Ideas and think pieces that still stick from the year gone by – on burnout, the environment, long term thinking, media and more

As an experiment, what about looking at the think pieces and ideas that still stick from 2023 – rather than the newest new thing or predicting trends that may or may not come to pass?

For me, some of the articles I still think about, that still resonate from last year focus on issues such as sustainable success, cognitive overload and how to protect against it, neuroscience, long term thinking, journalists traumatized by work, the end of platforms, the environment – and how burned out people will keep burning down the planet.

In other words, I’m thinking of the big picture and how we can better equip ourselves for meeting the many complex problems we face today in a sustainable way – both on the micro and macro level, both as individuals and through companies, organsations and societies.

And as for burnout, I’m not planning to get on a high horse here – I’ve had at least one major burnout early in life, probably a few smaller ones later, and I learnt valuable lessons from it all - but I read this poignant and moving post on the topic in December, one that still resonates with me.

I attended a deeply fascinating debate on consciousness, work culture and work life at the start of December (expertly  organized by Guro Røberg), and stumbled across this piece by one of the eloquent panelists, Snorre Vikingsen, published on the same day, on why he crashed and why that was a good thing (Linkedin):

“How Ironic. Giving a talk on the business of burning out, advocating for a more balanced working culture, and not realizing that I was at the brink of burnout myself,” he wrote.

“Burned out people will keep burning up the planet’ is a slogan highlighting the interconnectedness of human health and planetary stewardship coined by Ariana Huffington. In a nutshell it connects humanity’s inability to create environmental sustainability with work pressure and the exhausting performance mindset.

“How can we create great conditions on the outside If we are unable to create great conditions on the inside?... Burnout symptoms affect cognitive functions, especially the prefrontal cortex, which governs long-term decision-making.” Full post here (on Linkedin).

Or as Huffington wrote herself: “When we’re burned out, exhausted and depleted, we operate on short-termism and day-to-day survival, just trying to get through the day, or even just the next hour. We’re not just less able to create new and more sustainable habits, we’re also unable to think about the future, make the wisest decisions for the long term and come up with creative and innovative solutions to complex challenges — like climate change.”

This reminds me of an old, favorite quote of mine, often misattributed to Ghandi: “What we are doing to the forests of the world is but a mirror reflection of what we are doing to ourselves and to one another,” Chris Maser, Forest Primeval: The Natural History of an Ancient Forest

A few main issues here are short-termism, cognitive overload and the interconnectedness of human health and planetary stewardship – or the interconnectedness of everything, if you like.

Adam Tinworth wrote well on this in his piece on how “Long-term thinking is our best weapon against the permacrisis”.

“The major part of the pandemic’s impact on our lives is now over. So, why aren’t we truly back to long-term thinking? Well, sadly, crisis became permacrisis. Even as the worst of the pandemic wound down, the sudden outbreak of war in Europe and its impact on supply chains and energy supply kept us focusing on the now. We had a new problem to manage, a new crisis to resolve.

It kept us reactive.”

Or, in Johann Hari’s words:

“As a species, we are facing a slew of unprecedented tripwires and trapdoors – like the climate crisis – and, unlike previous generations, we are mostly not rising to solve our biggest challenges. Why? Part of the reason, I think, is that when attention breaks down, problem-solving breaks down. Solving big problems requires the sustained focus of many people over many years."

The quote is from his book “Stolen focus: Why you can’t pay attention”, which I read, enjoyed and blogged about last year (in Norwegian). The book has been portrayed as a book on how social media is stealing our focus, but it’s basically looking at how social media is ONE of many things potentially stealing our focus and undermining our concentration – AND how to reclaim it.

That last bit, about how to reclaim it, is equally important, especially after the digital overload of the pandemic world.

And the answer does of course not have to mean to abstain from all the things potentially stealing our focus – but to be aware of the challenges, balance use, find more chunks of time for uninterrupted work etc.

Another way to phrase that is to lead a more balanced life, be more conscious and restrictive of your media / social media consumption etc. That’s not always easy as a journalist, as being up to speed on things can be such a big focus of your work.

It may seem odd to a non-journalist, but I remember having to wean myself off stuff like watching terrorist attacks unfolding live on Twitter (by way of Twitter updates) back when I moved on to a non-journalism job.

Twitter, back in its heyday, was such an excellent tool for keeping up on unfolding news of that kind.

But what kind of content and the amount of it we consume will of course impact us. To an extent you can use techniques to counterbalance it all, but it’s vital to be conscious of the impact and how to alleviate it.

That is why another great read from last year was Joanna Geary’s post on resiliency and leadership:

“Working my way up in local news, I met so many people traumatised by the work. From the reporter who relayed to me harrowing details of arriving to victims of a house fire before emergency services; or the editors who learned it was not ok to talk about the stress of doing more with less so instead turned to alcohol or painkillers among other things.

“When it comes to supporting people in news, we could and should have done a lot better sooner. But we didn’t." She goes on to offer sage advice on ways to address this.

On this topic, Headlines Network founder Hannah Storm gave an excellent talk on how newsroom leaders need to step up their commitments on mental health and wellbeing of staff (I was also delighted to be able to stream her talk on a similar topic at the Perugia Journalism Festival):

“Everybody's emotional load varies, but many colleagues tell me they are exhausted. Burnout is classed by the World Health Organisation as an occupational hazard, and it is forcing people to leave our industry…

“…Sadly, one of the most common concerns I hear from colleagues – anywhere – is they are still scared that admitting they are distressed will prevent them from getting the next promotion, or story. And yet, it can be transformational for all of us when people feel safe sharing their stories.” Ultimately, trauma in the aftermath of a terror attack was a major reason why I left journalism for my current job - so it’s so good to see people like Storm address these issues.

Then there was this piece on Psykologisk.no on energy, “Burnout - a consequence of a very good life?” (in Norwegian):

“Unfortunately, and fortunately, we are designed so that we can pull the energy master card and use more energy than we actually have when the going gets tough. But borrowed energy also has sky-high interest rates," the author wrote.

That’s hardly controversial.

But he argues that spending energy on “healthy” things like working out or hanging out with friends to compensate for things like a demanding job and a demanding family life may not work – that you ultimately cannot get energy by spending energy. Nor, he argues, can healthy habits prevent burnout if you commit to way too much in too many areas of life.

Perhaps all this is self-evident, but the article offered plenty of food for thought for me. For me, a thing like exercise is certainly a source of energy and something that feels essential to a good life – but yes, I have overdone that as well, so I guess it’s all about the overall balance.      

Another big topic I keep reflecting on, more related to my professional life, is the end of platforms. It’s easy to quip that this may solve the issue of social media stealing focus, except of course we’re just moving into a more fragmented social media landscape. Another way to look at it is, as Kevin Anderson wrote in this insightful piece “The Platform Era is ending, and the AI era is just beginning”.

Incidentally, ALL of the media debates I attended, and blogged about, last year was on AI – not to mention this brilliant one just before Christmas (in Norwegian).

But in addition to its many benefits, AI raises a whole new set of challenges – not at least, from an environmental perspective, considering how much energy it consumes. That is, if not new research, such as this on Atomic Layer Depostion (in Norwegian), comes to the rescue.

This is all in addition to all the other challenges we face ahead: Europe’s water crisis: how supplies turned to ‘gold dust’ (FT, paywall), the crisis in earth quality (in Norwegian), in biodiversity, the wars, the state of the world…

So many hard, complex challenges to solve – we really need full focus, undivided attention, and health to be able to tackle these... 

BrightonHorizonSea


Newspaper forced to put new subscribers on waiting list

On the face of it this sounds like a truly miraculous story amidst all the current  doom and gloom of the newspaper industry: Danish local Randers Amtsavis is unable to deal with the rush of new subscribers, reports Journalisten.dk.

Almost 2000 new subscribers since mid-July is forcing the paper to meet subscription requests with the following message: "We're sorry, we can't give you the newspaper straight away, but we can put you on a waiting list". However, the comments reveal that these are not really new subscribers, but rather old subscribers who left the paper in droves when it changed from being a morning to evening paper five months ago, and are now returning after the paper swapped back to being a morning newspaper (the move was announced early July and made effective as of 17 August). A remarkable story nonthesame.

In the comment section one reader asks why ever the Randers Amstavis thought it a good idea to become an evening paper, to which the paper's chief-editor replies they are not too boneheaded (my hasty translation of 'stivnakkede') to admit they made a mistake.


Where Murdoch leads, others follow: paid content here we go again

'One great gap separated the advocates or charging for online content from all others, and that was its lack of recognition, its lack of respectability in the eyes of the public, and even in the most advanced circles.'

Then, in April, Rupert Murdoch stepped forward and said readers dependence on free content had to change and, lo and behold, media executives from all over the place stepped forward to praise the virtues of paid content and unveil plans to start charging for online news. At least my newsreader was abuzz with news about media execs all of a sudden coming out as staunch defenders of paid content in all the markets I follow.

A bit like my newsreader has been abuzz this week, though now with reactions to Murdoch's announcement he plans to charge for all his news websites by next summer - most of them decidedly negative: he's mad, he's wrong, what on earth is he thinking, it can never work etc. I find I can't bring myself to get too excited about having that debate again (though I did love this comment by Adam and this post by Charlie Beckett ), so I'd rather just deal with the facts: it might not work, but it will happen. I think Murdoch-biographer Michael Wolff says it well in his comment:

...[Rupert] is going to do the thing he has always done: buck convention, offend sensibilities, and not pussyfoot around. "I believe that if we're successful, we'll be followed fast by other media,” Murdoch said yesterday—which has pretty much been his method of operation in the media business. By force of will and clarity of position, he defines the world.

Now, take Mecom for instance. In Denmark the pan-European media group headed by one of Murdoch's former henchmen, David Montgomery, is ready to roll out a system for micro-payments on its news sites as early as 1 September. The company's Danish CEO, Lisbeth Knudsen, promised they would only charge for unique content, not for general news, but said they were hoping to develope a system for charging for online content that could also be used in other Mecom  countries (in Danish). Of course, despite everything (correct me if I'm, wrong, but I seem to recall Montgomery and Murdoch had some kind of fall out) Montgomery lists Murdoch as the businessman he admires the most, but other media companies have voiced similar plans, so I think we'll see plenty of more paid content experiments in action soon ...

Will I pay? Slightly different debate. Basically, I'm all with what Chris Anderson said here. I'd pay for content I can't live without, but mainstream news site currently offer very little I can't. News Corp., for one, has very little, if any, content that is specialist enough for me, my primary focus being the European media market. Mecom's Danish flagship, Berlingske Tidende, has a pretty decent media section, so perhaps ... if cost cuts don't limit its output more than it already has...

( Oh, and I found the opening quote here, and only made some slight edits to it, after I - struck by how vogue paid content all of a sudden became with media execs - googled "coming out" )


Another Icelandic Media Baron Bites the Dust

Björgólfur Gudmundsson is not only a bank chief in hot water,as The Telegraph describes him today: with his bankruptcy an era in Icelandic media history comes to an end.

Now that both Jon Asgeir Johannessen's investment vehicle Baugur and Björgólfur, also the former owner of West Ham FC, have been declared bankrupt, Iceland's media moguls are officially dead. Between them they used to control most of the tiny island's media, including leading newspapers such as Fréttablaðið, Morgunbladid and DV.

"You know, the sugar daddy behind DV and Fréttablaðið was Baugur, but the sugar daddy behind Morgunbladid was Björgólfur Guðmundsson? Every media here has its problem. We had Jon Asgeir, they have Björgólfur," said Reynir Traustason, Editor-in-chief of DV, when I interviewed him during my reporting trip to Iceland in December last year.

"Our sugar daddies are all dead", he asserted, describing Icelandic media as "alcoholics on detox" (my feature on Ragnarok for Icelandic media ran as the lead story in Journalisten's December issue, and my story on the role online media played in the "fleece revolution for Journalism.co.uk can be found here). I also chronicled the Icelandic newspaper saga for IFRA Magazine last year, as the story is quite amazing.

When I interviewed Metro International's CEO Per Mikael Jensen about the company's Q2 results recently, I solicited questions on Twitter, and when I asked him if there ia a future for free newspapers in the economic downturn, given advertising is in decline - a question submitted by fellow freelance journalist Gwladys Fouché - he said those freesheet closures people referred to "that's those Icelandic guys". A bit rich given how Metro shocked the market by closing its entire Spanish operation in January, but you got to love how he phrased it:

"Remember the crazy guys from Iceland? There was a time there where all of them wanted to buy a football team or a newspaper,
" he said and remarked how Metro at least closed down Spain in a mature way (more on that here).

IcelandicSculptures 

I'm reminded of these sculptures along the road to Keflavik Airport, some of which seemed to be close to falling down, but I have no idea what they actually represent (snapped from behind the bus window)


Metro International: fast becoming the McDonald's of newspaper companies?

Metro International divests Italian operation but enters into franchise agreement to maintain global advertisment reach.

I was going to call his post "Metro International shrinks further", but felt depressed about the prospect of writing yet another gloomy post on newspapers when it struck me that isn't  Metro International just taking one more step towards becoming the McDonald's of media companies? With new franchise agreements in place in the US, Portugal and Ecuador this year, other places last year, the world's largest publisher of free dailies seems to be moving steadily towards a franchise model akin to McDonald's: global brand, local franchises bearing the financial risks.

With the Italian deal, Metro has successfully divested another unprofitable market, as Piet Bakker's excellent blog rightly predicted would soon be announced earlier this week - which might help improve the company's somewhat gloomy financial results. I still think those numbers are far from fantastic, as indicated here, even though Metro's CEO, Per Mikael Jensen did his best to convince me they were during our talk after the company presented its 2nd quarter (Q2) and half year results 20 July.

"A 12 per cent decline in net revenues is a great result! It's a pretty good result compared to a lot of other media companies," he told me, adding that it was down from minus 16-17 per cent in Q1. Of course, Q2 is usually a better quarter than Q1 for media companies, but the main reason for his exuberance was how a substantial amount of the costs dragging down the result (read the key figures here) was restructuring costs:

"We lost 20 million Euros in 2008, but 11 of those were in the US and Spain. When you close down those operations you have to take the cost, but these are one-off costs: they will not come back. This is why we are reasonably optimistic about the future," he said, and pointed out that at least Metro paid people the money they were owed: "We closed down Spain in a mature way, paid all or dues." Yes, that thick sarcasme is all about Nyhedsavisen, and those "crazy Icelandic guys" as Jensen dubbed them, but that's perhaps a topic for another post (parts of the interview with the Metro boss is available in Norwegian here).

However, I was going to write about Metro International and McDonald's. Mind you, not about McJournalism or the McDonaldization of news, in this case I'm much more interested in the business model. Of course, McDonald's does operate some of its own restaurants, especially in the UK. I don't know if these are the most profitable restaurants or are in markets the company knows intimately, but Metro's strategy has certainly been to hold on to core markets where they've managed to turn over a profit and reduce financial losses and risk by entering into franchise agreements and/or joint ventures in so-called non-core markets.  

Now, McDonald's is so often used to describe everything that's wrong in this world that comparing Metro to it makes it sound like I'm slagging the freesheet publisher off, but one thing you can't take away from McDonald's is its global reach and popularity. The guarantee of getting the same diet, though often with local options on the menue, everywhere has proved to have worldwide appeal. Also, it's the kind of low-cost brand which should prosper in the current downturn as more healthy options becomes too expensive for some - which, if the comparison holds true, at least sounds like good news for Metro's shareholders...

Update 01.08: Michael Jennings pointed out on Twitter yesterday that this comparison is far from perfect, I obviously know the media business better than the fast food business. Apparently McDonald's owns the real estate on which most of its franchised restaurants sit, then the franchisee uses their business model to increase property value.


Newspaper boss: doom-mongers fail to take our innovation plans into account

Is Mecom on the road to hell?

Today former Mecom-optimist, media analyst Henrik Schultz, told a colleague of mine he had yet to recover his faith in the pan-Europaen newspaper company despite the rights issue completion, which reminded me of a recent Danish Mecom controversy with an interesting twist:

Ealier this month Jyllands-Posten (JP), a comptetitor to Mecom's Danish flagship Berlingske Tidende, commissioned an independent analysis of the British-based company's accounts and prospected earnings from Dansk Aktie Analyse. The analysis concluded that the company was steering towards bankruptcy and would not be able to meet the next covenant test in 2010.

JP's article on this provoked strong reactions from Mecom, including one especially interesting one from Mecom's Danish CEO, Lisbeth Knudsen."You draw completely irresponsible conclusions without knowing our development plans," she wrote in her repy to the newspaper (my translation) - a reply (at least the bit that JP printed) which didn't contest the actual figures and calculations, including the conclusion that Mecom needed a significant increase in ad revenue to meet the covenant test, but seemed to insinuate that the budgetary goals would be met by cost-cutting and/or increased revenues from innovation.

I am perhaps reading too much into that statement, but the only "innovations" I know of on the agenda for Mecom Denmark are charging for online content and making all journalists online journalists from September on. Will that be enough? Knudsen is a very clever lady, I'm sure the whole industry would pay very close attention if it turns out she has found some new ground-breaking money making scheme to improve the balance sheets of Mecom's worst performing newspaper market, but we'll just have to wait and see.

Mecom boss David Montgomery called JP's accusations "irresponsible and selfish speculations from a rival media player" and said the agreement reached with the company's lenders was sensible and realistic, taking continued financial turbulence into account.

Still, Schultz is not impressed: "Mecom is bankrupt already in the sense that the shareholders have lost their money. In reality the shareholders have lost money by having to put up money for the rights issue," he said, adding that the rights issue gives the company a new chance but that there certainly are challenges ahead (including that ad market the whole industry seems to be hoping against hope will recover soon)- and he wouldn't recommend buying Mecom shares now.

I've seen several positive shareholder reactions to today's RNS though, the gist of it being that to hold a conference call after presenting its half year results 6 August, surely, the company must have some good news to convey. Let's hope that's not another false hope....      


These Desperate Advertisement Times

Some believe "confidence is creeping back on the menu" at adlands lunch tables, which should also benefit of the starving media hounds so dependent on those almighty ad masters in the end, but, so far, not much evidence of that is forthcoming.

For one, as the first media company I've seen, Metro International posted second quarter earnings today - and it made for pretty gloomy reading. I'll return to that later, but, in the meantime, here's a quick look at what it actually looks like out there in media-ad-land: 

Whenever I'm forced to use news sites - I get most of my news via RSS and Twitter, but unfortunately the latter often takes me through to news sites - I often find myself thinking that advertisement also comes with news content these days. Sometimes I'm even so turned off by wading through all the advertisement I give up trying to read that particular article.

I know these are desperate time, but with news sites turning their frontpages into ads; running whole page ads you have to watch before you get to the article and inundating you with pop-up ads in the form of cars, planes and other forms of creative advertisement running over the text when you finally get to the article you've got to wonder.

You'd think at least they earn good money when the ad takeup is so good as on the site featured below, but rumours have it that, at least in the Norwegian market, the competition for the advertiser's gold is so stiff that rebates are massive. My sources tell me one of the country's big media companies offer as much as 80 per cent rebate on listed advertisement prices. 80 per cent, that sounds like madness to my ears.

NA24Reklame 

Now I don't follow the Dutch advertisement market closely, other than reading certain media company reports, but I had a hard time reading this article and would've given up if it wasn't for the topic:

FDLads

With both these news sites the advertisement saturation is such that it's actually hard to avoid clicking on ads, Hans Kullin has looked at the all too similar situation in Sweden and Denmark.


A Conspiracy of Paper and the Spiderweb of Credit

"A system of credit is like a great spiderweb - you cannot see it until you are trapped within it, and you cannot see the spider until she dangles above you, poised to devour."

Now here's a description that fits like hand in glove for the many personal accounts I've heard on people who've found themselves trapped in the credit snare, and I wonder if the description doesn't feel familiar to all those (media) company owners currently struggling to restructure the mountain of debts they've accumulated in happier times. The memory of Mecom-boss David Montgomery telling a group of journalists, myself included, that the company didn't have enough debt back in April 2007 springs to mind, but I'm digressing.

The quote is from a book I was reading last week, called "A Conspiracy of Papers", and, even though it is set in eighteenth-centry London and deals with the origins of today's financial markets, I was struck by the parallels to today's financial realities. The book is historical crime of the kind I must admit I have penchant for, Neal Stephenson's triology "The Baroque Cycle" is another good example, and, amid all the action, the characters find time to discuss things like the soundness, or lack thereof, of shifting from coin to banknotes e.g in paragraphs such as this:

"But silver is silver. Coins are clipped because you can take them to Spain or India or China and exchange it for something that you desire. You cannot do that with a banknote, because there is nothing to support the promise outside its point of origin... these financial institutions are committed to divesting our money of value and replacing it with promises of value. For when they control the promise of value, they control all wealth itself."

MatOgBenk 036

Now, it gets rather philosophical, most things do if you look deep enough, but this currency-debate has not gone away: you still find those who advocate that currency should be based on real or objective values, like gold, today. More to the point, imagine how we've gone from debating a gold-based vs paperbased economy to one where a complicated web of derivatives and credit can bring down the global economy, as happened with sub-prime, collateral debt obligations (CDOs), credit default swaps and what have you not.

I'm reminded of this brilliant visualisation of the credit crisis, and I'm afraid I belong to those who think we're not out of the woods from that crisis yet, far from - especially not media companies who are struggling to deleverage, find a more viable business model and at the same time suffering the effects of the collapse in the advertisement market. Things are not looking great.

But back to the macroperspective: while reading the book I found myself wondering how much and how little has changed, and how, even if the financial market and its instruments have grown ever more complex, many of the arguments remain very similar. Just listen to this bit from Newsweek International editor Fareed Zakaria:

Finance has a history of messing up, from the Dutch tulip bubble in 1637 to now. The proximate causes of these busts have been varied, but follow a strikingly similar path. In calm times, political stability, economic growth and technological innovation all encourage an atmosphere of easy money and new forms of credit. Cheap credit causes greed, miscalculation and eventually ruin. President Martin Van Buren described the economic crisis of 1837 in Britain and America thusly: "Two nations, the most commercial in the world, enjoying but recently the highest degree of apparent prosperity and maintaining with each other the closest relations, are suddenly plunged into a state of embarrassment and distress. In both countries we have witnessed the same [expansion] of paper money and other facilities of credit; the same spirit of speculation...the same overwhelming catastrophe."


The year the media died

I can't resist sharing this intriguing version of Miss American Pie (The year the media died) here.

I found it via Peter Kirwan and Adam Tinworth, so have a suspicion it's been making the rounds online recently - but I've been rather handicapped this week due to my Toshiba crashing Friday last week, my mobile phone going to the dogs and the new laptop I bought this Friday flashing those blue screens of death at me, so I really don't know for sure. Still, lots of bits to think about in this video, whether you agree with the refrain or not:


Who's robbing us now, Mr Montgomery?

So, Mecom boss David Montgomery has pulled it off again: another covenant extension, his fourth this year, and prospects of raising new equity to the tune of £140 million, despite presenting grim preliminary financial results for 2008 this morning.

Yet it seems the company is still treading water, and yesterday The Norwegian Journalist Union (NJ) was up in arms (in Norwegian) over news Montgomery would transfer roughly £80 m from the saving funds of his Norwegian papers to help appease the company's creditors. As NJ was holding its annual conference yesterday, it reminded me of Montgomery's visit to the same conference in 2007 (which I covered for Propaganda) and this exchange of words:

Moderator: "Many feel you are robbing Edda Media papers: you are emptying the coffers, aren't you?

Montgomery: "That is simply not the case. I don't own the company, the shareholders do, and the shareholders are the pension funds of Europe... Mecom is a conventionally listed company. Money goes back to pension funds, which means ultimately it goes back to you and me."

Moderator: "We are being robbed by pension funds then."

That's only one of many colourful anecdotes from following this company closely for years. Of course, the journalist union has campaigned against Mecom owning Norwegian papers since it first emerged as a potential buyer for Orkla Media in early 2006 - partly because of its high gearing. Some will see proof of "the folly of believing that newspapers can be successful on a sea of debt" in Mecom's recent woes, others will be cheered the company's steered clear of isolvency yet again - but I can see no cheers from the smalltime shareholders so far today...

Update 09:55 CET: news that Independent News & Media (INM) has failed to reach a deal with its bondholders and says there's a "strong likelihood" it will breach its covenants without a deal, brings me another flashback from that 2007 NJ conference.

I asked Montgomery if it really was his opinion, as The Telegraph had suggested the previous day, that there was no rationale for The Guardian or The Independent to exist: "I didn't say that. The Telegraph did. But in general I think companies should make money. I think it's demeaning for people to work for companies that don't," he said.

Update 11:14: CET: Actually, looking over my transcript just now (I always try to find time to type up my notes), that was the conference, and we're talking April 2007, when Montgomery also told the audience that Mecom was a very well-funded company and didn't have enough debt at the moment....

MontgomeryReadingDT 

Montgomery reading one of his Norwegian newspapers, Drammens Tidende (original photo by Martin H. Jensen, edits by me).


Hurray, seems I get to continue reading those Press Gazette blogs after all

At least I hope today's news about Press Gazette being saved after a buyout by New Statesman owner Progressive Media (via Journalism.co.uk), implies that  I will be able to continue following those blogs. I'm also, of course, happy for the staff who get to stay on. I will however not take out a subscription for the print magazine because I'm a rather poor journalist myself; it's ancient news before it reaches these foreign shores and Roy Greenslade's explanation of the abrrevation Pdf as equalling Pretty Damn Futile brilliantly sums up my view on Pdf. Actually, I don't think I can remember when I last read a print magazine - books and newspapers, yes, mostly over the weekend - but magazines? It must have been some issue of Economist, perhaps the New Year one, I picked up for a flight...

Update 11:45 CET: and, of course, I was just reminded that Jon Slattery predicted PG might be rescued from its deathbed.


"The depressing but inevitable demise of Press Gazette"

Today, Wilmington Media announced that Press Gazette, the UK’s journalism trade mag, will be closing.

In a statement this lunchtime, proprietors Wilmington Group announced that next month's edition of the magazine would be the last hard copy edition, reports Holdthefrontpage. Dave Lee, from whom I, stuck for time as I'm in the middle of a few other stories, have stolen the title and intro, has more. I will only add that hiring Martin Stabe back in 2006 or so was a brilliant move and what got me reading Press Gazette's online in the first place (keeping in mind that I only know Martin via his blog, which I stumbled across via a former tutor, Andrew Grant-Adamson's, blog).

On a less positive note, a key industry player recently told me he felt former PG-man Jon Slattery's blog was at times doing a better job of covering the media industry than PG these days as Slattery was calling people up to get tidbits rather than just reproducing press releases - a fact I mention only because it's a trap too many news sites seem to fall in these days.

I will also add to Dave's thoughts on Media Guardian playing such a dominant role in the UK's media journalism market that there are aspects of that I find a bit odd: I would for instance have expected FT to cover especially the European media market better, and yet they're beaten again and again by Media Guardian - even on M&As and company results, issues where FT long has been heralded for having the market leading coverage. That said, The Independent also has good media stories from time to time, though they tend to "hide" them in the business section, and The Telegraph has been doing a better job of covering the media industry since they hired Amanda Andrews (or since they set up a seperate RSS-feed for media and technology, not sure which). I also get many of my favourite UK media tidbits from Journalism.co.uk, Paid Content and media bloggers.

On that note, if not even an online shred of Press Gazette will be kept alive, I shall thoroughly miss Peter Kirwan's blog - even though I was not entirely happy about a piece he interviewed me about Mecom for, I've come to really enjoy his writings on Media Money as it covers one of my favorite aspects of the media industry so well. 

For the record: of the sites mentioned here, I've been paid for article commissions from Press Gazett, The Independent business section and I'm a regular contributor to Journalism.co.uk (and, if I shall be really strict on disclosures, I've also been paid for articles I wrote for The Guardian/Observer)

Update 07.04-09, 13:00 CET: On this topic I also enjoyed reading Press Gazette Insider’s View: Why Journalism’s Trade Bible Failed by Patrick Smith 16:55 CET: and Jon Slattery's Old Bell tolls for Press Gazette via Thoughts of Nigel

17:07 CET: isn't it interesting how many people, like here, say they will miss the blogs? I singled out Media Money above, but I shall miss the other blogs too.


Norwegian press saves money by abandoning all attempts at serious reporting on April Fool's Day

'The financial crisis is forcing media to implement unusual cost cutting measures,' the female leader for the country's journalist union has admitted to The Norwegian Office of Enlightenment after the blog's investigations revealed all yesterday's Norwegian newspaper stories to be April Fool's Day's spoofs (via Sonitus) (in Norwegian).

 "This year, all Norwegian newspapers have joined forces to support this model to save our jobs. These are turbulent times and many fear for their jobs, especially the former horse riding news boys who were retrained as ink stirrers, retrained again as printers, reschooled to be scanners, then retrained as culture editors and now preparing to reschool yet again to become Twitter surveillors," the union boss, quoted under a bogus name, says in what must be my favourite April Fool's Day story this year.

At this stage I should probably admit, that in all my single-mindedness, I was planning to use 1. April to speculate about Metro International's mystery bidder and report that the real reason for Peter Chernin's fallout with Rupert Murdoch was how the latter's insatiable appetite for print led him to court the world's largest freesheet publisher, or that the desperate times on Iceland led the archrivals Jon Asgeir Johannesson and Björgolfur Gudmundsson to join forces, team up with the latter's old Russian business associates, and submit a proposal to buy Metro from 1 krone (roughly 10 pence) under which conditions the new company would take over all liabilities and move the headquarters to St Petersburg where Jon Asgeir had sought exile and Putin had vowed to protect him from his debtors granted Metro would expose the anti-Russian bias of Western Press. The Icelandic deal would mean Frettabladid would become Metro Iceland, and Jon Asgeir was also rumoured to look into launching a new range of Russian supermarkets called Бонус.

Or, or, or...but lost between meetings, the lack of superimposed deadlines and an inability to make up my mind about which scenario to put forward, which might have been good seeing how all of the scenarios I had in my mind would only be bordering on funny if you were intimately familiar with this particular part of the media industry, it never happened.

So, big fail on my account there, which brings me back to the Norwegian Office of Enlightenment's spoof (somehow that name reminds me of the Enlightened Tobacco Company which once produced Death and Death Light, the slower death, cigarettes): great stuff (any awkwardness in the translation is down to me and lack of time as I'm preparing for ... another meeting:-) )


What did I say?

Pleased to come out of a meeting and find, as I predicted would happen yesterday, that Mecom has secured another covenant test date extension from its banks - this one until 30 April. Not that you had to be a wizard to see that coming, but following the company closely helps. Now for the bigger question: which asset(s) will Mecom sell next? Its minority stake in Dutch AD Niewsmedia, its majority stake in Polish PressPublica, or something else entirely? 

Update 02-04/09, 10am CET: The Telegrahp has an interesting take on yesterday's RNS.


Another newspaper bites the dust

Edda Media-owned Sarpsborgsavisa will cease publication 28 May, it was decided yesterday.

The freesheet is the third newspaper in the county of Östfold to see its owners pull the plug within less than seven days. Only last Tuesday, Norwegian newspaper group A-pressen announced it would close local newspaper Moss Dagblad and local freesheet Halden Dagblad with almost immediate effect.

Meanwhile, it is expected Mecom, Edda Media's mother company, will get yet another covenant test extension today - this one to the end of April. The media group headed by former Mirror boss David Montgomery has been struggling to to get its debt back within agreed limits for some time now (last time I checked the lending agreements dictated a debt to EBITDA ratio of 3.25 and 3.75). The sale of Mecom Germany was completed yesterday, but this tidbit from Platforma Mediowa Point Group, one of the two companies who bid for the the Polish state's 49 pc stake in Presspublica, does not bode too well for the price Mecom can obtain from its majority stake in the company.


Schibsted's top man, Kjell Aamot, to resign

Kjell Aamot, Schibsted's CEO, will step down by 1 March 2010 it was announced when Oslo Stock Exchange opened today.

An online enthusiast, Aamot has come under fire recently for predicting the demise of print newspapers, but has since insisted he was only talking about the business model for paid-for print papers. Like most media companies, Schibsted, which owns market leading paid and free papers all over Europe, has seen its share price, and more recently its revenues, fall drastically in the wake of the financial meltdown.

However, during a press conference this morning Aamot said only the economic crisis prevented him from announcing his resignignation already in the autumn of 2008. He explained that 20 years as a CEO had taken its toll. "I have to admit one does get pretty exhausted," he said, and added that he had found himself struggling to recharge his batteries and find the motivation to go on last summer.

"Kjell Aamot has held the position as CEO of Schibsted ASA since the Group was formed in 1989. He is one of the CEOs with the longest tenure among listed Norwegian companies. He will continue in his position until the Board of Directors has appointed his successor and the successor has assumed this position, but no longer than 1 March 2010. With a new CEO in place, Aamot will be at the Group's disposal until his 60th birthday, 7 September 2010," the company said in a press release. 

Analysts my colleague Martin H. Jensen spoke to said it had been expected that Aamot wanted to scale back when he turned 60, and, as it's obvious that Schibsted has a major job to do in view of recent events, it made sense that the resignation came now.

'I would say that Aamot more than anything is a visionary. This has benefited Schibsted immensly, exactly because the company has not been just sitting on the fence as other media companies have. He has also been criticised for perhaps pursuing expansion and innovation too aggressively at times, but all together I think he has made the right moves for Schibsted,' said Atle Vereide in Enskilda.

See also:
  • Insignificances: Schibsted head saves face : "You really can’t blame the man for his reluctance to go down in history as the boss who brought about the inevitable Schibsted newspaper onslaught – as well as, undoubtedly, massive cuts in other media operations."

       AamotPresentation

This rather blurry pic of Aamot is from a results presentation I just happened to step by on the spur of the moment, it's Q1 2007 I believe, and the camera I had in my pocket is not great for taking pictures indoors - especially not under spotlights like here.

Newspaper Death in Norway

Two of Norway's local newspapers will close next week, it was announced today.

A few hours ago Norwegian media group A-pressen, who among other media assets owns 50 of the countries regional- and local newspapers, announced Moss Dagblad, a local newspaper, and Halden Dagblad, a local freesheet, will publish their last editions this month (remarkably, the Norwegian edition of Wikipedia was updated immediately for both the former and latter paper).

Moss Dagblad is the number two newspaper in Moss and has roughly 28,000 readers. The closures come in a Norwegian county, Östfold, where it was feared A-pressen's once expected acquisition of Mecom-owned Edda Media would result in closures and job losses due to media ownership regulations (For one, Edda owns the most read newspaper in Moss: Moss Avis). Now it turns out we get some the same results even without A-pressen succeeding with its efforts to scoop up Edda Media, which must be a huge disappointment.

It is also ironic that A-pressen, a media company often portrayed as more bevolent owner than Mecom, has the Labour Union (LO) and partly privatised Telenor (the Norwegian equivalent of BT) as its two majority owners. However, the executive in charge of local media in A-pressen, told Journalisten closing the 97 year old Moss Dagblad was not a result of the financial crisis but of years of losses which, despite cost cutting measures such as having its publishing days reduced to only three a week, had made the paper dependent on financial support from its owners to survive.

I'm also reminded of the CEO of Verdens Gang (VG), Torry Pedersen's, assertion that the good financial times Norway enjoyed until disaster hit the world economy has masked the structural challenges newspapers face. Norway prides itself of being one of the most newspaper reading countries in the world, but the financial crisis will be a test of how sustainable its record number of newspapers really is...


Calling out the next stops towards recession central

These are desperate media times. Late Friday night, news broke Mecom was planning a rights issue within the next month. The story surfaced just as the ailing pan-European company was preparing for a crucial week, with its EGM taking place today and its covenant test extenstion expiring early next week. 

Earlier this month, Norwegian media speculated another pan-European media player, Schibsted, may be forced to consider to ask shareholders for a capital injection, a move which would be less than straighforward due to its coroporate bylaws. However, Schibsted's CEO Kjell Aamot denied such a move was on the agenda, and said the company was instead looking to sell assets - such as taking a partner into its lucrative classified media online advertising business.

In today's market such moves look rather desperate, but so far Mecom's share price is certainly on the rise - perhaps aided by this bit of news.    

Train Station


On approaching recession central
"Ladies and gentlemen, fasten your seatbelts. We're making our final approach to recession central," wrote Peter Kirwan in early February as we were coming closer to the financial reporting season with all its expected doom and gloom.

I was quite taken by that metaphore, and thought it would be a great way to visualise the history of events later: a ghost train moving relentlessly forward, making unwelcome stops at most media companies along the way. Except it's still a bit of a mystery train, and we don't quite know when we'll reach recession central or what it'll look like.

Interestingly, as we're currently debating why financial journalism failed to spot the storm brewing, if the nature of the meltdown was not forewarned, at least 247wallstreet.com's Jon Ogg blogged about how tired he was of predictions about recession central in December 2007 - not long after we had started to see the footprints of the subprime induced ghost in the share prices and results of European media companies. Framed that way, it's not been such a speedy train at all, and, as I've said before, I thought we would have seen the downturn much earlier, but because I was focusing narrowly on key cyclical indicators such as (ads for) property and jobs and the media industry I was not prepared for the scale.

GhostTrain  
Photo by Ben McLeod from Flickr, published under a Creative Commons license


Freesheets may be in the frontline trenches of this war, but it's only the tip of the iceberg

Yes, freesheets are challenged, but that's down to the collapse in the print classifieds market, and Mecom is hardly the best example of a company brought down by its frees.

In an article yesterday, The Financial Times (FT) suggested the freesheet model could be the first victim of the current newspaper crisis. Now, I'm not sure if I should have a go at FT or Trinity Mirror CEO Sly Bailey here, but this article elegantly skirts around the newspaper industry's bigger, structural problem, and some of its facts are at best misleading.

Freesheets hardly at the heart of Mecom's problems
"...Companies with the most serious threats to their existence have a strong element of free newspapers in their portfolio," the FT article says - and cites Mecom as its first example. This smacks of lazy reporting. The key problem for the pan-European newspaper group headed by former Mirror boss David Montgomery is high gearing or leverage. In short: scooping up too much, too fast at the top end of the economic cycle, using borrowed money to facilitate its acquisition spree. That, combined with operating in a sector which is both cyclically and structurally challenged, makes it the perfect example of the kind of company whose shares are receiving the worst hammering in the current downturn.

Of course the downturn in the advertisement market is hitting Mecom like all other newspaper companies, but I'm not convinced Mecom is the best example of a company brought down by its frees. If you're not familiar how much of its business is made up of freesheets, here's a quick run down:

Mecom's freesheet portfolio
In Denmark, Mecom rushed out a new short-lived freesheet, Dato, at the start of the Danish freesheet war in 2006 - but as this closed in 2007, it shouldn't affect Mecom's 2008 financial results - and still has the loss making youth-oriented free Urban in its portfolio, which recently reduced its circulation to 203,000, but has merged all its content production. In Norway, the British based company has a small network of non-daily frees in Oslo; in Poland, it has Moje Miasto running on a similar model to the Norwegian frees - which leaves The Netherlands, where free newspapers comprises the biggest part of the British based company's operation. Every week its Dutch divison publishes about 8.6 million copies of free door-to-door distributed papers in addition to seven paid for titles.

However, in contrast to UK newspapers, Mecom also has remarkably high subscription rates for most of its paid for papers which must be of some comfort amid all the current advertisement gloom. From what the British company has indicated about its 2008 earnings so far, it seems Mecom is worst affected by the advertisement decline, not in The Netherlands but in Denmark and hardly at all in Poland (I'm omitting Mecom Germany here as it's not big on frees and practically sold - just need the shareholders to approve the sales agreement).

A more disturbing case
Now, it is true that companies with a strong element of free are struggling - it will certainly be interesting to see how Metro International, the world's biggest publisher of freesheets will fare in the times ahead - but rather than Mecom, I would have used Norwegian-based Schibsted as an example here.

Not only because, in contrast to Mecom, it's a market leading freesheet publisher in several big markets, such as Spain, France and Sweden (the latter in partnership with Metro) and, to a lesser extent, Eastern Europe, but because it illustrates the larger, structural problem at work so much better. In a way, Schibsted is also a much more disconcerting example.

It's freesheets, especially in places like Spain where the property market is in a dire state, are being hammered, but that's also happening to Aftenposten, Norway's newspaper of record, a daily paid for national newspaper which traditionally has relied heavily on print classifieds.

That I believe, is the bigger problem qua business models here, at least in my part of the world: we're seeing the market for print classifieds emigrate online and not necessarily to online newspapers. In contrast, Schibsted's other national Norwegian print newspaper, Verdens Gang (VG), which gets its ad revenues from brand advertisement rather than classifieds, has not, at least until new year, done as bad as Aftenposten (though if we're talking circulation decline, the relationship is reverse).

So yes, frees may be head of the queue, or "in the frontline trenches of the war," as Baily says to FT, but national and big regional dailies relying heavily on print classifieds make a good number two. And that's still only part of the story, I'll return to why I think Schibsted is such a disconcerting example in a separate post a bit later.


Axel Springer pulls out of race for Rzeczpospolita

No Polish partnership between Mecom and Axel Springer.

After months of speculations the German newspaper giant was vying for both Rzeczpospolita and Mecom Poland, it emerged yesterday that Axel Springer had not submitted a bid for the Polish state's 49 pc stake in Rzeczpospolita - where Mecom is the majority owner.

Czech publisher Respekt Media, who along with Springer was reported to be one of four bidders provided access to undertake due diligence tests, also abstained from submitting a bid, which means only two companies, United Business Entertainment (Zjednoczone Przedsiebiorstwa Rozrywkowe) and Platforma Mediowa Point Group, are still competing for the stake. The Polish Treasury is expected to announce its decision next week according to tvn24.pl (and Google Translate). A source at Axel Springer told Reuters the German group now had no interest in Rzeczpospolita.

Predictably, running a media company together with the Polish government has been a rather troublesome affair for Mecom, as it was for the previous owner Orkla Media. Among other things the former Communist state has accused the company, run by David Montgomery who was renowned for his brutal cost-cutting regime while at The Mirror, of not delivering good enough financial results. As Mecom's recent agreements to sell its German and Western Norwegian divisions are not enough in their own right to solve the  company's covenant issues, many have wagered that its Polish arm, made up of Media Regionale and the 51pc stake in Rzeczpospolita, will go next.

However, despite Montgomery pledging long term commitment to what's left of its Norwegian arm, Edda Media, when talking to employee representatives in Oslo early this month, industry sources keep telling us Mecom is actively pursuing further sales in Norway. Now, not long ago, when Norwegian media was abuzz with speculations about A-pressen or others acquiring Edda, a newswire reporter asserted all leaks media had received during this... eh... courtship had been from the prospective buyers, and, obviously, all parties have their agendas. In short, for those who emailed me asking about that Oslo meeting: I suggested upfront, based on previous such meetings, it would be interesting and confrontational - I was wrong about confrontational, both sides denied it had been, but it was certainly interesting....

Update 21-03/09, 11:50 CET: do check Krzysztof Urbanowicz' post which contains additional information and analysis, here with Google Translate if your Polish is as bad as mine.


Mecom secures another covenant test extension

I have a feeling Mecom-boss David Montgomery will have a very interesting visit to Norway next week.

After selling off its operations in North-Western Norway, the pan-European newspaper group today announced it had won a further reprieve from its lenders and now has until the end of March to get its finances back within agreed limits.

I can't imagine union reps, some of whom were rather hoping the troubled media company would sell all its Norwegian newspapers to the national newspaper group A-pressen, will take to well to the news of yet another month of uncertainty. Nor does it bode too well for Mecom's share price, down 16 per cent at the time of writing, at least in the short term.

For more thoughts on the shareprice, check this bit of analysis - it concludes that only two events would propel the SP any higher from here: (1) Further sale of assets (Polish assets are next in line, but timescale is uncertain, and (2) A covenant pass at the end of the 'extension' period - which rings true to my ears (latter via Searcher, no link available).

But, back to Montgomery's scheduled visit to Norway next week: it's a good thing he has become so used to taking abuse from Mecom journalists these last few years.

Talking to the Norwegian Journalist Union's annual convention in April 2007, he was told "I have to warn you this is a very hostile crowd, and they have been drinking 'til 4am, so this is a pretty mean bunch... Now, Norwegian journalists think you're a ruthless stranger who just rode into town to upset all that has been built over the last 60 years. How do you feel about that?"

"In the round of my career I've created more jobs than what I've destroyed," he answered then. However, I'm sure he'll be met with plenty of questions in a similar vein next week, and even though the audience will probably not have been drinking til 4am, I doubt it will be any less hostile.

(For the record: I covered this debate as a journalist, though I'd much rather have (live) blogged it, as I did with this debate, and the quotes here are previously unused ones from my private transcripts)