Mediagazer: News never made money, and is unlikely to (Jack Shafer)

6:00 PM ET, August 16, 2013

Top News:

Peter Kafka / AllThingsD:

AOL Starts Patch Cuts, and Up to 500 People May Lose Their Jobs — AOL has begun making mass layoffs at its Patch unit. — By the time the cuts are over, AOL could end up reducing the local news network's 1,000-worker labor force by half, according to people familiar with the plans.

Peter Kafka / AllThingsD:

New Media Pink Slips Cost Less Than Old Media Pink Slips — One of the many differences between old media companies and new media companies: It's a lot cheaper to fire people at new media companies. — AOL says it will spend between $14 million and $18 million on “cash restructuring charges” …

Discussion: @edmundlee

Steve Kovach / Business Insider:
Here's The Story Of How AOL Fired 350 Patch Employees Today

Discussion: @stevekovach

Kim Masters / Hollywood Reporter:

Fox TV Studios Won't Produce NBC Hillary Clinton Miniseries (Exclusive) — The project has prompted the Republican National Committee to ban the network from hosting 2016 presidential debates. — The tantalizing spectacle of Fox Television Studios producing a Hillary Clinton miniseries …

Discussion: Deadline.com, New York Times, Politico, National Enquirer, Inside TV, @seanspicer, @jbflint, @hellion1111, @logandobson and The Huffington Post

Dylan Byers / Politico:

RNC's NBC, CNN boycott win for Univision — In a highly anticipated move, the Republican National Committee voted unanimously on Friday to deny NBC and CNN the rights to host or sponsor a Republican primary debate unless they cancel their respective Hillary Clinton film projects.

Discussion: Mediaite, The Week, @theplumlinegs, The Huffington Post and @thisisjorge

Zeke J Miller / TIME:

GOP Votes To Punish Networks Over Clinton Projects Read more: http://swampland.time.com/2013/08/16/ gop-will-vote-to-punish-networks-over- clinton-projects-friday/#ixzz2c985qBdX — The vote to boycott CNN and NBC as debate sponsors is expected to pass easily — Republican leaders will vote Friday …

Discussion: Mediaite, The Wrap, Reuters, The Huffington Post, Variety, @poniewozik, New York Magazine, Vanity Fair and TheBlaze.com

Barton Gellman / Washington Post:

NSA broke privacy rules thousands of times per year, audit finds — The National Security Agency has broken privacy rules or overstepped its legal authority thousands of times each year since Congress granted the agency broad new powers in 2008, according to an internal audit and other top-secret documents.

Discussion: Hillicon Valley, Politico, TechCrunch, Washington Post, Washington Post, Guardian, The New Yorker Blog, The Switch, FishbowlDC, Techdirt, ABC News, PerspecSys, @umairh, @astepanovich, Hit & Run, The Fix, Forbes, Wired.co.uk, @zeigor, ComPost, @bartongellman, @petersuderman, @washingtonpost, Firedoglake, WebProNews, Electronic Frontier Foundation, The Week, @samgustin, @7im, @xeni, @gmarkham, @justinbrookman, @davidfrum, @astepanovich, @blakehounshell, MSNBC, msnbc.com, @laurenweinstein, @alexjamesfitz, @davewiner, @antderosa, Business Insider, The Daily Caller, Engadget, Democracy in America, The Dish, WJLA-TV, @privacyint, GigaOM, Mashable, TechCrunch, CNN, New York Magazine, Softpedia News, NPR, ReadWrite, The Verge, @loteck, VentureBeat, @tonyphyrillas, @occupyoakland, @declanm, emptywheel, Mediaite, The Next Web, @feardept, BBC, @onekade, @katecrawford, @mattblaze, Mother Jones, @jamilsmith, @d_seaman, @wiretapped, @quinnnorton, @dangillmor, IRE.org, @kristinaribali, @radleybalko, @normative, @cmuratori and @boingboing

Carol D. Leonnig / Washington Post:
Court: Ability to police U.S. spying program limited

Discussion: Techdirt, Electronic Frontier Foundation, @csoghoian, The Fix, The Switch, Guardian, @randyebarnett, @washingtonpost, Hit & Run, The Week, @ggreenwald, The Verge, @privacyint, Gawker, @inego_, @ramez, @micahflee, @digiphile and @jayrosen_nyu

Jack Shafer:

News never made money, and is unlikely to — Sometime in the mid-1990s, the Web began to peel from the daily American newspaper bundle its most commercial elements, essentially the editorial sections against which advertisements could be reliably sold. Coverage of sports, business and market news …

Discussion: The FJP

Matthew Garrahan / Financial Times:

‘Gonzo’ Vice sells stake to 21st Century Fox — Vice Media, the digital media and publishing group that took basketball player Dennis Rodman to North Korea, has sold a 5 per cent stake to 21st Century Fox in a deal that values the company at $1.4bn. — The $70m deal, which will be announced on Monday …

Discussion: @adamclarkestes, @rafat, @jeffjarvis, @pkafka, @digidave, @nbj914, @rafat, @mattgarrahan and @bmorrissey

Reuters:

Former Sun-Times owner ordered to pay $4.1 million — The Securities and Exchange Commission has banned former Sun-Times owner Conrad Black from acting as a director of a U.S. company and said he must pay $4.1 million in restitution in a settlement that ends a long-standing lawsuit …

Discussion: Guardian, GlobalPost and @kevglobal

BBC: Conrad Black fined and banned by US

Michael Calderone / The Huffington Post:

Edward Snowden To HuffPost: Media Being Misled — NEW YORK — National Security Agency whistleblower Edward Snowden wants to set the record straight after individuals associated with his father have, in his words, “misled” journalists into “printing false claims about my situation.”

Discussion: Poynter, CNN, msnbc.com, The Huffington Post, FP Passport, @jayrosen_nyu, Techdirt, Globe and Mail, New York Magazine and Wall Street Journal

Jay Rosen / Pressthink:
When you're in a Fourth Estate situation

Discussion: On the Media, Kirk LaPointe's …, @jjn1, @ggreenwald, TED Blog and The Drum

Gavriel Hollander / Press Gazette:

Nick Davies joins Paul Lewis in Guardian's US team as paper bolsters stateside reporting corps — Investigative reporter Nick Davies is set to move to Los Angeles to join The Guardian's burgeoning US team. — Davies, the author of Flat Earth News, shot to prominence with his revelations …

Discussion: FishbowlNY

Anna Clark / Columbia Journalism Review:

Does Gannett think its own papers matter? — As job cuts hit the chain, coverage—and answers—are in short supply — DETROIT, MI — Want to learn what the deal is with the hundreds of layoffs unfolding at Gannett newspapers across the country? You can get slivers of the story …

Discussion: Gannett Blog

Alex Weprin / TVNewser:

Al Jazeera America HQ Flooded Shortly After Studio Tour — Al Jazeera America's New York City headquarters was temporarily evacuated and staffers were blocked from entering this afternoon due to flooding in the building. The incident comes just four days before AJAM is scheduled to launch across the country.

Discussion: Politico, TVNewser, FishbowlNY, UnBeige and AdAge

Laura Hazard Owen / GigaOM:

Bad sign for e-readers? E Ink sales plunge — Here's a sign that e-readers are struggling in the U.S.: E Ink Holdings, the Taiwan-based company that makes e-reader screens for companies such as Amazon, Barnes & Noble and Sony, just had its worst quarter in four years.

Discussion: Taipei Times and TechCrunch

Katherine Rushton / Telegraph:

News UK could face corporate charges in Britain — Rupert Murdoch's UK newspaper business is being investigated over complicity with alleged phone-hacking and bribery of police and public officials by its journalists, raising the likelihood that it will face corporate charges in Britain.

Discussion: @davidfolkenflik, @davidfolkenflik and The Independent

Economist:

Digital media: Counting the change — THIS summer a made-for-TV movie about a tornado carrying man-eating sharks was a surprise hit in America. The preposterous plot of “Sharknado” may strike a chord with media bosses who have watched the internet ravage their business over the past decade.

Discussion: @justinhendrix and @econbizfin

Rachel Bartlett / Journalism.co.uk:

Medium: One year of publishing ‘things that matter’ — Since launching in private beta last year, Medium has been building up its platform, which aims to offer a simple but ‘beautiful’ reading and writing experience — Read more — Other top stories — Also on Journalism.co.uk...

Discussion: @fmanjoo

Derek Thompson / The Atlantic Online:

The Global Dominance of ESPN — Why hasn't anybody figured out how to beat “The Worldwide Leader in Sports”? — “This is the chart I was talking about. This is powerful.” — Artie Bulgrin, ESPN's director of research, is hunched over an iPad in a wood-paneled conference room …

Discussion: The Atlantic Online, Fast Company and The Verge

Lee Smith / Weekly Standard:

Egyptian Media Creates a U.S. Senator Out of Thin Air — Who is Maurice Bonamigo? — Earlier this week, Maurice Bonamigo had strong words for the White House on its Egypt policy. “The Obama administration failed to assess the situation in Egypt,” Bonamigo told Egypt's flagship English-language media organ, the Egypt Independent.

Discussion: WorldViews, @rosiegray and Rosie Gray