The bankruptcy of spirit
Monday, May 4th, 2009Once again, with its recent filing for bankruptcy, The Columbian has come to epitomize the newspaper industry’s woes.
Like every newspaper company that has gone bankrupt, The Columbian cites the overall economic downturn carrying too much debt on the books for its predicament.
Yet like all those other companies, the paper’s problem run much deeper than that. Worse yet, like all those other papers, it refuses to transform itself in any meaningful way.
The arguments are familiar: Operations are cash-flow positive, it has a sustainable business model, the good times will return, and it is not out of touch with its customer base.
Let’s look at each argument.
- We’re cash-flow positive. Whose balance sheet wouldn’t look rosy if we could all stop paying for our loans and supplies? It’s true that publishing companies have wasted much of the money they have borrowed on over-priced acquisitions and pointless new buildings. But as long as newspapers remain locked in their manufacturing mindset, even frugal companies need to power to feed an extremely capital-intensive business model. Bankruptcy might wipe clean some of the current debt, but it doesn’t solve the longterm problem.
- We have a sustainable business model. Not if you don’t figure in capital needs. But more to the point, “sustainability” has come to be measured in a paper’s ability to cut services to its customers at a rate more or less equal to its loss of revenue. That’s not sustainability; that’s a death spiral.
- The good times will return. Maybe. But the erosion of both the advertiser and consumer customer base didn’t start in 2008. It started decades ago, and the overall trajectory has been pointing downhill at a rapidly accelerating rate. So what good times are we going return to? The golden years of the 1950s and ’60s? The times before the internet, 24-hour cable news and all the societal changes of the past few decades? Or just to the times when things were declining at a slower rate than they are right now?
- We are not out of step with society. In a column about the bankruptcy filing, The Columbian’s editor addressed accusations of bias: “Some let us know what they think is the real reason we’re having problems: We’re too conservative; we’re too liberal; we don’t cover The University of Oregon well enough; we cover The University of Oregon too much. You get the picture.” I guess I get the picture: Papers are going to address charges of bias the same way they cover almost everything else, with bland he-said-she-said analysis. Some say we’re liberal, some say we’re conservative, so they negate each other and prove we are neither. But don’t expect us to examine specific complaints, relative numbers of people who feel a certain way or the depth with which they feel those sentiments. We’ll just arrogantly dismiss everyone who wants answers and change. We’re fair and balanced; we make everybody mad.
There’s not much sport left any more in being a newspaper critic. News executives are going to continue down this suicidal path no matter what anyone says. It’s hard to care about the fate of newspapers now because it appears publishers and editors themselves don’t care.
Their spirits were bankrupt long before their bank accounts were.
