Essentially, newspaper advertising
broke its cyclical mold -- booming and fading with the broader economy. There was a substantial decline in 2007 unaccompanied by broader economic woes. Print circulation is down, and according to the Times online revenue can't make up the gap: "... for every dollar advertisers pay to reach a print reader, they pay about 5 cents, on average, to reach an Internet reader. Newspapers need to narrow that gap, but the rise in Internet revenue slowed sharply last year."The problem for most newspapers is that they are finding themselves without much of a moat on the internet -- Being the major newspaper in a small city is very different from competing with literally everyone else for web traffic. News aggregators such as Google (NASDAQ: GOOG), Yahoo! (NASDAQ: YHOO), and RSS feeds are probably killing newspapers.
Warren Buffett was once a big fan of small newspapers but unfortunately, all the reasons he liked them are no longer true: They don't have monopolies anymore. You can set up My Yahoo! to deliver you local news and there's just no reason to buy a newspaper for national news with the wealth of online resources available.
Newspapers aren't dead yet but they're definitely dying and I can't think of anything that could possibly reverse it.











Reader Comments (Page 1 of 1)
2-07-2008 @ 9:47AM
Angie said...
Where is the local news supposed to come from if not from newspapers? How much time can a local TV or radio station spend on one topic? There is a lot more local information in a newspaper than can possibly be conveyed in a TV or radio station broadcast. And since internet earnings can't catch up with print revenue, how will a local web news site afford a staff of real reporters?
After Hurricane Katrina, what was one of the first services that was available to New Orleans? The NOLA newspaper! Free copies were put in stacks all over town and included information on where to go to get food and other necessities. How long would it be for people to have the availability of electricity to power the radio & tv stations, or the residents' televisions, radios and computers? I guess the only other way they could have had news was to have trucks broadcasting from loadspeakers and driving through town!
I think that newspapers are their own worst critics and need to SHUT UP already about the industry dying.
2-07-2008 @ 10:38AM
RJ said...
ALL THE NEWS PAPERS AND MAGS HAVE TO DO IS START TELLING THE TRUTH AND QUIT EDITORIALISING EACH STORY. I KNOW MANY WHO HAVE STATED THAT EVERY TIME A BIG NEWS STORY IS PRINTED THAT IS WRITTIN AS A FACTUAL STORY BUT CONTAINS MOSTLY WHAT THE REPORTER WANTS TO EXPRESS HIS OPINION BY CLOUDING THE TRUTH AND THEN THE TRUTH COMES OUT; THEY PRINT THE RETRACTION ON PAGE 35.
2-07-2008 @ 10:46AM
dale long said...
news papers going out of business!... what wonderful news....hope the new york times is the first to go...bye bye pinch! sgd dale
2-07-2008 @ 4:34PM
Dwight said...
Newspapers are a textbook example of what eventually happens to monopolies. We deal with newspapers nationwide and can tell you without reservation that they all act in typical arrogant, monopolistic fashion (with the exception of newspapers in small towns). Their display ad departments don't know the first thing about treating a customer right. They do what they want to do and when they want to do it and expect to get paid full price for very substandard service. They also price themselves out of the market for small businesses and rely upon major retailers to buy their space albeit at greatly reduced contract rates.
2-08-2008 @ 10:17AM
Laurel Lee said...
It appears that the newspaper industry is hurting in the daily sector not the local weekly sector. As a matter of fact across the country dailies are buying up the local weeklies because they are doing much better than the dailies. The local weeklies are truly where we get our real local news and there will probably not be a downfall in that area.
2-08-2008 @ 10:30AM
Laurel Lee said...
While the newspaper industry may be hurting it is primarily with the dailies. The local weekly sector may be slightly down but not anywhere as much as the dailies are. Actually across the country the dailies are either buying up the local weeklies or creating their own weekly version to try to boost their falling revenues. People, in their busy lives are not always able to read a paper every day and find that since a weekly paper only comes once a week, and that is where the true local news actually comes from, they are choosing their local weekly as their paper of choice.
2-16-2008 @ 1:59AM
Jt said...
Who reads newspapers any more??? Seriously! Get a grip, people go online for World, national and local news. Say goodbye to the Bowler Hat, the fax machine, pagers, NCR papper, typewritters, garters....
2-16-2008 @ 2:16AM
Jt said...
Who reads newspapers any more??? Seriously! Get a grip, people go online for World, national and local news. Say goodbye to the Bowler Hat, the fax machine, pagers, NCR papper, typewritters, garters....
3-24-2008 @ 9:20AM
teamsprtcncpts said...
Maybe if they stuck to reporting the actual news instead of pushing their own agenda people would read them.The media in the U.S. is so corrupt you have to figure out who to believe.The same goes for the television media.You give accurate and honest news and let the people decide.Keep your views to yourself.