Sporting News/AOL Fanhouse

I explained myself very badly and I cannot apologize enough for that.

There are several cities outside of the five that ESPN has officially launched that have hired writers that are now worried about being overextended.

Let's just leave it at that.

 

I think of all of the writers who have left good jobs at papers for Fanhouse and this is truly frightening.

 

The only growth is in specific industries where a small market is willing to pay high subscription fees for good reporting.

Politics, finance, health care, etc.

 

Good point. People have shown they will pay good money for excellent political, financial, health care, etc. coverage, whether its individuals or large companies. That's why companies like Politico are launching Politico Pro, aimed at firms and companies that can afford the crazy subscription rates. I don't the same can be said for sports coverage.

 

I was just on Fanhouse and the thought of some of these guys being cut loose is mind-numbing.

 

The only growth is in specific industries where a small market is willing to pay high subscription fees for good reporting.

Politics, finance, health care, etc.


This.

The way to make money in media, I think, is narrowcasting to a specific, reliable demographic that is: (a) willing to pay for your content, either because it gives them a tangible competitive information advantage, or because it's an entertainment luxury item they'll spring for; (b) deliverable to advertisers that are desperate to reach them and therefore willing to pay you; (c) both, if you're lucky.

Cable television networks basically do this already. (HBO, ESPN). So do financial and political information subscription services.

Sports information provides a natural niche along these lines -- although only as an entertainment luxury item -- but not nearly as big a niche as any of us would like.

I expect a lot more consolidation in the next decade. I think it will end up looking something like: ESPN, Comcast, whatever teams and leagues do to provide information directly, local TV and very, very low-paying, bloggy online local sports coverage.

Most of us are going to be culled, sadly.

 

Screwball -- it basically involves gathering the weird/fun/sad/unique things that happen every week in the sports world.

 

Moddy first let me say that I'm sorry for the news. Needless to say I hope everything works out for you and all the talented writers that Fan House has amassed.

The problem I have whether it be Fanhouse, ESPN, Yahoo or Fox there are just to many writers to follow on any given day.

I pretty much use SJ as my "clearing house" for good articles. If it's worth a read someone will post a link here.

Fanhouse to me has always been like a well done prime time network tv show that I rarely watch but when I do, always think I need to watch regularly ,but then go weeks before catching again. 30 Rock would be an example.

Too much to read,too little time.

 

What sickens me about this is this is the same place that was hiring writer after writer less than a year ago. A lot of people left great jobs to go there and now they're screwed.

 

Shows the danger these days for leaving even a shaky job for one that shows great potential but is unproven. Been there, done that. I think nearly all of the Fanhouse jobs will go away. Fanhouse supposedly had a staff of 70, with most making more or about the same as they did at their last newspaper. Not all received benefits. But let's assume that overall the average cost-per-employee to Fanhouse was 75K. That's $5.25 million a year in salaries and benefits. The Sporting News is a tiny company. It can't afford to take on that kind of payroll, especially since the new deal requires it to share profits with AOL. So it makes sense that only 5 or 6 people will be offered jobs with TSN.