Ken Doctor writes for Nieman Journalism Lab about the changing strategy at Dow Jones & Co., the parent of The Wall Street Journal, under CEO Lex Fenwick.
Doctor writes, “Public attention on Fenwick has focused on two things. One is his management style. Fenwick is universally described as a man who likes to be the decider, a top-down exec in an age where at least the hint of collaboration is nearly universally espoused. Secondly, the information world has been astounded at his remaking of the B2B side of Dow Jones.
“Launched after lots of internal integration at year’s end, DJX has become Dow Jones’ Bloomberg. It’s one product, largely at one price, bringing together its Factiva enterprise information services, the Dow Jones Newswires, and much more. The early reaction to the higher pricing (with some customers being asked to pay three times or more what they previously did) and to the lack of separate product choice has been noteworthy. Cancellations have been reported, but it’s too early to know the overall business impact of the major change.
“What’s important for Journal watchers to know is that the same single-product, single-price strategy now being tested in the B2B marketplace has been applied to the Journal.
“As the application became clear, the exodus began. The Journal has seen dozens of managers leave. Alumni talk about the exodus of summer 2012 and summer 2013. Within six months of Fenwick’s arrival in February 2012, the departures had begun, concentrated early on in and around the Factiva business. Some were forced; many were voluntary. The summer timing wasn’t coincidental: News Corp’s fiscal year ends June 30, and annual bonuses are paid in August. Consequently, it is the last 18 months of the Journal that have seen the greatest change.”
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