New newspaper tycoons: It’s worse than we thought
New owners of newspapers — folks like Sam Zell, who made his fortune in real estate — are now saying the outlook for the papers they bought is worse than they expected.
David Carr writes:
These are all smart businesspeople, with significant success in other endeavors, who took a hard look at the wave-tossed publishing sector and appointed themselves as life savers. And very soon after jumping in, they too began foundering in the tall waves.
A lot of these deals were done in the last two years, when the economy was still good despite the troubles in the newspaper biz. With the economy headed downhill, the systemic problems with newspapers will get amplified.
However, what continues to be missing from this whole discussion about the business of newspapers is the lack of innovation in newspaper business models (not in newsrooms, which have been trying new things like crazy the last few years).
Chris O’Brien, who has worked for newspapers as a business reporter for years, gets it right:
I see tremendous energy going in to breaking new ground in gathering news, telling stories, and creating community. What I don’t see is an equivalent amount of innovation occurring around the business models that will support journalism going forward. What I tend to see, over and over, is people experimenting wildly on the content side, and then falling back on the same old business model: Selling ads.
This model is dying.
I don’t know that I agree that selling ads, per se, is a dying business model. It’s what Google is based on after all (however, unlike newspapers, Google has produced a number of innovations in advertising). But basically, that’s right. There is lots of experimentation going on in the nation’s shrinking newsrooms, not so much in the other departments.
