Newspapers suffering, but far from dying
Posted by Jean Yves Chainon on October 24, 2007 at 11:13 AM
Fortune editor-at-large Richard Siklos argues that, despite many troubles, newspapers have yet a long life ahead of them, in an article entitled “Newspapers down but definitely not out.”
Among the grim news for newspapers last week: US’ two biggest paper publishers, Gannett and McClatchy, both reported a decrease in revenues and profits. Scripps (following Belo) announced it was splitting its growing television and interactive assets from its declining newspaper publishing operations – in an effort to keep investors happy.
Yet there are also plenty of reasons for newspapers to remain optimistic. “One is that an industry's lack of appeal to public shareholders should not necessarily be confused with its viability,” says Siklos. Secondly, most US newspapers still generate comfortable profit margins. Thirdly, industry insiders are regaining hope that growing digital revenues will eventually compensate declining print revenues (when is not sure). Newspapers will have their rebirth when the lines eventually cross.
Finally, despite all the talk about newspapers’ declining ad revenues, they still “rank, at least for now, in overall spending in the pantheon of media industries fighting for dollars from consumers and advertisers,” writes Siklos. One in four ad dollars in the US is still spent on newspapers.
So newspapers have time ahead of them, although nobody questions the fact that they are in serious need of reinvention, a process most have embraced of late.
“Call me ink-stained and old-fashioned, it seems a bit premature to put a $60-billion industry on the endangered species list,” concludes Siklos.
Source: Fortune
Yet there are also plenty of reasons for newspapers to remain optimistic. “One is that an industry's lack of appeal to public shareholders should not necessarily be confused with its viability,” says Siklos. Secondly, most US newspapers still generate comfortable profit margins. Thirdly, industry insiders are regaining hope that growing digital revenues will eventually compensate declining print revenues (when is not sure). Newspapers will have their rebirth when the lines eventually cross.
Finally, despite all the talk about newspapers’ declining ad revenues, they still “rank, at least for now, in overall spending in the pantheon of media industries fighting for dollars from consumers and advertisers,” writes Siklos. One in four ad dollars in the US is still spent on newspapers.
So newspapers have time ahead of them, although nobody questions the fact that they are in serious need of reinvention, a process most have embraced of late.
“Call me ink-stained and old-fashioned, it seems a bit premature to put a $60-billion industry on the endangered species list,” concludes Siklos.
Source: Fortune
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There's gotta be an idea there somewhere. A news product that combines the broad and deep expertise that is drawn by Wikipedia with the management and editing of a journalist seems like a real solution. The evolution of revenue models in this area will also be interesting to watch. Maybe paid "pro's" vs. unpaid "am's" is a bit too black and white. It is remarkable how much news the public is willing to provide for free. But maybe some of the better am's will need to be paid something, making them a new type of freelancer. (Steve Boriss, TheFutureofNews.com)