What can RI, ProJo expect from GateHouse?


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ProjoI was a just journalism student at URI when the Providence Journal was sold to Belo in 1997. Linda Levin was the best professor we had, and her schtick was regaling us with stories of her and her husband Len Levin’s glory days in the ProJo newsroom. She was outwardly devastated. I was made to understand this didn’t bode well for my chances of taking over Bill Reynold’s For What It’s Worth Column after graduation.

Before I even had a diploma, I had already been through a newspaper sale myself. The previous summer I interned for the Block Island Times when it was purchased by Jamestown Press owner Jeff McDonough. And ever since then, I’ve spent what seems like the bulk of my career being either bought or sold.

I left the Ashland Daily Tidings when Rupert Murdoch bought our parent company, and ended up at the Brattleboro Reformer, which MediaNews Group had recently acquired. My new beat required the labor two employees performed under the previous owner. I left that job to launch a community news site in East Greenwich, which was soon sold to Patch. So I took a job at WPRO, and was downsized when the talk radio station’s parent company was swallowed by Citadel Broadcasting. In seven years, I’ve been either one step ahead of or behind no fewer than four media mergers and/or acquisitions.

So pardon me if after 17 years of learning that they almost always eventually lead to downsizing, if I’m not as “excited” for the second sale of the Providence Journal as is Michael Reed. He’s the president of New Media Investment Group, the ProJo’s soon-to-be owner. He said in a press release: “We are very excited to welcome the paper, its employees and the community into the growing New Media family.”

He should be excited. He just paid $46 million for what the Metcalf family begrudgingly sold for $1.5 billion in 1997. Belo also got some TV stations when they bought in ’97 (which it has long ago spun off) and will hold on to the Fountain Street real estate in this sale. Some think New Media paid a premium (Rhode Islanders know it got a great deal!).

And how about us Rhode Islanders, and our trusted Providence Journal reporters? We know Reed is excited to have us in his life, but should we be equally excited to have him in ours?

Probably not.

New Media Investment Group is the internet-y sounding alias for GateHouse, and GateHouse is known as one of the worst employers in the newspaper industry. It owns close to 500 newspapers around the country, and I’ve never, ever heard of a newspaper improving when GateHouse takes over. Though I believe they often become more profitable. Google GateHouse and it’s too easy to find tales of rampant layoffs and Dickensian cost cutting – journalists have been known to lose both their newsroom coffee, and also their copy desk!

But the new boss has something very unique in the Providence Journal. Something the Metcalf family was able to tap into much more effectively than Belo ever did. The new boss doesn’t own another metro market-leading news platform, and Rhode Island, with its city-state like community, is unlike any other state-wide media market. It’s very reasonable to assume Michael Reed would want develop a unique approach to this unique asset.

Maybe the new boss will look to John Henry and the Boston Globe for inspiration, and invest in The Providence Journal rather than divest?

How to buy the Providence Journal, and why


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ProjoWith the news that The Providence Journal is up for sale, there’s a lot of people trying to suss out who will be the new owner, with famous rich people being thrown out as names.

One name I suggested was the people of Rhode Island. Maybe a “Make The Journal Your Own” campaign or something. The problem is, of course, that you still need some rich civic-minded millionaires. If the sticker price for The Journal is say, $30 million, then you need 30,000 people to average a payment of $1000. It’s not impossible, but it’s not likely.

This type of arrangement, where a group of people get together and buy a corporation is more typical of sports. In America, the most prominent example is the Green Bay Packers, who have been a nonprofit corporation since 1922 and have 5,014545 shares of stock owned by 364,114 stockholders, according to the team’s website. Their history of being owned by their supporters is a bit different, it took benevolent local businessmen to ensure that that would happen.

I certainly feel like news media is a more important investment than a football team, especially in Rhode Island. The value would be that the entirety of The Journal would be beholden to Rhode Islanders; instead of to some single entity, whether a faraway private corporation or an extremely rich owner and their family. They’d have a board of directors picked by the shareholders, and the corporation could even have a rule that no single person could own a controlling majority of the stocks.

Could you make money? That’s ultimately the question, and the argument might be that the concern for these new citizen-owners wouldn’t necessarily be a return on investment in financial terms, but rather in news terms. There’s no mistaking that The Journal has been gutted over the years; the physical paper’s shrunk as fewer and fewer journalists are working for it.

This isn’t a solution for news media though. One of the more interesting things said by the authors of Dollarocracy at a talk I attended earlier this year was that for too long we’ve thought of news media as a business because advertising has been investing in it. But as they went on to say, this wasn’t because advertising loves news, it’s because the eyeballs were there. In the modern era, where you can go to Google or Facebook and purchase a demographic (16- to 32-year-olds who love skateboarding-dogs), why bother making your demographic New York Times readers or Providence Journal readers?

The authors had an idea for a citizen voucher to fund news, based off of an idea that came out of the Center for Economic and Policy Work for a “Artistic Freedom Voucher” which was aimed at working around America’s restrictive copyright laws. This puts news outside of the profit-making scheme and into the publicly-financed realm. That might be an interesting policy decision for Rhode Island, but in the here and now, I don’t think it’s likely.

If The Journal was also printing money along with newspapers, I don’t think A. H. Belo would be selling it right now.

Heartfelt Sympathies to Laid-Off ProJo Employees


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The big local story of the day will be neither the 2012 election or the Son of Sandy, as the Providence Journal cleverly called it this morning … rather it will be the employees of said newspaper who lost their jobs yesterday.

I hear 26 people were let go – 16 union and 10 non-union – in contrast with the Journal’s own account which said 23. My information has it that the newsroom lost three editorial assistants, two photo editors, three photographers and the library assistant. That’s 9 journalists our paper of record is losing as a result of this decision from Dallas based on how to better serve stockholders rather than Rhode Islanders.

From someone who went through the very same experience almost a year ago to the day (Nov. 4, 2011), you each have my most heartfelt sympathies. And regardless of what you might think of my curent product, I hope you each see RI Future, the project I took on post lay-off, as a bright, bright sign that there are options available where you can continue to do journalism and contribute in a meaningful way to our community. And maybe even eke out a little living!!

It’s called independent media, and it’s the most important sector of the marketplace for Rhode Islanders to invest their resources and energy if we want to foster a healthy democracy.

I won’t lie, it’s much more lonely out here than it is in the old-style newsroom. And a year later I still often fear for my financial future. And it might not be for you if you don’t like challenging assumptions and trying new things.

But more than anything, I’m extremely optimistic about the opportunities that are out there for us independent journalists in the 21st century.

In several different capacities, I’ve been preparing to be kicked out of corporate media for years. Seeing the writing on the wall way back in 2003, I taught myself HTML and built my first blog. Four years later, I helped launch the first local news website in the state – My02818 was bought by AOL and we became the only site to be transitioned into a Patch site (EG Patch is still the best community news organization in the state, thanks to the great management of my former colleague – and ironically enough also a former ProJo copy editor – Elizabeth McNamara!!)

Then, of course, I moved over to WPRO to launch their post-Go Local-debacle foray into the digital world. After dramatically increasing their readership, they repaid me by eliminating my job description (on paper anyways, I’m pretty sure Dee DeQuattro has the same job title now).

If it sounds like I’m bitter, I’m not. I never really was. Corporations are out for profits, not news dissemination, and I fully expect smart corporate actors to behave in their best interest. Just like a thief will rob you if he can get away with it, so will a corporation cut you lose if they can make more money without you. I understood that pretty well before being laid off, but I know it really well now!

Here’s how Led Zeppelin once put it: “Your brother brought me silver/ Your sister warmed my soul/ But now I laugh and pull so hard/ And see you swinging on the gallows pole.”

But let’s all hate the game, rather than the players! Belo and Cumulus didn’t do anything wrong – they just filled their niche in our community. It’s up to consumers and citizens to speak with their dollars and their votes if we want corporate forces kept in check, and journalists to be able to make a living telling everyone what they ought to know about their world.

And more importantly, it’s totally awesome and liberating out here. Every single day with RI Future, I get to help define the future of journalism in my home state … that is the opportunity of a lifetime. Many lifetimes, in fact. It’s the journalistic opportunity of the millennium, to be precise!

And, besides, all of us are going to have to learn to survive on a little less in this corporate-controlled incarnation of America … and we get to be a pioneers on that front too!!

If any out-of-work journalists – or anyone really – ever wants to talk about how to use the internet and new media to survive outside of the traditional corporate-controlled media market, I’m always more than willing. It’s probably my favorite thing to talk about.

In fact, I’ll be touching upon this very topic when I participate in one of the panel discussions on the future of news at my alma mater, URI, with ProJo New Media editor Peter Phipps, assuming – and I really do hate to even type this – that he isn’t one of the people who lost his job yesterday.

Local News Victimized by Trickle Down Economy


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While progressives may not always agree with the Providence Journal, we ought to at least appreciate its efforts. It’s been said before and it’s well worth saying again: The Providence Journal is the single biggest and best news and information provider in Rhode Island, and everyone here owes it a huge debt of gratitude.

And just as progressives should do when any community institution with such tremendous public benefit is threatened by corporate greed, we ought to be sticking up for the ProJo as its parent company Belo is calling for more staff cuts.

Ian Donnis estimated that 15 full-time employees would have to be eliminated in order to meet the goal of slashing $1.2 million from the daily newspapers bottom line.

Meanwhile, A.H. Belo reported profits of $262,000 in the second quarter. Third quarter profits will be announced on Monday. (correction: An earlier version of this post incorrectly cited Belo TV second quarter profits.)

And remember back in March when Belo executives gave themselves some pretty big raises? Here’s what Ted Nesi reported then:

The compensation committee of A.H. Belo’s board of directors awarded the largest increase to CEO Robert Decherd. His annual base salary will jump 25% to $600,000 in April, the Dallas-based company said in an SEC filing. Decherd is chairman of the board.

In addition, A.H. Belo said Dallas Morning News publisher Jim Moroney’s base salary will increase 15.5% to $540,000; Chief Financial Officer Alison Engel’s will increase 8.3% to $325,000; and senior vice president Daniel Blizzard’s will increase 12% to $280,000.

Those four employees alone could come up with enough spare change to save every job at the Journal. But instead of four Dallas-area fat cats taking pay cuts, another dozen young Rhode Islanders will be out of jobs.