By Joel Thurtell
I heard a good one the other day. The Detroit Free Press is so frantic to be Internet savvy that they’re reorganizing their Web approach.
That would make it the 11,000th time.
The link between traditional newsroom and Web operations is to be called the “comm desk,” I’m told.
“Comm’ for “communications,” I guessed, figuring the paper probably needs to interface Web and print staff better.
No, I was told, “comm” means something else.
I forget what.
This happens too often: It’s like changing the make-up on a model while leaving the basics the same. Plus ca change, etc.
Actually, I heard again that there is some monstrously amazing change in the Free Press being planned. I’ve reported a couple times the rumor that the papers’ (this would include the Detroit News) print editions could be reduced to as few as three times a week. And they would come out in tabloid form.
But inside, veteran Freepsters are aghast. They’ve lost 13 percent of their staff in about eight months. Nor are they alone. Newspapers across the country are being hit hard by a combination of bad economics and the Internet juggernaut. Readers are disappearing from newspaper subscription lists as they take up reading their favorite papers online, or find better news in wholly-Web oriented publications. And the papers are losing advertising at an astounding rate.
The Free Press and News’ parent, Gannett, is cutting 1,000 jobs nationwide, according to MarketWatch.
As a result of the firings, which amount to 3 percent of the company’s staff nationwide, Gannett’s stock rose 11 percent Aug. 14 to $19.54.
Gannett saw its profits fall by 36 percent in the second quarter, compared to a year ago, according to the Associated Press.
But the worst news came from Morningstar, which (according to Editior & Publisher) reported August 18 that although Gannett’s stock has declined 52 percent in the past year, the nation’s largest newspaper chain will fall much further. Morningstar said Gannett’s stock is over-rated in the roughly $20 range and its’s fair value should be $12 a share.
Gannett wasn’t the only newspaper company devalued by Morningstar, which pegged the New York Times at $10, though it was trading at about $14. Hardest hit was McClatchy, which got a bellyache after swallowing media giant Knight-Ridder by taking on $2.5 billion in debt. Morningstar valued McClatchy stock at $2 a share, though it was trading at $4.26.
Morningstar expects Gannett’s revenues to decline by 5 percent a year over the next five years.
Think about that — twenty five percent!
Don’t be surprised if we hear of more buyouts or even layoffs here in Detroit.
And maybe we shouldn’t be shocked if we only find the Free Press in the yellow tube every other day.
Drop me a line at joelthurtell(at)gmail.com
