Hard Times in the Newspaper Business

[marmar]

from Editor & Publisher:



Sun-Times Media Group Sucker-Punched in Q1

By E&P Staff

Published: May 08, 2008 4:32 PM ET

NEW YORK The Sun-Times Media Group (STMG) reported this afternoon a net loss of $35.8 million or 44 cents per share for Q1 compared with a loss of $4.8 million or 6 cents per share in Q1 2007.

Advertising revenue fell 12.6% to $61.1 million. The classified ad revenue category lost $3.5 million during Q1, while retail lost $4.1 million and national lost $1.3 million. Circulation revenue dropped 8.4% to $18.3 million. The overall loss also includes $5.5 million of indemnification, investigation, and litigation costs.

However, the publisher of the Chicago Sun-Times said his paper is on track to meet its cost reduction goal of $50 million this year.

Cyrus F. Freidheim Jr., CEO of STMG, said in a statement, "Secular changes combined with a broad-based economic downturn made for a powerful one-two punch against nearly every newspaper company during the quarter."

Total operating revenue in Q1 was $81 million compared to $91.7 million for the same period a year ago. ......(more)

The complete piece is at: http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1003801117

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'NYT' Editor: Newsroom Staff Cuts on the Way

By E&P Staff

Published: May 07, 2008 12:38 PM ET

NEW YORK New York Times Executive Editor Bill Keller told his staff today to expect a "small number of layoffs." Keller would not disclose the number or the people who are on the list.

Two months ago, the Times said it needed to reduce its newsroom staff by 100 positions and offered voluntary buyouts. Not enough employees took the buyout so the paper will have to resort to layoffs.

In a memo to staffers, Keller wrote that he did not foresee future cuts down the road: "There are, of course, no guarantees, but so far nothing in the company's performance or in the forecasts for the economy at large suggests we will be going through this again anytime soon." ......(more)

The complete piece is at: http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1003799970

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Layoffs and Buyouts Announced at Three More Dailies

By Joe Strupp

Published: May 07, 2008 10:36 AM ET

NEW YORK Layoffs and buyouts have hit three more daily papers, with announcements of cutbacks in Colorado, Kentucky, and South Carolina.

Word that staff reductions will hit the Lexington (Ky.) Herald-Leader; The Daily Camera in Boulder, Colo.; and The Sun News in Myrtle Beach, S.C., added to the already growing list of dailies facing the prospect of fewer people.

The Daily Camera announced Tuesday that nine of its 155 staffers were to be laid off, the paper reported, citing an industry that company officials say is "rapidly changing."

The cuts were made across various departments and included one newsroom employee, Al Manzi, president of Prairie Mountain Publishing, publisher of the Daily Camera, told the paper.

Severance packages were offered to all nine employees, he said, adding, "It was an incredibly difficult decision to separate from nine terrific, hardworking, and caring employees." .....(more)

The complete piece is at: http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1003799839

[bookman]

1. Reading

No informed citizen left behind.

[Android3.14]

2. It's not a plot; it's blogs like this one

Why pay for something you can get for free?

The number of people who read a newspaper has diminished steadily. Does this mean they are not reading the news? Nope. They just get it online.

The problem has many facets, but the primary one is that people are creating news stories for free, newspapers are centered around a resource-eating device known as a printing press, and there is not enough of a market online to support a qualified staff of professional writers.

I suspect local news will be the last bastion of traditional paper printed news, but then stories will come from networked independent journalists in the form of a blog or news aggregation. I so badly want to leave my current position and pursue an independent blog for local news. But I am afraid I won't make enough money to keep a roof over our heads.

- Managing editor of a small weekly.