Hey class, I'm lead blogger for the week and I found this article from TV Newsday about the Boston Globe being threatened to shut down. The title of the article shocked me because when I think of big time newspapers, I think of the Boston Globe. Many think that it is just a strategy from the New York Times Co. to help cover some of the $1.1 billion of debt that they have racked up (much in part to the Globe). However, regardless of the outcome, it definitely sends a shock that the newspaper industry could be heading in a bad direction (well isn't all business at this point?) with one of the premiere newspapers in jeopardy. I'm also waiting to hear about any backlash from the people of Boston.
Here's the link: http://www.tvnewsday.com/articles/2009/04/05/daily.1/
Associated Press, Apr 5 2009, 6:44 PM ET
NEW YORK (AP) — When it bought the Boston Globe for a record $1.1 billion in 1993, the New York Times Co. added one of the nation's most acclaimed and profitable newspapers to its empire.
But analysts say the 137-year-old Globe has been a money-loser in recent years, and the Times, now $1.1 billion in debt, is threatening to shut down Boston's pre-eminent paper unless it gets $20 million in union concessions.
2 comments:
I think that it's crazy that a paper that is 137-years old is actually may die out. Like the article said, it really shows that nothing is safe right now. I also think it is interesting that the are seeing a decline in the readership to online newspapers. That is something you always hear is going to happen but to see that such a prominent newspaper is being affected by this is shocking. It will be interesting to see what actually happens in the end and who the next newspaper will be to go through this.
Obviously, it's a negotiation tactic! (I had to go over the article a few times to get the "how"...I promise I'm not slow). And I strongly doubt that it will happen.
"Boston Newspaper Guild president Daniel Totten told the Globe the concessions could include pay cuts, the end of company pension contributions and the elimination of lifetime job guarantees. The Guild is the Globe's biggest union, representing more than 700 editorial, advertising, and business employees."
However this definitely sheds light on how bad things are right now and what sacrifices people are making/will have to make in the future.I think the unions will concede (see what happened to the San Francisco Chronicles) because in these times half-bread really is better than none.
And also, we have to wonder about how issues like these would influence young college students' decisions to choose this line of career (one that is extremely shaky during bad times)...hmmm.
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