The Seattle Post-Intelligencer has become an Internet-only news source, producing its last printed edition (left) just hours ago, transforming the 118,000-circulation title into the largest U.S. paper to take that leap so far.Still, it isn't clear that an online-only P-I will be financially viable. Hearst is giving up more than 90% of the revenue that a newspaper typically generates from sales of print advertising and circulation, and that won't easily be replaced by online dollars, The Wall Street Journal says.
The P-I's new model hinges on slashing its work force, scaling back news coverage and selling different kinds of ads. It's keeping only 20 of its journalists for the Internet operation, leaving nearly 90% of newsroom employees, or 145 people, jobless. The P-I also is hiring more than 20 people to sell ads for its Web operation.
Related: Gannett's Tucson Citizen faces Saturday shutdown
Hearst officials yesterday announce print's last edition:
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"The P-I also is hiring more than 20 people to sell ads for its Web operation."
ReplyDeleteYou mean they can't train the current print ad people to sell online? Horrors! Ageism!
No, it's reality. Only a handful of our print reps, retail and classified, at the 3 papers I deal with can explain and sell a web ad. The rest of them need an assist from management when it comes to the very basics of selling online.
It's not a matter of training or incentive. There are regular training sessions and money tossed at them left and right for something so basic as just setting up a call.
I hope the new P-I succeeds beyond any of our expectations.
P-I is barely the tip of what is to come. Once a few convert, it will snowball quickly. Many (20plus)newspapers will be digital only by years end. Even more if P-I plan works.
ReplyDeleteNB
While Seattle knows its fate, Conneticut staffers are held on edge yet again. Answer me this -- who's worse, Gannett or Hearst? Here's a memo Hearst sent out yesterday...
ReplyDeleteMarch 16, 2009
Dear Connecticut Media Group Colleagues,
Beginning this morning, employees who have applied for benefits under the Voluntary Buyout Plan announced on December 19th, 2008, will be learning about the status of their application. I am pleased to announce that 48 out of 54 applications have been accepted into the program. Despite our best efforts to accept as many applications as possible, six applications were denied because the positions vacated would require replacement, failing to provide an acceptable financial return on the company's investment in the separation benefits.
Most of the individuals accepted into the voluntary buyout plan will be leaving the company within two to four weeks. However, a few exceptions are anticipated to ensure a smooth transition.
Since this plan was first announced, our business conditions have significantly deteriorated under the strain of a deepening recession. The rate at which advertising revenue is eroding is unprecedented. To ensure the vitality of our business and to position all of our Connecticut newspapers to thrive during the years ahead we must rapidly advance our digital media sales efforts while we lower our operating costs by at least 20% over the next six months. Although this may sound overwhelming, after spending the last six weeks getting familiar with our current market position as well as the cost structure of our business, I am confident we can achieve both of these objectives. We have already identified enormous potential to improve the quality of our products for readers and advertisers by sharing resources to produce improved sections like “Go”, “SouthernCTjobs” and our Business sections. These are recent examples of using resources more efficiently to produce more energetic local news and information.
Our community publishers have been working hard at indentifying key opportunities for advertisers and exploring cost reductions that will make us leaner and poised to excel when the economic recovery takes hold. In addition to freezing wages and restructuring around vacant positions held open since January, we will need to reduce staffing further across the group as we reset the cost base of our business. Many of our best opportunities for significant savings will require more collaboration across business units. While every unit will need to give up some current control over some aspects of their present operation, collectively our newspapers will remain stronger united and better positioned to serve our local communities than if we confronted the current economic challenges as a single business unit.
Since we will be consolidating functions, it will take us several months to implement the plans required to achieve our targeted cost base. I realize this will extend the anxiety you may be feeling about your future. For that, I am truly sorry. I hope, however, you will witness a renewed energy across our media properties as we roll-out our new digital advertising products and align our news and circulation strategies to support how we intend to go-to-market as a collective arsenal of media assets with deep local reach and unmatched digital products and services.
Maintaining a competitive cost base, adding flexibility and diversifying our product mix are essential priorities to charting our future. I will be communicating with you frequently about our progress during the months ahead. In the meantime, if you have any questions, please contact me or your unit publisher directly.
Thank you for all you continue to do to support the Connecticut Media Group.
Sincerely,
Mark E. Aldam
Sr. V.P. – Group Publisher
Hearst Newspapers
R.I.P. P-I.
ReplyDeleteFare thee well, brethren.
ReplyDeleteTUCSON WILL NOT CLOSE AFTER THE 21 ON GOING TALKS WITH ACOUPLE OF BUYERS
ReplyDelete