Canada Watch Exclusive:
ImpreMedia’s John Paton Becomes the First Canadian to Assume the Mantle of E&P Publisher of the Year
John Paton, the Scottish-born, New York-based Canadian who was recently named “Publisher of the Year” by Editor & Publisher magazine, has a lot on his mind.
In 2003, he and his then-partner Doug Knight (another Canadian), established impreMedia, which, according to Editor & Publisher, has quickly become “the first successful nationwide Hispanic newspaper, print, and online publishing company in the United States.”
Backed by private equity funds Clarity Partners, ACON Investments, and Halyard Capital (itself backed by the Bank of Montreal), impreMedia’s opening salvo stateside was the acquisition of New York’s El Diario La Prensa, and, continuing with Spanish-language newspapers in Los Angeles and Chicago, among other cities, impreMedia’s national footprint now includes publications in 16 markets and a reach that takes in 62 per cent of US Hispanics.
All of this has been played out against the backdrop of an industry – the newspaper business – that is facing the economic crisis with concerns for its future. On the state of newspaper publishing, Mr. Paton reflects an appealing blend of fatalism and optimism, but it is perhaps the former instinct that has spurred impreMedia’s multi-platform approach to delivering the news. Well ahead of the digital curve, impreMedia has established a print, online, and mobile delivery system that, combined, is the largest source of Hispanic news and information. The diversification into digital has been startling for its breadth: impreMedia produces everything from online sites to widgets to video to mobile content. In addition, the company has diversified via numerous partnerships, including deals with MySpace, Univision, and ESPN.
With economic uncertainty the status quo and the country’s newspapers – even those as seemingly secure as the hallowed New York Times – wringing their collective hands, it’s no wonder that Mr. Paton, impreMedia’s Chairman and CEO, has a lot on his mind. In the days following his prestigious “Publisher of the Year” honors, Canada Watch was there to help him unload.
John Paton.
Canada Watch (CW): Congratulations: you’re the first-ever Canadian to be named Editor & Publisher’s Publisher of the Year. It seems to some of us looking in from the outside like an obvious and inevitable choice. Is it something you ever considered?
John Paton (JP): No, it isn’t something I ever considered. In this business you tend to think of the E&P award going to a Sulzberger at The New York Times – which, when I think of it, that actually did happen some years ago. I will say that I am vain enough to enjoy the honor, but I hope smart enough to know better than to pursue awards. Hopefully, awards are the result of a lot of hard work and making the right decisions for the company. Plus, I have to say that while only one name goes on the award it truly is the result of a lot of work by a lot of people at the firm.
CW: You are a bit of an anomaly in that, on one hand, you’re a newsprint-in-the-veins, old-school, copy-boy-to-editor-and-chief success story like something out of the gum-smacking days of ’30s Hollywood. On the other hand, you’re a graduate of Harvard’s executive finance program who lives and breathes the business/strategic/ money side of the business. How does that both-sides-of-the-aisle experience help you day-to-day, and do you ever get involved on the editorial side of impreMedia’s operation?
JP: I couldn’t do what I do without either of those experiences. I went into the financial end of the business because it was clear the industry was dramatically changing and that if you care about it, you had better find ways of doing business. So that meant better financial training and from there it was easy to make the decision to do the program at the Harvard Business School. The HBS program taught me about analysis and financial structure, but it was the copy-boy-to-Publisher path that taught me the business. And that business, plain and simple, is journalism. I didn’t learn a single thing about journalism from an Excel spreadsheet.
CW: E&P referred to you having achieved your vision of a “national footprint” for impreMedia, making the case that many companies have tried and failed to establish that national presence. What’s your secret?
JP: Our executive team is smarter and better than those who tried this before. And, I would say, they are much more determined. Our senior executives have had this dream a long time and have brought, and are bringing, everything they have learned along the way to make this a success. If there is any secret, it has been in building the team at impreMedia. As well, we are completely open to sharing our content, and that now includes partnerships with Univision, Televisa, MySpace, ESPN, McClatchy, and Hearst to name a few. Those partnerships have vastly increased our national footprint and audience.
CW: You started in 2003 by acquiring the oldest Spanish-language daily in America, El Diario La Prensa in New York City. Was that always going to be the shot across the bow…? Did it send a message to Spanish-language media in this country that the new kid means business?
JP: In the beginning, our acquisition of El Diario La Prensa actually garnered much more attention outside of the US than in it. US media companies have been relatively slow to recognize the power of the Hispanic market. That isn’t the case with media companies in Spain, Mexico, and South America. Those firms are well-versed in the size, buying power, and demographic growth of Hispanic America, and they noticed when we took that first step.
CW: Then came La Opinion in LA and La Raza in Chicago. Some of these were steeped in family tradition – La Opinion and the Lozano family, for example. Were there issues there when these two guys from Canada [Doug Knight, now the Publisher at St. Joseph Media in Toronto, was a partner in the fledgling company], who didn’t speak Spanish, came in looking to buy up the business?
JP: We have made eight acquisitions in the last five years and started one company from scratch. There are always issues when acquiring media companies, particularly when they are owned by families and come with deep and meaningful traditions. A successful transaction only happens when the seller is convinced that you intend to uphold and enhance those traditions. It helps if you have a track record in doing just that. Our team does, and that has been a key to our success.
CW: I’m assuming your initial acquisition targets were a reflection of market size – that you started with the largest Spanish-language markets and moved from there. Were there any markets where you met with resistance, where you just couldn’t make it happen?
JP: Yes. Miami. There, the big Spanish-language daily, El Nuevo Herald, is owned by the McClatchy Company – the second-largest newspaper company in the country. They are not interested in selling, but we were able to strike an innovative content and sales alliance with them, which allows us to cover off the Miami market.
CW: Several Spanish-language dailies, including in Dallas and Fort Worth, have backed off daily and gone weekly. Did you ever have those markets in your sights? Would things have been different for those papers had impreMedia acquired them?
JP: We also cover off those markets with our alliance with McClatchy in Dallas-Fort Worth (DFW). I understand why McClatchy took the steps it did in DFW with its Spanish-language products. We produce news and information products for Hispanics as our primary business. That gives us scale and skill sets that a mainstream media company does not have.
CW: You’re ahead of the curve on digital platform as a delivery system for news: is that where it’s all headed? You’ve got newsprint in your veins…are you going to require a transfusion?
JP: My father was a printer, and I am a copy boy-turned-reporter-turned-editor-turned-publisher-turned-CEO, but it isn’t newsprint that’s in my veins, it’s journalism. I am now in the business end of journalism, but it is journalism all the same, and that’s what matters no matter the delivery mechanism. I have been the CEO of journalism companies on the web, including divisions in the US, Canada, France, and Spain, going back to 1999. The only thing that made those companies successful was the quality of their content, their journalism.
CW: You’re now in 16 markets and reach an incredible 62 per cent of US Hispanics…it doesn’t sound like publishing is dead yet.
JP: And about 40 per cent of all US Hispanic adults use one of our products. So, no, publishing is a long way from being dead. But all businesses have to grow or they die. The fastest growing part of the news business is digital: web, video, widgets, mobile, etc. Companies like mine have to produce ever more products for our customers on the delivery platforms of their choice. That means investment in the newer platforms which are still revenue-constrained in these early days, while becoming ever more efficient – particularly on costs – on the legacy side of the business. It is those new platforms that let us partner with everyone from MySpace to ESPN. And those partnerships mean opportunities for growth.
CW: Your experience in Canada – again, starting as a copy boy at the Toronto Sun and moving all the way up the ladder to playing a key role in selling Sun Media to Quebecor in 1999 for $1.3 billion – pretty much covers the waterfront. I’m wondering if there’s any aspect of the business that surprised you when you moved here [Mr. Paton lives in Manhattan] in 2003, anything that’s markedly different about the way things are done stateside, even market-to-market.
JP: In my experience, business, any kind of business, in the US is a much more exciting, faster, and rougher game than it is in Canada. The market possibilities here sometimes seem endless.
CW: On the editorial front, you’ve cited some differences between Canada and the US. You were quoted in E&P, saying, “The capacity to right wrongs is infinitely superior to Canada, where publishing laws can be quite strict. The First Amendment here is a real joy.” I think a lot of Canadians would be surprised to hear that. Can you elaborate?
JP: The burden of proof for publishers in Canada, in my opinion, is too high. Ask any editor in Canada who has had to spike stories on organized crime. Or the ridiculous situation where editors run stories on a convicted murderer’s arrest on a second murder, but, on the advice of their libel lawyers, do not mention the previous murder conviction when the second murder case comes to trial. The one area where citizen journalism and the new technologies provide a great benefit is in this area of publication. They will, in the end, force a change to those overly-restrictive laws.
CW: You strike me as one of those people who will never retire. Is that true, do you think, or do you see yourself in some distant future puttering around that 16th-Century farm you’re restoring in France, having accomplished all you set out to accomplish in the newspaper business?
JP: In a word, no. I love the farm and while I want to spend more time there – particularly in the planting and nurturing of a new apple orchard I have planned – I don’t want to retire.
CW: Do you own a Kindle?
JP: No. I do, however, experiment with everything. I have used a Sony Reader, iPod, TREO, and Blackberry, etc. I also have accounts on Facebook and Twitter so as to experiment and monitor new media developments.
CW: Thanks for taking the time with Canada Watch, and congratulations again on being named “Publisher of the Year.”
JP: Thank you.
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Minister Day Works with Provincial and Territorial Partners to Promote Trade
Canada’s Minister of International Trade and Minister for the Asia-Pacific Gateway Stockwell Day last month concluded a successful meeting with provincial and territorial trade ministers in which they discussed ways to advance Canada’s international trade and investment agenda.
“During this economic downturn, my colleagues and I are working together to expand trade opportunities for Canadian exporters and create more jobs across Canada in a wide range of sectors, from agriculture and forestry to aerospace and information technology,” said Minister Day. “We want to build new partnerships with emerging markets in China and India, support continued free trade and investment with the United States, and deepen our commercial ties with the European Union.”
Minister Day added: “The downturn, as serious as it is, also provides an enormous opportunity to enhance our competitive position in North America by tackling cross-border issues that have been limiting our growth. The provinces and territories can support these efforts by actively engaging with US state governments and reinforcing the message that Canada is an important partner as we work for the future of North America.”
Minister Day also reported on his meetings with European ministers, in which he sought support for a closer Canada-EU economic relationship. He stressed the importance of an enhanced economic agreement with the EU, something for which the provinces and territories reiterated their support.
Minister Day and his provincial and territorial counterparts also discussed Canada's engagement with emerging markets, such as China and India – two of the fastest-growing economies in the world – and how best to seize opportunities for Canadians in those markets. This important engagement helps Canadian firms thrive abroad and create jobs at home.
Canada and India have already agreed to initiate exploratory discussions toward a comprehensive economic partnership agreement to better take advantage of the huge trade and investment potential that exists between the two countries, especially in the areas of infrastructure, agriculture, and industrial goods.
“Our government values close collaboration with provinces and territories in advancing Canada's trade agenda," said Minister Day. "The provinces and territories are key partners in supporting successful trade relationships, and we discussed how best to position Canada in international markets.”
The ministers also talked about a number of other issues including the current state of the Canadian economy and Canada's ongoing bilateral trade agenda.
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Infonaut: Tracking Outbreaks in Real Time
Ever since Dr. John Snow discovered the water pump that was a primary source of London’s 1854 cholera outbreak – he found it by “mapping” the spread of the disease and determining the location of its biggest clusters – cartography and containment have been linked.
In 2009, it’s Infonaut’s turn. The Toronto company, a small, cutting-edge firm on the front lines of “putting health on the map,” is using software to create efficient maps that reveal easily discernible infection patterns.
Infonaut’s principals, CEO Niall Wallace and COO Matt McPherson, were healthcare IT professionals working for the Ontario government in 2003, when the SARS outbreak hit. Following that scare, which adversely affected their home city of Toronto, they decided to fill what they saw as a critical gap in the resources available to healthcare personnel. During their government work, they had learned the value of visually represented, real-time infection data, and that experience led to their vision for Infonaut.
At the moment, the company – the subject of a recent feature article in Canada’s national daily The Globe and Mail – has three software products that convert infection information into maps. The products are currently being pilot-tested, and Infonaut is commercializing their offerings through a common platform called Infonaut Live.
In the case of one of these products, Infection Watch Live, it takes data received by the local public health agency (KLF&A Public Health) from 14 hospital emergency rooms in eastern Ontario and converts it into publicly accessible maps that show where in the region cases of respiratory (e.g. influenza) and gastrointestinal diseases are more active than seasonal norms. The other two products are Hospital Watch Live (it uses radio sensors attached to hospital patients, staff, and assets to track and map their movements and interactions) and Regional Watch Live (it generates maps and reports for regional health professionals by merging a whole range of information, including lab test results).
Infonaut’s positioning is strong, especially with “pandemic anxiety” in the air. Far from exploiting fears, however, the company is contributing to the next wave of knowledge that should help health professionals – and the public – stem the tide of spreading disease. By shedding light on the spread of infectious disease and mapping that spread, Mr. Wallace and Mr. McPherson hope it can be contained.
“We’ve designed our systems to empower people across the continuum of care,” Mr. McPherson told Canada Watch. “They enable infection control personnel to trace the spread of disease inside a hospital, public health professionals to identify regional clusters of disease, and the general public to understand trends in their community.”
He added: “It’s about helping people make better decisions – by getting the right information to the right person at the right time.”
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Canadian Green Building Mission Comes to New York
The Consulate General of Canada in New York recently organized its first Canadian Green Building Educational and Business Development Mission to the city, a program that included 10 companies from Ontario, Quebec, and British Columbia. Each of the companies offer green energy efficiency solutions for retrofit projects. In addition, three distinguished speakers from Stantec (a design and consulting firm from Vancouver), LÓEUF (an architecture firm from Montreal), and Enerlife Consulting (a “Green Building” consulting firm from Toronto) presented as part of a seminar for New York City-based green building experts.
The objective of the mission – which was presented by the Canadian Consulate in partnership with the Quebec Government Office in New York, the Government of Ontario, the American Institute of Architects (New York and New Jersey Chapters), the US Green Building Council (New York and New Jersey Chapters), and the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (New York Chapter) – was educational, while focusing on business opportunities for participants. Participating Canadian companies learned of green retrofit opportunities in the New York metro area and New Jersey, and met one-on-one with interested companies. All tolled, over 100 meetings were arranged for the 10 Canadian companies. In addition, they were invited to showcase their products and services to over 175 key decision-makers in the green building industry, including architects, engineers, LEED/energy consultants, contractors, and real estate owners and managers.
The mission also presented an educational panel discussion – entitled Greening Existing Buildings: Successes and Lessons Learned in Canada. In light of Mayor Bloomberg’s ambitious commitment to reduce greenhouse gas emissions from existing public buildings by 30% by 2030, in addition to the Bloomberg Administration’s recently announced legislative proposal (Greener Greater Buildings Plan), which requires existing buildings of over 50,000 square feet to comply with benchmarking, audits and retrofit, and lighting upgrades, the panel discussion was highly relevant.
Panellists included Ian A. Jarvis, President of Enerlife Consulting Inc., Blair T. McCarry, Principal, Stantec, and Danny Pearl, Founding Partner of LÓEUF and Adjunct Professor of Architecture at the School of Architecture, Université de Montréal. Bruce Fowle, of FXFOWLE, an important leader in New York City’s green building movement, moderated the discussion.
Following Canadian Consul General Daniel Sullivan’s welcome remarks, the panellists presented and discussed success stories and lessons learned in greening existing buildings in Canada and how these lessons might be applied to greening efforts on this side of the border.
Specific case studies were presented, including: the Benny Farm project in Montreal, a post-war housing redevelopment project with over 500 new or renovated affordable housing units that won the Bronze medal at the Global Holcim Awards in 2006; and the energy retrofit plan for Toronto City Hall, a landmark building designed by Finnish architect Viljo Revell.
This Green Building Mission provided the kind of cross-border cooperation, education, and business development that continues to fuel the US-Canada trading partnership. Sharing best practises and partnering on a “greening” process that is becoming more relevant daily can only bode well for participants of this inventive program.
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