Abstract

CSJ-11-0037.0 This case examines the dilemma faced by US newspapers as they make painful business choices that have a dramatic impact on the editorial product. In late 2009, the Charlotte (NC) Observer considered whether to end its 135-year relationship with the venerable and once-indispensable wire service, the Associated Press. On the one hand, the AP provided valuable sports, business, international, and national coverage which allowed the Observer to give its readers a comprehensive daily global news report. On the other hand, many readers now turned to the Internet for at least part of their newsfeed. The case traces the deliberations of Observer Editor Rick Thames and his leadership team. Was it still the Observer ’s obligation to cover the world? Could it still afford to do so? Could it afford not to? The AP, while member-owned, charged hefty user fees to cover its own considerable expenses. How should the Observer best spend those monies?

Use this case to spark discussion among students about the changing mission of both local newspapers and the Associated Press. How might their relationship endure? What are alternatives to the existing arrangement? Also ask students to look at the content-sharing plan the Observer concludes with its media neighbors. Does the plan make sense? Does it serve readers well? How about the watchdog role of media—will that suffer? Finally, use the case to probe beneath the surface of the deepening relationship between editorial and business. Is the crumbling divide between them a bad thing? What are the implications for journalists and for news consumers?

This case can be used in a class on local journalism; the business of media; strategic management; or editorial decisionmaking.