Earnings season: Newspapers finish 14th straight revenue-losing quarter; some intel from Wall Street filings

By Martin Langeveld

When revenue is still seriously down, but profits are up, is that good news? The U.S newspaper companies that have reported fourth quarter 2009 results so far would have you believe it is. But based on their reports, it’s clear the industry as a whole is still in deep trouble, with no strong indication that better days are ahead.

Five of the ten publicly-owned U.S. newspaper companies have reported their fourth-quarter 2009 results; five more to go. (Those reporting so far are Gannett, New York Times Co., Media General, Lee Enterprises and McClatchy. We also have results from News Corp., but News publishes newspapers on four continents, and much of its revenue comes from films, television, cable, and book publishing. Its U.S. newspapers represent perhaps 10 percent of News Corp.’s total revenue and are not broken out for comparison.)

Keep reading »

Singleton’s next chapter: Can he steer MediaNews to a digital future?

By Martin Langeveld

[Our regular contributor Martin Langeveld spent 13 years as a publisher in MediaNews Group. That gives him an inside perspective on the company's bankruptcy filing, which he shares with us here. —Ed.]

In August 2006, as part of a deal that netted MediaNews Group the Contra Costa Times, San Jose Mercury News, and the St. Paul Pioneer Press, the Hearst Corporation agreed to make a $300 million equity investment in MediaNews. At that point, the peak of MediaNews’ company’s expansion and with revenue and cash flow at an all-time high, the holdings of the principal stockholders — the Singleton and Scudder families — net of debt, were arguably worth more than $500 million each.

But last Friday, whatever was left of that equity, as well as Hearst’s stake (not finalized until a year later), evaporated as part of an announced plan to file a “prepackaged” Chapter 11 bankruptcy. For Hearst, it’s a hefty writeoff of a bad investment. For the Scudders, it’s a bitter payoff after nearly 25 years of active participation in MediaNews management. For MediaNews CEO William Dean Singleton and his financial wizard, company president Joseph (Jody) L. Lodovic IV, it’s a fresh start (which includes a 20 percent equity stake for the duo, and retained control of the company).

Could readers of the company’s papers now see new investment in its newsgathering capabilities, long hammered by budget reductions? For MediaNews employees, could this be an opportunity to participate in the transformation of the company into a truly digital enterprise? Both answers depend on what kind of vision is shared by Singleton, Lodovic, and the former bondholders who are now their equity partners. Keep reading »

What 2010 will bring newspapers: Bad revenue news, bad bankruptcy news, and maybe a nice tablet

By Martin Langeveld

[Yesterday, we showed how our Martin Langeveld's predictions for 2009 turned out. A few hits, a few misses, but lots of thoughts provoked. Here's his list of what we can expect in 2010. —Josh]

Newspaper ad revenue: At least technically, the recession is over, with GDP growth measured at 2.2 percent in Q3 of 2009 and widely forecast in Q4 to exceed that rate. But newspaper revenue has not followed suit, dropping 28 percent in Q3. McClatchy and the New York Times Company (which both came in at about that level in Q3) hinted recently that Q4 would be better, in the negative low-to-mid 20 percent range. This is not unexpected — in the last few recessions with actual GDP contraction (1990-91 and 2001), newspaper revenue remained in negative territory for at least two quarters after the GDP returned to growth. But the newspaper dip has been bigger each time, and the current slide started (without precedent) a year and a half before the recession did, with a cumulative revenue loss of nearly 50 percent. Newspaper revenue has never grown by much more than 10 percent (year over year) in any one quarter, so no real recovery is likely; this is a permanently downsized industry. My call for revenue by quarter during 2010 is: -11%, -10%, -6%, -2%.

Newspaper online revenue (included in the overall prediction above) will be the only bright spot, breaking even in Q1 and ramping up to 15% growth by Q4.

Newspaper circulation revenue will grow, because publishers are realizing that print is now a niche they can and should charge for, rather than trying to keep marginal subscribers with non-stop discounting. But this means circulation will continue to drop. In 2009, we saw drops of 7.1 percent in the six-month period ending March 31 and 10.6 percent for the period ending Sept. 30. In 2010, we’ll see a losses of at least 7.5% in each period.

Keep reading »

Keeping Martin honest: Checking on Langeveld’s predictions for 2009

By Martin Langeveld

[A little over one year ago, our friend Martin Langeveld made a series of predictions about what 2009 would bring for the news business — in particular the newspaper business. I even wrote about them at the time and offered up a few counter-predictions. Here's Martin's rundown of how he fared. Up next, we'll post his predictions for 2010. —Josh]

PREDICTION: No other newspaper companies will file for bankruptcy.

WRONG. By the end of 2008, only Tribune had declared. Since then, the Star-Tribune, the Chicago Sun-Times, Journal Register Company, and the Philadelphia newspapers made trips to the courthouse, most of them right after the first of the year.

PREDICTION: Several cities, besides Denver, that today still have multiple daily newspapers will become single-newspaper towns.

RIGHT: Hearst closed the Seattle Post-Intelligencer (in print, at least), Gannett closed the Tucson Citizen, making those cities one-paper towns. In February, Clarity Media Group closed the Baltimore Examiner, a free daily, leaving the field to the Sun. And Freedom is closing the East Valley Tribune in Mesa, which cuts out a nearby competitor in the Phoenix metro area. Keep reading »

California Watch: The latest entrant in the dot-org journalism boom

By Martin Langeveld

“Ten years ago,” says Mark Katches, editorial director of California Watch, “there were 85 reporters covering the California state house; today there are fewer than 25.”

Katches sees California Watch, which officially launched yesterday after a soft launch period and months of preparation, as stepping into a “big void in doing investigative work in California.” Katches has assembled the largest investigative team in the state: seven reporters, two multimedia producers, and two editors.

The site is focused on investigative watchdog journalism. It won’t cover the ins and outs of the California legislature or other governmental minutiae, aiming instead to “expose injustice, waste, mismanagement, wrongdoing, questionable practices and corruption, so that those responsible can be held to account and the public is armed with the information it needs to debate solutions and spark change.” Besides political topics, the site will cover higher education, health and welfare, and criminal justice. Keep reading »

Texas Tribune: An impressive launch that feels web-native

By Martin Langeveld

The Texas Tribune lifts off this morning in Austin — there’s an election today — offering not only a slew of innovative features but also a unique content-sharing plan, by which the state’s legacy media can freely publish any content generated by the Tribune and dip into its multi-faceted information databases.

Tribune CEO and editor Evan Smith took me on a tour through the site last night, showing off what he and a staff of just 16 (plus some outside help from Austin design group FlashBang) have put together in just three months of ramp-up time. Smith points out that Trib (as it tends to call itself) is not just about journalism, but about information and context. And in fact, the depth of political information already offered on the site puts to shame the offerings of many metro newspapers with vastly larger reporting, technical and design resources than the Trib.

The Trib is offering all of its content as a “free syndication service” to print and broadcast media throughout Texas, as long as it’s credited to Texas Tribune. The reception of this offer, especially among the larger newspapers, has been cautious, Smith says, but has been welcomed by smaller papers without a statehouse staff of their own. The Waco Tribune-Herald has already published some Tribune content, according to Smith. Texas media will also be able to offer their readers access to Texas Tribune databases via apps they can embed on their sites.

On the Trib front page, Smith points out: Keep reading »

Newspapers take a bus plunge: circulation plummets 10.6 percent

By Martin Langeveld

It’s hard to put a good face on this kind of news; in fact, it reminds me of the old “bus plunge” meme. The Audit Bureau of Circulations (ABC) reports that newspaper circulation for the six months ending Sept. 30 dropped 10.6 percent from the same period in 2008 (7.5 percent on Sundays).

And this is an accelerating trend. Here are the results for the three previous six-month reporting periods (in each case, versus the same period one year earlier):

— Oct. 1, 2008-Mar. 31, 2009: down 7.1 percent on weekdays, down 5.3% on Sundays
— Apr. 1, 2008-Sept. 30, 2008: down 4.6 percent on weekdays, down 4.9 percent on Sunday
— Oct. 1, 2007-Mar. 31, 2008: down 3.5 percent on weekdays, down 4.5 percent on Sundays

In each case, the decline was the worst ever reported by ABC. The bus-plunge, cliff-drop analogy will get additional support when the Newspaper Association of America’s third-quarter advertising revenue report comes out (typically at Halloween); it’s likely to continue the trend of the previous two quarters with a drop in the 20-30 percent ballpark.

The NAA has not provided positive spin on the circulation news (it usually distributes an internal memo with upbeat talking points for publishers), but last week it did report gains in newspaper website traffic along with this comment from NAA President and CEO John Sturm:

Newspaper publishers continue to aggressively reinvent their business models, leveraging trusted brands to attract a growing and sophisticated audience in the digital space. At the same time, industry executives have adopted smarter circulation strategies that are growing circulation revenues even though paid circulation numbers are lower. This places the focus where it belongs: retaining core readers who deliver maximum value to advertisers while harnessing digital platforms to broaden our medium’s audience and position us strongly for the future.

Keep reading »

Has newspaper advertising reached rock bottom? Probably not.

By Martin Langeveld

During the last few months, as newspaper stock prices rebounded somewhat from  their lowest points, and as newspaper execs suggested, in conjunction with second quarter results, that having made all the cuts they did, they would be in good shape “once advertising rebounds,” I found myself nevertheless thinking the same thoughts as the crystal ball-gazers consulted by the New York Times who said that the bottom, for newspaper advertising revenue, had not yet been reached.

The good news is that the third quarter of 2009 won’t be quite as bad as the second: the consensus is that revenue will drop just 25 percent, compared to about 30 percent in Q2.  That means that even if the fourth quarter somehow manages to be dead even with last year’s Q4, revenue for the year will be down 20.4 percent.  But dead even would be a big stretch, because the first three quarters of 2009 will average about $6.7 billion, while Q4 of last year was $10.1 billion.  Typically, Q4 beats the average of the first three quarters of the year by about 22 percent in good years, less in bad years.  Even with the benefit of the doubt at a 20 percent differential (Q4 vs. the average of Q1-3), that puts Q4 at $8.1 billion (down 20 percent from prior year) and the full year 2009 at $28.2 billion, down 25.5 percent from last year’s $37.8 billion. (My recent guess for the year stands at $27.5 billion.) For newspapers to get to  around $28 billion for the year, however, advertisers would have to invest in newspapers in Q4 with the assumption that the recession is mainly over and that consumers will be loosening purse strings significantly during the holiday shopping period.

Keep reading »

Can newspaper publishers survive this revenue freefall? Perhaps, if they embrace a digital future.

By Martin Langeveld

Without the fanfare that accompanied the recent release of its online readership data, the NAA quietly posted last week its latest compilation of quarterly revenue data for U.S. daily newspapers, in a data set it has maintained for 50 years. The latest figures, for the second quarter, show an alarming drop of 30.15 percent in print revenue and 15.90 percent in online revenue versus the same period in 2008. Despite signs elsewhere that the recession may have bottomed out, these figures are even worse than the first quarter results (declines of 29.70 percent in print and 13.40 percent online).

Alan Mutter, the Newsosaur, analyzes these numbers by category and projects that for the full year 2009, combined print and online revenue will be “no more than $27 billion” — and worse if the economy doesn’t pick up —  a drop of more nearly $11 billion from 2008’s $37.8 billion. My guess is slightly higher: print revenue of $25 billion; online revenue of $2.5 billion, total $27.5 billion — a drop of $10.3 billion.

How did this happen to an industry that in 2005 garnered record revenue of $49.4 billion ($47.4 billion of it in print)? By adjusting the historical numbers for inflation, as Mutter did, the industry is half the size it was in 1986, when it scored $52.3 billion in 2008 dollars. But that doesn’t paint the whole picture.

A better way to look at the historical revenue record is to place it in the context of total advertising expenditures across all U.S. media. I’ve done that, and here’s what it looks like:

(Click here to see a larger version of this chart.)

That ever-declining line of dark blue diamonds is the newspaper share of total advertising expenditures. In other words, with very few plateaus or upticks, newspaper share of market dropped steadily since 1949 (and even earlier – the peak was actually in 1933 with a share of close to 50 percent), and in the last few years the steady decline has become a precipitous one.

Keep reading »

How healthy are community papers? The sudden death of the Eagle Times

By Martin Langeveld

A scenic ride along the Connecticut River valley from my abode near Brattleboro, Vt., on the New Hampshire side of the valley, is the city of Claremont — a typical New England mill town with a population of 13,000, a regional hospital, a state college branch, a relatively sound local economy (unemployment rate of 6.0 percent), and until last Friday, a local daily newspaper with a circulation of about 7,800, the Eagle Times.

But on Thursday, Eagle Times owner and publisher Harvey Hill threw in the towel, after subsidizing losses in his operations to the tune of “seven figures”.  He gathered his employees and announced that Eagle Publications was filing for Chapter 7 bankruptcy (some were told by e-mail), that Friday’s edition of the paper would be its last, and that the company’s three weekly publications would not publish any more issues. Chapter 7 means the company is heading for liquidation, not reorganization.  (Note: links to the newspaper’s web site may not last much longer.)

Locally, the big concern is what will move into the void. At least one entrepreneur has a plan (after the jump). But more broadly, the big question is what the Claremont situation portends for small “community” newspapers — both weeklies and dailies — across the country.  The conventional wisdom has been that it’s primarily the big metropolitan newspapers that are in trouble; that papers in smaller markets remain profitable, if less so than in the past.

An Inland Press Association study cited by Alan Mutter, the Newsosaur, in several recent posts suggests that papers under 15,000 in circulation have seen revenue grow slightly from 2004 to 2008, while suffering a 64.8% drop in profits. But the study is based on data from only 120 newspapers of all sizes, and may not have a representative sample of papers in any particular size group.

Keep reading »

Adiós, Gannett Blog; where are the rest of the watchblogs?

By Martin Langeveld

You have to admit, Gannett Blog kind of jumped the shark.

When Jim Hopkins got started with it, Gannett Blog was a useful compendium of news, gossip, tips and analysis about the country’s largest newspaper publishing company, and occasionally he would uncover something nobody else had noticed, like CEO Craig Dubow’s self-serving direction of $40,000 in Gannett Foundation money to an endowed scholarship, in his and his wife’s names, at Western Carolina University.

But lately the site has degenerated into a rather odd mix of self promotion, beefcake, travelogue from Ibiza, more beefcake, and a countdown toward oblivion, which is slated for Friday.  Time’s running out! You have just two days left to comment!

Hopkins is redirecting his traffic to Gannettoid, which started up in December.  Gannettoid is not a blog; its content lacks clear dates, so it’s not clear that it will be as useful to Gannettoids as Gannett Blog was, at least before it succumbed to self-admiration and hype.  Until recently it lacked commenting, as well, but it has recently added a forum for discussion.  Maybe it will get around to RSS, also.

Not every major newspaper group is favored with a meta-site where employees and others can get the latest news, leaks, gossip and analysis on their favorite company.

MediaNews groupies can turn to MediaNews Monitor, operated by the Newspaper Guild-CWA, which doesn’t do much reporting of its own, but links to stories and blog posts published elsewhere. Keep reading »

If you were starting a news organization, where would you put your initial efforts?

By Martin Langeveld

I’m continuing my response to Phil Buckley’s excellent question: “If you were starting a news organization today, where would put your initial efforts?”  (Previously)

A from-scratch news organization today would, of course, be an online-first enterprise. That doesn’t rule out print as a niche byproduct, but print would not be among the “initial efforts.”

So let’s focus on digital strategies and tactics, beginning with the easier ones:

• Even if you plan a print spinoff, like a weekly newspaper (or even a daily), lead with your dot-com brand. The URL should be the biggest thing on your business cards, your sales materials, the sign on your offices — everything.
• Be clear about your geography. Every day I come upon local news sites with no indication what city or state they’re based in. (Where is this site published? Where in New Jersey is this one? Where in oil country is The Derrick? What’s so hard about adding “Lewiston, Maine,” “Newton, New Jersey,” or “Oil City, Pennsylvania”?) Remember that sites all over the world may link to your content. Tell those visitors where they’ve arrived.
• Make it easy for people to reach you: publish a clear, accessible directory under “Contact Us,” with everyone’s e-mail, phone extension, cell phone and Twitter handle.  Amazingly enough, some sites still omit “Contact Us” entirely. Others make it damned hard to find.

Keep reading »

Could strategic bankruptcies be needed to transform newspapers?

By Martin Langeveld

Continuing on a theme: I’ve been discussing the apparent disconnect between the quality of a news site’s design (as perceived and rated by professionals) and how much time people spend there; as well as the kinds of things that count more than design: reader engagement, interaction, community, personality — real life behind and around the content.

In a comment on the second post, Phil Buckley, whose commentary I had quoted and linked to, asked: “If you were starting a news organization today, where would put your initial efforts?”

I like this, because it’s the key question that all news organizations should be asking themselves.  If tackled correctly, it can be a transformative question, a way to self-disrupt the organization, a way to get through the wormhole of reinvention that newspapers are facing, and come out on the other side with a workable business model.

And indeed, forward-thinking news organizations are asking it. But in some news organizations (like Phil, I try to call them that instead of newspapers), the process of dealing with this question leads to an uncomfortable realization: the business model for news in the future is so radically different from today’s legacy newspaper business that there is no way to get from here to there without “a major restructuring event,” which is a euphemism for bankruptcy.

In other words, the viable business model they can glimpse — consisting, perhaps, of a weekend-only or twice-weekly printed byproduct of an online-first publishing operation — represents such a downsizing of the enterprise that it can’t possibly carry the company’s legacy debt load, so the only way to make the transition is first file Chapter 11.

Keep reading »

What counts more than design in attracting an online news audience?

By Martin Langeveld

As I laid out on Wednesday, there seems to be no discernible correlation between the overall quality of a web site and how much time readers spend there.

In the heydays of printed newspapers, we had some similar anomalies: newspapers with terrible designs (as judged by the designer elite) would have market penetrations equally strong as those following the latest design trends and gimmicks.

So what keeps eyeballs on sites, once they’ve landed there? Here are some recent views of interest:

Phil at 1918.com has a nice post building on Dave Brubeck’s breakout “Take Five”, raking over the coals the lackluster site of the News & Observer (once an internet pioneer), and agreeing with my conclusion that it’s not really about design: Keep reading »

Time-spent on newspaper sites: not predictable from rated quality

By Martin Langeveld

Much buzz last week about the release, via E&P, of Nielsen’s May time-spent ratings of the top US 30 newspaper sites, and the fact that 17 of them — more than half — showed a decline from year-earlier levels.

Now, any statistician will tell you not to read too much into one month’s data. It’s like drawing conclusions from one day’s fluctuation in the stock market. I’d bet the ratings were up, big time, in November and January on Presidential election and inauguration news. In May 2008, among other things, there was a lot of attention being paid to the final primaries and pre-convention maneuvering in the Presidential race — far more interesting news than we had last month. Clearly, that explains why time spent at Politico dropped about 4 minutes from last year’s 10 minutes, 21 seconds. Barack Obama clinched the nomination on June 3, 2008; Hillary Clinton threw in the towel on June 7 — so when the June 2009 ratings come out, we could see another lackluster month, unless traffic is boosted by events in Iran.

Also puzzling: in some cases, while time spent is plummeting, unique-visitor counts are soaring.  For example, the May data has time spent at NJ.com, the Star-Ledger’s site, dropping from 8 minutes and 25 seconds to 2 minutes and 28 seconds.  Meanwhile, however, according to compete.com, uniques at NJ.com have soared from 1.2 million in May 2008 to 2.7 million last month, with site visits zooming during that period from 4.2 million to 7.5 million.  Both UVs and visits show a pretty consistent uptrend especially since November.

What’s going on there?  Back in August, the site underwent a redesign promising “to make its wealth of in-depth content easier to find and use.”  Perhaps, too, there has been more local promotion of the site.  But all those extra eyeballs are obviously not sticking around very long.  And when investor-oriented 24/7 Wall Street rated the top US newspaper sites last week, it singled out NJ.com as deserving an F rating, with this description: Keep reading »

Metamorphosis for the Globe?

By Martin Langeveld

Imagine one morning, you wake up from your troubled dreams and find yourself transformed in your bed into a horrible vermin… No, no, wait! Imagine you wake up and find yourself holding the keys to the Boston Globe. And Arthur Sulzberger is standing beside your bed, ready to hand you $20 million or so if you will please, please, just take it off his hands.

This scenario could well play out — well, not quite like that of course — since the value of the paper is essentially zero. The Times Company has put it up for sale, and the question is really whether the buyer will pay some token sum to the Times, or whether the Times will subsidize the buyers by spotting them some working capital.

The folks nibbling at this opportunity (some of whom have been mentioned in the Globe and elsewhere) have to be asking themselves whether this white elephant of a newspaper can be made profitable once again. A key part of that question is whether Boston can remain a two-newspaper town.

My prediction is that, ironic as it may seem, Pat Purcell’s Boston Herald will be left as the only daily paper in Boston, and that the Globe will evolve into something different. That doesn’t mean the Herald wins, because in the long run, daily print is just not a sustainable business model anywhere. Or almost anywhere, if we want to hedge that bet a little.

If Denver, Tucson, Albuquerque and Seattle, all with populations in the same ballpark as Boston’s, couldn’t sustain two newspapers, then neither can Boston.

Keep reading »

Time Warner makes a small bet on hyperlocal news sites in Patch

By Martin Langeveld

We’re starting to see some dollars flowing into online-only news startups.

Patch, operator of six local sites in New Jersey, was purchased last week by Time Warner. Forbes reported the purchase price to be about $10 million.

Patch has announced plans for three more sites, in Connecticut, and clearly it has its sights set on many more. In an unrelated transaction, Time Warner is also buying a Boston-based events-based site called Going.

Earlier this year, Dallas-Fort Worth local site Pegasus News sold to Gap Communications, reputedly for $1.5 million. (The seller was Fisher Communications, which had bought Pegasus in 2007.)

Just as we’re seeing signs here and there that the financial logjam that created this recession is beginning to loosen up, perhaps transactions of this kind are signs that smart money (or at least money that thinks it’s smart) is putting some value on local news and information.

In the scheme of things, $10 million is not a big valuation, even in this post-recessionary epoch we’re embarking upon. And, with its limited geographic footprint, Pegasus is a long way from proving the fabled “scalability” so desirable in world of Web startups.

To begin with, Patch will have to start generating some revenue from advertising, which is not visible on its sites at this point. In fact, the “advertise” link on Patch goes to a pretty rudimentary information page suggesting a choice between banner ads and “self-service” ads.

Keep reading »

Extra, extra, read all about it on your iPhone: Mobile news is gaining fast

By Martin Langeveld

A convergence of factoids seems to point to something inevitable: the future of news delivery is on wireless devices, and those devices will be smartphones, much more than e-readers.

First, here’s data about the ubiquity of wireless as of the end of 2008, which is already nearly half a year ago, all from CTIA, “The Wireless Association” (what the initial actually stand for, I can’t figure out) (via Amy Gahran at Poynter):

— The U.S. has 270.3 million wireless subscribers, which is the equivalent of 87 percent of the entire population.  At the end of 2005 the penetration was just 69 percent.  It looks like only centenarians and some of the sub-teen population are still cellphone-less.

— 17.5 percent of households are wireless-only and have no “land line” (one of those retro-formations, like “analog watch”).  This is more than double the 2005 level of 8.4 percent.

— In 2008, we used our wireless phones for 2.2 trillion minutes, which is almost 50 percent more than during 2005.

— We sent 1 trillion SMS messages during 2008, which more than 10 times the 2005 level of 81 billion.

Now, at the cutting edge of all these wireless users are the smart-phone owners, and thanks to a study from gravitytank, we have some insights into them as well: Keep reading »

Selling online news content like airline seats: price discrimination maximizes revenue

By Martin Langeveld

The other day at RJI’s conference “From Gatekeeper to Information Valet,” at George Washington University, the final presenter on the formal schedule was Albert Sun, a University of Pennsylvania math and economics student who happens also to have a strong interest in journalism.

On his blog, back in March, Sun posted a remarkably confident essay entitled “Price discriminate! The economics of charging for online content,” complete with some nifty graphs.

Now, we know that from the newsroom to the board room, math and economics are not widely held skills.  So get out your old Samuelson and try to follow along.  This just entails supply and demand and a few special wrinkles, all from Econ 101.

Here are Sun’s PowerPoint slides from GWU:

If you like, you can also listen to his entire talk here (starting at 35:00) although you may need to let it load for a while to skip forward.   So let me take a stab at paraphrasing him (with slide numbers in parentheses), after the jump:

Keep reading »

Circlabs: a new entry in the options for sustaining journalism

By Martin Langeveld

Full disclosure right up front: I’m one of the partners launching the venture described herein.

This morning in Washington, D.C., Jeff Vander Clute and I announced the formation of CircLabs, a technology company based in Silicon Valley that’s building a new service to finance online news.  CircLabs has seed funding from the Donald W. Reynolds Journalism Institute at the University of Missouri.

The announcement was part of a one-day conference entitled “From Gatekeeper to Information Valet: Work Plans for Sustaining Journalism,” organized by Bill Densmore, another partner in the project along with Joe Bergeron, a Silicon Valley software engineer.

CircLabs plans a suite of services, the first of which is code-named “Circulate.”  Software development on Circulate is underway, and we anticipate launching the service during the second half of this year.

Circulate will address the challenges of how to increase traffic to media-affiliated websites, secure relationships with online users and enhance the value of news.  The Associated Press has been cooperating with us and is supportive of the service. We anticipate including a variety of strategic partners — unique investors necessary for continued development after the launch of Circulate.

Circulate is an outgrowth of research led by Bill Densmore, who was a 2008-2009 Reynolds Fellow at the Reynolds Journalism Institute at the University of Missouri.

Circulate will provide new and convenient ways for the Web to “come to” users, including social functionality that integrates, at their option, with their social network accounts.

Keep reading »

News entrepreneur boot camp seeks to launch 15 journalism ventures

By Martin Langeveld

I’m back from 5 days in Los Angeles at the Knight Digital Media Center News Entrepreneur Boot Camp, held at the University of Southern California under the auspices of USC Annenberg.  Long ago I lived in San Francisco for a year and never felt an earthquake, but for the occasion of our five days in L. A. there were two “moderate” quakes, 4.7 and 4.1 on the Richter scale.

More significantly, if not of earthshaking import, the boot camp met the expectations of participants to help them shape their visions into plausible business ventures.  As both a participant and an observer, my feeling was that the proceedings lent credence to the idea that going forward, successful journalism can happen not just in large organizations but in small, bootstrapped operations that target well-identified local, regional and national needs.

The businesses being formulated by the campers ranged from hyperlocal news sites to local, regional and national niche sites on politics, economic development, technology, entertainment, health, education and consumer issues.  Several of them underwent major revisions in their focus or funding options during the camp.

Keep reading »

QR code: tool for journalists?

By Martin Langeveld

Michael Josefowicz, self-styled “print evangelist” and a frequent commenter here at Nieman Journalism Lab, has a new post at PBS’s MediaShift that will bring you up to date on QR codes, which look to be “CueCat done right.”

QR stands for “quick response.” QR codes are two-dimensional scanning code blocks that can be placed in print ads. Readers scan the code with their Web-enabled cell phone and are instantly connected with Web content relevant to the ad. Marketers get an instant read on how well their ad is working and how much of their Web traffic is print-driven. The codes are fairly common in Japan and are beginning to show up in European publications. As usual these days, we’ll see this in the U.S. somewhere down the road.

QR codes can be used by journalists as well — they can be included in a print story to connect readers with background or detail, or to provide feedback to reporters and editors.  The QR responses can also help sort out what kinds of readers like what kinds of content. Josefowicz: Keep reading »

Maybe Google needs newspapers

By Martin Langeveld

Google has steadily and politely resisted suggestions from various quarters that since it has so much cash and clout, it should just rescue the newspaper business.  Wisely, they have stuck with the mantra that they are out to organize information, not to publish content.

But this week we hear that Google is in negotiations with the New York Times and the Washington Post (and, one assumes, possibly others) “about improved ways of creating and presenting news online.” And Richard Siklos at Fortune reports that an intermediary tried to interest Google in “buying the Times.”

Nicholas Carlson at Silicon Valley Insider mentions a couple of possible ingredients in the Times/Google talks:

• A potential agreement in which any time Google’s search crawlers find a Web site carrying New York Times content and Google ads, Google would split the revenue it gets from those ads with the Times.
• Google would somehow help the New York Times actually embed ads within its text so that when blogs or other Web sites use that text, the ads go with it. We have no idea how Google and the Times would do this. Neither does our source.

The latter is certainly something that a news organization allowing fairly free use of its content via an API would want to be exploring.

Two recent blog posts offer other possible explanations for the schmoozing between Google, Times and WaPo execs:

Keep reading »

Wolfram Alpha and other ways to enhance database journalism

By Martin Langeveld

Participants at Matt Thompson’s recent gathering on the Future of Context discussed (among many other things) database journalism — city crime maps, for example — and agreed that they can actually be a disservice to readers.  The problem comes in maintaining the data: a reporter or team gathers data, analyzes it, creates interesting presentation graphics — and then often fails to maintain the data, so that it is quickly out of date, irrelevant, and even misleading. As well, a map presented without context or interpretation can lead to erroneous conclusions by readers.

As news organizations look to add high-value content that might form the core of paid-content sections for their sites, compilations and analysis of public (but not necessarily online) information is one of the areas they’re exploring.  (See, for example, Steve Buttry’s laundry list of data the Cedar Rapids Gazette is looking to incorporate on its sites.)  As the data imported to the site grows, so does the maintenance issue.

One way out of this is the way the Raleign (N.C.) News & Observer handles it: their crime maps are set up to pull information directly and continuously from law enforcement databases, so that the maps are always up-to-date.  The N&O uses the same approach with many of the other data topics in its impressive Fact Finder resource.

Another resource that may prove useful to database journalism is Wolfram Alpha, which is set to launch on May 18.  Some have heralded its advent as potentially “changing the internet forever”:

Wolfram Alpha will not only give a straight answer to questions such as “how high is Mount Everest?”, but it will also produce a neat page of related information — all properly sourced — such as geographical location and nearby towns, and other mountains, complete with graphs and charts.

The real innovation, however, is in its ability to work things out “on the fly,” according to its British inventor, Dr. Stephen Wolfram. If you ask it to compare the height of Mount Everest to the length of the Golden Gate Bridge, it will tell you. Or ask what the weather was like in London on the day John F. Kennedy was assassinated, it will cross-check and provide the answer. Ask it about D sharp major, it will play the scale. Type in “10 flips for four heads” and it will guess that you need to know the probability of coin-tossing. If you want to know when the next solar eclipse over Chicago is, or the exact current location of the International Space Station, it can work it out.

To get a better sense of what Wolfram Alpha does, have a look at its inventor, Dr. Stephen Wolfram, demonstrating a series of queries to the system.

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Boston Globe drama: What’s next?

By Martin Langeveld

In the high-stakes poker game to at least erase the Boston Globe’s reported $85 million annual operating loss and get to breakeven, it looks like management has won the first few hands.  Following deals with several other unions, the Globe and the Newspaper Guild reached a settlement in the wee hours this morning.  All of the deals need to be ratified, but assuming that happens, what’s next?

The employee concessions so far will only bring the deficit down to $65 million, which leaves a long way to go.  Presumably, the restructured union contracts will provide management the flexibility it needs to pursue strategies that not only close the gap, but reshape the business into a news enterprise ready for a new age.

Here are some thoughts on what else might be coming down the pike for the Globe of tomorrow to survive and be profitable:
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A confab with Matt Thompson: Noodling the future of context

By Martin Langeveld

Last week I had the pleasure of participating in a one-day think tank in Washington, DC, called “The Future of Context.”   It was organized by Matt Thompson, a 2008-2009 Donald W. Reynolds Fellow at the Reynolds Journalism Institute at the University of Missouri, where his focus was on “Wikipedia-ing the news.”  During the academic year, he blogged his project at Newsless, and out of his work came Columbia Tomorrow, a just-launched site that aims to provide contextual environment for news about economic development in and around Columbia, Misouri.

True to the “Future of Context” title, and nurtured by Matt’s excellent skills in moderating a discussion, much of the D.C. discussion was oriented toward discovering the shape of news in context to come.  I’ll leave it to Matt to report (in context!) the full proceedings of the confab, but let me highlight a few insights that struck me as particularly valuable (attributed to the participants who offered them where I recorded it in my notes , but unfortunately I failed to do that in each instance):

• Bounded news sites will be less important than news networks, which can surround topics in a fluid way.  Individual news sites can add curated news networks, and add value with features like “what’s changed since you last checked in.”
• Creating such topical networks is easier for big questions, harder for long-tail topics.
• The right technology and user interfaces can incorporate sourcing material and make it relevant to the story, and can transform traditional sourcing networks into crowdsourced networks — a way to build living stories.  (Phil Bennett, Washington Post)
• Commenting needs to evolve into conversation.  This can be done by having reporters and editors step in, add context, ask questions, and moderate the discussion flow.

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Complete Community Connection: more reinvention in Cedar Rapids

By Martin Langeveld

You can’t really call it a blog post when the printout stretches to 33 single-spaced pages, but it’s highly recommended reading:   Steve Buttry, the “information content conductor” of Gazette Communications in Cedar Rapids, Iowa, has published “A blueprint for the Complete Community Connection” as a nine-parter on his blog.  More conveniently, you can download the whole thing at Scribd (very simple registration required.)

In his previous incarnation at the American Press Institute, Buttry worked on the Newspaper Next project, which urged newspapers to adopt disruptive innovation as a strategy, rather than being disruptively innovated against.  (Newspaper Next is now apparently dormant — why is it that various efforts to start up innovation engines to help the industry peter out after a while?)  Buttry came up with the first version of the Complete Community Connection concept (C3 for short) at API; Gazette Communications, willing to try out-of the-box ideas (perhaps because it is led by an executive with a non-news background, Chuck Peters), has become the laboratory for testing his ideas.

In a nutshell, C3 envisions that Gazette, or any company adopting the concept, will become what I would call “community glue”:

Our company will provide an interactive, well-organized, easily searched, ever-growing, always updated wealth of community news,  information and opportunities on multiple platforms. We need to become the connection to everything people and businesses need to know and do to live and do business in Eastern Iowa. We need to change from producing new material for one-day consumption in the print product or half-hour consumption in the broadcast product to producing new content for this growing community network of information and opportunities.

Ultimately, in Buttry’s view, this includes finding ways to “connect the business with the customer and collect the money, taking a reasonable cut for ourselves.”  He outlines a number of “community content opportunities”: Keep reading »