For those interested in strategy, adapting to a changing environment, consumer behavioral trends, and, well, outright mismanagement, then analyzing the newspaper and print media industry provides a real-world, in-progress case study.
Although headlines of the death of the newspaper might be an exaggeration at the moment, there is a clear and present danger. The business model of newspapers depends on advertising revenue, which comprises about 80% of its total revenue. In 2008, advertising revenue dropped 16.5%, according to the Newspaper Association of America. Barclays Capital projects a 22.0% decline in advertising revenue in 2009 (see Mint.com below). Startling, but also mirroring the economic recession.
Nonetheless, organizations that will most likely survive the economic challenges and thrive will create a new business model, with digital media being more prominent. The extinction of the traditional daily is not likely in the near term, although it will probably play a more niche role. Similar dynamics are occurring with telephones, internet connections, software, music, and movies, to name a few.
Mint.com presents a concise one-page visual of key metrics of the top 25 U.S. newspapers (see image below) in an infographic titled “Stop the Presses: The Death of the Newspaper Industry.”
Well, that’s all for now, as I need to check my favorite news and entertainment blogs.