The long-forecasted decline of the newspaper.

October 23, 2008

There are likely many people who can’t imagine the world without the New York Times.  Well, it seems that the current (rather massive) financial crisis is starting to hit people where they live (instead of just making banks and brokers suffer).  We all know (or should know) The newspapers make their money from advertising (chunks of pages and classifieds), not circulation, and that this revenue has been in decline for some time.  It seems that the crunch is hitting the crisis point.  The NY Times itself reports:

  • Revenue down 8%
  • Ad revenue down gut-wrenching 13%
  • Circulation revenue + 3% (price increase)
  • Classifieds down a horrifying 28%

And, as a result:

In this difficult environment, we are reviewing our uses of cash. We have reduced our estimate for capital expenditures in 2008. Next year we expect they will decline from their 2008 level and be approximately $80 million. In addition, our Board of Directors plans to review our dividend policy before the end of this year to determine what is most prudent in light of the overall market conditions.”

Really quite remarkable.  We hear many tales of doom and gloom from the financial sector, but this is news from a major pillar of the world of information.  I didn’t really care when GM suggested that they might go under, as there are many car makers.  While there are many newspaper publishers, there is only one New York Times.


One comment

  1. amen to that.

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