Showing posts with label publishing. Show all posts
Showing posts with label publishing. Show all posts

Friday, October 16, 2009

The New Mass Media: Ebooks and the End of the Brandon Tartikoff Strategy



Today's front page Wall Street Journal story details how Wal-Mart and Amazon are in a price battle for best-selling (printed) books. Matching the e-book price for best-sellers. Authors are divided. The best-selling authors Dean Koontz and James Paterson believe they will prosper under mass market discounts. Koontz cites now defunct Crown Books, as "exploding" the market for discount hardcover books.

What is clear is that the marketplace for all sorts of information and entertainment is radically changing. After a post-War period of affluence (and the rising social status of women and their incomes in particular) driving niche and fractured marketplaces of specialized entertainment, the mass culture is returning. Driven by technology that pushes revenues to very low margins, declining personal incomes, and the ability for consumers to get "free" or "near free" news, information, entertainment, and more.

This is changing our culture. Winners will be those, who can write or create for a broad audience, taking a populist tone, and generating the widest possible audience, readership, and following. In particular, nimble execution in reaction to changing circumstances and volatile environments (political, economic, and social) will reward those who can churn out content quickly, appealing to men and women, young and old alike. In many ways this resembles the 19th Century, and the serialization of writers as various as Arthur Conan Doyle, Dickens, and Jules Verne in newspapers and magazines, aimed at the broadest possible audience. At the least, the death of the Brandon Tartikoff strategy is at hand.


Pioneering NBC programmer Brandon Tartikoff was one of the first to see the enormous amounts of wealth accruing to the yuppie elite in law, management, "creative" fields, and the like, and how much advertisers would pay to reach a small but wealthy audience. Hence critically acclaimed but low rated shows like "St. Elsewhere" and "Hill Street Blues." Even later ratings winners "Friends" and "Seinfeld" had initially low ratings and were kept on the schedule by the favorable (rich yuppie) demographics. This was true for magazines (Vanity Fair, the New Yorker), newspapers, movies (premium ticket prices, and premium DVD prices/tv rights/foreign distribution rights), and music (expensive CDs instead of cheap vinyl singles). Technology and tremendous amounts of wealth amassed by middle-men in various fields favored specialized content that consumers would pay for directly, or indirectly (by advertisers paying premiums to reach a wealthy few).

Technology changed the playing field, radically, with the adoption of the internet and alternative content providers. Suddenly those unhappy with the Yuppie Wealthy Liberal viewpoint in newspapers could turn to the internet, and sites as diverse as Drudge Report, Hotair, Ace of Spades, or Daily Kos and the Huffington Post for news and information. Often, bloggers such as Mickey Kaus or Luke Ford broke stories the traditional news media refused to cover. Such as the Edwards affair or the LA Mayor Antonio Villaraigosa affair (with a Spanish language media reporter covering him).

Itunes and Napster changed the music world forever. Consumers could download music for "free" or nearly free, in the former conveniently and cheaply. Music revenues in 2009 are half of what they were in 1999. Sales are dominated by single tracks, not album sales. Newspapers are folding left and right, with the Seattle Post-Intelligencer going online only, and both the Tribune Company (parent of the LA Times) and Freedom Communications (parent of the Orange County Register) filing for Chapter 11 Bankruptcy. Craigslist taking lucrative classified advertising, and advertisers moving to the internet.

Clearly, those who can leverage the internet to create content cheaply, keep fans/followers connected, and appeal to the largest group will "win" when prices are a commodity. Those creating content for rich, mostly liberal/PC Yuppies will lose. TV in particular illustrates this trend, with a number of shows on NBC generating less ratings than USA network's "Burn Notice" and "Monk" and "Psych." A show like "NCIS" can be Number One according to Nielsen with 20 million viewers. Precisely by appealing to a broad audience. The difference is that shows like "Mad Men" with ratings less than 2 million viewers (less than 10% of what "NCIS" generates) can no longer depend on affluent yuppies generating advertising revenue. There simply are not enough rich yuppies with the permanent recession, and cable rates paid to channels like AMC are probably not sustainable.


Brian Roberts built Comcast Corp. into the world's largest cable company by being a visionary who has kept the company on the vanguard of phone, broadband and television technology.

But his strategies indicate he's still worried that the Internet could one day become one of the leading forms of television distribution. That is one reason why he is determined to buy more cable channels and other content -- a strategy that has moved him from his failed effort to take over Walt Disney Co. in 2004 to his current interest in buying a piece of General Electric Co.'s NBC Universal.

Traditional cable-TV subscriptions accounted for more than half of Comcast's $17.7 billion of revenue in the first half of this year. Satellite companies and, more recently, phone companies have chipped away in recent years at its subscriber base, which now totals 24 million households.

But the Internet in some ways poses an even bigger threat: free content. An increasing amount of programs, including shows like "The Office" and "The Daily Show with Jon Stewart," are being offered free of charge on Web sites owned by networks and cable channels.

While most households still pay for TV, the idea of millions of cable subscribers canceling their service, is chilling. Industry executives have described it as "the cable bypass."

Owning the programs and the channels is one way to block this from happening. Either the content can be kept off the Internet, forcing people to buy it if they want to see it, or it can go behind a subscription wall on the web. Cable companies, including Comcast, are experimenting with a plan to put cable programming on the web, but require viewers to prove that they subscribe to a pay-TV service through an online authentication process before they can access it.


Robert's Comcast strategy of course assumes that consumers won't simply substitute "free" content online (probably advertiser supported) in favor of pay-per-access Comcast generated content. Other content creators can compete by "free" access with ads, with more broad-based content. This is particularly true since Hollywood and many of the creative class has spent in some cases sixty years (this is particularly true in publishing) catering to a wealthy elite with vastly different cultural tastes than the average consumer. Hollywood's rush to defend Roman Polanski on child-rape charges are proof of that.

Meanwhile, the hottest country act is Taylor Swift, who the Wall Street Journal notes at the bottom of a story on Tim McGraw has leveraged MySpace, Twitter, and other social networks to generate cross-over attention and following, from both traditional country fans and rock fans. Swift's rise, outside the traditional Country apprenticeship in Nashville, shows how the internet allows creative people to bypass the traditional distribution channels and rewards those with a mass-market sensibility.

The lesson of our new mass-market age is that free or low cost beats expensive, and financial rewards accrue only to those able to make creative or informational content with a broad appeal. This is true even in publishing.

Already e-books are offering fast, and cheaper alternatives to printed books. Project Gutenberg has free, public domain HTML, audio/mp3, and "Plucker" e-books of classics such as Jules Verne's "Twenty Thousand Leagues Under the Sea" and Mark Twain's "Roughing It." Plucker which is software available for both Palm Pilots and Pocket PCs, and runs on Linux, Macintosh OS X, and Windows, can read e-books prepared in that format. [Currently the Plucker site is unavailable, Sourceforge.com has various project files available. I have personally tried this with a Palm Tungsten, while offering limited readability, the software and content are free. Iphone owners have the option of using free application "Stanza" to read public domain books.

It is very hard to beat free, particularly when classics like "Huckleberry Finn" or "Robinson Crusoe" are still so eminently readable. Clearly prices for publishing are moving downwards, and those who sell the most copies at lower prices win. From the Wall Street Journal article on the Amazon-Wal-Mart pricing fight:

Some big authors, however, are looking on the bright side. Dean Koontz, whose soon-to-be released novel "Breathless" is being discounted to $10 from $28, said that he thinks the discounting may prove a good thing for the authors involved.
"Any time people are fighting over your work it's a good thing, especially when you've worked all those years hoping it would be fought over," he said. "I don't think this is going to be a long-term thing. Rather, it sounds like a promotional strategy designed to call attention to Wal-Mart's decision to enter the digital marketplace more heartily than in the past."

Mr. Koontz said that Crown Books Corp., a now-defunct book chain that grew to 170 stores in only seven years after launching in 1977, paved the way for book discounting. "They're no longer with us, and perhaps that tells us something, but after they started to discount books hardcover sales simply exploded."

Mr. Koontz said he's more worried about the independent bookstores. Although most limit their stock of best-sellers, a price war on the most popular books may hurt.
James Patterson, whose coming novel, "I, Alex Cross," is being discounted from $27.99 to $10, said he was happy to be in Wal-Mart's top 10. However, he warned any industry that sets low price points may later have a difficult time re-establishing those prices. "Obviously e-books have gotten this thing going," said Mr. Patterson. "E-books are terrific and here to stay. But I think that people need to think through the repercussions....But I'm not taking sides....I'm not the endangered species here."


Given the move towards mass culture, what sort of content can we expect on various e-book formats? Popular content of course. Horror, comedy, thrillers, action-adventure books, that generate wide audiences are likely to be the winners. Efforts like Borders Ink, aimed at tween and teen girls with fantasy novels like "Lonely Werewolf Girl" or "Vampire Academy" are likely to be long-term losers. While "chic lit" books offering fantasies of shopping, "fabulous" gay friends, and hunky Alpha males have dominated hype and sales, the NYT Paperback best-seller lists are likely to be the dominant books of the future.

With one caveat. Anyone can write an e-book, potentially. If the story is compelling enough, people will read it. Now, even lone authors un-connected to publishing houses or agents can produce e-books, and use viral marketing on MySpace and other social networks the way Taylor Swift did to promote themselves. Much of this content will resemble fan-fiction: truly awful. But enough will be of high quality (America and the West in general possesses simply astonishing talent among its general populace). As one of my readers points out in a comment, much of the problems Agents and publishing houses have is the readers. Note how the comment link here points out the weak link:

Jim Baen formed Baen Books with the specific mandate to write science fiction books drawing on a more 'traditional' heroic motif.

This is why Baen Books dominates (owns really) the 15-55 year old male audience in SF.

The key is that Baen books has a tiny staff with no bureaucracy to protect value-subtracted idiots.

This is why Baen Books is successful.

Large organizations like Time-Warner, CBS, ABC & NBC all provide niches for value-subtracted idiots to hide in, and the bureaucracies to protect them.

The publishing industry case in point, according to the writers I know, is the following:

"...the vast majority of first readers and acquisition editors can not recognize a story that straight men and boys may like, because those readers and editors are for the most part twenty-something females.

They are female because entry-level editorial jobs at major American publishers pay just a wee bit better than a summer internship -- and the jobs require one to live within commuting distance of some of America's most expensive cities.

The pay sucks so badly because every year, teeming masses of young women graduate from college with degrees in fields that don't lead to any clear, immediate career path. Thousands of them decide to move to New York City and get a job in publishing because, after all, they majored in English Literature. They all apply for the same seven first-reader positions that happen to be open at the time. The delighted publishers then hire the ones who will work for the lowest salaries. When promotional opportunities open up, the publishers hire from within -- i.e., from the pool of people of who have demonstrated an eager desire to work for an unbelievably low salary.

Guys who've graduated from college (with the exception of those who want to work on Broadway or in commercials) don't move to NYC for $25,000 a year jobs. Chicks do. Because NYC is glamorous, as is publishing.

So we wind up with a situation in which a huge portion of America's literary output is being filtered by young women who don't have a clue as to what straight boys and men like to read. Not surprising that what comes out of the filters is stuff that straight girls and women like to read."

Author John Ringo is now Baen's primary profit generator.

Baen being so small was the key to their recognizing Ringo & pulling him out of the first rejection slush piles.

Ringo's first novel was rejected by a young woman who had followed that exact career path listed above.

Jim Baen overrode that decision (and fired said first reader) because he read Ringo's stuff on the Baen fan board. They had a fan fiction section there and the fanboys there were all talking about how good Ringo's stuff was.

Baen went there, read it, found out what happened and the rest, as they say, is history.

Baen used his bulletin board fans as his unpaid for first readers and simply followed those with the best track record to promising new talent.

I just don't see any of the major media incumbents being able to "Do a Baen" and get back into the male market.


Someone will offer first-time authors the ability to produce e-books and publish them on a marketplace, with the "winners" those with good content and social network promotion skills. This offers an end-around the first reader roadblock of publishers and agents, that filter out male-oriented (or really, broadly appealing content) in favor of what 22-23 year old single, English lit majors find appealing. Which is not likely to reflect the older, more conservative socially and culturally male and female audience.

Price points will keep dropping, "free" or nearly free content will guarantee that. Content creation, particularly for authors, will be far easier, as will distribution through e-books. Sooner or later, our mass culture will return, after being slowly phased out during the post-War boom. It will look different, not the least of which will be the democratization of content creation, and a lot of truly bad fiction and non-fiction no longer filtered out by gatekeepers. But overall, this change in culture is a good thing.

Mass middle brow culture creates a series of ties that bind ordinary people in shared values, something particularly important as religious belief and attendance declines. Society cannot operate without most people most of the time having values and moral behavior pounded into them. Like it or not, that means popular culture these days, as religion has faded into irrelevance across the West (save the neo-Calvinist "Global Warming" / Gaia / Green elect-damned elites and masses). The Polanski debacle clearly points out how the elites have become decadent and debased, and are no longer fit to be instructors of proper moral behavior, so society can function without a police officer on every corner and in every home.

While much of technology has been socially isolating and atomizing, the good news is that low prices for entertainment and news equals the return of the mass culture, particularly with new creators entering into the marketplace.

It's about time.
...Read more

Wednesday, June 10, 2009

Rock is Dead: Rolling Stone and the Lack of Young People

Rock is dead. Or, more to the point, the youth culture that created rock music is dead. Because we don't have enough young people. Not enough at any rate to create the kind of robust, competitive, and creative youth market that characterized the course of Rock music from the 1960's through the 1980's. For anyone seeking proof of that, simply examine the latest issue of Rolling Stone magazine.


[click Image to Enlarge]



This isn't unusual. See the site Magazine Death Pool for the betting line on which magazines will cease publication. Note that Blender, which ceased publication in March 2009, had on the cover such rock "artists" as Kelly Clarkson. Meanwhile, the current Rolling Stone covers such cutting edge youth concerns as Obama's Energy Secretary saving the Planet, stories on "Mad Men," "Entourage," "True Blood," and "Weeds" (all skewing heavily female, and older, mid forties or later). American Idol's Chris Daughtry, and Willie Nelson are featured, along with the shocking news that American Idol's Adam Lambert is indeed, gay. Lambert of course poses on the cover as a seductive pop tart, reminiscent of Rolling Stone's 1990's era cover featuring the edgy, youth-oriented Britney Spears (pre-meltdown, pre-Federline).

None of these features, stories, photos, or series of covers screams youth orientation, and of course nearly every bit of content skews heavily older and female.

This is because America's most scarce resource is young (White) people, who drive Rock and other aspects of youth culture.

The short story of 20th Century demographics would read something like the following. In the 1920, prosperity and an increased supply of youth (born after the turn of the Century in good times) created a youth culture. Increased prosperity also led to more babies being born. Then the Great Depression ended the Youth Culture, followed by WWII, which made teenagers who turned 18 in 1942, 1943, 1944, and 1945 (born in 1924, 1925, 1926, and 1927 respectively) into adults very quickly. Youth culture did not return, until the post-War baby boom and rising incomes created it as in the 1920's. Starting with first toys and then music, youth markets exploded. The Davy Crockett craze, and toys, were as important as Elvis. For example, Hula Hoops came on the scene in 1957, along with Frisbees. Kids who were ten or eleven in the 1950's, entered their late teen age years and early twenties in the 1960's, and drove the youth culture, from music to fashions.

But, births became radically reduced in the latter half of the 1960's. Rising costs of living, declines in real wages, ending of restrictions on abortion, contraception, and the belief in delayed marriage reduced fertility and births every year starting in 1965. During the 1970's, this reduced fertility (as families were also hammered by a poor economy) only increased, recovering somewhat in the 1980's, only to fall again in the early 1990's during the recessionary period, and the high cost of housing in the inflationary period of the latter 1990's and early 2000's when the Dot-Com and Housing bubbles drove prices in urban job centers (mostly on the coasts) up past affordability for many families.

This has left marketers, publishers, creative people, pundits, and many others in a mental prison. Their model of how the world works (there is always more young people, and a large group of young people drives an ever changing culture) is at odds with the reality: there is an ever smaller supply (of young White people) who are the engine of youth culture, and this lack of young (White) people is the chief cause of the decline of youth culture in all areas.

While it is true that internet piracy, decline of the CD as a sales medium for music, and the growth of low-cost online sales of mp3 versions of music on sites as diverse as Apple's Itunes store and Amazon's own online offerings have seriously diminished the money rock artists (and everyone else) earn from recordings, live performances are still lucrative.

It's still possible to make (considerable) amounts of money from rock music, by touring and performing live, where fans will pay considerable amounts of money to see favored artists. It's interesting however to see just who ranks in live performing revenues.

The 2004 Rolling Stone Rich List has for example, James Taylor making about the same amount ($20 million) as Eminem. The Rolling Stones, Bruce Springsteen, and the Eagles are the top three performers. In 2007 Miley Cyrus earned a combined $64 million from concerts and music sales. But no new artists like Elvis in the late 1950's or the Beatles in the mid 1960's are earning this amount of money, from either recording or touring. Cyrus, working the tween girl market, made close to the amount that the Eagles did in 2004 ($63 million for the Eagles vs. $64 million for Cyrus).

As an aside, it's interesting that while musicians can make money from older fans (the Stones, Springsteen, the Eagles) or young tween girls (Cyrus), there's little evidence of any performer who can draw young White men in appreciable numbers to be competitive with the top revenue earners in pop music. Young men seem completely absent from popular music.

The 2000 Census data can be found at that link, while the 1990 Census data (for White Alone) data can be found here, while the 1980 Census data (PDF only) can be found here.

Here is the graphic version of the 1980 Census:


[Click Image to Enlarge]

Using the 1980, 1990, and 2000 Census, I've constructed the following table.






















































































































2000 1990 1980
Under 5 years 12,859,892 13,649,490 11,789,394
5 to 9 years 13,944,882 13,616,268 12,200,468
10 to 14 years 14,322,638 12,853,558 13,699,871
15 to 19 years 14,167,148 13,342,703 16,138,482
20 to 24 years 13,064,891 14,523,912 16,541,315
25 to 29 years 13,501,773 16,638,544 15,262,799
30 to 34 years 14,818,786 17,351,513 14,143,721
35 to 39 years 17,031,493 16,081,606 11,290,738
40 to 44 years 17,265,995 14,506,390 9,408,654
45 to 49 years
15,810,626 11,585,703 9,034,158
50 to 54 years 14,213,875 9,504,871 9,812,613
55 to 59 years 11,107,247 8,968,416 9,990,620
60 to 64 years 8,945,842 9,211,123 8,813,447
65 to 69 years 8,040,225 8,899,637 7,641,210
70 to 74 years 7,648,193 7,126,564 6,001,564
75 to 79 years 6,530,019 5,485,025 4,229,594
80 to 84 years 4,408,597 3,552,695 2,631,873
85 years and over 3,778,504 2,788,052 1,972,317



From this data, I've constructed the graph below showing the decline in youth cohorts from the 1980 Census data:


[Click Image to Enlarge]

I must mention that the estimates from the US Census Bureau show an increase in youth cohorts, wrt to 2008 vs. 2000, but these are estimates and not complete enumerations. They also fly in the face of the other data, which suggests a birth dearth and scarceness of young people. Among others, the losses at the UPN and WB networks, and continued losses at the merged CW network, aimed solely at teen girls. For example, the highest ratings of WB/UPN series Buffy the Vampire Slayer were 5.3 million, while that of the 1980's series the A Team were 20.1 million viewers.

Nevertheless, the data for White Alone youth cohorts for the 2008 estimates show an increase in young people created during a decade of high housing costs and declining real wages. Perhaps people magically had children at little cost, unlike earlier decades. Or some other cause is at work (immigration from Europe with pre-existing children)? I do find it puzzling that the peak numbers of the Baby Boom (16-17 million per cohort) is now approached in numbers (around 15-16 million) for the younger age cohorts, under age 5 to age 29. Particularly since the numbers of age cohorts in 2000 who would naturally age (8 years later) don't match up, there seems to be an extra 3 million people added with no explanation. Completeness however demands I point out that data, and let readers draw their own conclusions. My own are that the over-counting might well be from faulty estimates and wrong classifications (Hispanic/White being put into the White Alone category).

The White Alone category is the driver of the youth market, because Hispanics tend to strongly prefer Spanish-language media. As I've noted in other posts, during the campaign for and against California's Proposition 8 (overturning gay marriage), the opponents of Prop. 8 recruited Puerto Rican actress America Ferrara, star of the ABC-TV series "Ugly Betty" to record spots against Proposition 8. In English. Proponents of Proposition 8 got actual, Mexican native and Spanish speaking Telenovela stars to record spots in Spanish for Prop. 8. This undoubtedly helped Proposition 8 to pass.

America has a substantial Hispanic/Mexican youth population, but they tend to inhabit a separate and distinct cultural universe which only occasionally intersects with the English speaking, White/Black culture. Blacks do share many if not most of the cultural assumptions and enthusiasms of the White population, and a quick check of Nielsen's excellent ratings portal confirms that Black and White preferences for Television remains pretty much the same. While Hispanics don't share many of the same viewing patterns. Howver, there simply are not that many Blacks (12.5% of the population) to make an impact as a mass-driver of youth culture.

[Note to bloggers, for those seeking to copy/paste data into Excel from web-pages, a good Text Editor that can do regular expression search and replace is critical. For this post, I'd selected web pages generated by the US Census Bureau website and copied into TextWrangler, the free text editor from the BBEdit folks for the Mac. Using regular expressions I replaced the pattern of \r\t\r\r (a carriage return, a tab, two carriage returns) with \t (a single tab). Of course you need to show the invisibles to figure out what to replace. Gedit on Linux does not have regular expressions, both Kate and Jedit (the latter also available on the Mac) have regular expressions in Search and Replace. Once you've set up your text file properly, save it and import it into Excel or Open Office as a delimited (tab) text file and save yourself lots of tedious typing. It's faster and you don't get errors. A good text editor is also critical in replacing the junk that Excel or Open Office create when it saves HTML files, which I've done in creating this table for Blogger.]

Rolling Stone is as tedious, older skewing, aimed at a mostly older, female readership, as it is, because there just are not that many young people. Not enough young people to make say, either the Killers or Arctic Monkeys (both formed in 2002) as well-known, as popular, and as profitable as say Elvis, the Beach Boys, or the Beatles, in their hey-days, or even as the Eagles in 2004, a band at that point 32 years old (the Eagles were formed in 1972).

Everyone knows the data, but some times it takes the posed glamor shot of an ... American Idol contestant to understand how rock, and youth culture in general, are both dead. Because there are not enough young people.
...Read more

Monday, June 8, 2009

Failure of the Media Part Two: The Lingering Death of the LA Times

By all accounts the LA Times should be doing well. Absent the leverage demands of the parent company Tribune Media, the potential readership of the LA Times should be large. After all, the US Census Bureau shows 9.8 million people in Los Angeles County alone, and the Metro Area of LA (including Los Angeles, Riverside, San Bernadino, Orange, and Ventura Counties) offer no serious competitor to the LA Times. [Thanks to Google for the excellent graph at the link.] For people interested in reading about sports, entertainment, or anything else to do with the Los Angeles metropolitan area, there would seem to be no real alternative to the LA Times. It should be a perfect world, both plenty of customers, and no serious competitors. Even local blogs such as LA Observed or Mayor Sam's Sister City (the latter joking "written" by long-deceased Mayor Sam Yorty) offer no serious competition for the broad categories of sports, news, local happenings, and entertainment and few financial resources to compete in those broad categories.

Why then is the LA Times in trouble, with an ever declining readership, ever declining advertising base, ever declining staff, and morale at the paper at rock bottom? The answer is of course, demographics. Simply put, there are not enough upscale, Liberal White newspaper readers to make the LA Times profitable.


It's worth noting that the LA Times circulation peak was in 1988, with 1.1 million readers, daily. The LA Times has been declining in circulation ever since, down to 739,000 daily, as the chart below makes clear. [Data from the Wikipedia cite, see also here]


[Click Chart to Enlarge]


Yet even as the paper has been mired in one controversy over another, from the carefully timed release of sexual harassment allegations regarding then recall candidate for Governor Arnold Schwarzenegger (two days before the vote), to the suppression of the video of Barack Obama at PLO operative Rashid Khalidi's going away party and controversy over revenue sharing of an LA Times published magazine celebrating the Staples Center, population has been increasing in LA County. The increase is 14%, from 1988 to 2008, while the decrease in circulation is fully one third, at 33%.


[Click Image to Enlarge]

It's useful to recall, how under fully 14% fewer people in LA County alone, the LA Times reached it's peak circulation of 1.1 million daily. The featured Sports columnist was Jim Murray, not J. A. Adande. Batting Cleanup for Murray was the sarcastic Scot Ostler. Pat Morrison, from PBS, was not a columnist, while Jack Smith was. The newspaper, while fairly socially liberal, had a moderate to conservative political bent, was oriented towards serving it's mostly older, male readership in the things that mattered, local Sports, politics, and entertainment. The paper spent comparatively few resources on hip/trendy, but unread music columnists like Robert Hilburn, or tragically hip (but unread) movie critics like Carina Chocano. Angry Hispanic chauvinists and Liberals like Al Martinez and Steve Lopez were largely kept under wraps. Knowing that readership of the LA Times was mostly White, Male, and conservative.

This focus changed, even before Otis Chandler relinquished day-to-day control in 1995, as senior editors began to focus not on what their customers wanted, but on competing with local NPR stations they'd listen to in the drive over to work. Despite, of course, all those NPR stations being subsidized affairs that required massive fundraising efforts quarterly and relied upon being license holders of valuable broadcast frequencies, through government largesse. The success of NBC, nationally, with the Brandon Tartikoff strategy was no help either. Tartikoff's strategy, was to trade absolute number of viewers at NBC in favor of young urban professionals, the yuppies. In the go-go 1980's, the strategy worked as advertisers clamored to get in front of people with money. For the LA Times, however, this strategy was disastrous.

Because locally, Los Angeles was changing. The increase in population, as seen in my post, Radio and the Death of Indie 103.1, was mostly Hispanic/Mexican. Whites were actually a declining part of the population, and there was not enough wealth being created to drive upscale advertising. Even worse, by it's very nature, paper newspapers cannot track the type of people reading it's content (and ads). While NBC and other broadcast networks could proudly tout through the Nielsen reports, just how many women 18-34, or other coveted demographic slices, were watching the shows and ads. Advertisers with the LA Times had no way of knowing if the ads were reaching the wealthy few of Marina Del Rey, Malibu, Santa Monica, the Venice Canals, or people in Torrance, Tarzana, or Culver City, decidedly less wealthy and therefore not worth paying extra for to reach.

Meanwhile, forces were brewing that would devastate LA's economy, create White Flight, and conspire to help mortally wound the LA Times. The forces had two names: Bill Clinton, and Rodney King.

Under Bill Clinton's leadership, the LA area lost175,000 jobs at a minimum. Losses accounted for fully 45% of all high tech jobs in 1998, the near peak of the Dot-com boom. The biggest losses in that sector since the end of WWII, affecting nearly 12,000 firms in the LA basin. As shown in this WSJ article, rosy projections by Clinton and his people about changing over to entertainment from aerospace proved a mirage. High paying jobs, and the ability of those high-paying jobs to sustain a White middle class (that read newspapers like the LA Times) in a region of high housing costs, taxes, and energy costs, collapsed with Clinton's defense cuts. As others have noted, particularly Steve Sailer, LA's geography does not lend itself to living just anywhere. Weather is brutally hot (and smoggy) in low-cost areas such as Riverside, San Bernadino, and the Antelope Valley. Meanwhile job centers are located in nice to live in coastal areas, making commutes brutal. Key coastal areas that have decent climates and easy commutes are off-limits because of huge concentrations of crime-ridden non-White populations, making gentrification a joke (Watts, South Central, Bell, much of Long Beach, and East Los Angeles all fall into this category). Parents have to spend considerable sums of money to live in school districts that are merely acceptable, where their children do not face gangs or anti-education populations. All of this was sustainable as long as high-paying jobs in either the assembly line or engineering staff and large supporting structure of ancillary firms continued to exist. By 1994, that structure was gone, and families unable to afford LA's high cost of living fled elsewhere. To Texas, Arizona, Nevada, Idaho, Utah, and Colorado.

Few were inclined to stick things out, because of the impact of the Rodney King riots. The riots, and the inept, politically driven response by the LA and State leadership, lost the confidence of LA's middle class. The riots, occurring just hours after the Not-Guilty verdict in the trials of LAPD officers Koon and others, on April 29, 1992, killed 53 people and left substantial parts of the city (most of it located in Black/Hispanic South Central) in burnt out ruins. However, the beating of Reginald Denny, by a Black mob, as the LAPD and other law enforcement authorities retreated, shocked middle class Whites in the LA area. As did the televised gun battles between Korean shop owners and marauding gangs of mostly Black looters, with the law enforcement authorities absent entirely.

Here was unmistakable evidence that when it came to public safety or suppressing a mob of Black (or Hispanic, just as many if not more of the rioters and looters seen on TV were Hispanic/Mexican), the political leadership, from Republican Governors like Pete Wilson down to the LAPD Chief Darryl Gates, and Black Democratic Mayor Thomas Bradley, would choose to sacrifice public safety instead of crack down hard, on mobs of non-Whites. While expedient politically in the short run (avoiding hugely negative press coverage which was for the most part solidly pro-rioter, and predictably anti-police) this series of choices to sacrifice mostly White (and Korean) public safety in favor of avoiding criticism for shooting and mass arrests of Blacks and Mexicans, had predictable results.

Besides increases in gun ownership among Whites, those who could leave Southern California did so, for states that were noticeably more White, and committed to public safety. Loss of confidence in the entire class of leadership, Republican and Democratic alike, when it came to public safety, had the Los Angeles Basin White middle class ready to leave when economic hardship hit in the form of Clinton's defense cuts that destroyed the economic basis of the White middle class.

As a result of the White flight from the LA basin, the LA Times began to lose readership, and potential readership, year by year. All the while, more immigrants, legal and otherwise, crowded into the LA basin. However, nearly all of these immigrants were non-English speakers, and preferred their newspapers, if they read them at all, in their native languages. Further eroding the LA Times financial position. In response, the LA Times leadership, created more and more liberal coverage. Not just on the opinion pages, but in the coverage of everything from Sports, to Entertainment, to News.

Completely absent from the LA Times pages were the growing influence of the MS-13 gangs, their ability to push westward from Downtown LA into MacArthur/Westlake Park, and the flight of Blacks southward into Long Beach out of South Central and Compton as superior numbers of Mexican immigrants (and gangs) pushed them out of native turf. That many of the gang-related murders in the LA area each year were related to these struggles were never mentioned in the LA Times. Meanwhile, it was by no means unusual for LA Times movie critics like Carina Chocano to query film-makers/producers like Judd Apatow on why fat White Guys get all his jokes (Apatow responded that political correctness dictated that only Fat White Guys be funny, the subject of jokes) in PC-inquisitions. Much of the content of the LA Times resembled a PC inquisition, into the state of mind of any (White Male only of course) person who might harbor racist, or sexist, or homophobic thought (crimes).

Naturally, subscribers edged ever downward. To their current level, a third less than the 1988 peak. Now with a heavy debt load acquired by the leveraged purchase of the Tribune Company by owner Sam Zell, the LA Times seems circling the drain like the Seattle Post-Intelligencer and other newspapers that might cease publication altogether in favor of online-only limited content.

The environment for Print Newspapers is dire. Newsosaur notes that young people (and there are few of them to begin with, at least White ones, due to the birth dearth) do not like to read newspapers, and the percentage that do has declined from 40% or so in 1999, to around 30% today. This is consistent with other findings. Older (White) Americans, age 65+, read newspapers the most (above 70% in 1999, to about 65% today). While ALL groups have declined, only ages 45 and up both started and finished above 55% in reading newspapers regularly).

Even worse, ad sales slid an appalling $2.6 billion last quarter or fully 28.3%. There is not any prospect of an upturn in the economy bailing out a failed strategy of appealing to ever younger, more liberal readers, who don't read newspapers in the first place, while alienating older, more conservative readers. The collapse of the housing industry and banrkuptcy of GM and Chrysler, means that ads for houses and autos, mainstays of newspaper advertising, are largely gone. Not to be replaced or revived any time soon.

Clearly, the LA Times, and parent Tribune Company, is only a few short steps away from bankruptcy, and perhaps cessation of the print publication of the LA Times. I doubt many readers will miss them.

So what is ahead for papers like the Times?

They can probably soldier onward, zombie-like, as glorified blogs. Costs for electronic versions are astonishingly low, but there remains the problem of getting people to read their content. The LA Times certainly could have driven millions of viewers to it's website by the simple expedient of putting up the video of Barack Obama at Rashid Khalidi's going away party. That it did not speaks volumes about it's desire to present ideological purity and propaganda (news suppression) over providing content someone might actually want to read. But simply producing a glorified "professional" version of LA Observed without the style and critically, the content of that website is not going to produce profits. Merely lower levels of losses.

Newsosaur, a Silicon Valley entrepreneur, believes that his "ViewPass" will allow newspapers to charge prices content on array of mobile devices a sort of me-too operation in the way that the NFL or MLB charges for games streamed onto mobile phones and the like. I don't think that will succeed. Simply because newspapers are unable to provide anything worth reading.

Lost in all of this is the generational change of leadership in newspapers and indeed nearly all media. Old-line editors were like columnists such as Jack Smith or Jim Murray. They understood, and shared, the likes, dislikes, prejudices, virtues, and flaws of most of their readers. Because they were like their readers: older, Whiter, more conservative, middle class, and well, male. They certainly were not part of the liberal hothouse of academia and the media that exists today, advancement was through apprenticeship and demonstrating that stories generated readers (and thus money), not through "correct" ideology and gender, race, and sexual orientation membership. It would have been unthinkable in the Jim Murray era for the LA Times to employ a Sports Writer who openly had (a publicly celebrated in the LA Times pages) sex change operation. It simply would not have been tolerated, the risk of canceled subscriptions was too high, and the paper's purpose was to turn a profit, not push a social agenda (one alien to most of it's readers).

When the agenda of "celebrating" the transformation of Mike Penner to Christine Daniels takes precedence over providing an enjoyable Sports section for the morning breakfast table, newspaper management has lost all ability to connect with it's potential readers. A "ViewPass" can provide all the centrally managed mobile content that can be created, potential readers won't pay for Sports content provided by trans-gendered folk, even if said content is free.

Newsosaur is quite skeptical of the ability of the government to provide bail-out money. The losses are too deep, and the taxes required too onerous, to provide a complete Pravda model. While it's certain bailouts will be proposed, the ability to push them through in hard economic times when readers have already voted with their wallets (not to subscribe) is questionable.

It's quite likely, instead, that various bloggers, and conglomerations of bloggers, locally, will provide content, and that as newspapers like the LA Times shrink down to LA Observed / Mayor Sam's Sister City size, those bloggers or people like them will grow upwards. After all, it's all about content.




...Read more