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Michael Hoffman
POSTED BY
Michael Hoffman
FEB 5, 2008
New York Times Deathwatch

I wrote recently about the decline of newspapers and the rise of the web. Marc Andreessen, the founder of Netscape, Ning and an internet thinker (and billionaire), wrote a post today on his blog called Inaugurating the New York Times Deathwatch.

Reading it you get the sense that these folks just won’t face the music. Their business model is near death and they better move faster to preserve whatever value they still have.

He shows vividly how the New York Times business has eroded, how their ad revenues are way down, circulation is down, etc. He makes fun of The Boston Globe’s (owned by the NY Times) decision to raise prices:

“When you have an obsolete, inconvenient physical product that nobody wants in an era of universal online access, the appropriate strategy is clearly to raise the price.”

He says “Sometimes it’s darkest right before it’s pitch black.”

The punchline is this:

Well, given that the Internet is the central force dismantling the company’s business, I’m sure that by now they’ve stocked their board with noted Internet experts. Let’s see:

* Brenda C. Barnes — CEO of Sara Lee; noted snack cake expert

* Raul E. Cesan — former CEO of Schering-Plough; noted Levitra expert

* Daniel H. Cohen — president of DeepSee LLC, “an oceanic exploration and submarine leasing company”; noted Jacques Cousteau expert

* Lynn G. Dolnick — former head of exhibits for the National Zoologic Park in Washington DC; noted marsupial expert

* Michael Golden — current publisher of the International Herald Tribune; former head of the company’s Women’s Publishing Division; noted sundress expert

* William E. Kennard — former head of the FCC; noted “seven dirty words” expert

* James M. Kilts — former CEO of Gillette; noted smooth, smooth shave expert; prior to that, unindicted coconspirator at Philip Morris; noted expert on your grandfather’s hacking cough

* David E. Liddle — here I have to take a pause as I actually know this one; based on what’s happening at the company, it could be reasonably asked whether he’s actually attending the board meetings.

* Ellen R. Marram — former CEO of Nabisco; noted Oreo expert. Oh, wait, she actually ran an Internet company: “From 1999 until 2000, Ms. Marram was president and chief executive officer of efdex Inc. (the Electronic Food & Drink Exchange), an Internet-based commodities exchange for the food and beverage industry.” Ooh. I wonder if that ended well.

* Thomas Middelhoff — former CEO of Bertelsmann; noted expert on complicated family politics — well, that’s probably coming in handy…

* Janet L. Robinson — current CEO of the New York Times Company; noted expert on horrific business implosions

* Doreen A. Toben — CFO of Verizon; noted 30-year debenture expert

* And finally, Arthur O. Sulzberger, Jr. — the Big Kahuna — the Man — the Guy In Charge — the chairman and scion — the dude with the cojones to actually defend Judy Miller. Not noted Internet expert.

So, if you want to issue bonds to pay for FCC-approved snack cake manufacturing in a submarine on display at a national park by a sundress-wearing cigarette-puffing Levitra-popping Judy Miller, you’re pretty much set.

Go team!

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4 Comments     comment
  • Michael P. Saunders

    Gentlemen:
    So, I read the above “blog” and once again I see the dot com generation has bought in to the strategy of trying to discredit a worthy element in our world by decrying it relevance, etc. So, allow me a brief rebuttal. I, for one – and we are many – still prefer the written page of print and, while I do scan several newspapers daily, I am more apt to l;ook at a print edition that a screen.
    And as to credibility, I suggest the authors of the above take a a more critical look around in cyberspace. There is as much, if not more misrepresentation of events, strategic deleting of facts and reliance on hear say ( closer to tabloid journalism ) presented to the public shown on line. So, when I want to relax and deal with the world on my terms and at my pace, I sit back with my coffee, my pipe and my New York Times – all the news that’s fit to print. And I can be anywhere, not having to rely on outlets or wifi locations!

    11 Feb 2008
  • Michael Hoffman

    Michael, thank you for your reply. I also like to curl up with my paper and I think it will be a while before it is totally gone. But, there is simply no escaping the reality that the economics of the business have changed so substantially that it is now unsustainable.

    By the time your newspaper arrives, all the news that’s fit to print was already printed on their website. You can — and I have — read the entire NY Times online the night before. You get the paper in the morning feeling that it’s old news. As the technology for display improves, and broadband becomes truly ubiquitous, we will start to see the newsprint go away. Not to mention the environmental issues.

    People also loved the buggy whip, but times change.

    11 Feb 2008
  • Michael P. Saunders

    Michael , Hoffman that is. I haven’t slipped to the point of commenting to myself, yet!
    Yes, I appreciate that times are changing. I didn’t spend years gathering crowds to hear my rendition of the Dylan classic for naught, I hope. So, I accept your observations as true and yes, I admit I can scan lots of news sources quickly on line. However, there is still that old timey solice in that pipe and paper -no apologies for this image to which I must be true.
    Funny, I often wave a pencil in front of my techy friends, declaring that some day they will all need one again. Didn’t the world of the Blackberry take a coffee break the other day ? So, we shall see. In the meantime, enjoy your screen and I, my print.

    14 Feb 2008
  • Yahoouj

    Really good work about this website was done. Keep trying more – thanks!

    23 Feb 2010

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