Friday, November 21, 2008

Finally, Good News for Newspapers

In a rare reprieve for the print media, several paper manufacturers are indicating that they will end the price hike that has been crimping newspaper budgets for the past year.

The cost of newsprint on the East Coast has risen by 37 percent since last October, to a 12-year high, contributing to wave of downsizing in the beleaguered newspaper industry. But several major paper producers are now signaling that the increase has reached its peak, according to senior executives from two newspaper companies who have held discussions with them.

"In the last couple of weeks, very quietly, the newsprint companies are making clear that they are not going to raise rates next year," one of the newspaper executives said. "It's going to save millions upon millions of dollars for the newspaper companies."

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