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Playing Media Monopoly

As Honolulu’s only daily newspaper reduces access and raises rates, consumers, advertisers and competitors are the losers

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Cover image for Sep 14, 2011

On Aug. 31, the Justice Department sued to stop AT&T’s acquisition of rival T-Mobile, USA on grounds that the merger would result in higher prices and fewer consumer choices. But justice slept during the mergers of three Hawaii tv stations, Comcast with NBC and two Honolulu daily newspapers. Here’s a look at how media consolidation hurts us all.


Fourteen months after merging Honolulu’s two daily newspapers and jettisoning over 400 jobs, owner Oahu Publications began charging for access to the Star-Advertiser’s formerly free “premium content.” Since last month, any article on [Star-Advertiser.com] that is marked with a blue star means only paid subscribers can read it.

In an industry where it’s assumed that print is dying and newspaper “apps” and instant online breaking news are the new black, paywalls for web content are fast becoming standard. Other newspapers are following the lead of TheNew York Times and Wall Street Journal–which compete with each other,as well the Daily News, the New York Post and Newsday,in New York City. Honolulu’s problem is that we’re a one-newspaper town. “I personally believe that the Star-Advertiser gives us only a shadow of what we used to get when there were two competing newspapers,” says Chris Conybeare, president of Media Council Hawaii (MCH).

Two years ago, MCH filed a complaint with the Federal Communication Commission (FCC) about a merger between television stations KGMB 9, KHNL 13 and KFVE 5. “This action is still pending, and the FCC says that they will soon announce a decision,” Conybeare says. Meanwhile, this year, the Star-Advertiser entered into a partnership with Hawaii News Now, and Conybeare says that he’s drafting a letter to the Justice Department requesting an investigation.

Consolidated media exposes us to selective reporting and agenda. The press is supposed to serve as a watchdog for an informed citizenry. But in the absence of competition, who, to invoke Cicero, will guard the guardians?

Do Not Pass Go–Unless You Pay

A major factor in the quality of the news citizens get is the number of competitors offering original local content. Honolulu Civil Beat ([civilbeat.com]), a daily e-newspaper, was started a year and a half ago by eBay founder Pierre Omidyar’s Peer News. In a phone interview, Civil Beat editor John Temple told the Weekly, “We were sad to see a newspaper go out of business. We’re kind of doing something different, though. They do what they’re doing, we do what we’re doing. We think there’s room for both.”

The Star-Advertiser’s actions seem to indicate a different mindset. Undercutting Civil Beat’s $19.99 subscription rate, it priced Internet-only access at $9.99 per month for Oahu residents, $4.99 for outer islanders and $1.99 for out-of-staters. As a result, Civil Beat knocked down their monthly access price to $9.99. “Oahu will effectively become a laboratory for studying the effects of a paywall on a single, fairly concentrated market,” wrote blogger Justin Ellis of Nieman Journalism Labs.

Ironically, on Aug. 23, after the paywall for the Star-Advertiser had been erected, a breaking news story (newly considered “premium content” on their website) was made available to anyone, reporting that the paper was suing Gov. Abercrombie for failure to submit documents on judicial nominees that the Star-Advertiser claimed should be available to the public.

From Park Place to Baltic Avenue: Take a Rent Hike

In the game of Monopoly, the more hotels you have on your property, the higher the rent you can charge–to the point where you can wipe out the other player if they are unfortunate enough to land there. In Honolulu, David Black’s Oahu Publications also owns Midweek, the free ad-heavy weekly that’s mailed to just about every household on Oahu. Black owns more than 170 newspapers in the US and Canada.

In the real-life Honolulu media marketplace, Oahu Publications’ dominance, which includes ownership of the only high-quality newspaper printing press, allows it to demand higher prices from–or simply refuse business to–other printed news publications.

Before the merger, Honolulu Weekly had a printing relationship with the then-Star Bulletin. When Black merged the Bulletin and the Advertiser, “They moved everyone over the press in Kapolei and said ‘here’s your new printing rate,’” Laurie V. Carlson, publisher of Honolulu Weekly, says.

Had the Weekly agreed to the new demands, they would have lost money both in higher production costs and in reduced paper space.

“The paper would have lost five inches off the top, reducing us from 16 to 11 inches in height. That’s over 32 percent less editorial space. It was a huge difference,” Carlson says. In addition, there was a significant price hike for the smaller publication.

Carlson says that she believes Oahu Publications’ motive is to squeeze as much money as possible out of the printing market.

Honolulu Weekly had experienced only one price increase over many years,” Star-Advertiser President Dennis Francis responded in an email.

The Weekly eventually moved its printing to Maui, as did Ka Leo, another refugee from Oahu Publications’ Kapolei printing press. Pacific Business News (PBN) had already moved its printing to Maui before the merger.

Prior to the merger, the Advertiser printed the student newspaper three times a week. Two weeks before their signed contract was enacted, the new Star-Advertiser told the paper they could no longer honor their agreement, said Rob Reilly, a UH staff member and advertising manager.

“They [backed out] in mid-June of 2010, and we had basically only a month and a half to find a new printing press. It was up to the wire. For a while we had to consider that we may not have been able to publish three times a week.”

While the Star-Advertiser offered to print the paper one time a week, Reilly says the logistics and complications of printing with separate businesses on different days was too complicated.

The result: “It costs [us] between $75,000 to $100,000 more a year to print. The shipping costs [to and from Maui] are huge,” Reilly said. He added that he felt the Star-Advertiser could have accommodated the three-day-a-week Ka Leo printing schedule, but “from what I understand there were more profitable contracts that they had preference for.”

Reilly commented that Ka Leo does well enough bringing in advertisers because of their student audience, which may have been a factor in the Star-Advertiser’s decision. Ka Leo has also been a constant resource for the Star-Advertiser, serving as a pool for interns and full-time staffers.

“We simply determined Ka Leo not to be a good fit due to their printing requirements. We offered them solutions and options… They chose not to take them and print elsewhere,” Francis replied. Asked whether eliminating competition played a part in the rates raise at the Weekly and letting Ka Leo go, he said, “No, I do not see these two publications as competition; we serve different audiences and vastly different scales.” However, a recent Star-Advertiser ad features Honolulu Weekly and PBN as competitors for Oahu readership (see illustration, near right). In addition, the calling-in of the $20,000 owed by the Weekly to Oahu Publications for printing–immediately and in its entirety, under threat of litigation–almost had the effect of driving the Weekly out of business.

Advertisers Roll the Dice

Other effects of a single daily paper include the rising cost for individuals, business and government to run ads there. With the merger, the “new” paper raised the cost of a daily classified from $9.75 to $84 (762 percent) and from $11 to $216 for a Sunday classified (1,373 percent). As one reader said to me, “The days of having a $10 classified to sell kittens is o-v-e-r.”

In addition, when it comes to announcements that a property is being foreclosed, the law mandates that a legal representative place an announcement in the most circulated daily paper in the county.

“The Star-Advertiser has had a monopoly on Oahu since that law was passed. People have to spend a lot more money on those ads,” said Carlson.

In the advertising world, according to Louise Saffery, owner of the ad agency Inter-Media Inc, “[The merger] has far-reaching effects. It reaches a lot of advertising agencies in town, [some of whom] are behind in their payments to the media and are letting people go…it’s impacting everyone.” Safferey said that for many of her clients, the Star-Advertiser is “the only game in town.” She added, “the problem is when you have no choices.”

Aaron Fujioka, chief officer at the State Procurement Office, was open about his dissatisfaction with the newly priced rates. With the huge jump in costs, Fujioka told [HawaiiReporter.com] that he wasn’t sure if the state could even sign the Star-Advertiser contract at the requested rates. The original budget for government ads was set at $757,200. Ruth Yamaguchi, assistant administrator to Fujioka, confirmed that the contract has been settled at much higher rates than they paid the previous year.

Asked for comment, Francis emailed, “I have no idea what you are referring to when you say sharp rise in advertising rates since the merger. Our rates simply reflect the new level of circulation, higher than the old Star Bulletin [which averaged nearly 100,000 copies less] but comparable to the old Advertiser.”

Ad rates are based on circulation. Confusing the issue, some media executives say, is the extreme difficulty of getting a certified circulation number for the paper.

Elusive Circulation: Forget Boardwalk

When the Star-Bulletin and the Advertiser merged, some might have assumed that their new readership figure would be a combination of the two papers. That is questionable. The now-defunct Star-Bulletin claimed they had 55,000 daily readers and asserted the combined circulation with the now-defunct Advertiser to be 135,000 to 140,000.

With regard to the Star-Advertiser, one media buyer, whose client has seen 25 percent rate increases annually, claimed that “the most up-to-date, [official] circulation information we had available for negotiating 2011 rates [in October/November 2010] was an Audit Bureau of Circulations [ABC] report, received from the Star-Advertiser, from March 2010. It details Sunday circulation at 123,411, which was a 10 percent decrease from the year prior.” In response, Francis wrote, “We have been audited by ABC for period ending 12/31, 2010. Our next audit will be for the calendar year 2011.” The Dec. 31 readership rates were 118,807 daily and 130,757 on Sunday. On its website, the Star-Advertiser lists their average daily circulation as 120,720 daily, but with the annotation, “subject to audit.”

Star-Zilla: Go to Jail!

Where once the major local papers were a regular outlet for her clients, “Now there are other options,” Saffrey says, noting that retail and other advertisers have the luxury of turning to other outlets. “Clients are saying they won’t go to the Star-Advertiser because they can do it on television for the same amount of money as a print ad. Everyone is looking at the most cost efficient way to advertise.”

Francis wrote that he’s not worried. “If a media buyer claims they can buy TV for the same price as an ad in the Star-Advertiser, then I would say the TV ad price would be quite high when you compare audience reach. In most cases, you would need to buy multiple TV stations to equal the reach of one ad in the Star-Advertiser.”

He has at least one other reason to be confident: The partnership between the Star-Advertiser and Hawaii News Now.

But Francis, Black and Raycom have a couple of reasons to worry. The FCC’s recent action against the AT&T/T Mobile merger may signal a new stricter scrutiny policy–and the Honolulu community, in its recent outpouring of contributions to save the Weekly from Black’s threatening lawsuit, demonstrated that demand for diversity of choice in media is strong.

Merger Mania!

The roll of the dice in Hawaii has resulted in the consolidation of media across the board: print/online, television and radio news.

Print/Online

The Honolulu Star-Advertiser (subscription, $19.95 daily, $9.99 web-only) and Midweek (free) are owned by Oahu Publications.

Television

KGMB (CBS) and KHNL (NBC) are owned by Raycom Media, and their newsrooms have been combined into Hawaii News Now.

KFVE is owned by MCG Capital, the parent company of HITV, in a Shared Services Agreement (SSA) with Raycom Media.

Media Council Hawaii (MCH) filed a complaint about the SSA, saying it violates FCC rules; a study by the University of Delaware found the agreement between Raycom and HITV has a negative impact on Hawaii’s news quality, diversity and competition.

Clear Channel owns KSSK (92.3FM), KHJZ (93.9FM), KDNN (98.5FM), KUCD (101.9FM), KSSK (590AM), KHVH (830AM), KIKI (990AM)

Cox Radio owns KRTR (650AM, 96.3FM), KCCN (100.3FM), KPHW (104.3FM), KINE (105.1FM), KKEA (1420AM), KKNE (940AM)

Salem Communications owns KHNR (690AM), KGU (760AM), KAIM (95.5FM), KHCM (97.5FM), KHUI (99.5FM), KKOL (107.9FM)



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This week

2013 Summer Books

On a breezy May evening, in the courtyard of the state library, local publishers, writers and book designers gathered to celebrate the 2013 Ka Palapala Pookela Awards, sponsored by the Hawaii Book Publishers Association. The place was packed, and I was struck by such a healthy showing for an industry whose demise has been predicted since before the advent of Amazon.

Unlikely Pairings

I was intrigued recently to channel surf upon a deft interview of Susanna Moore on PBS Hawaii. Moore is the nationally acclaimed author of nine books, perhaps best known for her luminous My Old Sweetheart and other Hawaii novels, as well as the rough-sex 2004 noir In the Cut.

A Long Lost Era

Kabuki Boy, a novel, reads almost like an autobiography filled with vivid details that transport us to 19th-century Japan during the “Tokugawa Era.” Fast-paced and humorous, it aptly dramatizes an ancient dramatic art. The hierarchy between the social classes of samurai, geisha, peasants and monks comes alive from the page, seen through the eyes of Myo, a young boy aspiring to become a kabuki actor.

Panek Point

Calling this big fat novel Hawaii was bound to raise eyebrows. Hey, come run to the schoolyard to watch Mark Panek throw down!

Inward Journey

Beautifully designed, with outstanding photography of India and Tibet by Linda Connor, the newest edition of Manoa is especially ambitious in its choice of subject/theme. It attempts to present diverse interpretations of the meanings and implications of the term “freedom,” doing so in the forms of fiction, essays, poetry, memoir and drama.

Gardens

This new book of poetry is easy to read, yet I had all kinds of strange dreams after reading it. The poems are short but poignant–a lot of thought and crafting went into every well-placed word.

Brotherly Tears

When the young narrator, Landon DeSilva, of Tyler Miranda’s novel Ewa Which Way, watches an episode of “Leave It To Beaver,” he sees a family whose idea of discipline is a father and son discussion without “head cracks” or “cuss words.” In the episode, Eddie Haskell and Wally Cleaver talk about the Beaver’s highjinks, and Landon’s friend says, “just like your brudda . .

Community

In a poetry class I teach at Windward Community College, a student recently did a presentation on coming-out poems and presented her own. One of her peers asked a thoughtful question: “If you are a gay, are you automatically part of the gay community?” It’s a question I’ve had about being Asian American–and a poet.

Cruelty

In Wing Tek Lum’s poem “The Red Circle,” a sergeant teaches his soldiers how to use a bayonet during Japan’s infamous occupation of Nanjing, China in 1937: “With a nub of red chalk / our sergeant marks off / a crude circle in the center / of the chest.” The men are instructed to stab everywhere, except the heart. A quick death would be too kind–too merciful.

Wit

“We are selves in a world because we have words,” writes the late poet Tony Quagliano in the preface of his book, Language Matters. In this masterful collection, every line absorbs the reader into the writer’s world, revealing his intimate thoughts on politics, writing, Hawaii and life.

The Romance of Sunset

A sort of team anthology, Sunset Inn: Tales from the North Shore is a collection of fiction, poetry and a play published by the Aloha Romance Writers, who admittedly chose–over margaritas and Mexican food–the conceit of a colonial-style seaside inn, described in Patrice Wilson’s poem “This Haven” as “white as salt” and “bleached coral in the sea,” as a central setting for their book. Like the landscape and the building, the collection holds stories of love found, lost and always remembered, some of which are based in Hawaii history and some from a contemporary eye, but all adhering to the familiar elements of the romance genre and the romantic.

Love Lore

In Huna Magic: The Hawaiian Odyssey, Dawn Star puts on a modern spin on Hawaiian mythology and folklore. Set in ancient Hawaii, the book starts off with the classic forbidden love story between a young woman, Kuulei ke Anuenue and a handsome man, Kai, who happens to be the chiefess’s love slave.

Reassembling

The reader weary of cutesy novels with multiple story lines that are obviously going to be inextricably tied together, somehow, might not want to venture too far into Darien Gee’s The Avalon Ladies Scrapbooking Society. But if it’s comfort food for the brain you’re after, you’d be missing out.

Green Noir

Set in Hawaii, Saving Paradise, Mike Bond’s sixth detective novel, tells a passable if unevenly written story featuring one Pono Hawkins, a Special Forces vet (Afghanistan), celebrated international surfer and correspondent for ocean magazines. He also insinuates himself into the woes of others, in this case a beautiful young thing whose lifeless body bumps into Hawkins as he goes surfing at dawn.

Decolonizing Our Future

Confucius said, “If your plan is for one year, plant rice; if your plan is for 10 years, plant trees; if your plan is for 100 years, educate children.” The philosopher’s sagacious message seems to align with the alternative approach to education seen in Hawaii’s charter school system. Noelani Goodyear-Kaopua’s The Seeds We Planted is an ethnography articulating the establishment, growth, and success of Halau Ku Mana, one of the few Hawaiian culture-based charter schools in Honolulu.

Navigating Selves

Leilani Holmes’s richly chronicled journey toward a reconnection with her Kanaka Maoli culture opens with the epigraph: “For those who came before us. In hopes that we act on behalf of your bones.” Ancestry of Experience is a thoroughly researched and deeply genealogical journey.

Think Pink

There’s something foreboding about the cover of Pink Globalization. It’s a dark, monochromatic picture of an enormous grey Hello Kitty gazing ominously into the night in front of a corporate-looking building. The picture is certainly intriguing and symbolic–Hello Kitty is taking over the world.

Hardships, Loneliness, Triumphs

A deeply researched and careful weaving of previously unheard voices can be found in Mai Lepera, adding another layer about leprosy patients exiled to settlements at Makanalua peninsula in the 19th century. Keri A.

Transcending Prejudice

If resiliency spoke of a group of people, the Japanese population of the then-Territory of Hawaii during World War II claims the description. With one specific attack on December 7, 1941, an island-wide prejudice against all immigrant Japanese was born, painting a picture of angry nationals who plotted Hawaii’s demise.

Mano

An ambitious, immensely rewarding product of nearly five decades’ research and teaching (beginning when the author was l3 years old), Patrick Vinton Kirch’s A Shark Going Inland is my Chief bids fair to be a definitive, almost exhaustive look at “the island civilization of ancient Hawaii.” Divided into three major parts, Shark starts with Cook’s arrival when Hawaii was four major kingdoms in the midst of creating stratified societies.Kirch deals with religion, evolving social structures and belief systems to make ancient Hawaii come alive. Especially noteworthy are beautiful descriptions of the making of canoes, particularly the vaka moana, capable of transporting families.

Charts for the Band

Music stores abound with compilations of “50 Favorite Songs” for everything from jazz to the Beatles to Bach. Now it’s time for the mid-20th century music of Hawaii.

Racism of Record

Compiled by Christopher LaVoie, Annexation! presents the imperialist agendas of the U.S.

Charting Our Ancestral Past

Hawaiki Rising by Sam Low tells the epic saga of voyaging on the Hokulea, which, as every Island schoolchild should know, is a traditionally constructed Hawaiian sailing vessel that is steered by observing natural elements, without instruments or maps. Low, a part-Hawaiian anthropologist who participated in three voyages, follows the Hokulea through conception, construction, and navigation.

From the Outside

The feeling of being an outsider in one’s beloved homeland is the theme underpinning Pamela Frierson’s fluid and honest nature writing. In her books, The Last Atoll: Exploring Hawaii’s Endangered Ecosystems and The Burning Island: Myth and History in Volcano Country, Hawaii, Frierson explores Hawaii’s unique ecosystems, while also searching for personal relevance where she grew up very aware of being merely a “second-generation colonist.” The shadows of a world unknown drive the writer, teacher and homesteader to attach to the landscape, pursuing a deeper understanding of Hawaii’s natural order, and, through those experiences, a sense of belonging.

Bearded beauties

Donald Hodel’s Loulu: The Hawaiian Palm is winner of this year’s Ka Palapala Award for Excellence in Natural Science. Loulu the Hawaiian Palm Donald R.

Missed Connections

Charlotte A. Tomaino, neuropsychologist and former nun, started with the intriguing concept of explaining how grace and spirituality can “awaken” the brain to a fuller potential through expanded consciousness.

The Naked Truth

Sharon Hicks’ How Do You Grab a Naked Lady recounts the relationship between Hicks, her mentally ill mother and idealist father. We meet Hicks at age 16 as she witnesses her mother parading around a mall in the buff, yelling and cursing–one of many manic episodes we’ll see during the book.

Last Train to Ho’opili?

One paradox of TheLast Train to Zona Verde, Paul Theroux’s 46th book and his latest about Africa, is that it’s also one of the best meditations on Hawaii you’ll ever read. But first, why Africa?

Every Reader for Himself

Confirming rumors, Barnes & Noble’s (B&N) Kahala Mall bookstore will close when its lease expires in January 2014. There are no current reports concerning B&N’s Ala Moana location, but it’s probably a matter of when, not if, management installs a T-shirt store.

Island Girl

Last weekend, Susanna Moore was in town to read from her new novel, The Life of Objects. A striking beauty–high cheekbones, fine features, long white hair with an inky streak that matches her brilliant black eyes–she wore a sleeveless blouse, full cotton skirt and rubber slippers.

A Traveling Light

We were out at Tongg’s surf break when the world’s best-traveled writer paddled past in a kayak. I said, “Paul Theroux?” Mindy nodded.

CIVIX

KAKAAKO MEETINGS The HCDA will host a series of meetings to discuss the Kakaako redevelopment plan and how rail will fit in with those plans. The meetings are open to the public.

Make Our Day

On May 13, Common Cause Hawaii assembled a panel, titled “The Good, the Bad and the Ugly,” to deconstruct lessons from the recently ended 2013 Legislative Session. Commentators included Rep.

Homeless Plan

Mayor Caldwell is winding down his public town-hall meetings campaign. The meetings are designed to update the public on the progress of the Mayor’s major first-year initiatives: repaving the roads, getting TheBus routes restored, making the city’s parks beautiful, fixing Honolulu’s sewer infrastructure, building rail better and, most recently, solving homelessness.

Pacific Pivot

During a 2011 speech to the Australian Parliament, President Obama declared: “The United States will play a larger and long term role in shaping [the Pacific] region and its future.” On May 10, the Center for Strategic and International Studies (CSIS) Pacific Forum hosted a panel discussion that sought to determine what a U.S. “pivot” toward the region would look like and what the reaction to increased U.S.

The homeless experience

I picked up your May 15 issue with great anticipation because on the cover was a photo of a person experiencing homelessness who I have had numerous interactions with (“Derelict Downtown,” May 15). He is someone I have always found to be articulate and friendly–an ideal person to talk to if one wishes to learn about experiencing homelessness.

Hawaiian rights

The puppetmasters controlling the creation of the Hawaiian Nation have manipulated Hawaiians who have signed up for any Hawaiian registry to become captive members of Kanaiolowalu, the Native Hawaiian Roll Commission. Those bills were heard this session and were passed by the Senate in the Tourism and Hawaiian Affairs Committee chaired by Brickwood Galuteria and the Judiciary and Labor Committe chaired by Clayton Hee, although the forced enrollment is unconstitutional.

Money over land

The Land Use Commission, the Honolulu Planning Commission, the Zoning Variance Commissions and all the other BS commissions are hijacked by big business (“Hoopili Miss,” May 15). Judge Rhonda Nishimura’s head is buried in the sand if she doesn’t recognize the votes were bought.

Cinema for all

I try to not miss a Redford film, and, of course, I can relate to events of the ’60s (“Last Round-Up,” May 8). It is disappointing that The Company You Keep is being shown only at Kahala Theatre.

Tea time

Aloha, I am Elyse. Please let me know if you have any questions, I would love to answer them (“Just Our Cup of Tea,” May 15).

Corrections

In last week’s “Derelict Downtown” (May 15), we mistakenly listed Kirk Caldwell’s campaign phone number. To contact the Mayor, please call 768-4141.