Winter 2008-09 - College Funding
Vol. XXX, No. 1 - Page 4
Money woes hit campus
As commercial media face bleak profits, some students struggle to overcome bottom lines
© 2009 Student Press Law Center
By Erica Walters
Across the nation college newspapers are either struggling with money or
holding steady in a less-than-perfect economy. While college publications try to
keep their advertising revenue and readership up to avoid job cuts and losing
publication days, commercial newspapers have fallen behind.
Gannett Company Inc. publishes some of the nation's best-known
newspapers, including USA Today, 85 daily newspapers and 900 non-daily
publications. In the past year, Gannett declared it would lay off 10 percent of
its local newspaper workforce to remedy advertising revenue loss. The McClatchy
Company, another newspaper publisher that publishes 30 daily newspapers,
initiated a one-year wage freeze on all employees. With the decline in revenue
worsening for the commercial newspaper industry, some college publications are
avoiding their big brothers' fate, while others are following suit.
With a budget provided primarily by advertisers or the university, some
campus newspapers are experiencing money woes similar to their commercial
counterparts. Because of the lack of money, the content and circulation of some
student newspapers may be in jeopardy.
The Daily Bruin at the University of California at Los Angeles
receives no funding from the university and is struggling to pull in money from
advertisers, while the Red and Black at the University of Georgia, in
Athens, Ga., rebounded after seeing a decline in advertising revenue. The
Arbiter at Boise State University, in Boise, Idaho, saw its budget cut in
half.
But some papers, like the Daily Tar Heel at the University of North
Carolina at Chapel Hill, are experiencing business as usual as revenue has not
declined and no positions have needed to be cut.
Even though college newspapers are alike in their missions, they experience
different monetary fates. Recently, two national publications surveyed the
health of campus media at both independent and dependent papers and came to
glass-half-empty/glass-half-full conclusions.
Inside Higher Education published an article in September
("Print Journalism Squeeze Hits Campuses") that found a drop in
funding for several campus papers, while the Chronicle of Higher
Education published an article days later ("Student Newspapers Escape
Most Financial Problems of Larger Dailies") reporting optimism for college
newspapers.
Funding falls
The Daily Orange, an independent newspaper at Syracuse University in
Syracuse, N.Y., announced it would cut publication days from five days to four,
just as the Daily Californian, another independent newspaper at the
University of California at Berkeley, announced it would drop its Wednesday
publication.
"The Daily Cal is in a serious financial crisis from a
downturn in advertising revenue," said Bryan Thomas, editor in chief.
"We had to cut a day of publication this semester, and we've
significantly reduced other expenses, including pay for our
students."
The Daily Bruin, an independent student newspaper at
UCLA, does not receive funding from the university.
"All revenue for UCLA Student Media is generated from our own
staff," said Jeremy Wildman, business manager. "We had a poor
first month with a deep decline in national advertising, but we have had an
increase and look to have rebounded for October 2008."
The Daily Bruin's revenue has fluctuated in past years,
experiencing a decline in revenue between 2001 and 2005 while rebounding in 2006
to 2008.
Lauren Fine, research director of ContentNext, a media company that
chronicles the economic evolution of digital content that is shaping the future
of the media, said it all comes down to extracting some value for the content in
the form of a cover price and/or better advertising sales.
"Playing with the frequency is one near-term solution," she
said. Fine said creativity is key to keeping a newspaper alive.
Brad Arendt, general manager of the Arbiter, a university-sponsored
student newspaper at Boise State, said the newspaper is not doing well.
The Arbiter's funding was cut in half by a committee composed
of students, faculty and administrators in the fall, and the Arbiter lost
its second largest advertiser, which had been advertising with the newspaper for
12 years.
However, when it comes to lowering wages or cutting circulation days, he
plans to hold off on doing so.
"The economic situation has hurt us," Arendt said.
As Arendt looks toward the future, he said it is hard to predict what is
going to happen to the newspaper. He said he would rather cut circulation than
student jobs.
The Arbiter has thought about ways to ensure that it does not
venture into the red. With eroding advertisers, the average amount of 12 pages
per issue may drop to 10.
Because of a lack of funding, the newspaper had to cancel travel to two
conferences the staff planned on attending and delay the purchase of new
computers. The Arbiter staff has to deal with a lack of computers and
space for its 53 staff positions, one full-time position and 25 interns. The
Arbiter newsroom has five desks for interns, which cannot accommodate the
25 interns at once.
Arendt said the interns have to worry about the lack of space when it comes
to working and gaining experience in the newsroom. Some have to work outside the
newsroom, which hinders their hands-on internship experience.
Arendt believes that the committee that cut the newspaper's budget in
half will reinstate its budget back to its original amount and that any
miscommunication was cleared after meeting with administrators.
Miscommunication about the money the Arbiter received from student
fees, the amount of money the newspaper had in reserve and money the newspaper
made from advertisers, painted the Arbiter as having an abundance of
money.
"I have hope because the administration has recognized that we should
not have been cut," said Arendt. "They have been really
supportive."
Staying afloat
Economic shortfalls to one newspaper might be bad, but for the Good Five
Cent Cigar, the student newspaper at the University of Rhode Island at
Kingston, the state's nine-figure deficit is giving the newspaper an
overflow of stories to report. And as fruitful as the stories are, so is the
funding.
"We definitely have more full-page ads than in recent years,"
said Chloe Thompson, managing editor. " We also haven't really had
any staffing problems. The economy is giving us an overflow of stories to cover,
since Rhode Island has a deficit of more than $300 million."
The Red and Black, an independent student newspaper,
is doing fine, but Harry Montevideo, publisher of the paper, worries that
with the commercial newspaper industry faltering, recruiting students to work
for the newspaper may become difficult.
"The malaise that affects the commercial newspaper industry and other
media may make careers in newspapers or journalism less attractive to college
students," he said. "If enrollment in the journalism programs
decrease, then we might find it harder to attract students to come work for
us."
Montevideo said the Red and Black has not yet seen that happen. For
25 years, the Georgia paper has been funding a reserve "to insure
its long-term viability," he said.
The newspaper owns its own building and is free of any debts or mortgages.
Because of the economy, the paper has only seen a small decline over the past
three years. With no budget cutbacks, the newspaper staff expects to make a
slight profit in 2008, according to Montevideo.
"As with most college newspapers, we're fortunate to have
somewhat of a captive audience," Montevideo said. "Since students,
faculty and staff are required to be on campus most every day, we have a large
base of readers congregating in a relatively small geographic area."
The Red and Black offers free copies and a wide variety of content.
"There's something for everyone and very few reasons not to
pick one up," he said. "It's generally a quick read, and when
students see their friends reading copies there's also the ‘peer
pressure' factor.'"
Logan Aimone, executive director of the National Scholastic Press
Association, a non-profit educational association, said that the college
newspaper is a nicely targeted product geared towards a specific audience, but
it can still have its problems.
Aimone said college newspapers, like commercial papers, are facing revenue
shortfalls because of the economy.
"Advertisers are spending less," he said.
Montevideo said the Red and Black does not anticipate changing
anything about the newspaper.
"We think there is still a number of healthy years ahead for the
Red and Black and many other college media organizations," he
said.
Montevideo is also the chief administrative officer of a small
"not-for-profit." He manages accounting, insurance and other
managerial responsibilities at the Red and Black.
He said that like the newspaper industry, the Red and Black is
looking at ways to increase revenues from online publishing, but the paper is
having similar problems as commercial newspapers with generating the same dollar
levels online as they do in print.
"I think for the short-term and perhaps as long as students continue
to read our printed products, we'll be OK," he said.
"Long-term, I think we'll have to be more innovative in finding ways
to connect our community with the businesses they patronize and
vice-versa."
But after being in the newspaper industry for many years, Montevideo admits
he does not have a quick solution to the economic problems in the
industry.
"I wish I had a formula to share, and I've been doing this for
almost 30 years now," said Montevideo. "But so much has changed with
the Internet, the problems commercial newspapers are having with readership and
now the economy."
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