Wednesday, December 10, 2008 | News, "Stop the Presses"
More on The Sunday Paper's expansion plans

I’ve received a ton of questions about The Sunday Paper’s expansion. So many, in fact, that it seemed like a good idea to take them straight to the source.

I’ve received a ton of questions about The Sunday Paper’s recently announced expansion plans since my column on the subject went online last Friday. So many, in fact, that it seemed like a good idea to take them straight to the source. I posed some of the more frequently asked questions to the two men behind last week’s announcement: our publisher, Patrick Best, and investor and shareholder Brian Conley, former owner of the Knoxville, Tenn. newsweekly Metro Pulse and Knoxville magazine. Here’s what they had to say.—Kevin Forest Moreau 

 

Q We’re now officially in a recession, and The Sunday Paper is feeling the effects as much as anyone. The Tribune Company just filed for Chapter 11 bankruptcy protection. Boise Weekly just called for 10 percent salary cuts. What steps are you taking to ensure that The Sunday Paper survives the current economic slump?

 

BRIAN CONLEY: The real estate business, as you know, is closely tied to the newspaper business—particularly the alternative weekly newspaper business—and has been in recession for two years. And all papers are feeling its effect. But frankly, weeklies have one great advantage over daily papers. We’re not tied to a multi-million-dollar printing press that we have to keep in motion 24/7.

 

PATRICK BEST: Also, since The Sunday Paper started just four years ago, we’ve never been dependent on classified revenue to be successful. Craig’s List was already hitting this category hard, so it was never our expectation to have classifieds be a large part of our weekly revenues. And, thankfully, we’ve developed some ancillary products that benefit from and complement our newspaper.

 

CONLEY: One big disadvantage that a lot of weeklies suffer from in times like these is that many are undercapitalized. But, fortunately, relative to a daily paper, it doesn’t take a lot of capital for a weekly to weather the storm.

 

What is it about The Sunday Paper that makes it a viable model for expansion at this time?

 

BEST:  I think it’s that we have the best product and management team in the industry. There’s certainly room for improvement—and we attempt to make the paper better every week—but I’m convinced that we’ve done all the right things over the past four years to prepare for this kind of expansion.

 

CONLEY: We understand the business. We understand the need for quality editorial content, for inspired production and artwork, for a talented, motivated sales force and for an experienced administrative staff. And this economy isn’t going to last forever. I know it seems like that sometimes, but things will get better. Now, it may not be in ’09 or even 2010, but they will get better. And real estate advertising, particularly urban real estate advertising, will come roaring back to the weeklies, because weeklies provide urban condo and apartment developers the greatest value for their advertising dollars. Weeklies have a seven-day shelf life and cost a fraction of what the dailies charge. Incidentally, it’s also a better way for car dealerships to advertise, and many of them know this, but their culture is such that it takes time to break the ties that have traditionally bound them to the dailies.

 

Additionally, the work Patrick and his team have done building the Half Off Depot brand has been phenomenal, and will prove a difference-maker for The Sunday Paper.

 

All things considered, it is a good time for The Sunday Paper to expand into Charlotte and Tampa for the same reason it has succeeded in Atlanta. It is a superior weekly newspaper, unsaddled with massive debt or unrealistic expectations, and we know how to run it profitably. It is a bright, colorful, vibrant paper. In contrast to a lot of alt-weeklies whose look and feel have grown stale, The Sunday Paper looks great every week.

 

Let’s talk about content. Any plans to change or modify the content of The Sunday Paper?

 

CONLEY: Frankly, we need to fill the void that has opened up in these markets. And The Sunday Paper can rise to that challenge with more hard-hitting, thought-provoking journalism.

 

I read recently that the owner of Creative Loafing strives for his editorial budget to account for 10 percent of gross revenues. That’s too low, and out of line with industry standards. I understand that the newspaper business is changing, and the need to incorporate the Web and other media into the equation, but we can’t abandon our core business in the process. We’re in the business of selling words, and not just any words: thoughtful, intelligent words written about interesting and pressing topics by professionally trained journalists.

 

BEST: I have to admit to being really confused by using content “aggregation” as a way to decrease editorial costs and grow your online business. If all the newspapers in the country adopted this same model, who would actually be creating the news?

 

CONLEY: We will always be looking for outstanding original content that readers can’t find anywhere else.

 

What are your plans for the flagship Atlanta paper during all this?

 

CONLEY: The same thing. We need to fill the void and strengthen our position in this market, as well.

 

BEST: Our goal is simple: to make The Sunday Paper the best newsweekly in every market we serve. We’re going to continue to invest in the product—in print and online—our distribution network and our people. Content. Content. Content. In my mind, it’s more valuable for The Sunday Paper to write one great story than to link to 1,000 published by other publications.

 

Some say that part of what led to Creative Loafing’s current financial predicament was its purchase of the Chicago Reader and the Washington City Paper. Are there any concerns about overextension with SP?

 

CONLEY: The problem did not occur when CL bought those papers. Those are great papers. The problem occurred when CL borrowed huge sums of money to purchase those papers. Our plans are to expand with equity rather than debt.

 

I suppose a concern is that Creative Loafing Charlotte and Creative Loafing Tampa will experience some sort of renaissance in the next couple of years. But it’s very difficult to move forward by going back.

 

BEST: It’s simple, really. You don’t improve your business by decreasing the quality of your products. It’s like Chrysler rolling out their 2009 models without electric windows and locks, and not lowering the prices. We know our strengths, and we know our limitations. Don’t try to be everything to everyone—focus on the things you do better than everyone else, and you will be successful.

 

CONLEY: In the alternative weekly business, you have to be new, you have to be edgy, smart, sexy, thought-provoking. You cannot afford to be stale for one moment. You have to be a change agent. SP