Newspaper Industry
Red Ink Newspaper Revs Tumble
Saturday, 17, April,2010
Three different forecasts all have the newspaper industry experiencing yet another year of advertising revenue losses in 2010 -- while noting that compared to the last couple of years, it's not that bad.The first forecast comes from J.P. Morgan, where analysts are predicting declines of 5.5% and above for some of the nation's newspaper publishers in 2010. Specifically, J.P. Morgan has advertising revenues falling 5.5% at the New York Times Co. and 5.6% at Gannett; these companies (especially Gannett) are often viewed as bellwethers for the rest of the newspaper business.
Meanwhile, Magna's latest ad-spending forecast for the U.S. predicts that print newspapers will see total advertising revenues fall another 11%, with local newspapers experiencing a slightly smaller 10% drop. Consumer magazines will fare only slightly better, with a predicted 6.9% drop. This negative outlook for print media stands in stark contrast to broadcast -- where Magna sees a rebound for TV with 10.2% growth, including a 16.2% jump for local TV.