Monday, December 6, 2010
Monday, December 21, 2009
MediaNews memo to staff
FROM: Dean Singleton and Jody Lodovic
SUBJECT: 2009 is almost gone. Thanks for getting us through it!
First and foremost, let us thank you for your hard work and dedication during this difficult economic period, a time particularly hard for the newspaper industry. You have been asked to do more with less, and we truly appreciate your efforts and sacrifices.
While the past three years have been particularly challenging (especially 2009) for MediaNews Group and the newspaper industry, we are proud of your performance and many accomplishments, and we are confident that our strategies will lead us and the industry into a bright future. Let us highlight just a few of your/our accomplishments during this challenging period:
- Advertising - While advertising revenue has been severely challenged, your performance has been near the top of the industry throughout 2009. For the three-month period ended September, for example, your advertising revenue declined 24% as compared to the industry decline of 28.2%. This performance was consistent with the first two quarters. Furthermore, in markets such as St. Paul, the Bay Area, and Los Angeles, we significantly outperformed other newspapers in the regions.
We have made significant progress in transforming our sales organization and have invested in new tools, such as iShare, training and laptops, to position us to meet the ever changing needs of our advertisers. Your success has been noted and is appreciated.
- Circulation - Your circulation performance is second to none. In the September ABC 6-month report, MediaNews Group had circulation growth even as the industry lost 10.6%. That increase included The Denver Post growth which came after the demise of its primary competitor, The Rocky Mountain News. However, not including Denver, the company's loss was 4.8%, still the best performance in the industry by far. This performance moved the company from number 4 to number 2, as measured by circulation.
- News - Our circulation performance would be impossible if not for the excellent news products each of your newspapers produce. There is not enough space here to comment on all the awards your newsrooms have won this year. While we, like others, have had no choice but to trim news staffs, we have tried to consolidate infrastructure to preserve reporting staff when possible. And with hard work and creativity, your newsrooms have re-invented themselves and continue to do excellent journalism. We are so proud of our outstanding editors and their dedicated staffs. And speaking of creativity, we are awed by the outstanding work you are doing online. As our traffic continues to soar, our audiences between print and online have never been larger.
- Operations - The year has brought major plant consolidation for many of our newspapers. Added to creative circulation and route consolidation and new ways of doing production, you have achieved efficiencies we never would have dreamed possible while improving the service you provide.
- Denver - We completed a significant restructuring in Denver after the closing of the Rocky Mountain News. While we were sad to see the Rocky go, we are excited about our future in Denver. The performance of the Denver Post during this transition has been nothing short of remarkable as we held most of the Rocky unduplicated circulation and operating performance continues to improve each month.
- Internet Strategy - A group from your newspapers met offsite last April to chart our digital course for the future. Since that time, several task forces have been working to put more meat on the bones. We are now in position to start implementing the strategies we developed. Step one is to install a new content management system that will serve as the foundation for our strategies. Upon completion, we will begin building new local.com and news.com websites in each of our markets. Our largest markets should be up and running by mid-2010. In addition, we are working to implement strategies to protect and monetize our content. New pay models will begin testing in some markets early next year.
- Mobile - Mobile (and other portable reading devices) represents a significant opportunity for us. Accordingly, we have engaged outside mobile expertise to help us develop our mobile strategies. We have completed phase 1 of the process and hope to have a fully mapped out mobile strategy early in 2010.
MediaNews, like many other newspaper companies, entered the current downturn with a reasonable level of debt based on historical measures. However, the current newspaper industry environment bears no resemblance to any previous newspaper downturn, and the magnitude of the structural and cyclical decline was simply unimaginable just a few years ago. Consequently, we, along with much of the industry, have more debt than is comfortable.
We have been working closely with our banks to restructure our debt and position MediaNews Group to execute its strategies and lead our newspapers into a positive future. Yes, we believe newspapers have a bright future! We are near agreement on the terms of a restructuring plan which we expect will be completed toward the end of the first quarter of 2010. Upon completion, MediaNews expects to have a manageable level of debt, and we look forward to working with each of you to take your newspapers into a changing but exciting future.
As we near the end of 2009, you may have questions regarding annual reviews, 401(k) contributions, health care benefits, and future furloughs, etc. While it is our hope and desire to reinstate Company-wide salary reviews and 401(k) contributions as soon as possible and avoid future furloughs, it is premature to make those decisions. The Company must see clear evidence of improving economic conditions before such decisions are made. We will keep all options open, including reinstatement on a phased approach. As you can imagine, these are not easy decisions. Our highest priority is positioning MediaNews Group for a bright future and preserving/protecting its most valuable asset — its employees. We will let you know as soon as those decisions are made.
Let us say again how much we appreciate your efforts. Your contributions are vital to the future success of MediaNews Group and the newspapers it publishes. We're probably biased, but we believe you all comprise the best newspaper team in the business. We're proud to work with you. Let us wish you and your family happy and healthy holidays and a happy new year!
Friday, July 3, 2009
Memo from Kevin Keane
I had always held out hope that business would bounce back quickly enough that we would be able to avoid further staff reductions this fiscal year. Unfortunately whatever rebound there is in this economy hasn't reached the advertising market yet. We project revenues will continue their skid well into next year, which means expenses will need to come down accordingly.
Today we're announcing that we will be eliminating 18 full-time positions in the newsroom (managers and rank and file employees) by mid summer. We will notify the union today as well. Employees let go will receive a week's salary for each year worked, with a minimum of two weeks and a maximum of 12. The company will also pay the employer portion of Cobra benefits for health care for three months.
It goes without saying that this deep a cut on top of previous reductions will have a lasting impact on our newspapers and Web sites. Our preference would be to hold staffing at its current level until the revenue bottomed out, but we can't delay if we're to get through this downturn.
Before we finalize these cuts, however, we're asking for volunteers to step forward. These volunteers will receive an additional severance of up to eight weeks salary on top of the severance mentioned above - one week's pay for each year worked, up to eight years. Under the volunteer program, a 12-year employee would receive the maximum 20-week severance.
Management reserves the right to accept or reject a voluntary offer, depending on how vital a position is to the news organization. Every accepted offer brings down the involuntary layoff number by one. If we accept 18 volunteers, we'll eliminate the need for the layoff altogether. Anyone interested in the voluntary program should contact Belinda Byrd in HR by Wednesday, July 8 at 5 p.m.
Any questions, feel free to drop me a line.
Kevin
Tuesday, May 12, 2009
Memo from Dean Singleton and Jody Lodovic
To: MediaNews Group Employees
From: Dean Singleton
Jody Lodovic
Re: Interactive Strategic Summit
Two weeks ago, 22 executives from across the company, including Publishers, Editors, and Interactive leaders, met to discuss MediaNews Group’s interactive strategy. While our websites attract a significant audience and drive considerable page views, we face three daunting challenges that needed to be addressed. First, we continue to do an injustice to our print subscribers and create perceptions that our content has no value by putting all of our print content online for free. Not only does this erode our print circulation, it devalues the core of our business - the great local journalism we (and only we) produce on a daily basis. Second, our interactive revenue growth has slowed because it has been too closely tied to our print classified business, which has suffered with the advent of Craigslist and other free online classified opportunities. Finally, we are not significantly extending the reach of our audience, as our online products too closely resemble the newspaper, and thus fail to meaningfully reach the next generation of readers.
This interactive summit was meant to address these issues head-on; to build a strategic plan that places a value on our content, protects our core print business, extends the reach of our audience, and creates new revenue opportunities online. We cannot continue to give all of our content away for free; we must consider, create and deploy new products and sites that both decouple our interactive revenue from our classified business and offer a compelling new experience for a younger (non-newspaper buying) demographic. From this conference, we have built consensus on a three pronged approach to enhance our business moving forward:
· We will begin to move away from putting all of our newspaper content online for free. Instead, we will explore a variety of premium offerings that apply real value to our print content. We are not trying to invent new premium products, but instead tell our existing print readers that what they are buying has real value, and to our online audience (who don’t buy the print edition), that if you want access to all online content, you are going to have to register, and/or pay. If a non-subscriber wants the newspaper content in its entirety online, they will be directed to some sort of registration or pay vehicle (and if they are a print subscriber, they will have full access at no charge). To be clear, the brand value proposition to the consumer is that the newspaper is a product, whether in print or online, which must be paid for.
· We will begin differentiating our sites from the newspaper and focus on strategies designed to reach younger audiences and extend our reach. The websites, newspaper.com as we call them now, will become a different product. This new site, which we have been calling news.com, will be a regional news site that is actively managed to present breaking news. It will continue to draw a content from the newspaper (but probably in a more abbreviated form), but will also have user-generated content, community involvement and third party content. News.com will continue to serve our existing audience, which spends a lot of time on our sites, and drive significant traffic. They like and depend on our sites for their national and local news. We must not alienate them as we strive to expand our audience and attract younger people and non newspaper subscribers. Obviously, our sites must draw upon the content of the newspaper, but the presentation of that content will be different. News.com will be an entry page to new content offerings, local retail advertising opportunities and premium offerings.
· We will build a new local utility site (Local.com), which is an ecosystem of local information, resources, user content, shopping guides, and marketplaces. This site will be focused on a younger audience as well as other targeted audiences based on demographics which are attractive to our current and potential advertisers. We have the advantage of being the trusted source of for news and information in our communities and have a large base of traffic to feed into Local.com. Local.com will leverage existing newspaper content and existing traffic, and we will add new content (such as Entertainment/Lifestyle) to target a younger audience. Central to this local site will be an aggregation of city or community sites (in the YourHub model) and marketplaces. Local.com will be the ultimate site for people to find stuff, do stuff, and get stuff done in their local market.
We will initially focus on five or six niche vertical content channels to support targeted advertising opportunities (many of which have reverse publishing opportunities). We will build these out with a common template, for ease of execution and maintenance, and deploy across the company.
New tiered circulation pricing strategies will be considered as part of, and tied to, the above online strategies. Such pricing strategies will be designed to maximize revenue, improve overall profitability, add value to full priced, seven day delivery, subscriptions, and reinforce the value for online content.
In order to execute this vision, we have agreed that these new strategies will be done with a template approach, using a menu of common tools and vendors. We will take advantage of the size of MNG to leverage enterprise solutions and build off a common platform that allows for fast implementation and a companywide rollout.
We will form four taskforces (News, local, premium and technology) to drive these ideas to market. They will focus on content, sales, marketing, research and build a business plan. We will also form a technical taskforce to evaluate the needs of a new content management system.
We will keep you posted periodically as we develop these new products and as this strategy evolves. Our online business is a critical piece of the future growth of this company and is integral to growing and targeting new audiences. Our newspapers continue to attract the largest and most desirable audiences in our local markets, but we feel strongly that developing new and targeted audiences online will position us to deliver the most comprehensive and effective solutions for our advertisers.
Monday, January 26, 2009
Memo from Steve Hunt
As you know, the copy desk from the San Bernardino Sun and the Inland Valley Daily Bulletin will be joining our copy desk on Monday, Jan. 26 as we create an Inland Division Universal Desk. This desk will be responsible for copy editing every story and designing and paginating every page in our three newspapers, as well as the Sun and the Bulletin. It is an enormous task, one that requires incredible cooperation and planning. That cooperation will involve every reporter and editor on our city desk, features desk, business desk and sports desk.
One of the challenges in this venture is that three papers now share the same off-the-floor deadlines. The Whittier Daily News, Sun and Bulletin all are due off the floor at 10 p.m. Experience tells us that won't work very well when we join our desks into one. So, we're going to adjust two of those deadlines to give our designers and copy editors enough of a gap to ensure we make deadline for all three papers every night. Beginning Jan. 26, the deadline for the Sun will be 9:30 p.m. and the deadline for Whittier will be 9:45 p.m. The Bulletin deadline will remain 10 p.m. Pasadena's deadline will remain 10:45 p.m., while Tribune's will change to 11:30 p.m.
But those aren't the only changes. Because many of our copy editors and designers will be working 1:30 p.m. to 10 p.m. shifts, we also are going to change the copy deadlines for reporters at all five papers. Beginning Monday, Jan. 19, all inside A section copy for the three SGVN papers will be due at 1:30 p.m. A1 copy for Whittier and Pasadena will be due at 5 p.m., while A1 copy for the Tribune will be due at 5:30 p.m. This will provide us with the necessary copy flow so copy editors and designers can meet their page flow deadlines. For those of you who have never worked on a copy desk, what this does is prevent a logjam of pages on deadline, which would inevitably lead to late press starts and late delivery of papers. Of course, we realize there will be live and late stories from time to time. Special allowances will be made for those, as well as breaking news. But the hope here is to set up a system that provides for greater copy flow earlier in the day to ensure every paper in the Inland Division makes deadline and every reader gets his or her paper on time.
Naturally, those of you making photo assignments will want to try to line those up as early as you can too. We have more leeway on A1 than inside the A section, but it greatly helps designers to have art early in their shifts. Again, exceptions will be made for live events and breaking news.
Also next week, we will have one-hour earlier deadlines on Tuesday because of the inauguration. Circulation plans to print several thousand extra copies to sell on the street and wants to make sure those papers get to delivery people earlier. So on Tuesday night, Whittier's deadline is 9 p.m., Pasadena's is 9:45 p.m. and Tribune's is 10:45 p.m. For that night only, we'll want normal inside A copy by 2 p.m. and everything else by 4 p.m.
Thanks very much for your help. And while I am at it, I will echo Frank's comments about the good work you have all done recently. The Rose, our Jan. 2 parade wrap and the other special sections we've done recently were exceptional. But I am most proud that we had incredibly strong papers throughout that busy period and have kept that going. These are trying times for newspapers and most other businesses. But I am so proud of all of you and the papers we publish every day.
Thanks very much,
Steve
Thursday, January 15, 2009
Memo from Jim Janiga
Today our company is announcing the suspension of all annual merit increases to be effective February 1, 2009. We are not certain how long this suspension will last but are hopeful that the coming 2010 Fiscal Year operating budget will allow the suspension to be lifted. The new fiscal year begins July 1, 2009. No guarantees but that is our goal. In the meantime, all merit increases earned and due before February 1, 2009 will be processed.
Under this suspension all increases earned and due on and after February 1, will be suspended for at least five months. For example, and based on that anticipated time period, if you are due a merit increase this coming March 2009, that merit increase will be delayed five months to August 2009. If you just receive a merit increase this past December 2008, your next merit increase would be due May 2010. Your Human Resources representatives can assist with any questions or concerns you may have.
Suspending merit increases will not reduce our current expenses but it does help us contain our expenses for a period of time. So obviously more needs to be considered and implemented, if warranted. To this end we are asking everyone to share with us any suggestions you might have regarding cuts in our operating expenses that are measurable, timely and sensible; cuts that can help us avoid more layoffs and are cuts you may be willing to accept. We need your input.
Unfortunately we cannot promise there will not be layoffs in the future but we should always endeavor to do what we can to prevent as many as possible. Obviously, growing revenue is our best option but until revenue streams stabilize and grow, reducing our expenses will continue to be a painful but necessary focus. Some early suggestions have included mandatory furloughs, cuts in our vacation benefits, pay cuts (temporary and/or permanent), reduced work schedules, allowing volunteer reduction in hours while retaining most full-time benefits, and more.
No one has THE answer and no one should naively speculate what others may not be willing to do to help save a co-worker's job... even where there are no guarantees. We would be foolish not to ask for your support, ideas, focus and commitment.
Everyone needs to be engaged. We need to support each other. We can and will make a difference. Times are tough but we are tougher. Your ideas are important to all of us.
Thank you for your attention and thank you for your continuing input and loyalty.
Sincerely,
Jim Janiga
Senior Vice President - Human Resources

