Reflections on the Sale of the Washington Post

Much is being said, almost all of it guesswork, about why Jeff Bezos bought the Washington Post, what he plans to do with it, and what it all means.  Some argue it’s just a kind of trophy purchase, others that it was done to gain political influence, for Mr. Bezos and/or Amazon, in the Nation’s Capital.

Still others see in the purchase a path leading to a future in which important elements of the news media are nonprofit entities, either by design or in consequence of operations that, while unprofitable, are subsidized by owners with deep pockets.

I would guess, and hope, that all of these speculations are false.  The more likely reason that Mr. Bezos bought the Post is because he suspects he can operate it, using the tools of the new technologies, at a profit.  That by doing so he would also, serendipitously, save professional journalism may be a by-product of his purchase, whether it’s part of his motivation or not.

In 2000, The Media Institute gave Mr. Bezos its Free Speech Award, largely in recognition of the global reach of his book selling operation, sometimes over the objections of local governments.  In his acceptance speech, Mr. Bezos talked at length about the path he and his wife had followed in the creation and growth of Amazon, and the picture that emerged was not that of a politician or a philanthropist.

Instead, Mr. Bezos came across as an ambitious, disciplined, and hard-charging businessman.  (That same year, the Institute gave its other annual award to Robert Johnson, founder of BET, and I have often thought how similar the two men are.)

To put it another way, I think Mr. Bezos has too much self respect, and too little ego, to have purchased the Post either as a kind of grandstanding event, the better to aggrandize himself or Amazon, or to stand by and subsidize indefinitely a financially failing company.

After all, if news organizations are not created to make a profit, what are the standards of success or failure?  The idea that nonprofit status produces a more value-free product is belied by the reality that most philanthropists operating in the realm of the media have decided political views, a la the Knight Foundation, ProPublica, Open Society Institute, etc.

Going forward, there is one thing I would recommend to the gentleman: that he insist that the editors and reporters at the Post understand how important it is that the media be a watchdog on government. After all, if the media are not a check on government, who is?  If the only role of the media is to deliver eyeballs to advertisers, the media wouldn’t deserve a First Amendment and the Founders wouldn’t have produced one.

Which is not to say that the Post is in all ways politically or ideologically one dimensional.  As contrasted with the New York Times, where the right-leaning Ross Douthat toils away in solitary isolation, the Post’s editorial page features lots of conservative columnists.

The problem so defined is not in the editorial pages but in the news pages – the paper’s breaking, feature, and investigative reports.  No subject better illustrates this point than the paper’s coverage of the ruinous, not to say corrupt, fiscal antics of Congress and the Administration.

Perhaps the greatest threat not just to the financial health but to the very security of this country’s citizens is the growth of government, and of the corresponding governmental debt, at the federal, state, and local levels. Nor is this a new development. It’s been going on for years and the Washington Post has looked right past the kind of things that, were they done in the private sector, would yield indictments and incarceration.

There are things to admire in the Washington Post, and it’s to be expected that Mr. Bezos would not come out with early comments of concern about the editorial product there.  But if he cares about the promotion of excellence in journalism, and would like to add conservatives and Republicans to the newspaper’s admirers, this is something he ought to put in his cart.

                                               

The opinions expressed above are those of the writer and not of The Media Institute, its Board, contributors, or advisory councils.

‘Interest Groups’ and the News Media

From the Pew Research Center/Project for Excellence in Journalism comes the welcome report that newspaper editors and TV news directors are not eager to be, or to be seen as being, wards of the state.  This wholesome sentiment will not come as a surprise to most people, but it has to be disconcerting to the “media reform” crowd, which has been clamoring for direct government subsidies or tax breaks for the news media.

According to the study, 75 percent of the respondents, drawn from the ranks of members of ASNE and RTDNA, had “serious reservations” about direct subsidies from the government, and approximately half had such concerns about tax credits for news organizations.  (Note: These figures do not indicate how many of the respondents had “reservations,” only those who had “serious reservations.”)

It’s in the matter of non-governmental support, of the sort that issues from “interest groups” or nonprofit organizations, that the picture becomes a little murky.  According to the report, a whopping 78 percent of the respondents had serious concerns about accepting donations from “interest groups that engage in advocacy of some kind,” while a little over half expressed either serious or “some” reservations about funds issuing from nonprofit foundations.

Buts what about those groups, like the investigative news organization ProPublica, that are funded and led by people with extensive, and clearly defined, political profiles?  Is ProPublica an advocacy group or just a nonprofit news group?  The question takes on a practical significance in light of the Pulitzer recently awarded to ProPublica and The New York Times for their collaboration on a piece published in the New York Times Magazine.

As reported here, the founder, chairman, and principal financial backer of ProPublica is billionaire Herbert Sandler.  Since selling his interest in the bank (Golden West Financial) through which he made his fortune, Herbert and his wife, Marion, have become big-time philanthropists, with substantial sums going to “progressive” organizations like the Center for American Progress and Acorn.

Along the way the Sandlers acquired an interest in bankrolling a news organization that would create “journalism in the public interest,” as ProPublica calls itself, and hired Paul Steiger, then the managing editor of the Wall Street Journal, to act as editor-in-chief.

As reported in The New York Times, Steiger, who was then nearing the WSJ’s mandatory retirement age, didn’t know the Sandlers well but regarded them as “civic-minded people who were kind of partial to lefty or progressive causes.”

From its inception in 2008, ProPublica has proclaimed its independence and impartiality — a claim that is undermined by its avowed goal of producing journalism that “shines a light on exploitation of the weak by the strong,” and by the looming presence of Mr. Sandler who, rather than donate his money as a lump sum and walk away, installed himself as chairman and is parceling out his contributions over time.

At a recent conference of the American Bar Association, the general manager of ProPublica who, like Mr. Steiger, was formerly with the Wall Street Journal, defended the organization against criticism of Mr. Sandler’s role by suggesting that ProPublica, like the WSJ, is capable of producing journalism that is independent of the political views of management.  Unfortunately, this is an inapt analogy.  In fact it’s worse than that — it positively undermines the argument it’s meant to buttress.

This, of course, because the reason that the Wall Street Journal, or any commercial news organization, can produce news stories that are not a reflection of the political views of management is because they, like all for-profit organizations, operate on the principle of maximizing returns to the shareholders, rather than as a forum for the expression of management’s political or ideological views.

But contrast this dynamic with the very different operating principle of ProPublica, or any nonprofit enterprise.  As Slate’s Jack Shafer asked at ProPublica’s launch, “What do the Sandlers want for their millions? … How happy will they be if ProPublica gores their sacred Democratic cows?  Or takes the ‘wrong’ position on their pet projects: health, the environment, and civil liberties?”

In fairness, most of the reports produced by ProPublica to date do not suggest an organization that is marching in lockstep with the progressive agenda.  For the most part they are ideologically value free.  But that’s only half the story.  The real issue with a group like ProPublica is not the kind of issues it does cover but the kind it doesn’t.  As Jack Shafer asked, what kind of investigative pieces will ProPublica do — not counting the rare expose that proves the rule — that discomfit progressives?  That will be the true test of its independence from its benefactor, and of its suitability as a partnering organization with mainstream news organizations.

In the meantime, close your eyes and try to imagine the kind of reception that would have come to Paul Steiger and ProPublica if, instead of Mr. Sandler, the group’s founder, chairman, and bankroller had been someone who, politically, was Mr. Sandler’s polar opposite — someone who had supported conservative or libertarian causes and organizations.  How do you think that would have gone down with the J-schools, journalism reviews, and grant-giving foundations?

Aggregating Newspapers Into Extinction

Hardly a day goes by without another reminder that the demise of newspapers is in full swing.
    
In the Outlook section of yesterday’s Washington Post (Sun., Aug. 2) came the latest, an anecdotal example by Post reporter Ian Shapira titled “How Gawker Ripped Off My Story & Why It’s Destroying Journalism.”  The title pretty much sums things up.
    
Gawker is, in Shapira’s words, “the snarky New York culture and media Web site.”  More importantly, it is a news aggregator, and it had written about and heavily excerpted an earlier story Shapira had written for the Post.
    
At first Shapira was glad for the recognition, until his editor reminded him that he, and the Post, had been ripped off.  Shapira had spent several days researching and writing his original story (and getting paid by the Post to do so).  Gawker repackaged his story in no more than an hour and posted it on its site – for free (or close to it, if you count the time of the poorly paid 29-year-old “independent contractor” who did it).
    
And therein lies the worst-case scenario for the destruction of journalism – which is to say, original reporting.  Newspapers are already being decimated financially by online media sites and blogs.  To the extent that any of these sites offers serious journalism, that journalism frequently consists of stories that have been ripped off, er, “aggregated,” from established newspapers.
    
But here’s the rub: As online aggregators continue to strangle the newspaper industry, they are killing the geese that have been laying their golden eggs – original reporting.  Once the newspapers are dead (or knocked senseless), from where will high-quality journalism originate?  How many online outlets will be able to pay real reporters the way newspapers did?  What will pass for journalism?
    
It’s already happening.  Buyouts have emptied newsrooms of many of their most experienced and knowledgeable reporters, leaving things in the hands of novices.  (A small example: An inexperienced reporter at the Post refers to the Obama inauguration train’s observation car as a “caboose,” and the editor doesn’t know the difference.)
    
Sadly, even the august New York Times is not immune.  A piece by the Times’ Public Editor Clark Hoyt on Aug 1. described how the paper of record’s appraisal of Walter Cronkite contained seven factual errors – something of a record, no doubt, and a feat unimaginable in an earlier era.
    
Yesterday I was sitting with a group of friends and one of them was reading the Sunday New York Times.  He asked me if I wanted to see it, and proffered a selection of unmistakably slim sections.  He added apologetically: “The Times isn’t what it used to be.”  No, my friend, it isn’t.  But neither are the rest of them.
    
I don’t know where all of this is going to end, but I do know that we’re well on the way.