Google Launches 'Newsstand' Android Reading App

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Mix Google Play magazine store with the two-year-old Currents magazine app, stir gently, and you get Google's Newsstand Android reading app that supports publications' paywalls, the Gigaom.com Web site reported.

The Google app launch will offer more than 1,900 free and subscription-based content sources, including paywall publications The New York Times, Financial Times and Wall St. Journal, according to the Gigaom.com post. Present Currents and Google magazine users will have to upgrade their apps to benefit from Newsstand.

The move is intended seriously to challenge Apple's mobile magazine and newspaper store, Gigaom.com reported.

BuzzFeed Adds Investigative Unit to Growing Editorial Team

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Pulitzer Prize-winning investigative reporter Mark Schoofs will helm an investigative unit of six reporters hired by BuzzFeed, the social media Web site that editorially tracks viral content, The New York Times reported today.

Schoofs, who garnered the award while at the Wall St. Journal for a series of articles on AIDS in Africa, most recently worked for the nonprofit ProPublica. BuzzFeed upped its editorial workforce to 134, having recently hired an equal number of journalists to report on foreign affairs (see "TUOL" post 5/6/13).

AllThingsD, as in Done, with Dow Jones & Co. Affiliation

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AllThingsD (All Things Digital), the six-year-old technology news Web site that was a partnership of Dow Jones & Co. and columnists Walter Mossberg and Kara Swisher, is coming to an end, the Wall St. Journal reported this week.

The site, which reviewed new products and reported on the high tech industry, earned high marks under Journal alumna Swisher and Mossberg, who launched a Personal Technology column in 1991. He will depart the Journal at the end of this year, according to the Journal article.

Mossberg & Swisher are looking for another company with which to partner, the Journal reported.

UPDATE: 4th Circ. Says Clicking Facebook 'Like' Icon 1st A. Protected Speech

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In an important free speech decision, the United States Court of Appeals for the Fourth Circuit this week in Bland v. Roberts (Case No. 12-1671) reversed the trial court and found that clicking the thumbs-up Like icon on Facebook constitutes First Amendment-protected speech.

The case involved Hampton (Va.) Sheriff B.J. Roberts who, following his re-election in a hotly contested struggle with challenger Jim Adams, fired Daniel Ray Carter among other deputies who had "Liked" Adams' Facebook page in 2009 (See "TUOL" post 5/1/12). The ousted lawmen sued on the grounds that their First Amendment rights had been trampled, but United States District Court for the Eastern District of Virginia Judge Raymond Jackson found against them, ruling: "[L]iking a Facebook page...is not the kind of substantive statement that has previously warranted constitutional protection."

But, according to accounts in The Wall St. Journal, The Volokh Conspiracy blog and elsewhere, the Fourth Circuit begged to differ in its 81-page decision, finding that the deputies' icon-clicking was both pure speech and symbolic speech worthy of First Amendment protection. Liking a candidate's Facebook page, the appellate panel said, "is the Internet equivalent of displaying a political sign in one's front yard, which the Supreme Court has held is substantive speech."  Moreover, clicking the thumb icon is symbolic speech in that the actor, through his conduct, is intending to convey a message, and that intended message--Jim Adams would be a good sheriff-- is reasonably understood by the audience.

Penthouse Magazine Goes Bust?; Parent Co. Files Chapter 11 Bankruptcy

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UPDATE: Journalists Challenge Restrictive Media Law in Ecuador's Constitutional Court

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The Wall St. Journal reported this week that journalists and other free press advocates have asked Ecuador's highest court, the Constitutional Court, to overturn a restrictive media law enacted in June (see "TUOL" post 6/14/13) by a National Assembly supportive of President Rafael Correa.

Correa, who has ruled the South American Republic since 2006 and famously grappled with journalists in court whom he has sued for slander, backed the media law revisions. Among the changes in the new law is a redistribution of television frequencies, the lion's share of which were privately owned, so that a third would be run by the government, a third of radio and tv frequencies would remain in the hands of  the private sector, and the remaining 33 percent would be community-run.

Critics of the new law, who contend it suppresses the freedom of opinion and expression, are especially troubled by the creation of a government communications superintendent position that would be empowered to sanction the news media and conduct audits, according to the Journal article.

Vegas Billionaire Adelson Hits 3 Lemons in Subpoena Bid of WSJ Reporter's Notes

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New York Supreme Court Justice Donna M. Mills this week quashed a subpoena by attorneys for 79-year-old casino magnate Sheldon Adelson seeking notes and phone records of Wall St. Journal ("WSJ") reporter Kate O'Keefe arising from a defamation action against former Adelson employee Steven Jacobs.

In her four-page decision in Motion to Quash Subpoena Duces Tecum on behalf of The Wall St. Journal v. Sheldon Adelson (Matter No. 100270/13), Justice Mills found that the WSJ was protected by Article 1, Sec. 8 of the New York Constitution as well as the state's shield law [N.Y. Civil Rights Law sec. 79-h]. Adelson "failed to overcome the qualified privilege for non-confidential newsgathering material," Justice Mills wrote, in dismissing the subpoena.

Under the state's shield law that protects a journalist from having to disclose confidential sources and information, a party seeking such material must satisfy a three-pronged burden that the information is: 1)highly relevant, 2)vital to the party's legal claim, and 3)unavailable through any other reasonable means. Adelson contended his Florida defamation complaint against Jacobs that alleges Jacobs accused him of condoning prostitution, necessitated obtaining the WSJ notes and communications over a three-year period involving Jacobs and O'Keefe, who wrote an article concerning the prostitution claim against Adelson. In a separate Nevada action, Jacobs has brought an employment case against Adelson.

Justice Mills wrote that Adelson "has not shown why he is entitled to the material sought."  The Las Vegas mogul's streak of bad luck, which included tossing away millions of dollars in campaign contributions to support failed GOP candidates Newt Gingrich and Mitt Romney, apparently has not run its course.

No word yet on whether Adelson plans to appeal Justice Mills' ruling. Tip of the hat to the Reporters Committee for Freedom of the Press (www.rcfp.org) Web site for reporting on this case.

President Obama Taps Former Lobbyist to Lead FCC

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President Barack Obama yesterday nominated a 67-year-old former lobbyist for the wireless and cable tv industries to lead the Federal Communications Commission.

Tom Wheeler, a venture capitalist and managing director of the Washington, D.C.-based Core Capital Partners, is the President's choice to replace Julius Genachowski, who resigned in March after four years as chair of the five-member Commission. In the interim, before Wheeler faces a Senate confirmation vote, President Obama appointed FCC Commissioner Mignon Clyburn acting chair.

Wheeler is the author of Mr. Lincoln's T-Mails: How Abraham Lincoln Used the Telegraph to Win the Civil War (2008) and maintains a personal blog, Mobile Musings ("TUOL" is delighted to see a blogger make something of himself). According to reports in the New York Times, Mashable.com and The Wall St. Journal (the first media outlet to report the Wheeler nomination), the former trade association lobbyist will face a number of key votes if approved to helm the FCC, including media consolidation, net neutrality and wireless spectrum revisions.

The Times reported that 37 Senate Democrats sent President Obama a letter throwing their support behind FCC Commissioner Jessica Rosenworcel, in hopes the President would appoint a woman to lead the FCC for the first time ever. Mashable.com noted in its post that Wheeler was a major contributor and volunteered in both of Obama's presidential campaigns, for those intractable believers in coincidence.

Journalist Edges Out Lumberjack as Worst Job in U.S.

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A survey released today of  200 occupations by career Web site Careercast.com found reporters have the dubious honor of holding the worst job in the United States, according to a post by a Wall St. Journal blog (Blogs.wsj.com).

Careercast.com, which is owned by Carlsbad, Calif.-based Adicio, Inc., uses data from government agencies, including the Bureau of Labor Statistics, and bases its rankings on five criteria:

• work environment
• physical demands
• stress
• income
• hiring outlook.

Given bleak job prospects, long work days and paltry pay, it's not too surprising that journalists would find themselves 200th among the survey of 200 careers. Reporters edged out enlisted military personnel and lumberjacks to capture the basement spot. At least lumberjacks get to wield an axe, though "TUOL" has seen newspaper newspapers lethally wield a blue pen.

At the top of the Careercast.com list are actuaries, followed by biomedical engineers and software engineers, all of whom any self-respecting journalist could drink under the table. "TUOL" found little solace in the survey, in that attorneys ranked a meager 117.

Actuaries assign a financial value to risk, so journalism students may want to consult with one before it's too late.

Rusty GateHouse Media Headed Toward Pre-Packaged Bankruptcy Filing?

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Debt-ridden Fairport, N.Y.-based newspaper chain GateHouse Media Inc., which owns newspapers and shoppers in 21 states and boasts a workforce of more than 4,000, is considering filing a pre-packaged bankruptcy in response to a looming $1.2 billion debt, the Wall St. Journal reported this week.

GateHouse, which is owned by Fortress Investment Group LLC, includes in its stable of more than 300 small daily and weekly papers the (Quincy, Mass.) Patriot Ledger, Norwich (Conn.) Bulletin and Utica (N.Y.) Observer-Dispatch. The chain has enlisted Houlihan Lokey investment bank and a law firm specializing in restructuring to achieve its goal of eliminating the crushing debt, the Journal article noted.

GateHouse was delisted from the New York Stock Exchange in 2008 because of its shaky financial picture, which includes a $30 million drop in sales last year compared to 2011 figures. Fortress, a prominent creditor, bought GateHouse in 2005 for more than $500 million.

DOJ Probing WSJ Over Alleged Fortune-Sharing with Chinese Officials

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The New York Observer is reporting that the U.S. Dept. of Justice is investigating a whistleblower's allegations that Chinese government officials received gifts from the News Corp.-owned Wall St. Journal in exchange for information used in articles in Rupert Murdoch's national business daily.

An inquiry by outside attorneys and auditors commissioned by News Corp. dismissed the allegations as baseless, the media conglomerate said in a written statement. The company questioned whether the alleged whistleblower might be a Chinese government agent retaliating against the WSJ for its coverage, and noted how the recent hacking of The New York Times and other news media outlets was suspected to be the work of  Chinese government agents as a reprisal against negative reporting.

Could be the Chinese government propaganda machine trying to sully and intimidate the foreign press into writing non-critical stories about the regime.  On the other hand, given Murdoch's phone hacking scandal in the U.K,, it may be hard to find a horse to root for in this race.

Google & AGs Hash Out Street View Privacy Settlement

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Pending court approval, Google, Inc., has settled the Street View-inspired invasion of privacy case brought by the Attorneys General of 38 states.

According to reports in The New York Times and Wall St. Journal, the San Francisco-based social platform colossus will pay a $7 million fine for its street map project transgressions, in which Google vehicles equipped with antennas and software captured private network id data, including passwords and email, payload data and data frames from unencrypted wireless networks of residences and businesses.

Besides the $7 million penalty, which the company is likely to earn back in the time it takes "TUOL" to complete this post, under the proposed settlement, Google must promote a nationwide campaign to inform consumers about how to protect personal data and secure wireless networks, educate its employees concerning user data confidentiality, observe protocols to protect Street View data collected from 2008 to 2010, produce a YouTube video informing viewers how to encrypt wireless network data that it must promote in daily ads for two years and take out educational ads in the largest newspapers in the 38 affected states. The company must, within six months of the settlement, implement an internal privacy program.

Google's "rap sheet" continues to grow. Last year, the company was fined $22.5 million by the FTC for circumventing the Safari browser's privacy settings (see "TUOL" post 2/21/12), and paid the FCC $25,000 for obstructing the agency's investigation of the Street View data grab. In 2011, Google agreed to be audited for a 20-year period by the FTC after admitting employing deceptive tactics when it launched the Buzz social network. Looming large as the next privacy battleground is Google Glass, computer eyewear that potentially could eavesdrop on individuals' private interactions. Hard to say whether the 15-year-old Google is just displaying adolescent rambunctiousness or full-blown juvenile delinquency.

Led by then-Connecticut Attorney General Richard Blumenthal, the multi-state probe of Street View began in June 2010 (see "TUOL" post 10/16/10).

Newspaper Trend: More Paywalls, Fewer Freebies

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Internet viewers are finding it harder to freeload as online newspapers have accelerated erecting metered paywalls and paring the number of  "free" articles before subscription rates kick in.

In an online article by The Wrap about Press +,  an e-commerce platform boasting more than 400 publishers whom it assists in creating online subscription options,  it was reported that 35 percent of Press + affiliates now offer five or fewer articles per month to newspaper Web site visitors before demanding payment, while 77 percent allow 10 or fewer free articles before a subscription is called for.

The Wrap article quoted Press + figures indicating since July 2011, a 40 percent jump in the average price of a monthly digital subscription, though over the past six months, the increase was only 5 percent.

Metered paywalls, which are a frequent subject of this blog, are still a Brave New World for the staid newspaper industry whose paper editions have been bleeding ad revenues and circulation losses for years. The Wall St. Journal and The New York Times are among only a handful of  digital edition success stories.

Barnes & Noble, Not Brick & Mortar

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Following a brief surge after competitor Borders Group, Inc. went belly-up (see "TUOL" post 7/20/11), Barnes & Noble saw a near-11 percent drop in sales at its bookstores and on its Web site this past holiday season, according to a Reuters wire service article.

B & N CEO Mitchell Klipper told the Wall St. Journal that his company plans to shutter nearly a third of its brick and mortar bookstores over the next decade, according to the Reuters piece. The company, which presently operates 689 retail stores and  674 college bookstores as a separate chain, will likely reduce in size to roughly 500 stores within the next ten years, Klipper noted.

Online competition such as Amazon and the boom in e-books are contributing factors in the shrinking bookstore market.

WaPo Hints at Paywall

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Not only will The Washington Post roll out former Boston Globe Editor Marty Baron as its new Editor in January (see "TUOL" post 11/14/12), but also, 2013 appears to be when the WaPo finally will overcome its reluctance and join its digital newspaper brethren by erecting a paywall.

Poynter.org picked up on the story, originally reported by The Wall St. Journal, that the Post plans to limit digital readers' unpaid access to its homepage and section fronts, though print subscribers will continue to have unlimited access to the Post's online edition. Paywalls impact about one-third of daily online newspaper readers, the Poynter post noted, and WaPo would be joining a roster of more than 300 dailies nationwide that have erected paywalls, including The New York Times, Wall St. Journal, and Baron's Boston Globe, which has attracted a disappointing 25,000 subscribers to its year-old premium digital service.

The Post has sustained circulation losses at a higher rate than the newspaper industry ovrall, according to the Poynter post.

WSJ & NYT Thrive, but Newspaper Circulation Declines Overall

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The Audit Bureau of Circulations numbers for the six months ending Sept. 30 show a .2 percent decline in the newspaper industry compared to a year ago, The Wall St. Journal reports.

All is well, however, at the WSJ, the nation's largest newspaper, which experienced a 9.4 percent boost to its daily circulation compared to a year ago, topping out at an average 2.3 million. Its rival, The New York Times, rode a substantial boost in its digital issue circulation, to come in at 1.6 million copies daily, a 40 percent hike over last year's numbers, for the nation's third largest daily.

Overall, digital editions made up 15.3 percent of all U.S. circulation, compared to just 9.8 percent a year earlier.

Attack of the Giant Penguin

Looking to offset the surge in electronic books and the growth of Web retail companies such as Amazon and Apple, two media conglomerates, England's Pearson and Germany's Bertelsmann, plan to create the world's largest book publisher, Penguin Random House ("PRH"), the Wall St. Journal reports today.

If it withstands antitrust review, the new entity would represent nearly 25 percent of the world's English-language book sales, according to the WSJ article. Authors who would publish under PRH include John Grisham, Tom Clancy, Toni Morrison and naughtynovelist E.L. James of Fifty Shades of Gray fame.

Bertelsmann will control 53 percent of PRH to Pearson's 47 percent interest in the joint venture. Random House CEO Markus Dohle is expected to oversee the entity and Penguin CEO John Makinson would serve as Chair of PRH, according to the WSJ piece.

First Fall Sighting of Winklevi

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Faithful readers of this blog know that the Winklevoss twins, Cameron and Tyler, of The Social Network cinematic fame, regularly appear in "TUOL" (see posts on 7/26/11, 6/24/11 et al.).  Well, they're back, with Harvard pal Divya Narendra, investing $1 million in SumZero, a social network for professional investors, co-founded by Narendra and Aalap Mahadevia in 2008, according to an article in The Wall St. Journal this week.

The Winklevi duo, who, aided by Narendra, engaged in a protracted legal battle with Mark Zuckerberg over ownership of Facebook that netted the twins a reported $65 million settlement, have turned their attention to Winklevoss Capital, an investment company fueled by their personal wealth, and SumZero is the inaugural beneficiary. SumZero's membership of 75,000 or so is geared toward private equity firms and hedge fund and mutual fund investors, though a small group of outsiders may subscribe by doling out $129 a month to receive a few investment ideas with the blessings of their authors. Members are required to submit investment ideas to maintain access to their fellow members' tips, according to the Journal article.

SumZero plans next month to relocate into office space in Manhattan owned by the Winklevoss boys. You can't keep a good man down--or the Winklevoss's either, apparently.

It's About Times: Ask.com Bolsters SEO Capabilities

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The New York Times has unloaded About.com, its south-headed search engine optimization ("SEO") investment, to Barry Diller's IAC/InterActive Corp. for $300 million in cash, The Wall St. Journal reported today.

The Times doled out $410 million in 2005 to acquire About.com, but took a $195 million write-down on its investment last month. IAC also owns  the Ask.com SEO, and outbid SEO Answers.com, which offered $270 million to the Times earlier this month, according to the Journal story. Ask draws 87 million unique monthly visitors, compared to About's 52 million, comScore indicates (way more than "TUOL", but who's counting?).

Travel Gets Googlized

Image via CrunchBaseThe Wall St. Journal reported today that Frommer, a cadillac brand of travel guides, is being unloaded by publisher John Wiley & Sons, Inc. to Google, Inc., the Mountain View, Calif.-based search engine and owner of much of the universe, for an undisclosed sum.

Google has yet to determine whether to make Frommer an online-only presence or to continue to publish print versions of the travel guide, according to the Journal article.  Also under consideration is blending Frommer in with restaurant review maven Zagat Survey, LLC, which Google purchased in September 2011.