Tuesday, December 16, 2008

In historic move, Detroit ends most home delivery; Hunke: 'A day of reckoning coming for newspapers'

Confronting an economic meltdown in one of its biggest markets, Gannett today confirmed that the Detroit Free Press and The Detroit News this spring will sharply curtail home delivery, to only Thursdays, Fridays and Sundays -- the heaviest days for advertising.

"There is a day of reckoning coming for newspapers, which in my mind don’t change and change rapidly," Detroit Media Partnership CEO Dave Hunke (left) told the Freep in an interview, before today's widely anticipated announcement. "That is a way of life that is going to disappear (for some newspapers) as early as this coming year."

Hunke told the paper the changes would lead to a reduction of about 9% of the Detroit Media Partnership work force, now around 2,100 people. The partnership publishes, distributes and sells advertising for both the Free Press and News under their 19-year-old joint operating agreement, but the papers have independent news-gathering staffs.

With these approximately 200 layoffs, Gannett has now eliminated 2,178 newspaper jobs in this month's mass downsizing. (Hunke memo to employees.)

In initial reader accounts, Anonymous@10:18 a.m. reports up to 200 layoffs are planned. Another reader, Anonymous@10:12 a.m., says top Detroit Free Press Editor Paul Anger has "just said that he expects home deliveries to fall by 25%. He is casting this plan as a way to save newsroom jobs and the integrity of the newspaper.''

Official announcements are expected for the Freep, here; for The Detroit News, here.

Meanwhile, I'm told that some of Gannett's big shots are in town for today's historic event. Employees got the news starting at 9:30 a.m. ET, followed by an 11 a.m. press conference that's now available as an online video.

Beat the press conference rush!
Gannett's Detroit Media Partnership joint operating agency is announcing this morning that it is abandoning home delivery of the city's two dailies on most days. The Detroit Free Press and The Detroit News would become the biggest U.S. newspapers so far to move this close to all-digital distribution.

Don't be shy about posting news as it happens, in the comments section, below. E-mail via gannettblog[at]gmail[dot-com]; see Tipsters Anonymous Policy in the green sidebar, upper right.

[Image: today's Freep, Newseum]

83 comments:

  1. How many minutes into the announcment before one of the fools in charge says something like "this will benefit our readers and advertisers."

    What a joke. Just fold now.

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  2. Detroit Media is being courageous. The buggy whip factories that didn't change their product to driving gloves are all gone today. Maybe Detroit Media is stumbling toward the answer. I prefer a newspaper on paper, because I learned to read and think that way. I can't define ahead of time all of what will interest me.
    What if DM were to distribute a proprietary version of something like Amazon's e-book reader to its subscribers, and somehow e-mail the paper's contents to the e-books, so that people could have the advantage of a physical thing to carry around, and the advantage of quick, almost costless delivery.

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  3. They will definitely try to pump this up as a great thing for readers, but also sneak in there the cheap gns line about economic blah, blah. They'll cover both sides.

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  4. I hear this is only step one.

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  5. So we're supposed to rely on the TV stations to do timely, in-depth reporting? Both the Fox and NBC affiliates in Detroit are just NOW reporting this. Breaking news, my butt. You've cited Metro Times more than once, maybe they can become a daily paid product...

    "In order to serve you better, we have reduced our content and kept the price at the same level. This was based on consumer demand"

    And Bill Diem--I don't want to haul a Kindle into the bathroom or worry about charging it. I want a PAPER!!! I want to see 5 stories and some ads on a page, and to encounter stories unexpectedly, or see an ad for an interesting store or restaurant without specifically searching for it. Websites don't encourage that behavior.

    Sure there are links--but I think the physical act of clicking works much differently than when a reader scans a page and lights upon something.

    Ultimately it won't make any difference. This country collectively is eliminating jobs at an astounding clip and no one seems to care--today's poll says most Americans oppose the automaker bailout and don't believe it will affect them if they go under. The ripple effect will be cataclysmic. There won't be enough people left to sustain a consumer economy and god knows what will happen.

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  6. Don't disagree with any sentiments here... but keep in mind the rumor is that home deliver is going to three days. The print edition will still be available everyday at the newsstand.

    I know it's not the same. And we'll find out if 9:30 whether that is accurate.

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  7. I'll tell you this much - I hate reading news on-line. I like a newspaper I can fold. I also like to run across things I don't know rather than search for what I want to find out about.

    The internet is great for entertain ment and research but I loathe it for news. And don't send me some damn reader, either!!

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  8. The Detroit Free Press will be streaming the news conference live on its website at 11 a.m. EST

    http://www.freep.com/

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  9. About time. After losing $22M last year, the rest of Gannettland applauds this long, long overdue decision.

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  10. Transitioning to all-electronic distribution would make sense if they could figure out to how to sufficiently monetize (sorry for management lingo) such services effectively. And if they'd freaking keep good reporters on board.

    Yes, newspapers have their place and I love the smell of print in the morning. But reality is reality.

    ~ A note from a 27-year-old who no doubt has pissed off his elders by saying this

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  11. Is there a twitter hashtag for 9:30 news?

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  12. I wonder how they will keep the delivery force intact? In theory the carriers will be losing 57% of their income by only delivering 3 days per week instead of 7.

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  13. It's going to be interesting to see what the change in frequency means in $ to readers, carriers and the company. Got a hunch the bean counters have this figured out to GCI's advantage.

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  14. pretty amazing...both newspapers have avoided the story.

    scooped by every media outlet on their own story

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  15. This comment has been removed by the author.

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  16. Keep in mind their carriers deliver other products.

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  17. The fun part will be when Detroit (Gannett) brags of all the benefits. Readers are much happier, advertisers love the new approach, carriers appreciate the extra free time, single copy sales jumped 10 fold...

    Corporate wizards and Publishers who haven't had a good idea in years will finally have an original idea of their own- Copy Detroit.

    My guess is that a detailed report on the success of the program should start streaming in by the end of the week to avoid reality.

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  18. For most carriers delivering the paper is a second or third job. In many cases finding carrier to deliver 3 days a week is an easier task because many who want to supplement income don't want to work 7 days a week.

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  19. Regarding what Gannett has in store for Detroit's newspapers... I can't help but speculate what a boon this will be to smaller rags that will no doubt fill the void Gannett is creating by not publishing on certain days. People will want their newspapers, but it won't be Gannett's newspapers!

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  20. Meeting still going on ... Paul Anger, the chief editor of the Free Press, just announced that both Detroit papers would deliver three days a week. No layoffs in the newsroom for now. In other departments, about 200 employees - or 9% of the staff - would be laid off. The savings, he said, of cutting delivery would be in the tens of millions.

    "If we don't do this, we face a slow death," he said. "We are not making money."

    The mood is somber.

    His projections would be 200,000 single copies sold when there is no delivery.

    More news later ...

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  21. The Free Press will soon open this link to describe what this means to subscribers: www.freep.com/transform. It's not an active link as of 10 a.m.

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  22. Bill Diem's comment reflects my won preference: I prefer a newspaper on paper, because I learned to read and think that way. I can't define ahead of time all of what will interest me.
    I've found that the Internet browser/searchers who just read what they're interested in are doomed to failure in games of trivial pursuit, when pitted against a newspaper subscriber who reads it all.

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  23. Paul Anger just said that he expects home deliveries to fall by 25%. He is casting this plan as a way to save newsroom jobs and the integrity of the newspaper.

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  24. 10:00 AM: In other departments, about 200 employees - or 9% of the staff - would be laid off.
    The above is THE REAL Ripple6 effect. Do you know how many mothers, fathers, sisters, brothers, aunts, uncles, nieces and nephews, extended family members of those 200 being laid off, only subscribed because that member of their family worked there? Now think in terms of them all, canceling their subscriptions because that family member no longer works there. Some only subscribed because that certain family member worked there. The above can be applied to all the Gannett Newspapers no matter where they might be! There you have it - THE REAL RIPPLE6 effect.

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  25. Paul Anger: This plan was by the Free Press, not Gannett. "This was not dictated to us or suggested in any way. This was a plan by the Detroit Newspaper Partnership."

    He acknowledged that Gannett was "very interested" when it heard about the plan. But he maintains this was all a plan by the DNP.

    He added that other undisclosed publishers have been inquiring about using this plan as a model. "There are a lot of people all around this country interested in this."

    When pressed about newsroom layoffs in the near future, he did not deny such a possibility, saying it depends on how the plan shakes out and Michigan's dismal economy.

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  26. 9:36 -- Home Delivery here.

    Most carriers DO NOT deliver other publications. They get $0.13 to deliver each paper Mon through Sat and $0.23 on Sunday; they pay for their own bags $0.008 Per Bag--1 Cent); they pay their own gas & vehicle maintainence and they get TIPS (which are dwindling rapidly because of the economy).

    I don't think we can last long if carriers say "It Ain't Worth It Anymore"; and what I'm hearing is more & more long-term (7+Year) carriers saying just that.

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  27. Anyone else catch the skybox at the top of the News' front page today?

    "Bad Company"

    How appropriate. By eliminating home delivery at any level, you're effectively giving your most loyal customers the finger. Of course, the newspaper business has been doing this for years. It hasn't been about the readers for a very long time. I just wish someone at the top would stand up and actually say that.

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  28. That's a great point 10:38. The subscribers are the ones who actively seek and enjoy the newspaper. I can't imagine they will want to go to a newsstand to pick up a product made by people who so easily discount them.

    It's one thing to put the resources online, but readers there don't show value for content by paying for it. So you cater to those (and where the ad model can't support it) and spurn the coupon clippers.

    It seems to me papers are gutting actual readership to chase virtual readers. Not sure that's a smart stratesy, short or long term.

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  29. I'm hearing all the journalists had to check their shoes at the front door!

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  30. The story about the changes at the Free Press are posted on its site: http://freep.com/article/20081216/FREEPRESS/81216032. It's casted as news story but reads nothing like objective news. Shame on the Free Press for failing to write objectively about this. A reporter should have written it without input from the publisher or the editors involved. It's tantamount to allowing GM or Ford to write a story about their restructuring.

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  31. Letter from publisher to employees:

    Date: December 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.

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  32. More from Hunke to staff:

    General
    Frequently Asked Questions

    Q. What changes are being made to the newspapers? To freep.com and detnews.com?

    A. Home delivery will be available on Thursdays, Fridays and Sundays. Subscribers will have access to an electronic “e-edition” seven days a week as part of their subscription.
    This “e-edition” allows you to see an exact copy of the newspaper – including all the advertising – on your computer. It can be printed, and will include many additional features such as the ability to change print size and search for specific content relevant to you. You can access these editions for free by going to www.edetroitnews.com and www.digitalfreepress.com.

    On Thursdays, Fridays and Sundays, retail outlets and coin boxes will sell the same editions
    home delivery subscribers receive. The other four days – Monday through Wednesday,
    and Saturday – we will produce innovative, newly-designed single copy editions.
    Both newspapers are finalizing their plans with input from readers. They will be available at
    18,000 stores and coin boxes across Michigan in the first quarter of 2009.

    Q. Why is the change being made?

    A. Economics. Advertising, including classified, is down. Costs are up. We are changing our model in order to survive in a world that has changed. We are listening to readers and advertisers, and responding to their changing habits and needs. The future of news and information delivery is electronic, and we are focusing our considerable resources – and Michigan’s largest news-gathering staffs – on serving those changing needs, while also maintaining seven day newspapers.

    Q. Why is this change being announced so far in advance?

    A. These two newspapers are a vital part of our community and an important part of our readers’ daily lives. As we finalize plans during the weeks ahead, we wanted to give readers, advertisers and community leaders the opportunity to share their thoughts and ideas.

    Go to www.freep.com/transform or www.detnews.com/transform for more information and to share your ideas.

    Q. When will the changes to the newspapers and Web sites take place?

    A. In the first quarter of 2009.

    Q. What reaction do you expect from advertisers? Have you received any indication that they are cutting back or adding to their schedules?

    A. In anticipation of this change we spoke with national and local advertisers. Most applauded this transformative effort, which puts us in the forefront of our industry’s plans to meet the changing needs of our customers.

    Q. Why were Thursday, Friday and Sunday selected as the days for home delivery?

    A. Sunday is currently our largest newspaper of the week, with the highest readership. On Thursday and Friday, readers are increasingly using the newspapers to plan their weekends, and the Play and My Time entertainment sections are popular because of this trend. As we currently operate, we also know from spending patterns and from discussions with advertisers that the widest distribution on these days is an important component of their sales and promotional strategies.


    Q. Why weren’t the prices of home delivery increased to keep seven-day delivery?

    A. Experience and reader feedback tell us that many readers would cancel their subscriptions if prices were raised, and there would not have been enough revenue to support our vast seven-day home delivery operations. In the past, advertising revenue has been strong enough to subsidize home delivery costs. This is no longer the case, and we do not see this changing in the future.

    Q. What will the newly-designed print editions be like?

    This is still a work in progress. Each newspaper will share more with you as we approach implementing these changes. In the meantime, go to www.freep.com/transform and www.detnews.com/transform for status reports – and to provide your own thoughts and ideas.

    Q. Will the changes affect the Detroit Free Press and The Detroit News on the same timeline?

    A. Yes.

    Q. How many Detroit Media Partnership employees will be affected by these changes? And which departments will be hit the hardest?

    A. We are reviewing positions and staffing for 2009. These have not been finalized and will be subject to negotiations with the unions where appropriate.

    Q. Is this a way of shutting down one newspaper?

    A. Detroit continues to be a great town for newspapers. This plan ensures that two, vibrant and distinct newspaper voices will continue.

    Q. How will these changes affect readership of the Detroit Free Press and The Detroit News?

    A. Readership of printed newspapers across the country has for years been declining and Detroit is no different. Since ’02, the print editions of the Detroit Free Press and The Detroit News have lost 19% and 22% of their readership respectively. These changes will more directly address the way audiences choose to receive news and information. Providing more robust digital options will ensure that the total readership of the Free Press and News – in all formats – will grow.

    Q. Who decided that these are the changes that should be made?

    A. The Detroit Media Partnership leadership team made the non-editorial decisions. Each newsroom independently made their own decisions about what changes to make.

    Q. What about people who don’t have access to the Internet?

    A. For those who do not have access to the Internet, there are more than 18,000 convenient locations throughout Michigan where people can buy the Detroit Free Press and The Detroit News seven days a week. Some of these locations include Kroger, Meijer, Speedway, CVS, Wal-greens, 7-11 and stores like them. The circulation department is always looking for new locations and welcomes your suggestions.

    Mail subscription packages are also available on Monday, Tuesday, Wednesday and Saturday.

    Q. Will the Detroit Media Partnership as well as the Detroit Free Press and The Detroit News continue their active support of community organizations?

    A. Without a doubt. Each organization is proud to serve the needs of Southeastern Michigan and will continue to inform, educate, donate and support the many worthy causes and charities in our communities.

    Q. My carrier has been delivering my newspaper(s) for xx years; does this mean carriers will be out of work?

    A. We will be offering new contracts to our carriers for their consideration.

    Q. What do these changes mean to the Detroit Media Partnership’s location in Sterling Heights?

    A. The Sterling Heights Operations Facility is one of the most modern printing plants in the United States and will continue to serve as the production and distribution hub of our operations.

    Q. Is this a temporary change? Will seven-day home delivery be re-introduced?

    A. This is not a temporary change. Media habits have transformed and now demand a faster and multi-channel distribution model.

    Q. How will these changes affect the Detroit Free Press’ and The Detroit News’ ability to attract and retain top reporting and management talent?

    A. These changes put us at the head of the information era. This bold transformation will ensure that top quality journalism continues in two independent and distinct newspapers and will be a driving force in attracting new talent. Without these changes we could not sustain these newspapers.

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  33. "The Digital Future is now."

    Hopefully they shift resources to their website today, since that Free Press story has no ads running on it.

    A quick tweak to one file in their root directory would fix that. But who needs online-savvy people?

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  34. I find it interesting that in our meetings we repeatedly asked if this will create more job loss, buyouts, layoffs, etc. We were told 'that has yet to be determined' - each time someone asked. And now I can listen to the news or read this blog and come to find it has been determinded..9%.
    Thanks for the honesty, I'm now newly excited to support this new supposed innovative plan.

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  35. I think this is a courageous plan that saves the newspaper. Yes, saves the newspaper's daily edition. Ask yourself: what is the alternative but more cutbacks in space, more layoffs and less space for news. This ensures there will be a daily newspaper. As for readers, they can just call up the newspaper and read it, rather than getting it from their front lawns.

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  36. No, 11:37 a.m., this is a creative move that will save BOTH newspaperS. Please note the plural. And it means that the Freep and News are now competing on a much more even playing field. The new model wipes out the Freep's totally unearned home delivery circulation advantage (it was given the monopoly on morning home delivery from 1989 to 2005) for four days of the week. The News sells nearly as many papers on the newsstand as the Freep, and its Web site gets as many hits and visitors as the Freep's site.
    The staffs of the paper are nearly the same in size (255 for Freep vs. 225 for the News.) It's a whole new digitially driven world!

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  37. What is happening to the Wednesday preprint advertisers? Are the moving them all to TMC?

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  38. Awesome decision.

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  39. Here is a link to the Detroit News' story about the changes:

    http://detnews.com/apps/pbcs.dll/article?AID=/20081216/METRO/812160419

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  40. This will further deepen the digital divide. What about readers who don't have - or who cannot afford - broadband.

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  41. In the economic atmosphere that is Detroit, this is really forward thinking.

    It would be both frightening and exciting to be a part of it.

    We'll all be watching, of course, and good luck!

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  42. Yawn. Read it here first last week. This is really old news.

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  43. Regarding this in the FAQ: This bold transformation will ensure that top quality journalism continues in two independent and distinct newspapers and will be a driving force in attracting new talent.

    Attracting new talent? Are they freakin' crazy?!

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  44. What's going to happen to all of us subscribers that have prepaid for a year of home delivery?

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  45. 12:45 - You will probably get a credit that extends what home delivery you have left over the life of what you paid. You paid - for example, for 365 papers. You will still get 365 papers, but that will expand over the course of provide Thursday, Friday and Sunday - probably for about two and half years.

    What this means is that the circulation department will be going a year and half now without any new revenue! Wow!

    What idiots they have there.

    I would ask for a refund if I were you.... but good luck with that.

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  46. Hey, 11:37, how does this eliminate the Freep's circ advantage? They get the ENTIRE SUNDAY EDITION ALONE. Game-set-match.

    It was a real treat to see editor Anger trot out "senior" ME Jeff Taylor, a.k.a. The Golden Boy, who has to be dragged kicking and screaming to do any kind of alternative journalism, as a "key part of the team."

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  47. 12:55, the Freep delivers Sunday alone already. The dual paper ended some time ago.

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  48. OK,1:06, "is getting" should have been "has."

    But the point is still valid. The Freep and News don't have "equal footing" regarding circulation.

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  49. Jim, I just want to congratulate you for scooping everybody on one of the biggest news stories in print journalism history.

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  50. Hey, 12:55, 1:06 and 1:10 p.m.: The all-Freep Sunday could be changing quite soon. Here is a q+a distributed by management at the Detroit News to staffers:

    Q: Will we have a presence in the Sunday paper?
    A: That has not been determined, but those negotiations are continuing.

    And as the biz moves completely to digital, the fact that both papers' Web sites have the same number of hits and visitors will become WAY more important than the anemic Sunday paper currently produced by the Free Press. (Some days, the Sunday Free Press has fewer pages than than many Friday editions of other big city papers.)
    And the single-copy comparison is instructive: Freep: 97,000; News: 81,000

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  51. Sorry guys, but all of the whining about how YOU like a print newspaper doesn't help one bit. If everyone felt the way you do, this wouldn't be happening. They don't feel that way - most readers read online - maybe it's time we all grow up a little, move outside of ourselves and try to fix this thing before it is too late?

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  52. They read online AT WORK on their employer's time. Not at home. They don't read the ads. They run the search for sports, blood on the highway, rape and murder.
    Lord, help us all ...

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  53. My family members have already said thhey are canceling thier subscription.

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  54. Here's a FAQ sent to Detroit News staffers:

    Staff Frequently Asked Questions

    Q: Why are we doing this?
    A: Two reasons:

    * First, we’re all aware of the difficult economic conditions in this market, as well as for the entire newspaper industry. We have done as much as we can to cut costs through more traditional methods, but it hasn’t been enough. These changes will hopefully save enough money to allow us to maintain two well-staffed, competitive newsrooms. And that’s the good news for us, and for journalism in this community. This decision should put to rest any worries that The Detroit News or the Detroit Free Press is folding.
    * Second, our readers’ tastes and habits are changing. Readers tell us that they have less time available during the busy work week. These readers are increasingly choosing online sources for their news. We want to be able to offer our readers a very strong Web site, as well as expanded electronic offerings of The News. For example, we intend to put a lot of energy into improving the quality and reach of our mobile site so that we can stay connected to our readers no matter where they go.

    Q: Will there be staff cutbacks?
    A: We don’t expect any at this time. We have been able to significantly reduce our staff over the past few years through buyouts and attrition. Jobs likely will be lost at the Detroit Media Partnership, but the intent of this strategy is to keep the newsrooms strong.

    Q: Will there be a new round of buyouts?
    A: We’ll know more about this at the end of this week or early next week.

    Q: How much control do the Detroit News and/or MNG have over this decision?
    A: Our JOA partners at Gannett crafted this strategy and asked The News to study it as part of its annual planning process. Gannett has the controlling stake in the Detroit Media Partnership and under terms of the joint operating agreement, the partnership has responsibility for the business operations of the two newspapers. The News will continue to exercise full control over content and design of our newspaper and our digital platforms. The partnership will make decisions regarding production and circulation operations.

    Q: How will my work life change?
    A: You still will be expected to report and present the news better than anyone else in this market. Our commitment to good journalism doesn’t change. There may be some changes in assignments and shift schedules to provide more resources for the Web site. But that’s always the case in this business. In the end, you will still be journalists covering one of the most exciting news towns in the country.

    Q: What will the new newspapers look like?
    A: We’ll all be working on that. And now that the announcement has been made, we’d like all of you to join in the planning process. We want your ideas. The next couple of months will be very busy and will require a lot of energy and good thinking from a lot of people to get just the right products in place to make this strategy work. Please don’t be shy about volunteering to help. We have a number of committees in place. Don and Felicia head the print committee. Gary and Pam the Website committee. And Nolan and Walter the marketing and communications committee. Please let them know if you want to get involved.

    Q: How will we fit all of the news into the smaller newspapers?
    A: Our goal as a news organization will be to aggressively cover the news. We’ll publish what we can fit into the paper, while maintaining the many delivery platforms that are at our disposal. That’s the beauty of the many technologies that we will now take better advantage of. Many of you will be spending more time working on Web site content, while others could be working on the content that will fill our new expanded Thursday edition. We should all be very excited about that Thursday newspaper. It gives us an opportunity to publish what in effect is a Sunday-style newspaper. We intend to make it a showcase.

    Q: Will my pay or benefits change?
    A: Our budget for 2009 is a work in progress. The worsening economic conditions may require some changes in the way we have operated.

    Q: Will my schedule change?
    A: It could, as we rearrange beats and decide the needs of the Web site. We will need more people on the weekends. And Wednesdays will be much busier work days than they have been.

    Q: Will we maintain the same bureaus and beats?
    A: We’re going to be looking at all of that. This gives us an opportunity to examine what we do, and why, and evaluate whether it still makes sense. That’s an overdue review, and should help us cover the community more strategically.

    Q: Will the online staff grow?
    A: Probably, as it has since its inception. But all of us will now be spending more of our time on content for the digital sites.

    Q: Will we have a presence in the Sunday paper?
    A: That has not been determined, but those negotiations are continuing.

    Q: When will the changes occur?
    A: Most likely in March.

    Q: Will these changes eliminate our financial worries?
    A: The changes take considerable cost out of operations. But we are going through an economic storm unlike anything we’ve ever seen. Much depends on how much worse this recession gets, and how soon the economy recovers.

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  55. Congrats on the blog's success Jim.

    But....
    In several threads (see 1:13) and other published reports you're credited with breaking this story. I believe one writer even suggested an online Pulitzer for your work.

    I think an appropriate reminder from you is in order, with proper credit to Mr. Lessenberry at the Detroit's alt. weekly Metro Times, who I believe first reported this story.

    I leave it to you, Jim, to suggest an appropriate response for those who reacted to the early reports on this blog by attacking Lessenberry as a hack with a grudge reporting rumors.

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  56. Are you sure, 1:48? I think the information was on Jim's blog before the Metro Times broke the story.

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  57. 1:32 -- those circ figures are for weekday single-copy sales? If the Freep has 97,000 circ now, is it reasonable for Paul Anger to say that they expect to sell 200,000 papers on those days?

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  58. 2:05 p.m.: I don't know where Anger got that figure. The numbers I cited were based on a Wall Street Journal's reporting of Audit Bureau of Circulation data, the gold standard in the newspaper circulation business.

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  59. For single-copy sales, I believe he was referring to 200,000 newspapers a day for both Detroit papers combined.

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  60. 1:48 pm: I was definitely not the first to break this story. It might have been Crain's Detroit, if not Metro Times. But definitely not me.

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  61. OK, so if the two papers combined are already selling about 200,000 copies a day, then the DMP is assuming very few of the current home subscribers will begin buying single-copy.

    That sounds like a reasonable assumption.

    Some data I'd like to have would be the current home-delivery figures for those days. I know the average daily circ figures from ABC (dropping all the time), but what are the daily breakouts? Anybody in Detroit have those?

    Then it might be possible to guesstimate the likely circ hit.

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  62. I meant to say: selling 200,000 single copy a day.

    I need an editor. Maybe two.

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  63. The Wall Street Journal, citing the Audit Bureau of Circulation, says the Freep has 201,000 home delivery subscribers and the News has about 97,000 home delivery subscribers.

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  64. Every day? I know there are at least two different subscription plans: Seven days and Thurs-Sun. So that 201,000 is an average, right?

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  65. This blog may not have "broke" the news, but it sure as hell had more information than anywhere else on the web.

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  66. It was said earlier that this would open up a void for the other "rags" to fill. Problem is those rags, at least in SE Mich., are for now owned by Journal Register Company. They have scaled back one newsroom to next to nothing, have essentially closed another daily and are skating on thin ice with their largest Mich. daily. They have neither the resources or brain-power to try to take advantage. The only scenario under which there would be a short or even long term shift is if JRC is liquidated and/or sold. Then maybe someone else can take advantage. Playing against JRC is like lining up against the Detroit Lions. Even if you fall behind, you know they're going to screw it up in the end. Otherwise, Booth has two papers on the fringe of SE Mich. (AA and Flint) but otherwise there is no competition for the DNA.

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  67. How will we ever start the day without the comics??? It sets the tone of the the day for me on a humorous note despite the doom and gloom of the news !!!

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  68. 3:04: comics.com.

    See the problem?

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  69. So the catch [hrase now changes from "convenient home delivery" to convenient stores and "coin boxes". (Don't they know they're called racks)?

    I'm single copy and would assume those carriers in Detroit are drooling at the "promise" of more sales. Wouldn't be surprised however if their pay rates are changed for that.

    This will not drive people online, just as screwing with single copy does not drive people to home delivery. All people will do is be driven to any competitor, assuming there is still one in the Detroit area. If not, that is moot.

    As stated by may people, there's nothing like having the hard copy at the ready, reading what you want, where you want, and when you want.

    Online should compliment the paper, not the other way around, or as we're seeing, replacing it.

    I feel bad for the carriers who will now be out of work. I feel worse for the industry as a whole, for even with the large numbers of us who still know newspapers have a larger market than they admit to or know, it's the big heads making the big decisions, which are torpedoing the "ship".

    But then again, I do give "conspiracies" an open minded "due". Maybe a less informed populace IS the ultimate goal? far-fetched, but is it so impossble?

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  70. I'm one of those who cautioned against Lessenberry, but I never called him a hack. I said, and I believe, he's a fine journalist, writer and interviewer. I did say...and still believe...that he relies heavily on selected, anonymous sources and gives carte blanche to those with a grudge. He also carries a deep grudge against Gannett and it colors his reporting. He also switches colors depending on who is signing his paycheck. His musings on Detroit were relatively on target, but he was merely reporting rumors that long ago were floating around Detroit. But he was on the mark with this set of rumors and I'll give him props for that.

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  71. I find the term "Digital Delivery" a disturbing euphemism for "Go run upstairs, wait for the computer to boot up, try not wake your significant other and don't spill your coffee on the keyboard." No substitute for the daily newspaper. I've got your digital delivery...right here.

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  72. 5:35, can you honestly be upset with a person who holds a deep grudge against Gannett?

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  73. Why these unnecessary attacks on Jack Lessenberry? He's a fine and honest reporter and it looks like he broke some news here. That doesn't surprise me because he's broken news before.

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  74. "It was said earlier that this would open up a void for the other "rags" to fill. Problem is those rags, at least in SE Mich., are for now owned by Journal Register Company. ... "

    Oct. 28, 2008:
    Despite the industrywide decline in circulation, five papers outside the top 25 reported gains of at least 5 percent, led by the Wisconsin State Journal of Madison, where circulation rose 10.6 percent to 97,012.

    The other gainers are The Macomb Daily of Mount Clemens, Mich., The Daily Sun of The Villages, Fla., The Times of Trenton, N.J., and the Citizen Tribune of Morristown, Tenn.

    Yeah, a bunch of maroons at that Macomb Daily.

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  75. To 12:55

    No new revenue for a year and a half?

    The pre paid subscribers revenue is not booked until the papers are delivered. Each month that revenue is pulled from the subscribers bank and posted as circ revenue.

    Certainly you knew that!

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  76. 2:54

    Wow you really know your stuff!!

    The Detroit papers dont compete with the JRC papers in Macomb and Oakland county? Look at an audit report and get back to me. It amazes me how many people put their mouth in drive before their brain!

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  77. 2:32

    The audits break out circ by each day. Then by a daily average mon-fri. My guess based on their last audit that would be a mon-fri average but without the audit in front of me I cant say 100%.

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  78. I enjoy getting the Sunday ad papers on Saturday so I can plan my shopping for the best deals throughout the week, especially the Meijers ad. Will those now be included in the Friday paper or will I have to wait until Sunday?

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  79. I would bet that the company is using Detroit as a "test market".
    And if it works...watch out.

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  80. Thank goodness they are attempting to do something to slow the massive losses at the newspaper and agency. It's not a wise business decision to keep losing money.

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  81. Surely the moves in Detroit are some form of test and probably a trend that will take hold throughout Gannett-land.

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  82. to 8:17

    You wont see those ads now until Sunday. Its a struggle in most cases to get an advertiser to agree to the comic package going out on Saturday there is no way they will allow it on Friday. I would think from a production standpoint it could be an issue as well.

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  83. This is NOT an experiment by Gannett. The idea sprang from the Detroit Newspaper Partnership and later authorized by Gannett. That's important to remember so the Gannett bashing at least can be accurate.

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Jim says: "Proceed with caution; this is a free-for-all comment zone. I try to correct or clarify incorrect information. But I can't catch everything. Please keep your posts focused on Gannett and media-related subjects. Note that I occasionally review comments in advance, to reject inappropriate ones. And I ignore hostile posters, and recommend you do, too."

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