Not Good News for the New York Times

Part of the struggles of the New York Times may be related to the economy. However, the present reports of revenue difficulties continues an unsettling trend that most newspaper publications are experiencing:

“…The company, which reported a 16 percent drop in advertising revenue at its news media group, also said it might write down as much as $150 million at its New England operations, underscoring the dismal state of newspaper advertising.”

link: New York Times posts loss, eyes debt reduction

Advertising dollars are going to the internet. As fewer people rely on the newspaper for the daily news, the challenge for newspapers is to provide its buyers with added value. The short term bad news is a drop in revenue. The long term bad news is that surviving and being profitable may be impossible with the present business model.

Catherine Forsythe