Tag Archives: publishing

NY Times: a bridge to a digital future

By Christopher B. Daly 

Most people who care about journalism share a concern: can the New York Times survive the transition from a print past to a digital future? And can the newspaper carry forward its unparalleled standards, staffing level, and values into a future where the Times flourishes in the news business gets out of the paper business and emerges as a truly online news operation?

Increasingly, it appears the answer will be yes.

A big hint landed softly this week in a column by the Times‘ public editor, Margaret Sullivan. In her column, she indicated that the budget for the Times newsroom is “more than $240 million” a year. That’s how much it costs for the care and feeding of some 1,250 journalists in New York and around the world — salaries (which are at the top of our field), benefits, travel, rent on foreign and domestic bureaus, and on and on. It does not include other costs, such as printing and distribution.

That figure, which I had not seen broken out that way before now, is important.

It confirms, of course, that journalism is not cheap — especially journalism that is predicated on original reporting on a global scale. It represents the paper’s “journalistic nut” — the hard core of spending that must be met, just like your rent or mortgage and utility payments.

The challenge is: how to make the nut?

The good news is that it seems more and more do-able to make the nut into the indefinite future, despite the severe contraction in print advertising.

Here’s one scenario:

–Begin by reducing the nut. Let’s just assume that there is some inefficiency in there, some feather-bedding, some wasted effort (like the still extensive time and energy put into the laying out of each next day’s print “front page.”) For the hell of it, say you could cut that budget by 8% and still survive essentially intact. (That’s one-12th of the total, or $220 million instead of $240 million.)

–That means you need to come up with $55 million per quarter.

–Already, the Times is bringing in $38 million, from digital advertising only, according to the Public Editor.

–She did not say how much money is coming in every quarter from digital subscriptions, but she did note that “digital-only” subscriptions have risen (from zero) to about 800,000.

–It would not be unrealistic to think that if the Times went digital-only, it would pick up another 200,000 out of the base of subscribers who now get the print edition.

–So, there’s a hypothetical base of 1 million digital subscribers.

–If those 1 million people would pay $20 per quarter, you would have more than your $55 million nut.

Of course, there are problems. Maybe the Times can’t find 1 million customers. Maybe those readers won’t pony up enough in subscription. And these revenue figures are all net figures: someone still has to go to work at the Times every day to sell those ads and handle those digital subscriptions. Just because those operations are digital, they are not free.

My point is that the trend of rising revenues from digital ads and digital subscriptions is approaching the point at which they could carry the newsroom. They are not there yet, which may point to another partial, temporary answer: just print on Sundays. Print advertising brings in something like four times the amount of digital ads, but that print-based is declining and will not carry the paper into the future. So, during the transition, why not keep the big fat Sunday edition? It has the largest number of readers (1.2 million), pages, ads, and revenue. No need to say goodbye to all those full-page Style-section ads from Ralph Lauren and Chanel. At least not yet.

NYTCo homepage

NYTCo homepage

 

 

 

 

 

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Time Life magazines move downtown

By Christopher B. Daly

I guess the party’s really over. Time Inc., the once phenomenally profitable publishing empire founded by Henry Luce (and Briton Hadden) in 1923, is considering a move out of its landmark skyscraper in midtown Manhattan. According to today’s NYTimes, Time Inc., the company that publishes TIME, SI, People and many other magazines, is heading downtown — way downtown, to 225 Liberty St., a building just west of the site of the new Liberty Tower and the memorials to the fallen Twin Towers of the World Trade Center.

Screen Shot 2014-03-21 at 2.47.14 PM

In its heyday, of course, Time Inc. was a powerhouse of profit, prestige, and political heft, as I wrote about in my book Covering America. After outgrowing its space in the original Rockefeller Center, Time Inc. was offered its own building across 6th Avenue. In 1959, Rockefeller Center expanded to the west side of the avenue with a building erected just for Time Inc., known as the Time & Life Building, at 1271 6th Ave. Here’s a version by Dan Okrent, from his book Great Fortune: The Epic of Rockefeller Center. (Fun Fact: Dan was hired by Time Inc. in the 1990s to bring the company’s portfolio of magazines online, but that’s another story.)

What [architect Wallace Harrison] did deserve credit for was what Vincent Scully called the “incoherent splatter of skyscrapers” marching down the west side of Sixth Avenue. This western expansion of Rockefeller Center began with Harrison’s new Time & Life Building in 1959 and degenerated from there, a row of marble megaliths that seemed informed less by the doctrines of the International Style than by some for of totalitarian nightmare. . .(427)

One of Time Inc.’s neighbors in recent years has been News Corp, which occupies its own totalitarian megalith just south of the Time & Life Building. Other neighbors: NBC, CBS, CNN, and (until a few years ago) The AP.

I wonder who will be next to bail out from midtown?

Time & Life Building Photo by Richard Drew/AP

Time & Life Building
Photo by Richard Drew/AP

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Murdoch solves his housing crisis

So nice to see that Fox News founder Rupert Murdoch has found a place to rest his head.

Since Wendi got the triplex on Fifth Avenue as part of the divorce, Rupert has not exactly been facing homelessness, but still. . . He has landed a rather special spot: the top four floors (take that, Wendi!) at One Madison. (For those planning to drop by, the entrance will be on E 22nd, between Bway and Park.) That’s a lot of stairs for a guy his age, but apparently it’s worth it to be able to say you’ve got a quadriplex.

According to the Times, he paid more than $57 million for the new condo. Ah, to think of the money to be made in mass media!

The building under construction in September 2008; the Met Life Tower is in on the left

Wikipedia: The building under construction in September 2008; the Met Life Tower is in on the left

 

 

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The history of journalism lives on in Worcester, Mass.

By Christopher B. Daly

Here’s a recent article in Worcester magazine introducing readers to the incomparable American Antiquarian Society. It sounds like a museum of antiques, but it is actually the most extensive collection of American newspapers, pamphlets, lithographs, sheet music, and ephemera from the 17th century through the late 19th century.

From the article:

A few of the Society’s most valued materials include a first-edition copy of Lewis and Clark’s journals, printed in the early 1800s; the first printed Bible in British North America, released in 1663; the only known copy of the famous English book “Pamela,” which was the first book printed

COVER_philosophic-cockin the United States, published and sold by Benjamin Franklin; and the only known original copy of the political cartoon “The Philosophic Cock,” which was an early slam of Thomas Jefferson’s relationship with Sally Hemings, depicting Jefferson as a rooster and Hemings as one of his hens. At the end of last year, one of the few remaining copies of the first book ever written and printed in British North America, in 1640, the Bay Psalm Book, sold at auction for $14.2 million – the American Antiquarian Society just so happens to also have an original copy of the book.

 

 

The AAS attracts scholars from around the world, including Ken Burns and Jill Lepore, and it is  open to the public.

Here’s a note on the AAS’s history from Wikipedia.

AAS was founded by Isaiah Thomas on October 24, 1812 by an act of the Massachusetts General Court. It is the third oldest historical society and the first to be national in scope.[4]Isaiah Thomas started the collection with approximately 8,000 books from his personal library. The first library building was erected in 1820 in downtown Worcester, Massachusetts. This building was later abandoned and a new building was constructed. It was completed in 1910 and stands on the corner of Park Avenue and Salisbury Street. There have been several additions to this building to accommodate the growing collection, the most recent of which was completed in 2003.

There’s also a story as to why Isaiah Thomas was in Worcester. He was the editor of a Boston newspaper on the patriot side in the American Revolution called The Massachusetts Spy. On April 16, 1775, when the rebels were coming under increasing scrutiny by the British forces occupying Massachusetts, Thomas began to fear that

Isaiah Thomas, rebel printer, by Ethan Alan Greenwood.  Courtesy, AAS

Isaiah Thomas, rebel printer, by Ethan Alan Greenwood.
Courtesy, AAS

the redcoats would soon descend on his Boston print shop and put him out of business. So, under cover of darkness, he loaded his presses onto wagons and piled on as many back copies of his own paper as possible, along with any other newspapers or other printed material that would fit. He moved the whole operation to Worcester, safely remote from the coastal bases of the British forces, and prospered there. He later wrote the landmark book, History of Printing in America.

 

So, a hat-tip to Isaiah Thomas.

 

 

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A new New York Times online

By Christopher B. Daly

Today brings a long-awaited redesign of the New York Times online in all its various incarnations — desktop, laptop, tablet and mobile.

An overall first impression: it’s clean, smart, fast, and user-friendly. A clear winner. 

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To learn more, here’s an article by former Times media reporter Brian Stelter.

Some concerns:

–In the mobile version I am seeing on my iPhone, one screenful displays only 1.5 stories. It feels a bit like following a flashlight beam. I get no sense of the overall news picture.

–I am, of course, concerned about the simultaneous introduction of “native advertising” — which I consider an insidious erosion of the separation of  “church and state” within news organizations. I don’t care that everybody’s doing it. (On the other hand, I was just roaming around the site on my desktop computer, and I saw zero ads of any kind: is that courtesy of my ad-blocker?)

Your thoughts?

 

 

 

For comparison, here’s the way the Times looked when it made its debut in 1851 (price, 1 cent):

The_New-York_Daily_Times_first_issue

 

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Hyper-local news: a $300 million bust?

By Christopher B. Daly

Now comes word that AOL’s CEO, Tim Armstrong, is putting the finishing touches on the finale of Patch.com, the online local news sites. In his column today, NYTimes‘ David Carr reports that Armstrong is throwing in the towel on what used to be his baby. Too bad it didn’t work out.

There was a time when Patch looked like it might be an important part of the journalistic future. It was based on a key insight: more people were getting their news and information online, so why not local news? (Plus, there are a lot of local pizza parlors and nail salons that might advertise in such a site but would not be bothered advertising on a bigger site, because they would be paying to reach a lot of people who would never wander into their shops.)

While it lasted, Patch was a source of entry-level jobs for our journalism students, and I am worried about what will replace it.

Here’s Carr’s take:

 

The theory was that Patch would use a single news person and a single advertising person, at least initially, to create a digital maypole in hundreds of communities at a cost of about $100,000 annually per site. Patch sites popped up across the country, like Calabasas, Calif., and Nashua, N.H., covering high school sports, city elections and other local fare.

The execution risk was large — Patch was all moving parts, many undermanaged. At its peak, some 900 sites employed 1,400 people. Much of the journalism was pedestrian, while some of it, especially during Hurricane Sandy, was deeply important, but the decision to start at such a large scale was crippling. And all local efforts, digital or not, confront the tyranny of small numbers. Both the journalism and the ad sales were hand-to-hand, a retail effort that required spending a lot of money to go after pretty small revenue.

In August, it was clear that the math would not work. More than 350 people at Patch were laid off and hundreds of sites were shuttered.

What strikes me is the amount of money Armstrong was able to shovel into it — $300 million. Even for corporate moguls, that’s not nothing. Maybe that’s what was wrong all along: if you want to live online, keep your costs down.

I look forward to the experiment in this space that gets it right.

 

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Bezos to Post: “Don’t be boring!”

By Christopher B. Daly 

This seems like good news: Jeff Bezos, the new owner of The Washington Post, went into the lions’ den to greet the news staff and came out a hero. By the Post’s own account, Bezos made a hit during his day of meetings.

Among his thoughts:

–”Don’t be boring.” (Good advice for a newspaper, but too often honored in the breach.)

–“What has been happening over the last several years can’t continue to happen,” he said. “If every year we cut the newsroom a little more and a little more and a little more, we know where that ends.”

– “All businesses need to be forever young.. . “

The Bezos visit caused an explosion on Twitter, including many posts by Posties. See #bezospalooza

Is this man ready for the Style section?  Post photo

Is this man ready for the Style section?
Post photo

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