A business perspective on newspapers

While the tide of doom-and-gloom, self-loathing articles about the demise of newspapers has slowed down, I thought this article by Daniel Gross in Slate, examining the industry from a business perspective, was a unique take. Here's the money line:

While newspapers have serious problems, the recent failures of several newspaper
companies shouldn't necessarily lead to visions of the apocalypse... the
failures may say more about a style of capitalism than an industry. Each company
was undone in large measure by really stupid (and in one case criminal)
activities by managers.

I think it's a bit oversimplistic to simply blame "a bunch of private equity types," although clearly capitalism and newspapers aren't a good mix right now. But while Gross thinks its a certain type of capitalism that caused the demise of newspapers, I'm inclined to believe it's more of a general, growing perception that information should be free. And I'm willing and able to admit my generation is guilty as charged.

More malas noticias (bad news) for the news industry

I used to love our family vacations to San Francisco. The sights and sounds, Chinatown, the thrill of Giants games, the glorious Golden Gate... and the Sunday Chronicle. Now, as the news industry continues its spiral to oblivion, reports are that the Chronicle is teetering on the brink:

"The Hearst Corp. today announced an effort to reverse the deepening operating losses of its San Francisco Chronicle by seeking near-term cost savings that would include "significant" cuts to both union and non-union staff.

In a posted statement, Hearst said if the savings cannot be accomplished "quickly" the company will seek a buyer, and if none comes forward, it will close the Chronicle. The Chronicle lost more than $50 million in 2008 and is on a pace to lose more than that this year, Hearst said."

Clearly, operating print newspapers on a for-profit basis is no longer viable. But what is the answer? No one knows. In my history and future of journalism class last spring, we discussed some of the possibilities, including non-profits and the Web. There is no perfect solution.

As the article suggests, the organization's Web site "depends on the Chronicle's print news staff for much its content." Cutting down somewhat and re-launching as a Web-only news outlet would be better than closing altogether, but how much journalism would that organization be able to produce? And would that even be viable?

One article I read said that San Francisco is a tough market, since the Bay Area is saturated with daily newspapers. But wouldn't you think that The Chronicle would be the last one standing? Why would anyone like me want to be starting a career in journalism again?

UPDATE: The Rocky Mountain News, which has operated in the Denver community for 150-odd years, is folding. The days of two majors newspapers in most metro areas are long gone, but troubling news for the industry nonetheless.