The Obama Administration denied Corporate's request to completely shutter Arizona's Tucson Citizen. But a settlement announced Friday allows Corporate to strip the afternoon paper of virtually all its editorial employees, replacing them with an online-only publication that appears to be little more than a fig leaf. Gannett and partner Lee Enterprises will continue splitting the roughly $10 million in annual profit produced by their joint operating agreement. Arizona's attorney general intervened, filing a suit to block Gannett, but it's unclear where the case is headed next. Next, in Minnesota, the St. Cloud Times confirmed that it's closing its press, shifting production to a Gannett Offset factory near Minneapolis. Finally, seeking to trim costs once more, the broadcasting division reportedly replaced all its local webmasters with a smaller number of regional employees.
Monday, May 18, 2009
Recap | The TV division is getting Gannettoided!
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The Obama Administration denied Corporate's request to completely shutter Arizona's Tucson Citizen. But a settlement announced Friday allows Corporate to strip the afternoon paper of virtually all its editorial employees, replacing them with an online-only publication that appears to be little more than a fig leaf. Gannett and partner Lee Enterprises will continue splitting the roughly $10 million in annual profit produced by their joint operating agreement. Arizona's attorney general intervened, filing a suit to block Gannett, but it's unclear where the case is headed next. Next, in Minnesota, the St. Cloud Times confirmed that it's closing its press, shifting production to a Gannett Offset factory near Minneapolis. Finally, seeking to trim costs once more, the broadcasting division reportedly replaced all its local webmasters with a smaller number of regional employees.
The Obama Administration denied Corporate's request to completely shutter Arizona's Tucson Citizen. But a settlement announced Friday allows Corporate to strip the afternoon paper of virtually all its editorial employees, replacing them with an online-only publication that appears to be little more than a fig leaf. Gannett and partner Lee Enterprises will continue splitting the roughly $10 million in annual profit produced by their joint operating agreement. Arizona's attorney general intervened, filing a suit to block Gannett, but it's unclear where the case is headed next. Next, in Minnesota, the St. Cloud Times confirmed that it's closing its press, shifting production to a Gannett Offset factory near Minneapolis. Finally, seeking to trim costs once more, the broadcasting division reportedly replaced all its local webmasters with a smaller number of regional employees.
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Newspaper web sites are not profitable. It might be many years before they or some other digital delivery system make any serious money. So why is Gannett abandoning print and most of its journalists? You would think Gannett and USA TODAY would want to maintain talent pools rather than throw people out on the street in favor of building up something (web sites) that may or may not be the future. Regardless of how news is delivered in the future, this company is going to need editors, reporters, designers, etc. And until something comes along that is more profitable than print, I just don't understand this rush to get rid of newspapers. In fact, many newspapers in Europe are still doing well, as are some smaller publications in this country. Gannett seems to be bent on self destruction or gambling everything on a future model that has yet to be proven.
ReplyDeleteGannett is so clueless. News leaders like the Times, Journal and AP understand more than ever that the uniqueness and quality of content will decide who will be able to charge for web access and command advertising. Generic doggerel should be and will always be free. By failing to invest in reporters who will make the difference, Gannett is ensuring a place on the scrap heap.
ReplyDeleteword verif: pigger
Tucson Newspapers Inc. trashes newspapers in defending decision to shutter the print Citizen ...
ReplyDeleteClosure of Tucson Citizen defended in court filings
By Tim Steller
Arizona Daily Star
Tucson, Arizona | Published: 05.18.2009
Tucson newspaper officials argue in legal papers filed today that there were no adequate offers to buy the Tucson Citizen and that businesses increasingly use other media to advertise.
An appraisal contracted by Gannett Co. Inc, the owner of the Citizen, placed the value of the Citizen’s assets at $760,000, said Daniel Ehrman Jr., a Gannett official, in sworn testimony.
The offers it received included one from Santa Monica Media Corp. of $250,000 in cash, plus $400,000 over five years, Ehrman said.
The other offer, by Unisystems LLC was $300,000. That offer was “well below the liquidated value of the assets,” Ehrman said.
The Citizen published its last edition Saturday. But late Friday, Arizona Attorney General Terry Goddard filed a lawsuit in U.S. District Court, asking for a temporary restraining order against the closure.
He argued that the Citizen’s closure amounted to a conspiracy in which the owner of the Arizona Daily Star, Lee Enterprises, and Gannett attempted to squelch a local voice in order to enhance their own profits.
The documents filed today are the response of the defendants: the Citizen; its owner Gannett Co.; the Arizona Daily Star; its owner Lee Enterprises; and the company they jointly own, Tucson Newspapers Inc. They argue that the closure was legitimate and economically necessary, citing studies that say the Citizen was a drag on the profits of Tucson Newspapers.
The newspaper companies’ response to the lawsuit cites several of its biggest advertisers saying that they have plentiful advertising options and that they have shifted advertising away from newspapers without losing business.
In a sworn declaration, auto dealer Jim Click said he has only returned to advertising in the local newspapers last week after stopping four or five months ago.
“During that time, I shifted my advertising to television, radio and the Internet. We saw no difference in our customer traffic during that time,” he said.
Steve Lace, vice president and general manager of Royal Automotive said his company has moved progressively away from newspaper advertising over the last five years.
“Five years ago, approximately 80% of our advertising purchases was in the print space. Today, that number is 10 percent,” Lace said.
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