Brother can you spare a dime?

By Len Gutman on November 7th, 2009 In Media

afn logoI’ve lived in Ahwatukee for coming up on 17 years now and one thing that has always been consistent is the Ahwatukee Foothills News. It’s a great community newspaper with hyper-local coverage that you can’t get anywhere else. And I know most of the staff and they are great people.

The AFN used to be an independent paper, but these days it’s owned by Freedom Communications, the same parent company that owns (er, owned) the East Valley Tribune. So suffice it to say things are a little on edge over at the AFN. While it is not closing, it is, apparently, struggling just like all newspapers.

Nevertheless, I was still surprised this morning when I opened my copy of the AFN to find a full page letter from the publisher that among other things asked readers to contribute financially to the paper.

Really? I’m supposed to help pay to keep your business afloat? How much do you want? A twenty? A Benjamin? Your business model is advertising revenue based, not subscription based. It’s interesting to me that the East Valley Tribune couldn’t support a subscription based model so it went free — and failed nonetheless. Now the AFN, a free paper, wants readers to pay. I don’t think that’s the answer either.

I think if the AFN wants to stick around it needs to think outside the box. We’ve discussed some of these issues here before, but why not take the opportunity to try a micro payment model? Or a nonprofit model? Asking readers for donations is a short term fix and might keep you afloat for a few months, but it doesn’t solve the long term sustainability problem of your industry.

I don’t blame the publishers of the AFN for coming to readers with their hat in their hand. It’s a natural survival instinct. I just think it’s shortsighted and frankly a little desperate.

Note: Following this post I learned that both the publisher and editor of the AFN have been dismissed by Freedom Communications. For full coverage of the East Valley Tribune closure and related stories visit www.heatcity.org.

Brother can you spare a dime?

Comments

Marketing $ociologist Says:
November 8th, 2009 at 2:23 pm

The Foothill News may be ahead of its time. Congress is trying to pass a law where newspapers are considered non-profits rather than business agencies. George Orwell is rolling over in his grave and Joseph Stalin thinks it’s a terrific idea.

Len, I heartedly suggest you sit down with Renie Scibona. If Phoenix has any leaders left, she’s one of them. You’ll find her, as I did, to be one of the wisest and most sage people you’ll meet.

If government is going to save newspapers, why not the photographic film industry, typewriter manufacturers, horse buggy whip makers, U.S. television makers and the auto industry -oops.

As I was taught in my MBA studies, if passenger railroad companies had thought of themselves in the travel industry, rather than “railroad,” they’d be around today.

Same thing is happening with today’s airline industry. Rather than looking at bullet trains and other strategies, they stick with using old, ill-repaired airplanes to stay in business. Believe there’s only one airline that has consistently made money. The founder has a surname consistent with CREATING profits.

Richard Kelleher, M.B.A.
MediaRelationsExpert.com
@PhoenixRichard

Len Gutman Says:
November 9th, 2009 at 6:28 am

Richard,

I’m sure Renie Scibona is a wonderful person. I’m not blaming her. In fact, my sources tell me she was relieved of her duties last week.

Len

Noelle Says:
November 9th, 2009 at 9:40 am

I worked for a community news organization in Michigan, and soliciting volunteer payments annually was a regular practice. It brought in several thousand dollars, and it always made me cringe when we did it. It was a for-profit company going to the community for hand-outs.

Homer Says:
November 9th, 2009 at 12:29 pm

That is the same tactic that the Independent Newspapers a few years ago, without much success. They now have roving circulation – different ZIPs each week for the free distribution. Hyperlocal really does provide coverage not found elsewhere. Hope someone can find a model that works.

Homer Says:
November 9th, 2009 at 12:29 pm

That is the same tactic that the Independent Newspapers tried a few years ago, without much success. They now have roving circulation – different ZIPs each week for the free distribution. Hyperlocal really does provide coverage not found elsewhere. Hope someone can find a model that works.

Scott Hanson Says:
November 9th, 2009 at 2:08 pm

Len, you are correct:
Publisher Renie Scibona and managing editor Brian Johnson have been shown the door at the Ahwatukee Foothills News, one of several newspapers in the Phoenix area owned by the California media chain.

John-Scott Dixon Says:
November 11th, 2009 at 9:48 pm

Len,

My wife and I laughed when we saw that – here’s the deal. AFN has some really nice stories on occasion and it does help keep us tethered to the local community – but paper must go digital. How about a shockingly thin AFN – wrapped around a rock to keep it from blowing away. All content reduced to stubs with encouragement to go online to get the full story. Train the audience to the Web – get people to segment – sell highly, localized and targeted content to advertisers.

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