Corporate Engagement

Trevor Cook on public relations, social media and politics

Hartigan and the future of newspapers

Newspapers have been declining in prominence and relevance for decades, well before the Internet and bloggers came along.

Many newspaper titles have disappeared altogether, or have been merged, in response to the growth of radio and television. The emergence of the Internet simply reduces the market for newspapers even further. Newspapers will not disappear altogether, the merging will just keep going on. Newspapers will also have to re-think their content, padding up with a bunch of pseudo-magazines (called lifestyle) won’t do it anymore.

In response to this market pressure from radio and television (radical new technologies that newspapermen thought would have little or no impact on print), newspapers resorted to lifestyle. It made sense, a growing middle-class with more money, more leisure and more aspirations craved directions on what to wear, eat, read and visit. Of course, television has also cashed in on this middle class interest, most recently seen in the extraordinary popularity of Ten’s Masterclass Australia.

One problem with lifestyle, or what Hartigan discretely referred to as ‘highly relevant and genuinely useful’ stories in his speech yesterday, is that it sucks resources away from the high-end and investigative journalism that attracts traditional newspaper readers. I think the New York Times is about the only american newspaper that still maintains an extensive network of  international news bureaus. The rest rely on wire services.

The second problem is that lifestyle works a lot better on the Internet than it does in newspapers. The reason is that a simple google search will generate much more useful information about any lifestyle subject than a newspaper can deliver. And the Google search can be done precisely when you need it - even on your iPhone as you stand in the supermarket aisle wanting to check the ingredients for that new recipe you want to try tonight. TV has worked out how to exploit the power of the Internet in this regard by backing their lifestyle programs with information-rich websites. Again, Masterclass is a great example.

Lifestyle may have helped newspapers pre-Internet, but it’s a losing strategy for the future. Where do they fit in? Hartigan points to the great success News has had with the taste.com.au site (I’m a frequent user myself), but it works because it’s on the web, it’s got nothing to do with the future of newspapers.

I hoped Hartigan might have answered this question yesterday, but he ducked it with a string of empty homilies about what constitutes great journalism and trite remarks about the importance of the reader (no kidding). Not to mention a silly defence of tabloidism which avoids the problems with that format that pisses people off (like the fake Hanson photos and the fake email).

Hartigan does quite forcibly point out that ‘breaking stories’ drives readership and points to the example of the UK MP expenses scandal (which paradoxically the Fairfax newspapers have replicated today in relation to the gold pass plane travel scandal). He, of couse, glosses the fact that stories are also broken on TV, radio and the Internet - it’s about journalism not distribution method (like a lot of old journos, Hartigan just can’t get over the fact that journalism is not the exclusive preserve of newspapers).  But as Hartigan notes, big stories are rare and they require a lot of resources. And journalistic resources have been on the decline in response to commercial pressures and the ‘lifestyle’ strategy.

Deceptively, Hartigan then goes on to have a slap at Google and Yahoo and other aggregators, without admitting the amount of traffic his sites get from these aggregators. Some newspapers get nearly half their online readership from aggregators. This leads him into a tiresome and predictable attack on bloggers etc. He’s completely wrong, of course, the success of many blogs is that their content is far more expert and better informed than the content in newspapers. I’m thinking here of a vast array of blogs written by professional economists, scientists, etc. Many of these people, btw, regularly provide content for newspapers and use their blogs to overcome the space and search / archive limitations of newspapers. Many bloggers know that it is not an either / or proposition.

Newspapers simply can’t compete with the quality (and quantity) of content on these sites. He is right that too many of them (us) spend too much time worrying about, and responding to, newspapers. But I think that is just a transitional phenomenon, as bloggers, and the blogosphere, matures it will lose some of its obsessive interest in newspapers.

But if the content on sites like Crikey and blogs is all so bad why is Hartigan so worried about it? His concern betrays the threat they, collectively, pose for his business. Conversely, he fails to understand just how important these sites, like the aggregators, are in driving traffic, and interest, in newspaper sites. After all this time, Hartigan still seems to resist the potency of the search / link power of the Internet. Strange.

Hartigan is right to identify great journalism as the last, best hope for the future of newspapers. Reading his speech, I’m not convinced that News or anyone else has the business model or the courage to invest the sums that would be required to deliver enough great journalism to slow the steady decline of newspapers.

Michael Jackson - ‘rest in peas’

Yes peas. That’s what a hand-written sign held by a US mourner, and featured prominently on Channel Ten’s news coverage, said. Did wacko have a thing for small green vegetables?

Forget utegate, grocery choice …Conroy delivered the week’s worst decision

As widely reported, but over-shadowed by other scandals and fiascos, was Stephen Conroy’s decision to censor the internet more extensively than previously thought. This decision is likely to alienate a large swag of voters who are otherwise favourable to Labor.

Inquisitr: “The Australian Minister for Censorship has today confirmed what I’ve been reporting for nearly two years: online adult games including Second Life will be banned in Australia.”

SMH: “The Federal Government has now set its sights on gamers, promising to use its internet censorship regime to block websites hosting and selling video games that are not suitable for 15 year olds.”

Wacko Jacko helps Rudd hide a dead cat

A great day to bury bad news, as Mark Colvin (@colvinus) observed:

On a day when news of Michael Jackson’s death was dominating people’s attention, the Federal Government has announced that it’s killing off its controversial Grocery Choice website.

In PR, it’s an ill-wind etc

Gould part of League’s problem

Apparently, there are calls for Phil ‘ Gus’  Gould to coach NSW again. But he says things would have to change before he would even consider it (the guy’s ego has been out of control for a long time), including this gem:

“There would also have to be massive improvement in the relationships between players and the media - in particular, the unfair scrutiny under which these young men are being forced to live their lives - before I would even contemplate a return to coaching at any level.”

Oh yeah, that’s the problem. Those pesky journos keep reporting the drunken fights, sexual assaults, gang bangs, drug abuse and so on.

It’s that sort of attitude that helps ensure that these behavioural problems keep recurring.

More immediately, exactly how does Gould think the media can be muzzled to protect people who commit criminal and socially abhorent behaviour? And why should rugby players get special protection? Shouldn’t TV and film stars, politicians and everyone else in the spotlight be able to avail themselves of this “Gould shield’ whereby the media can only report nice stuff about famous people?

And Gus, Queenslanders get the same scrutiny and they seem to be able to overcome it and deliver the goods on the field.

Turnbull should learn from Rudd on handling a ‘judgement’ crisis

As Ben Eltham has pointed out in New Matilda the Ozcar saga is about nothing more than political tactics.  Turnbull’s tactics blew up in his face when it was found that the email he relied on was a fake. At that point, he should have done what many politicians do in similiar circumstances and plead a limited mea culpa, draw a line and move on. Rudd did this very well in 2007 when revelations about his lunches with disgraced WA ALP figure Brian Burke blew up and threatened to derail his new bid for the prime ministership. In echos of this week’s scandal, the Howard Government sought to argue that the Burke affair showed that Rudd lacked the experience and judgement to be prime minister.

Faced with this destructive onslaught, Rudd admitted that the meetings had been an error of political judgement but rejected claims of dishonesty. A huge, smelly sh#t sandwich but it went away and the electorate did not mark down Rudd when the election rolled around a year later. Sometimes you have to accept a little humiliation to avoid something much worse.

Grech affair a setback for government 2.0

While a hopeful digerati (still waiting for the revolution) look hopefully towards the Australian Government’s government 2.0 project, a much more powerful message has been sent by the government’s heavy-handed approach to the Grech affair. That message is that we, the politicians, control who gets told what and how. The heavy-handed use of the federal police, including real-time updates on the progress of the investigation (and a stream of unsourced rumours of dark deeds), will send a chill through an already timid and cowered public service. There is no mood for openness and inclusion here. As you were social media advocates, it’s business as usual.

Postscript: On ABC AM this morning the interviewer suggested to Wayne Swan that he wasn’t answering her question. Swan promptly, and revealingly, responded that was because she wasn’t asking the right question! As I said, we’ll tell you what we want to tell you, when and how we want to tell you. Plus ca change etc

Poor Godwin Grech - a martyr to the cause of public service

Godwin Grech, a hard-working and intelligent bureaucrat, has fallen foul of the gap between myth and reality in the senior echelons of Australia’s public service. The myth, fondly recounted by the mostly faceless senior bureacrats in Canberra, speaks of independence, impartiality and fearless advice. The reality is that your career only progresses if you do what your political and bureaucratic masters tell you to do or your career hits the skids.

At Senate estimates hearings on friday, it was obvious that Grech had decided to take the path less travelled and tell the Parliament and the public the truth as he understood it. His demeanour spoke of stress, intense discomfort, because he knew that he was about to break the unspoken public service code of silence and acquiesence.

Government senators and a senior Treasury official, all obviously well-briefed that Grech was a bomb ready to explode, tried desperately to protect Rudd and Swan from this rare, and very inconvenient, display of public service integrity.

Grech is a hero, or he ought to be, and an unlikely martyr. His career has been shredded, let’s hope his health and personal well-being do not suffer too much.

The Grech episode points again to the reality that there is something rotten, and delusional, at the heart of our political system.

Update (13.53pm): It’s got murkier and bizarre - ABC & the Punch.

Update (15.20pm): Gretch’s ‘more complicated role’

The Australian Federal Police Commissioner Mick Keelty is expected to make a statement this afternoon concerning dramatic developments in the Utegate affair.

It follows a raid this morning on the home of the Treasury official at the heart of the controversy, Godwin Grech.

Mr Grech has been questioned by the federal police about a fake email which linked Kevin Rudd to attempts to help a Brisbane car dealer, John Grant, obtain finance.

Senior sources believe that Mr Grech’s role in the affair is more complicated than previously thought.

Update (16.20pm): The latest suggestion / rumour is that Grech faked the email himself - which just seems so bizarre. But it has been a weird day (in a genuine Hunter S. Thompson) sort of a way. People who have worked with Grech say that he is a straight up and down, can do sort of public servant - yet, he is at the centre of a truly mind bogglingly absurd episode.

Update: Tues 6.41am From Michelle Grattan: “The emotional Grech looked extremely convincing when he appeared before a Senate committee last week”. He put in, what we may see as, an extraordinary acting performance.

Update 24 June 8.52am: Godwin Gretch man of mystery and more

Update 25 June: Here is the editorial from the Australian which covers the point I was trying to make in this post (only in a much better and more comprehensive way) and it is one of the few sensible, and useful, things to appear in the media on this ‘affair’ so far:

IT will come as little surprise to learn that The Australian is in favour of public service leaks. The more the better. Whistleblowing serves the public interest, increasing transparency, enforcing accountability and protecting democracy. More often, however, it is senior politicians from both sides, and not bureaucrats, who would have most to lose from leak inquiries. Sir Humphrey Appleby’s view that the ship of state is the only ship that leaks from the top is as true in the real world as in the fictitious corridors of Yes Minister.

It remains to be seen what the Australian Federal Police inquiry into Godwin Grech and the infamous faked email uncovers. As a matter of principle, charged as they are with responsibility to advise governments impartially, it is not the role of public servants to serve as operatives for either side of politics.

Such conduct, however, is a separate matter from legitimate whistleblowing. Leaks to journalists or opposition politicians drawing attention to corruption, gross incompetence, abuse of powers or other conduct against the public interest are important in the functioning of a vigorous democracy. Public servants have been passing sensitive information to trusted journalists and parliamentarians for generations. In fact, it would be difficult to believe that Kevin Rudd himself did not benefit from leaks in opposition, notably in relation to the AWB kickbacks scandal.

Unfortunately, political witch-hunts are nothing new either. One of the most disgraceful examples in the Howard years concerned former Customs officer Allan Kessing, who was accused of leaking details of security weaknesses at Sydney airport to this newspaper. Mr Kessing was hunted down by the Australian Federal Police, charged and convicted under Section 70 of the Commonwealth Crimes Act. He has continually asserted his innocence. Section 70, which carries a maximum penalty of two years’ jail, prohibits unauthorised disclosures by current or former federal public servants. Its repressiveness would test the courage of any whistleblower.

The Rudd government was elected on a welcome promise of “cultural change across the bureaucracy to promote a pro-disclosure attitude”. It is yet to make good, despite some progress, and the proposed whistleblower laws it is considering are disappointing. Instead of protecting those who approach the media in the public interest, they would only protect whistleblowers who approach the public sector hierarchy, unless exposing an immediate, serious threat to public health or safety.

As the investigation into the fake memo proceeds, the government and the AFP need to avoid any appearance of political interference. After just a few days, it is notable that the degree of information about the investigation contrasts with the blanket of secrecy about the deaths of five people after an explosion on a boat off Ashmore Reef in April. Mr Turnbull must of course co-operate with legitimate AFP inquiries but he also must be scrupulous about protecting any sources who may have assisted the Coalition.

At least 300 federal and state laws contain secrecy provisions for no good reason other than the Orwellian excuse that the laws provide for secrecy. Judicious leaks that expose vital information in the public interest are essential to avoid the encroachment of the secret state, to which too many authorities aspire.

Rugby League discovers that all publicity can be good publicity

Think the NRL is fading under a welter of controversy? Think again:

The NRL is trumpeting an increase in crowds and television ratings for 2009.

The league says crowds are up five per cent on the same time last year and have totalled 1,688,948 so far in 2009.

It says game one of the State of Origin series reached a record average of 2.322 million viewers across the five capital cities, 177,000 better than the previous best, for game three last year.

Weekly television ratings for NRL games are up 21.7 per cent in Brisbane and 14.2 per cent in Sydney.

And club memberships have grown 27 per cent with nine of the league’s 16 clubs achieving record numbers.

Of course, it helps that the competition is even and the quality of the football is high. And the publicity, even bad publicity, keeps it top of mind with the sports-loving public.

Markets are not efficient, says business school academic

No kidding, but is this another sign of a post-GFC academic trend. This article from a London Business School professor published by the Harvard Business School caught my attention:

The economist Jovanovic wrote, about a quarter of a century ago, “efficient firms grow and survive; inefficient firms decline and fail”. What he meant is that the market is Darwinian; it will rule out the least efficient firms, with habits and practices that make them perform comparatively badly, and it will make sure efficient firms prosper, so that only good business practices prevail.

Yeah right.

When you look around you, in the world of business, one sometimes can’t help wonder where Darwin went wrong… How come we see so many firms that drive us up the wall, how come we see silly business practices persist (excessive risk taking, dubious governance mechanisms, corporate sexism, grey suits and ties to name an eclectic few), and how come so many - sometimes well-educated and intelligent - people continue to have an almost unshakable belief that the market really is efficient, and that it will make the best firms prevail if you just give it time?