A Physicist Explains How Online is Killing Newspapers

David Weir writes:

Management could begin this painful process by applying a concept from physics — local optimum — to gain insights into how the organizational structure of a traditional media company typicaly reacts to the disruptive effects of new technologies.

It works like this: Any entrenched business model has evolved over time so that each company in the industry has optimized locally to the point that small changes (like firing a few reporters or photographers) isn’t going to help any given newspaper survive hard times; rather, it is going to hasten its demise.

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Lee Enterprises cancels plan for reverse split

Newspaper publisher Lee Enterprises Inc. said Wednesday its board has decided against a reverse stock split.

The company's shareholders voted to give the board authority to enact a reverse split in March. The New York Stock Exchange notified the publisher late last year that it faced delisting if it couldn't keep its share price above $1. But the NYSE temporarily suspended that standard in February as a growing number of companies faced delisting in the broader market downturn.

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NAHJ Membership Plunges in Newsroom Job Crisis

Membership in the National Association of Hispanic Journalists (NAHJ) has plummeted by 36% in the past year as layoffs and newsroom budget cuts take their toll.

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Trinity Mirror to close nine Midlands newspapers

Trinity Mirror is to close nine local newspapers in the Midlands and make almost 120 staff redundant.

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Indianapolis Star union rejects Gannett contract offer

The Indianapolis Newspaper Guild voted overwhelmingly yesterday against a new contract with the Gannett Co.-owned Indianapolis Star.

Union members voted 97-9 against a contract that would cut salaries by 12 percent between now and October. The contract gave union members no assurances there wouldn't be further layoffs or unpaid furloughs.

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Only 277 Newspaper Layoffs Reported in June

Jeffery Pijanowski reports:

Only 277 layoffs were reported in the newspaper industry in the month of June, the lowest number in 2009 by far.

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St. Paul Pioneer Press lays off 9 employees

The St. Paul Pioneer Press has laid off nine employees.

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Gannett to Cut About 1,400 Newspaper Jobs by July 9

Gannett Co., the largest U.S. newspaper owner, will eliminate about 1,400 publishing jobs by July 9 as it copes with declining advertising and circulation.

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Are Newspapers Sinking Or Swimming?

Greg Lamm writes:

Just how badly is the internet affecting daily newspapers? The Inland Press Association has an interesting report out today that concludes that print dailies had seen an erosion of revenue and profits for at least five years even before the current recession.
But after crunching financial data from 120 U.S. newspapers, the Illinois-based industry organization concluded that profits remain strong at many newspapers, especially smaller dailies.

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The next newspaper crisis: shoddy website design

Ben Lamothe writes:

Since the floor has fallen out of print circulations at many newspapers, editors are paying greater attention to the layout of their web sites. What they're finding isn't pretty.

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Gannett To Cut More Than 1,000 Jobs: WSJ

Newspaper publisher Gannett Co. will cut more than 1,000 jobs, according to a media report published Tuesday. The online edition of The Wall Street Journal, citing an unnamed source, reported that Gannett will make the cuts at its U.S. Community Publishing division, which consists of more than 80 local daily papers. Gannett, like other newspaper publishers, is suffering from a decline in advertising revenue. The company cut more than 10% of its 41,500 employees last year, and had been widely expected to make further reductions.

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S&P Predicts McClatchy Default

Standard & Poor's Ratings Services is predicting that the McClatchy Co. will default on at least part of its debt by the end of 2009 or in early 2010, according to a note to investors released on Tuesday.

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The Uncertain Future of Journalism

Last night, Bay Area journalists got together at the San Francisco Commonwealth Club for a panel discussion on the approaching death of newspapers and the uncertain future for news media and journalism at large.

The panel - which included Chronicle editor Phil Bronstein and UC Berkeley professor Lowell Bergman, along with founders of rising media outlets Spot.Us and Kachingle - debated a range of issues, including whether newsprint has actually gone to the grave, potential alternative models for financing the media, how reporters can best capitalize on the Twitter-speed flow of information, and the role of the public in so-called citizen journalism.

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