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<strong>Freedom</strong> <strong>Communications</strong> — <strong>American</strong> Executive Spotlight<br />

http://www.redcoatpublishing.com/spotlights/sl_04_06_freedomcomm.asp<br />

04/04/2006 10:14 AM<br />

Page 1 of 3<br />

<strong>Freedom</strong> <strong>Communications</strong><br />

concerns.<br />

Scott Flanders discusses how focusing on<br />

individual liberties is keeping his company on<br />

track. Amanda Barber reports.<br />

In the age of on-demand information, picking<br />

up a local newspaper is not necessarily the<br />

best way to get a news update. So it’s<br />

understandable that remaining relevant is at the<br />

forefront of the print media industry’s<br />

Lately, many in the print media are shifting focus toward other<br />

media. But for Scott Flanders, the newly appointed president and<br />

CEO of <strong>Freedom</strong> <strong>Communications</strong>, Inc., the fourteenth largest<br />

media company in the US, the idea of turning away from print<br />

media has never crossed his mind.<br />

“Nationwide, the newspaper industry is losing circulation,” said<br />

Flanders. “We’re choosing not to participate in that trend. We are<br />

going to modify, redesign, and re-edit our existing print products to<br />

ensure that we are gaining total circulation in our markets.”<br />

With more than 20 years of experience in the media business,<br />

Flanders has a variety of specific ideas on how to carry his<br />

company to the top. As he looks to expand the company’s printmedia<br />

empire, the most important one is adhering to the core<br />

beliefs of <strong>Freedom</strong>’s founding father, R.C. Hoilies—respect for<br />

individual freedom, liberty, and integrity.<br />

“We believe in a personal responsibility,” said Flanders. “We keep<br />

that as a core corporate principal.” Already labeled a trusted local<br />

authority for news and information in the Texas, California, North<br />

Carolina, and Northwest Florida markets, Flanders believes the<br />

company’s libertarian values are an added bonus to any company<br />

willing to participate in the <strong>Freedom</strong> ideology.<br />

“We provide a great deal of autonomy to our local publishers and<br />

general managers so they can lead their media properties to be<br />

responsive to their community,” he said. “We absolutely want to<br />

support the local brands.”<br />

As many small, local companies struggle to compete with<br />

nationwide publications, <strong>Freedom</strong> offers an umbrella of fiscal<br />

comfort without the restraints associated with a homogenized<br />

corporate dictatorship.<br />

“We don’t interfere with editorial independence and are committed<br />

to private ownership,” said Flanders. “We do more than just bring


<strong>Freedom</strong> <strong>Communications</strong> — <strong>American</strong> Executive Spotlight<br />

http://www.redcoatpublishing.com/spotlights/sl_04_06_freedomcomm.asp<br />

04/04/2006 10:14 AM<br />

Page 2 of 3<br />

to private ownership,” said Flanders. “We do more than just bring<br />

money to the table. We bring the ability to have the legacy of a<br />

local media company preserved under our umbrella.”<br />

Past and present<br />

Although newspapers have traditionally taken one-size-fits-all<br />

approach, Flanders believes the future of newspapers is in<br />

segmentation. He sees an increasing need to have customized<br />

newspapers based on household demographics such as age,<br />

economics, and language. One of the company’s first ventures into<br />

this philosophy has started to pay off.<br />

“Our La Frontera Spanish-language newspaper in Texas turned a<br />

profit in January for the first time,” said Flanders. “We’ve been<br />

investing at a prudent pace over the past couple of years, and our<br />

Spanish products are starting to turn a profit.”<br />

He attributes this success to his company’s ability to build off of<br />

its core strength. These local innovations use the existing printing<br />

press as well as focusing on <strong>Freedom</strong>’s ideology on personal<br />

ownership and community involvement.<br />

“Our publishers get rated every year on their stewardship in their<br />

communities,” said Flanders. “We rank them against their peers in<br />

a number of categories, but the most important is that one.”<br />

The space between<br />

Along with his plans for segmentation and diversification for the<br />

company’s print media, Flanders intends to invest in the<br />

company’s interactive space and beef up online revenues. He<br />

believes that by coupling print media with Internet development,<br />

<strong>Freedom</strong> will be able to keep its head above water—and possibly<br />

gain some ground.<br />

“I am increasing our focus on print innovation as well as our<br />

online efforts,” he said. “We are putting more investment against<br />

both of those initiatives, and the early results are favorable.”<br />

The company’s online revenues are currently at 3% of total<br />

revenue. Flanders plans to get that figure up to 10% quickly, with<br />

a goal of achieving $100 million of interactive revenue in three<br />

years. With advertising as the company’s primary revenue source,<br />

Flanders knows that by maintaining relevance in local print media,<br />

local online media will also flourish. The company already spends<br />

around $20 million on IT, not including its Internet efforts.<br />

“We have URLs beyond our newspaper brands,” he said. “For<br />

example, in Colorado Springs, we have Coloradosprings.com. A<br />

lot of visitors to Colorado Springs don’t know the local<br />

newspaper, and when they search for Coloradosprings.com, there<br />

we are.”<br />

The company is currently recruiting for a president of its<br />

interactive development. Flanders said he wants to bring someone<br />

in with a diversified media background to support <strong>Freedom</strong>’s<br />

efforts. “It will enable us to consolidate our efforts and leverage<br />

the scale we have as a billion-dollar company,” he said.<br />

Rules and regulations<br />

With such an enlightened point of view regarding company policy,<br />

it is interesting to hear Flanders’ views surrounding governmental<br />

regulations. With five CBS and three ABC affiliates to manage,<br />

Flanders has a definite opinion about federal regulation.


<strong>Freedom</strong> <strong>Communications</strong> — <strong>American</strong> Executive Spotlight<br />

http://www.redcoatpublishing.com/spotlights/sl_04_06_freedomcomm.asp<br />

04/04/2006 10:14 AM<br />

Page 3 of 3<br />

Flanders has a definite opinion about federal regulation.<br />

“I believe that the cross-ownership rules and the duopoly rules of<br />

the FCC are antiquated,” he said. “I believe that government<br />

should take a minimalist approach to restraint on trade and<br />

corporate activity. The free market is best at sorting out those<br />

issues.”<br />

Although the First Amendment protects <strong>Freedom</strong>’s newspapers, its<br />

television stations are licensed by the FCC. There are many<br />

restrictions and requirements on programming choices, but<br />

Flanders said this is something they have learned to live with. As<br />

with most issues surrounding his business, he keeps a positive<br />

outlook.<br />

“With so many other sources of news, information, and<br />

entertainment that you can acquire from home, those crossownership<br />

and duopoly rules need to be reevaluated,” he said.<br />

“They need to be careful and not to react precipitously, but the<br />

FCC appears to be headed in the right direction.” The same could<br />

be said for <strong>Freedom</strong> <strong>Communications</strong>.<br />

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