The sale of the Washington Post for $250m to Amazon founder Jeff Bezos may have taken Washington DC unawares – newspaper people are good at being secretive when it matters – but nothing in this emblematic story is surprising. There’s every chance that this is a good development. Here’s why.
The Post, owned until Monday by three generations of the Graham family, had been struggling as a media business and had sought a way out by buying into businesses which looked likely to help keep the company afloat. It had become an electronic education corporation with a famous newspaper as an appendage. Last month, the company bought a furnace business; it stopped describing itself as a media business some time ago.
Editorially, the paper still holds the attention of Washington’s older movers and shakers; its reporting can still set the capital’s agenda. But advertising revenue had fallen steadily, partly because it was not recruiting younger readers in sufficient numbers. Its editorial personality has lost much of its self-confidence.
I’ve written a book (published next month) which tries to explain exactly how this kind of crisis has come about in the European and American print news media. I argue that despite the threnodies for mainstream newspapers in difficulty and decline, the future prospects for journalism are good. As it happens, the book’s graph showing how online advertising income has not compensated for the loss of print ad income uses the example of the Washington Post.