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"Vultures" hit newspapers
Publications have been hammered by years of declining revenue and now the vultures have descended.
If you’re interested in learning more about what’s happened to newspapers in America, register for the free showing Saturday afternoon of “Stripped for Parts—American Journalism on the Brink.”
The hard-hitting film previewed earlier at the Firehouse Arts Center, sponsored by the Pleasanton Weekly and its now nonprofit parent, Embarcadero Media. Weekly Publisher Gina Channell Wilcox will be on hand at the Pleasanton Library for the quester-and-answer after the film. It starts at 2 p.m. and you can register on the Weekly’s website.
As one who worked through the consolidation of the journalism industry in the 1970s-1990s that saw many aging publishers cash out and corporations, many with institutional investors, take control. The bottom line became paramount. When helped-want classified advertising revenue collapsed after Craig’s List came on line and then other retailers pulled back, publications (newspapers and magazines) went into a revenue death spiral. Advertising revenues dropped every quarter starting in 2006 when the biggest transactions effecting local publications took place with the parent of ANG Newspapers (Media News Group) buying the San Jose Mercury, the Contra Costa Times and the Monterey Herald.
The shell of a paper you see in the East Bay Times reflects both the revenue crash and the entry of the hedge funds into the market. That’s what the film traces—it’s worth your time.
There’s been another factor in this transition—traditional institutional investors have backed off because the double-digit profits are no longer easily there. Instead, publications have evolved back to ownership by small groups of wealthy people or individuals such as Jeff Bezos with the Washington Post.
One unexpected outcome is that the Associated Press, formerly renown for its fair and balanced cover (necessary because executives had to keep from conservative and liberal publishers happy). That’s long gone as witnessed by the scrap between the Trump Administration and the AP over the Gulf of America (Mexico). During my newsroom tenure, I remember when professional sports teams started selling stadium and arena sponsorship. Early on, the “pure” sports writing group refused to list the sponsor, but rolled over pretty soon.
Now, the AP has evolved so it’s no longer a true cooperative with costs paid for by the members. Instead, about 10% of its revenue comes that way so it can accept “donations” from people such as E-Bay founder Pierre Omidyar. Some strings with it—judge for yourself.
The promotion of Brandon Cardwell to heading Livermore’s economic development department continues to pay dividends. Earlier in his career, he led the I-Gate business incubator and he’s a home-grown employee who is raising his family in Livermore.
The latest example, beyond the growth and focus of the incubator, is the new vision at the Livermore Airport that has moved from public works to Cardwell’s division. It can be housed in either area, but if you’re looking for innovation, that’s a obviouis decision that the city made in December.
This month, the city established an Aviation Innovation Center at the airport to encourage the development of electric vertical takeoff aircraft. That’s one initiative that fits with trends (small electric aircraft suitable for commuters into dense cities).
Just what other ideas will percolate from the center remains to be seen, but I’m confident they will find an open mind and ears in the director.
There was one newspaper organization that self-destructed. The Chicago Tribune (through its parent company) purchased multiple newspapers up and down the peninsula. Among them are Redwood City, Los Altos, Mountain View, Palo Alto, and others.
It was the most disjointed, unorganized, self-centered blowhards of people that were brought in to manage it. It disintegrated early 90s. Rising out of that mess, the Embarcadero Media, Pleasanton Weekly, and others.