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A New Newspaper with a New Formula Succeeds in Slovenia's Emergent
Democracy: A Case Study of Finance
Submission to: AEJMC Conference 2005
International Communication Division (ICD)
Authors/Affiliations: Martine Robinson Beachboard
Assistant Professor
Department of Mass Communication
Idaho State University
John C. Beachboard
Assistant Professor
College of Business
Idaho State University
Mailing address: Martine Robinson Beachboard
Campus Box 8166
Idaho State University
Pocatello, ID 83209
Telephone number: (208) 282-5395
Fax number: (208) 282-2258
e-mail address: [log in to unmask]
Abstract
As post-communist societies emerge from Eastern Europe, journalists
learn to cope with both political and financial pressures. The
transition to market-driven print media evokes questions about the
viability of quality journalism serving public interest and promoting
democracy and plurality of voice. This paper investigates Slovenia's
post-independence start-up newspaper Finance and offers some
provocative insights to the proposition that investment by foreign
media conglomerates might provide independence from local political
and advertiser influence.
Submission to: AEJMC Conference 2005
International Communication Division (ICD)
A New Newspaper with a New Formula Succeeds in Slovenia's Emergent
Democracy: A Case Study of Finance
Abstract
As post-communist societies emerge from Eastern Europe, journalists
learn to cope with both political and financial pressures. The
transition to market-driven print media evokes questions about the
viability of quality journalism serving public interest and promoting
democracy and plurality of voice. This paper investigates Slovenia's
post-independence start-up newspaper Finance and offers some
provocative insights to the proposition that investment by foreign
media conglomerates might provide independence from local political
and advertiser influence.
"Democracy is the worst form of government except all those other
forms that have been tried."
~ Winston Churchill
A New Newspaper with a New Formula Succeeds in Slovenia's Emergent
Democracy: A Case Study of Finance
[Authors' names withheld pending review]
Submission to AEJMC Conference 2005, International Communication Division (ICD)
Introduction, Background and Motivation for This Study
Churchill's quip regarding the relative merits of alternative forms
of government might well be paraphrased to apply to options for
funding journalism: Market-driven journalism, as commonly practiced
in western democracies, seems to be the worst form of journalism
except for all those other forms that have been tried. The authors'
recent research into the evolving practice of print journalism in
Slovenia and the specific investigation of the business news
publication Finance offer some unique and provocative insights on
this proposition.
Two major but related streams of critical research relating to
shortcomings of market-driven journalism are especially relevant to
the purposes of this study. One stream laments the gradual
diminution of quality hard-news reporting in the public interest and
its increasing replacement with superficial information,
sensationalistic news and celebrity gossip (Ansolabehere & Iyengar,
1997; McChesney, 1999; Postman, 1986). The second critical stream
addresses the implications of media ownership by a large and
transnational conglomerates under the loosely defined rubrics of
media globalization and cultural imperialism (Demers, 1999; Downing,
1996; Hamelink, 1994; Herman & McChesney, 1997; Hollifield, 2001;
IPI, 2004; McPhail, 1987; Schiller, 1976; Thompson, 1997; Tomlinson,
1991) A chief concern here is that increasing consolidation,
globalization and deregulation of media conglomerates has been
"preparing the way for the inexorable advance of a 'one-dimensional'
capitalist culture" (Tomlinson, 1991, p. 120).
Thus it is interesting to find a newspaper editor in a small, newly
democratized country who welcomes ownership by a foreign media
conglomerate because of the benefits that such investment can
provide. This case studies a relatively new and successful start-up
newspaper in the Southeastern European republic of Slovenia which was
liberated from Yugoslavia and communist influence in 1991.
Three Slovenian Start-Up Failures, Three Successes
The authors believe that hard-news journalism plays important roles
in society and that quality journalistic practice must be nurtured to
more effectively serve the needs of societies. We appreciate the
concerns of scholars and social critics who fear that the
profit-maximizing behavior of media conglomerates diminishes quality
of news reporting and pluralism of voice in the marketplace of ideas
(McManus, 1994). Questioning whether western models of journalism
will necessarily prevail in the democracies emerging from formerly
communist European nations, the authors conceived a project to
investigate the post-independence evolution of print journalism in
the former Yugoslavia. We selected Slovenia to study due to its
relative economic and political stability and its stronger western
orientation relative to other formerly communist nations.[1]
After Slovenia declared its independence in June 1991, its
expresident Milan Kucan made these predictions concerning the world
around him: "Nothing will remain the way it was. Naturally,
newspapers are the exception" (Frankl, 2004). Some observers hoped
the new democracy would see a proliferation of new news dailies,
increasing the quality and diversity of reporting. In fact, there
have been changes in the Slovenian media space, though perhaps not
entirely consistent with Kucan's vision. The major news publications
existing prior to Slovenian independence remain today: Delo and
Dnevnik published in Ljubljana, Vecer published in Maribor, and the
alternative weekly Mladina. Three post-independence general-interest
newspapers started in the 1990s failed: Slovenec, Republika and
Jutranjik. While an analysis of these failures is beyond the scope
of this paper, multiple sources indicated that the Slovenian public
was offended by strong political positions reflected in their
editorial content (Bervar, 2001; Frankl, 2005; Slovenian Journalist,
2004; Hrvatin, Kucic & Petkovic, 2004).
Meanwhile, three special-interest publications succeeded: Slovenske
Novice, which has the largest circulation of any newspaper in the
country (107,000) but is considered to be of "yellow" tabloid quality
(Bervar, 2001; Slovenian Journalist, 2004), Ekipa sports daily, and
the business daily Finance The last of these, Finance, published in
Ljubljana, provides a particularly revelatory case (Yin, 1994;
Eisenhardt, 1989) for empirically examining a specific example of
foreign ownership and its influence on the availability of news
content in Slovenia.
Research Question
This situation led to the development of the following research
question: What can be learned about the implications of foreign
ownership for journalism quality from the examination of a
post-independence start-up news publication in an emergent democracy?
In writing this case, the authors neither explicitly challenge nor
support the critical narratives informing global media
studies. Rather, we seek to provide a fair and transparent
interpretation of the experiences and perspectives of actors directly
involved in the production of news. We seek to represent "local
knowledge" (Geertz, 1985) and in so doing to provide an additional
perspective for those seeking to construct theoretical bases for the
formulation of national policies governing ownership, production and
dissemination of news-related media.
Methodology: An Interpretivist Case-Study Design
This study employs a case-study design intended to provide a
fine-grained examination of the creation and operation of the
Slovenian business daily newspaper Finance. The purpose is not to
extend theory but to provide a basis for evaluating it by
representing and necessarily interpreting the lived experience of
actors directly involved with the production of news products. The
research takes an interpretive philosophical approach illustrated by
an analogy developed by Slife and Williams (1995, p. 87). In
describing interpretive ways of knowing, they ask the reader to
consider the difference between a map of a city and an informal
account of that city provided by a resident. The map, while
admittedly an interpretation, represents an abstraction of an
objective reality, depicting "only those features of the place that
would remain unchanged if no one lived there (e.g., patterns of
streets, layouts of buildings)." The informal account is quite
different although ultimately as informative or even more so. While
"necessarily personal, incomplete and biased…" the personal account
might describe the best places to eat or sections of towns to
avoid. By providing such description, the informal account "gives
meaning to the town, from a native's point of view." Certainly not
the only description or possible interpretation but legitimate nonetheless.
As are many scholars, we are interested in the consequences of
increasing dominance of media production by transnational
conglomerates, in particular attempting to understand the effects of
foreign media ownership on local news production and
consumption. The Finance case merited study because it appeared to
contradict commonly held assumptions concerning transnational media
domination and ownership, highlighting a continuing need to study the
particular as well as the general and to employ multiple research
methods (Hollifield, 2001; Yin, 1994; March, Sproull & Tamuz, 1991;
Stake, 1994).
Research activities and processes included in this study can be
grouped into the following categories:
• Case selection. Finance is notable as the only daily hard-news
publication established in post-communist Slovenia that has survived
until today. We acknowledge that Finance, as a business news
publication, occupies a market segment distinct from the newspapers
that failed. Despite this limitation, it merits study due to its
approach in selecting and presenting content and its increasing
readership in political and business sectors.
• Data collection. While documentary evidence was examined, the
primary data sources were face-to-face interviews with key informants
at Finance. Additional interviews were conducted with journalists,
Slovenian academicians and officials from the Slovenian Ministry of
Information. The selection of participants was purposive, and
snowball techniques identified additional informants. Interviews
were organized around the research question but were conducted using
the "active interview" approach (Holstein & Gubrium, 1994). With the
permission of the study participants, researchers tape-recorded
interviews. The primary author conducted follow-up telephonic
interviews and e-mail exchanges with multiple study
participants. While the authors did not promise participants
confidentiality, we felt some revelations might be sensitive enough
to merit protection. Thus, while we are able to specifically
identify the sources of quotes used, we have attempted to be discreet
about revealing some identities.
• Data analysis. Analysis consisted primarily of the creation of a
case narrative that seeks to accurately reflect interviewee
perceptions respecting answers to the research question. The
objective was to develop an accurate and rich description of a
phenomenon as seen through the eyes of the study
participants. Related literature is referenced to provide useful context.
• Validity and reliability assessments. The authors used the results
of the unstructured interviews to develop narrative themes
representing participants' varied perspectives. Where possible, we
used participant checks to test whether our interpretation of
interview data fairly represents participant views (Miles & Huberman,
1994; Altheide & Johnson, 1994; Patton, 2002).
These procedures demonstrate the authors' commitment to employing
disciplined data elicitation and analysis techniques consistent with
recommendations of leading qualitative researchers and methodologists.
Given the interpretive philosophy guiding the design and execution of
this study and consistent with a recommended approach for writing
qualitative research, we present the study findings first and then
introduce relevant literature in our interpretation of the data
(Creswell, 1994).
In the remainder of this paper, we first briefly describe Slovenia's
unique history. Next we provide an overview of the Slovenian print
media landscape in which Finance competes. We then describe the
publication's mission, history and services. This context provides a
backdrop for encountering the chief editor's perspective regarding
the role played by Finance in the Slovenian media market, and the
impact foreign investment has had on Finance's development and the
quality of services it is able to provide to its readership. The
paper closes with an interpretation of this case within the broader
context of global media studies.
Historical Context of Slovenian Media[2]
While the authors acknowledge their affinity for examining historical
context, study participants insisted this was vital to understanding
current challenges and practices: First you must understand our
history, they would say; it is different; it influences what we do,
how we think today. Slovenia always was unique among Yugoslavian
republics and from Central and Eastern European states emerging from
Soviet domination. Slovenia has been more westward-oriented. Not
only is it geographically the most western territory in the former
Yugoslavia, but German nobility ruled local populations beginning
before 1000 AD, and German immigrants established towns and
businesses in the region. Slovenia had the strongest economy of the
Yugoslavian republics. Josip Broz, Tito's "third way" to socialism
permitted a degree of regional autonomy and private-sector economic
activity even in a system of centralized political control (Campbell,
1980; Lydall, 1987). In the view of study participants, these
factors helped prepare Slovenia to make the transition to a
democratic, market-oriented economy.
Slovenian print media, even under communism, had some tradition of
market support. In 1945 Tito was able to break away from
Stalin. The communist party was interested in media but did little
to fund media aside from public television. The communist government
did provide a safety net which kept newspapers from going bankrupt,
but major earnings came from subscriptions and advertising (Frankl,
2004; Hrvatin et al., 2004).
In post-independence Slovenia, there are half a dozen major news
publications, about the same as under communism. However, there are
not as many different editorial perspectives as this number might
imply due to media ownership concentration in terms of political and
economic influence. As Hrvatin et al. (2004) point out, a
significant lack of ownership transparency can conceal the identities
of media "controlling" interests. They indicate extensive direct
media cross-ownership and further indirect cross-ownership at
parent-company levels. More alarmingly, they report strong ties
between leading political and business interests, suggesting the
potential for political and economic collusion. Members of media
governing boards "are chairpersons of the largest Slovenian companies
(which are also the largest advertisers), owners of advertising
agencies and chairpersons or supervisory board members of the largest
banks. This means that media power is closely connected with
economic power…" (Hrvatin et al., 2004, p. 477).
Finance has survived and grown the past 13 years with an injection of
foreign media-conglomerate investment and a modern approach to
writing and editing. The newspaper has a typical press run of 24
tabloid-size pages and a paid circulation of 10,000. By way of
comparison, the most widely read serious newspaper in Slovenia, the
generally respected Delo, has a circulation of 90,000. Slovenia's
news publications have the circulation sizes and numbers of employees
indicated at Table 1. Alternative though similar figures are
available from Freedom House (2003).
Table 1. Major Slovenian Publications' Circulation and Staff Sizes*
Publications
Circulation
Readership
Employees (Journalists)
Daily Newspapers
Slovenske Novice
107,000
355,000
n/a
Delo
90,000
237,000
452 (165)
Dnevnik
66,000
159,000
226 (71)
Vecer
62,000
170,000
231 (71)
Ekipa
25,000
n/a
n/a
Finance (business daily)
10,000
36,000
110 (50)
Weekly Publications
n/a
Mladina
19,300
102,000
n/a
Mag
17,000
58,000
n/a
Žurnal (free distribution)
214,000
n/a
n/a
* Circulation and readership based on Hrvatin et al. (2004, p. 61);
numbers of employees from websites and interviews.
The Finance Case Description
This section examines the particular case of Finance, a business
daily newspaper whose primary focus is on reporting economic and
economically relevant news to the Slovenian business community. In
Finance's own words, it seeks to offer businesspeople "breaking
business news, exclusive coverage" and a determination "always to be
the first to know and the one to bring superior understanding of the
business environment to all interested" (Finance, 2005). In addition
to reporting economic news originating in Slovenia, Finance acts as a
Slovenian language conduit for reporting international business news
to the Slovenian business community and, with the addition of English
language pages to its print and new-media products, provides
Slovenian business news to the international business community.
Finance's core product and revenue source is its print-version
daily. It has expanded its reach by adding traditional- and
new-media products to reach a wider market and promote subscription
to its print edition. The website at <finance-on.net> reaches 50,000
unique users per month, a "Business Morning" daily e-mail service has
more than 20,000 subscribers, and a text-only e-mail product called
"Radar," which matches information to user interests, has 3,000
users. The Finance brand authors a television morning show of three
to four minutes, and twice weekly radio programs. While relatively
small, Finance views itself as a multi-media information services
company. "We do not consider ourselves only as a daily
newspaper. We are a service company. We distribute information and
opinions and entertainment," said editor-in-chief Peter Frankl (2004).
The inception of the Finance publication dates to the first year
following Slovenian independence. Upon the country's 1991
declaration of independence from Yugoslavia and with the advent of
democracy, a Slovenian publishing group called Gospodarski vestnik
(GV) saw an opportunity to create a business-oriented publication
focusing on the financial information needs of Slovenia's emerging
market economy. Finance, funded in part with government
privatization funds, was first published as a biweekly specialty
newspaper in 1992. In 1999, GV partnered with Dagens Industri (DI),
selling a 48.6-percent in Finance. This DI is the business press
segment of one of the largest European media conglomerates, the
Swedish publishing group Bonnier AB which owns newspapers in Denmark,
Estonia, Latvia, Lithuania, Poland, Russia, Slovenia and Sweden as
well as a 50-percent stake in the Austrian business daily
Wirtschaftsblatt (Finance, 2005). The strength of the editorial
product combined with the injection of Bonnier capital enabled
Finance to start appearing five times a week in 2001. In 2002
Finance showed its first profit. "It was a small profit. But it is
not a large project. Total investment in the enterprise was about
2.8 million euros" (Frankl, 2004). Bonnier subsequently bought out
Gospodarski vestnik, which dissolved in February 2005; thus, Bonnier
is now essentially the 100 percent owner of Finance.
The company Casnik Finance, d.o.o. is managed by Jurij Giacomeli as
managing director with Frankl as editor-in-chief. Frankl began his
journalism career in 1990 with major daily Delo. He later worked for
Gospodarski vestnik business weekly, joining Finance at its inception
and becoming its editor-in-chief in 1995. Newspaper employees total
110 people in all departments; 50 of these workers are journalists.
The original readers of Finance were entrepreneurs, managers from
large companies, college students, "decision makers and opinion
leaders and officials in state institutions… and more affluent
readers who are attractive to advertisers." Later the readership
appeal broadened to include "people who deal with money – which is
almost everyone," as Frankl said. In contrast to reading habits in
some of their neighboring countries, Slovenians tend to remain loyal
to a single daily newspaper. Consequently, most readers of Finance
also read one of the major dailies, usually Delo.
The Economics of Finance
Finance may serve the public interest but certainly it is not purely
a public service project. "If we want to contribute to society, yes,
we also have a purpose to make money," Frankl said. Some 70 percent
of Finance's revenues come from advertising and 30 percent from
circulation sales. Major advertiser categories include banking
concerns, information and communications technology firms, computer
manufacturers, construction, financial investment firms, automotive,
travel and alcohol. Much of the advertising is
business-to-business. A four-color, full-page ad in the print
edition costs 3,200 euros. Other 2005 advertising options and rates
are displayed at Table 2. The newsstand price of Finance, 1.30
euros, is about twice as high as that of a general daily, not unusual
for a business publication.
Table 2. Finance Advertising Rates in 2005
Advertising Product
Cost
Print ad open rate
30 euros per 10-mm column
Print ad, four-color, full-page
3,200 euros
Print ad, front-page
500+ euros
Web banner
415+ euros per week
Web section sponsorship
205+ euros per week
"Business Morning" e-mail bulletin
205+ euros per week
Web business-portrait expansion
210 euros for six months
Web surround session
640 euros per day
Web floating ad
30+ euro cost-per-thousand
Rates available at <finance.com>.
When Finance news products appear on other Slovenian media vehicles,
as in the case of Finance's TV broadcast, money does not change
hands. Rather, the relationship is what might be called symbiotic
(Croteau & Hoynes, 2002). "We don't pay them; they don't pay us. We
have exclusive news that television does not have. They are
interested in our editorial material. We don't have funds to finance
our own TV station, which, for example, Financial Times has. We will
never have that because our market is not a global market. So we
have to… be more inventive" (Frankl, 2004).
The extension of Finance's content distribution capabilities through
collaboration with other media is not just Frankl's philosophy but
the philosophy of the Bonnier group: "You should consider yourself
as a service company giving your audience the service it pays you
for, and you disseminate this service [through] different
media. [These] media will distribute hot news to the audience; this
will give more value added than print," Frankl said (2004).
One challenge Finance does not face, financially and otherwise, which
the major dailies do, is funding international news coverage. Having
reporters travel to other countries is not part of its agenda. "We
are local. We cannot replace the International Times. We find the
Slovenian perspective." The newspaper does use stringers and other
"collaborators" to augment information provided by Reuters and
Bloomberg information services, Frankl said.
In terms of economic viability, Finance currently earns a profit of
about five to six percent. Bonnier's DI division targets an 18
percent return on investment, and Frankl believes that Finance is
moving in the right direction to eventually achieve this
target. Frankl equivocated a bit concerning how Finance salaries
compare with those of competitors. "Maybe we pay them a little
less. Maybe, maybe not…. We have to compete with big newspapers on
the labor market, so, yes, we have to pay." In any case, operating
in Europe, the company is obliged to offer its employees health benefits.
The View from the Newsroom
The researchers' interest in Finance was piqued by comments heard in
an interview with a Slovenian university professor concerning its
unique business model. Consistent with the objectives of our broader
study, our interviews at Finance focused on the state of Slovenian
journalism and Finance's role within this broader landscape. The
primary themes addressed below concern the overall quality of
journalistic practices – Finance's vis-ŕ-vis Slovenia's major news
dailies – and perceived constraints influencing journalistic
quality. We start by presenting the views of Frankl, the aggressive
managing editor of the Finance, and then contrast his views with
observations and comments provided by a variety of sources from
Slovenian journalists, officials and scholars.
Quality Journalism: Public Interest or Interesting the
Public? "People need honest information; they want to exchange
views. And newspapers are an important infrastructure for that," as
Frankl said. "Quality" in journalism generally means media
supporting "public interest" in preference to "what interests the
public"[3] (Johnson, 2004; McChesney, 1999; Minow & Lamay,
1995). For the Finance editor, quality journalism entails
both. After all, a newspaper must be compelling enough to be
consumed in order to stay in business, or it won't have any effect on
society at all.
The traditional major dailies in Slovenia feature longer stories and
grayer pages, whereas Finance, printed on pale-pink paper, runs many
short stories, photos on every page, charts and graphs, and
bright-red section headings. The contrast is intentional. For
Frankl deficiencies in quality of journalism as practiced in Slovenia
have multiple causes: political and financial pressures, outmoded
routines and lack of motivation, the latter of which may be legacies
of 40-plus years of communist rule (Frankl, 2004; Ministry of
Information, 2004; Slovenian Journalist, 2004). These factors lead
to two major problems: circumscription of what is covered and the
diminution of what is read.
Direct political pressure on journalists in Slovenia is much less now
than under communism. Journalists no longer need fear that if they
"go too far" the police will come to the door, as one interviewee put
it. However, if coercive political pressure has lessened in the past
decade, more subtle political influence and financial pressure and
have been noted.
"What is worse, I don't know: private monopoly or state-owned
monopoly," Frankl said (2005). There can be combinations of
political and financial pressure in a system where there are strong
ties between leading political and business interests, where heads of
the largest Slovenian companies hold chairs on media governing boards
(Hrvatin et al., 2004, p. 477). For Frankl the way to avoid this
local politico-financial grip is investment from outside national
borders. He endorses foreign investment in Slovenian journalism,
even when it comes from a large conglomerate. For him, academicians'
concerns about threats of foreign ownership are "typical Central
European" foolishness prompted by fear of stakeholder power's
affecting editorial autonomy. "The true threat is local corporate
monopolies and state-owned corporations," he said (Frankl, 2005).
For Frankl, issues of political and financial influence are not
theoretical. They impinge on day-to-day operation of his newspaper
and directly impact the quality of journalism, although his views
regarding privatized news media and the consequences of foreign
investment may be at odds with accepted wisdom. There is a Slovenian
political leader now, he said, "who tries to pose himself as a strong
leader, and he has some similarities… to Berlusconi in Italy…. Those
two guys exercise their power in different ways because Berlusconi
owns the media and in our case he doesn't own the media but he does
own the media!" (Frankl, 2004). Frankl's company's owner, Bonnier AB
of Sweden, he said, has given Finance autonomy from "local centers of
power, from the influence of politicians and advertisers. Yes, we
still feel pressure, but if it were Slovenian corporate pressure,
then it might be more effective" (Frankl, 2005). Thus, in Frankl's
view, plurality of voice is enhanced by external financial
investment; "the emergence of new daily papers becomes more difficult
if the law limits maximum newspaper ownership percentages" (Frankl, 2003).
In commenting on the quality of Slovenian journalism, Frankl said if
the typical Slovenian journalist finds out something irregular is
going on, he or she is unlikely to report on it if the information
was not disseminated through proper means, "and a press conference is
considered to be proper. It's very easy to report honestly on the
events of the previous day: 'He said that, she said that.' This is
a press conference," Frankl said. But it is not enough. This
restricts the range of stories covered. It does not educate or
enlighten or provide useful insight or analysis.
Frankl opines that poor-quality journalism exists because it is
relatively easy to produce. This circumstance reflects professional
routines of the traditional communist era when reporters were not
accustomed to conducting aggressive investigative
journalism. Currently Slovenian journalists "are not very
controversial because they like their quality of life which is at the
moment pretty high" (Frankl, 2004). An applicable American idiom
might be, Why rock the boat? Until a couple of years ago, the
Slovenian press was reluctant to criticize the government, individual
politicians or corporations, Frankl said. "Something really, really
bad would have to happen for most newspapers to publish a story on
corruption in a state-owned company which advertises with their
newspaper... They are aware of corruption, but they don't write
about it, because it would mean trouble with management of the media,
so they don't care. It takes a lot of editorial stamina to criticize
on a personal level. Why should you be a revolutionary if everything
[in your personal life] is fine? They work from 9 to 5, they go
home, they have their lives, they travel, fine. They have a good life."
He perceives his publication to have helped break that barrier. "We
started a new culture… one that keeps its distance from special
interests…. We publish stories on some actual corruption in some
state-owned company, and nobody else publishes that. They publish a
story on corruption in a state institution but not where advertisers
are." Has Finance ever lost advertisers due to failure to yield to
their demands? "Yes, but they come back…" They return because they
recognize Finance as a valuable vehicle for reaching their target consumers.
Testifying to the business daily's tenacity or to what Frankl calls
"editorial stamina" is a January 2005 lawsuit involving
Finance. Varis-Lendava, a Slovenian manufacturer of bathroom
fixtures and likely a potential advertiser, sought a court order to
prevent Finance from reporting on a lawsuit pending against it in
Augsburg, Germany. So Finance management found itself in court but
seemed confident of prevailing (Slovenia Bulletin, 2005).
Although some journalists interviewed in our broader study admitted
that Slovenian journalists censored themselves, Frankl was proud to
say, "We don't practice self-censorship." And if news sources are
unhappy with the paper's reporting? "Well, we 'kill' sources. If he
doesn't like it, then you just 'kill him' and you go to another who
will talk to you. I have killed quite a few sources." Frankl said
this philosophy was "partly introduced" by the newspaper's Swedish
owners, adding that "it had to be this way" because Bonnier owns
newspapers in multiple ex-socialist countries including Latvia,
Estonia, Lithuania, Poland and Russia, and it seeks to uniformly
apply a new journalism standard in these emergent democracies (Frankl, 2005).
Asked for an example of its editorial perspectives and quality
in-depth reporting, Frankl noted his newspaper's editorial support of
European Union accession. "We were very 'pro.' We did a big
supplement on that. We were pro and also did quite some work on
explaining what the role of the European Union is, what will happen…
how our lives will change, how business will change." The newspaper
published a special educational supplement on the EU and its
implications one week before the accession. That edition of the
paper, 24 April 2004, was 56 pages. Asked if his country's
journalists generally educate [rather than just inform] readers,
Frankl said, "I don't think Slovenian newspapers educate [readers] a
lot. Education means more work… To educate, you have to first want
to educate. You have to be more vivid, write better, give more
historical background, draw timelines, fight for attention. I have
examples of newspapers we can go to," he said, walking from his
office into the newsroom to point out other publications. "They are
just boring. Why on earth should they do that? [There is] no need
to do that." Such newspapers will die, he said, because they are
written in a traditional European manner, with lengthy text which
does not appeal to today's readers.
In writing style, most Slovenian newspapers tend to emulate
traditional, old-style Central European newspapers. Delo, Slovenia's
largest daily, "models itself after German newspapers…" (Veteran
Journalist, 2004). "The results are lengthy, wordy articles and gray
pages, not appealing to young and busy readers…. And it's also
boring," Frankl insisted, and boring will not survive (Frankl, 2004).
This old style is not necessarily tied to political
ideology. Journalism can be dry and boring under communism or
capitalism, Frankl said. For example, he said, "the [German]
Frankfurter Algemeine is very communist… and very boring." Long
articles are often an excuse to write badly." Frankl is passionate
on this subject, predicting that Slovenian newspapers as well as
traditional German newspapers will need to "invest more into making
communication more efficient…. They are boring, and they will have
to change. And this will be a problem. It will be a
process." Print media "just have to adapt to the fact people have
less time to read," he said. "They will have to introduce new
solutions" (Frankl, 2004).
Other Perspectives on Finance. If Frankl believes he has found the
optimal formula for Slovenian journalism, not everyone agrees. Some
observers find Finance a bit sensationalistic. It is less formal in
writing style than its competitors. It may even be perceived as
"yellow" by some journalists, Frankl said. Another journalist
interviewed for this study commented that Finance was "quite tabloid
in style" but "not really yellow," observing that it may occasionally
print gossip but "sometimes the gossip turns out to be true." And
Finance "does have some good sources," that journalist added
(Slovenian Journalist, 2004). A Slovenian Ministry of Information
employee commented that Finance is "more or less yellow," adding
that, "it is true that they tackle almost every relevant topic" but
that its reporting is too "sensationalistic" and "bombastic" for it
to be regarded as a serious financial paper. He felt the newspaper
needed to offer deeper analysis of problems (Ministry of Information,
2005). Like the journalist, this interviewee tempered his criticism
with a compliment: "There is no doubt that [Finance] has some very
capable and eminent columnists which are a sort of a counterweight to
the general journalistic practice." Finance's approach may be at the
forefront of a national trend. A reporter from a major Slovenian
daily said he thought and indeed hoped that reader interest in
shorter stories would prove to be a short-lived phase and that the
public would eventually come to appreciate in-depth reporting again
(Slovenian Journalist, 2004). However, he admitted that his
publication already may be imitating Frankl's; it probably "uses more
illustrations and graphics [now] because Finance does," he said.
Frankl of course does not consider his newspaper to be yellow. But
he does acknowledge entertaining as one his publication's roles. Is
this the necessary alternative to traditional "boring"
journalism: "infotainment"? There will be infotainment, Frankl
said. But that is not his focus. "Our market niche is honest journalism."
Whatever its qualities, Finance may be influential in a vital market
segment. It is the only daily Slovenian newspaper focusing primarily
on financial and economic issues and is "therefore a major opinion
maker… because it has no noteworthy comparison [competitor]," the
Ministry of Information official said. "Information provided in
Finance very often has direct impact on the financial markets in
Slovenia. The majority regard it as a credible information source."
Evidence that Finance does produce quality reporting is that young
journalists do aspire to work there (Slovenian Journalist,
2004). Like Mladina, a historically young and rebellious newspaper,
Finance is noted for "opening up important stories," a phrase
Slovenians use similarly to the American "scoop." One Finance
employee (Slovenian Journalist, 2004) commented, "We have no
competitors in print media. They try, but they do not have the same
frame of mind. Our news is quick and fast." The editor-in-chief
claims to have reporters who "naturally want to do good
journalism. I always say, 'Write what you want to write, just ask
the other side what they want to say, realize the ethics, do good
work, and nobody will inhibit you if your work is fine.' We don't
have untouchables" (Frankl, 2004).
When discussing his concern about the lack of entrepreneurial spirit
at Slovenia's major dailies, Frankl cited as an example his inability
to find a Slovenian newspaper on the newsstands on a European
holiday, 31 October 2003. Neither was there a Croatian or Italian
daily to be found. "The only paper I could buy was Kleine Zeitung
[an Austrian paper]. We protect our comforts," Frankl
complained. "I hope it will never again be like that."
His view is not universally popular. A younger reporter interviewed
for this study (Slovenian Journalist, 2004) observed that in this
regard, there are two types of journalists, those who write easy
stories and leave work at 3 p.m., and those who labor until 9 p.m. or
later. The difference may be generational: there are indications
that older journalists may be less dedicated. Those who were
reporters under communism may "still have this matrix" (Slovenian
Journalist, 2004). However, this young interviewee, who began his
journalism career post-independence, opined that perhaps Frankl had a
"hard capitalist" viewpoint whereby workers should "leave their souls
on the work desk." An accomplished journalist himself, the young
reporter added, "I don't believe that… We deserve our day [holiday]
free." Besides, he added, "if the stock exchange is closed, there is
no news to fill." Similarly, a Slovenian Journalists Union employee
lamented a perceived change in ethos brought about by privatization
and westernization: a chipping away at the old culture of community,
commiseration and appreciation for leisure in favor of competitive
capitalism (SNS, 2004).
Interpreting the Finance Case
This onsite study has investigated the journalism philosophy and
practice of a specific, specialty newspaper, Finance. The previous
sections provided a comprehensive description of the publication and
present key informants' views regarding Finance and the role it plays
in the Slovenian media space. While any type of writing necessarily
represents an interpretive act, transparency was the objective of the
description. The authors sought to faithfully present the
perceptions and understandings of study participants and to minimize
overtly interpreting their meaning. In this section we do offer an
explicit interpretation of the Finance case by seeking to juxtapose
the descriptions of this particular case with broader narrative
discourses associated with global media studies. We describe how we
employ relevant literature to make sense of the Finance case and
employ the case to help illustrate the literature.
We are most interested in the quality of hard news reporting,
believing an aggressive and uncensored press to be an essential
prerequisite to the establishment of a legitimate democratic
government. The case of Finance appeared noteworthy because early
reports suggested the publication was making a significant
contribution to the quality of Slovenian journalism, despite its
foreign ownership.
We acknowledge that a single case study does not prove nor disprove
theory. The purpose of descriptive cases is to provide insight on
the experience lived in a particular context. Our sense is that
theory can usefully contribute to an interpretive understanding of
the world only when balanced with an accretion of understanding
derived from particular lived experiences.
Thus, the intertwined themes we wish to explore within the context of
the Slovenian print media space and the Finance publication include:
• The implications of profit-based news production, media
concentration and foreign ownership for quality of journalism.
• The implications of changing readership tastes for quality of journalism.
We explore these themes at a time when newspaper readership in
western democracies is in decline. Circulation has been declining in
the United States at about one percent per year since the 1970s
(Groves, 1997; Douglas County Libraries, 2001). Between 1999 and
2003 European circulation declines ranged from 1.3 percent in Sweden
to 8.1 percent in Germany, 12.9 percent in Austria, and 16.76 percent
in Portugal (Finfacts, 2005). Loss of readers directly decreases
circulation income and indirectly reduces advertising
income. Readers are a newspaper's raison d'ętre. Whatever the
reasons for the readership decline, whether they be
anti-intellectualism, competition from other media or activities,
laziness or a desire to be entertained, circulation must be addressed.
Changing Readership Tastes
Observers have noted changes in readership preferences with the rise
of market-driven media (Ansolabehere & Iyengar, 1997; Downing, 1996;
McChesney, 1999; Postman, 1986). Research provides evidence of
changing readership habits and preferences in formerly communist
nations, where the typical socialist reader had "a habit of reading
newspapers that he probably got from his parents" and was willing to
learn about events "from a serious newspaper, with solid expertise
and respectable opinions" rather than from the "yellow" press (Jones,
2002, pp. 365-366). In Russia younger readers are less interested in
serious, old-style journalism; the new generation of readers appears
to prefer a paper a "jazzier logo" and color photographs, a paper
from which they "can learn about scandals, who's sleeping with whom,
criminal stuff. Izvestia had tried to avoid these topics, but it's
hard to do, because it's really easy to attract readers with this
kind of coverage" (Jones, 2002, pp. 365-370). The Russian experience
in this regard parallels what we observed in Slovenia. The most
successful post-independence publication, in terms of circulation and
readership, is Slovenske Novice, widely regarded as a tabloid-quality
publication. Gossip, scandal and sensationalistic writing do sell
papers and represent competition for serious news dailies.
While this paper leaves unaddressed issues concerning possible
causes of these changes in readership taste, the Finance editor's
view is that one cannot and need not resist what appears to be an
inevitable change in reader tastes. It is hard to imagine that
Frankl would ever have thought the ponderous German style of
newswriting was warranted, but he clearly believes that a
continuation of such writing practices will spell the demise of
dailies unwilling to change. He believes readers still want honest
news reporting and analysis but no longer spend the time and
intellectual effort required to extract desired information from
ponderously written articles. His solution is more concise, precise
and possibly more entertaining presentation of hard news. As
Schlesinger (1995, p. 110) points out, it has become merely "an
analytical exercise" to try to "hermetically seal" information from
entertainment.
Market-Driven Media: News Demand, News Supply and News Quality
Readership tastes are critically important to privately financed
publishers. Seventy percent of Finance's revenues derive from
advertising sales, and advertising rates are a direct function of
market demographics and size. Thus, publications must produce
something readers are willing to consume. Furthermore, publications
must attract advertisers. Herman and McChesney express concern about
this development. While acknowledging that "competition and the need
to satisfy audiences ultimately compel the commercial media to 'give
the people what they want,'" they contend that consumer choice is
limited because program offerings are inevitably shaped by advertiser
interests which "in turn feature entertainment, the avoidance of
controversy, minimal public participation, and the erosion of the
public sphere" (Herman & McChesney, 1997, pp. 189,190).
The seemingly inherent conflict between profit maximization and
quality news production surfaced in our broader study of Slovenian
journalism (Self, 2005). A participant in that study, a journalist
at a major Slovenian daily, noted that although his publication had
earned a 35 percent profit for the year, it was unwilling to fund
international travel for its correspondents to cover important
breaking news (Slovenian Journalist, 2004). Of course, such events
are not unique to Slovenia; the reduction of newsroom investment and
resultant coverage in the interest of profit maximization certainly
has also been lamented in the United States (Just & Rosenstiel, 2005).
Yet Frankl believes that good journalism is not at odds with good
business; rather, he finds that good journalism is good business
because the resulting product will be the most profitable over the
long term. He sees "professional editing" as his strongest defense
against pressure from politicians or advertisers, exemplifying the
scholarly view that professional routines are a major factor in
determining message quality (Croteau & Hoynes, 2002). Herman and
McChesney acknowledge some truth in this perspective and find that
some reporters do "first-rate work, despite corporate control of the
industry" but "in many critical areas this kind of journalism is the
exception and has been discouraged by bottom-line pressures" because
"each sector is expected to have a positive effect on the firm's
earning's statement." They reflect that, given "the vagueness and
flexibility of objectivity standards, professionalism… can only
rarely override the imperatives of ownership and advertiser interests
on bottom-line pressures" (Herman and McChesney, 1997, pp. 192-193).
Foreign Ownership: Threat and Opportunity
To the consternation of many media observers and scholars, the world
is experiencing unprecedented growth of multi- or trans-national
media conglomerates (Artz & Kamalipour, 2003; Hollifield, 2001;
Marques de Melo, 1988; Roncagliolo, 1994; Schlesinger, 1995). In
former Soviet bloc economies, "a lack of domestic capital has led to
an influx of foreign capital" by Western European media corporations
where investment has been judged to be potentially profitable
(Schlesinger, 1995, p. 113). The Hungarian experience is
particularly notable as foreign ownership of principle media there
rapidly grew to nearly 80 percent (Ognianova, 1997, p. 8), and study
participants noted they did not desire to follow the Hungarian model
of privatization (Slovenian Journalist, 2004). While capital influx
has occurred in Slovenia, legislative restrictions slowed the entry
of foreign capital into the Slovenian market (Karlekar, 2004, p. 167).
Foreign ownership as well as internationalization of media products
has been particularly evident in print media. For example, papers
such as The Financial Times, The International Herald Tribune and The
Wall Street Journal began "consciously addressing international
political and economic elites in the nearest thing we have to a
European lingua franca, namely English," and the "quality press in
various countries have also begun to produce 'European' supplements,
compiled from reports and features selected from like-minded
newspapers across the continent" (Schlesinger, 1995, p.
111). Foreign media ownership and participation elicits multiple
concerns. The primary issue with respect to this study is potential
implications of foreign ownership on the quality and quantity of
local news coverage (internal to a particular country). The fear is
that foreign ownership will impose homogenized versions of
international news slanted toward the interests of business and
political elites while ignoring aggressive coverage of local issues
such as corruption and government/business collusion.
Yet in the case of Finance, a more virtuous dynamic appears to have
occurred. Frankl attributes his ability to pursue aggressive
investigative journalism at least in part to foreign capital and
ownership. Given the levels of direct and indirect government and
big-business ownership of media currently existing within Slovenia,
powerful pressure can be covertly and overtly brought to bear on the
press (Hrvatin et al., 2004). Frankl credits the corporate
philosophy and financial backing of a Swedish owner with helping his
department maintain the "editorial stamina" required to stand up to
advertiser pressure.
This study is not constrained to simply trusting Frankl's assertion
in this respect. Rather, evidence of Finance's aggressive
investigative reporting was corroborated by study participants
working at competing publications and government ministries. While
these sources did not always appreciate Finance's reportorial style,
there were multiple acknowledgements of its having "scooped" the
competition by breaking important news stories. However, it must be
acknowledged that Finance's experience may be atypical in that
Bonnier is family-owned, and there are no public stockholders to satisfy.
Conclusion
The authors have sought in this paper to construct a narrative report
that contributes to readers' understanding of the philosophy and
operation of a particular Slovenian media product that is intimately
informed by understanding of key informants directly involved in the
newspaper's production. Implicit in this effort is a conviction that
such a narrative provides not only a useful object of reflection for
study participants but observations and insights that readers might
usefully apply to the analysis of their own distinct concerns. It is
understood that Slovenian history and culture as well as the unique
individuals and circumstances involved in Finance's creation and
operation preclude our ability draw generalizations from this
case. However, we believe that one can still learn from this case.
The majority of research addressing media privatization,
consolidation and globalization is critical in its orientation,
maintaining that commercialization and foreign ownership of local
media have disastrous effects and/or potential in terms of public
interest and the maintenance of local culture. We do not contest
these meta-narratives on the basis of this single case. We do,
however, argue that we have revealed a specific case pleasantly at
odds with the conventional wisdom of these meta-narratives. And,
harking back to our opening quote, we find reason to hope that
capitalist-driven journalism need not be a fruitless means of funding
journalism in the public interest.
Whether the reader agrees with Frankl regarding the unappealing
nature of the traditional German reporting style, or is shocked by
Bonnier's 18 percent profit target, or disdains the use of bold
graphics and colors, or is quite comfortable with the notion that a
newspaper might not publish on a national holiday, one must
acknowledge that Finance is a for-profit publication that contributes
to plurality of voice in the marketplace of ideas, making a
contribution to public interest and democratic debate. Not everyone
likes it or approves of it, but Finance does seem to exemplify the
shape of the future. As one journalist interviewed for this study
commented, "It will be interesting to see if it stays a mix of hard
news and yellow press…. I believe they will follow this uneasy
balance in the future."
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[1] A pragmatic rationale for site selection came from the limited
resources for study, Slovenia's relatively small size, and the large
proportion of the population who speak English or German (which the
authors speak). The initial report resulting from this study was
presented at (citation withheld to preserve authors' anonymity during
review process).
[2] A more complete summary of the Slovenian historical context is
provided in the authors' previous work, (withheld to preserve
authors' anonymity during review process).
[3] As former Chairman of the FCC Newton N. Minow famously
commented, "What do we mean by 'the public interest'? Some say the
public interest is merely what interests the public. I disagree."
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