Bloomberg L.P. has raised its profile as a News organization significantly in recent years, expanding beyond its wire service into television, online and print publications while recruiting top-flight editorial personnel as many rival media companies were cutting back.
The company’s roots and core business, though, are in providing financial data, a fact highlighted by its journalists’ ability, until recently, to look up some information about subscribers to Bloomberg’s financial terminals.
Bloomberg disclosed last week that it had restricted its journalists from accessing information about terminal subscribers, including when they last logged on, when they subscribed and how often they accessed features like News or the chat function. The terminals, a major profit driver for the company, provide an array of financial Data to traders, analysts and business executives.
Bloomberg eliminated such access for its journalists in April following a complaint from Goldman Sachs Group Inc., Bloomberg said. Separate concerns had been raised by J.P. Morgan Chase, another big Wall Street client, according to people with the matter.
In its early years, Bloomberg reporters sometimes accompanied salespeople to client meetings, and they were granted access to subscriber information such as broad usage habits to help them participate in the discussions, according to the company. In later years, when Bloomberg grew bigger and journalists participated less in client meetings, Bloomberg didn’t eliminate newsroom access to such information, the company says.
“It started out as a way to serve customers better by having a better understanding of what they used,” Chief Executive Daniel Doctoroff said in an interview Sunday. “That’s not to say we shouldn’t have eliminated it earlier.”
The Federal Reserve and the Treasury Department said they are also looking into the situation. Officials at both the Fed and Treasury have Bloomberg terminals.
In emails to clients and staff Friday, Mr. Doctoroff acknowledged that not restricting its journalists’ access to such information earlier had been a “mistake.” He also noted that Bloomberg last month created an executive position dedicated to overseeing data-compliance matters. The firm appointed longtime Bloomberg executive Steve Ross, previously responsible for day-to-day operations of the terminal business, to the new post. In the interview, Mr. Doctoroff stressed the importance to Bloomberg of data-security measures. “We are elevating that whole focus,” he said.
Bloomberg, founded in 1981 by current New York City Mayor Michael Bloomberg, has grown over three decades from a scrappy vendor to Wall Street bond traders to a provider of financial data, analytics and news.
The company’s terminals are a ubiquitous presence on trading floors from Wall Street to Hong Kong, and they have become ingrained in the culture of modern finance by offering access not just to market Data but everything from stories on financial earnings and acquisitions to restaurant reviews and sports coverage.
Bloomberg started out offering News as an added perk for those who subscribe to its terminals. Now, it is a major player in providing business and financial news.
“In the beginning, it wasn’t fancy, it was nuts and bolts. But Bloomberg is now a leading source for many News categories,” said Tom Rosenstiel, executive director of the American Press Institute.
Mr. Doctoroff described the terminals business and News operation as complementary: the large and lucrative terminals business helps pay for an editorial service that in turn draws subscribers by delivering market-moving news.
But there is a “flip side” to the business model too, Mr. Doctroff said. “When you assure editorial independence, your reporters also do stories on very important clients that can create a level of discomfort sometimes. That’s the way it is, and we have to live with that tension,” he said. Mr. Doctoroff said a strict division separates Bloomberg’s sales department from its News operations.
Bloomberg isn’t alone in its practice of recruiting journalists to go on visits to customers. Senior editors from Dow Jones Newswires have occasionally participated in sales meetings to help explain different News products. Dow Jones & Co., publisher of The Wall Street Journal, competes with Bloomberg in financial News and some other Data services.
A Dow Jones spokesperson confirmed that senior editors sometimes participate in sales meetings, but are careful to respect the company’s strict division Between the News and business operations.
The growth of Bloomberg’s News division, which today includes a financial newswire, BusinessWeek magazine and radio and television programming, has been supported by growth of the flagship terminals business, which accounts for around 85% of revenue. Bloomberg charges about $20,000 annually for a subscription to a terminal, and it has 315,000 subscriptions globally, the company said.
Mr. Doctoroff acknowledged that the financial crisis had forced Bloomberg “to work quite hard” over the last five years to gain market share. The company has increased staff by around 37% since 2007, and it now has around 15,000 employees globally, including 2,400 employees in its News division.
Last year, Bloomberg controlled about 31% of the $25.5 billion annual market for financial data, narrowly beating Thomson Reuters Corp. for the second year to be the world’s largest financial Data provider, according to Burton-Taylor International Consulting LLC, which tracks market share. During that time, less business from Wall Street banks has led many of Bloomberg’s competitors to retrench.
The company’s roots and core business, though, are in providing financial data, a fact highlighted by its journalists’ ability, until recently, to look up some information about subscribers to Bloomberg’s financial terminals.
Bloomberg disclosed last week that it had restricted its journalists from accessing information about terminal subscribers, including when they last logged on, when they subscribed and how often they accessed features like News or the chat function. The terminals, a major profit driver for the company, provide an array of financial Data to traders, analysts and business executives.
Bloomberg eliminated such access for its journalists in April following a complaint from Goldman Sachs Group Inc., Bloomberg said. Separate concerns had been raised by J.P. Morgan Chase, another big Wall Street client, according to people with the matter.
In its early years, Bloomberg reporters sometimes accompanied salespeople to client meetings, and they were granted access to subscriber information such as broad usage habits to help them participate in the discussions, according to the company. In later years, when Bloomberg grew bigger and journalists participated less in client meetings, Bloomberg didn’t eliminate newsroom access to such information, the company says.
“It started out as a way to serve customers better by having a better understanding of what they used,” Chief Executive Daniel Doctoroff said in an interview Sunday. “That’s not to say we shouldn’t have eliminated it earlier.”
The Federal Reserve and the Treasury Department said they are also looking into the situation. Officials at both the Fed and Treasury have Bloomberg terminals.
In emails to clients and staff Friday, Mr. Doctoroff acknowledged that not restricting its journalists’ access to such information earlier had been a “mistake.” He also noted that Bloomberg last month created an executive position dedicated to overseeing data-compliance matters. The firm appointed longtime Bloomberg executive Steve Ross, previously responsible for day-to-day operations of the terminal business, to the new post. In the interview, Mr. Doctoroff stressed the importance to Bloomberg of data-security measures. “We are elevating that whole focus,” he said.
Bloomberg, founded in 1981 by current New York City Mayor Michael Bloomberg, has grown over three decades from a scrappy vendor to Wall Street bond traders to a provider of financial data, analytics and news.
The company’s terminals are a ubiquitous presence on trading floors from Wall Street to Hong Kong, and they have become ingrained in the culture of modern finance by offering access not just to market Data but everything from stories on financial earnings and acquisitions to restaurant reviews and sports coverage.
Bloomberg started out offering News as an added perk for those who subscribe to its terminals. Now, it is a major player in providing business and financial news.
“In the beginning, it wasn’t fancy, it was nuts and bolts. But Bloomberg is now a leading source for many News categories,” said Tom Rosenstiel, executive director of the American Press Institute.
Mr. Doctoroff described the terminals business and News operation as complementary: the large and lucrative terminals business helps pay for an editorial service that in turn draws subscribers by delivering market-moving news.
But there is a “flip side” to the business model too, Mr. Doctroff said. “When you assure editorial independence, your reporters also do stories on very important clients that can create a level of discomfort sometimes. That’s the way it is, and we have to live with that tension,” he said. Mr. Doctoroff said a strict division separates Bloomberg’s sales department from its News operations.
Bloomberg isn’t alone in its practice of recruiting journalists to go on visits to customers. Senior editors from Dow Jones Newswires have occasionally participated in sales meetings to help explain different News products. Dow Jones & Co., publisher of The Wall Street Journal, competes with Bloomberg in financial News and some other Data services.
A Dow Jones spokesperson confirmed that senior editors sometimes participate in sales meetings, but are careful to respect the company’s strict division Between the News and business operations.
The growth of Bloomberg’s News division, which today includes a financial newswire, BusinessWeek magazine and radio and television programming, has been supported by growth of the flagship terminals business, which accounts for around 85% of revenue. Bloomberg charges about $20,000 annually for a subscription to a terminal, and it has 315,000 subscriptions globally, the company said.
Mr. Doctoroff acknowledged that the financial crisis had forced Bloomberg “to work quite hard” over the last five years to gain market share. The company has increased staff by around 37% since 2007, and it now has around 15,000 employees globally, including 2,400 employees in its News division.
Last year, Bloomberg controlled about 31% of the $25.5 billion annual market for financial data, narrowly beating Thomson Reuters Corp. for the second year to be the world’s largest financial Data provider, according to Burton-Taylor International Consulting LLC, which tracks market share. During that time, less business from Wall Street banks has led many of Bloomberg’s competitors to retrench.
