Another Newspaper Gutted, This Time in Hawaii

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By Douglas A. McIntyre Published
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Another Newspaper Gutted, This Time in Hawaii

© Courtesy of Sam Choy's Kai Lanai Restaurant / Facebook

As the destruction of America’s daily newspapers accelerates due to the spread of COVID-19, one state’s largest paper will cut its staff by 50%. While papers have cut staff in dozens of cities, this is one of the worst such incidents.

The Honolulu Star-Advertiser, the largest newspaper in Hawaii by circulation, will chop its news staff by half as part of a more significant wave of firings at the property. The editorial headcount reduction includes 31 people. Other sources put the count at 29.

The union, which represents the editorial workers, proposed other solutions, which included lower pay.

The union and outsiders pointed out that the paper’s management has made a decision that would badly damage the ability to cover important issues, which include the local government. This kind of coverage has been undermined at paper after paper, as political coverage has been part of the effect of downsizing.

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Many newspapers nationwide have lost more than 10% of their revenue in each of the past two years. Advertisers have moved from physical papers to online marketing. Many subscribers have dropped the physical paper, either to read online or stop reading altogether. The erosion of print revenue has not been made up of digital dollars. Very few papers have convinced the reader to pay more than a few dollars a month for access to online editorial content. And the numbers of online subscribers also have been too small to make much of a financial difference.

The spread of COVID-19 has cut advertising revenue by 50% year over year at many papers in the first quarter. Retailers and restaurants, in particular, having lost their customers, in turn have cut ad budgets to zero.

One theory about the inability of papers to get online subscribers is that past newsroom cuts have sharply eroded the quality of the papers. This, in turn, has made them less attractive to readers. That cycle has been accelerated by the huge layoffs this year.

Very few newspapers have been able to keep digital subscriptions high and, in many cases, increase them. Among these, The New York Times is the prime example. It has over 6 million paid digital subscribers, a figure that rose by 587,000 last quarter, even as it saw ad revenue drop.

The primary reason people subscribe to The New York Times is high-quality content supported by a newsroom of 1,700. No paper in the country can come close to matching it. A second newspaper that has been able to increases subscribers is The Wall Street Journal, which also has kept a newsroom count well into the hundreds of reporters, editors and production people

The other small set of papers that has largely avoided cuts are those owned by billionaires. This includes the Washington Post, owned by Amazon.com founder Jeff Bezos. This list also includes the Boston Globe and Minneapolis Star Tribune.

Hundreds upon hundreds of papers have neither the content nor the deep pockets to hold staff at least year’s level. Some of the papers will completely disappear or have already. The number of “news deserts” in America, where there are no papers at all, is rising quickly.

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Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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