Date: Dec. 16, 2008
To: Detroit Media Partnership and Detroit Free Press team members
From: Dave Hunke
Like so many businesses today, newspapers are undergoing enormous change. Advertising, including classified advertising, is down. Costs are up. We are losing money. In the past decade, we have witnessed the impact technology has had on our ability to report and distribute information. This has led to the steady growth in traffic to our Web sites, but it has also contributed to declines in our print circulation.
Throughout this time, your hard work, dedication and perseverance has been greatly appreciated, but, there is much more we must do to adapt to the changing ways readers consume news and information.
Advertising revenues have declined sharply for paid media. As we look ahead to a new year, this downturn may continue in Michigan. For many years, we have reacted responsibly and reduced our operating expenses. However, budget cuts are a short term solution and we must position ourselves for growth. In order to secure our future as the leading sources of local news and information in southeast Michigan, significant changes must be made.We absolutely believe in the future of newspapers seven days a week, but we cannot live in the past. In the first quarter of 2009, we will launch a revolutionary new business model that maintains the voices of our two great newspapers. Changes due to occur include expanding digital information channels as markets develop and consumers direct. We must build on the success of our deep, rich and diverse niche sites like Metro Mix, MomsLikeMe.com, HighSchoolSports.net and COSI. These are just a sampling of new solutions driven by and for users who may not be traditional newspaper readers.
Home delivery will be limited to Thursdays, Fridays and Sundays. Single copy editions will be available seven days a week and re-designed to be more dynamic and compelling. Sharply improved electronic editions of each newspaper will be available online every day to all subscribers. These e-editions allow users to modify type sizes, interact with advertising messages, and search specific content and more.
Many alternatives were reviewed during our planning process, and this is the plan that best positions our company for long term vitality. These changes will impact many areas of our operations, and we will be reducing staff levels.
Over the next several days you will have the opportunity to attend one of many meetings with me and Susie Ellwood. These meetings will share insight into the planning process and allow you the opportunity to ask questions about this announcement. Updates will also be posted on the company’s intranet.
This decision reflects the reality of these daunting economic times and the changing needs of our customers. We must focus more on digital delivery methods to preserve our position as Michigan’s information leader.
Now is the time to engage audiences on their terms. With your support, we will continue to serve our readers and advertisers and grow our business.
[Image: today's Detroit News, Newseum]
I'm not sure I agree with this change or in the manner in which we came to this crossroads. But, just as a defeated political candidate might say, let's embrace this and move forward, for everyone's best interest. We can't change the decision but we can have some effect on the outcome.
ReplyDeleteSigned,
a hopelessly romantic newspaper fan and former newspaper (not Gannett) employee
Unanswered questions: (1) who gets the insert business on the other days? (2) does this play into the hands of competitors who still publish seven days? (3) will paid-in-advance customers be extended automatically or given an opt-out? (4)what happens to the Times and WSJ daily deliveries now being made by JOA drivers? (5) can the JOA find and keep a delivery force at the much-reduced income? (6 what aspects of this, if any, are the unions able to block?
ReplyDelete