The sad mess that is Trinity-Mirror dominates the headlines in today's newspaper business sections. And there is unanimity about the likely outcome of the review announced by chief executive Sly Bailey. Mirror may be put on the block, says the Daily Telegraph. Trinity boss ready to look at sale of national newspapers (The Times). 'Daily Mirror' may be put up for sale by Trinity (The Independent). Mirror titles may be sold as ad revenues tumble (The Guardian). The Financial Times was more circumspect, 'No sacred cows' in Trinity Mirror review.
But the overall message is clear and the problem for the whole of the traditional media sector of the advertising downturn is neatly summarised in Dan Sabbagh's column in The Times. Given my posting yesterday, Trinity-Mirror faces the point of no return, I'm unsurprised by the press reaction to Trinity's first-half figures. But I have had a couple of calls from friends reminding me that the company is still turning a healthy profit and its nationals division, in making £37.4m, is doing a great deal better than other national papers. That fact led me to reflect on the oddity of the newspaper business. At the time of the Daily Mirror's greatest political influence, when its circulation was an unprecedented 5m, the paper was barely turning a profit. This was a period of journalistic innovation, journalistic enjoyment (due in part to high salaries, boosted by bumper expenses and oceans of alcohol) and editorial over-staffing. Now the Mirror has no political clout, its sales are down to 1.6m, its journalists are sober, their expenses are policed and editorial resources are stretched.
No criticism here of editor Richard Wallace and his staff, by the way. The changes in culture and the paper's loss of influence have occurred gradually and largely precede them. As for the allocation of resources, that's outside their remit. Similarly, many problems also preceded Trinity's takeover and the later appointment of Sly Bailey. However, that doesn't excuse the current company's poor stewardship of the Mirror titles.
The truth is that running red-top national newspapers is different from running any other business, including the running of regional papers. It requires of its owners and managers a set of skills that have little to do with satisfying investors and analysts. Much of it is about instinct, risk-taking and seat-of-the-pants decision-making. Of course there needs to be a long-term strategy. But the insistent demands of competition require acute tactical responses that often require sudden tranches of internal investment. That's why Rupert Murdoch has dominated the newspaper market. Everyone points now to his deep pockets but he was once the underdog without anything like the resources of Mirror group.
With Trinity-Mirror now at the mercy of its investors who care little for journalism and care nothing for the Mirror's history or its future, there is almost no hope for the paper that played a major role in the lives of the people of Britain from the 1940s until the early 1980s.
