Newspapers: There are some new Sheriffs in town
by Al Getler
News about newspapers has outpaced news about the Kardashians this week.
Even though we can’t wait to see more news about Kim’s new bundle of joy, we are forced to shift our sights to a much older and wiser member of society; newspapers.
What in the name of corn in the cob is going on, you might ask. Why are newspapers the new hot commodity? Why are well-known business people lining up to ride the bucking bronco of the newspaper economy?
In case you haven’t heard, Amazon.com founder, president and CEO, Jeff Bezos bought The Washington Post for $250 million dollars on Monday, August 5, 2013. That is on heels of Red Sox owner and financial whiz, John Henry, buying The Boston Globe for $70 million.
It is no coincidence that both these guys are smart businessmen. Further, it is no coincidence that both these guys have put a lot on the line to see their businesses succeed. Both Bezos and Henry have shirked logic and have come up strong. Bezos kept pushing his online model despite criticism and Henry bought a team with a mere 86 year World Series dry spell. Both guys have ended up with their coin on heads.
My assumption is that each of these guys will become engaged with reinventing the traditional newspaper model. That is a very good thing.
Jeff Bezos knows how to create models that are web relevant. He has been called the great interrupter as his Amazon.com model has upset the traditional consumer retail experience. The Amazon Kindle has upended the entire book selling and consumption process (RIP Borders). The Washington Post reports Bezos believes in journalism and that the reason the newspaper was sold was to be sure journalism remains at the forefront.
John Henry is not the technical whiz that Jeff Bezos is, but he knows how to give consumers what they want. He proved that in 2004 and 2007 when he delivered the World Series trophy to Boston. In return, Boston has made the Red Sox a very profitable franchise. Henry also knows numbers and has run his team using real numbers to get real results. He knows that to deliver a winning team, you need a product. This will hopefully reflect in the pages of his newspaper, The Boston Globe.
A tip of the hat to these two modern trailblazers. They do not ride alone. They are saddling up and riding alongside a third horseman, Warren Buffett. Berkshire Hathaway is actively buying newspapers. Last week they bought one of my old shops, The Press of Atlantic City.
Journalism may have a chance in the hands of these new players in the newspaper business. They are not steeped in old newspaper ways and will surely be ready to try something new. And that is what the newspaper industry needs.
Al Getler has been publisher over daily and weekly newspapers in his 30 year career. At his last newspaper, he completely overhauled the approach to reporting the news to address the digital trend with his extremely talented team. He is also a popular motivational speaker who specializes in leadership issues. This article and image are cross-posted from his website.