edithhopegardenjournal

The sales of the Washington Post to Jeff Bezos and the Boston Globe to John Henry raise the question why people would want to own newspapers if they aren’t doing so for obvious financial gain.   There are clearly people who want to own papers for political purposes so they can directly influence debate and policy.   This is certainly the case for the ultra-conservative Koch brothers, who have been trying to buy the Los Angeles Times  this past year. But Bezos and Henry don't seem to fit that mold.   Bezos’ purposes for buying the Post are not the pursuit of profit. He certainly would produce better returns putting more effort into Amazon or another commercial firm. John Henry can expect far more returns from effort in his investment firm or his sports empire than the Globe . So why are they buying legacy media?    The answers lie in human traits.   All of us need diversions. We need toys to play with; things to spark our interest and ...

U.S. newspapers are increasing their use of co-opetition practices, that is, cooperating with competitors to reduce costs, create synergies, or reduce risk in new markets. Such activities are permissible if they are not designed to create cartels or control prices for advertising or circulation. The latest example occurred this week when the Boston Herald announced an agreement with the Boston Globe for its competitor to print and deliver the Herald . The move creates cost savings for the Herald by allow it to cut printing, trucks, and delivery personnel, while simultaneously creating production and distribution economies and an additional revenue stream for the Globe --a win-win for both companies. Such service agreements do not violate antitrust laws because the papers remain independent, set their own prices, and create their own content. If papers were to engage in such actions they would have to apply for an antitrust exemption under the Newspaper Preservation Act (see John C...

There is one upside to all the advertising disappearing from newspapers……Consumers can now really see what they are paying for. Opps, that’s a BIG downside. With the effects of economic downturn clearly hitting retailers everywhere, they have slashed their advertising budgets and are advertising as little as possible. For the first time in my lifetime it means you can turn several pages in many newspapers without seeing an advertisement. When I read the Boston Globe on Tuesday (January 7), it essentially had 2 pages of ads in the 10-page A section, 3 pages of ads in the 16-page B section, and 1 page in the 8-page C section. It had no ads on page 1 (although it has been announced they will start doing so soon) and the daily classified section is no longer being published on weekdays. What was left was editorial content. Unfortunately, what was there wasn’t pretty. In reading the paper I realized that about half the stories were from news agencies and services and that I had read many of...