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What the Washington Post and Boston Globe Sales Tell Us About the New Breed of Owners

The sales of the Washington Post to Jeff Bezos and the Boston Globe to John Henry raise the question why people would want to own newspapers if they aren’t doing so for obvious financial gain.

 

There are clearly people who want to own papers for political purposes so they can directly influence debate and policy. This is certainly the case for the ultra-conservative Koch brothers, who have been trying to buy the Los Angeles Times this past year. But Bezos and Henry don't seem to fit that mold.

 

Bezos’ purposes for buying the Post are not the pursuit of profit. He certainly would produce better returns putting more effort into Amazon or another commercial firm. John Henry can expect far more returns from effort in his investment firm or his sports empire than the Globe. So why are they buying legacy media? 

 

The answers lie in human traits.  All of us need diversions. We need toys to play with; things to spark our interest and imaginations. 

 

Bezos can clearly bring ideas and expertise gained from shifting the mail order catalog concept to the web and contribute his innovative spirit to the Post.The challenges of learning the media business and trying to transform its distribution and operations are clearly interesting and attractive. And the price for the Amazon creator isn’t high. 

 

John Henry doesn’t bring great digital expertise to the Globe, but he does bring strong organization, marketing, and turn-around skills and experience to the effort.  He also has strong local community ties and bringing ownership back to Boston is a gift to the city. Especially because hating everything associated with New York is the city's pastime.

 

The newspaper ownership will also make both of them more respectable as citizens, not just as businessmen. There is a long tradition of wealthy U.S. merchants, industrialists, and traders playing citizenship roles in public life and philanthropy after achieving immense personal success. These range from Andrew Carnegie to J.P. Morgan and J. Paul Getty to Bill Gates.  

 

Some who moved into public roles have done so to gain respectability that eluded them because of harm they caused while climbing to the top; other because of a genuine desire to make society better. 

 

The sales of the Post and the Globe reveal a breed of owner who wants not just respectability or making contributions to society, but a place to use their knowledge and abilities to tackle new challenges. Whether it will help the newspaper industry remains to be seen, but it will at least inject new ways of thinking into the industry. 

Ambient news: All the news most people want

Ambient news is proving a significant challenge to news organizations trying to serve readers on multiple digital platforms and maintain their print and broadcast news operations.

Contemporary technologies all around us are now delivering breaking news, sports scores, and market updates on electronic screens and displays in elevators, taxis and buses, bars and restaurants, on the sides of buildings, through smartphones, and via social media.

In years past, we all had to deliberately turn to newspapers or radio and television newscasts, or at least glance at headlines at news stands, to get a quick overview of major events. That era is past.

Today news is free and ubiquitous and, unfortunately, provides all the news that most people want. This is bad news for those trying to provide news commercially.

In the past, newspapers and newscasts filled their space and time with non-news features and information designed to attract audiences that wanted only a little news. Most newspapers, for example, rarely carried more than 20 percent hard news during the past 50 years and provided a heavy diet of sports, entertainment, lifestyle and other diversionary content. Today, light news readers who formerly bought papers for non-news articles find plenty of that information for free on television and the Internet and they are abandoning newspapers and news broadcasts.

Those who remain the audiences of newspapers and new broadcasts tend to be heavy news consumers, people who want significant amount of news and serious information. They value the kind of news reporting that provides social benefits. Unfortunately, they are getting less and less of that news as publishers, news producers, and editors continue pursuing the audiences that have left them and are satisfied by ambient news. In doing so, news executives are leaving their prime audiences of heavy news consumers increasingly dissatisfied and without much incentive to pay the increasing prices needed to maintain established news organizations.

If print and broadcast news organizations are to survive and serve the purposes for which they were established, they are going to have to start paying attention to the audiences they have, rather than the audiences they wish they had.