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Peter Bruce

brucep@bdfm.co.za

THE THICK END OF THE WEDGE

Published: 2009/09/14 06:54:23 AM

SO THERE’s this guy at First National Bank who writes the occasional e-mail to staff called “On Michael J’s mind...” (I suspect he’s the bank’s affable CE Michael Jordaan) who sent out the following e-mail to his staff the week before last. Its headline is “Do we really need newspapers?”

“No this is not another cost-cutting idea,” he says. “All over the world the sale of newspapers is declining. Many daily newspapers are going out of business. Finally the internet with its online, near real-time content is winning. It’s more convenient to click on an article that interests you than to page through a paper. And it’s great to read a story as it’s breaking rather than to wait until the next day.

“Recently a 15- year-old made the front page of the Financial Times on account of a research report he wrote for an investment bank. In the report he concluded that consumers from his generation wouldn’t ever consider buying a newspaper. Quite ironic that the report even made it into the FT!

“Did you know that FNB spends more than R1m per year to subscribe to newspapers and have them delivered to our colleagues. Yet all the news is available online and the paper costs trees. So we (the FNB Exco) think we should simply stop subscribing to papers. Do you agree? Regards, Michael.”

This brings on my palpitations. First, the environment. Trees used to make paper are grown for this purpose. While they are in the ground, they produce oxygen. If there was no market for them, why would anyone plant them? No one plunders natural forests to make paper. They are plundered to make long boardroom tables in banks.

There is nothing “ironic” about the 15-year- old’s story making it into the FT. Printing interesting facts and interpreting them – rather than merely reporting self-serving statistics about the death of inconvenient rivals — is what good newspapers do as a matter of course. That boy will be an FT subscriber by the time he is 21.

Newspaper sales are not declining “all over the world”. They may be in the US and Europe. Everywhere else they are growing. In the last year by almost 3% . Yes, some daily newspapers are going out of business. So far about, gosh, 12! All in the US and all because the global crisis caught them overgeared. How many banks have gone to the wall in the same time? By the way, if this memo is not a cost- cutting idea, why remind readers how much the bank is spending on subscriptions?

But the worst part of the e-mail is this : “yet all the news is available online.” Of course it is but how, Michael J, did it get there? I’ll tell you. It was written and edited by journalists who earn salaries working for newspapers.

You can be indifferent to the future of newspapers but not about journalism. No right-thinking South African should be. Michael J will remember it was newspapers which came to FNB’s defence a few years ago when it dared to stand up for its customers and organised a crime petition to the then president, who didn’t take it well.

Integrity and courage and accuracy in journalism are all oxygen to a democracy and I know of no other way of sustaining it today, other than in a healthy newspaper industry. If you do, Michael J, I hope you are able to come up with suggestions more helpful than a R1m knife in journalism’s back.

I GROVEL at the feet of Peter de Villiers. That was quite brilliant on Saturday and besting the All Blacks three in a row makes us without question the best rugby team in the world. The coach still gives me the willies though when he makes his substitutions at the end of the game — opponents put more points past us when the first team begins to come off than at any other time in the game. Is it really necessary to scare us like that, Peter? I already have a condition.

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By: The Ethical Induna On: Sep 14 2009 3:34PM
Peter is so right about newspaper future. In the early 80's people told me the guitar was dead as keyboard's and computers dominated. Yeah, right.
By: hilly1963 On: Sep 14 2009 4:13PM
I would say this article is a defence of journalism by journalists, not to be taken too serious then! lol
By: The Ethical Induna On: Sep 14 2009 10:45AM
FNB is giving money away for FREE !! Tell all your friends. The CEO believes if news is free - then it must be good.
By: adamwelz On: Sep 14 2009 11:09PM
Peter 1) Alien trees grown for paper in SA are hugely environmentally-destructive. They chew up billions of litres of water and have destroyed fragile habitats all over South Africa. Just because they have been grown for the purpose of making newspapers does not make them enviro-friendly. 2) There have been several studies on the relative enviro impact of reading news on paper vs online. The results are not straightforward, but some indicate that reading an entire newspapers-worth of content online actually releases more greenhouse gas than reading it on paper. If you read only one or two stories in a publication, it's better for the environment to read them online rather than buying the whole dead-tree version. Both you and FNB could benefit by reading some of these studies and researching their nuances. 3) That said, decent journalism needs all the cash it can get, and it would be a helluva pity if FNB were to cut off its cash injection of R1 million p.a. into the SA media. We are sitting on the edge of several environmental crises in SA and the world, and those very few SA journos that have any kind of in-depth academic background in ecology and know how to ask the right questions are not being supported by SA newspapers to do the sort of research and writing that the country needs. SA media coverage of several very important stories -- water and energy, for example -- has been sadly superficial and fragmented. I have had to leave SA to source funding for research into SA enviro stories, and other qualified people I know have left the media entirely. Best Adam Welz
By: The Ethical Induna On: Sep 14 2009 11:17AM
By the way - newspapers have got themselves in this trouble (in South Africa) by giving the ruling party and business an easy ride over the past few years. Schmoozing always ends badly, boys and girls.
By: em.sloane On: Sep 15 2009 6:18AM
I think the banker has vocalised what many corporates and individuals are thinking and doing anyway. Clearly newspapers have to re-adjust their business models. Environmental issues aside, the massive growth in online access has damaged newspapers all around the world because the format is the perfect channel to access up to date information and news cost effectively. Forward thinking international media groups are embracing the challenge of online positively. Even major television networks are finding ways to use it to their advantage and not lose eyeballs on screen, like CNN. Clearly, Business Day and other local newspaper owners need to innovate and develop a business model around these challenges by developing packages that encourage corporates to pay for good news, but offered in their preferred format. The world has changed and to stay in game you too will have to!
 
 


 
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