Archive for February, 2009

Atkinson’s will would have set up Toronto Star as charitable trust

Thursday, February 26th, 2009

I learned this week that Joseph Atkinson intended the Toronto Star to be run by a charitable trust after his death, which came in 1948. It didn’t work out that way though because of the Charitable Gifts Act, passed after his death, which prevented a charity from owning more than 10 per cent of a business entity.

The Atkinson Charitable Foundation was incorporated in 1942, something the publisher undoubtedly thought reassuring. “There need be no worry on that, ” Atkinson said, responding to a reporter’s question about the fate of the paper after his death. “I am fixing things so nobody can destroy my paper.”

The idea of establishing a charitable foundation and leaving the paper to it was not entirely new to him, his chronicler wrote. He saw newspapers as “public institutions and not simply private enterprises.”

Atkinson left an estate of more than $8 million, the bulk of it to his namesake foundation which, said his will, would direct the profits “for the promotion and maintenance of social, scientific and economic reforms which are charitable in nature, for the benefit of the people of the province of Ontario.”
[...]
On the final page of his book, Harkness stated that while taxpayers gave up $5.6 million in succession duties on Atkinson’s estate in 1948, over the next 14 years they got back more than $7.2 million in grants for educational, medical and charitable purposes. Since 1959, the foundation has distributed a total of $58.9 million to Ontario charities. There remains debate on how much more or less might have been generated for charity if the foundation had retained control of the newspaper.
Atkinson’s will kept Star’s resolve Toronto Star 6 Nov 2002

Atkinson’s son and four other from the Star’s senior management — including John Honderich’s father Beland — created Torstar Corporation and the Voting Trust to hold the controlling share.

I am still not clear on what the actual share structure is for Torstar, but it would seem to be similar to other newspapers that have some kind of purpose other than profit like the St. Petersburg Times, which is owned by the Poynter Institute journalism school; the Guardian, which is owned by the Scott Trust, or Independent Newspapers Inc., owned by INI Holdings. In the Star and those cases there are principles, like the Atkinson principles, to be upheld or also the flow of profit goes to supporting charity or reinvested in the news operations.

With Torstar profits do go to shareholders, though the company announced today it was cutting the dividend.

This story shows how there have been obstacles to furthering news as a public good.

CBC in trouble

Thursday, February 26th, 2009

There’s no reason the current perfect storm of media trouble shouldn’t hit the CBC. That said, the Ceeb’s situation is at once easier and more complex, with governments suddenly eager to pump money in to save businesses, but this particular government historically chilly to the public broadcaster.

And so, a Star story on the CBC’s quest for a federal loan to stem a $65-million advertising shortfall is chilling.

“It’s a perfect storm, the beginning of a death spiral,” the story quotes Ian Morrison, spokesperson for Friends of Canadian Broadcasting, a broadcast industry watchdog group, as saying.

It’ll be interesting to see whether the CBC weathers the downturn any differently than other organizations. Of course, one of the alternative business models we here at Working Title are examining is public funding. We interviewed Tom Watson, from Canadian Business Magazine, whose masters thesis focused on the question of a publicly funded newspaper. Here’s what he told us:

Simply put, Canadians are guaranteed a press press. But daily newspapers live and die by advertising. They have to limit reporting to white space generated by the market. To get advertisers, they must print what sells, which is why today’s papers have colour, larger text and a lot of feel-good or sensational stories designed to attract readers, not educate or edify them.

There is the CBC, which is supposed to do a better job at journalism than other stations thanks to public funding, but it isn’t free to do whatever it wants and newspapers can do a better job at reporting detail that TV spots.

My idea for a free press, which I’d argue is philosophically required to educate masses in a true representative democracy, is to set up a national paper, maybe just during election years, maybe all the time. It would be delivered free to all voters, maybe online. It would just cover news and public policy debate. Staff would be selected by lot from the ranks of the Canadian media with 5-plus years experience. They would serve fixed terms. Funding would be written in stone by a constitutional amendment, not subject to political goodwill or ads (although political party could be offered equal space to sell itself).

Interesting ideas, though we’ll have to wait to see how the CBC’s position at the mercy of a potentially unfriendly government purse works out.

Introducing Bankruptcy Watch

Thursday, February 26th, 2009

Today marks the beginning of a special section we’re calling Bankruptcy Watch here at WorkingTitle. The news of struggling, and failing, media organizations is overwhelming, now coming daily. We’ll endeavour to keep track of it all here for you, under the Bankruptcy Watch category.

On a merger of Harvard and the Times

Thursday, February 19th, 2009

On his blog, Bob Massie parallels the purposes of the newspaper and the university. For a provocative blog post, he explores the thought experiment of the New York Times and Harvard University merging.

At first I wonder about how apt each one is for the other in a practical sense.

Students at Harvard Student Agencies do publish the successful Let’s Go! budget travel guide with student writers updating the books each year. A more relevant example may be the Poynter Institute which owns the St. Petersburg Times.

Could the Poynter-Petersburg arrangement be better as a merger though, rather than a ownership-profit setup. Let’s see what Bob has to say:

Currently both universities and newspapers rely on the same old-fashioned and restrictive business model: they try to channel the flow of information into a bottleneck which they control, and then they charge people for access to the information. We know that some forms of learning can only take place among actual human beings learning from each other in “meatspace” (though I prefer the term “meetspace.”) But as both the news and the human intellectual genome bottled up in colleges are increasingly released on to the Internet for free, the justification for these forms of restriction will begin to fall. And more and more are recognizing that global free education is a right, not a privilege. Equally important, it is possible.
[...]
In an era when it would be cheaper for the New York Times to buy a Kindle reader for every subscriber rather than to keep cutting down trees, when more and more people get their news on Google than through a subscription to any one paper, and when universities are trying to blow up the walls and silos that keep their brilliant employees from solving multidisciplinary problems and to share the courses openly on the Internet, we need to rethink how information and education are linked — from scratch.
“BREAKING NEWS”: Why the New York Times and Harvard Should Merge 7 Feb 2009

Isaacson advocates reader micropayments for news in Time

Wednesday, February 18th, 2009

“Newspapers and magazines traditionally have had three revenue sources: newsstand sales, subscriptions and advertising. The new business model relies only on the last of these. That makes for a wobbly stool even when the one leg is strong,” writes Walter Isaacson in the Thurs 5 Feb issue of Time Magazine.

Isaacson leads the Aspen Institute and formerly headed CNN and was managing editor at Time.

He writes the covers story on the issue that is in the worries if not on the minds of newspeople these days, how can news reporting work in the future.

His solution for where the money will come from is different from those who suggest foundations or government funding and prepaying crowdfunding. He does acknowledge those ideas though.

“That’s fine. We need a variety of competing strategies,” he writes.

His answer is to maintain a relationship and responsibility to the reader through micropayments.

Time cover Walter Isaacson How to Save Your Newspaper

Time cover Walter Isaacson How to Save Your Newspaper

Under a micropayment system, a newspaper might decide to charge a nickel for an article or a dime for that day’s full edition or $2 for a month’s worth of Web access. Some surfers would balk, but I suspect most would merrily click through if it were cheap and easy enough.

The system could be used for all forms of media: [...] This would not only offer a lifeline to traditional media outlets but also nourish citizen journalists and bloggers. They have vastly enriched our realms of information and ideas, but most can’t make much money at it. As a result, they tend to do it for the ego kick or as a civic contribution. A micropayment system would allow regular folks, the types who have to worry about feeding their families, to supplement their income by doing citizen journalism that is of value to their community.
How to Save Your Newspaper Time 5 Feb 2009

He also tells a story about how as a boy in Louisiana his friend took bags of ice from the gas station arguing that it should be free. “We didn’t reflect much on who would make the ice if it were free[...].” It is interesting that he feels he has to use this story of ice to illustrate the point.

It takes resources to produce and has value, so the readers, the beneficiaries of the news, should be given the opportunity to pay for it.

National endowment proposal needs better model for allocation

Friday, February 13th, 2009

The Guardian has an opinion piece from Yale professors Bruce Ackerman and Ian Ayres arguing for a national endowment for investigative journalism.

They rightly recognize, as we do, that it is not about saving newspapers but saving news. They argue that, rather than the options of charity subsidized reporting or public broadcasters, a national endowment should fund investigative projects.

There is a third way out. We urge democracies throughout the world to consider the creation of national endowments for journalism that are carefully designed to confront the impending collapse of investigative reporting.
[...]
Here is where our system of national endowments enters the argument. In contrast to current proposals, we do not rely on public or private do-gooders to dole out money to their favourite journalists. Each national endowment would subsidise investigations on a strict mathematical formula based on the number of citizens who actually read their reports on news sites.
A national endowment for journalism guardian.co.uk 13 Feb 2009

There is weakness in the model of offering funding based on popular views. Attracting attention does not equal importance. Worthwhile investigations may cost more to conduct. And the value of invesitgative journalism is just from informing the public, but influencing public policy and keeping power in check.

And then, most obviously, there is only something to view after the investigation. So, in their model someone still has to put up the money and take the chance that the proceeds will get the hits.

There are weaknesses in the implementation that Ackerman and Ayres describe, but since there is public value in digging for news, there should be public funding for it. It is though, merely one of many solutions and part of the mix of answers for news in the future.

Old newspaper money

Friday, February 13th, 2009

I was struck, wandering through the renovated Art Gallery of Ontario yesterday, by contrast. At a time when the newspaper industry is so much in trouble that no one seems willing to predict where the bottom might be, I checked out Ken Thomson’s donation to the gallery, worth several hundreds of millions — roughly the amount of immediate debt the New York Times was struggling to deal with before Carlos Slim stepped in.

Of course, Thomson’s money wasn’t all newspapers. The comparison is hardly a fair one. But it’s tempting for the strength of the contrast, and the notion that there may never be such a thing as a new-media mogul.

Is more competition always better?

Friday, February 13th, 2009

As the daughter, directly, of an economist and, indirectly, of a failed communist country, I’ve been brought up on the belief that more competition is better. And so it was a bit of a surprise to me recently when I found myself wondering whether there’s a ceiling to that notion.

But here’s how the argument, which I’m still bouncing around in my head, goes: certainly, competition, especially in the news business, has many pluses. I was city hall reporter at a small daily in a city where the only real competition was a paper that came out on Tuesdays and Fridays, and went heavy on the feel-good community stories as well as on city hall. I certainly noticed my editors were more aggressive in assigning stories for our Tuesday and Friday papers, for fear of being scooped. Good so far.

But it seems we might be at a point where competition is hurting. The quality of news has, arguably, been improving over the last several decades. We’re at a point now, though, where papers are cutting staff, reducing foreign budgets, cutting down on investigative reporting. And it’s all because there’s too much competition. With hundreds of news organizations offering news free online as well as attractive places to advertise, the market seems to have simply fragmented beyond the point where any one organization is able to deliver quality. The audience still exists — it’s just that it has zillions of places to go for what it wants.

It’s a hard argument to make. I went to journalism school in Vancouver, a city where the two dailies, many of the weeklies and one of the television stations were all owned by the same company. People — not just journalism students — were worried, reasonably, about what this meant for their understanding of the world.

But maybe it’s time to take a little step back and try to understand how much competition helps, and how much hurts.

The burning question

Friday, February 13th, 2009

How are we going to get local news if this economic crash takes down legions of local papers? That’s been a burning question for me, and one that was tackled by prominent news folks writing in the New York Times this week.

Interestingly, there’s little mention from these folks of different journalism business cases. It does come up, certainly — Joel Kramer, formerly of the Minneapolis Star Tribune (which last month filed for bankruptcy), has started a not-for-profit regional website, MinnPost.com; Craig Newmark of Craigslist (whom newspaper editors must, in their deep dark unshared thoughts, blame for some of the current quagmire) suggests foundation-funded ProPublica and crowd-funded spot.us might be the way of the future.

But many of these folks — the dean of the Columbia School of Journalism for instance — suggest, mostly, more of the same. While charging more for news would certainly change the financial model, it’s a tweak at a time when things have changed so much it just might be time for an entirely new model.

Some highlights from the article:

Nicholas Lemann, dean of the Columbia School of Journalism, makes interesting points about being clear what we want to protect when we lament the loss of good reporting. He suggests that if papers have been “good,” it’s only been in the last generation or two.

…until a few decades ago most big-city newspaper reporters did work more like Hildy Johnson’s in “The Front Page” than like Woodward and Bernstein’s during Watergate.

That sounds like cold comfort, though I suspect what he’s trying to say isn’t that we’ve settled for it before so we can settle again, but rather that we needn’t expect the death of democracy to accompany the closure of a few newspapers.

Joel Kramer, former editor, publisher and president of the Minneapolis Start Tribune, makes an argument similar to ours for not-for-profit news organizations.

Given the sharp decline in what advertisers will pay to reach eyeballs, I don’t know if there is a way for high-quality journalism to be profitable any more, especially locally. …

That’s why I’ve started a regional journalism Web site based on a not-for-profit model. MinnPost.com sells ads and sponsorships, but much of our revenue comes from annual donations from people who care about serious news coverage of Minnesota. Serious journalism is a community asset, not just a consumer good, and people (and foundations) should support it, as they support museums. We’ll see if that argument persuades enough people.

And if it doesn’t, he has a backup plan: charge more for news. Expect circulation to drop, but perhaps revenue will go up. It’ll take a special combination of adventurous management and financial desperation for papers to try this one, I expect.

Geneva Overholser, director of the Annenberg school of journalism at the University of Southern California, suggests newspapers partner up with whoever is doing successful newsgathering in their community — the arts organization that has good events listings, the bloggers that are good arts critics — and then focus on the tasks that are underserved in their community as a way of allocating limited resources.

Our visit to Port Hope

Wednesday, February 11th, 2009

Magda and I travelled to Port Hope this weekend to research The Crier of Port Hope.

We met with John Miller at his office in Toronto on Friday. Before the interview, he said “I wish I had thought of that idea,” which was welcome encouragement for our project. He told us the story of the Local Newspaper Committee and how they started and ran a newspaper, The Crier, for a year and a half.

John also gave us copies of some of The Crier issues and a T-shirt.

On Saturday we drove to Port Hope. After arriving, we explored the town until the archives opened. In the little brick building that houses the Port Hope Archives, we spent two hours flipping through the five boxes of papers, taking notes.

The e-mail communications we particularly interesting because it gave us a feel for the discussions the criers had at the time.

We had to rush back up Ridout Street to the Winchester Arms to meet up with Bill Edwards, one of the Crier founders, and Sophie Kniesel, who became editor after a few issues. We chatted with them and listened to their stories of what Bill calls “a great adventure.”

Tuesday morning, now back in Waterloo, we interviewed Denis Smith, who now lives in Ottawa, on the telephone.

Soon, I’ll put up some photos of our trip and we’ll post more about our research on the Crier.