Revenue at newspapers has dropped so rapidly that companies in the industry cannot cut costs, even reporters, fast enough. The trouble is that too few reporters means too little news.
Five newspapers are banding together to share news. It may be the future of keeping editorial costs down and may buy a little time for large chains like Gannett (NYSE: GCI). According toThe New York Times, "The consortium is made up of The Daily News of New York; The Star-Ledger, based in Newark; The Buffalo News; The Record, based in Hackensack, N.J.; and The Times Union of Albany." The Daily News and Star-Ledger are among the largest papers in the country.
For big operators of daily papers, sharing reporting resources may be the only way out of high reporting costs. For Gannett, which has suffered a significant loss in its share price, down from a 52-week high of almost $32 to a recent low of $4, combining news gathering operations among its regional local papers may be its new way of doing business. Having a number of bureaus in Washington to cover politics for individual papers is a practice that is already ending. The same is true with offices outside the U.S.
Will newspapers lose their individuality? Absolutely. But, for newspaper chains it is better than shutting properties down. Gannett may have found an important model for saving money.
Douglas A. McIntyre is an editor at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
2-20-2009 @ 10:27AM
scott said...
Gannett's problem is that folks who have no clue about jounalism are in management positions.
4-14-2009 @ 7:02PM
trysson said...
Editors that do have a clue about journalism do not know squat about running a business. Thank goodness for Gannett's great management team and its responsive action to market conditions. Editors can write well, and editors can spell out all the negatives while they ignore the real issues. The ex-editors of Gannett just failed to realize which side of the toast has the buttered. It is not the news side, but the add side, stupid.