While newspapers go bust

FOX News Channel nearly doubled its operating income in the from the same period a year ago.

'Commenting on the results, Chairman and Chief Executive Officer Rupert Murdoch said:

“Our third quarter results directly reflect the continuing weakness of the global economic climate. Despite this tough environment, we have proven resilient in several key areas this quarter. Our Cable Network Programming segment showed remarkable growth, led by the FOX News Channel which nearly doubled its operating income over the year ago quarter. Filmed Entertainment saw an earnings increase in the same period and I am encouraged by our upcoming slate of movies this summer.'

News Corporation's newspapers and information services didn't fare so well. 

'The Newspapers and Information Services segment reported third quarter operating income of $7 million, down $209 million from the $216 million reported in the same period a year ago, primarily due to lower advertising revenues, the strengthening of the U.S. dollar against the British pound sterling and Australian dollar and restructuring charges totaling $23 million.

The U.K. newspaper group’s third quarter profit contributions declined significantly as compared to the year ago quarter in local currency terms primarily due to 21% lower advertising revenues, as well as higher marketing and production costs. Circulation revenues increased at all four mastheads during the quarter due to cover price increases.

The Australian newspaper group reported 42% lower third quarter operating income in local currency terms versus the prior year third quarter, primarily due to a 16% decline in advertising revenue reflecting lower display and classified advertising, especially in the employment and real estate sectors, and higher pension related expenses. Circulation revenues were in line with the year ago period.

Dow Jones & Company’s third quarter operating results declined from the same period a year ago, reflecting lower advertising revenue at The Wall Street Journal and lower information services revenue that more than offset reduced operating expenses. Circulation revenues increased during the quarter, primarily due to price increases at The Wall Street Journal.'

Meanwhile, down the road in Boston, the Globe reached a deal with its unions but it may not be enough to assure its survival.  New York Times Co. which bought the Globe in 1993 for $1.1 billion had threatened to shut down the Globe if unions remained unwilling to make contract concessions. Now that a deal has been reached the Times may be looking for a quick sale.

'How much more of the Globe's staff Times Co. still needs to shed will depend partly on the efficacy of other efforts. Times Co. expects to realize $18 million in savings in 2010 from the consolidation of the Globe's printing plants. Meantime the Globe recently announced plans to raise newsstand prices for daily and Sunday print editions.

There also remains the possibility that Times Co. will sell the Globe, which it purchased in 1993 for $1.1 billion, and that these moves will serve to make the property more attractive to potential buyers. So far, though, interest has been muted, and a few potential buyers have said the Globe will have to shrink dramatically before they are willing to take it on.

News of the agreement was met with a mixture of relief and anguish in the newsroom. Some employees say they fear the union leaders are being extra-secretive because the wage reductions are steeper than expected.'

I remain convinced that the crisis in the newspaper business stems in part from the overwhelming liberal bias in the newsrooms.  It makes newspapers an untrustworthy source of news.  And while the Obama administration has said there will be no bailout for newspapers, senate beneficiaries of newsroom tilt held subcommittee hearings on what to do.

They came as if to their own funeral.

Reporters from Hearst, USA Today, McClatchy, the Dallas Morning News, The Washington Post, the Washington Times and the Boston Globe -- their employers in varying stages of decline or death -- took their places at the press table for a Senate subcommittee hearing yesterday titled "The Future of Journalism."

[...]

The names of the fallen were read aloud.

"The 150-year-old Rocky Mountain News ceased publishing altogether this year," the panel's chairman, John F. Kerry (D-Mass.), said before mentioning the deaths or near-deaths of the Seattle Post-Intelligencer, the Christian Science Monitor, the Detroit Free Press and his home-state Boston Globe.

"The Albuquerque Tribune has folded in the last couple of years," said Sen. Tom Udall (D-N.M.).

"If I could just add one more to that list -- that's the Baltimore Sun, my hometown paper, in bankruptcy," offered [Sen. Ben Cardin (D-Md.)].

Both the Times and the Globe have plans to raise prices.  It will be interesting to see if anybody will be buying.  In any case it's nice to see the FOX is doing well.