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January 2006
Time Inc. Cuts More Jobs
AdAge reports that Time Inc. has laid off 66 employees and that with buyouts the number could climb to a total job loss of 100 positions.
Today's cuts included 26 editorial employees who were not members of the union there and 40 business-side staffers. The guild members who were offered voluntary buyouts have until Feb. 13 to decide whether to accept. The company declined to identify those employees sent packing today but said they do not include top-level executives like those who were let go in the round of layoffs in December. Some people will be replaced, but some will not; much depends on the response to the buyout offers.
Today's cuts follow job cuts of 105 positions last December.
Posted on January 30, 2006
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More Cuts Coming at Knight Ridder?
A Wall Street Journal article says layoffs, newspaper size and benefit cuts may all in be part of future plans for Knight Ridder newspapers.
The vision, according to people familiar with the plan, involves increasing annual earnings before interest, taxes, depreciation and amortization to about $825 million over the next 18 months. That represents an improvement of about 20% from 2004, when the company reported Ebitda of $685.9 million.
To reach that level, the company sees a buyer relying on "streamlined" operations as well as a plan to reduce the physical sizes of some of Knight Ridder's 32 daily newspapers.
Reducing costs is key to a company whose revenue has barely been keeping pace with the overall rate of inflation. And it will be essential to private-equity buyers, who will need to extract more cash to help reduce new debt used to purchase the company.
But the buyers have viewed Knight Ridder's projections as overly optimistic, according to two people familiar with the matter. And they are treading cautiously as they do their own analysis -- which is pushing back the resolution of the auction to late February or early March, these people said yesterday.
Many of these newspapers have already been through a series of cuts. The WSJ said Henry J. Holcomb, president of the Newspaper Guild of Greater Philadelphia, said the Philadelphia Inquirer could not sustain anymore job cuts.
Posted on January 27, 2006
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Napster Cuts 10 Jobs
The Silicon Valley/San Jose Business Journal reports that Napster, a digital music retailer, has cut 10 middle manager positions -- 7% of the total workforce.
The digital music subscription company announced specifics of the staff cut after the Hollywood Reporter quoted unnamed sources saying it had axed 10 percent of its workers.
Napster said the cuts were made to consolidate its online music subscription service and music sales effort and denied it is trying to sell its business.
The job cuts come despite growth at Napster. They recently reported 500,000 subscribers, which is double the previous years number.
Posted on January 25, 2006
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Hollinger to Cut 300 Jobs from Sun-Time News Group
Reuters reports that Hollinger International Inc. is reorganizing the Sun-Times News Group, which includes newspapers like the Chicago Sun-Times and Pioneer Press. The reorganization will results in 300 lost jobs -- about 10% of the workforce.
Hollinger said it expects the Sun-Times News Group's 2005 segment operating income before items to be down 15 percent from $92 million in 2004 due to industrywide factors as well as the lingering effects of the company's circulation overstatement.
Hollinger expects the staff cuts to be largely voluntary and plans to eliminate or restructure unprofitable advertising and circulation arrangements. The group includes the Chicago Sun-Times, Pioneer Press, Daily Southtown and Star, Naperville Sun, Post Tribune of Northwest Indiana, and other suburban newspapers.
Specific job numbers for individual newspapers were not given.
Posted on January 24, 2006
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IHT: U.S. Weeklies Trim Foreign Presence
The International Herald Tribune has an article looking at cutbacks in international coverage and recent staff reductions at U.S. weeklies like Businessweek, Time and Newsweek.
Editors at Newsweek, Time and BusinessWeek emphasize their commitment to international coverage. Yet within the last month, staff reductions at Time and Newsweek and the outright closure of BusinessWeek's international print edition will almost certainly reduce the amount of news and analysis of global affairs.
The wave of "cutbacks at these major U.S. news weeklies overseas is a significant event," said Doug Arthur, a publishing industry analyst in New York with Morgan Stanley. "You cannot help but see this as a major retreat."
The article says the cutbacks are due (as always) because of the weak advertising economy that seems to be going on its fifth year.
A soft advertising market and the efficiency of distribution via the Internet are the causes. Although the magazines are all profitable, U.S.-based advertising revenue for 2005 through November at Time was down 16 percent, at Newsweek off 13 percent and at Business Week down 11 percent, Arthur said, after three years that were already weak.
The news magazines are trying to maintain foreign coverage but obviously it is difficult to maintain the same amount of editorial when you are losing staff. What is confusing is why foreign coverage is decreasing at a time when globalization is occuring -- one would expect the opposite to occur.
Posted on January 23, 2006
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Buyouts at the Cincinnati Post
Editor & Publisher reports that employees at the Cincinnati Post are concerned about buyouts. The paper just announced a new five-person buyout which increase the total number of buyouts the paper has made to 20 since last September -- a 25% reduction in staff jobs.
But to staffers at The Cincinnati Post, last week's five-person proposed buyout is sparking concern. Not just because it will reduce the 65-person newsroom by another handful, but also because it marks the second such buyout move in less than six months at the struggling daily.
"The part that sticks in our craw is that they are still making so much money," says Bob Driehaus, president of the Cincinnati Newspaper Guild and a Post reporter. "They stand to make $28 million over the next two years and to cut jobs and quality when you are making that money is infuriating."
In September, the E.W Scripps-owned paper gave buyouts to 15 staffers, decreasing the newsroom from 80 to the current 65. If another five are lost through buyouts -- or possibly more -- that would mean a 25% reduction in staff since early last fall. Staffers have until Jan. 25 to decide if they want to take a buyout.
Newspaper buyouts and layoffs were an increasing trend towards the end of 2005 and the pace doesn't seem to letting up in 2006.
Posted on January 19, 2006
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Harcourt Assessment Lays Off 70
Harcourt Assessment, a developer of educational testing products and publications, has laid off 70 people according to a MySA.com news story -- about 5% of the workforce.
The layoffs affect 70 people at the company?s San Antonio headquarters and are effective immediately, spokesman Mark Slitt said.
The layoffs come after the loss of state contracts in Connecticut, Virginia and Oklahoma and will mainly impact employees working on those contracts, he said.
Posted on January 18, 2006
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Erie Times-News To Cut 24 Jobs
The Associated Press reports that the Erie Times-News is cutting 24 jobs.
"Ours is a maturing industry in a region that has not enjoyed economic growth," publisher Jim Dible said Monday. "This is as much about reshaping our company for the future as it is about 2006."
Wednesday will be the last day the paper publishes sections covering eastern, southern and western Erie County. A Friday section covering Crawford County will continue.
Nine employees will be laid off. The moves are part of a larger effort to cut payroll by about 8.5 five percent this year, Dible said.
The newspaper plans to lay off another 11 workers next month and leave four positions unfilled, giving the paper about 250 employees.
On the upside the company said they will be putting more money towards the GoErie.com website.
Posted on January 17, 2006
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Charlotte Observer to Trim Pages But Not Staff
The Charlotte Observer is cutting the volume of pages it publishes by about 4% according to an article in the Winston-Salem Journal.
The paper will cut its current average of about 500 pages a week by about 20 pages by condensing several sections in the Sunday and Monday papers. The Observer's newsroom employs about 260 reporters, editors, photographers and others.
"It's the people who produce those pages that make The Charlotte Observer, not the number of pages," editor Rick Thames said Monday. "There's no shortage of important work for these people to do."
The Observer decided to trim space in the newspaper's Sunday edition because it is the week's largest and on Monday because is the most hurried day for most readers. The changes begin next week, Thames said.
The decrease in printed pages is due in part to an expected increase in printing costs according to the news story.
Posted on January 16, 2006
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Album Sales Hit 9 Year Low in 2005
News.com reports that data from Nielsen SoundScan found that album sales in 2005 plunged 7.2. 618.9 million albums were sold in 2005 -- the lowest number since 1996.
Tracking firm Nielsen SoundScan, which measures point-of-sale purchases across the United States, said Wednesday that total album sales -- including current and catalog titles -- fell 7.2 percent from 2004 to 618.9 million units, the lowest since 1996, when they were 616.6 million.
After enjoying an "up" year in 2004, prompting predictions that the worst was over, sales flagged during 2005, hurt by competition from illegal downloads, rival forms of entertainment such as video games, and a lack of breakout musical acts.
Indeed the top album was from veteran pop singer Mariah Carey, who sold almost 5 million units of her comeback release, "The Emancipation of Mimi." By contrast, the top album of 2004, R&B singer Usher's "Confessions," sold almost 8 million copies that year.
On the positive side overall sales soared once digital downloads were included:
Nielsen SoundScan said overall music sales, which include albums, singles, music videos and digital tracks, jumped 22.7 percent to just over a billion units in 2005. The rise was fueled by a 194 percent increase in digital downloads.
It appears that it is just album sales that are slumping and not overall interest in music.
Posted on January 13, 2006
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Primedia Folds Wireless Review Into Telephony
BtoBOnline.com reports that Primedia has shuttered the standalone edition of Wireless Review. It will now be a biweekly insert inside Telephony.
The change bumps up Telephony's circulation to more than 71,000 from 62,000, said Mark Hickey, publisher of Telephony. The Wireless Review staff was let go more than two years ago and the magazine has since been written and edited by the Telephony staff.
Posted on January 11, 2006
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Chicago Sun-Times Stops Publishing Final Markets Edition
Crain's Chicago Business reports that the Chicago Sun-Times is ceasing publication of its afternoon Final Markets edition.
The Chicago Sun-Times reported Tuesday that it will cease publication of Final Markets, a 12-page afternoon edition containing stock tables and some articles sold wrapped around the morning paper.
"In the electronic age, the availability of stock tables is no longer the compelling draw it once was," Sun-Times Editor John Barron told the newspaper.
Tom Frisbie, a news editor in charge of Final Markets, said the edition would stop running Friday, Dec. 30. A mid-afternoon edition called Late Markets has already ceased publication, he said.
It is difficult, if not impossible, for newspaper stock tables to compete with online stock quote services like Yahoo Finance and CNN Money. However, electronic paper could change all that and put automatically updating stock charts in digital versions of newspapers.
Posted on January 9, 2006
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The Red Streak Ends
In 2002 both the Chicago Tribune and Chicago Sun-Times launched newspapers tageting the youth market. Today, the Red Streak published by the Sun-Times is finished while the Tribune's RedEye continues as a free paper. An Editor & Publisher story about the Red Streak's demise says other youth newspapers are also doing well.
It was a new-fashioned newspaper skirmish, in one of the few U.S. cities where two daily papers still compete head-to-head. In the end, the Chicago Tribune's RedEye outlasted the Chicago Sun-Times' Red Streak in the quest for young adult readers.
However, despite Red Streak's Dec. 22 demise, the fledgling batch of U.S. newspapers aimed mostly at readers in their 20s and 30s is alive and growing. Similar publications targeting young urban professionals and commuters with short, edgy stories are starting to proliferate, and industry experts and media executives see some encouraging early results - mostly when the papers are free.
"Even if they fail to do what newspapers had originally intended, which is to develop newspaper reading habits, it looks as though some of these are starting to prosper in their own right," said John Morton, an independent newspaper industry analyst in Silver Spring, Md. "So I don't think you'll see people start shutting them down unless they come under financial strain."
So what happened to the Red Streak? It was only being used a ploy to upset the Tribune's plans according to the Sun-Times editor in chief John Barron in an article from cbs2chicago.com.
"The Tribune was going after our demographics, and we weren't going to let them do that without a fight," Barron said. "The plot line for Red Streak from the start was to confuse the marketplace and not allow the Tribune to set up a successful paid-circulation tabloid."
When the Tribune dropped its 25-cent charge for RedEye on Oct. 3 and began offering it free, the Sun-Times viewed it as validation of the strategy, Barron said.
"I hate to say mission accomplished ... but mission accomplished," Barron said. It took a few months to unwind the publication and close out its advertising commitments, he said.
The newspaper business sounds like quite the battle.
Posted on January 6, 2006
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Christian Herald to Cease Publication
The Christian Herald newspaper will cease publication this month due to declining advertising revenues.
In recent times, it has become more and more difficult for Christian newspapers to remain financially viable. And Christian Herald has been no exception. The factors involved include increasing costs, the changing nature of the news trade, the explosion of information available through digital media, and the decline in reading across the UK Christian community.
The pace of change both in the world, and in the Church has accelerated in recent decades, and we sense that a new kind of publication is needed to communicate widely among God?s people ? and to tell the stories of hope that will fire a new generation to help change the world. And now's the time to make that transition, bringing with it the end of an era for Christian Herald.
However, the organization is launching a free monthly magazine called Inspire. Inspire will start with a circulation of 50,000.
Posted on January 5, 2006
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Music Publisher Pursue Lyric Aggregators
TopTechNews.com reports that music publishers are sending
cease-and-desist letters to website like lyrics.com and lyricsfree.com that aggregate thousands of music lyrics.
While purveyors of lyrics online, such as lyricfreaks.com and lyricsfree.com, might altruistically think they are performing a much-needed service, in reality without any formal agreement with the entity that owns the rights to the lyrics, they are as guilty of copyright infringement as a site offering pirated music.
Many site owners were unaware that they were in violation of copyright laws until they received cease-and-desist letters from the publishing division of Warner Music last week.
According to Keiser, owners of fan sites featuring lyrics need not worry about finding themselves on the business end of a cease-and-desist letter. The MPA is taking action on the large lyric disseminators. The whole business model of those sites, Kieser said, "is based on exploiting copyrighted material that they do not have the rights to."
Music publishers claim that until the Internet, Xerox machines were the greatest threat to a songwriter's income. However, the existence of thousands of sites providing lyrics, sheet music, and tabs without paying royalties on them have greatly impinged on the songwriter's earnings.
TopTechNews.com says the music publishers are very serious and plan to pursue the matter in January. They even threatened jail time in a BBC interview according to TopTechNews.com. Many people use the free lyrics sites now and then to check the words to a favorite song. One questions is that if the publishers do force down the lyrics databases will the music publishers launch a database of their own or will they just leave fans lyricless?
Posted on January 4, 2006
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Computer Trade Shopper Ceases Publication
Hexus.net reports that Computer Trade Shopper, a UK IT publication, is closing its doors.
This is a year in which we've seen more than one print magazine run into trouble, with the enthusiast oriented GigaHz magazine suspending its operations in July. The words of Computer Trade Shopper's editor suggest that advertisers are spending less on getting ads into print publications these days, perhaps looking towards the Internet as their new killer marketing tool?
Is the day of the print magazine numbered, or are we simply experiencing the result of a saturated market?
CTS ended with the December issue.
Posted on January 3, 2006
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