Posts Tagged ‘The Biz Blog’

Edmonds: Newspapers aren’t rebounding

Monday, November 15th, 2010

Rick Edmonds, who tracks and analyzes the latest media business developments for Poynter online at The Biz Blog, explains the last year, if not few years, in newspapers in a post titled Seven Reasons Newspapers Are Not Rebounding Financially.”

“The good news first,” Edmonds writes. “Newspapers are solvent and profitable, often quite profitable on an operating basis. Only a handful went out of business during the great recession. Newspaper companies¬†now are generating enough cash to pay down debt and finance robust exploration of potential new digital revenue streams.

“But I see at least seven signs of continuing trouble in the near term and a bumpy path to the mythical ‘new business model.'”

Edmonds’ seven signs (which he discusses):

1. Advertising revenues are still falling.
2. Online and other digital growth doesn’t take up the slack.
3. Newsprint prices are rising again.
4. Other cost reductions are cycling through.
5. Circulation revenues have gone flat.
6. The “death spiral” cycle¬†continues.
7. Debt continues to be problematic.