RIP: Rocky Mountain News shuts down; can the Newspaper Industry Recover From this Chaos?By Marc Chamot
The future for newspapers is getting gloomier and gloomier as the days go by. After the San Francisco Chronicle claimed $50 million in loses last year, the Rocky Mountain News shut their doors with only $18 million in losses. It’s a far cry from the $50 million that the S.F. Chronicle claimed that they had lost, but sadly, the Rocky Mountain News still shut their doors.
What made E.W. Scripps decide to close down a 150-year Colorado institution is pretty much the same fate that’s happening with all newspapers around, they can’t get any buyers to dispose of a fast collapsing industry. No one wants to buy a losing enterprise these days.
What’s happening with newspapers it’s pretty much the same as to what is happening to American industries. Their managers have lost those “hands on” approaches to management style. It’s all about sitting behind glass walls, with cups of coffee, giving orders and shuffling papers, instead of getting out and getting their hands dirty. This mentality is most common with newspaper circulation department heads, which I have seen throughout my years working for newspapers, they are oblivious to the real problems at hand that goes on with the general workers that is affecting a company’s success.
Believe it or not, the good news for the newspaper industry is that there are things that they can do to survive. Newspapers must streamline their operations, those days of big multi-storied office buildings with lavish offices laden with many secretaries and receptionists are gone. That day when a publishers’ office was as lavish and as elegant to the one of the president of the United States is pretty much over.
Newspapers have to rethink as startups, not just give up. Newspapers still have the income coming in; even though it’s declining, and it should bottom out soon, but getting back to what it was may take a very long time. Part of the newspaper’s financial problems, is that they have become too dependent in national chains for their advertising needs, rather than promoting their local mom and pop businesses and classifieds. When these national chains are hurting, the newspaper advertising costs is the first to go. Most major advertisers no matter what industries they are from, they will still need that public exposure that newspapers provide for their advertising materials that the Internet, radio and television does not provide.
The Internet is fine for national and global reach, but reaching deeper into the average American local markets, the Internet cannot do what newspapers can. In truth, what has been hurting the newspapers industries with their advertising revenues are radio and television. As newspaper advertising costs began to skyrocket around the nation, advertisers went to the least expensive methods, like radio and television. Newspapers have begun to have a double whammy bestowed upon them; the loss of advertisers to radio and television and loss of readers to the Internet and it’s a real calamity for the industry.
In Debra J Saunders’ San Francisco Chronicle’s column yesterday, she blasted the readers anti-sympathetic response in a possible Chronicle shut down. She also mentions that most Internet users get their local news from newspapers, which is true. She goes on to say that if newspapers die, then reliable information will dry up. She said that newspapers are the public’s referees as to which information is credible. She also mentions about some stories that the San Francisco Chronicle wrote that impacted, and helped clean up the communities from corruption and other acts being perpetrated against its citizens. She talks about newspapers as being credible news sources and as to where people were going to get their information from down the line.
Last year on my blog, I had warned the newspapers industry that if they didn’t change their ways on editorials, like those that were always catering to the minority of viewpoints and the few, instead of the majority, then their end time was coming soon, and apparently it came sooner than what I thought it would. What Debra J Saunders forgets, is that newspapers brought it all upon themselves editorially speaking. They have become the new punching bag of some sort and they are on the blunt end of a reader’s backlash and they don’t realize it.
Yesterday, I talked to an acquaintance at the San Francisco Chronicle, a journalist I knew, I kind of wanted to gloat about the Chronicle thing with him. Lance Williams, (from the Barry Bonds, and BELCO case,) he’s someone I’ve known for many years; I told him that the end of time is beginning for that oversized and costly industry. I explained to him that’s what happens when you lose reader loyalties, especially through one sided editorials, such as what they did with the proposition 8, the homosexual marriage initiative of California. But, of course he denied that those were the reasons.
Lance Williams has that stereotypical newspaper journalist attitude that you see around most newspapers, just like Debra J. Saunders, who all live in a world of denial. They hate the Internet, they hate bloggers and they think that they are too good for anyone to find any faults with them and on their reporting and writings. They believe more in their newspapers owners and publishers, rather than what the reader believes in, they usually tow the line for their publishers ideals and AGENDAS, and they are the ones that are pushing these editorials on unsuspecting readers for their masters’ sakes, no matter how controversial or contradictory it can be for their newspapers.
So, to my friend Lance Williams and columnist Debra J Saunders, let’s get real about it. If you’re still on those denial aspects about the true causes for your newspaper’s situation, here’s a reality check and opinion from one of your own former readers to your newspaper, and of course, it’s not from me.
This was in today’s letter to the editor in the San Francisco Chronicle, in regards to their shutting down written by a former reader, who said it best: “Won’t be Missed: Over the years I have watched the quality of reporting at the Chronicle sink into a left-wing miasma of bias and omission, until the front page and the editorial page are virtually interchangeable. Now I see that you are teetering on the brink. Sorry to report that this is the 21st century, the age of the Internet, the iPhone, and cable news. Your readers are no longer stuck with a one sided rag, requiring a fleet of trucks and tons of paper. Goodbye and Good Riddance!” Jeff Beaver Mill Valley CA
Regardless of newspaper’s editorial problems, it can be solvable. I had been with the newspaper industry for over thirty years, and I know some things that newspapers can do to save their selves before they decide to shut their doors permanently. Circulation is a newspaper’s largest and costliest to newsprint, ink and printing. I have five things that newspapers can do to stay alive. It involves paid subscriptions, home deliveries, contracting out, re-inventing classifieds and a foolproof circulation marketing system. I have traveled abroad, believe it or not, most foreign country’s daily papers have a more advanced delivery-marketing system than we do, and they do not include home deliveries.
But of course, Marc Chamot, "moi", a former newspaper man with over thirty plus years in the newspaper marketing and delivery systems will certainly not give up this information for free, especially on the Net. If any newspaper management reads this and wants to contact me at marcchamot@yahoo.com , or hire me on as a consultant, I would be more than happy to show you on how to keep your newspaper going through these hard times.
In closing, newspapers for years have had pretty much a “free run” in pushing propagandas and unpopular opinions on their readers for so long, that now people have found better alternatives to squelch their thirst for information (the Internet,) and unfortunately they have pretty much stopped buying and reading your products entirely.
Final Edition: Rocky Mountain News to Shut Down Today
By Howard Kurtz
Washington Post Staff Writer Friday, February 27, 2009; Page D03
Colorado's oldest newspaper, the Rocky Mountain News, is shutting down today, and industry analysts say it won't be the last to be pulled under by a rising tide of financial woes.
E.W. Scripps announced yesterday that it is closing the 150-year-old Rocky, which has won four Pulitzer Prizes in the last decade, leaving Denver, like most American cities, a one-newspaper town.
These are dark days for the struggling news business. Hearst threatened this week to close the San Francisco Chronicle unless major budget cuts are imposed or a buyer is found, and is also prepared to close the Seattle Post-Intelligencer if it cannot be sold. The Philadelphia Inquirer and Daily News filed for bankruptcy protection this week, joining Chicago's Tribune Co. and the Minneapolis Star-Tribune in Chapter 11 status.
Industry analyst John Morton called the Rocky's failure to find a buyer unsurprising. "The market is awash in newspapers for sale, and nobody is buying them," he said. "This recession has so impacted advertising revenue, particularly classifieds that it's driven into unprofitability those who are in a precarious position."
Scripps said in a statement that the tabloid became "a victim of changing times in our industry and huge economic challenges. The Rocky is one of America's very best examples of what local news organizations need to be in the future. Unfortunately, the partnership's business model is locked in the past."
That model is a joint operating agreement, an eight-year-old arrangement blessed by the Justice Department, in which the Rocky has shared business and production costs with the rival Denver Post. Each has a daily circulation of 210,000. Scripps said in December that it would try to unload the Rocky.
As grim-faced staffers looked on yesterday, Editor John Temple introduced two Scripps executives, who said that Denver could no longer support two newspapers. They said there was only one potential buyer, who backed out.
"This is a really sad end to a beautiful thing," Temple told his staff, adding that the final edition was like "being given the chance to play the music at your own funeral."
In an online blog, the paper reported: "The mood in the room is getting nastier and bitter, reporters wondering if the execs tried hard enough to save the paper or put pressure on the Rocky Mountain News."
On Twitter, one staffer wrote: "In news meeting, puffy-eyed Managing Editor is handing out assignments."
Readers posted reactions on the Rocky's Web site: "This is such a sad day." "It will leave a huge unfillable void in the Denver and Rocky Mountain region." "Bye old friend."
M.E. Sprengelmeyer, who lost his job as Scripps's Washington correspondent for the Rocky, said the paper "really was a scrappy little place. It had a little more bulldog in it than terrier. It's a place where you could pitch the wacky stuff," as he did by moving to Iowa for a year before last year's presidential caucuses.
The Denver Post, which reached an agreement with local unions this week to cut costs by 11.7 percent, is owned by William Dean Singleton's MediaNews Group. Singleton said in a statement that "the Rocky will forever be remembered for its vital role in the city's history and the city's success. Although we competed intensely, the talented staff of the Rocky earned our respect with each morning's edition." The Post said it will hire a number of Rocky reporters, columnists and editors, but this amounts to less than 5 percent of the paper's 200-person newsroom. Story http://www.washingtonpost.com/wp-dyn/content/article/2009/02/26/AR2009022602108.html







