The Caller-Times build its home at 820 N. Lower Broadway in 1935. The paper has served the Corpus Christi area for 132 years. Staff Photo
A newspaper industry trend toward consolidation continues to play out in the Corpus Christi area as the hometown paper prepares for its second new owner in less than a year. In April, then owner, E.W. Scripps Company, split in two, moving the Caller-Times into the Journal Media Group, a print-oriented collection of newspapers in medium-sized markets. Scripps retained broadcast properties. On Oct. 8, Gannett, the parent company of USA Today, agreed to buy the Journal Media Group for about $280 million. The transaction should be completed in Spring 2016,
The Caller-Times began as two newspapers: the Caller in 1883 and the Times in 1917. They merged in 1929 under ownership of Houston Harte, who later formed the company Harte-Hanks Communications. In 1935, the combined Caller-Times moved into its current building at 820 North Lower Broadway. Harte-Hankes remained owner until 1997 when Scripps-Howard Group took over.
Even before the acquisition of the 15 daily and 18 weekly newspapers in the Journal Medal Group, Gannett was the largest U.S. newspaper publisher by revenue. By adding JMG papers, Gannett is expected to increase its annual revenues by $450 million. Daily circulation is expected to grow by 675,000.
According to a Gannett press release, local newspapers will experience economic efficiencies through combined operations and resources.
“Both Journal Media Group and Gannett are guided by a vision of strengthening lives and communities," said Tim Stautberg, JMG president and chief executive officer in the press release. “We’ll be better stewards in our local markets by sharing ideas, content and best practices among our new and larger family.”
According to industry analyst Ken Doctor, subscribers will see the difference between the pages of the Caller-Times.
“What’s happened elsewhere, is that USA Today sections have gone into Gannett papers, replacing local preparation of national news, sports and business,” said Doctor, author of the book “Newsonomics: Twelve New Trends That Will Shape the News You Get.” Doctor writes a weekly “Newsonomics” column for the Nieman Journalism Lab, part of the Nieman Foundation at Harvard University in Boston, Massachusetts. “Readers will find insertions of USA Today sections of about eight pages each,” he predicted, based on what has happened in other markets.
Local staffs will be told to focus more on local news and advertising, while national, centralized staffs will provide the national news coverage and ad buys, he said.
“How well does it work in execution?” Doctor asked rhetorically. “Uneven.”
A call and email request for an interview to Libby Averyt, Caller-Times publisher, were answered with the Gannett press release. Calls to an editor of one of Gannett’s recent acquisitions in Pennsylvania were referred to the publisher there, who, as of press time, has not called back.
The increased consolidation of local papers into media conglomerates is a mixed bag, according to industry analysts. The bad: fewer people control the news and ultimately it could lead to less local coverage.
Positives include the ability for many smaller newspapers to survive and the opportunity to have access to digital resources they could not afford otherwise. Also, says Gannett executives, it will mean more local coverage and emphasis — not less.
"This transaction marks a critical next step in the transformation of our industry as we build local media brands that matter at a time when operational scale is a competitive advantage," Stautberg said in the press release.
The release went on to explain that:
The combination of Journal Media Group and Gannett will create a portfolio of 106 local markets in the U.S. and will result in a combined digital audience of more than 100 million unique domestic visitors a month. The acquisition will also enable the combined company to realize significant operating efficiencies. The properties in Journal Media Group’s markets will benefit from the consolidated functions Gannett has established over the last several years. Additionally, the regional proximity of some of the Journal Media Group markets will also enable Gannett to further utilize its printing and distribution assets.
Said Averyt in the Caller-Times: "This merger is extremely positive for the Corpus Christi Caller-Times and enhances our ability to consistently serve readers and customers. We're joining the nation's largest newspaper company — one with a history of award-winning journalism and an obvious dedication to their communities. With our own rich 132-year history in this market, this move to Gannett promises a solid and long-lasting path into the future."
