All of a sudden, the newspaper industry is…in the news!
Jeff Bezos of Amazon fame has purchased the Washington Post and now the rumors, conjectures, whispers, and prayers are flying at that paper – and perhaps at most other newspapers in the country.
Think about this – our newest Public Radio Tech Survey indicates that only three-fourths of respondents now read a newspaper – print or online – on a regular basis. And these are college educated news junkies, now opting to get their information elsewhere, as opposed to from that lump of newsprint sitting on the front step.
Here are some key metrics to consider:
- The New York Times bought the Boston Globe twenty years ago for $1.1 billion
- It sold the Globe last week to Boston Red Sox’s owner John Henry for $70 million
- Bezos bought The Washington Post this week for $250 million
If it sounds like Bezos got a steal, the truth is that he’s got his hands full. It’s not a matter – as some are suggesting – that he knows things about the business that the Graham family does not.
It is about how a guy who seems to have a good heart, a great mind, and excels in customer service might approach content creation, distribution, and sales in a traditional media environment. Based on some of the typical staff murmurings that always accompany a sale of this type, he will likely run into some resistance along the way.
Post employees should be celebrating. The trajectory for the paper was clear, losses were mounting, and continuing on the same path would have clearly led to a disaster at some point not so far down the road. With Bezos at the helm, the only guarantee is that he and his team will try new models and ideas in order to better understand and master the dynamics of this business. The Amazon experience has been about playing the long game. To that end, it has redefined the book publishing industry, as well as newspaper and magazine subscriptions and usage.
In a letter to WAPO staffers, Bezos stated that the values of the institution would not change and that the current leadership team will stay on. And then he said this:
“There will, of course, be change at The Post over the coming years. That’s essential and would have happened with or without new ownership. The Internet is transforming almost every element of the news business: shortening news cycles, eroding long-reliable revenue sources, and enabling new kinds of competition, some of which bear little or no news-gathering costs. There is no map, and charting a path ahead will not be easy. We will need to invent, which means we will need to experiment. Our touchstone will be readers, understanding what they care about – government, local leaders, restaurant openings, scout troops, businesses, charities, governors, sports – and working backwards from there. I’m excited and optimistic about the opportunity for invention.”
So it starts with the customer – what she values and cares about. And as he says, The Washington Post will go from there to figure it out.
Isn’t this what every media employee wants to hear from its leadership – a dose of reality, inevitable change, an urge to try new things, and a focus on the consumer?
For many years, there has been speculation that one of the big digital media companies – Apple, Google, or even Amazon – might buy a radio company to complement its holdings. How would they run things differently than a Clear Channel or any of the other long-time radio groups?
There’s going to be an amazing story for the Washington Post staffer who picks up the ball, focuses on Bezos’ moves, and writes that book. He may not reinvent the newspaper industry after all, but then again….
And if you’re a few miles up the beach working in radio, it might be smart to study what Bezos does at The Washington Post and how some of those moves might – or might not – translate to what’s going on in radio.
It will take excessively bright, caring minds that are willing to experiment and innovate.
The Washington Post may have just gotten lucky.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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Great insight, Fred! I hope radio takes note. I also liked this in Allen Mutter’s “Reflections of a Newsosaur” blog: “Bezos, the billionaire founder of Amazon.Com, is uniquely equipped to bring unprecedented innovation and fresh energy to an industry whose managers run their businesses like the people of Cuba treat their 1953 Plymouths: tinkering with them just enough to keep them running.” Again, I hope radio takes note.
Thanks, Ed. I concur that radio may be able to take some learning away from what Bezos does for WAPO. Seth Godin refers to what you’re talking about as “polishing the furniture.” In the case of newspapers (and some would argue, radio), it’s time for some serious innovations.
I know some have said things like “What does Bezos know?” or that the newspaper business (as well as all of traditional media) is finished. I don’t believe that’s the case, but that it will take a serious effort from a smart team to possibly transform it. It will be fun to watch.
Thanks for taking the time to comment.