The newspaper industry is shrinking for several reasons. First, there is a shift to the internet:
- Internet usage and broadband explode.
- The rise of Google, Yahoo! and blogs for news.
- The rise of eBay, Craigslist, etc. in the classifieds market.
- Revenue from online ads is simply lower than for print ads.
Second, several other sections of the advertising market show rapid growth.
Third, advertisers are consolidating (Federated/May) and several industries face difficult times (automotive, film).
Interestingly, the New York Times is launching OnMovies in December, an in-cinema magazine free to ticket buyers. It is to be fully advertising funded.
- Newspapers are moving online and should embrace blogs, podcasts, etc.
- Free sheets and magazines can capture a so far untapped slice of the ads market.
- Newspapers, like telco incumbents, must shrink their way to excellence.