Half a year later, Half a year ago Honolulu's two daily newspapers began head-to-head competition in all aspects of the business.
the news war is felt
across local media
Observers say news coverage
by both Honolulu
newspapers has improvedBy Erika Engle
eengle@starbulletin.comWhile the Honolulu Star-Bulletin and the Honolulu Advertiser have been focused on each other, fighting for stories, ads and readers, their tussle is felt far from the center of the fray.
Smaller publishers of weekly advertising publications have been snapped up, both papers have launched marketing campaigns through other media, and advertisers find themselves navigating a media marketplace heavily in flux.
The newspapers ended a joint operating agreement March 15. Prior to the separation, the advertising, business and circulation functions of both papers were handled by the Hawaii Newspaper Agency. Advertisers could buy space in both papers for the same rate.No more.
That change, ironically enough, may have proven a boon for a competitor to both papers, local radio stations.
"I know our clients are paying more for print," said Jeff Hendrix, president of Hendrix Miyasaki Shin Advertising Inc.
"Before, we could buy both papers jointly and enjoy the savings," Hendrix said. "A year ago they could have both (papers) with a set budget, but now they're finding they have to make a choice."
The result, he said, may be that more companies are turning to radio for advertising.
"The newspaper wars have hurt the newspapers and helped the other guys," Hendrix said. "It's just my theory."
Some of the seven-station Clear Channel Hawaii radio group's share of the ad-dollar pie has come from both newspapers, which have purchased advertising on Clear Channel's KSSK AM/FM.
"Everybody's looking for ways to gain market share and gain exposure," said Chuck Cotton, general manager of Clear Channel Hawaii. "It's true there is added competition in the marketplace. We all have to be on top of our game to get our fair share of the revenue."
Buying advertising during the top-rated Perry and Price Show comes at premium prices, and both papers have ponied up at various times.
The new media landscape has resulted in what Cotton called "a more open attitude in terms of promotions and the exchange of ideas."
There has been an obvious impact on advertisers, Cotton said.
"They take a very close look at where they're spending their money, and have to look for the things that are going to drive customers to their places of business," he said. "There are more choices and obviously they have to carefully consider what they're doing."
What the public sees daily is each paper's effort to beat the other in terms of stories, photographs, display and classified advertising, and circulation -- the prime factor to gather more advertising.
Both papers have added news space and sparred covering the Sept. 11 terrorist attacks and the resulting downturn in the local economy. Both papers also continue publishing morning and afternoon editions -- almost unheard of in modern newspapers.
The two papers also have recently peppered each other with allegations that have drawn the independent Audit Bureau of Circulation into the fray. The bureau is a nonprofit auditing organization that verifies newspapers' circulation and has served as judge and jury in disputes, which are largely played out behind the scenes.
Oahu Publications estimates the combined reach of its three publications is nearly 400,000. That breaks down to roughly 265,000 free MidWeeks, mailed to Oahu households; 70,000 daily Honolulu Star-Bulletins, and about 40,000 weekly military newspapers. The Star-Bulletin has resumed publication of a Sunday edition under David Black's ownership, with circulation of around 85,000, according to company estimates, which have not been independently audited.
Prior to the separation, the Star-Bulletin circulated about 60,000 papers daily and did not publish on Sunday.
The Advertiser claims a daily circulation of 151,808, a 38 percent increase since the split, according to a special audit it commissioned. Its Sunday edition circulates 176,727 copies, a 4.3 percent decrease.
Advertiser and Gannett Pacific Corp. President Michael Fisch and other Advertiser executives declined to be interviewed for this story.
It's been nearly seven months since he took possession of the Honolulu Star-Bulletin and Canadian owner David Black said he's "sleeping better at night these days.
"We're very pleased, financially," Black said.
Black said he is also pleased with the performance of his Hawaii publishing arm, Oahu Publications Ltd., which operates MidWeek and military newspapers in addition to the Star-Bulletin. Revenue from the weekly publications is supporting the Star-Bulletin, which would not be independently profitable, Black said.
Black said he had expected the Star-Bulletin to initially rely on the revenue from elsewhere in the company.
Black Press Ltd., which owns Oahu Publications, also owns about 80 weekly publications in western Canada and the Pacific Northwest of the United States. The Star-Bulletin is its largest paper.
The Honolulu Advertiser, owned by the publicly traded, Virginia-based Gannett Co. Inc., has purchased community newspaper publisher PMP Co. Ltd. in Wahiawa, and two publishers of free classified advertising tabloids Pennysaver and Buy & Sell. The publications were printed by Oahu Publications' Kaneohe press operation under commercial contracts, but will now be published by The Advertiser.
"I had a meeting with the press operators," Black said. "And all they expressed was relief, they've been going so hard."
He said Star-Bulletin classified advertising has steadily risen and "is very competitive now," and that he's unconcerned about the Advertiser's new acquisitions.
Oahu Publications President Don Kendall contends that more important than overall circulation is how effective advertising is for the rate being charged.
"We are a very good value, and that discounts the mere fact that (The Advertiser) is bigger -- MidWeek and the military publications give the company the opportunity to give advertisers a level playing field," Kendall said.
The fact that two clear and distinct teams on that playing field has complicated matters for some advertisers, but, Black said, businesses gain advantage by having competitors in the market.
"You need two suppliers, and I'm sure an awful lot of advertisers want to make sure they have two suppliers," he said.
McKenna Motor Cars Inc. President Mike McKenna, who had attempted to buy the Star-Bulletin, said the competition has improved news coverage.
"I think the Star-Bulletin -- actually I should say both papers -- are doing a hell of a job," McKenna said. "Both have gotten better."
"The Advertiser does a little more national and the Star-Bulletin is getting more and more local," he said.
He said were he the Bulletin's owner, he would not be doing anything differently.
"I would have done the same thing David (Black) and Don (Kendall) are doing now, getting into the community and working with it," he said.
McKenna's company is a major advertising client for both newspapers.
"It started out that the Advertiser was stronger on the pull for us, the Bulletin was less," McKenna said. "Then it became 50-50, and now actually the Bulletin is outpulling in advertising for customers."
The company conducts its own research and runs different ads in each paper to determine which papers customers used. It also surveys customers after a sale, asking which newspaper they read.
"The Star-Bulletin's coming out better, it's getting stronger," McKenna said.
One mainland journalism expert characterized the behind the scenes battle between Honolulu's dueling daily newspapers as "scrappy."
"There are few things more important than for every city of any size to have at least two competing newspapers," said Bob Haiman, former executive editor of the St. Petersburg Times and president emeritus of the Poynter Institute, which runs professional journalism seminars.
"Without taking any sides I wish both newspapers in Honolulu luck, and I hope they both survive and prosper because the winners -- the real winners -- will be the public," he said.