Zell and Media – Newspapers Need to be Profitable - Tailor The Papers

Implications: I am not going to get into a philosophical discussion of the merits of print media.  I have written a number of analyses supporting print media. Albeit, I support tailored printed media for the cultural market segment but the problem I have always had with big newspapers is the blandness of the coverage.

Analysis: It’s true the big national newspapers bring a level of detailed coverage not provided by television news.  However, let us not forget the L.A. Times was sold to Sam Zell for a hefty profit by someone who clearly wanted to exit the paper.  Maybe Zell used the employee stock ownership plan; so what?!  I hate to say this as much as you wish to malign the buyer; keep in mind the seller had a hand in this transaction as well.  So don’t target Zell; he would have done; leverage assets.

I believe printed media is important, not just because of in-depth coverage but because the information is more accessible to the mass audience.  Not everyone own s a computer.  Underprivileged children may only have access to that computer twice a week in either school or only when the families can get to the local public library.  Online media is great because it’s immediate for those who have the access.  You can go online and find anything you want.  However, to date online coverage or even television has never been in-depth.

As important as printed media is to society it is still a business.  Here is my question to printed media:  Can you write compelling stories and sell newspapers at a profit and still pay all of your high paid senior reporting staff?  Very simple question.

I hate to say this but people get paid with money; not kind words and intentions.

The L.A. Times is not unlike other newspapers; they have a dwindling audience and increasing costs.  This is not a criticism but a plain simple truth.  Does anyone expect any owner to buy a company and operate it at a loss?  If you do believe that, then this ain’t the capitalist society I grew up in.

Businesses should not be run at a loss.

For those who make a living writing for newspapers, I have nothing but the utmost respect for you but if people are not interested in buying your paper what do your owners do?  Raise the price to make up for lost customers?  Write more fluff stories and fewer in-depth important stories?  Should all printed newspapers focus on stories like Brangelina?

If the writers have a clue on how to make the newspaper profitable and competitive, then tell Icahn now.

Newspapers are businesses not charities.

Instead of trying to be all to everyone newspapers ought to be tailored for a specific audience.  In this way a newspaper owner could more effectively communicate to one audience.  The cultural newspapers like the Hispanic or Chinese newspapers in the U.S. are tailored for a specific segment of America; some do well and some don’t.  However, the ones that do well, do very well.