Newspapers Face Revenue Shortfall

The newspaper industry faces a $20 billion revenue shortfall over the next five years if advertising and circulation continue downward spirals, reports Editor & Publisher, citing a study from research firm Outsell. The firm based the projection on the industry’s reliance on paid circulation, which has been slipping fast over the past several years. “The entrenched habits of using the Web will only deepen the circulation decline,” writes Ken Doctor in the report. “Couple that change with less-meaty print products, more free daily and weekly competition, and newsprint pricing increasing in the 5% to 8% range, and the problems multiply.” On the ad front, the report says only classifieds have shown promise, as newspapers are feeling the consolidation of retail stores and national advertising is unlikely to spring back unless publishers can track results. – Read the whole story…

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