Our guest on today's episode of "Newspaper Guys Whine About Money" is Benjamin J. Marrison, editor of the Columbus Dispatch, who wants you to know that "High-quality journalism isn't 'free.'"
The last guest, Tim Rutten of the Los Angeles Times, wanted Congress to allow newspapers to form a cartel to set prices for online content. Marrison takes a different tack, arguing that "you get what you pay for," and therefore you must pay for online news from newspapers, not because it's worth anything, but because it's expensive to produce.
Once again borrowing, which is to say stealing, a format from Fire Joe Morgan, and once again encouraging you to go read the piece so you can catch me in any out-of-context or cherry-picked quoting, I give you Mr. Marrison:
Journalists can be their own worst enemies.
Except when we're our readers' worst enemies, which I have a feeling you're about to make the case for being.
We seek to be transparent, ethical and aboveboard, so we go out of our way to point out our flaws. (What other industry points out its own errors daily?)
Baseball? Points 'em out in real time. Or, to be a little serious, the NFL routinely issues a statement on a Monday saying a game official had made an error on Sunday. I think the science biz is pretty good at policing itself too. Let's not hurt our arms patting ourselves on the back, we journalists. Doctors aren't free.
In holding ourselves to a high standard, we sometimes flog ourselves unnecessarily and incessantly.
Something's piling pretty high all right, but I wouldn't have said it was the standard. I think I might plant flowers. But OK, let's skip a bit. Marrison is making the point that newspapers are dwelling too heavily on their own demise, when in fact only a handful of papers have folded and readership remains strong, though the economic slump and structural changes in the economic model have hurt them.
When word came that Advance Publications would close its paper in Ann Arbor, Mich., to experiment with an all-digital newspaper, we perceived a good opportunity to see the effects on the city, home to the University of Michigan. Joe Hallett's story about Ann Arbor appears to the left of this column.
I'm reading online. To the left of this column is a pack of gum, a stapler and a little race car my kid made out of popsicle sticks and noodles. You might have provided a link to Hallett's story, this being the Internet and all.
But this is just a story from the newspaper that you shoveled online, isn't it? And I'm supposed to pay for it? I don't pay to pick a newspaper section out of the recycling bin at the train station.
Hallett's story is here, folks.
You owe me a nickel, Marrison.
It may be too early to discern the full impact, but residents already have strong opinions about the loss: They feel disconnected.
Number of people in Ann Arbor, according to Hallett: 114,000. Number of people Hallett quotes saying they miss the newspaper: 5. Number of people Hallett quotes who say they feel disconnected, none of whom use that word: 3.
Kenneth A. Paulson, former editor of USA Today and chief executive officer of the Newseum, a museum dedicated to the First Amendment, [says] "Daily newspapers do more than report events in the neighborhood. They're voices for progress and a unifying element in an increasingly diverse society."
As a voice for progress, it's every newspaper's duty to stand in the way of technical innovation and the development of new business models that would foster a greater diversity of voices in an increasingly diverse society.
[This is still Paulson talking] "A good newspaper has always been a constructive nag for progress, and that cannot be replaced by any number of tweets or Facebook postings."
Why not? I'm really asking: Why not?
What frustrates newspaper people is that some readers expect to get news free. Certainly, some news is available free. But you get what you pay for.
I'm tired of explaining this to newspaper people: We pay for online news. We pay to connect to the Internet. If you're not getting any of that dough, that's between you and the Internet service providers. It's not our fault you haven't made the right deals. We're pulling our weight out here. We are not freeloaders.
But forget that, which you newspaper people always do and you probably already have.
Last month the Dispatch ran an obituary of Walter Cronkite, taken off the McClatchy wire. Right in the lede, Cronkite was referred to as having earned the title "most trusted man in America," a phrase that was likely repeated in every single Cronkite obit and remembrance.
It was free to watch Walter Cronkite.
Last week the Dispatch ran an obit of Don Hewitt, taken off the Associated Press wire. Hewitt was hailed as a giant of broadcast journalism.
It was and remains free to watch Hewitt's creation, "60 Minutes." But you get what you pay for, so those birds must not have been worth anything. And don't get me started on that bum Edward R. Murrow!
And, just an aside, Marrison, but do you really expect me to pay for the Dispatch online so I can read the same wire stories I can read hundreds of other places?
Good journalism takes time and money. Having people work all hours to cover, edit and package the news is expensive. Basing reporters throughout central Ohio and in Washington costs money. So does covering sporting events across North America. And employing world-class photographers and artists comes with a price, as well.
Holy smoke, dude. You need to come up with a business model!
If advertisers can't or won't pay for it, readers must -- in print and, eventually, online.
OK, good first try. But that's not a business model. That's a whine. Or maybe it's a demand. Do you have hostages?
As Paulson says: "How comfortable would you be going to a doctor who didn't charge you a fee?
First, I'd be very comfortable. Very, very comfortable. Not just comfortable. Ecstatic. In fact, now that you mention it, can you please make this happen? It happens in some of the civilized countries I've heard about.
Second, just as one example among many, there's an organization called Médecins Sans Frontières, or Doctors Without Borders, that provides free medical care to hundreds of thousands of people in dozens of countries. I think the people receiving that care are very, very comfortable with the idea that they won't be getting a bill for it.
[More Paulson] "How willing are you to entrust your finances to an accountant who's going to do your taxes for free?"
And so on. Listen: "You get what you pay for" is not economics. It's debatably wise consumer advice. You can pay a few hundred bucks for a laptop or you can buy one for $20,000. Think you'll get what you pay for?
We pay the doctor and the accountant because they have skills that are scarce and valuable, something that cannot be said about the content of almost all newspapers and news Web sites. This is not even high school economics. Stop being willfully stupid about this point, newspaper guys.
Thanks for supporting The Dispatch. We will continue to strive to make the newspaper worth your time and money.
I read this online, but you're welcome. I got what I paid for.

Salon.com
Comments
We've had this conversation before, that it will all be about monetary value or better perceived monetary value of the content. I don't put much monetary value in knowing the murder count in Philly but on the other hand I might consider putting a quarter in the slot for some financial advice or even sports news (actually I already do, on my iPhone I have the MLB app ($9.99) and Sportacular (.99¢). I also have the NYTimes app (free), which I will open and read articles from when waiting in the doctor's office or at a restaurant but since I am hit with advertising on that one I see no reason for me to be involved in an additional transaction (i.e. paying for the news). I also have the NPR app, which isn't as well put together as the NYT one but is my backup should the NYT go behind a pay wall.
But setting that aside for the moment, I have to say, in our current economic system, someone always pays. You don't necessarily get what you pay for -- good catch on that one, King -- but you do get what someone pays for. Free doctors aren't free, they're paid through taxes or insurance or donations. (Doctors Without Borders don't get paid, but someone pays for equipment and so on. Some of it may be paid by the doctors themselves, which is wonderfully selfless of them, really. Nothing but respect for those people.)
The bottom line on news is someone has to pay for it somehow. Walter Cronkite wasn't free, either; we paid for him through increased prices on advertised products. How much of the purchase price of every bottle of Coke goes towards advertising? (I know, I pick on Coca-Cola a lot. I drink a lot of it.)
In Britain they chose a TV model based on taxes; here we chose one based on advertising. Libertarians might get up in arms about the former but both, eventually, charge the same people. Just in different ways.
What I find peculiar about this moment in American history -- again, as you astutely point out, King -- is that we are, in fact, paying directly for our media in a way we never have -- monthly fees for Internet access, cable or satellite TV, and sometimes for radio -- and yet we're still sitting through advertising. Remember that TV first started using advertising because it was thought that no one would pay for TV. Apparently this eventually turned out to be wrong, because now almost all of us are paying (quite a lot) for our 57 channels and nothing on. But did the ads go away? Somehow, no.
The bottom line, though, is that someone always pays. The question is not, shall we pay for this? The question is, how shall we pay for this? I think the United States is in the midst of flailing about attempting to answer this question. The final outcome will most likely be a mess and a compromise, but that's okay, because it won't last, either.
I, for one, just hope my local newspaper decides to start charging. I have the domain name and CMS system ready to go. Just give me that opening, please.
You are absolutely right that they need a new business plan, because their business plans of the last 15 years have brought them to the brink of irrelevancy.
But this quote really takes the cake:
Good journalism takes time and money. Having people work all hours to cover, edit and package the news is expensive. Basing reporters throughout central Ohio and in Washington costs money. So does covering sporting events across North America. And employing world-class photographers and artists comes with a price, as well.
Hate to say this (actually, I really don't) but stomping your feet and yelling that it takes money to make this product, so you should definitely buy it hasn't worked for anyone else, so why should it work for newspapers? It costs money to make any product, but people are only going to buy it if they want it or need it, not because someone has some overblown sense of entitlement.
1. Newspapers lost a whole lot of credibility when they not only failed to investigate but actually went along with claims of WMD in Iraq. And this was only one among many examples of such gross negligence and complicity. Who knows what other story lines would have emerged from history had there been an active blogosphere to counter what has become the standard telling of, for example, the "good war," WW II. For all we know there was a whole lot more mischief than meets the eye.
2. I always think it's interesting when newspapers justify their feelings of superiority and demand for revenue by pointing out the cost of far-flung reporters. Usually they throw out the admittedly distant and difficult Iraq or Afghanistan rather than "central Ohio and Washington," but whatev. What's left out is their willful disregard for the bloggers who live in those places and can report--however amateurish--what's actually going on there. The campaign mob in Strongsville, OH (my hometown), where Palin fanatics were attacking Obama, is a perfect example. Where were the newspapers that day? It's just silly to suggest that we would live in a black hole of news from around the world if it weren't for newspapers. While I appreciate the skills of an honest and objective reporter, I think blogs, in the aggregate, produce more primary-source news than newspapers ever could.
Those kind of cuts are necessary to support outdated, bloated corporate structures and business models struggling with fixed costs with which online enterprises don't have to contend. When I see significant changes made in how newspaper corporations are structured and operate, and until I see some reality settle in as to corporate compensation, I can't feel sorry for those in the industry who are struggling.
But I understand the angst and whining all too well. Life, as newspapers knew and loved it, is over. Change is difficult, and I'd like to see the kind of change in the future that will reward hard-working journalists for their skills.
But I find that I completely agree with what you have written.
The problem is, very few companies are turning out their own content anymore due to layoffs.
Sadly, the newspaper industry has been about profit above all for such a long time that the bones of good journalism have disintigrated. When the handful of media corporations blew in and bought up all the family-owned papers, things started to go to hell. And that was 30 years ago.
It seems there is no one left who knows how to do the real work anymore.
India is experiencing a newspaper explosion, thanks to Indians having more access to education (higher literacy) and more disposable income. In fact, India and China are the two markets my former (technology for newspapers) company was most focused on getting into. I would say those two countries' newspaper industries currently are comparable to the U.S. in the first half of the last century.
As for two guys running a paper in India, I will defer to you on that as you are more of an expert on India than I will ever be. However, the one of the last deals my former company made was for a single Indian newspaper and included 1,000 users. 1,000 users is a HUGE number for a newspaper and almost unheard of in the West these days.
This is why I must respond to your comment, Ramesh - the landscape of Indian journalism is booming, whether on the Internet or on the printed page. And your boom is a partial result of the U.S. bust.
It is a bit unfair and disingenuous for you to point to the U.S. and call us crybabies. Especially when much of the U.S. newspaper work has already been outsourced... to countries such as India. We lost photo toners, advertising designers first. Next up seems to be copy editors and page designers. (And never mind that part of the reason Indians have higher literacy and more disposable income is due to the myriad other industries in the U.S. that have outsourced to India.)
I do agree with you that journalism must embrace new technology. But U.S. journalism has had decades of success with the old model and it's hard to change the lousy systems set up to foster that model. Indian journalism has only recently found larger success... and so a new model is easier to grab onto.
And, to be clear, I do not begrudge anybody in India the profits or results of outsourcing. I am happy for India's success. But I'm very sorry it has come at such a high cost to folks in this country.
Of course, as we've become embedded more in our town, word of mouth and the Web have mostly eliminated our need for the town paper. We pick it up when we hear one of our kids is in a photo.
Also in our town, a slightly larger local paper, covering the surrounding towns as well as ours, comes free with our residence. The paper is part of a chain of community papers produced for small areas. I have no idea how large the chain is, but I've seen at least two other newspapers made by the same company in surrounding areas.
It's a neat little paper, with a police blotter, real estate ads, photos of kids at the library, articles on the Boy Scouts and high school sports. Would I miss it if stopped coming? Would I pay for it if it weren't free? No. Mainly because the police blotter, the most interesting and important part of the paper, is largely fictional: Everyone knows of incidents which aren't reported because the local police don't want the whole neighborhood to know what serious crimes are being committed.
Given that there are actual physical newspapers getting by without customers paying, I wonder why anyone's complaining about the Web.
Strange that Marrison doesn't mention that.
Your paper sounds a lot like ours - the police blotter is a must read and it is still the best source for local sign-ups, festivals, pancake breakfasts, etc. Our paper was free until a year ago when they started charging $1 for it. They put some of the info online but save most of the meaty stuff for the paper. I imagine it may out live some of the larger area papers from Muskegon and Grand Rapids.
As much as the hundreds of bloggers out there enjoy posting for free,and readers enjoy reading their articles without having to pay for a subscription, it is becoming more and more difficult for free-lance journalists and writers to make a decent living. We're left with revenue share, or google adsense instead of a monthly paycheck.
Does anyone really care if the writing is that great, or the content original, or even if the research is accurate? We do get what we pay for, but remember who it is that is on the other side of the keyboard putting the words into cyberspace without any compensation because the reading public wants their news for free.
We used to get good journalism. However, it's been so long I'm not sure many people remember it. It's because the news staffs at newspapers and broadcasters have been cut along with the bureaus around the globe. There are also fewer news sources as local papers have been bought up and news services consolidated.
We used to get real journalism and analysis--not people shouting at each other. Trained, ethical journalists that got the facts right and all the news that was fit to publish or broadcast. But it has changed.
A friend doing research for a book involving the early 1960's pointed out to me how he found how much Newsweek has changed. Newsweek is now usually under 50 pages, a little more than 20 pages devoted to advertising, and half the content entertainment related. In the 1960's, it was usually over 100 pages long, but with about the same 20 some pages devoted to advertising and the content was real content with only a few pages devoted to entertainment. People read and heard the newsmakers, the scientists, the public figures in depth--not in soundbites, or should I say Tweets.
What happened?
The problem is multi-faceted, but the primary reason is the media has been consolidating for years, and in the last ten in particular through FCC rulemaking, and the acts and inaction of Congress.
The “high cost of journalism” is in the debt and the demands of Wall Street, not reporters and editors.
The buyers market was initiated and fueled like every bubble by Wall Street and the use of our 401k money by corporations such as General Electric and foreign outfits like Sony and Rupert Murdoch to go on a buying binge. Last I heard, and it's been a couple of years, 80 percent of the American people get 80 percent of their news from five corporations.
In the last 20 years, and the last 10 in particular, this consolidation has driven the price of these news gathering and reporting organizations through the roof with ridiculously high prices being paid for these shallow assets. The assets are the people, the news teams they let go, because like health care, the corporation's bottom line is more important than a healthy or informed public.
Some people want to turn it over to just plain folks on the web. How low can we go?
Where are we going?
The debt encumbered by these corporate giants has to be paid and the big boys bailed out the jam they put themselves into. So, like with the Bush-Paulson-Obama bailout of Wall Street, I expect our government to continue to practice risk-free capitalism and pass legislation to give the web to the media, with the reasoning that it has had its ability to print money diminished by the Internet.
The trend has been to privatize profits and socialize corporate excesses, losses, fraud and mismanagement. You can Hope for Change, but I expect things to continue as they have been, toward the lowest common denominator.
The internet has broken down the wall between the consumer (i.e., the reader) and the producer (the writer/journalist). A journalist can now get his or her work out without dealing with news editors, copy editors, paste-up needs, printing costs, column-width limitations, and all the rest. A reader can get this same work almost immediately after it is produced. Further, there can be almost immediate feedback between the writer and the writer. We can post comments here, or email them right to King.
Newspapers recognize that they're losing money, but don't get why. Some writers--Richard Cohen, Dave Broder, and their ilk--can't handle the immediate feedback. The classic newspaper model has been kicked to flinders, but those clowns aren't going to figure out what happens next.
The people will pay for news, but not necessarily newspapers.
However, all these comments about how effective local bloggers can be misses two huge points:
1. There is no way a local blogger can coerce a local government official into releasing public information (you know, information that belongs to us, the public) the way a good reporter at the local paper can. I had enough trouble with local officials — especially school officials — when I published our local newspaper (in a town of about 5,000) ... no way an untrained blogger with 40 regular readers will get anywhere with those guys.
2. There is no way a local blogger can outlast the threat of lawsuits and such when that local official (or car dealer or whoever) get pissed off about what's that blogger published. Doesn't matter if what was published is true ... all it takes to get you in court is $300 and a mean streak.
Yes, there needs to be a new business model ... and the fact that journalism became synonymous with the business of selling newspapers is unfortunate, for it is not required that the two go together.
However, if you think bloggers can be objective watchdogs of local government — and I mean the kind of good-old-boy, my-graft-is-firmly-in-place-and-you'd-best-just-forget-you-saw-that local government that the vast majority of Americans live with — or to serve the constitutional function of a free press, you are deluding yourself.
media companies that don't figure this out will soon be ex-media companies.
And if you're upset about the bar being set a little higher these days, well, it's your own fault. You're the ones that said nothing when journalism schools starting overproducing graduates (most of them substandard at that). You're the ones that made the average reporter's salary rival the average teacher's salary, driving away most of the really talented writers (who frequently blog and make their OWN money off of advertising, so don't go crying there's no one spending money on advertising, liars).
As you've mentioned, you get what you pay for. If you pay reporters poorly, you get stories no one cares about. And then everyone knows it, because if a bad reporter was getting overpaid, holy hell, at least that' be NEWS.
Here is some advice from the film industry... Step one: find someone who does great reporting. Step two: pay them a lot of money, and make sure everyone knows it. If you can, get into a bidding war with someone else. Step Three: Give them a lot of free rein about what they report, and give them an editor who you're also paying very well and have optimally stolen from someone else. Step Four: Repeat this asset-buying process until you're the Yankees of the newspaper industry. Step Five: Profit immensely, laugh at your competitors and buy their papers when they go under. Step Six: Repeat ad infinitum. Work on your evil cackle.
That, my friend, is a business plan for making money off of a newspaper.
The other side of that is, if an intergalactic space craft landed in Capitol Square, and out of it came Jesus, carrying a perpetual energy machine, the Dispatch would not cover it. I often wonder if there is anyone in the Dispatch building.
Of course the Dispatch is not going to cover the second coming if it takes place in Columbus proper. Now if that spaceship landed in Dublin, Worthington, Upper Arlington, or any other suburb, they'd be all over it. The Dispatch reporters don't want to write about any icky city stuff or talk to any icky city folk.
At the same time, all sorts of finance issues get ignored. The town (and state) for a long time subsidized middle income housing. The formula required the recipients of the subsidy to have an income that was 80% of the median income of the metropolitan district (SMSA). The median income of the SMSA was higher than the median income for the state, so the state was using tax revenue to subsidize housing for people who made MORE than the average state resident.
I could go on and on with examples of similar issues that went unanalyzed because all the reporting was on the surface -- how great it is to do this good thing (for ex. help hard working families afford houses). Let's not look at how good this thing actually is ( it's diverting housing subsidies from people who really need them, as opposed to could have afforded a nice house in a slightly less overpriced town).
If newspapers have lost readers, there's a reason. And it's not because we aren't willing to pay for good reporting.
Marrison is also the kind of editor who still hates the Internet for 'stealing' news. I'd link to one of his columns from a few years ago that made that claim, but it's no longer listed in his archive.