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Nieman Journalism Lab
Nieman Journalism Lab |
| This Week in Review: The new iPad mini and Surface tablets, and a BBC scandal hits the Times Posted: 26 Oct 2012 08:10 AM PDT
Reaction from market analysts (rounded up well in this Fortune piece) was generally pretty positive, though tech writers were a bit more skeptical. Several of them noted that Apple has ripped the 7-inch size in the past, with Fast Company’s Mark Wilson arguing that the iPad mini is simply market defense from Apple, rather than its typical iconic product. Likewise, Slate’s Farhad Manjoo praised Apple for getting updated products out so quickly but wondered why Apple’s getting into the 7-inch tablet market in the first place, and whether people will pay a premium for a type of device whose chief virtue so far has been its cheapness. But Reuters’ Felix Salmon said Apple isn’t actually concerned about its 7-inch competition, because its customers are deciding not which 7-inch tablet to buy, but which iPad to buy. Zach Seward of Quartz reported that Apple will primarily market the iPad mini to women, as a device that can comfortably fit inside a handbag. Meanwhile, Poynter’s Jeff Sonderman said designers will have to decide if the 7-inch size mimics the phone experience, the tablet experience, or is something new altogether. The second device that made a debut this week was Microsoft’s Surface tablet, which arrives at the opposite end of the tablet market — not somewhere between a phone and tablet, like the iPad mini, but between a tablet and a laptop. Reviews on the whole (summarized here by The Guardian) were pretty negative for Surface. A few highlights: TechCrunch’s Matt Burns said it’s really not a tablet, but a PC (for a post-PC world). The Verge’s Joshua Topolsky asked, “If this device is not as good as (or better than) the best tablet, and not a complete alternative to a laptop — who is this for? What is it supposed to be?” Gizmodo’s Sam Biddle said Surface holds out the promise of a tablet that’s truly oriented toward getting work done, but isn’t there yet. And in a positive review, Wired’s Mat Honan said Surface is the first tablet that you could use as your only computer.
Poynter’s Andrew Beaujon has a good quick primer on the case, and The New York Times has a fuller introduction to it, but here’s the gist: An investigative report into Savile by the BBC program Newsnight was killed late last year, and Newsnight editor Peter Rippon’s blog post this month explaining why was called inaccurate by the BBC. This prompted Rippon to “step aside” this week, as the BBC’s investigative program Panorama also ran a critical episode examining Savile’s behavior and the decision to kill the Newsnight report, including the accusation that it was dropped based on pressure from BBC higher-ups. Meanwhile, BBC director general George Entwistle was questioned by Parliament this week and also announced that the BBC is investigating up to 10 other serious sexual abuse allegations against other employees. So what does this have to do with The New York Times? Well, Entwistle’s predecessor as BBC chief, Mark Thompson, is about to take over as the Times’ CEO. Thompson reiterated to Times reporters that he didn’t know about the Newsnight report until after it had been killed, as Times public editor Margaret Sullivan proposed that “it's worth considering now whether he is the right person for the job, given this turn of events” and urged for tough Times coverage of the issue. Times publisher Arthur Sulzberger Jr. reaffirmed his support for Thompson, but Sullivan’s questions raised considerable attention from British outlets such as The Guardian and Reuters, as well as praise from GigaOM’s Mathew Ingram. Thompson, for his part, said he expected and welcomed the scrutiny from the Times and the BBC, though Reuters’ Jack Shafer said he may end up being nailed in the scandal even if he had nothing to do with killing the Newsnight program.
The postmortems on Newsweek and its fellow newsweeklies also continued. Michael Learmonth of Ad Age argued that far from complementing Newsweek, The Daily Beast undermined it, saying, “What TDB and its ilk offer — original writing from a few big names mixed with aggregation-with-attitude — turns out for many readers to be a just-good-enough substitute to a newsweekly.” At Vanity Fair, Jim Kelly made the case that Newsweek fell in part because its audience is no longer looking for institutional, authoritative voices on culture and politics. The Columbia Journalism Review’s Ryan Chittum and Ad Age’s Simon Dumenco both argued that magazines aren’t doing nearly as bad as they’re made out to be. Magazines and online publishers are facing the same difficult ad market, Dumenco said, but magazines have to turn real revenues, rather than simply relying on venture capital. Reuters’ Felix Salmon countered that magazines may be better than startups at throwing off profits, but they’re still a risk, and “the uncertainties of digital ultimately trump the storied legacy of print.” Meanwhile, a couple of other magazines made some digital-centric changes: Time switched to the mobile-oriented responsive design, and MIT Technology Review relaunched as a “digital first” publication. New newspaper prospects for Murdoch: The Tribune Co. is about to emerge from bankruptcy, and one of the buyers looking at its two biggest newspapers, The Los Angeles Times and The Chicago Tribune, is Rupert Murdoch’s News Corp., according to a report from the Times itself. News Corp. denied the report. Jeff John Roberts of paidContent argued that buying the Times and Tribune wouldn’t make much business sense for News Corp., despite the economy of scale they would provide alongside The Wall Street Journal. Murdoch would need to add revenue streams in a hurry with those papers due to the impending spinoff of News Corp.’s news properties, Roberts wrote. At the Lab, Ken Doctor argued the opposite — News Corp.’s coming news/entertainment split makes it easier to buy those papers, not harder. With it, he said, Murdoch can go back to focusing on acquiring papers as political capital, as he’s done for decades, and the bankruptcy offers a bargain-basement price. Elsewhere on the News Corp. front: There are now allegations that its papers weren’t the only ones involved in hacking people’s phones — complaints have been filed against papers from its rival, Trinity Mirror. Reading roundup: Here’s what else has been going on in media and tech this week: — The New York Times Co. reported a surprising loss for the last quarter stemming from lower-than-expected ad revenues, prompting a steep drop in its stock price. GigaOM’s Mathew Ingram critiqued the Times’ online revenue strategy, and paidContent’s Jeff John Roberts asked a few questions about its future. — A few political media notes as we near the home stretch of the American election season: At The New York Times, Thomas Edsall argued that Mitt Romney could be paving the way for secrecy (especially toward the press) to become the norm in presidential campaigns. President Obama’s campaign released the transcript of an off-the-record conversation with The Des Moines Register editors after they publicly complained that they wouldn’t allow the talk to be on the record, though The Washington Post’s Erik Wemple was skeptical about the episode. And Poynter’s Amanda Hess wrote a thoughtful piece on reporting on memes. — Norwegian media commentator Martin Bekkelund wrote of a friend who had all of her Amazon Kindle books deleted by Amazon without warning or, really, explanation. Simon Phipps found the backstory (she bought a Kindle in one country and ended up transferring the account to another Kindle she bought in another country). Amazon restored her ebooks, but not before BoingBoing’s Cory Doctorow, Techdirt’s Mike Masnick, and GigaOM’s Mathew Ingram condemned its actions. — Poynter held a workshop in New York this week on digital ethics; you can see videos and a Storify of it on Poynter’s site. Social media researcher Danah Boyd published her talk on fear in an attention economy in essay form on Poynter, and Craigslist founder Craig Newmark published his at The Huffington Post. Forbes’ Jeff Bercovici disagreed with him, and GigaOM’s Mathew Ingram also wrote about the panel. — Finally, a couple of interesting Pew studies released in the last week: One on social media and political engagement, and one on young people’s reading habits. Photo from John Bradley/Wired used under a Creative Commons license. |
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Nieman Journalism Lab
Nieman Journalism Lab |
| BuzzFeed adapts its branded content approach to political advertising, and Obama’s in Posted: 24 Oct 2012 10:03 AM PDT
More specifically, native, BuzzFeed-y, campaign ads. This month Obama for America became the first political campaign to advertise on BuzzFeed. The Obama for America content consist of campaign videos on pages that look similar, if slightly less busy, to most posts on BuzzFeed. One exception is the pages come with more overt labeling, spelling out that it’s “Paid Political Content” for readers. But it’s more or less political ad content adapting to the form, taking the same approach BuzzFeed uses with companies like like JetBlue or Virgin Mobile. For a company discovering its footing in the world of journalism, political ads represent an important step. BuzzFeed’s beefed up its reporting staff, adding a bureau in Washington D.C. and most recently expanding to Los Angeles. As an avenue for original reporting, BuzzFeed has quickly made a name for itself. It’s also a site that attracts a massive amount of eyeballs, regardless of whether it’s words, GIFs, or ’90s TV icons on the page. “It’s more than exciting to have the presidential campaign advertising with us,” Jon Steinberg, BuzzFeed’s COO, told me.
Steinberg said the Obama campaign approached BuzzFeed about advertising on the site, which now has six video-centric posts. (Jay-Z is involved. Also, “binders full of women.) For campaigns, the process for creating a sponsored post is similar to any other brand, Steinberg said. Companies either have their own message for a series of posts, or they work with BuzzFeed’s advertising team to develop an idea. Obama’s simply embedding campaign videos it already has on YouTube. Spokespeople for the Obama for America campaign did not return requests for comment. Steinberg said political campaigns are a natural fit for the more narrative, content-driven advertising BuzzFeed does. “For campaigns, it’s relatively easy: They have something they stand for, they have something they want to say, and they have a specific message they want to get out,” he said. But BuzzFeed, potentially, represents more than another destination for advertising. The goal of BuzzFeed content is to thrive outside the website, to be easily readable on mobile devices, and to spread on Twitter and Facebook. For campaigns, that could help extend their reach on social media, which has steadily gained prominence in elections. (It should be noted, though, that the Obama BuzzFeed ads don’t seem to have gotten much social media traction at all. Most show tweet counts in the single digits, although some did slightly better on Facebook. For instance, this BuzzFeed ad, featuring a video pushing voter registration, shows just 2 tweets and 28 likes. The embedded YouTube video itself, though, shows 431 tweets, separate from its BuzzFeed wrapper.) For most news organizations, political ads are significant for the dollars they can bring in. Gannett, for example, saw a rise in their revenue and profits in their most recent earnings report, largely because of political ads (although almost entirely on the TV side). Election ads are a cash bonanza for news companies, and this year some are estimating more than $1 billion will be spent in campaign ads. This is more good news for BuzzFeed, which is experiencing some success with its new format for advertising. Though the company won’t talk specifics when it comes to advertising numbers, CEO Jonah Peretti told The Wall Street Journal advertising revenue is beginning to finance more of company’s growth. In our conversation, Steinberg said revenues for BuzzFeed are on track to be three times higher than last year. With election day two weeks away, the window is closing on campaign advertising. Steinberg said he hoped BuzzFeed would secure more political ads, but said the company is still ramping up its advertising and editorial departments. Building recognition for BuzzFeed’s political reporting can only help its prospects as a place for political advertising, he said. “We’ve only had big traction with brands in the last nine months or so,” Steinberg said. “Looking forward, there’s a lot we hope to do in Washington.” |
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Nieman Journalism Lab
Nieman Journalism Lab |
| NPR CEO Gary Knell: We need to “smash together the digital and so-called audio journalists” Posted: 23 Oct 2012 08:00 AM PDT After stepping into the big chair at NPR almost a year ago, Gary Knell says one of his first priorities was to “smash together the digital and so-called audio journalists.” That’s less of a violent collision and more of vision statement about NPR’s future. Speaking at the Nieman Foundation last week, the NPR CEO said “we should eliminate these distinctions. Because, really, the audience doesn’t view news that way anymore.” When Knell joined an NPR that was fresh off a scandal that claimed several executives (including the previous CEO) and cast a cloud over funding from federal and private sources. In a scenario like that righting the ship would seem to be the first job. But Knell said he wanted to continue to push NPR to innovate while stabilizing its support network. The two go hand-in-hand, Knell said. In order for NPR to not just survive but grow, they’ll need to keep delivering news and other programming that can’t be found elsewhere on all platforms. Staying competitive in the broader radio and news landscape is how NPR will ensure its sustainability, Knell said. “If you’re just serving up fare that the marketplace is also serving up there is no reason for a public subsidy. And that’s just true, in general, of anything in my opinion,” Knell said. In the last year NPR has been active in developing new tools such as the Infinite Player, worked with Ford on an NPR app for Internet-connected cars, and invested in a news apps team. Knell said they’re also trying to expand their audience on the local and national level. NPR is currently filling out its team to cover race and ethnicity, which was made possible by a $1.5 million grant from the Corporation for Public Broadcasting. They’re also focusing on supporting member stations whose roles are changing as other media decline within their community. “I’m very devoted to the idea that media is the most powerful teacher that’s ever been invented,” he said. “Maybe that was drummed into my head at Sesame Street.” Above you’ll find video of Knell’s conversation with Nieman Foundation curator Ann Marie Lipinski. Note: Audience questions in the Q&A portion were off-mic and have been edited out of the video; you’ll be able to understand what was asked from Knell’s answers. |
| The newsonomics of Rupert Murdoch, American publisher Posted: 23 Oct 2012 07:00 AM PDT
State governments finally cracked down on Amazon’s sales tax exemption, and Jeff Bezos found a workaround: same-day-delivery of retail (“The newsonomics of Amazon vs. Main Street”). European governments and the European Community have tried every which way to crack down on Google, and still Larry Page has found a way to continue to dominate the continent’s digital business. Scotland Yard, Parliament, and the Guardian have exposed the crimes and abuses of journalistic power of News Corp. in the U.K. — and now it looks like Rupert Murdoch may be moving the family — lock, stock and barrels of ink — to the U.S. Of course, it would be hyperbole to compare the move of the Murdochs, père, fils and the rest of the brood, to the Corleones. In that case, it was son Michael, seeing the difficulties of doing business in New York who moved the family enterprise to Vegas. In this case, it’s father Rupert — who became an American citizen in 1985 in order to buy into the TV business — who is paving the way. It’s son James, now taking over direction of the Fox Networks Group, who is taking firm control of the western move. It’s the 2010s now, not the 1950s. Oh, and one’s fiction. Power now can be exercised far more subtly. Yes, London has become inhospitable to the Murdochs, pushing him to vow to invest in the U.S., his comments not so much sour grapes as a recognition of reality. He could lie low and try to regain the awesome sway he once held over U.K. media, but that will take time. Besides, America is still the power of this century, with Britain in relative decline. Why not build the next generation of business in the U.S. — and build political power far beyond the programming of Fox News and the editorial pages of The Wall Street Journal? It’s not a new trend, but one that’s been building over the past year. It is within that context that we can place Rupert’s L.A. Times reported (“Rupert Murdoch, other potential buyers eye L.A. Times“) and Reuters-confirmed interest in two of the most distinguished nameplates in the American journalism, the Chicago Tribune and the Los Angeles Times. News Corp. denied the interest over the weekend, but the story, backed by multiple sources, says the Times is more than plausible. While it is undeniably true that the U.S. metro dailies are the sickest specimens in the global newspaper trade, Murdoch’s interest in the press is beyond any immediate market value and often beyond long-term market value as well. The newsonomics of this potential deal go well beyond dollars and into the murkier count of political capital. Given what democratic havoc the Murdoch empire wrought in the U.K., and the fact that it dominates the Australian press (with 70 percent ownership of the daily trade), it’s not too early to push into the open the question of who might buy these papers. Murdoch’s game is the long game, and his long, wily career has shown his patience. Now as the U.S. newspaper industry continues its breathtaking implosion — and its under-covered shifts in ownership — it’s a perfect time to pick up both prestigious names and the influence that still accompanies them. That’s the landscape into which the Tribune auction of newspaper properties will enter. That auction is already quietly in process, as we wait for the Federal Communications Commission to okay the transfer of Tribune Company broadcast licenses to the three owners — investment companies Oaktree Capital and Angelo Gordon and bank JP Morgan Chase — approved by the bankruptcy court. Pending FCC approval, the final end of the Age of Zell should come before year’s end. While newspaper stocks have enjoyed a nice run-up, you can still pick up papers the size of The Tampa Tribune for the price of the best real estate in town (“The newsonomics of near-term numerology”). Tribune’s own market assessment of all its eight newspaper properties, part of the bankruptcy proceeding, came in at $623 million, compared to $2.85 billion for the broadcast business. Without competitive bidders, that amount may be optimistic. With competitive bidders — especially in L.A. and Chicago — it may be low. For round numbers, let’s say a competitive bidding process prices the Chicago Tribune and L.A. Times at a combined $600 million. That’s a pricey number given the cash flows of the two papers, especially given that those meager cash flows have only been achieved with continuous cost-cutting. It’s an above-market price, and the owners would need a heedless-to-market buyer to pay it. Enter Rupert Murdoch. He won his prized Wall Street Journal and Dow Jones from the Bancroft family. He paid $5.6 billion, and then wrote down about half that value within a couple of years. He knew he was overpaying — but it was what he needed to do to get what he wanted. So, first question: Can Murdoch buy these papers? Well, he’s got the money and control of News Corp., even if investors have been making increasing fuss over that family control. The company should end the year with cash of something less than $9 billion after it completes planned Foxtel TV acquisitions in Australia. There is the little matter that News Corp. is in the process of splitting in two. Pressured both by Hackgate and those restless investors tired of the drag the newspaper holdings were having on profits, Rupert agreed to split News Corp. into two companies, one essentially TV- and entertainment-oriented and one largely newspapers. That split, though, isn’t scheduled until roughly mid-2013. The Tribune properties will come on to the market earlier, probably around the beginning of the year. So pre-division, how exactly does Rupert take about five percent of his remaining cash to put it into the old business? You can bet News Corp. finance people are readying that analysis and argument. Certainly, investors will still raise the specter of the Dow Jones purchase — but that cost was almost 10 times what this one would be. Besides, Murdoch can point to another savvy investor, Warren Buffett, who is now getting into newspapers. The fascinating thing here to Murdoch watchers is the split — and perhaps the consequence that many missed in the split announcement. Once the newspaper company is separate, the whining of those entertainment investors about musty old newsprint should go away. Murdoch will control the new newspaper company as well as the entertainment one. What better to do in his senior years than return to the newspapering — and the influence, in America and in Australia, that such ownership still conveys? The company split makes it easier to pursue titles like the Times and the Tribune, not harder. So if Murdoch can buy — will the owners sell it to him? That’s the other wrinkle of our times. In the past, newspaper people sold to newspaper people. It’s just what you did — in part keeping them within the fraternity, and in part the sense that newspapers have a special community tie. But for these banks and investment companies, community appeals will mean little. Their sole goal is profit maximization. It’s not only Tribune that investors now control; it’s also MediaNews and Journal Register, led by Alden Global Capital. Bottom line: Now that newspaper properties are dirt cheap, and sellers are giving no preference to community ties, papers — and their evolving online business models — can be bought by those who have more journalism on their mind. Call it Citizens United for journalism. Yes, other buyers will emerge — the Times names Austin Beutner, the former venture capitalist and ex-deputy mayor of Los Angeles, as leading a group there — but will they be able or willing to match a Murdoch bid? There are to be sure other complications. Among them is cross-ownership of TV stations, given Fox holdings in Chicago and Los Angeles. One question soon to be answered: The presidential election will determine whether the FCC remains Democratic-controlled or turns Republican, the latter likely to be friendlier to Murdoch and cross-ownership interests. Certainly, if Rupert were to get these prizes — or even one of them — the impact on the journalism is curious. He might well treat them like The Wall Street Journal, modernizing technology and investing in journalism — that’s an undeniable fact of the News Corp. era. It would also help him build The Wall Street Journal’s network, video and text, as business news finds new bigger city digital outlets. The wild card, of course, is a further gain in influence. Political influence. The kind of early 19th-century make-or-break-politicians influence that went on — largely uncovered until recently — in U.K., the world’s oldest democracy. This is of course the age of unchecked big money, and media checks and balances seem like an idea hanging on by its fingernails. The Fox News game is indicative, driving big profits for News Corp. as it drives a stake into the body of “fair and balanced,” purposefully confusing the political discourse to the advantage of those who know how to play it. David Brock’s new book, The Fox Effect: How Roger Ailes Turned a Network into a Propaganda Machine, isn’t just a good telling of the brilliance of Roger Ailes, who just got a new four-year contract. It may be a cautionary tale for the next stage of the plans of Rupert Murdoch, American publisher. Photo by World Economic Forum used under a Creative Commons license. |
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