Articles of the Day


McClatchy Eliminates Another 1,150 Jobs Or 10 Percent Of Workforce; Sees $100 Million Cost Savings — McClatchy (NYSE: MNI), whose shares have fallen from around $21 to about $3 in the last year, has announced its second big job elimination of the year: The newspaper publisher is cutting 1,150 jobs, or about 10 percent of its workforce. About half will come from “voluntary programs and managed attrition.” Excluding $20 million in severance costs, the company expects the move will save it $100 million over the next year; that represents about 6 percent of trailing twelve month expenses for the company. In June, McClatchy said it was eliminating 1,400 positions (which then also represented 10 percent of its workforce). There had been some hope that further layoffs might be avoided following a wage fr*eeze announced last month. The announcement doesn’t offer a breakdown between editorial and non-editorial eliminations, though CEO Gary Pruitt mentioned efforts to “sustain editorial quality and meet its public service journalism obligations despite some staff reductions.”

Wall St. Turmoil Not Likely To Touch Online Ad Spend; WPP’s Sorrell: Too Soon To Tell — Today’s news about the fall of Lehman Brothers, Bank of America’s planned rescue of Merrill Lynch and insurer AIG’s debt problems isn’t going to have any immediate affect on online ad spending, though residual impact could eventually cause advertisers to pullback somewhat. But for the moment, online ad expenditures are expected to remain stable, since the industry has already been bracing itself for a wider economic retrenchment that started in earnest last year when the mortgage lending crisis first hit ground. For the moment, most agencies are pretty reticent about reacting, opting for the wait and see approach. Responding to a question for what the impact of all this news is likely to have on spending, WPP Group CEO Sir Martin Sorrell said via email: “Far too early to assess, but expect continuation of current trends.”

Time Inc’s Maghound Service Launches Under the Radar; Some Majors Missing — Time Inc has quietly launched its much delayed and much-anticipated online magazine subscription website Maghound. The service, in beta, borrows concepts heavily from Netflix, in that it allows users to choose up to 15 magazines from a broad range of titles for one set monthly fee, with the ability to switch titles at any time. At launch, it has 240 titles, about 40 less that what Time Inc said at a trade show in June, Folio notes. In addition to all Time inc titles, of course, it has titles from Conde Nast (not all), Rodale, and others. Notably missing is any magazine from the Hearst stable, including Esquire, Cosmopolitan and others. Some of the other notables I checked on which are missing are The Atlantic, Business Week, Wired, The Economist, Reader’s Digest, and National Geographic .

MTVN Aims For ‘Tribes’ With Online Ad Net For Its Cable Channels — MTV Networks is readying Tribes, an online ad network tied to its various cable channels, Mediaweek reports. Tribes will pull in outside sites to establish ad sales and content syndication for MTV, VH1, Spike TV and CMT over the next several weeks. At some point after the new year, Comedy Central will get the Tribes treatment as well. Tribes is modeled on the ParentsConnect ad net, which MTVN’s Nickelodeon set up in February, with less than a dozen blogs and sites related to children’s entertainment. The company tells Mediaweek that ParentsConnect now has 46 sites, with more to come. At launch, Tribes is connected with Echo, which is comprised of several fan sites focusing on particular artists like Alicia Keys and Kanye West.

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