Here’a a Q&A wth Gariy Pruitt from a site called Examiner.com with various city locations. There is no informatrion on the site to explain exactly what it is or where it comes from. The piece sounds a bit like a PR release, but here’s the post by Patty Reinart
Gary Pruitt, chairman, president and CEO of The McClatchy Co., made headlines in 2006 when his company acquired Knight Ridder to become the nation’s second-largest newspaper chain. McClatchy’s stock price has plunged, but Pruitt says he has no regrets about the deal and believes newspapers have a strong future as they reinvent themselves as news information companies. As newspaper editors and executives meet in Washington this week, Pruitt will take over as chairman of the Newspaper Association of America.
Q The newspaper industry is experiencing the worst drop in advertising revenue in 50 years. Circulation numbers continue to fall as more people get their news from the Internet. Are newspapers dying?
A It is indeed a painful transition, but newspapers are not taking it lying down. While circulation is declining over time, the newspaper still has the biggest reach of any single medium in the local market. Most newspapers operate the most popular local Internet site. They also publish specialty and niche and direct mail products. While print circulation slowly declines, total audience is growing, and that remains the best predictor of future success.
Q Should newspapers continue to serve a broad audience or should they focus on niche publications and Web sites to target specific readers and advertisers?
A I think it’s important for newspapers to remain a mass medium. We are still reaching more people in the market than other media outlets. That’s important for the business model and it’s important in terms of public service. Very few institutions can bring a common base of knowledge to an audience the way a newspaper can. We also have to be a leading Internet company. We have to target content and advertising in online products and print products so advertisers can choose to reach a mass audience or a targeted audience.
Q Can newspapers move to the Internet and still make money?
A Yes, I think so. Right now Internet operations only represent 10 percent of newspapers’ advertising revenue, but they are growing. They operate at a higher profit margin because delivery is cheaper; there’s no paper. So revenues needn’t equalize, but we will need to grow Internet revenue strongly and quickly.
Q Do you expect newsrooms to downsize even further? How has McClatchy avoided newsroom layoffs?
A I expect there will be more cost-cutting industrywide. At McClatchy, we often think about trying to allocate resources in those areas that drive quality and performance most. As a result, we try to maintain ad sales capabilities and our ability to produce quality journalism. That doesn’t mean we don’t have cuts in the newsroom or other areas. But we do our best to make sure we keep those areas resourced in a way to continue to produce quality news.
Q What changes do you see coming in the next 10 years in the way newspapers operate?
A I think you will see newspapers focus on their core capabilities most — gathering and reporting of news, especially local news, and selling of advertising. Some of the other areas of their operations may be contracted for or outsourced over time. There will be a much greater focus on growing online and digital products — not just the Internet, but also digital delivery to cell phones and mobile devices.
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