Shifting Away From Paper
July 17, 2008
Today the largest newspaper publisher, Gannett Company, reported a 36 percent drop in second quater earning. The company contributes the decrease in earning to lagging advertising sales. The publishing advertising revenue declined by fourteen percent with its main printed publication, USAToday, declining seventeen percent.
Although the U.S. economy is weaking, can’t help to wonder how much of decline can be contributed to the migration readers and advertisers to the internet. Yes, Gannett does have a large internet presences with over 100 online sites, and they have a USAToday online. But the internet is full of choices, unlike a news stand with only a handle full of any particular subject.
Even Washington is concerned about the US newspaper industry losing ground . Readers and and advertisers are increasingly turning to media, pressuring some of the industry most prominent players to follow. The shakeup is highlighted over the insecurity of industry leaders such as, the Tribune Co., who owns the Los Angeles Times and Chicago Tribune. Like the Tribune, many others are under pressure from shareholders. The company will possibly hang on exploring strategic options to boost their organizational value. News media claim that a small percentage of the shareholders have entertained the idea to sell all or part of their share to other media groups. So, what else is new with shareholders? As you mentioned, the internet is full of choices, so the shareholders will follow. the name of the game for anyone owning stock is to follow the earnings.