Most adults still read newspapers

A new Scarborough Research study has found that 74% of adults (about 171 million) in the U.S. read a newspaper in print or online during the past week. The percentage is even higher among affluent folks. Yet, newspaper companies continue to struggle to find new revenue streams and are still shedding jobs.

The newspaper business seems to be one of the few industries that produces a product (credible information) that people want and routinely use, yet it still can't seem to financially right itself enough to satisfy boards of directors and nervous investors. Despite massive layoffs and other cost-cutting measures that have watered down content, profits remain flat because of the lack of advertising due to the recession. Circulation is down because of free news offered online, but circulation is not the main source of revenue for most papers.

However, one must keep in mind that newspapers historically have outperformed many other businesses in terms of profit margins. Journalists are generally paid a lot less than comparably educated folks. Most newspaper buildings are modest to say the least. Amenities and perks are few except at the largest media companies.

People go into journalism for various reasons, but money is generally not high up on the list. When a journalist loses his or her job, it's extra painful because it's unlikely that they have accumulated enough savings to ride out an extended storm. And we are in the mother of all storms right now.

What some papers are experiencing in this recession are margins more in line with other industries. The panic, which has included thousands of layoffs, does not seem to be as warranted as some might think.The companies carrying the most debt are the ones in the most trouble. Laid-off workers are paying the price for the mistakes made by people at higher pay grades. But some of the smaller chains are getting by because they did not overspend during the good times. Many newspapers, big and small, are still profitable. If you didn't follow the business closely, you might think newspapers were like certain automakers, losing millions every week. That simply is not the norm for most publishers. Some newspapers that were hurting the most have closed their doors. But most live on.

There is a necessary transition more than an extinction going on in newsrooms, but tell that to people, like myself, who lost their jobs after 20 or 30 years and are struggling to find new ones. I support that transition to digital-news gathering and high-tech delivery systems, but loathe the way some companies are going about it.

After the loss of so much institutional knowledge via layoffs, one has to wonder what condition the business will be in when the smoke clears. Will readers still be there if content becomes less credible? Will investigative reporting be deemed as too costly? Will journalism schools bother teaching the basic principals of fair reporting and artful photo editing, or will they just offer courses in how to design web sites and sell pop-up ads? Will journalists have some life experience and perspectives that enrich their stories, or will everyone over 50 be forced out of newsrooms? Will front pages become massive advertisements? As a side note, I always found it admirable that Google refuses to put a single ad on its home page. They see creative and marketing value in keeping the page pristine.

I am convinced that for news products to remain viable, the basics need to be taught in universities and on the job by seasoned journalists. Just as an astronomer needs to understand math, a web designer better receive some instruction on libel, story editing, headline writing and freedom of information laws. Those building blocks help form strong news products that distinguish themselves from supermarket tabloids and off-the-wall blogs. I fear some decision-makers are losing sight of that and are therefore their own worse enemies in terms of ruining newspapers.

Whether the news is in print or online, content is a valued product that takes a diversity of talented people to produce, design and sell. When I see organizations like The Associated Press laying off a 70-year-old photographer, as it recently did, I fear something other than a paycheck is being lost. Many newspapers try hard to acquire ethnic and racial diversity in their workforce, but seemingly do little protect older workers anymore. It wasn't always that way.

The Scarborough study proves there is still an appetite for news. Walk into almost any coffee shop or onto any commuter train and you will see people reading the paper. It's up to industry leaders not to wreck the business while trying to survive the recession. If traditional companies continue on the path of torching everything in sight in order to improve bottom lines, I believe media startups will spring up to satisfy the public's need for news -- online, on Kindles and iPhones, and yes, even in print to some degree.

Newsprint still works for historic events

The Killeen Daily Herald set single-copy sales records in the aftermath of the Fort Hood shootings last week. You hear this quite often, after a tragedy or other big news event, that newspapers still sell out quickly. A Yankees World Series win meant big sales for the New York papers. Last year's presidential election was a banner day for national print publications like USA Today.

Yet, we also hear that the newspaper business is dying. Being a layoff victim of that industry, I often feel there is no future for print publications. But then along comes these big news days and customers flock to the stands to read all about the good, bad or ugly. And while readers also go the the news web sites, they seem to have a insatiable desire to feel paper in their hands when it comes to historic events.

I think there is a lesson for publishers and journalists in this phenomenon.

Working smart more important than ever

Reflecting on the YouTube video on my previous post, one of the biggest challenges for newspapers is in continuing to publish the revenue-producing print products while creating online versions that are attractive to readers and advertisers. Newsrooms essentially have to pull double duty with fewer people because of all the layoffs and cutbacks in recent years. Not the best environment to spawn innovation. Yet, it has to be done in order for big and small media companies to survive and thrive in the future. And it has to be done fast because the old model is failing.

How does any company build a new product when the old product still exists? Imagine suddenly making a car-repair place fix cars and planes, with no new staffing and minimal training. The difference between online and print news products are often that stark. Gathering content for each has enough variations to require training and additional skill sets, not to mention time. Most newspaper folks will tell you they were stretched 20 years ago, before having to concern themselves with the web. So no wonder the stress level in newsrooms these days is off the charts.

Working smart is more important than working hard. I've always believed that. Those newspaper publishers and editors who subscribe to that belief will probably survive. Those who think everyone can work 70 hours a week and everything will be fine, well, they probably won't last much longer.

Music died for print monopolies

Sadly, journalists will appreciate this video:

http://www.youtube.com/watch?v=6CqRcCHk_Pc

Digital is hammering print in the news business, and still some companies don't get it. The more stubborn mega-media companies are being brought down by dudes with funny haircuts and iPhones.

With that said, I do believe print journalists have many desirable skills that can transfer to digital platforms. It's just a matter of getting on board and working for a company that understands the benefits of moving to digital. Too many papers are wasting too many resources trying to keep print alive. Print should be a billboard, sort of speak, to promote web sites and other electronic delivery systems. But the real money and time investments must go into web site development and marketing, not in cutting down more trees and delivering a product that is yesterday's news.