Postmedia cuts more newsroom jobs (from G&M)

[Don Denton]

Reeling from a drop in advertising revenue, Postmedia Network Inc. (PNC.B-T1.35----%) will axe dozens of newsroom jobs across the country and stop the publication of Sunday papers in several of its largest markets.

http://www.theglobeandmail.com/globe-investor/postmedia-chopping-newsroom-jobs/article2445587/

[Ken Gigliotti]

The newspaper business has always been prone to getting stuck . It happened thirty years or so , and thirty years later it is happening again . There is a lot of venom in the  “comments” , at some point you gotta look at content. Big changes bring opportunities , so bring it. The original pay wall of buying  a  subscription was only ever seen as a small  subsidy  to the price of paper , ink and actual delivery . I do not see why it is an issue with an online  product. I have said before why arent  , our core readers , the middle aged and older are not buying the paper product and they are not dead.  . Find the answer to that and you will find the answer . Circulation has been dropping since the mid 1980's . If only older people  buy newspapers , why isn't our circulation at  all time highs.

[Robin Rowland]

Almost exactly the same time as the Post Media cuts were announced, the Guardian ran this story

Paywalls? Journalism students say 'we won't pay'

http://www.guardian.co.uk/media/greenslade/2012/may/28/paywalls-facebook

Editor asks American journalism students if they would pay for Facebook
They said no

A student piped up with an explanation: 'Someone will invent something else to take its place that is free.'

Canadians on the other hand

 

I asked the class how much they were willing/able to spend for all media (of any kind) every month. For the majority, it was somewhere between $5 and zero."

Note that spending is on ALL media.

"college-educated, inquisitive, relatively well-to-do young people" should form a key part of a newspaper's audience. But paywalls put them off.

At least for now, Greenslade concludes

However, though I remain unconvinced by the paywall strategy, I readily concede that students may well change their minds in future (as they do about so many things).

There has to be a solution (I hope)  but paywalls probably aren't that solution.  Trouble is too many corporate executives stuck in the 1980s. It will probably be one of those students who come up with the right idea. Just hope its sooner rather than later.

[Moe Doiron]

Trouble is too many corporate executives stuck in the 1980s. It will probably be one of those students who come up with the right idea.

Bang on. 

[Ken Gigliotti]

There is a large group the paper product can still reach that has abandoned  the product . Subscriptions for most broadsheets are still significant . The idea is to try to stop the loss on that front . We have ceased Sunday delivery in Wpg  and moved to box and  store sales for the Sunday product . STOP LOSS  should be an immediate goal . Stopping delivery will save millions per day over a year , but not publishing  will be devastating and sends a desperate message to people already buying by subscriptions. This business  has always had a brain and a heart but never a soul . We are about to loss the brain in this process . We need to show some loyalty to the loyal , showing readers that this is serious  and our business is trying to serve them , and we appreciate their  loyalty . Content is an issue and we are trying everything , things  do stick  , some do not . Trying is the key word. The venom in comments show there is much to be done to attract new readers . The aspect about being a “stuck” business needs addressing . The relationships between the parts of our business that do not fit needs to be addressed , this is now an “all hands on deck “situation . As Harry Neil would say on Hockey Night in Canada , “panic productively” . Get it straight – with no online there is not future , the  hobby farm has to either be cut loose to rise to it's potential , or integrate it fully into a strong coordinated multi media/print / business .

[Moe Doiron]

The people who run the traditional media companies appear perplexed on how to reinvent themselves, partly because they know nothing else but traditional newspapering and are blocked by sheer arrogance. We know now how well that approach worked for the music business 15 years ago. Remember, music sales were dropping because people were no longer paying for music that they could get for free. Sound familiar?

Apple re-imagined a dying music business and turned it into a multi-billion dollar business, not by slashing the price of CD's, or selling less music by fewer artists, they did it by changing the business model.

Instead media companies react by continuing to lob off limbs, resulting in a weaker product with a shorter reach. Recent data proves, as Ken points out, readership is not the issue. The business model is.

[Ken Gigliotti]

What if the newspaper business developed a modern vending machine  during the 1950's , 70's , 80's 90's  and 2002's . the price of the paper would have risen  slowly and steadily along with the price of a Coke , a cup of coffee and a bus ticket . The paper price would  be about $2.50 to $3.00 today and no one would think anything of it. A modern vending machine could be used in a modern sales strategy  for a time like NOW .
  The business  got “stuck” after  radio , WW2  ,then TV in the 1950's was invented  , it was stuck in a 9col  format till the late -70's .( thirty years)  The business in Canada for most papers was run out of 80 years old buildings , a copyboy  system to develop reporters , and still used the  letter presses. It was forced out of “stuckness” into new formats copied from the Toronto Star till now 30 years later .Reporters would come from universities and colleges.  Each time the business was forced out of “stuckness” by the emergence of new media or a crisis of mediocrity noticed and investigated by government . Each time it  did change . This time the change could be profound .  For the first time the newspaper business can compete with other media in a timely manner . Yes really , this is something that is undervalued in current thinking . It is a chance for local papers to the the CNN of their area , 24-7  all local. It just takes the painful task of pulling ones head out of ones ass and looking around . TV food ads, Radio small business ads  as well national ads we already have can be captured  with an online , multi media continuous  mixed martial arts approach to news gathering. The print plus fliers plus  online can extend and evolve along a line that has a history ,and a a base , to something  that everyone can live with. Evolution does not seem to be an option under the current plan. Plan , Ha!
 P.S.  If you ever see this book -The book Canadian Newspapers the Inside Story (1980 Walter Stewart - hurtg) gives a pretty good insight into the state Canadian newspapers before 1980 . It begs the question , when were newspapers good , they are good today but ...

[Moe Doiron]

Well the entire business found itself in a pickle with its model of taking a loss on home-delivered circulation offset by ad revenue in order to guarantee the largest possible number of consumer eyes, thus charging more for those ads. Now that advertisers have options, many of which are cheaper and more effective, newspapers are seeing a huge drop in ad dollars coming in, most likely permanently. But they are still stuck with the money-losing home delivery model.

The recent merger of TorStar and Globe and Mail delivery services for instance is a step in the right direction to keep overall costs down but its nothing more than sticking a finger in a leaky barrel. Postmedia eliminating Sunday editions, and Mondays for NatPost for the summer does the same thing. But again there's no long-term strategy here, it's just buying time.

An overall correction is necessary that will involve a different system of circulation, perhaps eliminating home delivery altogether (remember the milkman? we all still drink milk). Single copy prices would be higher (like in Europe). Revenue would surely drop but the elimination of the circulation/delivery costs and further streamlining in staffing could offset most of this keeping a margin that shareholder's can live with.

Readership numbers, already very high, benefit greatly by multiple readers per single copy (ie- the papers at the coffee shop, offices, etc). These don't translate into circulation numbers but if the focus was on "readers" instead of "subscribers" there could be a successful new formula in there to attract ad revenue.

Then there's online ... another beast altogether.

[Ken Gigliotti]

The newspaper business has many stories about itself . There is the one that protects democratic freedom. There is the  story when freedom is threatened or a journalist is killed or injured , another steps up to take their place. This calling always attracts the young , idealistic , the practical the dreamers , the doers ,the creative , mystical and the pragmatist. The high church of journalism.
  The business end also has another  story , a very different and less known narrative. Parent like in the traditional sense , while the kids are running around having fun spending money on travel  and projects , going to school , finding themselves , the parent goes into work everyday. The kind of work that has it's good days and bad days. They feel  pressure because there are bills to pay , mortgages , food , hydro , water taxes, paper and ink . Checks need to be written  every month.
  There is that other story of ownership .Family ownership , to corporate ownership  changed the game .
  The newspaper business surprisingly is one that looks back more than it looks forward even though it reports on the present and future.
The lack of a forward looking point of view is catching up to it.
   This business has always been the owner of the platform and now it isn't . This is a big adjustment.The simple fact that the delivery of the product has not evolved speaks volumes .
  What if someone had developed a proper vending machine . The product price would have surly  rose. Our customers would know our business isn't exempt from cost of living increases that include fuel. The price of a Coke , a cup of coffee have been influenced by the vending machine , the bus ticket rose mainly to fuel costs .  The vending machine has caused  products to change . The soda product in its cheapest form is the can. A person would hard pressed to find a can of pop in any machine today. The upscale plastic larger volume bottle at a higher value was created to  increase revenue. A vending machine could sell many kinds of newspapers at the same time if the machine was taken over by contractors . No contractor wants the current model that gives away papers for free.
   Vending machines could be set up near postal super boxes in neighborhoods if a true vending machine existed . Canada Post and newspapers have similar problems regarding home delivery . Parnership for three days a week.? One made an adaption one did not. These two struggling companies should still have a common goal and a partnership  . At the turn of the century to just before WW2 newspapers had a special relationship with the post offices  around the world and papers could be sent , practically for free.
   Delivering milk is a good example of an adaption . Our business is delivering the same product in the same way since 1945. Old bombers and cargo planes from WW2 created technology for trans continental and trans Atlantic commercial air travel. Very costly , from the days of the C-47 to the  Boeing 747 , and flights into space .Talk about costs of delivery , really , going into space must be expensive.
  The easy way out has been the back story of newspapers , the simple transfer of copy in our old C-47 to the trojan horse  of the internet seemed to simple in 2000. It is about “value added” , and taking  our skills and idealism and combining it with NextGen ideas . There is a need to get ahead of technology and make the product , the  reliability , and  security of the information the  selling point .
  Will local readers in Edmonton , Calagary , Wpg or Vancouver have to choose between yellow journalism , blue or green journalism  or some form of Toronto based  national journalism  for  large single paper towns of the near future ?
  Will the newspaper of the future operate more like West Jet or Air Canada ?

[Warren Toda]

Trouble is too many corporate executives stuck in the 1980s.

The future of journalism is coming in a few days, courtesy of the National Post. The Post is launching a new site that's going to be all video games, all the time.

That's right, breaking news about video games, the latest gossip about video games and, of course, in-depth analysis of video games.

The new site will "peek behind the curtain to bring you the stories of the people and the studios working to develop video games across this great country." (No laughing please while our national anthem is playing).

According to the Entertainment Software Association (the same folks who supplied the PR numbers to the Post - and of course, PR numbers are never wrong), this "great country" is a world leader in video game piracy, (we're right up there with China, Malaysia and Russia, but Brazil is catching up). I'm sure the new Post web site will cover that.

The nice thing about covering video gaming is that there are tons of free handout pictures and press releases. (Not that I'm being cynical).


If the National Post was smart (ha!), they would've launched this site last week when its *exact* target audience was in Toronto for the Fan Expo. All Canadian gamer blogs would've picked it up. But who wants all that free publicity from its target audience?

The Post should've been at the Fan Expo, not only in terms of coverage and sponsorship but also a physical presence (i.e. real people). Oh well, maybe next year.

Nothing like good planning.

Maybe this will be a video gaming site for people over 45, (i.e. the folks who shop at Sears. I hear corduroy is making a comeback this season). In that case, carry on.



Someday, newspapers will understand the Web. Or maybe not.

Why do people line up for hours to get into one particular "cool" niteclub?

It's not about the club, it's about the people themselves.**  That particular club is cool (at least for now) and people want to be seen there.

On the Web, what's the magic word? It's that horrible cliché word: social.**

The Web gives us a sense of being part of something**, being connected**, just like when we're at the cool niteclub.

So, if a newspaper throws up a web site for, say, video gaming, who the heck cares when there are 6,157 other sites that already (over)cover that same subject? Over-saturated was a lovely Kodak term.

There's something called "journalism" and there's a famous saying: "Cover less, uncover more" (attributed to Bland Tomkinson).  What could happen if these two are combined?



** People need three things in life (other than the obvious food, water and a D800):
       • a sense of love.
       • a sense of belonging, being part of something bigger than themselves.
       • a sense of hope.

Note that all powerful photographs include some of these. The most popular songs always include one or two of these. The Web revolves around these. Twitter and Facebook depend on two of these. Apple's marketing is based on one of these.

So, if a paper launches yet another web site about the same old same old, one must ask, why? What's going to be uncovered that we don't already know or can't get from 6,157 other sites or direct from the source?

Or to put it simply: what's in it for me? How will it fulfill any of my three needs?

I've said it before, fire a few editors and hire a behavioral psychologist and learn how to incorporate some of those three things into a newspaper (print and web). It's not difficult.

[Robin Rowland]

There are even more problems

1. The site launches on Sept. 11.  Who chose that date? It will be lost in yet another round of anniversary pieces

2. It's clearly top management saying let's get the "younger demographic."  If the Post had done this a decade ago in the Black era when it has superb arts and culture coverage it might have worked.  Today as Warren says, it's a non-starter.

3. Wrong source, wrong audience.  While for some reason the National Post has a much better iPad app than the other PostMedia papers (which are hard to navigate and have lots of glitches) what audience does that Post iPad app aim for--right wing, bitter ageing boomers and younger wannabe neo-cons...the  app is  always emphasizing their most ideological columnists (not the Post's news coverage). While that ideological group has always been the paper Post's primary market, it's hardly designed to attract the gaming crowd and younger demographic to their iPad app. (I've heard many comments from 20-somethings  here in BC who don't really get "ideology" and believe that the Post "corporate media" columnists are actually being individually paid off by the energy industry. Not true, of course, the columnists are just "pro-business." But it certainly shows the Post hasn't done any  proper audience surveys for their video game plan).

[Warren Toda]

2. It's clearly top management saying let's get the "younger demographic."  If the Post had done this a decade ago in the Black era when it has superb arts and culture coverage it might have worked.

Conrad Black: What's with this video game site?

Publisher: You said you wanted to get hip, so we launched a video gaming site.

Black: I didn't say I wanted to get hip. I said I wanted to get a hip replacement. Get rid of that video game site and do more stories blaming other people for my mistakes. Half my problem is the middle class!

Publisher: Yes sir, Mr. Black, your lordship. We'll get your half-ass site up soon.

Post iPad app aims for--right wing, bitter ageing boomers and younger wannabe neo-cons...

But it certainly shows the Post hasn't done any  proper audience surveys for their video game plan

Wait until you see the Post's new section "Sk8R" with skateboard news, reviews and in-depth analysis. Target audience is bitter preteen neo-cons.   


For conspiracy theory folks: the National Post's new site will be called "Post Arcade". But there's already a "Post Arcade" run by the Denver Post. By coincidence, the Denver Post stopped using the name two weeks ago.

Now follow the bouncing ball:  The Denver Post is owned by MediaNews Group which is funded by Alden Global Capital which also funds the Journal Register Company and Postmedia. John Paton is the CEO of the Journal Register and also a director of Postmedia.

[Darren Calabrese]

Let's all take a step back. This video game site is not the future of journalism nor was its inception ever meant to be. It's a video game site - that's it!
Look, I don't play video games and I'm not personally interested in reading the Post Arcade, but why not try and cater to a large market of readers proven to be thirsty for content? What's so different about producing gaming content over writing specifically for politicos, sport nuts, or energy, environment, and science enthusiasts?
I believe in newspapers. And, simple ideas like this - big or small - are what I hope will lead to the resuscitation of the industry. Let's not be so quick to tear everything down.   

[Ken Gigliotti]

Can we look at the newspaper  as a manufactured product , something we produce everyday . The thing we do everyday is competing in a market place with many similar products  .The market is flooded with the “news” commodity available at no cost by us , and those like us.
     
  The product is expensive to produce and no one wants to pay of it. Fewer ,older core readers  are not taking the paper and young readers will never buy it. The past and present are evaporating.
   We have recently called ourselves an adverting based  business , but advertizing fallows circulation . We are really a circulation based information product .
  The  Newspaper conundrum , because of the expense  of the paper product there seems to be a reluctance to increase paid circulation and deliver papers to homes . Adding to the conundrum , readers don't like any  change within the paper product.
  General news , pro sports , politics and justice are not drawing the eyes that they used to  in the sense of a pay for view product.
  The product paper is given away for almost free and there are fewer takers because the same information is given away for free online . 
   If I were  looking down from above I would have to say the product needs and overhaul .
What is goal ? We have  many paper products in our system , we have to look at re-tasking  the entire group and begin a process of experimentation . Either we create a new product with different , marketable content  that stays on the paper pages or keep doing what we are doing .
  Monday and Tuesday  needs to have more bulk if they are to stay in the market place , these days could be   the test beds for  new products , the weeklies  and entrainment “give away” papers can be brought into the mix.
  Journalism and feature writing needs to be tuned to  a more decisive and more open concept ,seeing  360 degree view and  the Idea of Ideas needs to find its way into our pages . The news we cover is seen differently by different segments of our readership .
  Saving the paper product needs exclusive , non transferable commentary content that reflects the issues of that day.   Online is the place for , breaking and timely institutional stories .
  It means doing more , consolidating the all paper products , experimentation , prolonging what is left of a  strong subscription base  at the same time  .Let writers write and let photographers ,photograph . WE need be interesting , a novel a day , a soap , a documentary , a big show , different , turning , twisting  , suspenseful . The common thread is that we know people come to us to read what we write and see what we photograph . When they say there is nothing to read , what are they saying?There is one other major structural adustment .Putting a face on a story may not be the singular goal for the future . With rising ecomonies around the world , and the direct effect on local readers , close care needs to be taken in reporting our place in the world . Our worlds our market approach . The world of business has done more to reduce poverty in the world that politicians in the last 25 years . The political  frame work has become paralysed and confusing to readers . More attention needs to paid to business matters and how they relate as a nation , a province  and locally . Age old bias's that have become part of the structure of journalism has to recognized  and retooled .