Advertise Here
Deliver your message to thousands of readers every day.
Our readers are influential opinion makers - politicians, journalists and activists.
Our latest headlines
- Weekly Radio Address: Assembly Lead Water Negotiators Huffman, Caballero Discuss this Week’s Historic Agreement to Solve California’s Water Crisis
- Feinstein Once Again Flirts With Entering the Governor’s Race
- A Good Health Care Bill Emerging from the House
- Schwarzenegger Applauds Passage of Peripheral Canal/Dams Water Package
- "Historic" Water Deal Draws Both Praise and Criticism
- Republican State Senators Vote for Administrative Chaos, Backdoor Cuts in IHSS
- Assembly Budget Committee Follow-up Informational Hearing on Implementation on IHSS Program Changes
About Us
David Greenwald, Editor. (Contact David.)
CFC Education Foundation, Publisher. (Contact us.)
Got a news tip? Want to write a guest column?
Contact David here.
About California Progress Report.
Founded by Frank D. Russo (Publisher and Editor, 2006-08).
Sponsors
Books
Why Readers Reject Newspapers

By Clint Reilly
Newspapers used to print money for their owners. Some – like Richard Thieriot, the former owner of the San Francisco Chronicle – did better than others.
Thieriot was smiling like the cat that ate the canary when I spoke with him at former State Senator Quentin Kopp’s recent 80th birthday party. Thieriot’s family sold the Chronicle and KRON television for more than $1 billion at the market’s zenith in 2000. Hearst Corporation paid $660 million for the Chronicle alone.
Today, rumors abound about the Chronicle’s financial picture. Including annual losses, Hearst has likely invested more than $1 billion in the Chronicle, yet the paper is only worth a fraction of that amount. Facing a dismal economic picture, Hearst recently offered buyouts to more than 100 staffers, the second time it has done so in the last 18 months.
But the Chronicle is not alone. The entire newspaper business is in free fall. The Internet has stolen both readers and advertisers, and a grinding recession has further curtailed ad spending. And as younger readers flock online, circulation continues to plummet.
With declining revenues come repeated staff cuts. The papers are even shrinking physically, and vital coverage of local government has suffered in many communities.
Sam Zell, the real estate mogul who led the $13.6 billion buyout of the Tribune Company – which includes the Chicago Tribune and Los Angeles Times – said, “Because newspapers have historically been monopolies, they have been insulated from reality. Newspapers have to respond to their customers.”
When papers failed to respond to their customers, Craigslist did. The website devoured newspapers’ classified advertising business by offering a more efficient model. I spoke with Craig Newmark, Craigslist’s founder, at a Barack Obama fundraiser we both attended recently. Newmark told me that poor journalism and lousy newspapers are digging their own grave – not Craigslist. While Craig may be too humble, others share his disdain for an industry seemingly incapable of responding to its first real competitive threat in 100 years.
Monopoly journalism allowed many owners, editors and journalists to fall out of touch long before the present crisis.
As a political consultant, I repeatedly witnessed bizarre behavior at newspapers that no other business would ever allow. Some reporters and columnists were frequently drunk or on drugs on the job. Such conduct was not simply tolerated, it was condoned. These third-rate Hunter Thompsons screwed up appointments and scrambled facts but were never called to account for their mistakes, incivility or disruptive behavior. Violent behavior by a top editor was even defended by the company and the editor promoted. He would have been summarily fired anywhere else.
Consider the following events in 2000 involving the purchase of the Chronicle by Hearst Corp, then owner of the SF Examiner:
The publisher of the Examiner offers to “horse trade” favorable editorial coverage for the mayor during his reelection campaign in exchange for the mayor’s support of the sale.
When the publisher admits this publicly, he is fired by Hearst, even though emails and hand-written notes indicate that he informed the president and chairman of the company of exactly what he was doing. Hearst later pays the ousted publisher a settlement reported to be near $10 million.
A federal judge accuses both the president and chairman of lying about what happened. The editor-in-chief and the editorial page editor issue public denials that anything improper ever occurred. To “prove” it, the newspaper hires the former general counsel of Chevron to write a report exonerating the newspaper of any wrongdoing.
The final report – predictably stating that no breach of ethics occurred – is printed prominently in the newspaper, even though the lead adviser to the investigation, a well-respected journalist, refuses to sign it in dissent.
Years later, the now Hearst-owned Chronicle hires the now former mayor as a Sunday columnist.
Despite these clearly documented events involving the paper’s owners, publisher and editors, the San Francisco Chronicle would have us all believe that this type of behavior has nothing to do with Bay Area residents abandoning the paper in droves.
I wonder.
Clint Reilly’s initial foray into political consulting at age 23 developed into a successful 26-year career in politics, during which he founded the nation’s largest political consulting firm of its time. Reilly managed winning campaigns for a wide variety of high-profile candidates, including current House Speaker Nancy Pelosi, Senators Dianne Feinstein and Barbara Boxer, and former California State Senate President Pro Tem Dave Roberti. Recently, Reilly has led the battle to preserve media competition in the Bay Area via two landmark anti-trust lawsuits (Reilly v. Hearst and Reilly v. MediaNews, et. al.). Reilly was chairman of the board of Catholic Charities/CYO from 2002 to 2006 and is active in a variety of civic and charitable causes. This article first appeared on www.clintreilly.com/ and is republished with his permission.
Comments
Sorry, comments are temporarily disabled. We're doing a bit of server maintenance on the commenting area. We'll be back up and running shortly. Thank you for your patience.
Get Email Updates
Want the California Progress Report by email? Once a week, we'll send you the latest and greatest headlines.
© 2008 California Progress Report Our copyright and fair use policy.
Powered by Mandate Media. Logo design by Jane Norling.
RSS 