How Syndicates Will Survive the Future

By: Dave Astor This is not an easy time for syndicates. The number of features with 500 or more newspapers has dropped nearly 20% since 1985. Syndicates have 220 fewer general-interest dailies to sell to in the United States than they did then, and many of the papers that remain have frozen or reduced their syndicated-feature buys. Supplemental news-service columns and local columns increasingly compete for space against syndicated offerings. Cartoonists and columnists can self-distribute with the help of the Internet. Finally, the next "Peanuts" hasn't emerged, and may never.

Will syndicates survive all this -- and still be around in 10 years? Yes, but the number of big syndicates might drop from the current eight to anywhere from seven to three by 2012. And those remaining will need to change some of the ways they operate.

Actually, several syndicates have already begun making changes -- internally, as they keep staffs lean to try to stay profitable, and externally, as they seek new revenue sources and different kinds of customers outside their core daily-newspaper market.

"The essence of syndication is content," says Creators Syndicate President Richard S. Newcombe, adding, "It doesn't matter what medium the content appears in."

For instance, syndicates sell content to online newspapers and non-newspaper Web sites. This isn't a huge source of current revenue -- especially since the dot-com crash -- but in 10 years "electronic will show much greater growth than print," Newcombe says.

About 10% of Universal Press Syndicate's sales this year are of the online variety. "I'm sure that percentage will go up dramatically" in the next decade, says John Vivona, vice president of sales.

Others see growth in providing content for wireless devices. One of them, Walter F. Mahoney, Tribune Media Services' vice president for domestic syndication, notes TMS features such as the "Jumble" puzzles already appear on several such platforms.

Copley News Service Editorial Director Glenda Winders predicts more syndicating of video to online clients.

Space: The lost frontier

Though online sales have potential, the print problem remains daunting. With the number of U.S. dailies dipping to 1,468 this year from 1,688 in 1985, it is now a buyer's market.

"When I started [in 1960], you walked into a major market, and if you didn't sell to the Times, you'd go to the Globe," says John McMeel, president of Andrews McMeel Universal and co-founder of AMU's Universal Press Syndicate.

Syndication thrived "when we had a vital newspaper industry with competing newspapers," says "Non Sequitur" comic creator Wiley Miller of Universal. "Now we only have a few cities with more than one paper, and most of those are JOAs [joint operating agreements]."

And some of the general dailies still around aren't doing as much business with syndicates. For instance, The Dallas Morning News probably purchases fewer syndicated features than before, according to Sue Smith, deputy managing editor for recruiting and development. The economic downturn has led to less space, and Morning News editors -- like editors at many other papers -- devote much of the space they do have to local content that may be more relevant to readers, reports Smith, president of the Newspaper Features Council (NFC).

"We definitely buy less," says John Smyntek, special features and syndicate editor at the Detroit Free Press, who explains this is partly due to space, partly because "much of the material that's offered is already being done here," and partly because the paper wants to run "unique" content no other paper has. He says the Free Press also uses some material from Knight Ridder/Tribune Information Services instead of syndicated content. "It's quite comparable," he says.

Smyntek did note that smaller newspapers with less staff to generate local content will continue to buy many features (including paginated pages) from syndicates. And papers of all sizes will continue to rely on syndicates for comics.

"Very few papers will generate comics and crossword puzzles on their own," notes Phil Haslanger, managing editor of The Capital Times in Madison, Wis.

Jack Loftis, editor emeritus and soon-to-be-retired associate publisher of the Houston Chronicle, says the paper has not cut its huge total of about 75 comics -- or its syndicated buys in general. But it hasn't increased them, either.

"It's been a tough 18 months for syndicates," Haslanger observes. "It's easier [for newspapers] to drop a couple of columns than to lay off an employee." But Haslanger says it's important for papers to have a mix of local content and syndicated material.

Leonard Pitts Jr., a columnist for The Miami Herald and TMS, agrees, and adds, "There's so much media fragmentation that having the common experience [of reading the same column in different parts of the country] is even more valuable than before."

What editors want

All major syndicates offer a wide variety of features, with the mix continually evolving. For instance, there are more features by women and minorities than 20 years ago. But is there something else syndicates could provide that would increase future sales to daily papers?

While syndicates now distribute more features aimed at younger readers, some editors feel syndicates could do better in this area. Vickie D. Ashwill wants more columns with content, tone, and shorter lengths that appeal to people ages 25 to 35. "We're not seeing stuff aimed at this future readership," says Ashwill, features editor of The Idaho Statesman in Boise.

Also needed is a good syndicated column targeting the teens papers are "trying so desperately" to attract, says Pam Dinsmore, assistant managing editor for features at The Sacramento (Calif.) Bee. She reports that the Bee ended up filling this void itself via a column written by a local family therapist.

Discussing a different age group, Naples (Fla.) Daily News Features Editor Harriet Heithaus wishes there was more syndicated content for seniors "that doesn't sound as though they're over the hill." But, she adds, "I do like some of the new religion columns."

Linda Kincaid, deputy managing editor for features at the Boston Herald, would "love to see more hipness" and less duplication. She notes that when a feature is successful, other syndicates often launch similar ones.

Susie Eaton Hopper says syndicates should offer features covering such topics as audiobooks and fashion. The Minneapolis Star Tribune's assistant managing editor for features adds that syndicates should ask newspapers what they want. "No one ever says to me, 'What would you like us to do?' I offer up ideas, but I don't see them transferred into features." Hopper says major syndicates rarely introduce "innovative" material that's "ahead of the curve. I want to be surprised. It never happens."

But Dan Norman, deputy managing editor for features and sports at the South Florida Sun-Sentinel in Fort Lauderdale, feels that syndicates do offer plenty of up-to-date content -- citing, as one example, Allan Wernick's "Immigration & Citizenship" column, which was recently introduced by King Features Syndicate. "I'm a big fan of what syndicates do," Norman says. Lisa Wrenn, features editor of the Contra Costa Times in Walnut Creek, Calif., also says she is "basically satisfied" with syndicated content.

Going weekly

As daily papers fold, shrink space, or use local content, syndicates are trying to compensate by selling more to nondailies.

Former TMS Editor Mark Mathes says a couple of syndicates do a very good job in this area, but others need to pay more attention to the nondaily market. Mathes -- editor and publisher of CommunityNews Publications in Florida's suburban Tampa Bay region -- acknowledges it can be difficult and expensive for syndicates to approach every nondaily, but says many of these papers are grouped into chains.

Some companies, such as King and DBR Media, have had success selling weekly packages to clients that include many nondailies. King says its package goes to more than 1,500 papers. Several syndicates also are starting to sell to America's burgeoning ethnic press. "They're trying to market to what seems to be the future demographics of the country," says Smith in Dallas.

Weeklies and ethnic papers usually don't pay as much for features as large dailies do (syndicate rates are based on client circulation), but it's still money.

Another current and future source of feature sales is the international market. United Media consultant Sid Goldberg says about 30% of United's comic sales are international, and estimates that this will rise to about 40% in a decade. "There are still parts of the world that are untapped," says Goldberg, a former United executive who has been in the syndication business since 1956 and who, like McMeel and Loftis, is a former NFC president. Mathes did note that foreign sales aren't easy -- often requiring syndicates to get help from, and split fees with, people in various countries who possess "local knowledge."

Syndicates also might improve sales by offering more features, such as a medical or a modern military comic, geared to both general papers and niche publications, suggests attorney Stuart Rees, who represents nearly 100 creators on major-syndicate rosters. Jay Kennedy, King's editor in chief, notes that the spiritual "Wildwood" strip sells to both church publications and secular papers.

Creative license

And syndicates need to continue finding revenue from toys, books, and other licensing spinoffs from their features. Licensing has always been "a big driver of syndication revenue," says TMS' Mahoney. For example, United -- a huge merchandising player thanks to "Peanuts" and "Dilbert" -- earned $65.9 million last year from licensing out of total revenue of $88.8 million, according to parent E.W. Scripps Co.'s annual report.

The powerhouse in comic collections and other books is Andrews McMeel Publishing, a sibling of Universal. But AMP would not give out revenue figures or even the number of books sold despite several E&P requests.

Revenue from non-newspaper sources certainly helps when some print clients still pay syndicates as little as $5 a week for a feature. Of course, low prices are one reason why newspapers buy syndicated features rather than hire more staffers or free-lancers to create similar content. "We bring newspapers a wide range of talent that doesn't cost an arm and a leg," says McMeel.

"If you can get something for $5 a week, why hire someone for $50,000 a year?" adds attorney Rees, who says comics are especially desirable to newspapers and Web sites at a time when people want funny images and quick entertainment.

Still, low prices paid by many clients make it harder for syndicates to stay profitable. It also makes it harder for creators to continue features that grow more slowly than features used to grow. "A lot of people can't put their lives on hold while they're making $200 a month," says Copley's Winders.

This paucity of income could affect the talent pool in years to come, as some creators decide success is either impossible or too long in coming -- and instead pursue other fields.

Bigs get smaller

The numbers show there aren't as many widely distributed features as before, not surprising given the troubles faced by syndicates' core daily-newspaper market. The eight biggest syndicates now have 34 comics, columns, and editorial cartoons with 500 or more papers, compared to 42 at that popularity level in 1985. Syndicates also offer several puzzles and paginated pages with 500-plus clients.

But many modest successes can make up for fewer superstars. For instance, Universal in the mid-1990s was hit with the death of Erma Bombeck and the retirement of the creators of "Calvin & Hobbes" and "The Far Side" -- a trio of features with nearly 5,000 clients. But McMeel reports that Universal has more customers now than it did then.

However, the total of major syndicates is going down -- to eight today from 12 in 1985. The latest merger occurred when TMS absorbed the Los Angeles Times Syndicate after the Tribune Co.'s purchase of the Times Mirror Co. in 2000.

Most interviewees predict at least one other syndicate will get bought and merged in the next decade. "I don't see where we would have only, say, two syndicates left," says Smith, "but the number will go down." Creator Miller also sees consolidation ahead: "It wouldn't surprise me if there are only three remaining in 10 years, just like how the auto industry shook out in this country."

Why consolidation? For one thing, economic efficiency. A huge syndicate selling 250 features can do it with less staff than two syndicates each selling 125. And then there's that shrinking number of feature slots in newspapers.

"We're all fighting for the same space," says Newcombe, who adds that he doesn't see any possibility of a new independent syndicate being formed and becoming a major player in the next decade. His Creators (founded in 1987) and Universal (1970) are the last big new kids on the block.

Creators is considered the fifth-largest syndicate, and the top four include -- not necessarily in order of size -- Universal, King (founded in 1915), TMS (1908), and United (whose United Feature Syndicate division dates back to 1923 and Newspaper Enterprise Association division to 1902). Rounding out the top eight -- again, not necessarily in order of size -- are Copley, the New York Times Syndicate, and the Washington Post Writers Group.

Kennedy of King says he could see, in the next decade, some larger syndicates retaining a general-interest approach while other larger syndicates become more niche-oriented. Smaller syndicates, he adds, may have a tough time because it can be expensive to make inroads into the new markets needed to supplement business from daily clients.

Big syndicates are already merging in a certain sense, as they cooperate even while competing. Some use the same comic pagination services, some share international sales efforts, some have features on a rival's Web site, and some see their comics in AMP book collections.

Readers are seeing columns from supplemental news services in slots that once featured columns from syndicates. If papers are buying the wire anyway, the columns are essentially free. "The supplementals have gotten better and deeper," says Mathes of CommunityNews Publications. "They've nibbled away at some single-feature sales."

But, even as supplemental columns take space from syndicated ones, the earnings often go into the same corporate coffers. For instance, the New York Times Syndicate and New York Times News Service obviously have the same parent. And the fact that six of the top eight syndicates are owned by big media companies has helped -- and will help -- them weather tough times, says Mathes.

Do-it-yourself advice

What about cartoonists and columnists who want to avoid corporate connections? It's possible that in the future more of them, helped by the Web, will self-syndicate. "With online and Internet capabilities, cartoonists can create their own Web sites, sample their wares to possible buyers, and deliver it themselves," says Loftis.

But the Web doesn't necessarily make self-syndication more lucrative than before. "There has to be a fundamental change in the mind-set of people using the Internet," cartoonist Miller says. "People think everything is supposed to be free on the Net. So how are you supposed to make a living if you give your product away?"

"There will be a superstar or two on the Web, but others will struggle," adds The San Diego Union-Tribune's Pete Rowe, who is president of the National Society of Newspaper Columnists.

A rare self-syndication success story online and off is the married couple of "off the mark" cartoonist Mark Parisi and business manager Lynn Reznick. She has found 120-plus clients for Parisi's comic panel via their Atlantic Feature Syndicate operation, and also has developed revenue streams from reprint sales, licensed products such as greeting cards, and more. But it took the Boston-area couple 15 years to reach this point, and Reznick says a creator without a business-oriented partner has an even tougher time. "It's extremely difficult to self-syndicate," she says, with one problem being that many papers prefer to deal with big syndicates.

Parisi says the Internet helps with delivery and making "off the mark" known, but Web sales have declined since the dot-com crash. "A lot of sites stopped paying for content," he says.

So, Parisi and Reznick don't see a future boom in self-syndication. But they do cite the benefits -- getting to stay home with their 7-year-old daughter, making their own decisions, not being ignored in a syndicate lineup, and not splitting earnings with a syndicate.

Life of a salesman

But syndicates -- while often keeping 50% of the take -- do allow creators to focus solely on writing or drawing. "They'd rather be creating than marketing and billing," says Winders of Copley.

And syndicates, says Smith, serve an important function in editing material before it's sent to papers. "Everyone needs an editor," she notes, adding that many papers would rather not take the time to closely edit syndicated content.

Before a feature is available to papers, it's signed from among thousands of submissions syndicates receive each year. Syndicates see themselves as gatekeepers separating the wheat from the chaff (though very original and nonmainstream content may get stopped at the gate). "There is a vast quantity of material, of which only a small sliver has a large appeal," says Kennedy. "Syndicates are a filter that saves consumers from sifting through all this material."

As Goldberg notes, "When a Chinese restaurant has a 15-page menu, you need expert advice from the waiter about what's good."