Sips from the Firehose
A blog that seeks to filter the internet into a refreshing, easily-gulped beverage


Oct 19

12 Steps to Media Sobriety: the Storify is the First Step (sorta)

Posted: under journalism, newspaper crisis, Newspaper Deathwatch, Politics & New Media.
Tags: , , , , , , , ,

OK, this is going to need a bit more work to turn into something that rivals the Cluetrain Manifesto, but there is definitely something here.

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Feb 20

Should Local News Be Marketed as “Infrastructure”?

Posted: under Digital Migration, newspaper crisis, Newspaper Deathwatch, Newspapers.
Tags: , , , , , , , ,

Ken Doctor at Neiman’s “Newsonomics” points out that the “self-asphyxiation” cycle is nearing endgame

I cross-posted a response to this on Facebook, so if you’ve already seen it there from me, my apologies.

pile of newspapers on fire

Fahrenheit 451 should not have been a documentary of what the future was going to be like.

But I’ve been watching the gradual descent of local news for most of the past 20 years, and the latest round-up by Doctor basically sums up everything that I’ve been fearing. A sampling:

While national/global news companies have cut their newsrooms, they have still maintained sufficient capacity to make their news brands valuable in the digital age. It’s not just the numbers of journalists: It’s a good mix of veteran experienced journalists who know their beats deeply and younger journalists, still early in their careers but natively more digitally inclined.

At the local press, it’s a different picture. As newsrooms have halved, older, experienced journalists have been disproportionately made to feel redundant, and then made sent off. The main reason: money. Older journalists earn more of it, and their cutting makes short-term financial sense.

The result: a disaster whose death spiral seems to be accelerating. When I’ve given talks, I’ve gotten a lot of nods from people in the industry when I show one single slide: A two-liter bottle of Coke selling for $1 next to a one-liter bottle priced at $2. That’s essentially what local publishers have done in product and pricing of print over the last five years, doubled the price and halved the product, a halving that, of course, carries through to their digital offerings.

Any company that disrespects its own products, and those who produce them, probably deserves its eventual fate.

(snip)

Yes, money matters, but it’s that beating heart of the business — creating news that local citizens need to run their governments and better their lives — that still has to be an antidote to the single-minded financial view of local news. (If “the market” won’t support local news, many have said to me, than maybe it isn’t needed. I ask them: If the same were true of education, the arts, or even roads, where would our struggling democracy be?) [Ed. note: emphasis mine.]

Where is the moral center of the local news industry — a moral center that long rested, if sometimes uncomfortably, alongside the demands of running a successful business?

While I agree with all the points Ken makes, there is one bit that jumped out: his equating of the news with schools, roads, bridges, etc. Yes, we all agree that we need a group societal effort to build & maintain these things, and that as a result, we all benefit from their existence. Thing is: the average citizen can SEE the roads/schools decaying, and is motivated to action. Lack of local news coverage only becomes a crisis when suddenly we wake up to lead in our water. The news industry, if it is going to transition from ad-supported to a more direct “charge the readers” model, is going to have to get on the stick and market itself better; make a case to the readers that they NEED local news coverage as a form of insurance policy.

Because meanwhile, over at the Shorenstein Center, we’ve got Walter V. Robinson talking about the “Spotlight” movie about the Catholic Church’s coverup of sex predator priests, and how the erosion of business models has particularly devastated investigative reporting. And yes, full disclosure, I started my career as an investigative journalist before going over to the digital zoo, so I have perhaps a skewed view of how important enterprise/watchdog/investigative journalism is to the health of a democracy. Still:

Unfortunately, investigative reporting is threatened in many cities, said Robinson. Although the Globe has partnered with Participant Media and other funders to offer a new investigative reporting fellowship, many local newspapers will no longer invest the time and resources required for stories that can take months of reporting, said Robinson.

“The prevailing view among editors is ‘investigative reporting is a luxury we can no longer afford’…The fact is, investigative reporting is a necessity that we cannot afford to do without.” Robinson said that in the face of declining revenue in the past decade, cutting investigative reporting was a “fundamental mistake.” Readers “almost always” rank investigative reporting highly in surveys, said Robinson.

“The amount of investigative reporting being done now in most cities is a small fraction of what it was in the year 2000,” he said. “In many communities even city hall doesn’t get covered. So the whistleblower who knows about official corruption in city hall has no one to go to…that’s a really serious problem for our democracy right now.”

So here’s my thought: what would be the best way for journalists and news organizations to start making a case for themselves? We’ve seen how well fear-mongering via news outlets works for moving the public to devote spectacular amounts of time, money and energy into heading off perceived threats. The Iraq war, Ebola, the wall at the border with Mexico, the gold standard, handgun seizures … all “crises” driven by media coverage that spurred Americans to either demand the government spend billions (trillion?) to kieep them safe, or got them to reach into their pockets, pull out their wallets, and spend a sizable percentage of their disposable income on something that would Keep Them Safe.

I don’t think we should get as crude and manipulative as many of these campaigns have been. But could there – should there – be a reminder in the middle of each news broadcast/article/infographic, making it explicit that this coverage just saved ordinary Americans from “X” and that to continue to do so, we need you the viewers/listeners/readers to support us in this manner.

And then lay out what might happen if the audience does not. Make it explicit, in the way that a collapsed bridge, or gradeschool on fire, or highway full of potholes does for the average, distracted American, who only has time to respond to direct threats to his/her existence.

Our audience is starved for time, and thousands (millions?) of new digital experiences are screaming for their attention (and money). News is too often marketed as “cod-liver oil” – it tastes like shit, but it’s good for you. I think we need to revisit that paradigm, and start figuring out better ways to make people appreciate what the news, and aggressive, honest local news coverage, does for them.

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Sep 25

Yes, Investigative Journalism CAN Pay. And Pay Well.

Posted: under Digital Migration, new media, newspaper crisis, Newspaper Deathwatch, Newspapers.
Tags: , , , , , , , , , , , , ,

Mediapart in France is profitable because it gives readers what they are willing to pay for.

Imagine that.

mediapart.fr front page

The Mediapart organization makes its living by doing hard-hitting investigative journalism that its audience is willing to support. They also make a point of including lots of video on their pages.

Quick hit here for my students, who are increasingly upset about their job prospects after graduation.

I shared an article from Neiman about the upheaval in the newspaper business in France. Apparently, the same problems that plague the French economy at large are at work, writ small & exceedingly acerbic, at the major newspapers. They are tech-phobic, rely on business models that no longer fully function, and react angrily to anyone threatening the promise of a cushy work situation with guaranteed employment and 1/4 of the year spent on vacation.

Can’t imagine why that can’t cut it in a world increasingly dominated by the internet work ethic of, “If you eat lunch … you ARE lunch.” Somehow, I don’t think this will fit in with a languid afternoon at a sidewalk cafe with a nice burgundy and a baguette slathered with brie. With accordion music wafting in the background.

But about 2/3 of the way down the article, there appeared these grafs, which I am going to excerpt here, although I do urge you to go to the Neiman site & give them some traffic-love, ’cause @petergumbel did a damn good job with this write-up:

Edwy Plenel, for one, is incensed by the conflicts of interest inherent in the French press. But then that’s not entirely surprising, since outrage is Plenel’s mojo.

He has come a long way since his revolutionary youth, which he wrote about in a 2001 memoir. He made his mark as an investigative journalist at Le Monde; one of his most celebrated scoops was uncovering the role of French intelligence in the 1985 sinking in New Zealand of the Greenpeace boat Rainbow Warrior. He made the Elysée so nervous that it illegally bugged his phone during the presidency of François Mitterrand. He spent a total of 25 years at Le Monde, including a stint as editor in chief, but he left in 2005 during one of its sporadic crises, after attacks on his management style.

He launched Mediapart as a subscription site in December 2007. Three years later it was at break-even. Today, it’s racing toward 100,000 subscribers, each paying the equivalent of about $12 per month. This year he expects the site to make about $2 million net profit on just over $10 million in revenue. It has a staff of 50, 33 of whom are journalists. It now outsells Libération, which has almost six times as many staff members. [Emphasis mine – dlf]

The secret: a laser focus on exclusive news, especially revelations of high-level political and financial skullduggery. Mediapart’s subscriptions soared in 2010, the year it broke the story about a convoluted political and financial scandal involving France’s richest woman, Liliane Bettencourt. They leaped again in 2013, after it revealed that the then-budget minister Jérôme Cahuzac, whose job included fighting tax evasion, himself had an undeclared Swiss bank account and had transferred funds to Singapore. After denying the allegations for months, Cahuzac eventually resigned, acknowledging that he had lied to parliament and to President François Hollande.

Work the numbers, folks. $10 mill in revenue-$2M profil = $8M in expenses. $8M/50 employees = $160K/yr per employee. Figure about 40% of that per-employee allocation is insurance, pension, and building/maintaining the site & gathering news costs, and you still get a salary of $64K/yr on average. For a journalist, that ain’t bad. Plus you’ve got a warchest of $2M that you can throw at a big story, should one come up, and to use to build out the site & extend its reach.

So. There’s a lot going on here. I’ve written in the past about how I disagree with the authors of The Death and Life of American Journalism, who called for exactly the kinds of government subsidies for newspapers that are allowing them to continue to try to deny reality, and live in a fantasy-bubble. At the time, I was reacting to what I’ve seen in Latin America, Georgia, Kazakhstan and other places where allowing the government to get its hands on the revenue stream is akin to letting criminals loop a choke-chain around your throat. They can lead you around by it, and if you start getting out of line, all they need to do is give it a quick, sharp yank, and you fall back in line, suitably docile.

I’ve seen that happen. First-hand. In Venezuela, when I was a very young editor.

Government subsidies are kinda like this. Nothing really sticks until you try to do something that the person holding the leash doesn’t like.

The solution that Mediapart has come up with here may not last. It may not work everywhere. But it’s something that makes a lot more sense to me than journalism that exists as a kind of state-supported performance art piece. Because I’ve seen that as well: journalists who are completely disconnected from the concerns of their audience, sporting paternalistic, condescending attitudes, producing self-indulgent “investigations” that nobody really reads, and that don’t really threaten the people who give them checks each month.

So when I see that Mediapart is actually making a pretty nice profit, running with a lean staff, and dedicating itself to serving the interests of its audience, it pretty much makes my day, particularly in light of the grim news out of the LA Register, NBC news, and pretty much every other traditional media outlet recently.

Look, I am not hooting and hanging on the rim here, delighting in the travails of people still stuck in jobs at tottering media empires, hanging on for dear life through ownership changes, strategy changes, and promises that melt away like morning dew.

Long-term, market forces are going to prevail. If journalists produce a product that people want, and give them a means by which to support/purchase/share it, then that audience will fight to ensure that this important part of their lives is still there. The very first case study I ever did was centered around that fact. It makes me sad to see so many journalists, who base their entire journalistic ethos on pushing people and institutions to change, to adapt to the times, to leave behind (even if painful) the habits & traditions of the past … ignoring their own best advice.

Liberation may not be a cafe. But it may also not be an outlet for journalism much longer either.

 

 

 

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May 29

Economic Crisis Forces Spain’s Newspapers into Digital Migration

Posted: under Digital Migration, new media, newspaper crisis, Newspaper Deathwatch, Newspapers.
Tags: , , , , , , , , , ,

Unemployment over 50% – banking system collapse – political instability – newspapers run out of options

When asked what are the enduring lessons of the last five years for newspapers, various pundits have opined “Don’t enter an economic recession massively over-leveraged and dependent on fragile business models.”

One by one, newspapers are falling behind.

In Spain, the problems that we are experiencing in the U.S. are even more severe. The advertising base was even more reliant on crazy real-estate bubble advertising than it was here. Anyone who has flown into, say, Barcelona, and seen 20 MILES of empty housing developments, half-built apartment blocks, and gradually eroding graded hillsides, can quite easily judge what kind of devastation was left behind when that bubble burst.

But now comes the news that digital media has overtaken print in Spain. 

There is some disagreement over just how many digital news outlets have sprung up in the past couple years:

Ahora desde la AEEPP (Asociación Española de Editoriales de Publicaciones Periódicas) reconocen que tienen 763 publicaciones digitales asociadas aunque, Carlos Astiz, secretario general de la Asociación, estima que puede haber 3.000 medios digitales.

…and exactly what constitutes a regular news publication (such as when its edition are funded via crowdfunding:

En medio de la crisis que afecta a los medios tradicionales, han surgido en los últimos meses un gran número de medios digitales con fórmulas diferentes para conseguir la rentabilidad. Desde la existencia de socios que por un módico precio acceden antes a los contenidos como en diario.es o infolibre.es a proyectos financiados por crowdfunding como la revista FronteraD.

But the trend seems to be that digital-only publications have been designed from the ground-up to be profitable on this new platform. The publishers, operating on a shoestring, find an audience, find ways to monetize that audience, and then start to methodically try to scale up.

The opposite is in action with the traditional media. They have their audience – but it is shrinking.

They have their revenue streams – but they are evaporating.

So they are engaged in a massive scale-down. Cutting coverage, cutting staff, and according to the Difusion story, only weeks/months away from re-erecting the infamous paywall around El Pais that was widely credited with destroying the paper’s digital operations before they had even gotten a chance to find their footing. I wrote an entire case study about it (and El Tiempo’s desperate attempts to re-connect with the young audience that they had alienated & lost) for the NAA. 

El Pais Spain front page

Soon to run back behind the paywall. Maybe it will work this time. Then again, with so much new competition in the digital marketplace, and with the brand discredited & distrusted by younger readers … maybe it won’t.

Meanwhile, over in the digital-only world, site owners are waking up to the trend of “native advertising” – i.e. putting posts into the middle of the flow that look a lot LIKE the news stories that readers are there to check out … but that contain sponsored content, written in a way that doesn’t conflict with the rest of the content on the site.

Check out what John Battelle has to say about this evolution of monetization: 

The reason native works is because the advertising is treated as a unit of content on the platform where it lives. That may seem obvious, but it’s an important observation. When a brands’s content competes on equal footing alongside a publisher’s content, everyone wins. Those search ads – they win if they are contextually relevant and add value to the consumer’s search results. Those promoted tweets only get promoted if people respond to them – a signal of relevance and value.  The same is true for all truly “native” ad products. If the native ad content is good, it will get engagement. The industry is evolving toward rewarding advertising that doesn’t interrupt and is relevant and value additive. That’s a good thing.

 

 

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Apr 17

The Great Digital Migration: A Long, Featureless Trudge Into … What, Exactly?

Posted: under Digital Migration, newspaper crisis, Newspaper Deathwatch.
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27 Print Dollars for $1 Digital; Social News; Papers in Trouble; Kodak v. Fuji

I posted this picture via Twitpic earlier today, and my digital brethren quickly chimed in on how much they felt like this in their daily lives. And I get it. Working in the media industry these days is far, far different from the way it was when the journalists of my generation got into the biz. Looking back at recordings from the early 90s, I am struck by how much free time we all seem to have had back then – these days, you feel like you can’t take your eyes off your Twitter feed for even a second, lest you miss the Next Big Meme and are thus branded as a digital troglodyte who “just doesn’t get it.”

people walk across sand dunes in a vast desert

Strung out and exhausted, journalists are wondering when this migration ends, or even when they might run across a handy signpost telling them which way to go. (click to embiggen)

So yeah, if you feel like you’re lost in the desert and that the only future involves your bones bleaching in the sun next to a steer skull … well, maybe it’s because most newsrooms these days evoke the feeling you get when wandering through any of the weathered ghost towns that dot the arid landscape in Arizona and Nevada, left behind when the seams of gold and silver petered out.

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Aug 19

The LA Times: Chronicle of a Death Foretold

Posted: under Digital Migration, newspaper crisis, Newspaper Deathwatch, Newspapers.
Tags: , , , , ,

The eulogies for the newspaper industry are starting to become almost commonplace, as the generation that matured and worked during the Salad Days of the 70s and 80s totters off into the sunset. Mark Heisler, the NBA beat writer at the LA Times, has weighed in with a long piece at TruthDig about what the last couple years under Tribune and Zell have been like.

The last round of layoffs at the LA Times was described as particularly hard to handle, as writers and editors who had devoted their lives to the industry were unceremoniously disposed of … reminds me of a scene I saw early in my career as a paparazzi here in L.A., where the workers at Cedars-Sinai hospital played H-O-R-S-E with sacks of squelchy “medical waste” that used to be parts of living human beings, tossing the greasy, bloody offal into the incinerator bin. Something about the blithe way that these people went about their day was just revolting and compelling at the same time.

If that seems a little stomach-churning to you, then you won’t want to read Heisler’s account of how the past two decades have gone at what used to be one of the world’s great newspapers. The waves of clueless management that have run the place into the ground have made the few newsroom survivors pretty much inured to whatever comes next. There used to be outrage, dire warnings of what the future would hold … that because fewer people were out there trying to report The Truth, society would start to disintegrate.

These days, the outrage has fizzled out; the flame wars that used to be de rigueur on all the “Inside the Newsroom” type blogs, defeated by the realization that Nothing Matters, Nothing Works, and Doom Is Certain. Most journalists leave these days, trying to appear chirpy and optimistic about all the exciting new opportunities in store for them at whatever cutrate Content Farm accepts their resume, while the pressroom guys watch their icebergs melt as well…

Heisler’s take is a little less sanguine, and benefits from his decades of experience, watching the entire industry implode:

It shouldn’t be a surprise that bad things
happen when an industry has been under the gun year after year, decade
after decade, century after century.

At 67, one NBA season from retirement (I
thought), the rising tide of BS was enough to prompt me (and, I’m sure,
half of the building, including bosses) to muse about throwing the job
in their faces.

One of the things that Heisler manages to do is to separate out the death of American newspapers from the growth of the internet, which is commendable and rare. Heisler has the perspective of 40-some-odd years in the industry, so he’s seen that things were not exactly going swimmingly, even before we all started installing second phone lines back in the late 90s, to hear the “SQUEEE-chirr-[white noise]” as we connected to AOL/CompuServe/NetZero.

I guess what struck me most was the tone of resignation. Every quarter, newsrooms will be cut. Valuable people will have their lives destroyed. Society will get worse. Dog bites man. What else ya got…?

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Aug 07

CNN International segment on Murdoch, phone-hacking & tabloid tactics

Posted: under New Marketing, newspaper crisis, Newspaper Deathwatch, Newspapers, television.
Tags: , , , , ,

The good folks at CNN asked me to appear on Backstory” to talk about the News of the World’s phone-hacking scandal.

I tried to oblige them with some insights onto why this kind of scandal keeps happening, and why. You can see the results of the interview in the segment below:

More on why the news business keeps getting hit with privacy scandals like this, and why it won’t stop after the jump…

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Oct 17

Where is the media heading?

Posted: under advertising, Digital Migration, newspaper crisis, Newspaper Deathwatch, Online Video.
Tags: , , , , , , , , , , ,

First in a series of videos taken during a panel discussion for PR Newswire at the LA Times building. 

 

On the panel with me, the delightfully funny and plainspoken Serena Ehrlich, who knows more about how to handle media in the digital age than the last three Presidential Press Secretaries put together. Although there is a marked resemblance there to C.J Craig of the late, lamented Bartlett administration. 

Anyway, this is a bit of an intro to what the conditions are like for the media, and what the big forces shaping the future are going to look like. 

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Sep 14

From Zell to Eisner as Tribune Chief: Is This Supposed to be an Improvement?

Posted: under newspaper crisis, Newspaper Deathwatch.
Tags: , ,

The Knight-Ridder chain of newspapers used to represent the sinewy, beating heart of American journalism. Then they got run into the ground, bought up by Tribune dorks who were more interested in playing out their boyhood “I wanna play right field for the Cubs!” fantasies, and then sold to the “grave dancer,” Sam Zell.


Zell’s many, many misdeeds, missteps and misstatements these past three years are probably filling many venemous former Timesmen’s memoirs even as I type. But while the wheels of corporate justice grind slow … well, in those cases in current America, where the wheels grind at all … where there are even regulators and prosecutors employed & willing to throw a shoulder to the wheels … OK, enough with that by-now-Abu Ghraib’d metaphor.  The point is that the more we learn about the circumstances under which Zell was allowed to buy the Tribune Corp & the LA Times, the more shady, unethical and perhaps even criminal the deal smells.

Now that the Tribune creditors seem to have grown a pair, and are starting to openly murmur about where all their money might have gone – in stark contrast to so many investors who have complacently plodded through the zigzagging pens of modern American Capitalism towards where the Bernie Madoffs, Angelo Mozilos & Magnetars of this world wield their blood-soaked financial sledgehammers – the word is out that Zell has reached the end of the plank.

So now what?

The villagers gathered around the moat look at each other blankly, their torches sputtering, pitchforks starting to droop. There is muttering in the ranks, a strange sense of deflation. What to do now that the monster has abandoned them?

Perhaps some new savior will arise. One who can lead them out of the bottomless cycle of self-asphyxiation and learned helplessness. A man who has “vision,” and who (with just the right sort of spineless boot-licking understanding board of directors) can restore the kingdom to its past glory. Maybe … maybe … yes. Yes! That’s it!

This shall be the image of serious news-gathering and investigative reporting in America.

We’ve earned it.

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Mar 27

Saviors Rejected: How GM Refused to Change, and What Newspapers Can Learn From Their Example

Posted: under Digital Migration, journalism, Newspaper Deathwatch.
Tags: , , , , , , , , , , , , , , , , ,

GM’s NUMMI plant in Fremont was the solution to their crisis.      So why did they ignore its lessons?


I strongly urge you to listen to this great piece from This American Life about the NUMMI auto plant in Fremont.

They don't make 'em like this any more. Even so, the rear bumper had to be reattached.

It’s about how the U.S. auto industry could have saved itself by actually paying attention to the way its business was eroding, and listening to the people who came back from Japan and transformed the Fremont plant from a place that was “like a prison … with sex, drugs and alcohol freely indulged in during the working day … where the workers maliciously sabotaged cars, and the managers didn’t care, as long as they got their bonuses for churning out pure numbers…”

…into a place where the workers actually looked forward to coming to work each day, and where the quality of the cars they turned out was so high, that even now, 22 years later, many of those cars are still on the road. NUMMI stands for “New United Motor Manufacturing, Inc.” and there is an excellent Wikipedia entry about it, if you want to get a little more background.

The situation bears a strong resemblance to the newspaper industry, and the reason papers are in the same place as the auto industry. Let’s take a look at the places where the news industry and the auto industry screwed the pooch:

1. Starting in the 80s and going through the 90s, sales declined, as customers were turned off by the shoddy quality of the product


In the auto industry:
anyone who drove a U.S.-made car in the 80s knows what I’m talking about. Everything about the cars sucked. The seats were uncomfortable to sit in, the controls made no sense and were hard to deal with.  I drove a lot of rental cars in that era, and I can’t tell you how many times the A/C control knob came off in my hand. Or the windshield wiper knob was installed upside-down. In one case, the bolt holding the steering column up on a Chevy Cavalier came loose and the steering wheel dropped into my lap. Which is minor, compared to the engines seizing and misfiring, the electrical system shorting out, the windows not rolling up (or down), the doors sagging on their hinges…

In the newspaper industry: the buyouts and mergers started by the relaxation of the cross-ownership rule, caused many papers to skeletonize their staffs, and run big colorful graphics in the papers. And lots more wire copy. I worked at the Arizona Republic during this era, and I saw what they were doing on “Zone Editions.”  We had the same cruddy stories for Mesa, as we did Tempe, as we did Scottsdale. They were feature stories about things like a guy with a trained parrot that would whistle and dance. We’d run it one week in the Mesa zone, and then the next week, I’d see it in the queue again for Scottsdale. Mostly, the Zone Editions were there to snarf up the advertisers in those areas, and make sure that no competition sprang up to challenge the big paper. “It doesn’t pay NOT to advertise,” was the slogan, and it was true, because of the package deals the Republic was able to offer, sucking the oxygen out of the local markets.  Most papers had a monopoly position in their markets, and could pretty much be assured of making a profit, no matter what they did. Meanwhile, the readers were starting to notice that their newspapers were lacking … how shall we say this … news.

2. The workers felt ignored and belittled, so they began to act out, and a “give a shit” attitude took over

In the auto industry: the line workers had no power to offer suggestions, and indeed, were punished for speaking up. All that mattered was churning out enough cars to meet the quotas, no matter how shitty the quality. Resentfulness led to workers intentionally sabotaging cars, which led to even greater expense down the line, when the shitty cars had to be fixed by workers who really didn’t understand what was wrong with them, and just used the “bigger hammer” method to make cross-threaded bolts hold, or quarterpanels stick onto the chassis.

In the news industry: a kind of rebellious fatalism took hold in newsrooms, both in print and TV. The reporters knew the bosses really didn’t give a shit about the news, they just wanted something that would get good ratings and not get them sued. Every TV producer I have ever met would, with little encouragement, go off about the corporate “suits” that were putting the vise on the newsrooms to “pop a number.” Reporters that dared to try to make suggestions about long-term changes (like less coverage of O.J. Simpson, and more of things like the erosion of middle-class opportunities) were ignored. Newsrooms have always been “simmering cesspools of cynicism,” but this morphed into outright nihilism and rage.

3. A temporary bubble allowed the industry to rack up easy profits and postpone change

In the auto industry: The Bush-Cheney “let’s consume as much oil as we can” faction pushed through a tax break in the early ’00s that meant that people who leased a “light truck over 6,000 pounds” could write off the cost of the car.  Free SUVs for Everyone! What this did was support the Big Three, despite their declining market share, because they were making so damn much money off producing big fat gas-guzzling SUVs and selling them for massive mark-ups.  The SUV was actually pretty cheap to make – but Detroit was able to charge about $10-$20,000 more for them. And, of course, when the tax break ran out — and gas prices skyrocketed — the end of the free cars on the taxpayer’s dime era left GM without a viable product to sell, as consumers looked for more efficient cars.

In the newspaper industry: the subprime mortgage/real-estate boom created a huge advertising windfall for newspapers. The Homes section of the LA Times was often larger than the rest of the newspaper combined.  Thousands of pages of expensive classified ads, paid for by realtors who were so awash in free money that they didn’t care what the cost was. Of course, the rest of the classified business was absolutely cratering at this time.  When the real-estate market imploded, and advertisers abandoned newspapers, looking for more efficient ways to sell their products, newspapers were also left without a viable product to sell. 

4. The industry blamed the people who were honestly pointing out the flaws

In the auto industry: the Detroit execs blamed Consumer Reports for pointing out that the cars they were inflicting on the American people were utterly without redeeming community value. They claimed that the Dirty F’n Hippies at Consumer Reports were biased towards the Japanese, were anti-American traitors, and were unfairly criticizing patriotic Americans. The U.S. cars were better, if only people would realize that.  The industry was in complete denial about how the auto-buying public had turned against it, after years of enduring an abusive and exploitative relationship, and how even Baby Boomers and Gen-Xers who fondly remembered their high school days when they got their first muscle cars, were fed up with cars that broke down or rolled over, killing their families.

In the newspaper industry:
the newsrooms blamed the internet. They still blame the internet. They see the competition on the internet as being anti-American, that the public was deluded by web-based hucksters, and that imposing paywalls would make people realize how much they really needed to pay for news. No matter that the readers and advertisers have made their preferences clear – they must be MADE to come back and obey.

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