It’s funny. Just about every year for the last five or so, I figure that I’ve written my last program on the newspaper industry. That magnificent giant of another era has been dying by leaps and bounds for quite a while now. Newspapers have been a big part of my life, both personal and professional. Growing up it was the sports page and the funnies. As a broadcaster, I would scan through a couple of them every day to stay in touch with both the local, national and world news. Plus the sports page and the funnies.
Yet every time I think I’m finally done with the subject, something pops up that says newspapers aren’t quite dead yet. Just last month, folks in the media perked up their ears when they heard that one company had just bought most of the largest newspapers in Connecticut. A company that was expanding its paper empire and, astonishingly, seems to be making a profit in the business.
The company is Hearst, one of the oldest newspaper companies in the nation. Founded by William Randolph Hearst in 1887, the Hearst Newspaper Group now owns 22 daily papers and 64 weeklies. And they say they remain in acquisition mode.
And why not? Based on what little can be found out about the internal finances of the company, Hearst is privately held and very private about their company, they seem to have built profits in the group for the last five years. Now the larger Hearst company, known as Hearst Communications, Inc., is more than just a newspaper company. They have investments in print, television, and cable, which includes twenty percent ownership of ESPN. Plus their most profitable division deals in business information. The ten billion dollar a year company has made its way from the days of its glorious founder, who was the inspiration for the title character in the classic movie “Citizen Kane”, to today by being smart.
In terms of the newspaper division, that means keeping a long view of what they are trying to do and finding efficient ways to do it. That means they do what they can to keep operating costs low so that they can focus on content and sales. They are also investing in more newsroom staff, which is usually a place we’ve seen companies cutting. They are taking the approach that the best way to serve a local audience is to make sure that you are both covering the local news and know the local community inside and out.
When you put it that way, it sounds so simple. In fact, it was the basis of the old model for local media. It will interesting to see how the next five years turn out.
There may be a few more newspaper stories yet to come.
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