Meet The Newest Members of the ideaLab

Folks,

Meet the newest members of Digital First Media’s ideaLab.

These 25 fantastic MediaNews Group employees join their 15 enterprising colleagues at Journal Register Company who have made up the ideaLab for the past two years.

The latest members of the ideaLab hail from all parts of MediaNews Group across the country and from different areas of the company. They were chosen from more than 500 applicants.

Jeff Jarvis, Jay Rosen and Emily Bell of Digital First Media’s Advisory Board – led by Editor-in-Chief Jim Brady – had the tough task of choosing 25 winners out of so many wonderful ideas.

Great ideas like Allison Barrett’s.

Allison, who works in sales at MediaNews Group, wants to help our employees re-connect with their communities through volunteerism.
Allison has a plan to use social media and a central data base to connect and help employees communicate their volunteer efforts. A win-win for us and the communities.

The Denver Post’s Jason Blevins wants to tell visually Colorado’s outdoor industry from high-country hiking to extreme skiing and whitewater rafting. The outdoors is not just an industry in Colorado it’s a way of life. Check out some of Jason’s “head cam” work here: http://bit.ly/zdajqM.

Omar Shadid is an accountant with MediaNews Group. Born and raised in the US, he is a first-generation Pakistani American. He’s a practicing Muslim and he is getting married this year. His is an arranged marriage. He has only met his wife twice and spoken with her for a total of 60 minutes. He wants to tell Americans about his Muslim culture from an American perspective.

Here’s what he plans to do:

“I plan to set up a column or online blog to load videos, pictures, and stories of my Muslim culture and my time leading up to the arranged marriage, as well as, life after the marriage. Many co-workers, friends, and neighbors are fascinated with the Muslim culture and there is no better way to experience the culture then a Muslim wedding with over 300 guests,” Omar told us.

The new ideaLab members will be equipped with the latest tools and the Company will provide them the time and money to experiment. Each member of the ideaLab will be equipped, initially, with a Smartphone, tablet and laptop.

The Company will carve out 10 hours a week from their regular jobs to allow them time to experiment with these tools and report back on how we can change our business for the better. And we will add an extra $500 per month to their pay.

Other than that – there are no rules. Just go play and come back and tell us how to run our business better.

Here are the winners:

Jason Blevins, Denver Post (newsroom
Jonathan Boho, Denver Post (designer)
Lauren Boyer, York Daily Record (newsroom)
Richard Chin, St. Paul Pioneer Press (designer)
Neil Devlin, Denver Post (newsroom)
Allison Barrett, MediaNews Group (advertising)
John Brewer, St. Paul Pioneer Press (newsroom)
Courtney Cashour, MediaOnePA (research)
Lisa Fernandez, San Jose Mercury News (newsroom)
Alex Fong, San Jose Mercury News (designer)
Aimee Heckel, Boulder Daily Camera (newsroom)
Dan Herman, Farmington Daily Times (presentation editor)
Dana Hull, San Jose Mercury News (newsroom)
Michael McGowan, MediaNews Group (circulation)
Ned Oliver, Berkshire Eagle (photographer)
Thomas Peele, BANG (data)
RJ Sangosti, Denver Post (photographer)
Omar Shahid, MediaNews Group (accountant)
Jack Storrusten, LANG (advertising)
Zahira Torres, El Paso Times (newsroom)
Angela Woodall, Oakland Tribune (newsroom)
Marc Cabrera, Monterey County Herald (newsroom)
Gina Dvorak, LANG (multimedia)
Jason Halley, Chico Enterprise-Record (photographer)
Katie Murphy, Denver Post (advertising)

Congratulations to all the winners. Let the experiments begin.

Until next time. John.

Old Dogs New Tricks and Crappy Newspaper Executives

(Speaking notes for an address to the Canadian Journalism Foundation
Toronto, Canada, 2/16/2012)

Good evening.

I’m old media.

This is my 36th year as a newspaper man – apologies – my 36th year as a multi-platform news executive.

It’s a career I started as a copyboy on this same street about a dozen blocks east of here.

I was hired for taking a picture of a belly dancer fooling with a drunk columnist. I was given the job of a guy who had just been fired for being a drunk. And I ended my first night on the job, taking home – dead drunk – the guy who hired me.

In my career the only reprimand I have ever received – if you don’t count the odd suspension for insubordination – was about expenses, specifically it was about booze. It read: “You are no longer allowed to order an Armagnac, digestif or any other after dinner drink that is older than you are.”

This is commonly referred to as the Golden Era of journalism.

And now, like many of you, I am struggling hard to teach this old dog new tricks.

Struggling to accept that much of what we know is no longer valid.

And trying to come to grips with the fact that crappy newspaper executives are a bigger threat to journalism’s future than any changes wrought by the Internet.

All of us have been subjected to the annual spectacle of a gaggle of print publishers gathering on a panel – Doug Knight, our moderator this evening, has officiated over a couple of these – to declaim they are not dead yet.

It’s an embarrassing display played out time and time again at conferences where our industry heads look like aging ingénues at Stratford declaring they can still play Juliette. And nobody has the heart to break it to them.

Or worse still, mediocre journalists, wrapping themselves in the flag of long-form journalism, to deride the value of social media as a reporting tool. A tool they don’t understand or care to understand.

And then having to watch them use that ignorance to dismiss the phenomenon of participatory journalism.

When I hear these hacks cry out that their work can’t be reduced to 140 characters I always think – if only – and pine for the useful hours I could get back in my life if spared their thumbsuckers.

And while these false, zero-sum arguments play themselves out, Rome burns.

And in the United States of America, where I work, the fire is burning faster and fiercer than ever before.

Since 2005, the U.S. newspaper industry has lost more than 60% of its advertising revenue and so many jobs no one can accurately count them.

And while this is not yet the story in Canada, I would say the only difference between here and where I work in New York City – is time.

It’s not like the Internet isn’t coming to your town.

The Journal Register Company – the Company I took over two years ago – and, more recently, MediaNews Group –which we now both run under Digital First Media – could be the poster kids for what ails the US newspaper industry.

We count our products in the hundreds.

Our employees in the thousands – ten thousand actually.

Our audience in the millions – 57 million actually.

And our revenues are counted in the “Bs” as in billions.

And, it is profitable. With better margins than an average Dow Jones listed company.

We have titles pre-dating the American Revolution and can stretch our lineage back to at least one predecessor title co-founded by Benjamin Franklin. Well, just about stretch if we stand on a high stool.

Another title was around to publish George Washington’s obit.

And our core mission is enshrined in the nation’s Constitution.

And none of the above will save it or other companies like it – unless we and our industry profoundly change how we do business.

You can’t fix what you won’t admit is wrong.

So let’s start with this one: Print’s coming back.

A show of hands please if you think that’s true – heads up people this is a trick question.

In America from 1985 to 2005 – the very peak of print newspaper advertising revenue – the average annual growth was 2.7%. Again, that was the Golden Era.

And for those of you wrapping the daily sheet in heavyweight glossy stock betting on a return to the Golden Era – at that rate of growth -it will be more than a quarter of a century before we are back to – 2005 levels.

But that is not going to happen as advertising gets ever less share of marketers’ dollars.

And newer, sexier platforms are targeting customers in such terrifyingly precise ways that we print folks are effectively taking a knife to a gunfight.

In 2012, in the US, it is expected there will be more advertising on the web than in newspapers and by most estimates more Americans now access their news via the web than print.

The customers have spoken.

But are we listening?

I would argue not nearly hard enough.

The debate rages on where that news starts – largely print – rather than how people access it – largely the web – and how it might be blocked.

And so, for awhile, we were treated to spectacles like the online copy enforcer RightHaven pursuing stay-at-home bloggers obsessed with their cats who happened to pick up some online news copy for a post. RightHaven died a deserved death.

Now we have the Associated Press playing around with NewsRight – the word Right is used a lot by print people. This time, we are told, NewsRight is out to nail companies who are not bloggers – it would seem – and to gather data on how our copy is used. Okay. We’ll see.

In the meantime, where are the industry efforts to understand and act upon how news is actually created and consumed?

Where are the industry efforts on understanding how professional journalists can come together with the people we used to call the Audience and who, armed with laptops and broadband access, are in the same business as us?

I meant what I said earlier when I used the word struggle.

I am not a Net native. I’m a newspaper man. My father was news photographer’s assistant and then a printer. The first hands that ever held me had ink under the fingernails.

And it’s tough enough struggling with concepts such as open publishing and participatory journalism and to let go the control we used to have on copy because of our control of the means of production, without print’s knuckle-draggers refusing to acknowledge we need to change at all.

Because change we must.

And if we are going to change we are also going to have to admit that the Print model is broken. Don’t believe me – then read any of the newspaper company Chapter 11 filings in the United States or Clay Shirky.

If you haven’t read Shirky’s essay Newspapers and Thinking the Unthinkable and you are in the newspaper business then brother let me tell you – you are not paying enough attention.

His message is simple:

“If the old model is broken, what will work in its place? The answer is nothing. Nothing will work. There is no general model for newspapers to replace the one the Internet just broke.”

And his message is clear:

You don’t tinker or tweak a broken model. You start again anew. And I would add build upon our foundations.

To do this you have to let go of those things we once held true. Like:

- We are the gatekeepers of information.

- That we are the agenda setters and that we decide what news is and what is not.

- And that we keep the Outside world outside and only let in the chosen few – people like us.

So, if we can admit the Print model is broken what else must we recognize isn’t working anymore.

I think it is this:

As career journalists we have entered a new era where what we know and what we traditionally do has finally found its value in the marketplace and that value is about zero.

Our traditional journalism models and our journalistic efforts are inefficient and up against the Crowd – armed with mobile devices and internet connections- incomplete.

Our response to date as an industry has been as equally inefficient and in many cases emotional.

“You’re gonna miss us when we’re gone” is not much of a business model.

The French philosopher Roland Barthes argues that when culture becomes nature we are in the presence of myth.

In our blustering for self-justification we have created a myth of our value. Without ever establishing its economic value, we have argued our value as journalists and journalism itself is self-evident and unassailable.

This has been one of the most gut-wrenching struggles for me to deal with because clearly journalism is not without value but, for sure, how it is largely practiced in print today – particularly “he said last night journalism” – nearly is valueless.

Today news organizations that do not embrace how news is now created and consumed – Digital First and Print Last – are ignoring not only how their customers desire to get news but how they understand it as well.

We ignore this at the risk of killing our business but worse we ignore it when the solution to our future is sitting under our noses – the power of our brands – if we would only let go of the past and embrace the future.

The University of London professor Celia Lury argues in her essay “The Brand as New Media Object” that brands themselves are platforms for content.

Dr. Melissa Aronczyk at Carleton University argues, with co-author Devon Powers, in their work “Blowing Up The Brand” that “the relationship between consumers and brands become less about the consumption of the product than about social relations, experiences and lifestyles such consumption enables.”

In an industry that has been hidebound to its production process – printing – but equally wedded to the belief that its brands stand for something, I think the professors’ arguments point to a way forward for newspaper companies as news companies.

Just as the printing press divorced the reader from the writer with the pen and created a whole new world of scalable audiences and techniques of communication, the new digital platforms demand journalists use each platform to its utmost advantage.

The first steps in this transition have been our Digital First strategy but clearly it is also a case of Digital Right – the right uses for the right platforms on the right occasions. And not just the simple re-purposing of content from one platform to another in order of priority.

Online stories today that do not link are now considered inferior by consumers. News companies, as brands, cheapen and destroy themselves if they do not allow the social interaction that society now demands of the new digital tool set.

Marshall McLuhan knew this when he said the Medium Is The Message.

In the news business, particularly a legacy business like newspapers, if we don’t understand this and take advantage of the Medium’s potential we will cease to be the Messenger.

And it is in this role of Messenger that we have tied up our ideas of brand values.

Such as:

- A Messenger the community can trust.

- A Messenger known for its accuracy, integrity, etc.

But what does it mean to be the Messenger in today’s new news ecology where the people we used to call the Audience are now equally participants, competitors, colleagues, arbiters and sources?

At Digital First Media we have started to answer that question by first unlocking our brands and sharing our content into this new eco-system for all to use. And where we, in turn, aggregate the Audience’s content, curated under our brands.

The Audience – at the Journal Register Company – has responded to this initiative by doubling in about a year.

Letting go of control is a very hard thing to do. And allowing the Audience – or the outside – in is even harder.

Often when I talk about bringing the Audience into the news conversation, the aforementioned aging ingénues respond sharply, reminding me:

- “We have always connected with our communities.” Read: letters to the editors or streeters.

- “Our readers are part of our process.” Read: surveys and citizen members of editorial boards.

- “We hear and act on their complaints.” Read: the ever-ineffectual Ombudsman.

When I worked at the Toronto Sun, as both a reporter and an editor, we said the same things usually wrapped up in this tidy little phrase:

“We produce a newspaper for the guy who rides the Queen St. streetcar.”

I bought into that, even though as a guy who actually did ride the Queen Street streetcar to work it was obvious about half of the riders – men and women of color; non-English speakers struggling to find their way in Canada’s largest city – looked nothing like the self-satisfied white guys – me included – who sat around the rim deciding what was news.

The web ensures that doesn’t happen anymore. Or at least it doesn’t happen for a long period of time for a news company trying to survive.

Extending Professor Lury’s argument that brands are platforms, at Digital First Media we have taken our initiative to unlock our brands and share our content one step further.

In Torrington, CT we have literally extended our brand, the Register Citizen, by using the newsroom itself as a platform.

At the Register Citizen we have established an Open-to-the-Public newsroom and all are welcome.

They are welcome to work at blogging stations set up right in the newsroom. They are welcome to use the community meeting rooms and they are welcome to attend the news meetings themselves. For those who can’t make it the news meetings are also live-streamed.

In Torrington we have tried to embody the basic values of the web – transparency, inclusiveness and interactivity.

Placing online fact-checking boxes on every story is our direct request for help to correct any mistakes we may have made. I believe this is an act of transparency that is bonding us closer to that community.

To be clear, we have accepted we are no longer the old-fashioned agenda-setters or gatekeepers of information for our communities. Clearly communities know what they want and can organize themselves around issues and activities.

What we can do, however, under the power of our brands, which are still trusted, is help organize relevant information out of the river of content now available in each community.

Vint Cerf, Chief Evangelist at Google and called by some the Father of the Internet, is very clear about this:

“People’s trust in journalism has always been about branding.”

And as the community has become even a physical part of the newsroom we are building a better connection with that community than we have ever had before.
In Torrington, the community has responded by driving the newspaper’s digital audience to more than five times its print audience and it has taken the Register Citizen from a loss to profitability.

Along with the Community Media Labs at all Journal Register Company dailies and which are now being rolled out at Media News Group, Torrington’s Open-to-the-Public newsroom is becoming a new model of community engagement that works and enhances the news organization’s brand value.

This is a brand value being built by the community itself as the community takes ownership in what the local news organization does and helps to establish its key values of community involvement.

The gate is forever open now. There is no longer a gatekeeper on community news. Communities will now value those institutions – like Twitter – that help the flow of news and those – like us – that add context and reflect the values the communities themselves set.

Adding value to the new free-flow of news requires a new news organization.

Our journalism tied to the power of participatory journalism is in my opinion an unbeatable combination as we help communities make sense of the river of information on the web.

In New Haven, CT we have created what we believe is a local newsroom that adds value.

It has four key components: Breaking News; Investigative Reporting; Audience Engagement and Widgets.

Audience Engagement and Widgets are the new no-brainers. Newsrooms must share content and they must engage their audience as demanded through the new digital tools that are powering social media.

No social media connection. No news organization.

While the crowd can be as fast or even faster on breaking news, adding the context we have through our community connection and professional newsrooms is both vital and additive to brand value.

However, it is the re-establishment of an investigative reporting unit – a victim of cutbacks in local newsrooms a long time ago – which can add the greatest value.

Finally, again, and using the new digital toolset, we are asking questions that others are not asking.

That virtuous circle is complete when the news organization’s engaged audience pick up those questions and demand answers.

From a business perspective we are getting closer to the Holy Grail of value alignment with our communities.

Trust me when I say all of this is easier to say than do and it takes a commitment from the entire organization. If you are not fully committed the community will know it in a heartbeat.

And then you are dead because a thing of value has to earn its value – constantly.
I strongly believe sharing content will mean more prosperity not less in the future.

One of the reasons I am so stern on paywalls and other walled gardens is because I firmly believe that in the future content will go the audience and not the other way around.

Smart, original content, tagged with advertising will gain value by being shared through networks.

Shared content equals influence.

And influence in the new eco system equals engagement.

And engagement equals value to those advertisers and others trying to reach that engaged audience.

While online news start-ups here in Toronto like OpenFile understand this intuitively too many newspaper publishers do not.

And they continue plow on by slashing editorial, research, marketing and even sales resources – our only core competencies – to meet profit expectations.

An aside, newspapers get the investors they deserve.

In the US with many newspapers either in, coming out of or threatening to go into bankruptcy, newspaper managers appear to be equally bankrupt of ideas as they seek to please investors by slashing costs and driving short-term gains.

Investors, being no fools and recognizing newspaper managers have no plans to truly transform their business, are simply doing their jobs when they keep management focused on producing short-term gains.

Investors don’t buy into myth. They buy into math.

If you want investors to take a long-term view on our industry or our companies then you better give them a long-term plan that works. Give them a plan they will back.

And I would add it should be a plan built on the editorial floor where the core of our business lies.

The rest of transformation is mechanics.

If it is not core to your business- and in newspapers core means content and sales – then reduce it, stop it, sell it or outsource it.

And for God’s sake stop listening to newspaper people. We have had since the mid-90s to get this right and clearly we are no good at it.

Put the digital people in charge – of everything.

They can take what we have built and make it better.

It is so very important we get this right – not just for the industry and investors – but for our communities.

“The newspaper is the place where communities are formed,” writes New York University professor Aurora Wallace in her book Newspapers and the Making of Modern America. Dr. Wallace continues: “Newspapers are … the engine behind the construction and maintenance of strong communities … when they falter, we must ask what else will suffer as a result.”

We owe it to the communities who have sustained us not to falter just because we are afraid to change.

Finally, I would say to newspaper execs learn to let go and love the ‘Net.

I am here to tell you, you can teach an old dog new tricks.

Metaphorically, I still chase cars down the street and bark at cyclists but I’m picking my marks better now and for old dog I’m starting to catch some of them.

Thanks.

ideaLab Update

Folks,

 I have been absolutely amazed and gratified at the volume and quality of your ideaLab submissions.

 More than 500 of you have applied for 25 positions. Your ideas are amazing.

 One crime writer wants to use new digital tools to expand coverage of crime in L.A. on multiple platforms and in real-time. Another applicant wants to harness digital platforms and our brands to use social media as a form of emergency alerts.

 A circulation employee wants to build an explainer on how our customers can maximize their use of our E-Editions while an advertising sales rep assistant has an idea on harnessing cloud technology to stream solutions to our automotive advertisers. And while everyone is talking about the weather one employee wants to capture that on video and turn it into video-on-demand.

 Another employee wants to use game mechanics and user-generated content to involve our customers even more in the conversation on what’s happening.

 Each submission is worthy of real study and I have enlisted the help of Digital First Media’s Advisory Board – Jeff Jarvis, Jay Rosen and Emily Bell and Editor-in-Chief  Jim Brady – to judge the top 25.

Winners will be equipped with the latest tools and the Company will provide them the time and money to experiment. Each member of the ideaLab will be equipped, initially, with a Smartphone, tablet and laptop.

The Company will carve out 10 hours a week from their regular jobs to allow them time to experiment with these tools and report back on how we can change our business for the better. And we will add an extra $500 per month to their pay.

Other than that – there are no rules.

 We expect to post the winning 25 applicants by the middle of February.

 Stay tuned. The ideas will be worth it.

 Until next time, John.

 

News Media’s New Role As Both Medium And Messenger In A World Of Partnerships

Good Afternoon,

I usually get invited to conferences like this because I’m the newspaper guy digital people get a kick out of when I say the newspaper model is broken.

In the newspaper business you can be referred to as a digital “innovator” for just saying that, which, of course, is a bit like winning a tallest midget contest.

Clearly, we are not digital innovators in the newspaper business. But we are adapters.

And as most of the media world is finding out – we are also survivors.

Is the newspaper model broken? For print, as it currently exists? Yes, irretrievably. Read Clay Shirky or any of the many newspaper company Chapter 11 filings.

But are our core competencies in local news creation and local sales broken? No.

Is there a digital innovation as it relates to local content and sales we can’t adapt to? Again, no.
We literally close the loop on local in news and sales.

Coupled with the sheer scale of our local resources – almost always bigger than all of our local media competitors combined – we are finally, kicking and screaming, starting to adapt and change.

And we are slowly but surely starting to get this right. Even in print I might add as we discover new roles for the print platform alongside our digital efforts.

The University of London professor Celia Lury argues in her essay “The Brand as New Media Object” that brands themselves are platforms for content.

Professors Melissa Aronczyk and Devon Powers in their work “Blowing Up The Brand” argue further “the relationship between consumers and brands become less about the consumption of the product than about social relations, experiences and lifestyles such consumption enables.”

In an industry that has been hidebound to its production process – printing – but equally wedded to the belief that its brands stand for something, I think the professors’ arguments point to a way forward for newspaper companies as news companies.

Just as the printing press divorced the reader from the writer with the pen and created a whole new world of scalable audiences and techniques of communication, the new digital platforms demand journalists use each platform to its utmost advantage.

The first steps in this transition has been our Digital First strategy but clearly it is also a case of Digital Right – the right uses for the right platforms on the right occasions. And not just the simple re-purposing of content from one platform to another in order of priority.

Online stories today that do not link are now considered inferior by consumers. News companies, as brands, cheapen and destroy themselves if they do not allow the social interaction that society now demands of the new digital tool set.

Marshall McLuhan knew this when he said the Medium Is The Message.

In the news business, particularly a legacy business like newspapers, if we don’t understand this and take advantage of the Medium’s potential we will cease to be the Messenger.

And it is in this role of Messenger that we have tied up our ideas of brand values. Such as a Messenger the community can trust. A Messenger known for its accuracy, integrity, etc.

But what does it mean to be the Messenger in today’s new news ecology where the people we used to call the Audience are now equally participants, competitors, colleagues, arbiters and sources?

At Digital First Media – where we operate Media News Group and the Journal Register Company and their more than 800 products – we have started to answer that question by first unlocking our brands and sharing our content into this new eco-system for all to use. And where we, in turn, aggregate the Audience’s content, curated under our brands.

The Audience – at the Journal Register Company – has responded to this initiative by doubling in about a year.

(A small housekeeping note: Many of my references today will be about the Journal Register Company which we have now run for about two years whereas we just took over operations at Media News Group three months ago).

Extending Professor Lury’s argument that brands are platforms we have taken our initiative to unlock our brands and share our content one step further.

In Torrington, CT we have literally extended our brand, the Register Citizen, by using the newsroom itself as a platform.

At the Register Citizen we have established an Open-to-the-Public newsroom and all are welcome.

They are welcome to work at blogging stations set up right in the newsroom. They are welcome to use the community meeting rooms and they are welcome to attend the news meetings themselves. For those who can’t make it the news meetings are also live-streamed.

In Torrington we have tried to embody the basic values of the web – transparency, inclusiveness and interactivity.
Online fact-checking boxes on every story is our direct request for help to correct any mistakes we may have made. I believe this is an act of transparency that is bonding us closer to that community.

To be clear, we no longer see our job as the old-fashioned agenda-setter or gatekeepers of information for our communities. Clearly communities know what they want and can organize themselves around issues and activities. You may have heard of a little thing called Facebook.

What we can do, however, under the power of our brands, which are still trusted, is help organize relevant information out of the river of content now available in each community.

And as the community has become even a physical part of the newsroom we are building a better connection – a closing of the loop – with that community than we have ever had before.

In Torrington, the community has responded by driving the newspaper’s digital audience to more than five times its print audience and it has taken the Register Citizen from a loss to profitability.

Along with the Community Media Labs at all Journal Register Company dailies and which are now being rolled out at Media News Group, Torrington’s Open-to-the-Public newsroom is becoming a new model of community engagement that works and enhances the news organization’s brand value.

This is a brand value being built by the community itself as the community takes ownership in what the local news organization does and helps to establish its key values of community involvement.

The gate is forever open now. There is no longer a gatekeeper on community news. Communities will now value those institutions – like Twitter – that help the flow of news and those – like us – that add context and reflect the values the communities themselves set.

Adding value to the new free-flow of news requires a new news organization.

In New Haven, CT we have created what we believe is a local newsroom that adds value.

It has four key components: Breaking News; Investigative Reporting; Audience Engagement and Widgets.
Audience Engagement and Widgets are the new no-brainers. Newsrooms must share content and they must engage their audience as demanded through the new digital tools that are powering social media.

No social media connection. No news organization.

While the crowd can be as fast or even faster on breaking news, adding the context we have through our community connection and professional newsrooms is both vital and additive to brand value.

However, it is the re-establishment of an investigative reporting unit – a victim of cutbacks in local newsrooms a long time ago – which can add the greatest value. Finally, again, and using the new digital toolset, we are asking questions that others are not asking.

That virtuous circle is complete when the news organization’s engaged audience pick up those questions and demand answers.

From a business perspective we are getting closer to the Holy Grail of value alignment with our communities.

Trust me when I say all of this is easier to say than do and it takes a commitment from the entire organization. If you are not fully committed the community will know it in a heartbeat.

While local is key to everything we do our Project Thunderdome – pulling together the strength of our local footprint and adding best of breed non-local content on all platforms – is creating huge national opportunities.

By centralizing all non-local content creation and production we are able to reduce costs while putting more resources back into local coverage increasing what is already an important competitive advantage.

Our scale not just at Digital First Media but also industry wide is a force to be reckoned with if harnessed properly.

We are extending the opportunity in content of Local Focus and National Opportunity to our salesfloors.

We start with our competitive advantage – we have more salespeople in our markets than any other of competitors. In many, if not in most cases, more than our competitors combined.

And we are adding the power of advertising networks to that by partnering but in our case an advertising network powered not just by numbers but also by brand value. At Digital First Media we call this our AD Taxi program.
In partnering with the right data and tech partners and leveraging not just ours but the right audience partners we are able to extend buys across our network of 41 million unique visitors and our own paid print circulation audience which is the second highest in the nation at 3.2 million on Sundays.

Like the open newsroom concept, by opening up our inventory and sales resources and by partnering we are adding to our brand value by offering behavioral, geographical and audience-specific solutions through search and extended inventory across our network and beyond to advertisers.

In short we are:
- Selling premium inventory on brand-enhanced newspaper web sites that ad networks can’t buy.
- Packaging digital products into an integrated campaign with select partners for premium out-of-network inventory on multiple digital platforms such as email and mobile.
- Data mining our user behavior to create more effective digital buys

And, again, we are leveraging the largest local media sales forces in those markets to do it.

Key to our Digital First strategy is allocating resources appropriately to our digital future as opposed to our print past solely. With local digital advertising network growing nationally by 50% – along with the explosive growth rates of mobile and the continued upward climb of search – this effort is a big part of our future.

Culture change is key to any organization attempting to transform from what it was to what it needs to be.

At Digital First Media that change has been most evident in our newsrooms and content processes but it has also played a huge role in the sales process and how we go to market.

All digital start-ups talk about failing fast. In print we are masters at failing slow – the industry is in its 17th- straight year of paid circulation decline.

And it is true that print dollars are becoming digital dimes to which our response at Digital First Media has been – then start stacking the dimes.

All of that requires a big culture change. A change that requires an adoption of the Fail Fast mentality and the willingness to let the outside in and partner.

At the Journal Register Company – and now soon to be rolled at Media News Group – failing fast has been a key to driving success.

We are now launching about one new sales product each week. We source centrally and train and implement locally. Our local sales forces call it the The Firehose. An unending stream of products and ideas because in this transition no one knows what will work unless you try.

To fill that firehose requires partnering. And just like in yesterday’s newsroom the old-fashioned closed salesfloor didn’t partner very well. That’s now changed.

The results have meant that at the Journal Register Company those dimes have stacked up to 5 times more digital revenue in 2011 than 2009. And those dimes now more than pay for all of Journal Register’s newsrooms. This is a performance about to be repeated at Media News Group.

So where does this lead us?

If newspapers can change and become multi-platform news companies – and I think we and the industry have demonstrated that we can change.

And if newspapers can learn to partner with both the Audience and the right content, sales and audience development partners.

I would suggest to you it is time for the newspaper industry to move from the defensive and onto the offensive. Time to step forward into the fight for our markets.

Because we can change and we have learned to partner and we already have the scale – as does the rest of the newspaper industry – that just about every content and sales start up is looking for.

At Digital First Media compared to most start-ups in our field we are very much outpatching the likes of, well, Patch.

With 57 million customers each month on all platforms in hundreds upon hundreds of markets with our quality brands and the largest contingents of content and sales personnel we are driving $1.4 billion of total revenue. About $1 billion of that is in advertising and of that about $130 million is digital advertising.

And we are just getting started.

We know we can’t do this alone and we have learned the power of partnering – particularly with start-up pioneers like SeeClickFix and DailyMe – to drive our transformation from print to digital.

To that end we are launching in Q1 of next year Digital First Ventures

The new company will make investments in tech start-ups focused in the areas of content, advertising and audience development.

Partnering is vital to any media company’s growth whether it is an established media company or start-up. We are going to marry our considerable scale with start-up innovation to build success.

We’ll be releasing more details on this at a later date.

So, I put it to you, that in the newspaper industry, you now have an industry willing to change, attempting to change, experiencing some failures but also some successes.

And while the final form of that future success is yet to be revealed, I would not – with new partners’ help – count us out in getting there.

New Bosses, New Structure and What You Can Do

Folks,

Without proactive change there is no future for newspaper companies in a Digital age.

At MediaNews Group and Journal Register Company we understand that and are shifting our rate of change into high gear. About a month ago we announced the leadership of the newly formed Digital First Media to run both companies.

Since then, company President Jeff Bairstow and I have been working with key management and today we are announcing a number of operational changes, initiatives and management appointments that will put the right leaders in the right structure to effectively implement our Digital First strategy.

Our strategy is simple – allocate the right resources to drive Digital audiences and monetization while effectively reducing our old legacy infrastructure costs. In other words, grow Digital products, platforms, content offerings and revenue – and grow them fast. And, at the same time, protect our print business.

In the newspaper industry Digital transformation is a bit like the weather – everybody’s talking about it but few are doing much about it at all. That won’t be the case at MediaNews Group and Journal Register Company.

We are putting into place a new structure that centralizes non-local content production, digital product and sales development, sales support and IT to provide solutions back to the Company’s local markets.

The new structure will allow local markets to focus on what they do best – the creation of local content, the growth of local audience and engagement and the monetization of that growth. It will speed up our time in launching new and needed digital products, reduce costs and let us maximize the scale of Digital First Media’s resources and market footprint.
Moving forward, under Digital First Media, the new operational structure for Media News Group and Journal Register Company includes:

All editors on ALL platforms reporting to Jim Brady, Editor-in-Chief of Digital First Media. Dave Butler, as previously announced, will be Executive Editor and will also continue to oversee all California newsgathering operations as our West Editor. Greg Moore of The Denver Post will also serve as our Central Editor and oversee Colorado, Texas, New Mexico and Minnesota. The East Editor, who will oversee Michigan, Ohio, Pennsylvania, New York and New England newsrooms, will be named at a future date. As before, editors will maintain their reporting relationship to their respective publishers.

All sales leaders on ALL platforms will report to Kirk MacDonald, Executive Vice President of Sales for Digital First Media. Adam Burnham, as Senior Vice President for Local Digital Sales, will be responsible for all local digital revenue in all markets. Chris Coda is named Senior Director of National Digital Sales and will be responsible for leading all digital national advertising sales across Digital First Media. Mike Petrak is named Vice President of National Print Sales and will lead all national print advertising.

As well, a number of Regional Vice Presidents for sales have been named, each with a solid track record in driving digital revenue. Pete Casillas will be responsible for California while Erik Smelser is responsible for the Northeast including New York, Connecticut, Massachusetts and Vermont. Kevin Haezebroeck and Ed Condra, who, respectively, already have responsibility for our properties in Michigan and Ohio plus Pennsylvania will take on sales responsibilities as well in this structure. Kirk will also do double duty and directly watch over sales in Colorado, Texas, New Mexico and Minnesota.

As before, sales leaders will maintain their reporting relationship to their respective publishers.

The Company’s Digital strategy, including ALL product deployment, will be led by Arturo Duran, Chief Digital Officer of Digital First Media. Alison Kane is the new Senior Vice President of Digital Products and Business Development and will be responsible for bringing all new Digital products to market and implementing Digital First Media’s business development strategy. Scott Cunningham is appointed Vice President for Digital Technology and Platforms and will be responsible for all Digital publishing platforms. Patricia Rodeawald is the new Vice President of Digital Product Development responsible for coordinating all centralized Digital product launches.

As previously announced, Chief Technology Officer Bob Mason is responsible for all of the Company’s system selections, deployments and I.T. infrastructure. Steve Rossi, Executive Vice President of Digital First Media, will oversee all California operations including Bay Area Newspaper Group and Los Angeles Area Newspaper Group. Jerry Grilly, Executive Vice President of Digital First Media, will oversee all Colorado, Texas, New Mexico and Minnesota operations. Tom Wiley, Executive Vice President of Digital First Media, is in charge of MediaNews Group’s New England properties including Media One and NENI. And all Human Resources functions will be centrally led by Robert Monteleone, Chief Human Resources Officer for Digital First Media.

If you are unclear about how any of these changes affect you just ask your supervisor.

What Can You Do?

Ok, so those are the new bosses but this Company isn’t going to change without you. We need everyone’s help in accelerating our Company from its print past to its multiplatform future.

To that end, Digital First Media is extending Journal Register Company’s ideaLab to include MediaNews Group employees.
To start, we are going to equip 25 MediaNews Group employees with the latest tools and give them the time and money to experiment with them. Each member of the ideaLab will be equipped, initially, with a Smartphone, tablet and laptop.

The Company will carve out 10 hours a week from their regular jobs to allow them time to experiment with these tools and report back on how we can change our business for the better. And we will add an extra $500 per month to their pay. Other than that – there are no rules.

How do you become a member of the ideaLab?

In about 200 words or less, what would you do with the tools and time to improve our business? Email me at jpaton@digitalfirstmedia.com or post here on my blog. Any MediaNews Group employee in any division or any department – part-time or full-time – is eligible. I will involve Digital First Media’s Advisory Board in the selection of the 25 staffers and make sure we let you know the names of the winners.

Okay, now it’s over to you.

Until next time,
John.

Digital First: The Next Step

Folks,

Today marks another important step for Digital First.

As announced earlier this morning, we have formed a new company – Digital First Media Inc. It will manage both the Journal Register Company and Media News Group and its mission will be to accelerate the transformation of both these great firms to a modern, multi-platform media company focused on local news.

And, let me tell you, it will be a powerhouse out of the gate with more than 880 products in 18 states serving more than 57 million Americans per month. More than 41 million of those customers are digital-only creating one of the largest online news networks in the country.

I will head Digital First Media as Chief Executive Officer as well as be CEO of both JRC and Media News.

Newspaper companies aren’t supposed to be able to change. Haven’t you heard?

Here’s another one: Digital dimes can’t replace Print dollars.

Then this: No one wants what we have to offer.

And then this one: Digital revenue will never be able to pay for a newspaper’s newsroom.

We are supposed to be out of ideas, out of money and out of energy. To our competitors, I say keep thinking that. It will make this transformation easier.

At JRC we have blown up a lot of that received wisdom from newspaper critics.

Since implementing our Digital First strategy in mid 2010 our Digital audience has doubled to more than 12.3 million uniques and our entire audience has grown from 14.9 million monthly customers on all platforms to nearly 21 million customers.

That’s more customers for what we have to offer. A lot more.

In Q2 of this year, 10 of JRC’s 18 dailies are up year over year in advertising or within 2% of last year’s ad revenues because of digital advertising growth. JRC newspaper digital revenue grew more than 81% year over year in Q2. That’s against an industry average of less than 10%.

Digital dimes can replace Print dollars.

And if our dailies continue on the trend they are on right now, by the end of the year they will have brought in more digital revenue than the costs of running their newsrooms.

Digital revenues can pay for newspaper newsrooms.

This battle to transform newspapers is far from over but now under the Digital First banner Journal Register Company’s employees are joined by the innovative men and women of Media News Group.

From storied titles like the Denver Post, San Jose Mercury News and St. Paul Pioneer Press an enormous amount of digital initiatives have been underway to transform Media News Group.

Now, together, we are going to accelerate that transformation.

All of us have one goal – to preserve quality journalism in the communities we serve.

And we are going to bring along the Crowd to help us. News is created and consumed very differently these days. The folks we used to call the Audience have a stake in this because they have a stake in their communities. The same communities we are dedicated to serving.

We believe without quality journalism there is no democracy. No First Amendment without a vibrant Fourth Estate.
This is the proposition we are dedicated to.

Collectively, we will harness the energy of nearly 11,000 employees in JRC and Media News to meet that challenge.
Because, we are not of out ideas, we are not out of energy.

We are just getting started.

Until next time, John.

Our Next Big Step

Folks,

Today we announced that the Journal Register Company has been bought by Alden Global Capital. And that’s terrific news for us.

Alden has been an investor in our Company for some time and they have had a courtside seat to the Journal Register Company’s radical makeover following our Digital First strategy. They know what we do, they like what we do, and today they are putting their money behind our efforts.

Alden knows the media space well and has other newspaper company investments. Today’s announcement is a ringing endorsement of your efforts and demonstrates Alden’s confidence in our business model. Importantly, it also positions us well to continue to pursue our Digital First strategy and expand our Company going forward.

So, we stay on our Digital First plan with our team and goals intact but this time with a solid financial partner backing us all the way.

We have miles to go but today marks one very important step on our journey.

I know you will have questions – email me or post them and I will do my best to answer them.

Here is the press release http://bit.ly/mTXyXA .

Until next time, John.