
STAR-CROSSED NEWSROOMS
A
flurry of cutbacks engulfs the local TV news business
Anyone who's been in the television news business for
a decade or more has seen it before. A tough economy always means
cutbacks, so it wasn't a surprise when the axe fell at stations across
the country this spring. But the buyouts and layoffs this time around
signal something more than a predictable reaction to a looming recession.
Prominence
and longevity — and the high salaries they tend to guarantee — used
to make some TV news people seem invulnerable. Not any more. Some
of the nation's best-known local news anchors and reporters were let
go in a brutal week of layoffs at CBS-owned stations from Sacramento
to New York.
WBZ in Boston dumped legendary sports anchor Bob Lobel,
who had worked there since 1979. KPIX in San Francisco dismissed four
reporters who had a combined 61 years of service at the station. WCCO
in Minneapolis cut a 22-year-veteran meteorologist and a weekend anchor.
In Los Angeles, longtime KCBS coanchors Harold Greene and Ann Martin
were told their multimillion dollar contracts would not be renewed.
At WBBM in Chicago, anchor Diann Burns was terminated seven months
before her seven-figure contract was to expire.
There were cuts behind the scenes, too. At the CBS station
in Denver, video editor Shawn Montano was let go after winning his
second editor of the year award from the National Press Photographers
Association. A week before he was fired, he says, the KCNC newsroom
had a party to celebrate his achievement. Other stations also are
cutting back, just not as publicly. WSAZ in Huntington, West Virginia,
owned by Gray Television, let eight production people go in March.
The Fox station in Philadelphia laid off four news writers.
The
layoff decisions weren't based solely on salaries, of course, but
money was the driving force. Burns, for example, had been lured away
from the market-leading ABC station in Chicago five years ago in an
effort to pull WBBM's ratings out of the cellar. Higher ratings would
have meant more advertising revenue. But the strategy didn't work
and she became expendable. "There's this perception that [television
news anchors] are all Teflon superhuman celebrities," longtime WCCO
anchor Don Shelby told MinnPost.com. "We're not. We make widgets,
and the widgets are news."
So maybe it doesn't matter as much who makes the widgets
if it doesn't make a difference to the customers. And that means the
local TV news formula of using star anchors to attract viewers may
be headed for the ash heap. It's expensive and apparently not that
efficient if you consider the recent downturn in both audience and
advertising.
In 2007, for the second year in a row, ratings fell
for local evening and late night newscasts, according to the annual
survey by the Project for Excellence in Journalism; morning news numbers
barely held steady. Advertising that has moved online is not coming
back to broadcast news, and most local online ad spending is on Internet
"pure plays," not TV or radio Web sites, according the research and
consulting firm Borrell Associates. That suggests the local station
shakeout is far from over.
"I would presume that everything has to be considered
as the business moves forward, as television redefines itself and
as the market redefines itself," says Shelby, a star anchor himself
whose contract is up in 2010.
He's exactly right, because the budget crunch hitting
stations today is entirely different from past setbacks that could
be weathered by temporary cost-cutting. "You're talking about a financial
struggle that is not cyclical," says Jerry Gumbert, president and
CEO of the broadcast consulting firm AR&D. "It's not going to turn
around soon, and probably not at all."
Cost reduction can help stations keep going in the short
term, but Gumbert says it's not a viable long term strategy. So what
is? "We tell them to reengineer the newsroom to operate in a world
with new revenue realities."
That means placing more emphasis on delivering the news
by means other than traditional broadcasts and less on presentation
by highly-paid anchors and reporters. The recent cutbacks suggest
that stations are beginning to get the point.
Innovation can kill a business that refuses to adapt
and change. Just ask Polaroid. The company that made its name and
fortune on instant photography finally threw in the towel in February
and announced it will stop making film — it had already stopped making
instant cameras — and will focus instead on the flat-screen TVs and
digital cameras.
Local TV news could become another Polaroid, left in
the dust by technology while continuing to produce a product fewer
and fewer consumers want or need. Or it could take a page from a different
camera company's playbook and turn itself around.
Remember how bleak things looked for Kodak a few years
back? The company bet on disposable film cameras just as digital was
taking off. In 2003, its stock price hit a 20-year low. Since then,
Kodak has cut almost half its work force and become a leading digital
brand, not just by changing its products but by reinventing itself
as a service company.
The lesson for TV news seems obvious. Cutting jobs won't
solve the problem. It's reinvention time. Anyone listening?
By
Deborah Potter www.newslab.org
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