“A good local paper is essential to its users – the owner’s manual to the community."

By Kevin Slimp
Media Specialists

As “The End of the World as We Know It,” by REM, blared out of the sound system and screenshots of newspaper pages predicting the downfall of the industry filled a screen, a group of consultants, speakers and trainers met this past weekend to discuss the future of newspapers.
Meeting for more than 12 hours over two days, the group – dubbed Media Specialists Group – thrashed out ideas concerning several topics including the decline of circulation among metro papers, the relationship between legitimate concern for the community and readership, the long-term impact of outsourcing production to foreign countries and the health and future of the newspaper business.

Overall, there was a sense that community papers could survive and prosper in the future, while mid-size and metro papers need to give more attention to creating quality products that are of value to the community. Several participants echoed the feeling of Kevin Slimp, director of the Institute of Newspaper Technology, that in an effort to improve the bottom line in the short-term, corporate-owned newspapers run the risk of “alienating readers with staff cuts, diminished local news and a ‘watered down’ product.”

On Saturday morning, Media Specialists think tank opened its doors, inviting area journalists to participate. Discussions bordered on emotional when the future of newspapers came into question. When asked about the impending doom of newspapers, Ed Henninger responded, “I don’t see community newspapers – mom and pop operations – dying. I do see larger newspapers, 30,000 and up, having problems.”

Jerry Bellune, publisher and business consultant from South Carolina, sees changes ahead. “I can see a day when the advertising side of our business might look more like a present day ad agency where we provide, for our clients, customized services that might include direct mail, outdoor advertising and other services they need to survive against predatory competitors. I think the revenue side of the news business is going to change drastically.”

Bob Bobber, circulation trainer from Florida, reminded the group that print, as an overall industry, is in good shape. “While we all realize that metros are hurting, if you take shoppers, weeklies, magazines, the international press, community dailies and niche publications, circulation is doing just fine.” He went on to add that “the days of 30 and 40 percent margins are long gone, but a lot of that is going to be replaced by things like alternate delivery, Web sites and whatever else we come up with over the next 10 or 20 years.”

Participants also engaged in a lengthy discussion of newspapers moving from paid circulation to free distribution. Ken Blum, newspaper consultant from Ohio, explained that free distribution really makes sense in an urban market where there is a lot of influx in the population. However, Blum added, “I’ve been to many markets where the weekly newspapers have an 80 to 90 percent penetration. Of course I would never recommend free distribution for them.”

Slimp shared his feelings that “we will see a significant shift from paid to free newspapers in the next 10 years.”

Several recent surveys were discussed. Some indicate newspaper readership is down in the largest markets. Others indicate sustained readership among community newspapers. Ed Henninger, design consultant, said, “To those who say newspapers are dying, I ask: ‘Are you talking about metro newspapers or community newspapers?'”

Blum responded, “The big companies are in serious trouble. It’s not that many of these papers are not profitable, it’s that they’re not profitable enough to cover their humongous debt load they paid for them.”

Henninger shot back, “Well the question I ask is: ‘Who was the bean counter in the first place that said, “Let’s buy all these papers”?’”

When asked what they would say to newspapers worried about the future, John Peterson, consultant from Connecticut, replied, “A good local paper is essential to its users – the owner’s manual to the community. Newspapers are a service business. It’s unreasonable to expect them to be successful if you continue to keep taking things away from readers and advertisers.”

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Media Specialists Group meets online once a month to discuss topics of pressing concern to newspapers. In addition, it holds an annual meeting at alternating locations. The 2009 meeting will take place in Tampa, Fla.

For information contact Ed Henninger, director, Henninger Consulting
edh@henningerconsulting.com http://www.henningerconsulting.com
TEL: 803-327-3322 | FAX: 803-327-3323