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December 11, 1997: 3:29 p.m. ET
Newspaper chiefs outline their visions for print's routes to the future
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NEW YORK (CNNfn) - Internet information services should be seen not as direct competitors but as supplements to print news media, the chairmen of two of the leading U.S. newspaper publishers said Thursday.
But Jack Curly, chairman and CEO of Gannett Co. Inc., and Tony Ridder, chairman and CEO of Knight-Ridder Inc., were divided in their assessments of the need for news organizations to branch out into other media such as television.
"The last few years have been very strong for the newspaper industry," said Ridder. "And we think next year is going to be a very good year, as well."
Earlier in the week, Knight-Ridder (KRI) had announced that it would sell three publications to Community Newspaper Holdings, prompting a revival of old concerns that print is a "dinosaur" in an information sector increasingly filled with electronic news services and that the large news organizations -- such as Knight-Ridder and Gannett -- will be forced to diversify or die.
Ridder dismissed such concerns.
"The newspaper business is a great business," said Ridder. "We've just made the biggest acquisition in the history of our industry when we bought four newspapers from Disney (DIS). We think the newspaper business in print form . . . is a very, very good business."
The Internet will remain a strong part of Knight Ridder's strategy, said Ridder, although he warned that "it's easy to spend money in that area, but it's not that easy to generate revenue."
He noted that online news is taking longer than expected to become profitable, but said that Knight-Ridder is committed to being the strongest online news presence in each of the 32 communities it is committed to serving, particularly through its "Real Cities" network of Web sites.
Curly viewed the electronic media as "positive because all of the content in the newspapers is a building base for us to really leverage."
As for diversification of news companies into television, Ridder said that Knight-Ridder did not plan to diversify into active control over television stations or cable companies. Instead, the company will pursue Internet and print services.
Gannett, on the other hand, will continue to intensify its focus on the newspaper/television combination, Curly said.
Gannett (GCI) recently consolidated its cable television assets by trading local cable providers with Tele-Communications Inc. in order to build on strengths in Kansas markets.
"We looked for opportunities to consolidate just like everyone else does," said Curly. "We're always planning more acquisitions."
Both Ridder and Curly dismissed the notion that the recent economic slowdown in Asia would spread to the United States, where it might hurt print ad sales.
"I think that it's a positive piece [of news] for newspapers," said Curly, "because as the demand for newsprint in Asia is slowing, it's taking pressure off the pricing side for newsprint."
Ridder also said that a slowdown in Asia's hunger for paper would help the U.S. publishing industry keep costs down.
Both Ridder and Curly were interviewed by CNNfn while in New York attending the Paine Webber Media Conference.
-- by staff writer Scott Martin
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Knight-Ridder
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