We're bug we've done showed its own changes. To the media -- would be reviewed television print. Bloggers whatever it may be but the call ma in USA today. And it's 101 big media companies are splitting themselves internal. Whole -- on to their sectarian sexier more lucrative property says broadcasting film to digital. And getting good at the front operations. And telling them to you the sink or swim. Scripps and Journal Communications -- -- Monday at the Tribune. Did. Tuesday Gannett the nation's largest newspaper company or group -- Cindy did. Barbara Murdoch's News Corp. and Time Warner. Moved there newspapers and magazines respectively in two separate operations. And I'm told they're fronting declining print business to protect the lines in the digital future. While. So and scary wouldn't get into that seems rather complicated. As always you're going to be experts that opens up and complicated issues of island ever witnessed. San Francisco media advisor former newspaper editor Alton teachers -- university California at Berkeley Allen walker in the short appreciated called very. Here. Can you get my daughter into university. Porn. Now -- can't get my daughter all all. All bent. Over and it really rule that is really. Think baldness. This splitting -- foot print media. Thrilled that he -- -- with a -- to do better because there most of my -- no longer. It's settled with a huge. House a second ago. The interesting thing that's been happening here over the last couple of years is that the large. Can -- conglomerate media companies that -- all sorts of media. Such as News Corp. which owns fox TV Fox News. Warner studios since not work -- -- but fox the F. And these guys were -- wrapped up together along with things like the Wall Street Journal and and local newspapers. So what's happened is over time is. That newspapers side of the business or the prince said the business in the case of time magazine that's Sports Illustrated people support. The pro business has been contracting quite dramatically in the last decade or so in and that. That that decline has -- a sort of accelerated. In recent years and so what happens is you know publicly held stocks like Gannett company Tribune Co. or -- being coordinated car. The the problems of the pro business track. You on Wall Street the overall company so the idea. In splitting up the -- division. From the rest of the business is to allow the the both sides have a house to. Maximize shareholder value it they like -- Austrian. And so what happened in the last year since News Corp. Split off. It's -- side and -- Broadcasted moviemaking -- something called 21 century fox. The value of the the -- assets of caught up one and at times faster. And the value of the prince Stockton saw the other publishers are watching missed. And they are splitting up the prints so that they can maximize the value of their broadcast and entertainment assets. And then let. The value of these publishing assets. Dot com that whatever. Leveled the market well will give it. So. The idea here is is is to make. The assets more valuable. That they're keeping as well as hopefully the cease -- increase in the value of the -- that there divesting. I wanna come back to prove but in the opening line of the US suit today -- There's spoiling a wall holding on to their sector is sexier more lucrative properties such as broadcast. Did they mean broadcast. TV news in in that pod because. I'll have to tell you the majority of people I know that are so watching. Broadcast news at 5 and 6 o'clock mostly put their -- pinnacle -- now. Oh yeah I'm one of those people so so. -- -- To date broadcasting. Is not just news it's everything on TV so it includes the super bow includes baseball games that -- It includes. Entertainment programming and everything's so. The scene be -- testing business. Is still quite. Substantial that did in terms of its revenue growth and in terms of its profitability remember every two years. What we have an election -- -- huge increase in in the an advertising. For political campaigns that are. Our repeated events such as the Olympics and so -- you know the World Series Super Bowl and so forth so. Broadcasting is still fairly healthy. In terms of the were the stability growth or growth of its revenues and the power to -- that's the problem in the case of print. For newspapers for example as it is is the number of people households taking. A daily newspapers about after the war lasted years ago. The the overall industry revenues for the newspaper business are down more than a third from where they were ten years ago. The profitability. Up the newspaper business is is is is it about a third lower than it used to be that still profitable most. Newspapers are still profitable. But there it's profitable cities to be and war but one thing that investment shell like is what profitability goes down than going out. And because revenues that continue to call for print. It's been hard to stabilize much less improve the profitability of the business. And the long term trends suggest since he just said a minute ago about people that there. He took the glass a long term transfer print is that. That audience keeps getting older and younger people in their 20s30s and forties are not likely to. Resonate -- or use the print product and I I agree with you that. That that also move. Is going to start happened in the of the broadcast studio audience as well you watch more. Media more TV than ever before but they don't park themselves on the TV do stay Tivo that day -- watchers -- and broadcasts. -- -- on the -- and so forth and so that the power. The local TV audience that's. An aggregated over the years it's starting to break apart and so you're concerned about TV. Our ballot Packers. The challenge they -- hard change. Well when we come back. Let's talk about. Then you media mogul that I see more and for your good example it. A website. So local media's side. One of their lead stories yesterday we won his. Ten pieces of proof that short plays are actually Fuzzy land manatees. And a day you worries fifty million dollars I think the last week. By investors. And their overall valuations. 850. Million. And their bears their sort of compete with the New York Times LA times Bloomberg you name it. And and who look at -- web site and it it feels like that actually quarter with -- occasional street news route through -- Let's -- what that's all about right after the repairing it about a -- -- big corporations. Are separating out different newspapers. On their own because there rug. Ankara on their bottom line. -- about the future of newsprint but to let it cycle bleak for a -- to show you how different the troop could be. I'm looking at something called -- street I'm sure you're young people rule about it. -- their top story in the Lipton and so it is so they had made their very own groovy -- From guardians of the galaxy and it's beyond groovy. And to the right is police. And the -- Missouri teen who shot by police. And this combination. Of wealth in news. God fifty million dollars delivered blows freed last week removed venture capital -- And this propel -- street value equation to about 850 million. And that's about half the market capitalization. Of the New York Times yeah and if you take a look at the New York Times they're starting to mimic bugs beads sponsored content. Where it's difficult to go where the advertising begins in the news and and vice Versa. Better understand that we have a professor -- and sentences whom do you Bonser. Former newspaper editor of proposed though when motor -- -- California at Berkeley. Probably would -- this is this where print goats. Well. We don't know our print -- and we kind of comeback that have a second -- let's talk first about the phenomenon of our digital publishing. Quite a number actually it's been there there's been a very vigorous market in the last couple of years. -- venture capital supporting a lot of different kinds of line content. Our providers every thing from the Huffington Post about the and many many more titles that -- that either firm term billiard -- -- listeners. The news and what's happening there is. Is there's there's a plane perhaps war eyeballs on the Internet and the associated advertising revenues. And these venture companies like point he just described who back. -- -- -- Are willing to invest tens of millions of dollars in building audience in the hopes it's someday that audience can be turned into something quite valuable. And they are not necessary worried about profits in the moment. The way they go after audiences by binding the most. But the most interest being this if he has the -- And articles that people share with their friends on FaceBook and Twitter. And throughout the social media that's called viral distribution disliked it disease that passed the person to person. Only in this case it's a good disease because they get more and more readers. There -- objective -- to get lapped traffic and bill basically do any thing. And sustaining thing. To get a lot of the content that they use is is is recycled more aggregated. From other people so for example Huffington Post will find it interesting article -- New York Times oftentimes but a better headline in the New York Times did. And get much more readership by on the web in the New York Times which spent may be weeks and maybe months. Researching and writing an article. And the New York Times is really getting credit that in terms of the digital audience and oftentimes. Not. Reaping nearly. Advertising supporter other revenues support that that they ought to get considering the investment they're making so what we have is that upside down. Inside out. Model it used to be that newspapers and TV stations or radio stations created -- cut then. That was the place had to go read it or hear it RC. Now anybody any work and perhaps something -- -- just creates. Re purpose that and build audience surrounded in itself that audience for money. -- interest in. Almost 101000 years ago I was in television news. And specifically remember in the celebrity one of our engineers we -- remote. And he said how about -- cable vision thing. And attitude and why -- of the interest sitting cabled sees it on and actually hit its new television. And it could be like thirty new channels. And as soon at all about that'll never work in the -- have won but that's good. What the economic. It is split grew NC buoyancy BC NBC and PP it's. Or into the or whatever it may be you and you you can't go splitting up the same economic high. And ending up with qualities total their work and of course today where 1000 channels and bugs -- and everybody else. Long. That story. To get to questions. All week Indian dog with the media primarily. That have a lot of jobs covers a lot of the landscape. But it is very little. Well I think they have. Lot of media and I think did you object in the papers that I think the going to be a lot of jobs because increasingly anybody. Anywhere -- tribute to the conversation. I inspired block they did you can start a blog you can start. Posting content. Sites like credit -- -- FaceBook keep everybody. Anybody can contribute to the media they can they can you know we you know we CDs. Cases of people being beaten by the by the cops that's happening because everybody is equipped. To be a reporter the very first picture of the the airplane that landed in the Hudson River New York was taken back and I've found who's not a barrier running rushing to rescue the passengers. He uploaded it to Twitter and so the first victory at what may be the -- from CNN was in the air time -- from the date with an act. And where oh well equipped to get cut it and these sites that I just described these digital. News sites. Actively looking operate every day every moment. Four article that they can happen that they can take in propelled their audience so they're not actually creating that much new contents. But better sort of sorting through it and editing and pushing it and so this is this just means that were awash in information all the election news. Up by the moment. But the question is who's. Actually creating content and are they trading -- that. To put the product to push a political point of view. 22. Two Porsche. Bear. Bearer. Personal prejudice -- They trying to do what you and I use to do -- we were young reporters which is go out. Go to the situation final what was happening get off -- -- try to get. A fair and full account of what we so on front so that and that that we combat journalist Michael journals of the makeup of -- else. And the question is who's going to actually do real journals and with so much content available for free. There are there -- here people going to pay people to create that. Back to the newspaper business you know. Hey we have heck yeah yeah. Only half as many -- today taken newspaper. As to the newspaper ten years ago that basically want more households actually pace and have a newspaper in -- With the industry shrinking and in the in the way that we describe before the last commercial break. One out of three news from traps in this country has been lost the last ten years. So there's plenty of people creating content including me on my iPhone and you like your -- -- But there a lot fewer paid professional journalists. Doing it today than ever before. And that in the -- if there's no. It is if it -- the traditional print model. Can't be fixed that in new models -- digital news delivery can't be created by. Newspapers TV stations and radio stations then we're gonna have a lot do you work. Journalist doing real coverage. That we have -- -- history even now will be up to our ears and -- Professor. I think you'll learn to open in the class thank you so much for the top. And they -- Like that bodes well. Good good dude thank you. Come right back boom would come back we'll talk to an analyst. Who takes a hard look at print media and media in general anything. You still gotten newspapers used to read in newspaper. Are there in the people out there that -- newspaper. My daughter's seventy I don't think I've ever talked in the body in her age group that says yeah. We get a newspaper. Give up and read some of that or part of -- Everything's Twitter FaceBook is and and web sites and apps. -- you think to Sid 01. Need somebody told 3866. -- and zero cent. Were worth thinking about written media and it also are more reverend articles and -- its -- today. And that's what the opening paragraph basically said one -- one big media companies -- splitting themselves in to. All along to holding on do theirs sexier more lucrative properties brought two home digital. And we get rid of book prone to and tell them sink or -- on -- -- and biggies are the ones doing the scripts. Tribune Co. And that. Robert -- Murdoch's. News Corp. and Time Warner. All. Move their newspapers and magazines in two separate operation. And there there -- primarily print business currently say when it comes to invest two wars. When we come to the big had -- They have been what the newspapers -- more because the thing. It's that an anchor on the profit for the overall corporation and I think. For water -- and perhaps those that have separated print media have seen. The quality. Deprived of their shares school. But to better understand this until we were there are wrong or right we have Ken doctor of Soviet analysts for outsells. Can walk from the show. And use you were actually part of this article sort of thing you know. Where we speak. To your overall thoughts about the print media. Is that sustainable. Over the long -- in the in the old time version of paper in the hand delivered on the driveway. Well it is clearly they'd declining medium and every year every week week and measured and an old newspaper this newspaper governor Ridder newspapers for 21 years but. As an analyst in these that the numbers tell the story and for print is Israel still the preference vote. An older generation which is willing to pay lower delivery down to our driveways and in our doorstep. By each successive generations under baby boomers has left preference for president. And you get into millennial. Group and it is it is digital and the idea of Reading. Arnold papyrus yesterday's news makes no sense to them. So that the writing is on the year and is the question is how Long Will print newspapers to be around. Now we've seen is as you will know what happened in New Orleans we have not seen other chains rather than advance the company you know. The times Picayune. Two. And do -- becoming increasingly in in New Orleans. But I believe by 2020. There will be many dealing newspapers that are no longer daily print it but that's still six years away so. This is kind of long decline that Sunday newspaper will be stronger. Public offering is going away which is going away in -- sense kind of -- Of that that's one of the things don't wonder I've told my ego audience. -- -- It's a little understood by active approve them and a couple of months ago. Suddenly what's average age. American white measles in the society and thought. A city Duma not accurate they did 727. Through news homer in there. So looked up and so secured website. And it says. -- reaching 65 today and there in. Holes and -- -- -- -- More than that seventeen. Years and their living on an. A bridge the bridge and totally people more. And women living in 86. As the saying one there are reports that lived in and he. What other newspaper reading. Our Barbara in best doors you -- and probably not. Looking at that them -- Well what they're looking it is. It is is that revenues and profits so. The that the main support of newspapers has never been readers it's never been reader revenue -- circulation revenue let you know what's called -- and they in the trade. They used to the American newspapers about 20%. -- at all of the revenue coming into a daily newspaper couple of readers and circulation subscriptions single copy an 80% with help from Africa. So it was always in the in the American press particularly -- -- advertisers. To really paid the bill. Now that changing to some small degree but its they're still advertising dependent. And these companies. American newspaper companies are taking in 25 billion dollars a year left. Overall mobile industry. In in advertising. Each year a compared seniors. So the -- that that's why we're seeing in the splitting of the companies in. This year different than. -- about another. And that's been the case the last three years with the sports hero he percent of and that just swamped everything else so the question and you put it together I think in in years demographic description -- right and you put it together and say okay baby boomers would like this but you know and how much -- willing -- the they've all -- stopped. 1025. And 50%. Compared with European five years ago. And so I think what happens as we get to 20282022. Is that the newspaper companies -- in the majority of Reading is mean digital. Little does help trying to -- the newspaper delivered by now it's gonna cost you four dollars a day. And they'll push and the pressure of prize will push the remaining people who preferred daily print. In two we you know whatever the iPad 23 at that point. Are deliberately to brick your -- come back. A little -- wonderful and in the story you bit I think you're cute says. Could cause -- All you can cut its and you can total and so for -- -- you'd damaged the all the Europe about you know the danger point. More talk about that when we come back. -- ego bigger celebrity jail more on -- the -- We're thinking about prudent behavior reports and -- corporations are divesting themselves. There newspaper holdings. Because. It's remarkable true idol Michael margin were true -- for a ago and profit. Think about a US say the road to the article -- and documents today is one that's been. -- loans by via the net corporation. And -- looking at this sort of court and won Hutus. Largely due to cost -- and you can -- only soup for because you damage before. David squall with the your product to the -- and report in that quote from him doctor drew boos. The order groups -- Q and on the mute for search form now -- Kill and we -- acted contenders. And they cut back so for that people debris. Well in fact it is happening and it has happened and the question is how much more it'll happen. You if you look at -- newspapers. Costs. On average ten to 50% more than they cost. Five years ago. Remember that is that you could buy it daily newspaper in these stand for a quarter. Usually -- dollars. And home delivery that is up twenty the 50%. So consumers are being charged more for it. And at the same time the product has gotten thinner and that are the physical product for the newspaper is thinner. Fewer pages fewer stories on line of course is hard hell. How many stores and have been in the fiscal product we can see it. There aren't many products you can think. That are consistently hiding in their product in terms of what it is and keep charging more for. And this is the fundamental paradox of love American daily newspapers. So that would result is that it is circulation going -- print circulation is going down not just with did readership growing. But people are saying. It's -- now or in another 25%. There another. You know two in another eighty dollars a year for the newspaper it's getting smaller smaller and yes it. So that's happening right now. And that's why I think you know we've seen this decline and decline is continuing. It's not it's no longer an if question it's a master degree. I'm looking at. So called Newt would plug -- -- and I don't know boarded their headlines. McDonald's is apologized. For one bone to swats that go -- chicken sandwich the next. Story and Robin Williams is dead. You are yesterday. Boss reviewed raised fifty million dollars from the parolee board venture capital were. Which mixed bloods to lead spot at Bellevue and about out of the New York Times. And read every New York Times is now mimicking -- -- sponsored. Content. Where is becoming -- of -- to determine whether it's news. Or. Advertising content is that were were -- Well there's been a different strand there and articulate it well -- beat some very Smart people have put it together. It is that combination. No. Incredible features. You know the plastic. Regular. Or hamburger. And and the real news of the day. People put together new -- -- social web FaceBook Twitter etc. And they -- the -- that people popular stories and then they started in in there now -- an extensive news staff. And including what does that new money that the agents for. A lot of money and so but very -- look at newspapers always did that newspapers always odd features and they had serious news. The web may. Easier to do it actually for cheaper to do it. And on a national basis it works really well really vote because now an international publications -- -- very cheap technology it and it works. On a local basis he can't. Quite do it is is in New Orleans or Miami or Seattle because you're your market is so much. Smaller and so that's the basic question of the economics of the time. And any advertising. It's all in how much you dispute disclose. The mean. That marketers that we can't blame them. The want to do more storytelling they wanna use traditional medium to. The same more than by you know by this car at this price. They wanna tell you tell you their story. Doubt there's nothing wrong with that the whole question here is. Disclosures. So that you're not confused as -- reader of what is an editorial story and what command. Feel like standing still watching the very fast for me go by and I'm not really sure what it looks like that seemed to remembers something that's called for a in. To end of real pleasure beyond the show is critically -- you have a good day. -- can break double bill brigades celebrity 153. Of them. We weren't sure -- only problem YouTube visitor for short periods times that pretty marketed or an illegal market complicated. We'll -- figured out coming objects statements WW.