VCC Magazine Fall 2018

Virginia’s newspapers are bleeding staff and content By DeForrest Ballou

RICHMOND — While mid-sized newspapers throughout the country are struggling to stay in business, large companies have lined up to buy them in recent years. But trying to turn newspapers into profits has led to newsroom downsizing. Virginia’s newspapers are no exception to this trend. Rick Edmonds, media business analyst at the Poynter Institute, said people are ending their newspaper subscriptions because the papers are shrinking. For

Blue Virginia http://bluevirginia.us This blog, which dates to 2005, was founded by Lowell Feld, who has campaigned for Tim Kaine, JimWebb and other Democrats. “The purpose of Blue Virginia is to cover Virginia politics from a progressive and Democratic perspective—and to help elect Democrats,” Feld writes. “I consider myself a progressive in the tradition of Teddy Roosevelt, Franklin Roosevelt, JFK, RFK and actually a bunch of progressive Republicans (e.g., Jacob Javits, Lowell Weicker). As such, I believe in expanding opportunities to all, utilizing government as a tool to promote the general welfare and the common good, protecting the environment for ourselves and for future generations, and expanding the rights promised in our Constitution and Bill of Rights to all Americans.” Sabato’s Crystal Ball http://www.centerforpolitics.org/crystalball Since 2002, Larry Sabato and his colleagues at the University of Virginia Center for Politics have produced this blog, which they describe as “a comprehensive, nonpartisan political analysis and handicapping newsletter.” The Crystal Ball keeps tabs on presidential, congressional and gubernatorial elections, forecasting the winners and analyzing trends in American politics. The blog is proud of its track record for accurate predictions but notes that “no Crystal Ball can foresee all the twists and turns of a turbulent era in American politics. Thus, our motto remains ‘He who lives by the Crystal Ball ends up eating ground glass!’” DeForrest Ballou is a student editor at VCCQM. He joined the United States Marine Corps in the summer of 2001. Afterwards, he worked for Dominion Energy for over ten years. In 2016, Ballou left Dominion Energy to pursue a degree in Print/Online Journalism at Virginia Commonwealth University under the G.I. Bill. The '5th Estate' from page 9 V Buffett’s lack of faith in his own properties impacts the newspapers that he acquired and comes at a cost. For example, last year, BHMedia Group cut 289 newspaper jobs across the country. In April 2017 the Richmond Times-Dispatch laid off 33 employees. Berkshire Hathaway’s $65.3 billion gain in net worth in 2017, according to Berkshire Hathaway’s latest shareholder’s letter--did not keep the country’s news providers off the chopping block. In February, BH Media Group cut 148 more jobs. Earlier this year, the Richmond Times-Dispatch let 18 employees go. Then, during the summer, BH Media Group handed over control of day-to-day operations to Iowa based Lee Enterprises, which Edmonds stated is a very good ad sales company. Early in September, Lee quietly laid off eight more Times- Dispatch members. Edmonds said newspapers have to become creative and find sponsorships to survive. Holding events and sending out newsletters have helped papers raise revenue, for example. Digital marketing services that assist with website design and email marketing have been a source of income as well. “The trick of it is to do a number of those different things,” Edmonds said, “because not one of them is going to make up especially for the print advertising losses.”

some, a newspaper that took 30 minutes to read now only takes 10. “A great many of the newspapers left are still doing very good work. But, perhaps not as much of it,” Edmonds said. The problems newspapers face vary and can change yearly. Newspapers need to increase digital advertising and digital subscriptions while developing other revenue streams, Edmonds said. Small-town newspapers are losing the battle in Virginia. In recent months, the Hopewell News, Hanover Herald Progress, the Caroline Progress, Clinch Valley Times and the Tazewell County Free Press have all closed their doors. Some papers that turn a profit are bought by large companies. In the commonwealth, BH Media Group, part of Berkshire Hathaway, owns nine papers in the state and reaches the most Virginians with a circulation of more than 300,000 on a weekly basis and more than 400,000 on Sundays, according to the Alliance for Audited Media circulation averages from 2012. They include: The Richmond Times-Dispatch, The Free Lance- Star, The News & Advance, The Daily Progress, Danville Register & Bee, Bristol Herald Courier, The Roanoke Times, Culpeper Star- Exponent and the Martinsville Bulletin. Berkshire Hathaway is a holding company headed by Warren Buffett, the chairman and CEO worth over $90 billion. In the past, Buffett has touted himself as a fan of small-town newspapers in his annual shareholders letter, in 2013 BH Media Group owns more than 30 U.S. newspapers around the country; the largest is The Omaha World Herald. Starting in late 2011, Buffett’s company spent $350 million during a 15-month period buying newspapers all over the country. In 2012, Berkshire Hathaway acquired Media General’s newspaper division, acquiring papers in the state like the Richmond Times- Dispatch and later The Free Lance-Star. In the acquisition, Buffett provided a high-interest loan to Media General and received a generous portion of their stock. “He kind of collected three times over. He got all the papers and he got paid off on this loan,” Edmonds said. These types of purchases can be advantageous for the newspapers as well. “If you have a lot of newspapers you can have some centralized business functions,” Edmonds said. Newspapers under large companies don’t need a human resources department at every location, for example. Some positions are often consolidated, like newspaper design and sports sections. Also, advertisers may feel inclined to look for companies that can reach a national audience—a task that is easier when a company oversees several newspapers. However, print advertising and circulations are not where Buffett thought they would be. Edmonds said that in Berkshire Hathaway’s latest annual meeting, earlier this year, Buffett was discouraged with the state of his newspapers in the country.

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