

    Oh, but why be so gloomy? You’re also buying advertiser relationships, but those tend to be with the diminishing arenas of retail, jobs, auto, and homes — while Google is grabbing the growth by finally serving the mass of underserved small advertisers… and you’re not buying any expertise in how to compete. You’re buying reader relationships, but that, too, is shrinking and after witnessing the shrug that has met the killing of newspaper sections, one wonders how firm that relationship is. You’re buying a newsroom and though it has expertise in the locale, it is generally not prepared for the future and getting it retrained is a cost and a risk (lots of buyout expense there). And you’re buying a brand, but I fear that most of the equity there is in familiarity over affection (or, in some markets, trust). (I’d say the Times brand is worth proportionately more than a local brand.)

    So I wonder whether even at bargain prices it’s any bargain to buy a newspaper.

    Or would it be better to build? We’d need to look at a business plan to see what it would take to create a meaningful local news-and-advertising network (note that I said network, not product).

    Or would it be better to find a perch and wait for the roadkill? I think that’s what HuffingtonPost is doing by installing an editor in Chicago. As we said the other day, one can also use Google and other technical, sales, and distribution platforms to build with little cost or risk.

    I’d take those bets in reverse order. Knowing that carnage is inevitable, I’d figure out how to position myself to swoop into these markets. Then I’d start at least one strong local network so I had a proven template to take to other markets. And I wouldn’t invest a dime in an old newspaper company, no matter how cheap. That, of course, is why they’re getting cheaper and cheaper.

  • Blinders? Check.

    The always witless World Association of Newspapers really does it this time. In their desire to defend print — over updating and preserving journalism — they came out with a new ad campaign that says:

    Picture 22

    Which says: We will continue to give you a one-way product that doesn’t listen to you and lets you do just one thing: turn the damned page.

    Another ad makes fun of dumb things people say and adds this quote from the Economist: “Newspapers are an endangered species.” Ha ha ha ha ha ha ha. Yes, that’s a good one. Newspaper companies? Health as can be.

    Twits.

  • National Public What?

    I’ll be speaking to the Public Radio News Directors this Saturday in Washington and I’ll want to bang all the heads together and make them repeat after me: “We are not radio. We are not radio. We are not radio.” Just as newspapers are not paper, or must figure out what they are after, so NPR must decide what it is after broadcast. I said this to them a few years ago when I spoke to the group in St. Louis and then again when I joined others to talk about new media at NPR’s headquarters. My prescription then:

    NPR is not radio. If I tell newspapers they have to stop thinking on paper, so I’ll argue that NPR must throw off the limits of its medium. And I don’t just mean that the can go multimedia, adding photos or videos to their sound. I mean changing the culture, not thinking like a radio network anymore so thewy can see the options the internet opens up to work in every appropriate medium with entirely new kinds of content, from TV to data bases.

    I’m seeing the notion of thinking past radio discussed now thanks to the death of one of public radio’s attempts to modernize, Bryant Park Project. It was, as far as I’m concerned, the better of the attempts; the other, The Takeaway, is floundering, earnestly but uncomfortably. NPR apparently doesn’t know what it means to modernize. They seem to think it means losing their legendary polish and releasing their inner “uh’s” and “y’know’s.”

    The problem, I think, is that they didn’t understand what the essence of NPR is. They thought it was radio, so they tried to come up with new formats and formulae for radio. But that’s not what NPR is.

    Rob Paterson, the very smart consultant who advises NPR, says of the BPP folding:

    I think a couple of things are becoming more clear to me. The show was seen as a Radio show with a strong social web element. This is I think the key error that drove the costs and the expectations. If you want to do the new today – you have to break away from the costs of the machine – if a paper, no press and no paper!

    I would have launched BPP as a web show with a bit of radio. No small distinction.

    He talked about the cost of it, as did John Proffitt. Radio’s also not cheap. And then Rob comes to the bottom line for National Public (Radio):

    Just as the presses and the paper is a cost that is killing the Newspapers, so the transmitters are killing TV and Radio. All that can remain for a while are the established shows such as ME and ATC. But if you want some thing new that will scale and make you money – it’s the web all the way.

    But again, what is it that moves to the web? And how? What’s that essence of NPR? That’s what I asked the Guardian. It’s what every media organization trying to reinvent itself must ask. What are you saving? What is your appeal? What is your value? What are you?

    This afternoon, I happened to be talking with Adam Davidson, part of the team that created that incredible This American Life/NPR News show explaining the credit crunch. On Twitter, Jay Rosen said this was the best explanatory journalism he’d heard. I responded that it was the best I’d heard or read. If The Times had explained the story this well, it would have made it as radio so in their voices we could hear — as someone said in another tweet — their incredulity. So it was great radio but that was merely a choice of media. It wasn’t the essence of it.

    So I asked Davidson how he defined that essence. He thought about it and answered that it’s about shows that, at the end of the week, make you say, “Oh, that’s what it’s all about. Now I get it.”

    I like that and that essence can be communicated in audio, video, text, graphics, apps, discussion. The intelligence of NPR can now be freed from mere radio to use any and all appropriate media. That’s what we try to teach our students at CUNY: making media choices with every story. So should NPR.

    What do you think the essence of NPR is?

  • Whistling Taps in the newsroom

    Alan Mutter compiles the bad news for news and media stocks. What’s worse than bad news? Really bad news?

    The shares of five newspaper publishers plunged to new lows in early trading today, including the shares of GateHouse Media, which fell to $1 per share, threatening its ability to remain listed on the New York Stock Exchange.

    Tumbling to new lows alongside GHS were Gannett (GCI at $16.43 per share), McClatchy (MNI, $4.58), News Corp. (NWS, $13.96) and New York Times Co. (NYT, $12.61). The companies sank to new historic lows on Friday, as reported here.

    Media General (MEG) hit a new all-time low of $10.23 per share on Monday.

    The only one of those I’d consider buying is NWS. But then again, buying any media stock today is surely foolishness.

    Mutter also reported the bad news that online ad rates slid 14 percent in January. So much for that great hope.

    No, it’s time for drastic and fast action. The clock is ticking. Or is that the sword above I hear?

    : LATER (THAN YOU THINK): Mutter updates after the market close with the even-more depressing stats on the loss of market cap in the newspaper business. They’ve lost $4 billion in value since June 30. “At today’s close, the total decline in value of the dozen newspaper shares trading since the first of the year was nearly $27.7 billion, a plunge of 35.7% in 6½ months.”