That Sucking Sound: The Disappearing Newspaper

A few decades ago, most major cities had at least two major newspapers and many of them had morning and evening delivery. Today, newspapers are undergoing rapid decline and, for most of them, their futures are either digital or they will have no future at all. Those newspapers that will survive, will be free. Newspapers with a community focus that discusses the local boy or girl who has graduated from school or served the country with honor in the military and ones with a lifestyle or classified focus (jobs, homes, etc.) that are free will continue to continue to survive and maybe even thrive. The paid ones will quickly become history.

In the last few months we have seen the Rocky Mountain News fold in Denver, Colorado, the curtailing of days of delivery for the Detroit Free Press, and the move from a daily Christian Science Monitor to a weekly edition. This decline of newspapers is attributed to several factors:

The Internet has made the majority of content free. One of the strange answers by the industry, to the newspaper crises, is to raise the price on newspapers. This has only chased customers away to the vast array of sources available at not cost to the reader. The only newspapers that charge and may survive will have to fulfill a very specific function. The jury is out on that.

Information spreads best in a viral way, which lends very well to the Internet, but not newspapers. For years I use to clip articles, some times make copies to send to others, but usually lost them and tried to remember what the article I loved so much actually said. With the Internet, people can easily spread the word about the great article they have seen, pass it via email, and make the source a household name. With the Internet, organizing information is a breeze and it stands as far superior to the old methodology.

Archiving for future reference is very easy. I wanted to find out if the Internet is better than newspapers, so I did a Google search and I received millions of links. Remember going to the library, looking through periodical indices, and thumbing through countless newspapers or magazines to find an article? The Internet has changed all of that.

Many want to attribute the decline to the ideology that is pervasive among newspapers today. The liberal bias in newspapers is obvious and I think it is clear that this has hurt the credibility of the media in general. On TV, Fox News (which is described by the left as conservative, but in my opinion, strives for some level of objectivity) has more viewers than MSNBC and CNN combined. I believe this is attributable to the liberal bent among Fox News competitors.

In spite of these realities, if paid newspapers had Glenn Beck types as their publishers, they would still be in decline because that form of print news would still be in decline. The Internet (and the rise of smart phones that brings Web information everywhere) is just a far superior technology. Conservatives need to stop merely complaining about the newspapers and their liberal bias and take advantage of the new battlefield which is online. Currently, the left is dominating the blogosphere. It is still relatively early in the game, but conservatives need to shelve their pass loses and focus on the future that is the Internet.

This article originally appeared at CNN650.com, part of the CBS Radio Network.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am). Eric Bolling of Fox News and Fox Business and says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

The Rising Star of Glenn Beck

Glenn Beck is nothing short of a media phenomenon. In his own words, a mere five years ago, he was just a DJ on the radio. Today he has the third highest rated show on cable news (this, after being on the Fox News network for only a month), a rapidly expanding radio audience, a very popular magazine, and an excellent career as a successful author. So how did Beck go from "no one" (as he likes to describe himself ) to one of the hottest properties in media today? The following are just a few of the reasons:

• Beck knows his limitations. He has no problem making fun of himself, reminding people of his humble roots (including a long time sufferer of alcohol addiction), and simply telling guests that he "doesn't understand." When he says that, he's sincere. He wants to assume the person on the program who is trying to destroy jobs through excessive taxation on capital formation or whatever terrible policy, is doing it with the best of intentions. "Help me understand what you are doing?" This is disarming and I think he asks questions in the same way many other Americans would if they had the opportunity to visit with these decision makers.


• Beck is about philosophy and not party. Beck could care less about party affiliation. Many radio hosts lost credibility in the last election cycle by making it a war between McCain and Obama. The real battle is between socialistic worldviews and those who support freedom. To support McCain was to support different forms of socialism, not economic freedom. Sure, Beck reluctantly supported McCain as the lessor of two evils, but never became a cheerleader, which was a common practice of many radio hosts.


• Beck doesn't take himself too seriously, but he does take his issues seriously. New viewers of Beck might disagree, in light of the very serious tone he has taken since Obama's inauguration, but the host is also a noted comedian in his own right and uses humor as a powerful tool to get his message out. Even today with his sober tone, he may take the issues seriously, but he doesn't over play his own importance.


• Beck does his homework. He doesn't merely depend upon others to be informed and he provides original perspectives. He is actually a "thinking" radio host and not a mere talker. Unlike many pundits who have good "gut instincts," Beck is different. Many of the major names in talk radio tend to be more "feelers" about major issues than thinkers. This is seen in their often inconsistent take on policy issues and their lack of understanding of the Constitution. These are not the kind of issues facing Beck.
  

There is no doubt that Beck is articulate and charismatic, but those are not the main reasons for Beck's success. It is his thoughtfulness and convictions that makes him a rising star.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am). Eric Bolling of Fox News and Fox Business and says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

Jobs that Could Be in Trouble

The economy appears to be in trouble and everyone is wondering what industries will suffer the most from the up coming recession. When dollars get tight, people focus on cutting costs and buying necessities. So, anything that can be described as "waste" are most vulnerable. Currently, unemployment is now above 6 percent and some fear it could reach double digits.

The following are a few examples of industries that could be hardest hit:

• Supermarkets and fast food establishments could be the first to see a negative impact. The latter is for obvious reasons, because people will simply refrain from eating out as often. Supermarkets, on the other hand, will find themselves in a battle over pricing that we hadn't seen in years. The large volume leaders -- Walmart, Costco, and Sam's -- will be the likely winners of that battle. AOL Money & Finance points out that "Aside from Supervalu, which has already said it is struggling, Kroger and Safeway could be affected as well. These three largest chains have more than 750,000 workers. If same store sales drop sharply and a large number of outlets are closed watch for as many as 50,000 people being out of work.This does not take into account the scores of smaller chains and tens of thousands of individual food retailers around the country." On the fast food front, 10,000 jobs have already departed from Starbucks. That will only be the beginning.



• An industry that has been perceived as some what recession proof -- the Internet and E Commerce -- could be falling on hard times. The way these industries will be hit is if the damage is widespread throughout the business market place and it has a ripple effect on these areas. To some companies, E commerce and web businesses are an option, not a necessity. If that is the case, they too could suffer.



• E companies could find themselves in pain. My company's own web platform of over 90 websites has seen a slight decline in pay per click advertising revenue (fortunately we have seen a rise of other advertisiers). People are getting their ads for less because there are fewer competing to place them. What type of business are vulnerable? Google, Yahoo, eBay, and Amazon, just to name a few. Combined, these four employ over 75,000 employees. Yahoo seems the most vulnerable and could easily layoff 20 percent of its 15,000 employees.



• Software firms are also very vulnerable and I am sure that Bill Gates and his friends at Microsoft are among the most concerned. The largest of these companies employ over 600,000 combined. If these firms start laying off, it will have a trickle effect through out the entire economy since so many businesses are dependent on them.



• The hot industry in my neighborhood is energy and even it is vulnerable to cut backs. The price per barrel has dropped from a high of nearly $150 to around $70. Those prices are still high, historically, but the days of the fatted calf may be fading. Some are projecting a cut of as many as 5 percent of the labor force in these industries.



• Not surprisingly, media companies are taking a significant hit at this time. Everyone seems to be trying to lower expectations, including Viacom and CBS. The six largest media companies -- including Time Warner, Disney, and GE -- employ over 400,000 employees. If they start laying off the ripple effect could be huge.

What over shadows these dire concerns is the fact that thing Wall Street loves to see it that, when a business hits a hard time, the decision makers are tough and willing to make unpopular decisions. This is often best demonstrated in layoffs. In fact, the Stock Market has a history of rewarding companies with higher returns as they let employees go.

Kevin Price articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media.

Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

Gramm is Largely Correct

Former Senator Phil Gramm, who had an excellent career in the US Senate fighting for the prosperity of Americans, recently spoke his mind about the economy with candor and intelligence. Sen. Gramm is not only a former member of the House and the Senate with over two decades experience, but also has a PhD in economics from the University of Georgia. He may very well be the "Dr. Phil" of economics.

In an interview with the Washington Times, Gramm stated:

You've heard of mental depression; this is a mental recession," he said, noting that growth has held up at about 1 percent despite all the publicity over losing jobs to India, China, illegal immigration, housing and credit problems and record oil prices. "We may have a recession; we haven't had one yet."

"We have sort of become a nation of whiners," he said. "You just hear this constant whining, complaining about a loss of competitiveness, America in decline" despite a major export boom that is the primary reason that growth continues in the economy, he said.

"We've never been more dominant; we've never had more natural advantages than we have today," he said. "We have benefited greatly" from the globalization of the economy in the last 30 years.

He goes on to point out that "Misery sells newspapers. Thank God the economy is not as bad as you read in the newspaper every day."

These themes have been a part of my mantra, with titles such as Economist on the Media and Recession, Bad News Means Big Business for CNBC, and others with similar titles for the last two years, the criticism against Gramm seems to me to be unfair.

But criticized he has been and practically thrown under the bus by Sen. John McCain for whom he has served as an economic advisor. Threatening to send Gramm to Eastern Europe as an ambassador if elected and if they would have him, McCain is using the harshness he has become famous for in his ability to turn on a friend.

It is true, there are people in this country who are suffering at this time. However, most of those are the same people when are economy was incredibly hot a few years ago. Gramm's statements are largely true but probably too honest in an election cycle. The media lives off of bad news and the people are beginning to buy the headlines.

Would you like to get a weekly email summarizing Kevin Price's political and economic content? Subscribe to the Houston Business Review by emailing us at Info@HoustonBusinessShow.com.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Media Has Made Its Choice for President

While people are going to the polls in West Virginia in what is expected to be a Hillary Clinton landslide, the media has begun the formal anointing of Barack Obama as the Democrat's nominee. Both candidates are being described as having "different styles" and are clearly entering a different stage by the mainstream media.

Most of the networks have discussed Obama's "new swagger" as a "presumptive nominee," but none seem to provide tangible examples of how this is seen in reality and not mere projection. Reality had Obama saying that if he would claim to be the nominee he would be "presumptuous" considering that Hillary was just days away from racking up a win in West Virginia.

Meanwhile, we are told that Hillary is starting to take a more "conciliatory tone" and will soon be transitioning from opponent to party unity. The reality I have seen has Hillary remaining strident and some of her allies alluding to the possibility of another "bomb" going off more dangerous than Rev. Wright in the Obama campaign.

What is interesting is that all the networks, including Fox, seem to be on the consensus train. I for one believe that Obama is much more than likely to get the nod, but the current discussion in media seems to be little more than wishful thinking.

According to recent surveys on marketing, most advertising attracts sellers (others who want you to buy more ads) and not buyers. Do you want to know why? Email info@HoustonBusinessShow.com and put "marketing audio" in the subject line and we will get it to you.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Are We Now In A Recession?

You probably didnt ask for it, but it has been shoveled down our throats, we are being told that we are in a recession. I have said quite often in this blog, that I'm not buying it, and the economic statistics supports my optimism.

According to the Bureau of Labor Statistics (BLS), we maintain a ridiculously low 4.9 percent unemployment. Economists call 4 percent zero unemployment (factoring in seasonal employees, those creating their own business but still cited as unemployed, illegal business activity, etc.). There has never been a recession with this low of unemployment.

On the same BLS page we find that productivity was up 6.3 in the last quarter we have such recorded. Again, not indicative of a recession. In fact it is a sign of a booming economy.

As I watch CNBC (which is all I have available in my TV studio) I am seeing these people celebrate a recession as the Dow hoovers around -300. One of the analysts is arguing that they need to declare the recession now so the market can determine what are the best stocks to invest in. It is dishonest (it takes six months of economic decline to have an actual recession), it probably lead to poor financial planning, but it leads to great TV ratings.

I admit, today may not be a good day to invest in the market if you are faint of heart -- although there are plenty of barging out there that are worth pursuing. But there are numerous places that you can successfully put money -- in Real Estate (especially in the investment side as people move to renting rather than owning), creating your own business, and other more tangible economic activities. But it is simply too early to call this an economy in decline.

In the above video from Movers and Shakers, you will see a different spin on the economy.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

California Fire Fuels TV Ratings

If I have said it once, I have said it a million times, the media is in the bad news business. Again, not news, bad news. If people merely saw news or good news, it appears interest would be at a minimum. In the words of Don Henley, we want "dirty laundry." Proof of the power of bad news can be found in one of yesterday's article in Media Bistro's TVNewser:

Last night's special edition of 20/20 posted the program's largest audience in more than a year and its highest A18-49 and A25-54 numbers in more than eight months.
The Charlie Gibson-anchored special brought in 10.9M total viewers. In the A18-49 demo the hour had a 2.8 rating/8 share; in A25-54 it had a 3.7/10.

So when the media has the opportunity to talk about the fact that we will have one of the best home selling years in history this year or focus on the 1.5 percent of home owners who are in forclosure, what route do you think they will take? Sadly, bad news is good news for the media.

Why Do Women Always Win in Commercials?

I just saw a commercial for Sprint in which a man and woman had a race to determine who had a faster phone (I think it was to get online, or something, but I was too interested in the demographics of the race). The woman, of course, won. The same is true with virtually every commercial that includes men and women. In these commercials, generally speaking:

* Women are smarter. I'm amazed that men are able to get their pants on in light of what the media conveys.

* Women work harder. Unless a man can turn it on or off from a couch, he isn't going to do it.

* Women are better. If a job is going to get done, it will require a women.

I have been trying to figure out why this has happen (men generally being seen as weak idiots in the media), and I think it could be a consequence of several things:

* The culture in general seems to be largely anti-male. Unfortunately, this isn't completely without cause. Men cause most of our crime and they are much more inclined to abandon their responsibilities to their families. I doubt if beating them up in the media will do anything to reverse this sad trend.

* I believe that many of of the institutions that affect culture (TV, magazines, art, etc.) are becoming increasingly dominated by women. I believe this is particularly true of the marketing and advertising fields that use to be dominated by "Ad Men" and is increasingly being over taken by women in these posts. I believe there is a general consensus that women are more creative and artistic, making them ideal for these fields.

In the end, I'm sure there are other factors driving these trends and I think the move in this direction should be a little disconcerting to all of us, including women, because many of them have sons whom they would prefer to be better men. Media is powerful and will, in my opinion, have a direct impact on the type of men we raise in our culture.

Why the Media Hates Good News

If you love conspiracy theories, you will love this post, but I think I have finally figured out why the media hates good news and loves bad. This subject has been of great interest to me and the following are just a few of the titles I have had on the subject:

* More Bad News for Those Who Love Bad News

* The Half Empty World of the News

* As the Economy Enjoys Good News, Critics Receive Bad

I have written several more and they all have a similar theme, the media lives off of bad news. Furthermore, I believe that the media makes a living off of bad news. There are some logical reasons for the media to like bad news.

People are not nearly as interested in good news as they are in bad. As Don Henley said in one of my classic rock favorites -- give us the dirty laundry! News, by design, is meant to warn, protect, and prepare. Most of the stories that fall in these categories, tend to be negative in nature. If the weather was perfect, who would need to know the forecast? If all neighborhoods were safe, there would be no stories about the parts of town to stay away from. And if all things were perfect, we would likely find the news really boring. This has been a huge force in driving the global warming hysteria.

More sinister than this, and this is where my conspiracy theory comes out, when the economy is performing well, many businesses don't invest nearly as much on advertising. When people can easily find clients, they are less likely to invest money in marketing. When the economy gets weaker they are often forced to make such expenditures or face terrible consequences. Bad news can foster a negative view of the economy, which can lead to an actual economic decline.

I know, it is a little far fetched, but when I talk to my associates in media many are actually glad about the possibility of a rumored economic decline and think things might be improving for their business. Call it what you will, but I call it the economics of bad news.

The Incredible Shrinking Magazine

Let me just start by stating that I love magazines (I actually have 6 or 7 subscriptions). For many years I wanted to eventually have a magazine of my own. In spite of the pounding that print has faced in general due to the Internet, new magazines still seem to be popping up, but their future is still doubtful since with every new one there are several that fail. I believe that magazines are shrinking, both in size and importance, and this is reflected by the following indicators:

• Cheaper than ever. The price of a subscription must be less than it costs to mail it, let alone print it. Magazines that people paid $20 to $30 a year 5 years ago, cost around $10. In fact, $10 seems to be the going rate for such publications. This is their desperate attempt to convince businesses of the large number of people that are seeing their advertisements. Magazines are finding it difficult to keep up with the growing online viewership.

• The number of pages are declining. I'm sure this is related to the number of ads purchased (there is a formula of number of ads, justifying the number of pages of content).

• Magazines play a copy cat role. Magazines are looking more and more like printed websites. Since you can access most sites for free and they have direct links to other articles, that can't bode well for magazines.

• The growth of the "third screen" (mobile devices) makes it possible for people to access numerous "magazines" through out the day. Increasingly I use my pda to access articles. The content is free (at least what I read) and my selections virtually unlimited.

Still, I love magazines and I would not be surprised if I increase my subscriptions (since they practically give them away). But an ominous cloud hangs over the future of all print publications.