The mysterious Wall Street Journal

As the Wall Street Journal staffs up to broaden its appeal, bemuse­ment here over the WSJ plan.

The focus on Amer­ica seems odd. Is the U.S. cry­ing out for a national news­pa­per? Won’t widen­ing the WSJ offer­ing neces­sar­ily reduce the busi­ness focus?

After all if you want to lose money with a con­ser­vat­ive national daily — why not try the Wash­ing­ton Times? Maybe I’m miss­ing something…

TV News: faking it in the good old days

I stumbled upon this TV news “fakery” clas­sic from the early 1960s, which comes care of CBS vet­eran Daniel Schorr’s mem­oir, Clear­ing The Air. Schorr is lunch­ing his boss, CBS chief, Bill Paley. Con­tinue read­ing

How to argue in circles

Writing in the FT, Pablo Eis­en­berg provides a great example of fuzzy think­ing on journ­al­ism. And also a les­son in how to write in circles.

For a dec­ade, the print media have been the only effect­ive mech­an­ism for keep­ing non-profit organ­isa­tions open and account­able. The out­stand­ing invest­ig­at­ive work of the Boston Globe, the Wash­ing­ton Post, the Los Angeles Times, the New York Times and many other papers has uncovered hun­dreds of found­a­tions and char­it­ies guilty of inap­pro­pri­ate expendit­ure, cor­rup­tion, self-dealing, con­flicts of interest and excess­ive compensation.

This cov­er­age has had impress­ive res­ults: con­gres­sional hear­ings and legis­lat­ive activ­ity; more effect­ive fed­eral and state reg­u­la­tions; increased scru­tiny by state attorneys-general; bet­ter audit­ing and enforce­ment pro­ced­ures by the Internal Rev­enue Ser­vice; and more self-reform efforts by non-profit organisations.

Yet without con­tin­ued media focus on the non-profit sec­tor, char­it­ies and found­a­tions are likely to revert to old habits. Scand­als, inap­pro­pri­ate beha­viour and excess­ive compens­ation are still a regret­table part of our non-profit world.

So what has driven news­pa­pers away from such invest­ig­a­tions, accord­ing to Eis­en­berg? Why the pur­suit of profit.

Twenty years ago a news­pa­per was happy to make a profit of 10–15 per cent. Even though daily news­pa­pers today earn between 10 and 20 per cent in pre-tax profits, that is no longer good enough for Wall Street and investors, who demand much more, no mat­ter what the cost to journ­al­istic integ­rity. Busi­ness interests have trumped the pub­lic interest.

Is there any hope for a resur­gence of high-quality, mission-oriented journ­al­ism? Non-profit own­er­ship of select daily news­pa­pers could offer a prom­ising new begin­ning, and phil­an­thropy could make it happen.

I like it. Non-profit own­er­ship as the solu­tion for news­pa­pers fail­ing to provide invest­ig­at­ive scru­tiny of non-profits? A com­plete circle. (And have you noticed how things were always bet­ter twenty years ago? There must a twenty year rule: another post, another time)

Roger Ailes: Fox News caused the run-off in Florida

Roger Ailes gave an inter­view to mem­bers of Britain’s House of Lords Com­mu­nic­a­tions select com­mit­tee. You can read it below:


Minute of the meet­ing with Roger Ailes, Chair­man and CEO, Fox News
17 Septem­ber, New York

24. The Com­mit­tee met with Mr Ailes accom­pan­ied by his col­leagues David Rhodes, Vice Pres­id­ent of Fox News, John Moody, Exec­ut­ive Vice Pres­id­ent of News and John Stack, Vice Pres­id­ent of Newsgathering.

Polit­ical bal­ance
25. The Com­mit­tee were told that Fox News was launched because Roger Ailes and Rupert Mur­doch believed that there was space in the mar­ket for “fair and bal­anced” news. They believed that most news report­ing has a left of centre bias. The Com­mit­tee heard from other wit­nesses that Fox News provides a right of centre product. How­ever, Mr Ailes vig­or­ously denied this. He stated that the chan­nel has no par­tic­u­lar polit­ical agenda and an effort is made to bal­ance the stor­ies they pro­duce, although he also said that on some days the chan­nel acts as a bal­ance to the rest of the media.

26. Mr Ailes sug­ges­ted that the lib­eral bias of other news pro­viders could be seen through the cov­er­age of issues such as the events at Abu Ghraib prison in Iraq in 2005. He believed that papers such as the New York Times covered the US’s troubles at the prison even when it was not news, noth­ing new had happened. Fox News only men­tioned the prison when new devel­op­ments occurred.

27. Fox News never endorses any polit­ical party or can­did­ate. Mr Ailes stated that they do not shy away from stor­ies dam­aging to the Repub­lican Party. Just before the 2000 pres­id­en­tial elec­tion they ran a story that they knew would dam­age George W Bush’s cam­paign. The Bush cam­paign even asked them to hold the story. They were the only news organ­isa­tion to get hold of the story (which related to Bush hav­ing been caught driv­ing under the influ­ence of alco­hol 16 years pre­vi­ously). There­fore they decided it was news worthy and ran it. Fol­low­ing their cov­er­age Bush dropped by five points and Ailes believed that Fox News was prob­ably respons­ible for the run off in Florida.

28. Mr Ailes believed that Fox News’ “bal­anced” approach is crit­ical to the channel’s suc­cess and that if any other news chan­nel were to move away from the left then Fox would have stiff competition.

Rat­ings
29. When it was launched Fox News’ tar­get was to match CNN’s rat­ings fig­ures within five years. In fact they caught up with CNN in four years. It took five years of losses and spend­ing of over $900 mil­lion to estab­lish the chan­nel. It has there­fore been cru­cial to have the back­ing of a large com­pany like News Corp.

30. Mr Ailes stated that the suc­cess of Fox News was down to a num­ber of factors: it is a cable chan­nel so draws income from both advert­ising and sub­scrip­tion; it provides news when it is required and is not forced into an inflex­ible model of provid­ing even­ing news at 6.30 and it provides “more of what the con­sumer wants”.

Soft vs hard news
31. Mr Ailes explained that Fox News bal­ance what the audi­ence is look­ing for with what it is import­ant for them to know “the appeal of the story plays some role in its prom­in­ence”. The emphasis is on domestic news and not on for­eign cov­er­age. Fox News is not inter­ested in “the fail­ure of the Rus­sian wheat har­vest”. They have exper­i­mented with lim­it­ing their cov­er­age of soft news stor­ies. A case in point was the death of Anna Nicole Smith (Smith was a page three model who mar­ried a very eld­erly oil baron). Fox News exper­i­mented by not run­ning this story hour-after– hour like the other chan­nels. How­ever, each time they took it off air CNN beat them in the rat­ings. Mr Ailes explained that some­times they would like to walk away from a story, but it is dif­fi­cult to do so. He was clear that he has to respond to mar­ket pres­sures and that the chan­nel exists “in a rat­ings society”.

The inter­net
32. The Fox News exec­ut­ives all agreed that a cable news chan­nel had to invest in a cor­res­pond­ing inter­net site. It is hard to work out the rela­tion­ship between the web site and the chan­nel – should one plat­form push view­ers to the other? It is also hard to bal­ance the needs of young and old news audi­ences. Dif­fer­ent age groups have dif­fer­ent per­form­ance meas­ures that they use to judge which news pro­vider is best.

Older audi­ences believe in the import­ance of thor­ough research and accur­ate report­ing, younger audi­ences want stor­ies avail­able as they break, before there has been time for thor­ough research. If a story that is break­ing is not imme­di­ately on the web site young vis­it­ors will never return. The pref­er­ence for imme­di­acy over accur­acy is illus­trated by the pop­ular­ity of sites such as Wiki­pe­dia. Mr Ailes believed that it is cru­cial to edu­cate young people to crit­ic­ally eval­u­ate news sources.