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More sobering news. I need a beer . . .

Discussion in 'Journalism topics only' started by thereligiouswrong, Feb 8, 2008.

  1. http://www.iht.com/articles/2008/02/07/business/paper.php
  2. Tom Petty

    Tom Petty Guest

    this profession will not end well.
  3. We are a Ford in a Toyota world. :'(
  4. Rumpleforeskin

    Rumpleforeskin Active Member

    Check please...
  5. DanOregon

    DanOregon Well-Known Member

    It kind of makes me wonder how a journalism school would appropriately prepare a student for the Brave New World of newspapers. I imagine some of the most ambitious work a journalism student will ever do in his or her career will come before they get their degree. After that, its all summaries of senior club activities, Little League write-ups and a color piece on the benefit walk of the week.
  6. BYH

    BYH Active Member

    Newspapers aren't going to close. They're just going to diversify, with reporters doubling as ad salesmen but collecting none of the cash.
  7. IGotQuestions

    IGotQuestions Member

    From that same article! And companies would KILL for 17 percent operating profit margins

    "Newspaper profits remain healthy, but they are dropping fast. For example, the newspapers of Media General, a large Southern U.S. chain, had a 17 percent operating profit margin last year, but the dollar amount fell 23 percent from the year before. Gannett's newspaper division, the largest U.S. chain, had a 21 percent margin, but a 10 percent decline."
  8. Pete Incaviglia

    Pete Incaviglia Active Member

    I once heard that 12 per cent profit in any business is about the standard. And considered good.
  9. BertoltBrecht

    BertoltBrecht Member

    "You'd think that you fuck. But I got to make more money so I can afford you."

  10. BTExpress

    BTExpress Well-Known Member

    Operating profit margin is misleading, because it does not take into account taxes and interest.

    Tribune, for example, was saddled with a huge tax burden for most of the time since the merger with Times-Mirror. And now they have billions in debt to pay off. So interest payments will be enormous.

    Operating profit margin is like the gross pay you get . . . much higher than the real take-home pay.
  11. Italian_Stallion

    Italian_Stallion Active Member

    Yes, I noticed too that they were talking about papers that still had relatively strong earnings. That's still a healthy profit.

    Still, it's undeniable that there's a problem.

    I read last night that ad revenue per user is so low for online ads that a paper needs to attract lots of online readers for every print reader.

    In an article from last July, Publishing 2.0 gives an explanation of how things work for the Times. The paper charged about $150,000 for four quarter-page print ads in the jobs section. With about 1.2 million readers, you're talking about 1.2 million people who might see the ad, which will run for four days.

    On the Web site, where there are 13 million readers, that ad would be $7,500. It would get lots more views, but at a lower cost per view. That's a rough estimation. Here's the link: http://tinyurl.com/28tw3c
  12. Italian_Stallion

    Italian_Stallion Active Member

    To add to what I posted above, I just found what I was reading last night. It's from 2006, so it might be a little dated. What it says is that a Web site needs to attract 20 to 100 readers for every print reader to make the same amount of money from an ad. So, if your 100,000 print-circulation paper shut down its presses and went online, its Web site would have to generate between 2 million and 10 million daily unique visitors to make the same amount of cash. Of course, cost might be slightly lower. So that could factor in.
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