An anguished Steven Newhouse says his company must adapt to the times:
We are in the midst of a digital revolution and instead of constantly being disrupted by our numerous online competitors, we decided to re-invent ourselves. It is useless to bemoan the digital revolution and the unintended consequences that have come along with it; the trick is to turn that trend to the advantage of our papers, our readers, and our communities. This is a difficult task, and it is the one we are deeply engaged in.
In Michigan, this led to what amounts to a scorched-earth policy for Advance’s news gathering assets: Last November, it confirmed it laid off nearly half (550) of its 1,200 employees. About half those layoffs were later offset with the new hires. But the cuts, nonetheless, are real and substantial.
In New Orleans and across its Alabama properties, the cuts were similarly dramatic.
Now, the way Advance went about this was ham-fisted and needlessly obfuscated with digital hoo-hah slathered with a layer of sentimentalist goo about Hurricane Katrina and the good old days in Biloxi.
But these, one assumes, are staffing levels appropriate for this particular model. Advance has done the math, and this is what the free online model pays for.
The financial prospects of Advance’s model are uncertain. But what it not uncertain is that it requires cuts now.
Advance officials describe its moves as inevitable, but Advance itself has chosen this particular path, and done so voluntarily. If this free model were the only one available, that would be one thing. But since it isn’t, and since it, as Advance tell us, requires dramatic cuts, and requires them immediately, AND since the model is based on click and post volume, the free model should be opposed.
This is not a cost-free experiment. Once the newsrooms are degraded, there is no clear path to redeeming them.
And if you think, this brave new click world is theoretical, you should at least pay some attention to Times-Picayune staffers and former staffers who have worked under the changing regime.
Here’s former reporter Sheila Grissett, for instance:
“I’m old-school, and when you tell me that I must post a partially reported piece of news - even if it’s wrong and can later be corrected - because some people somewhere want to see something new, anything new, each and every time they click, that was my line in the sand .”
Oh, and did I mention that Paton publicly endorsed Advance’s moves?
All of this puts JRC’s second bankruptcy into sobering perspective.
The analyses we’ve seen of the filing and its meaning are all quite astute financially. If you can read only one, Chittum has the numbers nobody else has been able to get.
But the real problem with JRC’s model, as with Advance’s, isn’t merely that it has failed to prove it can support quality journalism. The problem is, it is designed for the opposite.
Digital first? Absolutely. But this version? No, thanks. The costs are too high, and it’s not even working financially. And what if we learn, in the end, that it wasn’t even necessary?

Paywalls may be a good move for large newspapers, but what about small- to medium-sized papers? As long suspected, and now outlined in this Chicago study, it appears smaller news sites may depend more on social media linking/referrals than larger sites: http://www.poynter.org/latest-news/top-stories/188217/smaller-news-websites-depend-more-on-social-media-for-traffic-than-larger-sites/. Since people either won't or can't afford to pay for multiple digital news subscriptions, wouldn't paywalls hurt smaller communities and their papers by lessening the value and impact of SM linking?
I also wonder about the demographics of who's more likely to pay for news content. It's tough to get young people just to read news these days, and what they do read, they've been getting for free online -- a lot of it via SM linking. Do you really think we can put the genie back in the bottle now and have them be willing to pay for quality content? Or will it just drive them to free, sensationalist "news" sites like Gawker?
#1 Posted by Jassa Skott, CJR on Fri 14 Sep 2012 at 12:28 PM
Thanks, Jassa, for the comment and questions. And thanks for the link to the fantastic Chicago study.
I get the problem, and I have to believe the needle between subscriptions and sharing can be threaded somehow. The NYT model was a big step in that direction. Felix, as usual, offers some good observations on how that model begins to help to solve the problem you describe.
It strikes me that the subscription/sharing question is a technical one more than anything else. It seems to me, for instance, that in-bound traffic from social media would be exactly the kind that would *not* be counted on a metered system.
I grant that, as many point out, the Times is sui generis in many ways, but the general logic, I think, holds. For small news organizations that increasingly rely on sharing, the most important question is what it is they'll have to share.
#2 Posted by Dean Starkman, CJR on Fri 14 Sep 2012 at 01:43 PM
Thanks for the response. I respect how the NYT is negotiating the paywall terrain. I also think the Minneapolis Star Tribune experience is intriguing and will be closely watched -- http://www.ajr.org/Article.asp?id=5390. It will be interesting to see if their new owner supports or impedes their progress.
#3 Posted by Jassa Skott, CJR on Fri 14 Sep 2012 at 03:34 PM
I would posit that really local papers are in the best position to have paywalls work, since, if they do good local reporting, there is no other source for that information. It is the more regionally focused papers that don't have much exclusive coverage of the dozens of towns they cover, that paper over staff cuts with wire and less coverage and just cut, cut, cut, that won't give people any reason to go through the paywall. If smaller, local papers can offer more than just police blotter and shallow meeting coverage and high school sports scores, they could entice paying customers. People will pay for information that they want and that's hard to get. Kardashian follies, no. Full account of what the zoning board is doing? Yes. And please, goddammit, can some local news site bother to find out when my trash gets picked up after the holidays and what my kid's school lunch menu is?
#4 Posted by Brian O'Connor, CJR on Fri 14 Sep 2012 at 05:53 PM
Great article, Dean, but it contains lotsa broken links. I've emailed you with the details at your deanstarkman.com email address.
#5 Posted by Bill McHugh, CJR on Fri 14 Sep 2012 at 09:19 PM
In response to the article and Brian O'Connor's comment, no matter what market it's in, a website has to be good to justify having to pay to access it. Advance's New Orleans Times-Picayune is (at least for now) my morning paper, and I can tell you that no one in their right mind would pay to access its lousy NOLA.com website. I think some would pay for a subscription to an e-edition in the form of a .pdf of the actual, full print edition of the paper that they could read on their tablet or computer screen. I've asked the Picayune's management whether this might be in their plans, but despite the fact that I've identified myself to them as a 40-year daily print subscriber they haven't seen fit to give me an answer.
Coincidentally, in my blog this morning I brought up one of the same issues that Dean has covered here: http://www.dumpthepicayune.com/problematic-priorities/
#6 Posted by Bill McHugh, CJR on Fri 14 Sep 2012 at 10:03 PM
I doubt that the Advance or Digital First models will work. But I also doubt that local newspapers can -- even with full staffing -- generate the kind of distinctive, high-quality content online that readers will pay for. Remember, online readers can go a million different places for distraction with equal ease. If they're blocked by a paywall from local news, they can go to an aggregator for national news, which is more dramatic anyway. Or they can go play bingo. Whatever.
The "digital revolution" is a pretty tired horse now, nearly 20 years old at a time when the online world changes day by day. Maybe newspapers need to face up to the possibility that digital is not a suitable medium for real journalism. And maybe we ought to stop thinking of technology as something limited to the Web, PCs and mobile devices.
Instead, why not try to solve a real tough nut of a problem: Let's assume print is the ideal medium for daily journalism, as it has been for many, many generations. Then the problem becomes how to deliver print cheaply. Maybe we need to progress from gigantic steam-age printing presses in a one location and a fleet of gas-guzzling trucks to disperse the product hither and yon. Can there be a better way to deliver, say, a densely news-packed (like the IHT in Paris) product with less advertising to paying subscriber's doorsteps?
Now there's a REAL tech problem. And if you solve it, you can preserve real journalism.
#7 Posted by Pelham, CJR on Sat 15 Sep 2012 at 10:51 AM
Stephen Colbert should use the term "digital hoo-hah" for tonight's The Word segment.
Interesting article.
#8 Posted by neucompany, CJR on Mon 1 Oct 2012 at 03:02 PM