The advertising outlook for newspapers is going from awful to horrendous. The New York Times announced first quarter earnings today, revealing that total advertising revenues for its news media group (which includes the New York Times, the Boston Globe, and other regional newspapers) declined 28.4 percent, versus an 18.4 percent declinelast quarter. So the rate of decline for is intensifying
Internet advertising revenues declined 6.1 percent to $67.6 million, compared to a 3.5 percent decline last quarter. The advertising situation at About.com is more “anemic” than at NYTimes.com, although cost-per-click rates at About.com seem to be holding up. Total advertising revenues were $335 million in the quarter and all revenues, including circulation, were $609 million. The company as a whole posted a net loss of $74.2 million. In other words, the New York Times lost more money across the board than it made from Internet advertising.
Does anyone seriously think the dying msm newspapers will not sooner or later come under the purview of the increasing sectors of our economy "too big to fail"?
I'll be the first to predict that the MSM newspapers are going to be bailed out by the Obama Adminstration. No one wants to buy the NYT anymore, so John Kerry and Chuck Schumer will use our tax dollars to subsidize the Times.
Sound crazy? I don't think so...
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