Rhode Island BIz Winners and Flops
Saturday, August 10, 2013
This week, nothing has dominated the discussion of business more intensely than the rapid changes in media. The national events - sale of the Boston Globe, sale of the Washington Post, announcement that AOL/Patch is closing as much as 40% of its locations are all dramatic indications of the sweeping changes affecting how and when consumer get their news. Close to home in Rhode Island, there are some clear winners in the media game - the Providence Journal's parent company released 2nd Quarter earnings as did LIN Media (parent company of WPRI-12).
AOL/Patch's retraction puts Rhode Island's 15 Patch's at risk.
WINNERS
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST- LIN Media scored a rock solid quarter: net revenues increased 36% to $164.3 million, compared to $121 million in the second quarter of 2012.
- Matter Communications, one of the fastest-growing public relations and social media firms in the country with offices in Providence was named Small PR Agency of the Year (Bronze) in the Bulldog Stars of PR Awards.
- Ad Age named Providence-based Nail Communications as the northeast's small agency of the year. In addition, the creative-boutique firm won the creative assignment for producing the creative for HealthSource RI -- the effort to launch Obamacare in RI.
- Linda Hawkins Photography: Three Photographs created by Linda Hawkins Photography in Smithfield, were accepted into the General Collection of Professional Photographers of America’s 2013 International Photographic Competition.
- Alex and Ani has partnered with the Joe Andruzzi Foundation to create the "Positive Is How I Live" expandable wire bangle as part of the Rhode Island-based lifestyle brand's charitable initiative, Charity by Design. It was specifically created for the Joe Andruzzi Foundation, a nonprofit organization with an (Up)Beat philosophy, dedicated to providing help, hope and a reason to smile for cancer patients and their families by contributing financial and emotional support.
FLOPS:
- Newspapers: make no mistake about it the sale of the combined Boston Globe and Worcester Telegram to John Henry for $70 million in cash was a death nail to newspapers across the country. The New York Times Company had paid a combined $1.4 billion for the two newspapers and some real estate over the past 20 years and de facto sold the entire collection of media assets for the value of the Globe's real estate and an extra $20 to $30 million.
- A.H. Belo, parent company of the Providence Journal: the number was just bad. Revenue from advertising, circulation and third party printing were all down in the 2nd Quarter and the poor performance of the Providence Journal was highlighted as a drag on the company's performance.
- Loss of Mike Stanton: Twenty years ago, the Providence Journal had a hot group of young reporters: Dan Barry (now at the NYTimes), Kevin Sullivan (now at the Washington Post), Dean Starkman (Wall Street Journal and now an Editor at Large with GoLocal), and Tom Frank (USAToday). The announcement this week that Stanton would follow a long list of very talented reporters, columnists and photographers out the door and in most cases out of journalism, now leaves the Projo without a branded investigative reporter.
- AOL/Patch: The vision of creating a new model for local journalism was bold. Tim Armstrong, CEO of AOL, proclaimed that his model for hyper-local journalism would be the launching pad to a re-invented AOL. Four years later, hundreds are being fired around the country. The focus of creating Patch outposts primarily in affluent suburbs proved misguided and unprofitable. Patch has lost an estimated $300 million on the venture.
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