Both The Detroit News and Free Press will offer limited home delivery and "express" editions with "e-editions" in response to declining print ad revenue. No cuts to editorial staff are planned. To reduce costs, the papers will cut home delivery and paper size while maintaining staff by combining newsrooms. It is uncertain if these changes will be successful as most loyal readers are older and some may not access alternative sources. News media companies need to reevaluate their role from prime news source to social influencer.
2. The Detroit News In December both the The News and Free Press announce the are moving to limited home delivery. Non-home delivery editions will become express editions. Both papers will offer e-editions enhanced PDF versions. No reductions in editorial staff.
3. Newspaper economics Print ad revenue dropped 19.3 percent to $8.19 billion from $10.15 billion. Online ad revenue fell 3 percent. That was before Christmas. January could be off as much as 25% Every ad sector is off. McClatchy had operating income of $40 million last quarter, but its debt service was $34. Stock below $1
6. Alternative model Largest costs people, paper, transportation. To reduce costs, cuts would come out of the newsroom. Combining newsrooms was not a choice. Reducing home delivery and paper size allows both newsrooms maintain staff. 85% of advertising clustered in remaining home delivery days.
7. The new Detroit News What do you keep or drop in a 40% smaller paper? What content do you move to the web? What kind of paper do you build if you are not a first read? How do you change a paper and not drive away readers? If people buy a paper to read, how do you give them less?
8. Will this work? Nobody knows for sure Most loyal readers are older, some may not have access to sales locations. Current street sales 35% Will advertisers migrate their ads. How do we make up the remaining 15% of revenue?
11. News medias role We live in a news fog. How do we stand out? News media companies need to reevaluate their role. Prime source to social influencer. Prime source Local expert Social connector Social influencer
12. multi-functional journalists Reporter- Blogger- Beatblogger Photographer- video producer Content editor- Social media editor CAR reporter- Database manager Designer- programmer