Amazon.com chief executive Jeff Bezos is revered as one of the brightest minds in corporate America, but even he is still puzzling over how to reverse the financial slide threatening The Washington Post and other major US newspapers.
Nevertheless, Bezos is determined to face the challenge, raising hope that his US$250 million purchase of The Washington Post announced Monday will provide the newspaper industry a template for making the leap from the printed page to digital devices.
“The marriage between the newspaper industry and technology has never been consummated, but it could happen at The Washington Post now,” said media analyst Ken Doctor of Outsell Inc.
Although Bezos bought The Post with his own money, most experts believe he is likely to tether the newspaper to Amazon.com’s products. He might also infuse the newspaper with some of the concepts that helped turn the Seattle company from an online book store into a multi-dimensional business that sells a multitude of merchandise and runs data centres that power other websites around the world.
“Just having his brain in the room will force people to confront digital in a way they haven’t before,” predicted Jerry Ceppos, a former newspaper editor who is now dean of mass communications at Louisiana State University.
Bezos, 49, made it clear that he has no magic formula for turning The Post around. The newspaper is the anchor of a division that lost US$54 million at The Washington Post last year while generating revenue of US$582 million — 39 per cent less than it did in 2005.