Monday, September 9, 2013

Bezos takes the Reigns of a New Challenge

Adapt or die. It is a simple business phrase, yet so effective in encapsulating the shift of ownership of The Washington Post to Amazon.com founder Jeffrey P. Bezos. After a lucrative career starting and expanding the well-known online shopping community, Bezos has decided to take on the challenge of jump-starting the renowned, but struggling newspaper.

Critics of the ownership change are wary of Bezos’ lack of experience in the news industry, and worry he will change the political watchdog direction of the Post simply by moving to a more online format.

It is difficult to believe Bezos would have such interest in a $250 million purchase if he had no preplanned vision or fresh ideas for a currently stale news format. While it has been noted this purchase is not a great financial risk for the billionaire, is it foolhardy to believe this is a uncommitted decision, especially considering the faith in the sale by the Graham family, previous owners of the Post and noted for their belief of the importance of a newspaper with a strong backbone.

Meanwhile, the concern over moving the Post more wholeheartedly online and losing political clout is a popular one, but this should be addressed regardless of new ownership. The future of news is online, and this is no longer a topic of debate. In a survey conducted by Pew Research, 39 percent of responders stated they got their news online in 2012, a significant increase from 24 percent in 2004. The issues with news agencies, and specifically newspapers, today are how to distribute content online, and how to profit from it. Print advertising revenue decreased from $44.9 billion in 2003 to $18.9 billion in 2012, but online advertising revenue in 2012 was only $3.4 billion, according to Pew. With such a need for increased revenue, it is difficult to come up with a stronger candidate to lead this charge than a businessman with such an impressive track record in barrier-breaking online vending and formatting.


Where Bezos needs to be cautious is from a logistical standpoint. He has never run something with the specific complexities of a newspaper, with its own rules and regulations that the savviest entrepreneur might struggle to follow. For this reason, however, Bezos says he has no plans for a wholesale change in operations, and it is to his benefit to keep a majority of upper level staff to help him with this transition.

Bezos needs to be even more careful in how he structures his day-to-day involvement with the paper. He has stated that he plans on living in Seattle, and will not directly oversee daily news output. In a recent meeting Bezos held with staff from the Post, he said, “Don’t be boring.” Bezos needs to balance a very delicate line of involvement when dealing with an established paper and award-winning journalists. The Post will not undergo rapid change in the next few months, and as such, Bezos needs to make sure to not come off as a rich mogul from the West Coast buying a broken toy he’d have fun fixing. Phrases like “Don’t be boring,” aren’t exactly new to a news agency, and reading into such a statement as condescending wouldn’t be the biggest stretch of opinion.

Taking a step back, this is not Bezos’ first go round leading a large company. He will implement his own methods that were so successful with Amazon, while doing his best to adapt to the challenges he will face in the news industry. Adapt or die.

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