U.S. newspapers are increasing their use of co-opetition practices, that is, cooperating with competitors to reduce costs, create synergies, or reduce risk in new markets. Such activities are permissible if they are not designed to create cartels or control prices for advertising or circulation.
The latest example occurred this week when the Boston Herald announced an agreement with the Boston Globe for its competitor to print and deliver the Herald. The move creates cost savings for the Herald by allow it to cut printing, trucks, and delivery personnel, while simultaneously creating production and distribution economies and an additional revenue stream for the Globe--a win-win for both companies.
Such service agreements do not violate antitrust laws because the papers remain independent, set their own prices, and create their own content. If papers were to engage in such actions they would have to apply for an antitrust exemption under the Newspaper Preservation Act (see John C. Busterna and Robert G. Picard, Joint Operating Agreements: The Newspaper Preservation Act and its Application. Ablex, 1993), but those agreements have not proven successful in the long run.
The Boston agreement comes on the heels of numerous printing agreements, including that of the Chicago Tribune and Chicago Sun-Times, that have been made among publishers in the last couple of years.
Another example of co-opetition is seen in the 59 newspaper and information companies—including New York Times Co., McClatchy Co., Washington Post Co., E.W. Scripps Co., A.H. Belo, and Associated Press—that have now banded together to create NewsRight to track use of digital content and ease its licensing. By cooperating with each other, the companies have brought more than 800 content sites into the operation and created a significant player in the digital industry.
Daily newspaper companies have historically disliked cooperation unless it was absolutely necessary—as in the case of news services. The new types of cooperation emerging show that the preference to go it alone is being eroded by contemporary financial conditions and the difficulties of operating independently in the digital environment.
Blog Archive
Popular Posts
-
At long last we seem to be getting to the bottom of just why Graham Davis seems to think that he is an "independent journalist." I...
-
I propose to coin a term today – propagandicide. It refers to a propagandist who just doesn’t know when to back off and in making his advoca...
-
In her latest column against sustainable energy, Margaret Wente writes that, “Big Wind is among the biggest lobbyists in Washi...
-
Having once stepped over the line and commented on Fiji politics in the context of the abrogation of the Ghai Commission’s draft constituti...
-
Correction to the media: Jodie Foster was never "in the closet". All her friends, family, co-workers and many in her industry kne...
-
A counterpropagandist's work is never done. . . . Dear Editor, The next time you publish a letter from Graham Davis of Suva, Fiji ("...
-
Last night Frameline hosted one of the funnest trans music parties ever called "Trans Party" at the chic hot spot " Supperc...
-
All too often lately the major broadcast groups have been firing able and talented people to save money. Last week CBS pulled off a double f...
-
The U.S. Supreme Court has agreed to hear a case concerning vulgarity on the airwaves -- you know, Bono using the F-word in an unscripted br...
-
As an economist, Wadan Narsey has a good grasp on the centrality of journalism in a mediated society, if not on the exact processes by which...