Bad to worse for newspapers
Posted on March 31, 2008 by Melissa Worden
"Ken Doctor, a newspaper analyst with Outsell, Inc., summarized the situation. “Given the high rates they charged in print, and that over 90% of their revenue is still in print, even if they could get the growth rate back up to 25% or 30%, they still won’t be able to make up for these losses,” he said–thus, the outlook is grim. “These companies are going to get much smaller, with fewer employees, producing less content, both online and in print. The real question is: can they even stabilize at any point in the near future?”
To stem the tide of losses, Doctor said newspapers need to invest heavily in boosting the kinds of news content that are proving most popular on the Web, including business, health, and travel–especially with online video if possible. “That’s where you’ll get the most bang for your buck,” according to Doctor, who said CPMs for online video business news are now around $50 dollars.”
Tags: newspapers, industry news, future, good reads
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