Select Committee on Communications Minutes of Evidence


Memorandum by Johnston Press plc

1.  How and why have the agendas of news providers changed? How has the content of news programmes and newspapers altered over the years?

  1.1  Local newspapers remain a leading channel for local news, information and advertising although they face more competition today than ever before. The media channels now available to even a small community include a variety of niche print publications, local radio, internet and, in some cases, TV. Just a few years ago, the only significant and easily accessible source of local news would have been the local newspaper which carried a full round-up of all the local events. In recent years, the local newspaper has been unable to compete with broadcast media for breaking news, a situation which is now changing with the development of local newspaper websites.

  1.2  In the past few years, the role of the local newspaper has changed. It is no longer just the paper of record carrying reactive news. We now have to be more proactive in our approach to differentiate our offering from other media, many of which are able to break news ahead of our publication times. As a result our titles have increased their focus on social concerns, leisure activities and personal interest stories whilst providing more background and analysis to news events.

  1.3  The amount of relevant local content available from sources like the emergency services and local schools has decreased as a direct result of their reaction to recent legislation such as the Data Protection Act. For instance, the police typically no longer give information about road accident victims (unless they die) and so it becomes harder to satisfy the public interest in such incidents.

  1.4  Editors have necessarily become more acutely aware of the need to present a newspaper which appeals to readers, especially at the news stand. This is particularly relevant to the choice and presentation of the main front page story.

  1.5  This approach has been supplemented by the increased use of reader research and by scrutinising our website statistics to identify those stories where interest levels appear to be greatest. In turn, this is influencing newspaper content, giving the editor more hard facts and evidence upon which to base decisions. However, the traditional role of the editor in understanding his or her audience and serving their needs remains. This of course includes putting before them issues of which they may have been unaware but are important for the well being of the community.

  1.6  The change in reader habits has also meant the amount of time they have to read newspapers has diminished and editors have responded to this by producing shorter, more focused stories and columns of news briefs.

  1.7  In a world where everything, including news, is instant and rapid there is evidence that readers in established communities are also looking for grassroots community news in a way not seen before. Big city newspapers have struggled to match this aspiration for obvious logistical reasons.

  1.8  In part to address this change, Johnston Press has been active in launching a number of community newsletters in rural and urban communities. These are very locally focussed in their content and typically they are currently free pick-up papers published on a monthly basis. A significant amount of their content is contributed by readers.

  1.9  A great deal of additional content is carried on our locally focussed websites which are closely linked to our newspapers.

  1.10  To illustrate some of the changes which have occurred, we have carried out a comparison of content on a Monday edition of the Northampton Chronicle & Echo between 20 years ago and today:

    —    Black/white Broadsheet 24 pp—now full colour tabloid 36 pp (a tabloid paper is approximately equivalent to half a broadsheet page);

    —    National and international news prominent—now just one page;

    —    Sport merely a reactive report—now proactive coverage;

    —    News includes large number of minor 999 stories—few today;

    —    Large amount of TV coverage/listings—less today;

    —    Long court story coverage—shorter today;

    —    Few reader letters—many more today plus text/website messages;

    —    Religious notices among classifieds (half page)—few today;

    —    Relatively few pictures (mainly presentations/Headshots)—many more today covering a much wider range of material;

    —    More reports on formal Community Groups, eg WI—now more general coverage; and

    —    Council coverage included long debates from meetings—now reports cover decisions.

2.  How is the way that people access the news changing? The Committee is interested in national and regional trends and figures for television, radio, newspaper and on-line news consumption

  2.1  Through a combination of print and digital channels, local newspaper publishers are reaching a larger audience than ever before. However, in terms of print publications, both daily and weekly paid-for regional newspapers have seen a decline in sales in the last five years. The larger daily titles is where the sales decline has been greatest with a fall of 22%. Weekly paid-for newspapers have been more robust but have still seen their sales fall by 3% in the same period.

  2.2  There has been a seduction in the frequency of purchase of newspapers. Although 84% of people within the catchment area of a typical regional daily newspaper will read it at sometime within a year, the number of people reading a newspaper six nights-a-week is only 21% and this has reduced from 25% in 2003.

  2.3  There has been a change in print times and consequently the on-sale time of many traditional "evening" newspapers. Bolton, York and Coventry are amongst a number of centres that have made their newspapers available in the morning at the same time as the National titles. Many of the Johnston press daily titles have moved their print times forward to maximise the daily sales window and are typically printed between 9.00 am and 10.00 am.

  2.4  Market research on Johnston Press titles suggests that the average time spent on reading a market leading paid-for newspaper is 27.5 minutes, down from 33 minutes in 2003. The principal reasons for this are believed to be the increase in the number of news and entertainment sources and the greater range of choice in leisure time pursuits.

  2.5  Whilst the overall number of outlets selling newspapers has increased there has been a decline in the number of traditional newsagents and outlets offering a home delivery service. This has dramatically changed the way our newspapers are sold with intense efforts being made to open new channels such as garages and supermarkets. Today, 49% of our newspapers are sold through traditional newsagents, 23% in Supermarkets, 16% at convenience stores and 4% from garage forecourts. Virtually none of the new outlets provide a home delivery service.

  2.6  There has been a significant growth in the distribution of free daily newspapers with the Metro distributing over 1.1 million copies everyday across the UK. London has seen the London Paper (500k copies) London Lite (410k) and City AM (93k) all launched relatively recently. In Scotland, Record PM (19.4k copies) and Herald AM (63k) distribute free copies every day. A long established regional daily, the Manchester Evening News, has adopted a part paid part free strategy and is now selling 96,000 copies (down 19.6% on 2006) and distributing a further 70,000 copies free each day in the centre of Manchester. Johnston Press has launched a number of free weekly titles to extend the daily paid-for reach in places such as Leeds, Sheffield and Peterborough.

  2.7  Digital television and digital radio provide 24 hour seven days-a-week news coverage which has significantly increased the amount and depth of news coverage available. The growth of the internet, local radio and local TV news has changed the way people access news with 53% of adults watching TV and 33% listening to local radio to access local news.

  2.8  65% of all UK adults have used the Internet in the last 12 months and 30% of these users are looking at news sources online on a daily basis. The internet provides on demand news, blogs and podcasts as well as the opportunity for readers to contribute their own views and opinions. 50% have broadband access at home (up from 39% at the start of 2006) which is enabling greater viewing of video news and clips on PC's and other mobile devices.

3.  How has the process of news gathering changed? The Committee is interested in the process of news production, the prioritisation of budgets and the deployment of journalistic resources

  3.1  At Johnston Press, expenditure on editorial resource has been maintained over the past few years despite financial pressures. It is the one area of overhead cost to have increased consistently over the past five years with a CAGR of 3%.

  3.2  Production process changes through the introduction of modem IT systems have enabled journalists to take control of the entire production process. This has been beneficial for product quality in terms of text, photographs and layout as well as journalistic quality. This applies as equally to our websites as it does to our newspapers and online their involvement now extends to the gathering, sourcing, editing and display of audio visual material.

  3.3  A fundamental change has occurred in our newsgathering operations brought about by multi channel opportunities. In the past our news-desks would create content for the newspaper and latterly this would have been used on our websites after the newspaper publication date. Today, even at our weekly newspaper offices, we are breaking news routinely each day and throughout the day on our websites. We then follow up the story in-paper often with more background and complemented by user-generated comments, pictures and video material. A recent story of a tornado hitting Peterborough provides an excellent example of this process in operation as shown in Appendix 1.[1] We are also encouraging extensive interactivity between our websites and newspapers. The multi-channel approach is becoming our embedded publishing method and is being used to complement and extend our newspaper coverage, allowing us to compete 24/7 with all other publishers, broadcasters and internet sites.

  3.4  Council coverage has changed to reflect changes in the way Councils themselves operate. Today, there is much less open debate in Council chambers with more decisions being taken behind closed doors and the outcome being managed by Press Officers. Whilst we remain as interested as ever in Council business, our emphasis has switched from monitoring debates to finding out how Council policies actually affect real people's lives.

  3.5  Courts have been regionalised and are more difficult to cover for local newspapers. Reporters used to be able to spend a day in their "local" court and come away with a number of stories. Now they are required to sit around while cases from outside their locality are covered. This has meant editors are more selective in covering them because of the consequent increased inefficiency in the use of their resources.

  3.6  The increased use of electronic communications such as fax and email coupled with the appointment of press officers means that there are fewer opportunities for face-to-face interviews with people such as council officials and senior policemen. This has led to reporters becoming more office bound.

  3.7  There arc today many more varied sources of news. Citizen Journalism (in particular submitted photographs), blogging and other interactivity are now important sources of news provision and the internet: has become a vital research tool. None of this though will replace the trained and skilled journalist's ability to separate fact from fiction and produce trustworthy reporting. This of course takes considerable investment.

4.  What is the impact of the concentration of media ownership on the balance and diversity of opinion seen in the news? Does ownership have an impact on editorial priorities and on news values such as fairness, accuracy and impartiality?

  4.1  Johnston Press has been a leading consolidator of local and regional newspapers in the UK for some years and is now the third largest publisher with 318 titles. As a leading owner, Johnston Press is acutely aware of the vital importance of publishing newspapers which appeal to the local communities they serve and which address local concerns and aspirations in a manner that reflects local interests. As such, Johnston Press has developed a comprehensive set of guidelines and structures which safeguard and encourage editorial independence and the diversity of views. At Johnston Press, we believe that consolidation in our sector has had a positive impact on editorial values and standards, thereby acting in the public interest.

  4.2  The Johnston Press Editorial Policy Guideline is set out in Appendix 2[2] and enshrines the central importance of editorial independence and the avoidance of sustained political bias other than in a small number of the Group's titles where that is the historical reflection of the community they serve, for example, the News Letter in Northern Ireland. The terms of reference for the Johnston Press Editorial Review Group which acts as the guardian of the Group's editorial policies and standards can be seen in Appendix 3.[3] The Review Group comprises a number of editors from around the Group and is chaired by one of them. There is one management representative who has an editorial background.

  4.3  The Group places particular emphasis on the process of appointing new editors and our policy for that is set out in Appendix 4.[4] It requires that an editorial representative from the Editorial Review Group be involved throughout the process.

  4.4  We also have a policy guideline which enshrines the right of editorial freedom and sets out a procedure for dealing with any related disputes. This is shown in Appendix 5.[5]

  4.5  Illustrating this freedom, titles with similar geographic boundaries are entirely free to take a different stance on any news item. A number of examples are included in Appendix 6.[6]

  4.6  This freedom extends to situations where the editorial line may not necessarily coincide with the commercial interests of the business. There have been a number of occasions when advertising has been lost as a direct result of our editorial approach and in all such cases the right of the editor to edit has been upheld. Examples are shown in Appendix 7.[7]

  4.7  The vast majority of our titles campaign vigorously on issues of public concern taking the stance which best reflects the broad public interest without being influenced by political considerations.

  4.8  The PCC's Code of Practice is reflected in the Group's editorial policy as seen in Appendix 4.[8] It is also specifically included in journalists' contracts of employment and an extract of the relevant clause from a typical contract is included at Appendix 8. Appendix 9[9] provides a copy of a similar notification which is given to each editor on appointment to draw their attention to their responsibilities under the law and the PCC's code of Practice. The Group's Code of Ethics which is made available to all employees is shown in appendix 10[10] and as highlighted in item 4, emphasises our approach to content and communities.

  4.9  All of our titles have a policy of correcting mistakes immediately they become aware of them (unless there are legal reasons not to do so).

  4.10  Typically, our newspapers carry a panel which contains the name (and sometimes the picture) of the editor and an explanation on how to make a complaint and the fact we abide by the PCC's Code of Practice. Our editors are also encouraged to state where any correction (if needed) would be published and such corrections are often printed in the same place as the original article. Where a complaint is upheld by the PCC, we comply with whatever remedies they require.

5.  How should the public interest be protected and defined in terms of news provision? Are the public interest considerations set down for Ofcom in the Communications Act 2003 enough to ensure a plurality of debating voices in the UK news media?

  5.1  Industry self-regulation through the PCC is recognised as a successful model, most recently in a report following Hearings by the House of Commons Culture, Media and Sports Committee. The PCC provides a free, fair and fast means of dealing with complaints against newspapers and enjoys industry-wide support. Its performance demonstrates considerable success in defending the public interest which would be best served by continued support for industry self-regulation.

  5.2 The fragmentation of the media and growth of the internet is increasing plurality and diversity. This is occurring without any Government intervention and in the public interest should be left to flourish. The circumstances for this to occur have never been better with barriers to entry, whether for publishing newspapers or establishing websites, at a historic low.

  5.3 Local news remains a vital component in the media mix and the regional press invests an unparalleled amount in local journalism. This is funded by advertising revenues which, in turn, are under increasing threat from other media, most notably the internet, none of which invest anything in local newsgathering. Industry consolidation has enabled efficiencies to be achieved in the production and administrative processes which, in turn, has resulted in a stronger industry, more able to survive the competitive challenges whilst maintaining its heavy investment in local journalism. This should be recognised by the Competition Authorities which have hitherto tended to take a very narrow, restrictive and unrealistic view of market definition which has, in turn, impeded the process of consolidation.

  5.4  Politicians generally express appreciation for the value and contribution of local newspapers. As noted above, the health of our industry and the quality of local newsgathering and reporting depends fundamentally on advertising revenues. For this reason alone, but also for more important social reasons, the Government should continue to utilise the local press to carry relevant advertising. Whilst Government must clearly aim to maximise value for money, exclusive reliance on their own websites would deprive a large segment of the population from access to such advertising. Local newspapers meet a vital community need by providing universal access and the Government's advertising strategy should recognise this.

  5.5  Local Authorities and Councils should be dissuaded from becoming publishers in their own right. Many distribute their own free newspapers with advertising support and some plan to launch their own broadband TV service. These activities are unlikely to be financially viable and risk distorting local media markets to the detriment of local newspaper businesses as well as imposing unnecessary costs on council tax payers and local businesses.

  5.6  To safeguard the health of the regional press, it is vital that a level playing field operates in local media markets. This is jeopardised by the expansionary plans of the BBC which enjoys the unique advantage of guaranteed inflation-proof, funding. The BBC should not be allowed to launch new services which compete in markets already well served by established commercial players. There is no clear evidence to suggest that there is an unfulfilled public need requiring the BBC to launch ultra-local TV services. If they are permitted to do so, commercial enterprises will undoubtedly be deterred from investing in such local services. The BBC's Where I Live sites are already attracting a huge audience to the detriment of local newspaper websites. And, it seems obvious that the BBC should not be involved in local magazine publishing, which is already well served by the regional press and others.

24 August 2007




1   Please refer to www.parliament.uk/parliamentary_committees/communications/wehlcommunications.cfm Back

2   Ibid. Back

3   Ibid. Back

4   Ibid. Back

5   Ibid. Back

6   Ibid. Back

7   Ibid. Back

8   Ibid. Back

9   Ibid. Back

10   Ibid. Back


 
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