"Can America’s paper of record survive the death of newsprint? Can journalism?"

Is The New York Times on its deathbed? CLICK HERE to read the article accompanying this headline.

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Can America’s paper of record survive the death of newsprint? Can journalism?

Virtually all the predictions about the death of old media have assumed a comfortingly long time frame for the end of print—the moment when, amid a panoply of flashing lights, press conferences, and elegiac reminiscences, the newspaper presses stop rolling and news goes entirely digital. Most of these scenarios assume a gradual crossing-over, almost like the migration of dunes, as behaviors change, paradigms shift, and the digital future heaves fully into view. The thinking goes that the existing brands—The New York Times, The Washington Post, The Wall Street Journal—will be the ones making that transition, challenged but still dominant as sources of original reporting.

But what if the old media dies much more quickly? What if a hurricane comes along and obliterates the dunes entirely? Specifically, what if The New York Times goes out of business—like, this May?

It’s certainly plausible. Earnings reports released by the New York Times Company in October indicate that drastic measures will have to be taken over the next five months or the paper will default on some $400million in debt. With more than $1billion in debt already on the books, only $46million in cash reserves as of October, and no clear way to tap into the capital markets (the company’s debt was recently reduced to junk status), the paper’s future doesn’t look good.

“As part of our analysis of our uses of cash, we are evaluating future financing arrangements,” the Times Company announced blandly in October, referring to the crunch it will face in May. “Based on the conversations we have had with lenders, we expect that we will be able to manage our debt and credit obligations as they mature.” This prompted Henry Blodget, whose Web site, Silicon Alley Insider, has offered the smartest ongoing analysis of the company’s travails, to write: “‘We expect that we will be able to manage’? Translation: There’s a possibility that we won’t be able to manage.”

The paper’s credit crisis comes against a backdrop of ongoing and accelerating drops in circulation, massive cutbacks in advertising revenue, and the worst economic climate in almost 80 years. As of December, its stock had fallen so far that the entire company could theoretically be had for about $1 billion. The former Times executive editor Abe Rosenthal often said he couldn’t imagine a world without The Times. Perhaps we should start.

Granted, the odds that The Times will cease to exist entirely come May are relatively slim. Many steps could be taken to prolong its existence. The Times Company has already slashed its dividend, a major source of income for the paper’s owners, the Sulzberger family, but one that starved the company at precisely the moment it needed significant investments in new media. The company could sell its share of the brilliant Renzo Piano–designed headquarters—which cost the company about $600million to build and was completed in 2007, years after the digital threat to The Times’ core business had become clear. (It’s already borrowing money against the building’s value.) It could sell The Boston Globe—or shutter it entirely, given what the company itself has acknowledged is a challenging time for the sale of media properties. It could sell its share in the Boston Red Sox, close or sell various smaller properties, or off-load About.com, the resolutely unglamorous Web purchase that has been virtually the only source of earnings growth in the Times Company’s portfolio. With these steps, or after them, would come mass staffing cuts, no matter that the executive editor, Bill Keller, promised otherwise.

It’s possible that a David Geffen, Michael Bloomberg, or Carlos Slim would purchase The Times as a trophy property and spare the company some of this pain. Even Rupert Murdoch, after overpaying wildly for The Wall Street Journal, seems to be tempted by the prospect of adding The Times to his portfolio. But the experiences of Sam Zell, who must be ruing the day he waded into the waking nightmare that is the now-bankrupt Tribune Company, would surely temper the enthusiasm of all but the most arrogant of plutocrats. (And as global economies tumble around them, the plutocrats aren’t as plutocratic as they used to be.) Alternatively, Google or Microsoft or even CBS could purchase The Times on the cheap, strip it for parts, and turn it into a content mill to goose its own page views.

Regardless of what happens over the next few months, The Times is destined for significant and traumatic change. At some point soon—sooner than most of us think—the print edition, and with it The Times as we know it, will no longer exist. And it will likely have plenty of company. In December, the Fitch Ratings service, which monitors the health of media companies, predicted a widespread newspaper die-off: “Fitch believes more newspapers and news­paper groups will default, be shut down and be liquidated in 2009 and several cities could go without a daily print newspaper by 2010.”

The collapse of daily print journalism will mean many things. For those of us old enough to still care about going out on a Sunday morning for our doorstop edition of The Times, it will mean the end of a certain kind of civilized ritual that has defined most of our adult lives. It will also mean the end of a certain kind of quasi-bohemian urban existence for the thousands of smart middle-class writers, journalists, and public intellectuals who have, until now, lived semi-charmed kinds of lives of the mind. And it will seriously damage the press’s ability to serve as a bulwark of democracy. Internet purists may maintain that the Web will throw up a new pro-am class of citizen journalists to fill the void, but for now, at least, there’s no online substitute for institutions that can marshal years of well-developed sourcing and reporting experience—not to mention the resources to, say, send journalists leapfrogging between Mumbai and Islamabad to decode the complexities of the India-Pakistan conflict.

Most likely, the interim step for The Times and other newspapers will be to move to digital-only distribution (perhaps preserving the more profitable Sunday editions). Already, most readers of The Times are consuming it online. The Web site, nytimes.com, boasted an impressive 20 million unique users for the month of October, making it the fifth-ranked news site on the Internet in terms of total visitors. (The October numbers were boosted by interest in the election, but still …) The print product, meanwhile, is sold to a mere million readers a day and dropping, and the Sunday print edition to 1.4 million (and also dropping). Print and Web metrics are not apples-to-apples, but it’s intuitively the case that the Web has extended The Times’ reach many times over.

The conundrum, of course, is that those 1 million print readers, who pay actual cash money for the privilege of consuming the paper, and who are worth about five figures a page to advertisers, are far more profitable than the 20 million unique Web users, who don’t and aren’t. Common estimates suggest that a Web-driven product could support only 20 percent of the current staff; such a drop in personnel would (in the short run) devastate The Times’ news-gathering capacity.

If you’re hearing few howls and seeing little rending of garments over the impending death of institutional, high-quality journalism, it’s because the public at large has been trained to undervalue journalists and journalism. The Internet has done much to encourage lazy news consumption, while virtually eradicating the meaningful distinctions among newspaper brands. The story from Beijing that pops up in my Google alert could have come from anywhere. As news resources are stretched and shared, it can often appear anywhere as well: a Los Angeles Times piece will show up in TheWashington Post, or vice versa.

But the business strategy of TheNew York Times, as practiced since Abe Rosenthal’s editorship in the early ’70s, when New York magazine first threatened the daily’s stranglehold on the city’s lumpen upper-middle class—and as imitated by countless papers around the country—has undermined the perceived value of serious newspaper journalism as well. Under the guise of “service,” The Times has been on a steady march toward temporarily profitable lifestyle fluff. Escapes! Styles! T magazine(s)! For a time, this fluff helped underwrite the foreign bureaus, enterprise reporting, and endless five-part Pulitzer Prize aspirants. But it has gradually hollowed out journalism’s brand, by making the newspaper feel disposable. The fluff is more fun to read than the loss-leading reports about starvation in Sudan, but it isn’t the sort of thing you miss when it’s gone. Not many people would get misty-eyed over the closure of, say, “Thursday Styles,” fascinating as its weekly shopping deconstructions often are.

What would a post-print Times look like? Forced to make a Web-based strategy profitable, a reconstructed Web site could start mixing original reportage with Times-endorsed reporting from other outlets with straight-up aggregation. This would allow The Times to continue to impose its live-from-the-Upper-West-Side brand on the world without having to literally cover every inch of it. In an optimistic scenario, the remaining reporters—now reporters-cum-bloggers, in many cases—could use their considerable savvy to mix their own reporting with that of others, giving us a more integrative, real-time view of the world unencumbered by the inefficiencies of the traditional journalistic form. Times readers might actually end up getting more exposure than they currently do to reporting resources scattered around the globe, and to areas and issues that are difficult to cover in a general-interest publication.

As David Remnick, the editor of The New Yorker, pointed out at a recent media breakfast, the blogging and local reporting from Mumbai in the early hours of the November terrorist attacks were nothing short of remarkable. Ditto in New Orleans after Hurricane Katrina. I recall avidly following the 2006 crisis in Lebanon through a variety of sources, none less interesting or credible because it was, say, Haaretz instead of The Times. Like neighboring hospitals coordinating their purchases of expensive MRI equipment, journalistic outlets will discover that the Web allows (okay, forces) them to concentrate on developing expertise in a narrower set of issues and interests, while helping journalists from other places and publications find new audiences.

In this scenario, nytimes.com would begin to resemble a bigger, better, and less partisan version of the Huffington Post, which, until someone smarter or more deep-pocketed comes along, is the prototype for the future of journalism: a healthy dose of aggregation, a wide range of contributors, and a growing offering of original reporting. This combination has allowed the HuffPo to digest the news that matters most to its readers at minimal cost, while it focuses resources in the highest-impact areas. What the HuffPo does not have, at least not yet, is a roster of contributors who can set agendas, conduct in-depth investigations, or break high-level news. But the post-print Times still would.

Clearly, over the short run, there would be a culling of the journalistic herd. If 80 percent of The Times staff ends up laid off, many of them won’t find their way to new reporting jobs. But over the long run, a world in which journalism is no longer weighed down by the need to fold an omnibus news product into a larger lifestyle-tastic package might turn out to be one in which actual reportage could make the case for why it matters, and why it might even be worth paying for. The best journalists will survive, and eventually thrive. Some will be snapped up by an expanding HuffPo (which is raising millions while its print competitors tank) and by the inevitable competitors that will spring up to imitate its business model, or even by smaller outlets, like Talking Points Memo, which have found that keeping their overhead low allows them to profit from high-quality journalism. And some will succeed as independent operators. Figures like Thomas Friedman, Paul Krugman, and Andrew Ross Sorkin (the editor of the DealBook business blog, which has been a cash cow for The Times) would be worth a great deal on the open market. For them and others, the bracing experience of becoming “brands of one” could prove intoxicating, and perhaps more profitable than fighting as part of a union for an extra percentage-point raise in their next contract.

Ultimately, the death of The New YorkTimes—or at least its print edition—would be a sentimental moment, and a severe blow to American journalism. But a disaster? In the long run, maybe not.