Print declining, online video soaring
Read this story from Editors weblog. It quotes Laurent Rich Fine, respected newspaper analyst at Merrill Lynch & Co. This story supports why I see newsagent revenue per home delivered product falling, why publishers want their products in as many retail outlets as possible and, why retail newsagents need to revisit capital investment in print media product. Here’s a taste of the article:
“Interest in news is greater today than it’s ever been,” said Fine. Yet newspaper companies shouldn’t cling to profit margins and models that don’t work anymore. “There’s no way to go back to where the industry has come from,” she added.
So don’t waste time in nostalgic reminiscence, especially as newspapers are experimenting with online features that are proving to draw readers and money.
Fine does believe that large newspapers will continue to strive, as well as local ones. “I think there’s an enormous, unsated appetite for really local news,” she said. Thus the overlying uncertainty concerns midsize metropolitan dailies.
According to her, newspapers can’t operate on the same business model, can’t expect similar profit margins, and should expect their print products to lose in importance.
Newsagents can’t operate on the same business model, can’t expect similar profit margins, and should expect print products to lose in importance.