Newspapers continue to feel the Pressure

The New York Times reported that most of the industry’s executives and analysts believe newspapers will continue to be cannibalized by online, Internet competition and shrink. In 2007, combined print and advertising revenue fell about 7% and ad revenue was 20% below its 2000 peak. Circulation revenue has declines steadily since 2003. The Boston Globe and The Los Angeles Times both reported they have lost 30 to 40% of their circulation in the last few years. Local advertising has fallen, while national ads have actually increased somewhat. It was also noted that the real estate downturn has affected newspaper business.
Newspaper executives have done a poor job adopting to the Internet and being more creative on generating revenue. Perhaps the only savior now is the migration of newspapers now offering news on the Internet and joining the online world.
As reported in so many past news releases on our site, Newsprint, the paper used for newspapers, continues to decline in demand.