Skip to main content

Decline at Newspaper Chains is Systemic

NY Times reports that the newspaper industry continues to flag financially, with three companies � The New York Times, Tribune and McClatchy � reporting sharply lower first-quarter earnings.

Executives of all of the newspaper companies said they were hurt by stagnant advertising, particularly in the automotive and entertainment categories, and a continuing rise in the cost of newsprint. The Times Company and Tribune also cited the cost of severance packages after cutting hundreds of jobs.

At the same time, the companies said that their Internet activities were thriving. Those activities still account for only a small share of total revenue and are not big enough to offset the losses from traditional advertisers. But revenue from the Internet is clearly a growth area where the newspapers are shifting their focus. So far this year, shares in the newspaper industry over all are down about 6 percent.

Popular posts from this blog

The Rise of Open Hybrid GenAI Platforms

Artificial intelligence (AI) has been steadily transforming business, now a new wave is poised to make a seismic impact: Generative AI (GenAI) tool adoption. In fact, we may have already reached the inflection point. Unlike traditional AI that analyzes data, GenAI goes a step further. It applies analysis to create entirely new content, be it realistic images, marketing copy, or innovative product designs. A recent Gartner study revealed that GenAI is the most frequently deployed AI solution in organizations. This is marking the dawn of a new global era in human-machine collaboration. "GenAI is acting as a catalyst for the expansion of AI in the enterprise," said Leinar Ramos, senior director analyst at Gartner . "This creates a window of opportunity for AI leaders, but also a test on whether they will be able to capitalize on this moment and deliver value at scale." Global Generative AI Market Development Gartner's survey found that, on average, only 48 percent