SF Chronicle May Fold
There was big news in San Francisco yesterday afternoon. Hearst Corporation, which owns the San Francisco Chronicle (among 15 other newspapers), announced that it requires “deep” cuts at the Chronicle or it will seek a buyer, and — if a buyer cannot be found — close the Chronicle. The Chronicle has been publishing in San Francisco since 1865.
The Hearst Corp. on Tuesday 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 nonunion staff.
In a statement, Hearst said that 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.
The newspaper business certainly is hurting. As advertising revenue declines — as it is for all media — revenues will fall. The article notes that it costs the Chronicle more than two times its subscription rate to publish and distribute the newspaper. The rest, ostensibly, is to be made up by advertising revenues.
This situation — losing scads of money — is not confined to just the Chronicle. The New York Times has had financial problems, as had The Washington Post (they reported huge losses today), and most other daily newspapers in this country. It doesn’t help that many people are not buying the print edition of newspapers and are getting the same content online for free. Why pay for what you can get for nothing, especially in these economic times? I do it.
I love being able to read newspapers online. I can read papers from several cities — San Francisco (the Chronicle), Washington (the Post, the Blade), New York (the Times), Los Angeles (the Times), Jerusalem (the Post) — you get the idea. I think it helps me stay informed, reading several different news sources. I quote liberally from them in my blog; and I benefit from their reporting.
Newspapers — like them or not — provide a valuable function in society, even in the instant news culture we live in now. They are able to go more in-depth on stories than television and radio. They play a vital societal role in holding government accountable (even if they do that imperfectly).
So what do they do? Charge for website access in this web-must-be-free culture? I’d be willing to pay a small amount for access (and quoting rights) to my favorite news sources. Would you? Would you, knowing that if you don’t, we’ll lose our big daily newspapers? Does it matter to you? It does to me.
I can’t imagine what it would be like without a major daily in each city. (Sorry, SF Examiner lovers. That paper is a rag.) And that day may come very soon for San Francisco.
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