Gannett, Gatehouse talking merger

We may be talking about the same person, but one of my best friends did that.

 

There's just no reason for an established star writer to write for a newspaper website if she/he is lucky enough to keep a job at such place. There's no reason to give that work to a newspaper, none, when all you need is a computer to produce copy for yourself. It's fitting that once it's all online some of these name writers considered trash by their newspapers will suddenly will be providing great competition for the newspaper.

 

Let's start with two facts. Each electronic subscribers generate less revenue than each print subscriber. The second is that the cost of delivery of an electronic newspaper is basically the same, no matter where it is delivered. Most newspapers can only be sold profitably within about 150 miles of the printing plant.

This means that newspapers need more three or four electronic subscribers to offset the loss of each print subscriber. But if you are a paper in Nashville the cost of delivering an electronic subscription is the same to a Nashville or Memphis subscriber.

So how do newspapers generate these additional subscribers. They merge and create a combined electronic product to try to reach sufficient mass. The Gannett Gatehouse merger is an example. The company will group their papers around a central plant. They will combine websites and start printing one paper with zoned editions.

I thinks stand alone papers are dinosaurs (see Youngstown). Papers are going to merge into central locations and their will be one or two for most states. Then these papers, with larger market areas to draw electronic subscribers from, will move on-entirely on-line.

The only local paper I know of that has really nailed the electronic market is the Boston Globe, which has around 100,000 subscribers and a non-discounted rate of about $30 a month. Boston is a market of about 5,000,000 people.

So I think, for example, that the Gannett papers in Cincinnati, Columbus and Akron will combine and New House will probably make it in Cleveland/Northeastern Ohio. I think everyone else will be gone.

But I am just retired as an accountant and an exceedingly small time investor. I don't know much.

 

I missed it if someone already posted this, but first round of layoffs expected early December, second round after Jan. 1.

 

Sadly, I don't think it matters if anyone posts it now - If you're at a Gatehouse shop, you should just assume rolling layoffs. I got cut in February, and it was roughly two months before the next layoffs... and then another two or three months, they laid off another two people.

 

The only way to have more layoffs at some of the Kansas papers is to close the paper.

 

That is a question people have about the merger. The new company was financed with a 1.8 billion dollar loan at 11.5% interest. Management is promising massive cost savings.. But you still need a human being to put out a paper. At some point you run out of people to fire.

That is one reason this company is in Chapter 11 in 2022.

 

Do you know why you were cut? Were you one of the senior staff members?

And most of the Facebook-reading, TV-watching people in most arts of the state won't care, until something shady happens in their community.

 

It's like that in North Carolina, too. Few bodies left in some shops.

 

It was a layoff, so legally, economic reasons. And, lowest rung - editorial assistant.

 

I'm sorry to hear that. Have you since found something new?

 

Ehhhh. haha. I'm in a kind of unique situation - I moved with my fiancee from New England to Houston, and she's the breadwinner. So, I'm mostly freelancing with a weekly out here, which I quite like. I've had one full-time journalism offer, but it came in so low, it didn't make sense for her to lose her meal chef and future childcare provider. I've mostly been looking for non-journalism work when it comes to fulltime, since the state of the industry is so bad that I really can't justify sinking another 15+ years into it. (I started getting paying jobs around 20, when I was in college; I'm 35 now.)