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The work blog of Joshua Ellis

What Newspapers Are For

The BBC newsroom, circa the day.

New media blogger/guru Seth Godin has this to say in a post entitled “When newspapers are gone, what will you miss?“:

What’s left is local news, investigative journalism and intelligent coverage of national news. Perhaps 2% of the cost of a typical paper. I worry about the quality of a democracy when the the state government or the local government can do what it wants without intelligent coverage. I worry about the abuse of power when the only thing a corrupt official needs to worry about is the TV news. I worry about the quality of legislation when there isn’t a passionate, unbiased reporter there to explain it to us.

[...]Punchline: if we really care about the investigation and the analysis, we’ll pay for it one way or another. Maybe it’s a public good, a non profit function. Maybe a philanthropist puts up money for prizes. Maybe the Woodward and Bernstein of 2017 make so much money from breaking a story that it leads to a whole new generation of journalists.

The reality is that this sort of journalism is relatively cheap (compared to everything else the newspaper had to do in order to bring it to us.) Newspapers took two cents of journalism and wrapped in ninety-eight cents of overhead and distraction. The magic of the web, the reason you should care about this even if you don’t care about the news, is that when the marginal cost of something is free and when the time to deliver it is zero, the economics become magical. It’s like 6 divided by zero. Infinity.

Having been a print journalist for a pretty long time now (13 years! Jesus!), I’m gonna go ahead and disagree with Godin here. The heavy stuff — investigative journalism, maintaining a Washington bureau, local news — is way more than 2% of the cost of running a paper. Non-feature sections of a newspaper — arts and entertainment, opinion/editorial, advice columns, et cetera — are not that expensive to maintain. Trust me on this — most columnists and reviewers aren’t making the big bucks, unless their work is regularly and widely syndicated. (This is not a function of the Web’s advent, by the way. This is how things have always been, as far as I can tell.)

Until the current crunch, most of this work was handed off to freelancers, who were paid flat fees (like $50 for a CD review) or word rates (like 15 cents per word). For example, when I wrote a weekly column for the Las Vegas CityLife, I was paid the same amount every week for a column that was expected to run between 750-850 words.

“Real” journalism — investigative, in-depth journalism — is usually done by full-time salaried newspaper staff. Why? Because it takes a hell of a lot of time and effort and resources, and it’s rarely worth it for freelance writers, who are almost always paid by the word for features.

To put this in perspective: the first story that Bob Woodward and Carl Bernstein wrote as staff writers for the Washington Post about the Watergate scandal runs to 1558 words. If that story were being published today, and Woodward and Bernstein were freelancers, they could expect to make somewhere between 20 - 50 cents per word. That’s $311.60 - $779.00, split two ways, in 2009 money. (Split more ways if you count the contributing writers listed at the end of the piece.)

Do you think that amount is commensurate with the amount of time and effort Woodward and Bernstein spent researching that piece? Of course not. It probably took them weeks if not months to do the footwork to put that piece down on paper and make it stick. That’s real work, real hours, real expenses. (Unless you think Woodward’s car ran on good will.)

What newspapers have that blogs don’t — and can’t, and won’t for the foreseeable future — is full-time staff, who are paid a (presumably) living wage to do the kind of in-depth work that blogs don’t, can’t, and won’t for the foreseeable future. A staff writer can spend the hours in the library or the paper’s morgue and on the street interviewing sources, doing interviews and getting background.

Newspapers also still provide identity and legitimacy functions for journalists, particularly in the world of politics. Don’t believe me? Try to get White House press credentials for your blog. Call up your Senator and ask their press secretary to provide you with background and an official statement for a blog post you’re doing.

I think the key here is in the last paragraph of Godin’s post. The statement that “the reality is that this sort of journalism is relatively cheap (compared to everything else the newspaper had to do in order to bring it to us.)” is simply untrue. Having a staff of journalists costs the same as having any other kind of staff: salaries, real estate, equipment, insurance, utilities, the whole nine yards.

If having a staff was somehow cheaper than hiring freelancers, why do technology companies send their programming work to Bangalore? The answer: it’s not. Journalists don’t make as much money as programmers do, by and large, but the economies of scale are the same. Paying people to do work full-time is much more expensive than paying freelancers. This is simple fact. And I’ve already explained why freelancers don’t do investigative journalism, as a general rule.

Godin also says “The magic of the web, the reason you should care about this even if you don’t care about the news, is that when the marginal cost of something is free and when the time to deliver it is zero, the economics become magical.”

But it’s not free. I can’t understand why people don’t see this. Writing an article about corruption in local or national politics is not free. It takes time and money to make it happen — more time and money than this blog post took, or Godin’s post took, enough time and money that most people can’t afford to do it simply for whuffie or blogerati status. Delivering it may be free and instantaneous, but that doesn’t mean making it is free and instantaneous. In this sense, the economics truly are magical, in the sense that most of the people attempting to practice them are making an extremely artful show out of smoke and mirrors. And the miracles are just as illusory.

Just because you make an elephant vanish from a stage doesn’t mean the elephant’s really disappeared. It’s still around, somewhere…unlike, unfortunately, the prospect of having real, in-depth, sophisticated investigative journalism in an era where people seem to genuinely believe you can get something for nothing.

9 Responses

  1. Jennifer Henry says:

    Dear Josh -
    I get my news from cable TV where the pretty faces of high school drop-outs deliver the concise opinions of less attractive (and therefore more available to spend long nights researching Obama’s daughters’ pet allergies) “writers” in 15 seconds or less.
    Paper is dead, let’s put it to rest with the dignity and reverence it never earned in life.
    Also, news journalism is for suckers. Let’s just write about music, booze and ourselves. Agreed?
    ;) Jennifer

  2. [...] the full post here. This entry was posted on Friday, January 16th, 2009 at 2:07 pm and is filed under CityBlog. You [...]

  3. Klintron says:

    I agree with you that Godin’s wrong about the cost of reporting. I’d expect reporters salaries to the biggest cost in running a paper. But I disagree with this bit: “What newspapers have that blogs don’t — and can’t, and won’t for the foreseeable future — is full-time staff, who are paid a (presumably) living wage to do the kind of in-depth work that blogs don’t, can’t, and won’t for the foreseeable future.”

    I’m not so pessimistic about the possibility of online media to pay full time staff. This is already happening a few outlets - such as Wired’s blogs, and Gawker Media for example. There’s not really any reason that professional, paid journalism has to come from newspapers, except that they have money. But their money has been quickly vanishing and moving online (online advertising has many benefits over other forms of advertising). Like Godin pointed out, the establishment media hasn’t even been doing a good job lately.

    So better questions are: how can established media companies profitably move online and still do quality journalism, and can upstart online media companies make enough money to pay for quality journalism? How can upstart media companies develop a name for themselves so that sources return their calls? These aren’t easy questions, but I don’t think clinging to print media is the answer to any of them.

    The two big alt weeklies here in Portland have high quality online presences and are well poised to make good money online. They have competition from various local blogs that are making money and in some cases doing serious work. For example, bikeportland.org. They’re a niche site, obviously, but have done a remarkable job covering local transportation issues. I see a bright future for journalism in Portland, even if it’s not in print.

    Other communities might not be so lucky, so here’s another question: what if there’s not money for quality local online journalism in your community?

  4. admin says:

    Klint,

    Your point is well-taken. When I say “newspaper”, I should actually say “professional news-gathering organization”. The actual medium is fairly irrelevant. An online news org works differently on the front end, but the back end is still the same: a bunch of people being paid to find news.

  5. cateland says:

    Having worked in the newspaper biz for over 35 years I agree with what you say. Real, honest factual news is hard to come by these days via electronic media. Blogs can pass as fact to those who don’t care enough to find out any different; most established dailies still hold to a scintilla of truth in reporting - a standard loosely played on the web.

  6. Klintron says:

    Ethan Zuckman’s been wrestling with this problem on his blog for quite some time, and has a hard look at the number and the problem with ad-based revenue models:

    http://www.ethanzuckerman.com/blog/2009/01/16/is-ad-supported-journalism-viable-in-a-pay-for-performance-age/

  7. [...] local news coverage. Joshua Ellis, a journalist with 15 years experience in the field posts counter points and dissects his post (MUST READ).   Having been a print journalist for a pretty long time now (13 years! Jesus!), I’m gonna go [...]

  8. Well said.

    What are your thoughts on nonprofit outfits like
    ProPublica?

    http://www.propublica.org/

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