Kennesaw State University

Robert Picard Optimistic About Journalism, Not News Bureaucracies

As part of Leonard Witt’s video series on the Future of Journalism he spoke with Robert Picard, a well respected media economist; when Witt asked him the big question about the Future of Journalism, Picard responded:

I’m very optimistic about the future of news and journalism. I’m not as optimistic about large bureaucratized organizations that have created situations that they now can’t change from very easily.

That’s a theme in these Future of Journalism interviews that has been echoed by several of the interviewees in the series, but for now let’s listen to Picard (the transcript is below the video.)

Leonard Witt: Hi, I’m Len Witt and I’m at Yale for who will pay for the messenger conference dealing with journalism; and I’m with Robert Picard. I’ll let you introduce yourself.

Robert Picard: I’m Robert Picard and I’m editor of the Journal of Media Business Studies, business school professor, former journalist, editor and publisher who went over to the dark side.

Witt: I must say he’s been writing some great stuff for a long time, about journalism economics, and who will pay for the news, etc. So what do you think the future of journalism is going to look like?

Picard: I think the future of journalism will be quite a bit different than what we see it being currently and what we’ve known it for the last 50 years or so. It’ll be smaller organizations in the long run will be involved — more specialized organizations, those devoted to specialized coverage of localities in the country. Those devoted to specialized topics such as health, or military affairs, international diplomacy things of those sorts. We will have a range of sources of information that are different from what we have today. Most news organizations up until now have tried to create a buffet of choices of news that was something for everybody and some things that many people didn’t use, and that will not be sustainable in the future environment nor desirable in the future environment, because of the way people are making choices, the way people are personalizing news selections and the way people are using modern technology.

Witt: I run the Center for Sustaining Journalism at Kennesaw State University, a university outside of Atlanta; and one of the models we are thinking about are cooperatives where we go out to people and say, “Are you interested in civil rights, social justice reporting? Will you value that enough to actually pay to be part of a cooperative and actually own that kind of journalism?” What do you think of that model?

Picard: I think there are many models that are going to come forward. Some will be commercially funded, some will be funded by foundations, some will be funded by memberships, some will be funded because people think that certain kinds of coverage just needs to be done and there’s going to be a range of these kinds of things working and cooperatives is certainly one for certain kinds of coverage where people want to see that that coverage is maintained and that certain communities or certain topics are covered in the way that they aren’t covered today.

Witt: So what do you think about the quality of journalism, and how long it’s going to take to sort of work itself out to have high quality, ethically sound journalism in the future, if we’re going to have it?

Picard: Well one has to; we start from a standpoint that I’m not so sure we have great quality right now.

Witt: Ok

Picard: But what we have to do more then anything else is discover new techniques for verifying the quality. We always had journalist that went out and talked to three, four or five sources at a crash or people that had observed an event to try to understand what went on there. Now we’re dealing with bringing in information from the public, from tweets, from other such things and we haven’t developed the techniques for deciding which is authoritative or how many of the crowdsourcing kind of things that exist is enough to begin to get a picture of what might be true and accurate. So we’ve got some issues there.

We also have to be careful in saying that the only people that are good at understanding events are trained journalist. The fact is that there are many lawyers in the courts that have a very good understanding of what’s going on in the courts. There are many specialists on science sitting at universities, working at companies and other such things that have a great deal of knowledge about science that is much beyond what any journalist would have. There are many people sitting in banks and financial institutions that have a much better understanding of those than many journalists do. So to just say because they’re not trained journalist doesn’t ensure quality is not good enough. What we have to do though is have a way of beginning to think differently about who the sources are, and making it transparent of who and what their backgrounds are and why they speak authoritatively or do not.

Witt: So I’ve been reading your stuff for quite awhile and for awhile it seemed like wow this is pretty pessimistic stuff, are you a pessimist or an optimist; what do you think?

Picard: It depends on what we’re talking about. I’m very optimistic about the future of news and journalism. I’m not as optimistic about large bureaucratized organizations that have created situations that they now can’t change from very easily.

Witt: Can you name a couple of those?

Picard: Well you can go through any of the major media companies, or especially vulnerable, The New York Times, the Tribune Company; which of course is in bankruptcy; the McClatchy Company. What they’ve done is created structures that have such high overheads, such high debt loads that it’s very difficult for them to walk away from the current models and make it work, and the only thing that they can figure to do is to do massive cost cutting that is hurting the quality of what they are doing. But they’re really not transforming themselves into organizations that are able to change very easily.

Witt: I thought the New York Times was kind of trying that, you don’t think they’re trying that?

Picard: They’re trying, but they’ve gone….. Essentially what they’ve done, all the changes that they’ve done in the last two years, and they’ve done some serious changes; selling their building and lease back arrangements and other such things have helped them pay debt down a bit. But they’re still carrying huge loads of debts, with huge organizational structures, with huge numbers of bureaus, with huge numbers of journalists doing lots of things. They’re going to have to think whether that is going to be enough to do what they want to do. I think what’s going to happen with many of these news organizations, they’re going to have to become much more focused on what they cover and how they cover it. The New York Times for the nation at least has been a critical component for international and national news coverage. For people living on Manhattan it’s been an important part of local news for them. We in the rest of the country see them for other kinds of functions.

Witt: Yeah but you know I was talking to somebody, who in Kentucky heads the rural journalism project, and he asked me who covers the rural America better than anyone else.

Picard: Who covers rural America? That‘s a really good question.

Witt: And it was The New York Times.

Picard: And it might be. It might be, but these are things that one has to decide. What do we do best and what can we do. Do we have to have all the food columnists? Do we have to have all the people covering entertainment news? Do we have to have all of the people covering sports the way we do? Different companies are going to come to different answers to that depending on what they do best and the roles that they serve for their readers.

Witt: Well my own feeling about The New York Times has always been if you want to join the middle class you read The New York Times because they’ll tell you what food to eat, what restaurants to go to, what books to read, what movies to see, and what you should be thinking in many ways. It is an entrée into a certain tribe of people around the country.

Picard: Most certainly it is. There is no question it is, but The New York Times is not the average American newspaper.

Witt: Right, of course.

Picard: And that becomes the real problem. We’re talking about the New York Times, the Washington Post, and we’re talking about the Los Angeles Times, the Atlanta Journal-Constitution, and the Chicago Tribune. We’re talking about unique institutions that play roles far beyond their local communities; the majority of newspapers and the majority of television station news operations are really local operations, and they have a different set of opportunities. They have a different set of problems than the large metropolitan papers do, and the large metropolitan papers have a whole set of problems that are different from the local papers.

Witt: Great! Thank you very much.

Magazine sales take a nosedive

Magazine sales took a nosedive at the newsstand…down 9% overall in the 2nd half of last year.  Newsweek, Time and W  lost 35-40%.   Silicon Alley’s Business Insider says publishers are looking at the iPad and other tablets to get them into the big online newsstands so they can recover these losses.   The story comes with a nifty chart that pretty much says it all.

 

Pay walls going up

The Intelligencer Journal-Lancaster New Era in Lancaster, Pa., is one of the first handful of news outlets planning to use a software system developed by Steven Brill, L. Gordon Crovitz and their partners, called Press+. Others include The Fayetteville Observer in North Carolina and Global Post.  As the NY Times reports, a move to charge for content means not a single decision, but dozens. With Press+, sites can let nonpaying readers see the top of an article, while only paying readers see the whole thing.   Sites can allow unlimited reading of certain articles, while charging for others or charge by the month or by the click.  They can also limit free reading to a certain number of articles a month, treat readers differently depending on their location, charge a single price or have a tiered system, give print subscribers free access or charge them, too.  Let the experimentation begin!  –Harold Lewis

Journalist trapped in NY Times elevator breaks news on Twitter

NBC’s Ann Curry and Internet entrepreneur Jeff Pulver were leaving a panel discussion on new media and Haiti, when they got trapped in an elevator at the New York Times building.   Curry pulled out her mobile and broke the news on Twitter.   Read the hilarious account on Gawker, which calls it “the most thoroughly documented elevator entrapment ever.”    Phil Thomas was there, too.  He’s the founder of Pegshot, a mobile video-sharing platform, where you can see a video account of this made-for-the-web incident.  

Survey: Potential Tablet App Developers Think Business Apps Over Games

Of course, everyone is all atwitter about the soon to be released new Apple tablet and that excitement apparently includes app developers. Jeff Haynie and his folks at Appcelerator did a survey of about 500 of its 18,000 developers. According to the survey, the developers anticipate building tablet apps in this order: Business/Productivity, Entertainment, Social Networking, Education, and Games. That’s different from the iPhone where the Top iPhone Store Apps are: Games, Entertainment, Books, Education and Travel.

Here is why the folks at Appcelerator think this is important:

Games have held the top spot since the launch of the iPhone. While no one doubts they’ll continue to be a hot seller, it is notable that new categories rank so highly. Some respondents wrote that with a rumored built-in camera, the Apple Tablet could spur new growth in video conferencing and video social networking. Many developers see the classroom as a huge opportunity, while the larger screen interested others in business scenarios, especially in the areas of finance and medical applications.

You can read the full report here.

Plus you can see an interview Scobleizer conducts with Haynie below:

Full disclosure: Haynie was an original founder of SoCon07 with Sherry Heyl and me and Appcelerator is one of our sponsors. More important than that is he will be at the SoCon10 Friday night dinner and be a moderator on a breakout session on apps on Saturday. Plus, Haynie and Appcelerator and the Center for Sustainable Journalism will be hosting an app building workshop at Kennesaw State University on April 24-25 entitled:

Develop Mobile Apps Using Your Web Skills – Develop native apps for iPhone and Android using your Javascript and HTML skills.

* Use your web skills: Use your Javascript and HTML skills to develop mobile apps.
* Develop for multiple platforms at once: Use a solution that allows you to create for multiple platforms on one codebase. At a minimum, you need to support the iPhone and Android platforms to stay ahead of the curve.
* Reduce your development time: Using web technologies is an order of magnitude faster than Objective-C or other mobile languages. Reduce the typical 6 month app development timeframe down to 2-4 weeks for almost any project.
* Regain control: Keep your clients talking to you about their mobile campaigns, not a job shop.

Want more details, send an email to csjinfo@kennesaw.edu — Put Apps Development in the subject line. If you are now or want to be an app builder, mark your calendar. This is big.

Big bonus controversy hits Newseum and Freedom Forum

Top executives at the non-profit Freedom Forum and Newseum got $1.4 million in bonuses in 2008 – a year when the foundation’s endowment lost millions, and the museum began layoffs.  The story comes from a former USA Today editor who writes a blog about the Gannett company and former CEO Al Neuharth, founder of the Freedom Forum.    

IRS records show a bonus of $375,000 went to Freedom Forum Chairman and CEO Charles Overby, bringing his total pay package to $991,044.  The Newseum’s then-president, Peter Prichard, got a $225,000 bonus, for a total income of $665,927. 

The blog paints an unflattering picture of a non-profit that celebrates freedom of the press, at a time when nearly 36,000 journalists have lost their jobs at media companies across the country.

NY Times to try new pay wall plan

The New York Times is ready to jump back into the pay wall business.  New York Magazine reports a final decision could be days away.  The Times is likely to adopt the metered system, where readers can look at a certain number of free stories before being asked to subscribe. 

The Daily Intel column speculates that Times Chairman Arthur Sulzberger, Jr. may strike a content deal with Apple for it’s new tablet computer, which is expected to launch later this month.

McChesney, Nichols Advocate Government Help to Save Journalism

Robert W. McChesney and John Nichols discuss their new book The Death and Life of American Journalism: The Media Revolution that Will Begin the World Again with NOW’s David Brancaccio “about the perils of a shrinking news media landscape, and their bold proposal to save journalism with government subsidies.”

They discuss the idea of providing citizens with vouchers with which individuals can then decide where to place their money. The 23-minute video is worth watching.

A preview of the book appeared earlier in the Nation, including these key passages:

Our founders never thought that freedom of the press would belong only to those who could afford a press. They would have been horrified at the notion that journalism should be regarded as the private preserve of the Rupert Murdochs and John Malones. The founders would not have entertained, let alone accepted, the current equation that seems to say that if rich people determine there is no good money to be made in the news, then society cannot have news.

Here is more:

The founders regarded the establishment of a press system, the Fourth Estate, as the first duty of the state. Jefferson and Madison devoted considerable energy to explaining the necessity of the press to a vibrant democracy. The government implemented extraordinary postal subsidies for the distribution of newspapers. It also instituted massive newspaper subsidies through printing contracts and the paid publication of government notices, all with the intent of expanding the number and variety of newspapers. When Tocqueville visited the United States in the 1830s he was struck by the quantity and quality of newspapers and periodicals compared with France, Canada and Britain. It was not an accident. It had little to do with “free markets.” It was the result of public policy.

Here is another piece of their argument which is worthy of deep thought for those of us, including me, who are deeply worried about government subsidizes of the news media:

But government support for the press is not merely a matter of history or legal interpretation. Complaints about a government role in fostering journalism invariably overlook the fact that our contemporary media system is anything but an independent “free market” institution. The government subsidies established by the founders did not end in the eighteenth–or even the nineteenth–century. Today the government doles out tens of billions of dollars in direct and indirect subsidies, including free and essentially permanent monopoly broadcast licenses, monopoly cable and satellite privileges, copyright protection and postal subsidies. (Indeed, this magazine has been working for the past few years with journals of the left and right to assure that those subsidies are available to all publications.) Because the subsidies mostly benefit the wealthy and powerful, they are rarely mentioned in the fictional account of an independent and feisty Fourth Estate. Both the rise and decline of commercial journalism can be attributed in part to government policies, which scrapped the regulations and ownership rules that had encouraged local broadcast journalism and allowed for lax regulation as well as tax deductions for advertising–policies that greatly increased news media revenues.

Text messages raise $5 million for Haiti earthquake victims

Disaster fundraising has hit a new record using mobile texting and social media. In just 24 hours, the Red Cross has raised more than $5 million for Haiti quake relief efforts, solely through text messages that are going viral on Twitter and Facebook.  The Red Cross calls it a record for mobile giving.  People are donating $10 at a time by texting HAITI to 90999 on their cell phones.  The charge automatically shows up on their bills. 

ABC News reports the White House is promoting the program through government websites, Facebook and Twitter.   CNN reports “Help Haiti” tops the Twitter list, and many celebrities are using their Twitter feeds to ask for donations.

Rubicon project seeks greater revenues for online publishers

A huge amount of unsold online advertising inventory is typically bought cheaply by online ad networks who then auction it off at even lower prices, depressing CPMs and reducing revenues for online publishers. A Los Angeles based technology company, Rubicon Project, is trying to change this process. According to Forbes,  Rubicon is building a system that automatically matches ad inventory to high bids on ad networks and advertising exchanges. If Rubicon is successful, publishers hope to sell their online ads at CPMs (i.e. prices) 60% to 300% higher than they do now. If the Rubicon experiment fails, additional business models may arise, more media outlets could fold and/or more consumers could be forced to pay for the news they read online.  After less than two months, Rubicon has signed up 30 of the Web’s larger digital publishers including Time Inc., Hearst, Media News Group, and Tribune.   -Harold Lewis