Saturday, January 22, 2011

AOL CEO's bold promise to be No. 1 in local news

From "You've Got News,'' media writer Ken Auletta's profile of AOL CEO Tim Armstrong in the Jan. 24 issue of the New Yorker magazine, now on newsstands:

There are now 700 Patch sites operating in 19 states and the District of Columbia. AOL chooses new locations based on an algorithm that examines 59 factors, including potential advertising revenue, income, voter turnout, and retail spending.

Each Patch site is run by a journalist, who earns between $40,000 and $50,000 a year. There are no offices; reporters live in the area they cover. Because there are no newsprint or shipping costs, AOL publishes news, Armstrong says, at approximately 4% of what it costs a traditional local newspaper to do so. Still, the sites are not making money yet.

"We will be the largest publisher of local news in the U.S. this year," Armstrong predicts.

They might not, however, be the best. The sites aspire to break news, and occasionally they do. The Darien Patch, for example, reported that a First Selectman candidate had a criminal record.

But often the sites are like digital Yellow Pages, promotional bulletin boards accompanied by news about all the fun things going on nearby. Quality varies widely, and one senses a tension between journalism, which often conveys uncomfortable news, and boosterism, which makes everyone feel good about the hometown.

[Note: I can't link to Auletta's article, because it's behind the New Yorker's paywall. Here's the abstract.]

Earlier: In a Patch interview, Asbury Park Press Publisher Tom Donovan also wants to sell you the Brooklyn Bridge

20 comments:

  1. This is starting to be a very crowded field, with Murdoch putting together a new Daily paper, and AOL putting together this local news operation. Will ads follow the news, or stay with operations with whom they have done business before?

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  2. Jim spreads the Hopkins hantavirus.

    Rats, fleas on rats, and Jim Hopkins -- all part of the hantavirus trinity.

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  3. These Patch sites, at least in Michigan, are soooo terrible.
    The Onion from a decade ago nailed these sites so well:

    http://www.theonion.com/articles/what-this-town-needs-is-a-really-shitty-community,10672/

    http://www.editorandpublisher.com/Magazine/patch-is-in-town-does-the-local-paper-care-62913-.aspx

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  4. Newsflash! Newspapers vary in quality too! OMG! Sooooooooo terrible.
    My friend works for one and is always breaking news and has great columnists, go figure. Like anything else, the market will ultimately decide if the Patch model will work.

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  5. mixed messages in Jersey1/23/2011 12:08 PM

    Two issues: Tom Donovan's decision to gut editorial by 50% at three NJ papers seems to fly in the face of what the rank and file has been told for years, that local news is our franchise. Now we're seemingly giving it away just as Patch is ramping up their operations in many of the towns these papers cover or used cover. Tom, did you make a killing on AOL stock?
    NJ Gannett workers Remember to wear black on Feb. 4 in tribute to your fallen colleagues at the C-N, Dr and HNT. See Red, wear black!

    And 2:01a.m., go back to your troll hole and think of something new or Craig won't give you you $5 for repurposing the same old garbage

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  6. There are good and bad newspapers, just as there are good and bad Patch sites. But the difference is, in my opinion, that Patch seems to be hiring kids with maybe a couple years' experience as editors, and it shows in the product. I think in the long run that will make Patch sites trend to the bad side of the spectrum.

    Still, the Jersey publisher's decision doesn't seem to make much sense, unless there are further consolidations planned, and this is just another step toward that.

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  7. Why in the hell would anyone go to the trouble to get a college education so they could, if they are lucky, get a job peddling breaking promos for wages only slightly better than burger flippers get? Oh, and they get to use their home and car (if they can afford either) as an office.

    Journalism, as a career option, is over, folks. Forget you ever even considered it.

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  8. Are these Patch employees or independent contractors? Some of the news websites work that way, so of course, you're on your own as far as health insurance, etc.

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  10. Corporate pays only $5 for each of the attack posts, but it pays $20 every time someone whines about fonts.

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  11. Let's face it, Gannett (and other papers) haven't figured out the future of the newspaper industry short of touting all the on-line offerings. And realistically, all Gannett does is cost cutting measures- centralizing this and that. Gannett papers are 80% wire reports and articles written in markets far away. AOL might have a works in progress Gannett simply never thought of. And while the AOL idea might not be perfect, yet, what is Gannett doing in regards to new gathering short of cutting and shredding?

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  13. 2:47 pm - Hi Craig! How are you. Want to meet at the country club?

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  15. So far, the Patch revenue model falls well short of the news model (just click around...many sites have zero ads). AOL is a publicly traded company already in trouble. Like Gannett, they are brutal when it comes to mass firings. AOL has a limited amount of time to start bringing in some serious money or else Patch will fail. And something else will spring up.

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  16. Someone explain how there is more than chump change to be made with the Patch sites. I don't think AOL has ever explained the business model. But if It flops count on the leaders to be darlings at universities and media panels for at least a 2 year run.

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  17. Yep, the big question regarding Patch sites is how long they can survive with minimal advertising. Not long, I'd say.

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  18. There's a reason it's been referred to as AOHell for a very long time. They screw up everything they touch.

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  19. It's a platform. And for those of you not making any cake, it might be a good option. Lucky Jim, Gannett tossed him some time ago. Gave him a head start on the whole journalist-turned jilted muckracking blogger - so you're all screwed. Assuming you can afford to live in a community that can muster enough traffic on a patch site, go make a buck reporting on the PTA meeting instead of bitching here.

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  20. Kim could never last on Patch. He'd be unmasked as a gossip hound by the third article.

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