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Corporate incompetence dooms another JRC newspaper

by: devtob

Thu Feb 05, 2009 at 19:08:59 PM EST


(Ouch. - promoted by phillip anderson)

A newspaper I used to work for, The Independent, a 36-year-old twice-weekly covering Columbia and southern Rensselaer counties in upstate New York, announced today that tomorrow's edition will be its last.

About 20 people will lose their jobs, and the community will lose a fairly decent, though much diminished lately, local newspaper.

According to the paper's owner, the execrable Journal Register Co., the sudden closure was due to "the bad economy that has impacted the industry, the region and the nation."

Well, I'm sure that had something to do with it, but so did Journal Register's extraordinary cheapness and incompetence, which led to a steady devaluation of the paper in the almost eight years it's owned it.

Details, below.  

devtob :: Corporate incompetence dooms another JRC newspaper
The Independent was not perfect, but it did make a commitment to cover town, planning and school board meetings that have not seen a daily reporter in years.

So, if you wanted to know what was going on at those meetings in your town, The Independent was the only way to find out.

But its pay sucked, so often those meetings were covered by young incompetents.

I has a run-in with an Independent incompetent at a school board meeting last year, where I challenged the board's decision to fire a friend of mine in favor of a more expensive contract service.

He wrote the story to make it more like stenography from the district's lousy superintendent, and misquoted me several times, including "It's a shame" when I said "It's a sham."

That one letter does make a difference.

In my e-mail to the incompetent's boss (who had strongly defended his reporter's obvious incompetence), I was more hopeful about The Independent's future than it turned out:

It's a shame that JRC has apparently limited your ability to hire entry-level reporters with basic skills.

Hopefully, that will change after JRC goes bankrupt in a few months and sells The Independent to someone who will provide the resources to do local journalism right.

Because you-get-what-you-pay-for guys like (the incompetent) are doing local journalism wrong.

JRC is, more than many newspaper companies, leveraged to the hilt.

Under former, late, and unlamented CEO Robert Jelenic, it bought, and overpaid for, dozens of daily and weekly newspapers in "strategic clusters" like the Capital District of New York, most of Connecticut outside Hartford, southern New Jersey and suburban Philadelphia, and suburban Detroit.

JRC was the subject of a devastating profile in the American Journalism Review in 1999 that had juicy bits like this:

When JRC purchased Rhode Island's Narragansett Times and several other weeklies from Capital Cities, Publisher Frederick J. Wilson, whose family had once owned the Times, stayed only five months.

"They don't care about the product. They don't care about the customer. They don't care about the employees," Wilson says. "And they don't know anything about the business."

He has since launched two weeklies with money from local backers that directly compete with JRC papers.

For years, former JRC employees have owned the company's Yahoo message board. Some of their stories are telling, like this:

Employees are being made to wait weeks at a time for reimbursement on mileage expenses. Some independent contractors are having to wait a month or more for payment where before they were paid weekly.

What does it say about a company that expects its employees and contractors to pay the expense of running a multi-million business out of their own meagerly paid pockets and then having to wait and wait for those expenses to be paid back?

And, after Jelenic died last year, there was little reluctance to speak ill of the dead for those who had suffered under him:

Let us shed no false tears.

He was not a good guy. He was not a nice guy. He was always mean and loved to belittle people, both in public and one-on-one.

His "vision" for JRC was to destroy the newspapers and pocket all the money.

He surrounded himself with yes-men who never challenged his thievery and his anti-journalistic ideas.

When there was no money left to pocket, he walked away from the company knowing it would soon fold.

He embodied the worst of American greed and corruption and he's lucky he never went to jail.

JRC went public in 1997, at $14 a share. That year, it paid job-killing Jelenic $11 million.

JRC's stock rose for a while above $20, then slid down, down, down, to its current status as less than a pennystock (today's close was a tenth of a cent).

JRC will go bankrupt sooner than later, and closing the once quite-profitable Independent will do nothing to stop that from happening.

There will always be a readership, and advertising support, for local papers that do the meeting/blotter grunt work.

But, to really succeed, they must be locally owned.

When such papers are owned by profit-hungry corporations from faraway, they always get worse, and they sometimes close.

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It's never good news (4.00 / 1)
when a newspaper closes.

What's weird is that (4.00 / 1)
A lot of other non-daily papers are thriving in the internet age. While massive dailys are paring down their local coverage, neighborhood or town or county weeklys are filling in the gaps, and as that level of news is not often availible on the internet, they've seen competition decrease, not increase.

i'll just say this (4.00 / 1)
i used to work at a small town daily. that daily got bought by a large newspaper corp. that corp was freedom communications of orange county, ca. their flagship paper, the orange county register, was locked in decades long losing battle with the LA times. freedom bought up dozens of small dailies just like ours. all of these papers were profitable. my paper was turning a 40% profit every year. pretty much all of us were. all of that money went to california to prop up the OCR in battle they will never win. every few months, we'd lose more staff as FC tried to squeeze a few more bucks out of us.

eventually, the quality of our product began to suffer. it was mild at first, then we began to truly suck. that began to really effect the bottom line of what had been a profitable and useful publication.

the sad fact is that many of these local papers are profitable, often handsomely so. they then get gobbled up by the bigs looking to pad their own bottom line. the cut them to the bone, degrade the product and then whine when they can't squeeze 40% profit out of them anymore.

it's a ridiculous business model and i think it shouldn't surprise anyone that it kinda sucks.

 

TODAY is day one. It always is.


[ Parent ]
I can understand that small newspaper (4.00 / 1)
owners will want to cash out at some point.

But when they sell to an out-of-town media company, the quality, and profitability, of the paper will ALWAYS suffer.  


[ Parent ]
yup (4.00 / 1)
Every freakin' time.

TODAY is day one. It always is.

[ Parent ]
Successful weeklies, by and large, (4.00 / 1)
have local ownership unhampered by the massive debt and worries about making the next quarter's number that afflict most publicly traded newspaper companies.

JRC is just the worst of them, and will soon be yesterday's papers.  


[ Parent ]
My local daily newspaper... (4.00 / 1)
Is the only one of its kind in the county. I interned there. I wrote a column for them (and still contribute from time to time) and write online for them.

The problem? They are owned by Community News Holdings, Inc. CNHI owns local papers all over the country.

My newspaper has a staff of two (one editor, one reporter) to cover a county of 42,000 people. That means two people are responsible for covering ten towns, four villages and one county government, plus five school districts and courts all over the county. It is impossible. The paper has to pick and choose what it covers and that leaves many towns, a few of the villages and a few of the school districts and courts out in the cold.

Back when I was starting my internship, I got the story regarding the newspaper. That newspaper needs one more reporter. One more reporter would mean that they could expand their reach. The higher-ups shut them down. They tell them to increase their subscriptions to justify another reporter. Yet, without that other reporter, subscriptions will stay where they are (or go down, as they have been over the last two years).

I remember someone once telling me that the small-town newspapers will never die because there is a demand for them. I wish that were true. Right now, the financial outlook for a lot of these small papers doesn't look too good. That is sad, but it's a product of a poor economy and a product of too few corporations owning too many newspapers.  


CNHI doesn't suck (0.00 / 0)
as much as JRC, but they're close.

The problem is that CNHI borrowed a few million to buy the paper you worked at, and has to pay off a note that did not exist under the previous ownership.

The debt payment would surely cover the salary and benefits of at least one more reporter.

Which is why EVERY TIME a newspaper is bought, the newsroom, and local news coverage, is cut.  


[ Parent ]
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