Although headlines of the death of the newspaper might be an exaggeration at the moment, there is clear and present danger. The business model of newspapers depends on advertising revenue, which comprises about 80% of its total revenue. In 2008, advertising revenue dropped 16.5%, according to the Newspaper Association of America. Barclays Capital projects a 22.0% decline in advertising revenue in 2009 (see Mint.com below). Startling, but also mirroring the economic recession.
Nonetheless, organizations that will most likely survive the economic challenges and thrive will create a new business model, with digital media being more prominent. The extinction of the traditional daily is not likely in the near term, although it will probably play a more niche role. Similar dynamics are occurring with telephones, internet connections, software, music and movies, to name a few.
Mint.com presents a concise one-page visual of key metrics of the top 25 U.S. newspapers. Many others have written about the struggles of print media; Slate.com highlights the strategic and mismanagement aspects of this topic.
Well, that’s all for now, as I need to check my favorite news and entertainment blogs.