Just a week after one of its flagship papers - the Dallas Morning News – laid off 38 journalists, and just a couple weeks after also laying off several in other departments, A.H. Belo announced yesterday that it had added two more members to its board, bringing the total members to eight.
Listen, I’m sure John Beckert and Nicole Small are great people. But after another round of layoffs that did not include any upper management, you have to wonder if A.H.B. even actually cares that perhaps the bottom line would be better off with less at the top, and more at the bottom to create a better, more robust product.
20 comments
John Beckert has alot of money. Maybe that is the reason?
Eight people isn’t crazy. And Nicole Small from the Museum of Nature and Science is huge asset. The company and its stockholders are fortunate to have her.
DMN management has told the newsroom folks to expect more layoffs in a year to 18 months, sources say.
Bethany, there’s a fallacy in the connection you’re making. The function of a board is to guide the company strategically. Belo is steering through very rough shoals, as we all know. The purpose of adding two very smart people to the board, I would think, is to help figure out how to preserve jobs while reconstituting how to deliver the news and serve the market under new conditions.
Smart, or rich, are they knowledgeable enough about the future of journalism to help guide the ship? Or was it a pick based on influence networking?
They could have been selected because they are supportive of the current board, in which case, what change could they enact that couldn’t have been done with the previous board? What happens if part of the old board spurns their suggestions – do they have enough other board members support to overrule?
I would think, that it would be easier to enact change within the corporation with a larger board, but it all depends on how badly they really want to change. I continue to hope.
At least now you know that management thinks the same everywhere.
That said, I have less problem with adding board members than the fact that no management jobs were lost when laying off 38 journalists.
@ Wick Allison
Bahahhaaaaahaaaaahhaaaabahaaabahhhhaaaaaaa!
I’m not saying they need good people to help steer, but I’m also hearing from my friends who still have jobs at the DMN – who feel like the timing of the announcement could’ve been better, and that are being asked to take on much more. To them – all very smart people, too – it feels like once again, AHB would rather be top heavy than talent rich.
@ Bethany: These aren’t new executives lolling around in their suits fiddling with spreadsheets, these are board members. @Borbygormus: Does anybody know about “the future of journalism”? If you do, please call me. @Blakeley Beth: Exactly. Which is why I’m now out of here.
@Wick. Best writing wins, right? That’s why I read D’s product anyhow.
Competition from a rival newspaper such as the Dallas Times Herald served this city far better than the heartfelt promise of Belo. D magazine is admirably acting as the only other voice. Admirably, that is if they are not acting as another media tool for Belo. It is so very dangerous for a metropolis like Dallas to operate as a one newspaper town. Holy Batman! Can anyone say Gotham?
Regarding the initial Wick comment: These people haven’t been steering the paper THROUGH rough shoals, they’ve been steering it TOWARD rough shoals. Check the company record for keen management decisions, check assorted investigations, check the happy exchanges of stock at Christmas…But most of all, consider whether management lost sight of the mission and, then, sacrificed the missionaries. Ain’t nobody hurtin’ above a certain level at that “ship.”
Bethany, Wick’s comment obviously took you aback and may have left others like me a bit confused as well.
Maybe you can help us all by following the money trail and explaining to us on a very basic level where A.H. Belo funds flowed both before the staff layoffs and after the board additions.
@Borborygmus — I had a dog once with that condition, so your name made me howl!
Thanks!
I think part of the issue that, on average (according to SEC filings) AH Belo directors are paid $123,400 in cash and stock to serve on the board. So, the company added roughly $250,000 in executive salary to the payroll while at the same time laying off rank and file in order to cut costs.
Are the two moves related? Probably not, but it still …
I don’t know anything about much, my spouse would happily confirm that. But when you have a format, like a popular group of blogs, in its own way they’ve become a separate source (from the paper product) on its own. And because it’s like a long, unending roll of paper, just like your paper product every square inch has potential for revenue. With far less in hard production costs and distribution (I know, I know, duh).
The need for good advertising outlets has not changed for the ad buyer. But the expansion of a new competitive internet media environment (supply) combined with the recessionary economy (demand) is forcing this industry, like so many others, to bring down their rates or reduce their quantities spent. Which is OK, if you can increase the quantity of ads in some other manner to offset the lower rates. And if you can keep the quality of the writing high to keep readership interested in returning (Better than Benedryl, right?)
Every square inch should be considered sellable in some manner. There are headline banners and sidebar advertisements, but recently on other blogs there’s been more mid-story insertions. (Yeah, why not?)
In the old days of “new” media such as radio and TV, there used to be partnering content with sponsors or underwriters. Kind of like the “sponsored” posts you occasionally do for charities. I guess today we would call it naming rights. How about “What to do in Dallas brought to you by ____.” (Fill in your own blank.)
Some of it can tie in with providing your online readers with a real service. For example, someone reads a restaurant review and wants to go to make a reservation, what about an OpenTable link. Yelp provides the link now, and I would doubt that they do so without getting a cut from OpenTable. (Some call it a conflict, others call it survival).
So consider the source, I know very little about publishing. I do however really applaude your experiment to keep the cover story off the internet. Make them pay for the best stuff. But you also have opportunities to give the smaller advertisers affordable options at the same time as increasing your total revenue. (And have a nice day.)
I forgot one thing. The dimension of time is added to a blog, unlike paper. I love RealPoints, but I wonder sometimes if those Munsch Hardt banner ads couldn’t be changed to one that flips through multiple advertisers (up to say 5 or 6?) using the same exact space. You cut the price by 1/3, but now have (5 or 6) times the advertisers. The advertisers trades heavy density for something slightly lighter but also at a lower cost. (I think.)
Tim – may I recommend that your writing interns go through some sort of finance 101 training?
Now Bethany that would make too much sense and never work. How dare you use common sense when trying to solve such issues. Things are never that easy!We all know that the more board members a company has the better off they are. Silly rabbit board members are for kids.
Stalker!