Revenue for the newspaper industry is in a free fall. The reason is that fewer people are reading newspapers and are instead turning to the internet as their primary news source. Advertisers realize that the audience for newspapers is disintegrating and so are less inclined to spend their Benjamins on a sinking ship. Coupled with a crippling recession and the explosion of online social media (which retailers generally have little idea what to do with) and its plain to see why newspapers are in trouble.
Newspapers’ financial woes worsened in the second quarter as advertising sales shrank by 29 percent, leaving publishers with $2.8 billion less revenue than they had at the same time last year.
It’s the deepest downturn yet during a three-year free fall in advertising revenue — newspapers’ main source of income. The magnitude of the industry’s advertising losses have intensified in each of the last 12 quarters. The numbers released Thursday by the Newspaper Association of America weren’t a shock, given the dramatic erosion mirrored the advertising losses that the largest U.S. newspaper publishers already had reported for the April-June period.
Read the full article by Michael Liedke “Newspaper slump deepens as 2Q ad sales fall 29 pct” at Yahoo Finance (August 27, 2009).
See our earlier post…