Monday, January 30, 2012

Onward, Part Two


Perhaps because we are enjoined to spew out of our mouths that which is lukewarm, it’s always been hard to say, when confronted with the imperfections of newspapers as opposed to the ideals of journalism – well, this newspaper may not be perfect, it may not be as good as it can be, but perhaps it’s better than any of the alternatives that could reasonably be expected to occur. But part of it was, it was just the way things were. One didn’t speak back in those days of how international coverage was being passively underwritten by automobile dealers and Realtors. The concept didn’t even enter one’s head. There was advertising revenue, there was spending on news coverage, things went into a big pot and then someone doled out the honey.

At least that was the case in newsrooms, most of which were into the 1970s before the concept of “a budget” took hold – not a news budget, but a spending budget. Until then, you spent money, and if you were spending too much money, the publisher told you to spend a little less for a while. The publisher was never going to give the newsroom enough money to break the bank, and the editor had a pretty good idea of what he could spend – but it was still a business where, as happened in Alabama in the 1990s, the editor of Newhouse’s Mobile paper could be talking to a company official about wanting to obtain a sister paper’s coverage of University of Alabama football and be told, well, why don’t you just hire your own beat writer? It was informal, ad hoc and, as long as the owners got enough money to live their lives the way they wanted to, not terribly complicated.

We, of course, as journalists, were too high-minded and high-status to think about things like how the money was divided up, which brings us to progress editions. At my first two papers we did progress editions. Whether you were a reporter or an editor, you were assigned stories for the progress edition. (For those unfamiliar with the idea, it is a once-a-year section extolling the community’s economic growth and prospects, and including company-by-company profiles, which, depending upon the local view of things, were variously 1) done totally on a journalistic basis, or 2) assigned based on who bought ads but still were written objectively, or 3) were written as puff pieces that were guaranteed when you bought an ad. But they were done by the newsroom and not the advertising department.)

I, like everyone else in the newsroom, resented doing progress editions. It wasn’t my regular job. It was shilling for someone who bought an ad. It had no news peg. It wasn’t what I went to college to do. It did not benefit society. That was what advertising people did – promised an advertiser anything to get money. I was above that. I was a journalist. These were elements from a less ethical past, when reporters took free liquor at Christmas from the mayor. Still, I had to do it, so I tried to write the best article on the National Automatic Tool Co. that I could. But I knew nothing about its business, had no interest in what it did, and, to be honest, looked down on the people who worked there, managers and workers alike, as people who spent their lives assembling National Automatic Tools, whatever they were, while I was living in the world of ideas, of abstractions, of political and generational change, hanging out with hip young people who didn’t drive pickups, didn’t go hunting, didn't follow conventional morality, and didn’t wear flannel shirts except to be cool.

In the second year of my doing progress edition work – I believe this year I had to edit the stories – I asked the managing editor, why do we, professional journalists, have to do this crap? It is beneath us. To which he answered: You may not have noticed, but no one advertises in January and February. It’s winter. Most people don’t buy new cars.  Most people don’t buy new houses. Knollenberg’s and Elder-Beerman don’t run big sales.  People just buy what they have to, so other than the supermarkets, businesses don’t advertise.  This is how we make money in January and February, by appealing to the vanity and civic pride of the Wayne Works and the Second National Bank and the National Automatic Tool Co. They want to advertise in the section because everyone advertises in the section and if they don’t, someone at the Rotary will say, “I see you didn’t advertise in the progress edition. Aren’t you for our city’s progress? Are you having, er, financial problems?” If we didn’t do this, we would have less money and would have to do less the rest of the year.  So go edit the damned stories.

I was amazed, given that the American economy no longer is based upon local industries such as the National Automatic Tool Co., to see not only that progress editions are still being published, but that the reaction to them – in this case from a journalism professor – is exactly the same. Justin Martin, Ph.D., Honors preceptor at the University of Maine – yes, I had to look “preceptor” up, it basically means “head of the honors program” – reacted unfavorably to a progress edition in the Bangor Daily News, the local paper for the main campus in Orono. Unlike in my day, the stories were advertorial. Unlike in my day, the section was labeled as advertorial. But as Martin notes:

“According to the author of the articles, these stories focused only on companies that had previously purchased advertising from the paper. Editors, though, weren’t transparent about this with readers. Atop each of the seven full-page articles extolling the virtues of the businesses, there was no note to readers indicating the stories were linked to money coming into the newspaper. The content was delivered on broadsheet newsprint, not the smaller inserts of, say, Best Buy offerings or Parade magazine, which set the content apart from a paper’s own news. And the newspaper’s name listed beneath each of Fitzpatrick’s bylines seemed likely to confuse readers into believing these were standard news stories on Maine businesses.  The minuscule disclaimer is not enough. This insert feeds readers copy that looks like vetted news. In the version of the insert published online, the notice that the coverage is linked to advertising is invisible unless one zooms in considerably on the front page.”

Martin – who, and I know this is a cheap shot worthy of Michele Bachmann, not only mentions his doctorate in the tagline, but once in the article where it is not really necessary -- is severely offended by all this. His feeling: “Readers have virtually no way of knowing that the upbeat coverage of the businesses is connected to paid advertising. Even if readers saw the extremely small identification of an ‘advertising supplement’ on the front page of insert, is that enough? Readers don’t know the content inside is a thank-you to companies that have written checks to the paper. The section’s front page boasts in very visible type that ‘Maine has a rich business history, and within these pages you’ll find great examples. And we’ll honor seven of those businesses that have stood the test of time with in-depth histories.’ This language leads readers to believe The Bangor Daily News is independently appraising these companies. When flattering news coverage is in any way linked to paid advertising, news providers have an overriding obligation to fully disclose that quid pro quo to the public. Of course, it would be better if news outlets simply resolved not to flirt with deceiving their audiences in the first place.”

Well, all well and good, except, of course, we have not proved that anything in these stories is false, overwritten or deceptive beyond the fact of their existence. The editor of the Daily News, after some hemming and hawing, promised in the future to try to have each article labeled as “advertising.” And I’m not writing to defend the section – it may be a piece of junk.

But here it is 2012, after years upon years of collapse in the newspaper business, and Preceptor Martin, Ph.D., remains as high-minded as Young Journalist Sullivan was in the 1970s. The answer of “this is how the Bangor Daily News pays its bills in the winter” would doubtless not satisfy him. The answer of “we do this so that we can provide more and better journalism in the news sections” would not satisfy him either, any more than it would have me back then, although it would now. The only answer that would satisfy him is, “Journalism must be above commerce.” Because, of course, journalists should not have to deal with the sort of messy matters that confront the publisher of the Daily News – or that confronted the owners of the National Automatic Tool Co., which did not last much longer than my story about it. Journalists place in society is to do journalism, and the car dealers can subsidize the cost.

At this point in my life, my prescription would be somewhat different that Martin’s, although we might agree on some points. Make it a news section. Do two or three good stories about business in Maine and Bangor. Then have reporters do stories on firms that buy ads – not just a 1x2, you have to buy a quarter-page. Tell them the reason they are doing these stories is that today’s equivalents of NATCO – the hospitals, the trucking companies, the firms that fill the office parks -- are where most of the readers work.  Their stories, their companies’ stories, are usually untold in the newspaper, which will never notice them unless they go bankrupt or have a layoff. (We will spend our time focusing on government and agencies for the disempowered.) And no, we don’t want a piece trashing these companies. But it doesn’t have to be slimeball stuff either. It’s just a piece saying, here’s what the CEO or whoever says the next year looks like for his company, and exactly what it is his company does, and what his company's local payroll is, and is that up or down from last year, and so forth. And now you, our local journalist employee, actually know something about the people who write the checks that pay your readers who spend money on the newspaper and its advertisers. And now you, our local journalist employee, understand that your own paycheck comes from much the same place. And yes, we're going to call it a progress edition, and no, we're not going to use it to critique capitalism or call for Realtors to get 2 percent commissions or ask how the CEO can live in a $1 million house while people are homeless.

But if you can pay for more and better journalism through stratagems such as a progress edition – which John Q. Reader is not going to give a fig about its provenance one way or the other – in this financially challenged era, and can benefit your newspaper, then, to channel noted journalism critic Sarah Palin, “Sell, baby, sell.” It may not be perfect, but these days it's as good as can reasonably be expected to occur. Part Three to come.

Wednesday, January 25, 2012

Onward, Part One


A story for Bloomberg News by Nathan Myhrvol reminds “TTPB” that two things happened to the newspaper business as we knew it and only one of them has to do with new approaches to journalism.

One is that the growth of the Internet provided an alternative to classified advertising that was easier to use, less costly, and more versatile. People started fleeing in large numbers from classified before newspaper circulations started to follow suit. The falloff in newspaper revenue since the high-water year of 2005 has been tremendous, but how much larger it would have been had volume after the dot-com crash followed its usual upward slope with the recovery. Instead, newspaper advertising volume remained pretty flat in the first years of the 21st century, and revenue was boosted through raising rates. It’s true that people were pounding on the door looking for ads. It’s also clear that a lot of people were no longer pounding on the door.

The other is that not that many of the attacks on benighted newspapers from journalists – need we mention the name Jarvis here? --  are not only about the loss of revenue and the industry’s generally poor, disorganized, and fitful response. Some critics have concentrated on the interplay of the decline of the business model and the journalism produced – the always thoughtful Howard Owens, the redesign artist Alan Jacobson, and Alan Mutter with his continuing chronicle of the industry’s descent into the flame. But others would have been attacking daily newspapers if classified revenue was still storming along, if a way had been found to finance newspapers in print as well as adapt to the Internet age.

Their criticism, to me, is that “newspapers” does not mean the same thing as “journalism,” and either 1) should or 2) since it doesn’t, newspapers should just die.

The momentary crisis over “Is Joe Paterno dead” shines light on the point. Until its premature obituary Saturday night, Onward State was being hailed as an avatar of the new way, of throwing out all the barnacles that have held back newspaper journalism. It was being hailed in the same way that “underground” newspapers had been hailed. It was being hailed somewhat in the same way that the “new journalism” had been hailed. Now, these guys at State College just made a mistake in the same way that UPI used to make mistakes. They thought they had something and they didn’t. Careers should not be ended. But is their process, their approach – described in the article as “smashing some sacred journalism traditions, quaint rituals like editing, striving for objectivity, and verifying rumors before publication” -- truly a model for us to emulate, or is it simply the desire to let the id run free?

There’s always something to appeal to journalists, professors, and other critics who want to decry newspapers for being, as they forever have been, not hip, not disinterested, and not solely devoted to the care and feeding of journalists. They call out newspapers as institutional. Subject to the whim of editors who may not be as knowledgeable as they should be. Closely allied with the traditional power structure. Wary of “offending” their longtime readers. Subject to competitive marketplace pressures. Occasionally willing to kill stories to satisfy car dealers, real estate agents, and the like. Aimed at a mass market that doesn’t know Uganda from Uzbekistan. Reporting on the deeds of institutions and not the needs of people. Mainly printed to sell dry goods. Alternating between a principled stand against intimidation and fear that their readers are so easily swayed that they will lose them unless they “balance” the editorial page 80-20. In big cities, largely staffed (until recent years) by college-educated cosmopolitans whose interests were not the same as Joe Sixpack’s.

And some of the critics are people who strode into newspapers full of purpose and ideals and self-regard, as we all did, and then were told, after writing a poetic 250-word lede or wanting to spend six months researching the problems of adoptions from Tanzania (if there indeed are such problems), that, well, we don’t do that. Give me 10 inches on this car crash. Some of us said, OK, that’s what the job is, and others said that this was not what they intended to do with their lives and talents, and therefore what they had been told to do was wrong, irrelevant, out of date.

From the time of the penny press, through the muckracking era, into the attempt to create PM, through the readership of I.F. Stone’s Weekly to the era of alt-weeklies, and now to today’s world of the Huffington Post, there have always been efforts to break the perceived stranglehold of the establishment press, the mainstream media. And there have always been people who portray themselves as the honest seekers of the truth as opposed to the dull scribes, who feel that if we could just break down the walls of tradition and process and manufacturing there would be a journalism that would finally shine its light on the darkest corner, finally do its fullest part to end whatever evils one perceives. Oh, and a journalism that would never, ever make me change my lede or trim to length.

And all of us bow before this criticism and feel duly chastened, because we know we are not as high-minded as we once were, and with the loss of revenue we can lose faith in what we do, which, as Steve Yelvington noted, traditionally has been to work in a business whose core competence was manufacturing and delivering a product to people’s homes. 

Newspaper companies would like to tell you that their core competence has always been storytelling or creating content. They would like to say this because in part they believe it, in part because they want to believe it, and in part because they see the business of delivering a product to people’s homes falling apart. But this is not what they have been. Regardless of whether you spent gadzillions on journalism, like the New York Times, or tried to eke out an inferior report on starvation-level expenditures, as the Jelenic-era management of Journal Register did, the product was essentially the same. You brought together whatever you had, news and ads, you put it on pages, you printed them, and you delivered them. That was the business.

What you made into the content and how much you paid to get it was secondary, and was to some extent a loss leader to give people a reason to buy the product. Your customers were your advertisers and people who paid to have something in their hands every day as they sipped their coffee. Your customer was not the needs of society. Your product was not simply journalism. You were glad that your business allowed you to commit journalism, within certain strictures – such as not “offending” longtime readers, not being critical of 6 percent real estate commissions, and being gingerly in covering the affairs of the powerful who decided whether they would buy ads. It was not ideal. It looked to ideals for inspiration and fell short. Still, the good far outweighed the bad. But to some, the fact that there was bad simply invalidated the good.

Part Two to follow.

Wednesday, January 18, 2012

All the World's Knowledge, and It's Theirs

On this morning when the always unimpeachable Wikipedia decided to show us that it is not simply a group of public-spirited citizens trying to bring the benefits of the link economy to everyone, but, in the end, just another business engaged in protecting its own interests at the expense of its customers -- even though, like any business, it would say that its long-term interests are of course in its customers' benefit, what's good for General Motors is... -- it brings to mind a recent Harper's article on Amazon's control of the book business.

 The story isn't available free online, but it basically concentrates on the Amazon-Macmillan feud over pricing. (Here's a look at publishers' options in the wake of that.) The piece is a jeremiad and not utterly convincing in broadening from its example to a universal argument that the gospel of "efficiency" is a corrupting influence on America. But its main argument is that companies like Amazon, Google, Microsoft, Apple -- and, yes, Wikipedia, even though it is organized very differently -- are just as much monopolists as Andrew Carnegie or John D. Rockefeller. Rockefeller presented what he was doing as ultimately in the public good by rationalizing the oil business to prevent price wars that drove producers out of business and to share the cost of capital investment so that the benefits of oil could be made available to the world. Doubtless it did that. It also did many other things not quite as beneficial to all.

Does that mean that Larry Page is a latter-day Henry Clay Frick? No, and it doesn't have to, although Jeff Bezos seems much more the Rockefeller of our day. We're not seeing goons going after Wobblies; those battles have been outsourced, if they are to happen at all. And instead of the railroads setting ludicrously high prices for Midwestern farmers, we see Amazon selling online books at a loss. So perhaps it is different and the innovative giants of our age are merely enabling a flowering of human culture unlike what has ever been seen. Perhaps legislation such as that Wikipedia and others are fighting are continuing attempts by the Old Economy to strangle innovation and restore monopolistic controls.

On the other hand, Wikipedia told all of its users and contributors today: You may think this is yours. We've told you this is yours. But we own it. And we can do with it what we want. That's the way of monopolies and oligopolies. In the end, they get arrogant. Can't be helped, probably. That's not the point. The point is that millions of people around the world still believe, "This time, it'll be different." That coolness and connectivity are worth any price that those who offer them exact. That the people who offer them are the good side of Steve Jobs without the bad. Maybe they are. Or maybe Google is today's Standard Oil.

The public needs to debate and decide, but somehow the flow of information seems to have made it harder to hear anything except talk about issues where the lines were drawn in the pre-Internet era -- so many of which still seem to be men talking about whether women were created by God as vessels for babymaking and little else.

Thursday, January 5, 2012

New Year, Same Issues?


So little time, so much to do, this falls to the bottom. Thanksgiving, Christmas, who has time to blog? So the world has probably forgotten about “TTPB.”

But a number of interesting things have happened since last we met:

Does Warren Buffett’s buying of the Omaha World-Herald – which included a number of smaller dailies in places like Kearney and Council Bluffs, not that anyone noticed – mean he sees signs of life in the newspaper business? Or does it just mean that in his old age, Buffett, to whom the World-Herald is barely an accounting mention, wanted to help out some fellow Omaha citizens – the company was employee-owned – by giving them a payoff before the value of their shares went down to nearly nothing?

Does the Albany Times-Union’s announced purchase of a new press – an increasingly rare investment in iron – mean that there’s a future for printed newspapers in the mind of the Hearst Corp.? Or does it just mean that publisher George Hearst, whose name is on the company’s door, got to finally buy the press he announced he was buying back before everything went bad, one he can leave as his legacy?

Will the move by the Columbus Dispatch to print at modified Berliner size, and print the Cincinnati Enquirer as well, find acceptance with readers who say they like the size better? Or, by the time the new size debuts, will people have simply found the whole thing irrelevant regardless of size?

And is it not interesting that while a few years back, a big ethics dustup at the Santa Barbara News-Press brought condemnations down on its publisher, in this straitened era the changes at the far larger San Diego Union-Tribune (now to be called U-T San Diego) – the publisher’s saying, “Yeah, we’re going to support a new stadium,” as well as running a jingoistic slogan on the front page – have merited only a few harrumphs? Is this because the San Diego paper has been seen in the industry as an underachiever for most of its life? Is it because the editor who was fired at Santa Barbara had many friends and allies in the business from previous jobs? Will the new publisher’s stated creed that the U-T should be “a cheerleader and a watchdog” resonate with readers who feel that newspapers have become cranky scolds telling John Q. Public how unenlightened he is for being against – oh, people like a newspaper employee-blogger who would think that calling America “the world’s greatest country” is jingoistic and lacking in journalistic objectivity rather than simply a heartfelt statement of a beloved and universally understood fact? Or is it just that no one really cares anymore what a newspaper does?

Pretty pessimistic thoughts for this pro-print blog, but the losses, the defections, keep piling up, each one giving you a little less money to operate with, while – not just in the minds of the digerati, but in any real-world scenario – creating internal resentment in companies because one has to keep spending most of one’s money on this THING, this PRODUCT, instead of spending it on these other new things that seem to bear more promise, while your competitors don’t have to. And it reminds this department store fan how within the scope of a few years, department stores went from being essential to being easily ignored -- from symbols of their cities to places you went to when you had to.

For Christmas I got three department store books – Jan Whitaker’s great look at department stores around the world (though primarily in the United States, France, England and Japan), and two of the History Press’ offerings on local department stores: “Look to Lazarus” (in Columbus) and “Burdines” (in Miami). At various points in one or another of them are reflected three points:

1), that as the shopping mall developed from strip centers into enclosed regional behemoths, the mall in essence became the department store – serving the same destination function. The department store then became one of the less-exciting departments in the mall-cum-department store, because its fixed costs, traditions, and multiple bureaucracies made it harder to change than a Spencer Gifts or a Limited. Substitute “Internet,” of course, for “shopping mall.”

2), that we need to always think about the money. Burdines Inc., for example, which dominated South Florida, was sold to Federated Department Stores in the 1950s after Allied Stores, seeing an opportunity, started opening Jordan Marsh stores nearby. Burdine’s had largely defined the Florida resort-wear look among department stores, but didn’t have deep enough pockets to compete with Allied on the one hand and the rise of discounters on the other. It had a wonderful business and loyal customers and had done great work, but just take away a small percentage of that and your profit margin is gone. Substitute “other web sites” for “Jordan Marsh” and “discounters.”

3), that trying to cover every bet may get you to the same place as not trying to cover every bet -- it may be that you just can't win. Metropolitan department stores felt they had to open branches everywhere to be competitive and cope with the defection of shoppers from their downtown stores to suburban sites. But as an official of the F. and R. Lazarus Co. noted, you increase your costs nearly three times fold with three stores, but your business doesn’t increase by the same amount, because much of it is just transferred from one site to another. You spend X times 3 to make X times 2. As a result, service, training, and upgrading kept being cut back, making the department stores less distinguishable from what had previously been seen as inferior competitors. This was simply the law of unintended consequences at work. It remains to be seen whether “multiple platforms” is the substitute for “branches everywhere.”

If Hutzler’s in Baltimore, as noted in Michael Lisicky’s book, had just moved its operations from downtown to Towson, it could have had a very profitable store for years – but could not have stayed competitive in the market as Stewart’s, Hochschild Kohn, Hecht’s, Penney’s, and Sears flooded the market with branches. But by having to open more and more stores to remain in the community consciousness, the company was drained – as in the end were most of its competitors, all from trying to keep up with each other and everyone else. Substitute “multiple platforms” for “suburban sites.”  Hutzler’s was the best department store in Baltimore, but that did not save it. Its competitors were seen as perhaps not as good, but as good enough – which put them and Hutzler’s in the same category.  "Less efficient" doesn't mean "worse" -- it just means "more costly."

Well, let’s not think about that. Let’s end with a paper that believes in print, the Washington (Pa.) Observer-Reporter, as forwarded by my relative Larry Stratton: Online, this article has been read 283 times. Help it out. Spread the word.

Tuesday, November 15, 2011

Third Floor, News

"Irony" is, like "hopefully," one of the most "misused" words in the language -- and largely for the same reason, that it easily fills a linguistic hole, having come to mean "isn't it interestingly peculiar and perhaps ordered by fate" rather that simply "isn't it the opposite of what I just said." Personally I feel that both of them have come to these meanings through the need for a secular word like "inshallah" -- God willing, even if he doesn't really will it. In any event, it is personally ironic in the new sense that my employer announced Monday that it would be moving from the building built for it in the 1920s to the building built for the department store Strawbridge & Clothier in the 1930s. I assume this means I will close out my journalistic career working in a department store, although whether that happens when I want it to or when circumstances occasion it is, well, inshallah.

We'll be on the third floor -- not just our newsroom, but one newsroom for both papers plus the website, and people from other departments there as well. The payoff for us and the city is apparently a desire to turn the current semi-dead zone on Market Street  between Sixth and 12th Streets -- there are lots of stores, but not the sort to appeal to conventioneers or 21st-century yuppies -- into a brightly lit and happening place. Inshallah. Part of that will be video screens displaying the news from Philly.com. Perhaps it will be called Inquirer Square, but it is more likely to be Philly.com Square if it comes to that.

According to BAK's Department Store Museum, a wonderful site for photos, logos and store directories, the third floor of Strawbridge & Clothier in an era many of us would remember was: Pickwick dresses and coats, misses' dresses and sportswear, Today's Woman, contemporary dresses and sportswear, New Editions, Trend Shop, Country Club sportswear, Devon Shop, Philadelphia Shop, furs, bridal salon, millinery, and Junior World. In other words, the province of middle, upper middle, and lower upper class women.  I guess I'd rather be there than in toys and hardware, which seems more like us but was on eight -- that's right, you went to the eighth floor of a department store to buy paint, and then carried it on the elevator or down seven escalators, past notions and jewelry and out to get on the subway or to your car in a nearby garage. Just unimaginable today, and just normal back then. I wonder if they sold ladders.

Certainly I will mourn leaving our building. I remember coming for my tryout in June 1983, taking a walk on Sunday, turning onto Broad Street, seeing the Ivory Tower of Truth, and thinking, wow, if I get hired here, I have made the big time. Most newspapers are diving out of their buildings as fast as they can, whether old ones as in Worcester or new ones as in Iowa City, because they were built with now-unneeded pressrooms and mailrooms to stuff thousands of copies of papers thick with now-lost classified advertising with now-nonexistent inserts, and had room for lots of classified ad takers to answer the phone taking those now-lost ads, and room for prepress operations to prepare ads that now come in as PDFs, and at lots of papers, alas, room for now-laid-off copy desks to prepare the next day's paper, city by city. You can stick most newspapers' local operations in a small corner of an office park now,  so it's at least nice that we still need 125,000 feet plus people working at the printing plant and at our South Jersey office.

It wasn't the Internet era that caused the New York Daily News to leave the beautiful building built for it on East 42nd Street, or the Cincinnati Enquirer to depart 617 Vine (which was kind of a dump at the end) for a downtown office building. With satellite printing plants, the space they had and the way it was configured was unworkable. In some ways we should have left 400 N. Broad years ago, after we moved the pressroom out to Upper Merion, but times were good enough (and our neighborhood was just marginal enough) that we could afford for years to have large parts of the building sit idle -- a waste of space, particularly before we spun off half the building to the school district. The Internet era has pulled the Atlanta Journal-Constitution out of downtown and the Bergen Record from its Hackensack office overlooking the Manhattan skyline. The Miami Herald will lose its beautiful view overlooking Biscayne Bay soon, and the Seattle Times will move a block away to an office building it already owns  The sale of these iconic buildings will allow the newspapers' owners to pay off some debt, which is a good thing, as they can't raise the money from nonexistent classified. As various churches try to tell us, a building is just a building and not really the church. But parishioners often have a hard time with that. If a building is beautiful or holds memories, while it may not be meaningful or affordable anymore to the organization that owns it, it may be priceless to those who gather there.

I've watched a TV pilot and a movie be filmed at 400 N. Broad. I had the composing room prepare a fake front page as my son's birth announcement. I remember how important I felt the first time I was invited to a meeting on the 12th floor, where the Knight Ridder board met when it was in town. I recall walking past the loading docks under the building and seeing a man who had been stabbed lying there. Those things will become just memories, and at least I also have memories of shopping at Strawbridge & Clothier, although not on the third floor. My mother recently said, it's not that things are changing, things always change, it's that everything now changes, and so fast. But perhaps that has always been part of getting older. So we will move to Eighth and Market, and we will try to keep ourselves going, one hopes with print still being a big part of that, inshallah. Last week when the Penn State board announced at 10:15 p.m. that Joe Paterno was fired, we had to make over story after story, headline after headline, in 75 minutes to reflect the news. It was working to put out a newspaper, and yes, even today, how sweet it is to do so.

Monday, November 14, 2011

Department Store Building of ... Washington, Pa.

Washington, Pa., was not a good place for department stores. Perhaps it was too close to Pittsburgh by first the West Penn Railways and then by car; but that didn't stop Troutman's in Greensburg, similarly close to the metropolis, from growing into a large regional chain. In comparing the histories of any regionally based businesses, such as newspapers or department stores, one sees -- particularly in the second-level markets -- chances taken or not taken, dominant figures arising in one location but absent in another, and sometimes just luck, such as being particularly hard-hit by the Depression.

Evansville, Ind., had, like most cities of 100,000 or so population, a number of department stores in the late 1920s. By 1940, Andres', Bacon's and Lahr's were all gone. A local operator, Leo Schear Co., bought the Lahr's building, and Interstate Department Stores established The Evansville Store there in the early 1950s, but there was a near-total break, one that didn't happen in Fort Wayne or South Bend or Peoria or Flint. Evansville was badly hurt by the Depression, heirs to stores died at the wrong time, a women's store, deJong's, was particularly dominant in the market -- but it was just one of those things.

For whatever reason, Washington had its problems. Perhaps it was the strung-along business district, going for blocks on Main and Chestnut Streets; perhaps it was some other factor. Downtown's one big department store, such as it was, was the Caldwell Store at 26 S. Main St, which is the three-story building to the right of the taller buff-colored building opposite the courthouse. Originally the A.B. Caldwell Co., it was owned for years by his widow and children, one of whom lived in Chicago and another in New York. In the late 1920s it fell into the hands of Sankey Metzler. By 1960 it was owned by the Wohls, neighborhood-store owners from Pittsburgh who also bought a store in New Kensington, Silverman's. The Wohls quickly faded from view and the Cox family from McKeesport bought it. But Cox's was not a department store, simply a clothing store, although the Coxes did try to keep what now was Cox's Caldwell Store going as it had been. Eventually Troutman's saw an opening and went into a mall along I-70 in the late 1960s, an early small-city mall for the region.

In researching department stores I try to confine myself to downtowns. Many cities had small outlying shopping areas from the late 1890s that had department stores. Generally, these stores either stayed small or moved downtown, so the study technique works most of the time. With cities such as Camden, N.J., where downtown was strung along for blocks, or Bridgeport, Conn., where Skydel's in East Bridgeport was one of the major stores, it helps to know that going in. Washington, Pa., had such an area on West Chestnut Street that I ruled out, and thus I didn't do much about the Vera Co., which began there and moved closer to Main Street on Chestnut in the 1910s. After the Crash the Vera Co. stopped being listed as a department store and I paid little attention, but from the ads in Life magazine and elsewhere in the 1950s that told "where to get" new products in cities -- filling a page with names of local stores -- it seems the Vera Co. was the dominant store in Washington and not Caldwell's. And no, it wasn't a first name of Vera, but a family name, much like Mechanic's in Manchester, N.H., was named for a family named Mechanic and was not the Mechanics' Store or such for millworkers.

Tuesday, November 8, 2011

Is This a Corner, and Is It Being Turned

There was long a saying: Newspapers are like elephants. It may take them forever to move in a meaningful way. When they finally do, get out of the way.

The fact that the Times paywall has actually been successful -- at least in the short run -- seems to have brought people's courage back.

So read this. It's long, it's sometimes difficult, and it takes forever to get through the anecdotal lede -- but read it. And then ask yourself: Is our "digital strategy" really the right thing?

There are so many highlights here. Among them:

"In the debate over journalism’s future, the [future-of-news] crowd [Jeff Jarvis, Clay Shirky, John Paton, Jay Rosen, etc.] has had the upper hand. The establishment is gloomy and old; the FON consensus is hopeful and young (or purports to represent youth). The establishment has no plan. The FON consensus says no plan is the plan. The establishment drones on about rules and standards; the FON thinkers talk about freedom and informality. FON says “cheap” and “free”; the establishment asks for your credit card number. FON talks about “networks,” “communities,” and “love”; the establishment mutters about “institutions,” like The New York Times or mental hospitals. ... The consensus believes that reporters and editors must enter into deep, if not constant, contact with readers via social media, especially Facebook and Twitter. The consensus favors “iterative” journalism—reporting on the fly, fixing mistakes along the way—versus traditional methods of story organization, fact-checking, and copyediting; it favors spontaneity and informality over formal style and narrative forms."

"FON’s practical prescriptions—what it calls engagement with readers—have in practice devolved into another excuse for news managers to ramp up productivity burdens, draining reporters of their most precious resource, the thing that makes them potent: time." "Seeing news as a commodity, and a near valueless one (Paton above says its value is“about zero”), is a fundamental conceptual error, and a revealing one. A commodity is the same in Anniston, Alabama, as it is in Pawtucket, Rhode Island. Whatever local news is, it’s not that.

"As a consequence, fon thinkers have derided subscription pay walls as old-think by a generation that just doesn’t get it. Shirky and Jarvis, in particular, vocally dismissed The Wall Street Journal’s early successful pay wall (a then-heretical, now-vindicated decision made by Dow Jones’s then-CEO Peter Kann), then the Financial Times’s successful pay wall (financial news, somehow, is not a commodity; it’s magic), and other spot successes as anomalies. Nor did they hesitate to point to the collapse of TimesSelect, The New York Times’s early experiment in 2005.... But now look: the new Times paywall, a metered system allowing some free access, but charging for unlimited use, is working. After just four months, 224,000 users were paying for access to the paper’s website, far ahead of projections. As Advertising Age noted, combined with the 57,000 Kindle and Nook subscribers and the roughly 100,000 users whose digital access was sponsored by Ford’s Lincoln division, that meant the paper had monetized close to 400,000 online users. (Another roughly 765,000 print subscribers registered their accounts online.)"

"We can see now that the news-as-cheap-commodity argument was all along an ideological one couched in economic terms. The idea that “information wants to be free” (a partial quote of Stewart Brand, who well understood information’s value) was a catechism, a rallying cry, voiced by a certain segment of the digital vanguard. Subscription services, “walls,” don’t fit into a networked vision. It’s worth pointing out that the commodity idea gained traction only because of the generalized collapse of news-business advertising models, a collapse that had nothing to do with editorial models. This isn’t to say that the content was good or not good, only that the collapsing ad model had nothing to do with it. The problem with conceiving of news as a commodity is that it can become a self-fulfilling prophecy. If that is what you think of it, that is surely what it will become. It may be okay for academics to sell this thesis, but shame on journalism executives for buying it."

"Journalism needs its own institutions for the simple reason that it reports on institutions much larger than itself. It was The New York Times and Gretchen Morgenson, followed quickly by Bloomberg’s late Mark Pittman, who first pried loose the truth about the bailout of American International Group: namely, that it was all about Wall Street, led by Goldman Sachs. Those tooth-and-nail battles were far from fair fights—Goldman’s stock-market capitalization is about fifty (that’s “five-oh”) times that of the Times’s parent. Whether it be called The New York Times or the Digital Beagle, we must have organizations with talent, traditions, culture, bureaucrats, geniuses, monomaniacs, lawyers, health plans, marketing divisions, and ad salespeople—and they must have the clout to take on the likes of Goldman Sachs, the White House, and local political bosses." (And yes, TTPB was saying this back in 2009.)

"In the second decade of the twenty-first century—thanks in no small part to FON thinkers, including, sad to say, Rosen—journalism is now enslaved to a new system of production. Publishing is now possible all the time and in limitless amounts, forever and ever, amen. And, given the market system, and the way the world is, that which is possible has quickly become imperative. Suddenly, the “god” of the old twenty-four-hour news cycle looks like lovely Aphrodite compared to the remorseless Ares that is the web “production routine.” And this new enslavement—trust me here—hurts readers far more even than it does the reporters who must do the blogging, tweeting, podcasting, commenting, and word-cloud formation until all hours of the day and night. This is why, IMHO, journalism is great these days at incremental news, not so good at stepping back and grabbing hold of the narrative. In some circles, this is frowned upon.
"The cruel truth of the emerging networked news environment is that reporters are as disempowered as they have ever been, writing more often, under more pressure, with less autonomy, about more trivial things than under the previous monopolistic regime. Indeed, if one were looking for ways to undermine reporters in their work, FON ideas would be a good place to start:
• Remind them, as often as possible, that what they do is nothing special and is basically a commodity.
• Require them to spend a portion of their workday marketing and branding themselves and figuring out their business model.
• Require that they keep in touch with you via Twitter and FB constantly instead of reporting and writing.
• Prematurely bury/trash institutional news organizations.
• Promote a vague faith in volunteerism.
• Describe long-form writing as an affectation or even a form of oppression; that way no one will ever have time to lay out evidence gathered during extensive reporting. Great for crooks, too."

Thursday, November 3, 2011

Basements, Bars and Bad Days

So the end is here for Filene's Basement. Of course, like Borders, Filene's Basement has been lurching toward extinction for years. In the wake of the Campeau Collapse of two big department store firms, Filene's Basement -- the first basement store run as a separate unit by a department store, known for years as Filene's Automatic Bargain Basement -- was spun off as a separate company from Filene's, the Boston  store. The thought was that Filene's Basement had a national reputation for bargains and kookiness -- there were always tales of women stripping down to their undergarments in the middle of the store to try on bridal dresses -- that would make it a low-price leader. But Filene's Basement without Filene's never got past being marginal, stores opening and closing, strategies coming and going.

It goes down with its current owner, Syms, which for many years was a similar "automatic" store -- size tags were by color, for example -- that emphasized low price with limited service at a time when the department stores were doing away with their Subway Stores. Part of the problem seems to be that no one could replace Sy Syms, including his daughter. Part is blamed in this story on Bank of America. (Why not? No one likes them at the moment.) But it is also noted that Syms (and Filene's Basement) were prominent before off-price online sites, before Neiman's and Saks ran their own off-price stores, before places like Tanger outlet centers.

Schumpeterians might want to call it all "creative destruction," but sometimes destruction is just destruction. The term "creative destruction" strikes me as the flip side of the belief that "change is good" -- because change is progress. Sometimes change is just change. Something replaces what was there and we come to adapt to it and no matter what it is, some people will really like it, and so we say "it's progress." But sometimes, it's just different, neither better nor worse. If Nordstrom fights a Filene's Basement or Syms by opening  Nordstrom Rack, if people buy clothes online instead of phoning in an order (or mailing in a coupon) from a printed catalogue, you probably have some saving in costs, but really neither better or worse. It's just change and not particularly creative, except in a very limited sense of the term.

The town in which I live -- one of 22 "dry" towns in New Jersey -- will vote next week on whether to allow liquor in a question whose advocates state limits licenses to Moorestown Mall, which has fallen on hard times. The mall owner promises major renovations. As Michael Lisicky notes in "Gimbels Has It!," Moorestown Mall -- one of the country's earliest enclosed malls -- was always a second-tier mall, established because Strawbridge & Clothier would not allow any other Philadelphia department stores to join it at Cherry Hill Mall in the early 1960s, when the perception of South Jersey was changing to "affluent suburb" from "tomato fields." Lit Bros. was already in downtown Camden, so John Wanamaker and Gimbel Bros. went to Moorestown as their alternative to Cherry Hill. After the Great Macyization, both malls ended up with Macy's; Cherry Hill has Penney's and Nordstrom, Moorestown has Sears and Lord & Taylor, but Cherry Hill has clearly become "downtown South Jersey" and Moorestown seems to be sliding into dead-mall status.

Last night we listened to a conference call held by the mall's owner (which also owns Cherry Hill) on its effort to have liquor licenses allowed in Moorestown for the mall. Many people fear that somehow this will allow bars on our cute Main Street; others think part of Moorestown's perceived exclusivity comes from  a lack of liquor. Most of the people on the call spoke in support, but one asked, instead of getting, say, McCormick's & Schmick's, can't you bring in more department-store anchors? The owner essentially responded with, what department stores would those be? Any number of dead malls are a result of malls having been overbuilt because Smith & Son went into Mall A and Jones & Bro. went into Mall B. As department stores declined, one mall became the "new downtown" and the other faded, because both had the same national stores and the only reason both had been built was because Smith didn't want Jones in his mall. Throw in off-price, catalog, online and ... boom. Noncreative destruction.

The answer to "why fine dining?" is that fine dining can't be replicated on the Internet or sent to outlet centers in the middle of the Pine Barrens. Fine dining can't be downloaded or streamed. You have to go there to have it. Once you're there, maybe you'll buy something else. Even if you don't, you'll see the mall as an upscale experience rather than one step above Wal-Mart. Our restaurant critic wrote this week about how celebrity chefs have become our current stars. Certainly they come into our homes on TV the same as other stars, but the reason for their fame -- their food -- is not something that can be supplied On Demand, and thus we gain cachet from having been there or at least knowing about it. Fine dining is the opera of our times, hedonistic and fattening though it may be, because it can't be replicated on the Internet. Its exclusivity is less open to devaluation. When everything is everywhere, it has no particular value.

Which is part of the problem facing newspapers, which used to have some level of snob value because if you read them you knew more than the next guy who didn't read them. Now news is everywhere and at every time and knowing it gives you no advantage, so why pay for it? About which I can only point to the decision of my former employer Booth Newspapers to cut home delivery of four papers in Michigan to three big insert days and say: How sad. Who would have dreamed that economically bereft, blue-collar Michigan would become the test kitchen for moving all readers online? On the other hand, why not? If print newspapers are going to be, as a story about Minneapolis described them, a "premium product," and you have a state that seems unlikely to be able to afford premium products, what do you lose by dumping them? You're losing already. I remember the Grand Rapids Press when it was a daily giant in terms of number of pages -- like the Columbus Dispatch, it so dominated its region that you had to advertise in it. I see it at my brother-in-law's house and it looks like a small-town daily in terms of size. So why not force everyone to take the e-edition or just read it three times a week? If you lose half your readers as a result, you're probably making even more money. And like Syms, we seem to already have passed the era when people would moan about the loss. But creative destruction? Nah. Just destruction. Better? It might be. But it might not. In the end, though, we'll tell ourselves it is, because it makes life livable to think so.





Wednesday, October 26, 2011

Jarvis In, Jarvis Out

Those who have been longtime followers of this blog know that for whatever reason it early on became fixated on Jeff Jarvis. But there was always the question of,  OK, but he is Jeff Jarvis and you are TTPB. So you know naught and he knows much. Ergo, know thy place. (Just snipe.)

The New Republic has published a review of Jarvis' new book, "Public Parts: How Sharing in the Digital Age Improves the Way We Work and Live," written by Evgeny Morozov, who admittedly is the author of "The Net Delusion: The Dark Side of Internet Freedom." Clearly the battle lines are drawn.

To me, Morozov does a wonderful takedown of Jarvis' view that the link economy, the conversation, the very netness of the net, constitute a door into a new realm of human understanding and probable happiness. But the point is not that Morozov's views are close to mine in terms of Internet utopianism and the dark cloud it has left over businesses such as newspapers, which lost their mojo in the face of its orthodoxy of "the future," one, inevitable, inescapable, and undeniable.

The point is that this is a debate between clear points of view, without the one feeling it must cringe and apologize for its backwardness or obtuseness or whatever before daring to present its thus fatally weakened case. This review takes the position that Jarvis, Clay Shirky, Jay Rosen, Chris Anderson, etc. represent a point of view that has some validity, has many weaknesses, does not respond well to having its positions challenged, and wrongly sees itself as the avatar of The People when in fact it is largely interested in promoting some people (those who espouse it).

And yes, it may simply be coincidence that the rise of the belief in Internet utopianism followed in short order the final collapse (in most places except Nepal) of belief in communism as the expression of the will of the masses, as the rejection of the opiates of the people, as the embodiment of historically determined progress. Or it may not. But that impulse is part of human nature and has to go somewhere. As Morozov notes in asking why books like Jarvis' are so sought after by the bewildered public: "What better way to make sense of it all than to claim that the source of their perplexity is in fact a part of some inexorable historical process that has been unfolding for centuries?" Mr. Zuckerberg, there is a gentleman here, name of Marx, who wishes to talk to you.

Morozov quotes the novelist Chuck Klosterman as saying: "The degree to which anyone values the Internet is proportional to how valuable the Internet makes that person." This is true whether it is simply the Webmaster for a small organization or the prophet of what is proclaimed as an unavoidable revolution. The first is a person with a good job that cannot easily be filled; the second is, well, a prophet seeking followers. Morozov writes, "Internet intellectuals like to tell companies and governments what they like to hear -- including the kind of bad news that is really good news in disguise (you are in terrible shape, but if you only embrace the Internet, all your problems will be gone forever!)" 

In the newspaper business, unmanned by instant electronic communication -- Tony Ridder's nightmare of 1996, free online classified, having come to pass -- the prospect of a universal solution was too good to pass by. A decade later, newspapers still can't figure out what to do, as their problems continue. To which Jarvis would have an answer, and he would be partly right: You did not fully embrace the Internet. But even if they had, they would simply have had a different set of problems that they had even less experience in trying to solve. There is a difference between using a technology and surrendering in its seductive embrace.

Like anyone else, TTPB is happy to find someone with respectable credentials who upholds its position. And it regrets once telling a colleague that the Internet was "the future," as it is still fashionable in newspaper circles to say. The Internet is part of the future. There were people who hoped it would just go away, and they were pretty silly in the end. But the future is the future. The Internet does not necessarily determine or program the future, although those who see in it the New Jerusalem can tell us how they feel it inevitably must be done. We can follow that advice if we want; or we can evaluate it against other advice. Perhaps we are getting to a point where we will again see the Internet as one useful technology among many and not the long-awaited moment that makes straight of the way of the Lord, whatever Lord that is.



Thursday, October 20, 2011

At the Core

Have been on the road a lot -- last week in New Orleans for a board meeting. As in most large cities, the buildings that housed their department stores are still there, though with alternate uses. (Other than basket cases like Detroit, department store buildings tend to be reused in large cities -- it's the medium-size ones in which they are torn down because no one can think of any economic use for a big downtown building. The Zara chain not only has taken over part of Woodward & Lothrop in Washington, it now occupies the former Rinascente store on the Corso in Rome.)

The buildings of both Maison Blanche Co. and D.H. Holmes Co. in New Orleans are now hotels. It's a shame that no one will be able to experience again the quirky Holmes store, which went through interconnected buildings fronting on four streets, but good that it isn't just a large hole in the ground.

One then sees the many Target and Wal-Mart stores as well as the Macy's and Dillard's and again asks, why did these stores that dominated their markets for generations die? The answers, of course, are clear and found many places, sometimes here. But one is that they built capacity to handle a period when they were the dominant games in town, and then had trouble backing out of it when a new type of competitor -- the one-stop, single-floor suburban discounter -- became the "default" option. Newspapers have had the same problem, now spending money to shutter printing and inserting plants that in some cases they built only a decade earlier.

Most department stores faced another problem -- they wanted their customers to be, to some degree, everyone and anyone, and to that end they sold not only nearly every class of merchandise (basement stores! women's floors! the Tribout Room!) but nearly everything that was for sale except cars. Recently I was in Prince George's County, Md., which has a couple of Macy's that before the Great Macyization were branches of the Hecht Co. It was a time warp to go into these stores, which Macy's has not spent very much on -- the Marlow Heights store was like walking back into Block's Glendale in Indianapolis in the early 1960s. (Lovers of Googie architecture take note, it has an outdoor stairway with a canopy straight out of the Space Age.)  At the Prince George's Plaza store, a derelict auto center reminds that not just Sears, but local department stores did tuneups and sold tires -- sometimes at freestanding locations not in a shopping plaza parking lot. And you could still see where the garden center was, back when upscale suburban department stores also sold plants, fertilizer and mowers.

Omnia omnibus ubique -- all things for all people everywhere, as Harrods' has it. That idea created the great stores so many of us remember -- and here's a plug for Michael Lisicky's new book on Gimbel Bros., just out. When enough of all people turned away from buying all things, the weight of the department stores began to collapse them. The existence of Macy's, Sears, Penney's, Dillard's, Kohl's shows that the department store is not dead, but the department store that contained everything for everyone is long gone, and the department store that stood as a Pillar of the Community is gone as well. If Harrods truly followed its motto just in terms of the London market, it would be as dead as Simpson's of Piccadilly or Whiteley's of Bayswater. Harrods is all things for a few people -- the rich and the tourists.

Wal-Mart found out the danger of trying to appeal to everyone when, near the end of the most recent era of prosperity, it tried to draw in a more upscale shopper and found it had alienated its core users. Newspapers' institution of online paywalls to me means that at last they are realizing that they cannot be all things to all people anymore in the online world, where anyone can be everyone. They have to decide who their customers (and potential customers) are, which means realizing that 1) a lot of people will never be your customers and you shouldn't care and 2) you actually don't want as customers a lot of the people who visit your website, except to gather some low-hanging-fruit revenue until you can figure out if you can do away with it. Digital dimes will never replace print dollars, but with a defined, committed, enthusiastic customer base you can at least sell ads for digital dimes, as opposed to the digital pennies available to anyone with an open website.

Early in this blog I argued that the essential advantage of print was that it created a pipeline to the reader -- a separate distribution system apart from general dissemination -- and that we needed to exploit that. Still think so, but the apparent years of economic malaise ahead keep pressing in. Paywalls create another pipeline, and the tide seems to be turning in their favor. I remember a conversation with my managing editor back in 2002 or 2003, at which time the Times and the Post were playing chicken over a paywall. When one of them does it, she said, we will do it too. Neither did it, and the newspaper business went into years of decline while talking pointlessly about the conversation. Then the Times did it, and even though the Post did not, the newspaper business rule is that if the Times does it, it must be right. Your traffic doesn't fall off that much, and what you end up giving up is ad inventory you couldn't sell anyway. You get to know your customers and satisfy their needs instead of trying to walk down the street with a sandwich board surrounded by thousands of other people walking down the street with sandwich board. And you even see some resurgence in the print business, particularly on Sunday, from people who didn't really object to a print newspaper or paying you, but didn't want to feel like suckers for paying for something others got free.

The hardest part of this is realizing that you will never again be what you were, no matter how successful you may be. That's hard for people who have been successful to give up, particularly when they hear from longtime customers who really don't want you to change. I was talking with a colleague who came to the paper in boon times and remembered arriving at this giant operation and saying, "Wow, I have really made it." It was a wonderful time, a wonderful feeling, and no one else is likely to have it ever again. We sure don't have that sugar high anymore. But it doesn't mean you can't be successful both as a business and journalistically.

And one has to be willing to realize that long-established customers are going to hate what's happening and let you know, even though they can do nothing to make your situation better. Having heard from them in my job for years now, I realize that they'd be happy if Hecht's came back with its garden and tire centers even though they might never go there. They liked 1970 and would like to have it back. I'd like it too, but that won't get me a ride on the subway. You may have to continue to alienate some of these customers, which is really hard. There is little more pathetic than a reader in her late 80s who tells you that by dropping "Ziggy" you have taken the last bit of joy out of her life. (I do not exaggerate.) But if you continue to spend money on "Prince Valiant," which seems to now be jumping the shark by apparently having Flash Gordon appearing in a crater, just because a few people have read it for 60 years and no one else reads it, then you're the Hecht's garden store manager looking across the street at Home Depot and saying, "But they'll come back. I know they will." They're not coming back to a department store garden center after Home Depot. But they will do business with you for what you can do better. And never forget -- what we can do better than anyone else includes print.