Newspapers' future not black or white
Having started this blog by warning of the threat of falling circulation among Scotland's newspapers, I hadn't expected the crisis would descend quite so fast. But Johnston Press - owners of The Scotsman and Scotland on Sunday - has seen its share price falling through the floor this week.
Eighteen months ago, the Edinburgh-based company's share price was touching 500p. A year ago, it had sunk to 215p. It is trading today below 7p. So the Edinburgh stable of prestigious titles, along with more than 300 local and regional papers and more than 300 websites, employing 2500 journalists and 5500 others, could be yours for under £50m.
If it keeps going this way, you could pick up the company quite cheaply as a Christmas present for a friend - or better still for an enemy, as it would involve saddling them with huge debts. It is one media industry analysts' view that Johnston Press risks failing to meet its banking covenants that has pushed the share price so low this week, with investors watching warily as advertising revenues fall steeply.
If this crisis for Johnston Press continues, it could find itself being broken up. And while there is a shortage of buyers for newspaper titles these days, that opens up the renewed prospect of The Scotsman being bought by one of its rivals, three years after Johnston bought it from the Barclay brothers. The Glasgow-based Herald, for instance, is watching closely and could be interested in the savings from combining the two operations in one head office while keeping the mastheads separate.
DC Thomson, owner of the Courier and Sunday Post, bought the Press and Journal and makes such a system work. The Dundee family firm could be another option for The Scotsman, if it is interested in expanding its empire down the east coast.
Or there's the Malaysian investor Ananda Krishnan who helped out Johnston Press earlier this year by taking a 20% stake. Asian newspaper markets have been growing strongly, while they fall in Europe and the States, so perhaps he reckons he has what it takes to turn around The Scotsman's waning fortunes.
Comment number 1.
At 20th Nov 2008, AngusMiasma wrote:As a former Johnston Press employee, I have to say I'm not overly surprised by the falling share price.
They've initiatied a raft of takeovers in recent years, and I always thought they were spreading themselves too thinly.
Now the credit crunch has begun to bite, advertising revenues have fallen and the markets have begun to realise the same thing for themselves.
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Comment number 2.
At 20th Nov 2008, oldnat wrote:In the US, the Christian Science Monitor is already an online-only "paper", and the NY Times is in deep trouble.
Newsgathering by most papers seems to have declined to the extent of doing online searches, then recycling the results.
There doesn't seem to be much future for the print media.
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Comment number 3.
At 20th Nov 2008, Wee-Scamp wrote:Oldnat...
I agree... The Scotsman in particular has become very tedious to read...
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Comment number 4.
At 20th Nov 2008, PJG1970 wrote:This comment was removed because the moderators found it broke the house rules. Explain.
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Comment number 5.
At 20th Nov 2008, macgilleleabhar wrote:PJG1970
You have summed it all up nicely.
Except for the compulsory license fee the ´óÏó´«Ã½ would be defunct as well.
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Comment number 6.
At 20th Nov 2008, oldnat wrote:What would really attract me would be an online Scottish "paper" which would allow me to identify the issues I want to read about, and carry both impartial news items about them, plus analysis articles from good journalists writing from different perspectives.
Obviously my preferences would start with Scottish politics, but there are others who would want a similar structure to allow them to select pop culture and related issues that I don't want even to appear on my radar!
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Comment number 7.
At 20th Nov 2008, lordBeddGelert wrote:Dougie,
This is from the Institute of Welsh Affairs website - a speech by Carolyn McCall of the Grauniad, which you may well already be aware of, where she refers to Emily Bell's description of the ´óÏó´«Ã½ as a 'benevolent dragon' "albeit one that can destroy entire villages with a careless swish of its tail."
Some food for thought here ? Although fear not, as having a local, devolved assembly can resolve all such issues...
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Comment number 8.
At 20th Nov 2008, lordBeddGelert wrote:And one of the Assembly Members puts her two penn'orth in as well..
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Comment number 9.
At 20th Nov 2008, oldnat wrote:#8 lordBeddGelert
A really difficult part of the solution is that Scotland and Wales have different political dynamics from the UK (though we also share in that dimension), and these dynamics are not properly represented.
The US has no "national" print media, and its regional papers are under significant threat.
The "Trust" concept is an interesting one, and might provide a solution for both our countries. However, such a trust would need to be politically balanced, as opposed to the Guardian's left-of-centre UK model.
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Comment number 10.
At 21st Nov 2008, benaryeah wrote:Having written for both the Scotsman and Scotland on Sunday - the 'rot'set in with the arrival of the brothers Barclay.
Over a period of time, respected 'wordsmiths' started leaving and the standard of journalism has dropped from that of a thought provoking and investigating broad sheet to the level of so many of the other parent company's weeklies.
'Reading the Scotsman is tedious' one blogger has commented ...YES - because of the lamentable standards of baby journalists, coupled with the fact that the management won't spend a PENNY on investigative work....
Within the next five years - the newspaper profession in Scotland will be DECIMATED... or worse
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Comment number 11.
At 21st Nov 2008, Wee-Scamp wrote:Anyone remember Business AM...
A highly informative online publication that was wonderfully irreverant.
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Comment number 12.
At 21st Nov 2008, Deasun1967 wrote:How ironic that Douglas Fraser should lament the demise of the Scottish press when he has done so much to accelerate that decline. Mr Fraser is one of the reasons why I am no longer a regular Herald reader - the misleading headlines, the buried leads, the partial coverage and obligate recycling of Labour Party press releases hardly justify the designation 'quality press' or indeed its cover price. Give me a diverse press which challenges, questions, analyses and investigates all perspectives rather than simply replicating editorial bias. At one time, I would alternate between the Herald, the Scotsman, SoS and the Sunday Herald. At the moment, all seem to be in decline.
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Comment number 13.
At 21st Nov 2008, oldnat wrote:#8 lordBeddGelert
I note that the ´óÏó´«Ã½ Trust has now said this proposal will not go forward.
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Comment number 14.
At 21st Nov 2008, lordBeddGelert wrote:Check this out about ´óÏó´«Ã½ Wales and their plans for more video on local websites..
Looks like the Newspapers are fighting back..
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Comment number 15.
At 21st Nov 2008, lordBeddGelert wrote:Oops...
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Comment number 16.
At 21st Nov 2008, uk_abz_scot wrote:Douglas I find the Tory bias of the local press awful. Let them go bankrupt (or at least eat cake).
In in the North-East recently the PandJ/EE (Press and Journal Evening Express) ran a sympathetic story about strike breaking by Mr Soutar of Stagecoach. Were I a Stagecoach employee would I by the PandJ/EE ?
These local papers only represent a strand of local opinion.
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Comment number 17.
At 21st Nov 2008, uk_abz_scot wrote:Douglas I find the Tory bias of the local press awful. Let them go bankrupt (or at least eat cake).
In in the North-East recently the P&J/EE ran a sympathetic story about strike breaking by Mr Soutar of Stagecoach. Were I a Stagecoach employee would I by the Press and Journal ?
These local papers only represent a strand of local opinion.
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Comment number 18.
At 21st Nov 2008, santabaws wrote:I worked on scotsman.com for many years. About three years ago, despite strong advice from staff, senior management in Johnston Press proceeded to trash the website.
The senior guys in charge of JP digital (then and probably now) are completely inept and it's no surprise that the shares have crashed.
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Comment number 19.
At 26th Nov 2008, AngusMiasma wrote:I completely sympathise with you santabaws (post #18).
I was a reporter with Johnston Press for several years, and updating our paper's website was one of my many roles.
I used to use the Scotsman website - the archive in particular - when I was a student but, as you say, as soon as they took over they trashed it in favour of their more 'uniform' UK-wide web-template.
It destroyed the newspaper's unique online presence and replaced it with a template which was less than water-tight.
What bugged me most though was that the folk pushing these and other major changes (in Peterborough, where Johnston have their head office) just didn't have the foggiest idea how to run the news side of a paper - their backgrounds were all in advertising.
And that was all they thought about - to the detriment of everything else. Yes, advertising revenue is vitally important, but people don't buy a paper for the ads!
If you undermine the press side of things, all you do is shoot yourself in the foot, because readership plummets and that forces advetising rates down.
It's common sense but so many in the upper echelons of the industry seem to forget that simple rule far too often.
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Comment number 20.
At 28th Dec 2008, dennisjunior1 wrote:Douglas,
Newspapers will never go out of fashion....
~Dennis Junior~
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Comment number 21.
At 14th Apr 2009, koneka wrote:Circulation of newspapers has been falling for a while now. In the fast moving era of technology, media businesses have to be able to adjust very quickly. There is no time for scheduled board meeting, which decide which way the company should go, decisions have to be made on the spot and they are better be right decisions. Consumers are no longer prepared to pay £1 for something which is available online. If we can buy online, we should be able to do the same with newspapers.
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Comment number 22.
At 2nd Sep 2009, LohanP wrote:This comment was removed because the moderators found it broke the house rules. Explain.
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Comment number 23.
At 2nd Sep 2009, Diabloandco wrote:Aaaah! Double talk!
Of all the newspapers still managing to hang on to readership the Aberdeen papers win the prize.
Tory bias ? You're having a laugh!
Or are you the B´óÏó´«Ã½ balancing blogger?
You know the one they cite every time they are accused of bias -
" we get accusations of bias from all sides so we can't be!"
That one?
Or just a troll?
Or internet vermin?
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