Friday, May 21, 2010

CUT THROAT COMPETITION AT THE ERIE TIMES-NEWS

The following blog appeared in the current issue of FolioMagazine, which covers the national magazine trade. It was written by Executive Editor Matt Kinsman

Cutthroat Competition: Breaking into a Monopoly
Two regional titles show just how vicious local publishing can be.

By Matt Kinsman
05/20/2010


Every highly competitive magazine market is used to trash talk, undercut rates and the occasional sneaky gambit from rivals (remember the Pub Exec publisher trying to get the lowdown on FOLIO: newsletters by pretending to be a prospective advertiser?)

In the city and regional category, where barriers to entry are fairly low yet the clash for the limited dollars of local advertisers can be a life and death struggle week in and week out, competition can get especially cutthroat, particularly when a newcomer enters a highly concentrated market.

In 2008, Rena Tran founded Erie Life Magazine, located an hour and a half from Pittsburgh, Cleveland and Buffalo. Today, the magazine (which has changed its name to Great Lakes Life) generates between $500,000 and $1 million in ad revenue and is sold on more than 600 newsstands in three states and Canada.

Erie Life/Great Lakes Life faced many of the typical startup challenges (particularly as it launched just as the bottom was falling out of the magazine market). But it also ran up against what some observers have called a near-media monopoly in the local newspaper, Erie-Times News. (In 2006, a media watchdog group called The Media and Democracy Coalition protested the FCC considering loosening limits on media ownership, citing the Erie-Times News as one example of a potential problem.)

Erie Life's first marketing efforts included a billboard teaser campaign that said, "Erie Life Magazine. Now There's a Choice." Shortly after Erie Life announced it's impending launch, Erie-Times News announced it was launching its own magazine, Lake Erie Lifestyle.

During Erie Life's first year, former Erie-Times News publisher Jim Dible took over the Erie Chamber of Commerce (Erie Life subsequently quit the Chamber, and in a follow-up meeting, Erie Life vice president and partner Paul Loncharic says that Dible told him that the Erie-Times News saw Erie Life as its "greatest enemy.")

Loncharic says Erie Life ran up against a number of "exclusive partnerships" with Erie-Times News and local media outlets such as the local public television and radio station. Erie-Times News executives also sat on the boards of large hospitals, universities, and arts organizations, such as the Philharmonic, according to Loncharic.

"Some advertising agencies in Erie were even worse," says Loncharic. "They wouldn't risk their relationship with the Times. One agency had told us that if they placed with us they could lose their discounts for their classifieds."

Loncharic claims the Times resorted to huge rate discounts ($700 for a full page versus Erie Life's $2,500 yield for a full page), as well as old tricks such as hiding copies of Erie Life on the newsstand. Even Erie Life's ability to attract writing talent was threatened, according to Loncharic. "We lost freelancers because of intimidation," he says. "It was tough."

Once, the magazine sought expansion money from the local Economic Development Corporation. "They kept begging us to see our financial statements but wouldn't tell us what government loans or grants we were qualified for," says Loncharic. "Months later I was sitting in a meeting with a local businessman who out of the blue asked me, ‘So I heard the Economic Development Corporation wanted to see your books.' I said, ‘How did you know that?' and he said ‘Because the publisher of the Erie-Times News sits on one of their boards and was dying to know what your books looked like. I confronted the EDC about it later and they claimed she wasn't on that board and they are a pillar of confidentiality."

As of this posting, Erie-Times News hadn't returned repeated requests for comment. However, Joe LaRocca, a journalist and author of the blog Erie CounterNewsMedia (whose mission is to "countercheck the Erie news media for inaccuracy, errors of commission or omission, bias, incompetence, arrogance, chutzpah, excessive hubris, and other sins against ethical and professional journalism") says Erie Life's claims don't surprise him.

"Coincidentally, the inaugural edition of a new magazine put out by Marnie Mead Oberle, an heir of the Mead family which owns the Times Publishing Co., made its first appearance in last Sunday's edition of the Times-News," says LaRocca. "It deals with roughly the same subject matter as Erie Life, except that it has more the feel of an advertising supplement. Undoubtedly the Times is trying to force out Erie Life so that its magazine, which currently has the free circulation advantage of the 77,000 Sunday paper's circulation, may take over the field unchallenged. The Times' failure to respond is typical. As a newspaper monopoly, they answer to no one."



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Tuesday, May 11, 2010

Pat Howard, the dissimulator

I'm reprinting the following post from last September to highlight the Erie Times-News's continuing failure to reinstate online reader's comments appended to news and editorial content appearing in both the online and hard copy editions, exposing Managing Editor Pat Howard's penchant for dissimulating. It's pretty clear, for the reasons I advanced below last year,that the Times-News has no intention of restoring public comment to its online edition, unlike most other intellectually honest newspapers which do. Among other things, the Times-News's glaring omission gives the lie to its frequent and pious but phony editorial assertions championing freedom of speech.

SEPTEMBER 1, 2009

ADDENDUM: This morning, after this blog was posted, I received a response to my query addressed to Managing Editor Pat Howard as to when the Erie Times-News plans to resume online readers' comments. It came from Jeffrey Hileman/Managing Editor/New Media. He replied: "Mr. LaRocca – Pat Howard asked me to respond to your questions. GoErie.com plans to reintroduce reader comments as part of its redesign, though we do not yet have a start date." ____________________________________________________

Until last Spring (2009), the Erie Times-News followed the relatively new practice adopted by most newspapers here and abroad in recent years of enabling readers of their online editions to comment freely on articles and other ediorial content, in writing, by appending a comment box at the bottom of each article.

Then, without warning, The Times-News dropped the highly popular feature, a move which was explained by Managing Editor Pat Howard as a temporary one while the Times-News’s website – know as GoErie.com – was being reprogrammed or redesigned.

Howard promised readers the feature would be resumed soon thereafter. As all regular readers of GoErie.com know, to date it has not been resumed. And since neither Howard nor any Times-News person has revealed in the prolonged interim why it has been discontinued, or whether it will ever be resumed, readers remain gagged and in the dark.

I e-mailed Howard yesterday to ask him why the Times-News has discontinued online readers’ comments, whether it plans to resume them and, if so, when? Not surprisingly, I’ve not received a response from Howard. If I do, I’ll post it later on this blog. (See ADDENDUM above.)

The Times-News is not the only newspaper to discontinue online readers’ comments, but there have been only a handful nationwide.

While not within the rationale provided by Howard at the time the Times-News discontinued readers’ comments, most of the other newspapers which have done so have cited widespread abuse of the feature, primarily by anonymous bloggers who persistently engaged in ad hominem attacks which, if identifiable as to source, could be actionable, obscene language, irrelevant posts and other uncivil practices.

This is a common complaint lodged by virtually every newspaper which allows online readers’ comments. It is mitigated to some extent by some newspapers which attempt to monitor the abusive posts and delete them.
But because they receive hundreds to thousands of readers’ posts each day, depending upon the size of the newspaper, it’s virtually impossible for small newspapers with limited intellectual staff like the Times-News to monitor the comments effectively.

Big metro or national newspapers like the New York Times, USA Today, the LA Times, the Washington Post and others affluent enough to afford them have created staff positions whose exclusive province is to monitor and manage online readers’ comments, because they recognize that in this new era of the worldwide web they must follow the crowd if they are to survive in the fast-changing cyber environment.

In some but not all smaller newspapers, the vast majority of comments which are abusive make it into print. While the newspapers provide standing guidelines demanding civility for readers’ comments, they are almost universally ignored, and the newspapers are in most cases helpless to enforce them.

This leaves them with only two options: Either maintain the status quo and continue to suffer the abusive behavior – an unpleasant option at best - or discontinue the highly popular online readers’ comments altogether, and alienate their spiraling online readership. The latter is the path the Times-News has apparently chosen.

There is, however another option which would almost certainly eliminate most if not all of the abuses pertinent to online readers’ comments: disallow anonymity or psuedonymity, an option which I personally support. (See, for example, New York Times Op-Ed Columnist Maureen Dowd’s recent column on anonymous blogging, “Stung by the Perfect Sting,” Aug. 26, perhaps the only time I’ve ever agreed with her hyperbolic rants).

That aside, there’s an unspoken dynamic at play within this context which I believe is primarily responsible for the Times-News’s discontinuance of online readers’ comments, as opposed to the rationales asserted above.

An inordinate number of the anonymous ad hominem attacks and abuses were directed at the newspaper staff, its erratic news coverage, editorial stances and its ownership, the longstanding Times Publishing Co., a newspaper monopoly which over the years has swallowed up all the competition, both daily and weekly, except for the Corry Journal, throughout its northwestern PA circulation area, as well as parts of surrounding counties in New York and Ohio.

Much of the commentary, mostly anonymous, was highly critical in unflattering, indeed embarrassing terms of the Times-News’s news and editorial policies and practices and personnel, which are, with good reason, widely seen as biased, shallow, inaccurate, self-serving, unprofessional and arrogant (I concur). Moreover, its Letters to the Editor section is routinely mismanaged.

I believe the thin-skinned operatives at the Times-News chose to discontinue the feature rather than suffer sustained embarrassment at the hands of merciless bloggers, most of them anonymous.

While I do not post or blog anonymously, but always identify myself by name, I was a frequent online critic of articles published in the Times-News, as well as its overall news and editorial practices. While I am often blunt in my criticism, I pride myself on my civility. I do not presume, however, that the Times-News discontinued online readers’ comments because of my feeble and captious criticism.

The last comment I posted before online readers’ comments were discontinued occurred on April 12 of this year. In response to Howard’s regular Sunday column boasting of the Times-News’s showing at the Pennsylvania Newspaper Assn’s. awards program, I posted a detailed factual analysis showing that The Times-News’s performance was greatly exaggerated by Howard.

For one thing, the Times-News is not in the same competitive category as the Commonwealth’s major newspapers in Pittsburgh, Harrisburg and Philadelphia. And several of the newspapers in towns smaller than Erie made a much better showing. (See my April 12, 2009 archive blog at http//.www.eriecounternewsmediablogspot.com.)

It should be noted that NO privately/corporately-owned newspaper is obliged to provide a forum for online readers and commenters. However, it ill-behooves any newspaper which persistently and piously preaches on behalf of First Amendment freedoms of press and speech, as the Times-News does, to be seen as a censor of populist expressions of opinion from the vast unwashed which the internet now makes readily and universally possible.

The Times-News is already criticized widely for crass rewriting and editing of Letters to the Editor which is tantamount to, if not actual censorship.