Wednesday, December 31, 2008

The Great Shrinking Papers (Cont.)

Declining ad revenue, in the face of a recession, has forced a number of papers to take dramatic measures to cut cost. In the newspaper business, the top two expense items are payroll (and a good chunk of which goes to non-newsroom employees) and newsprint. So far, most papers have sought to reduce cost by slashing staff and reducing the size of the paper in order to cut cost.

But how long can newspapers continue to shrink its product without massive loss of their customers? The year 2009 is shaping up to be a watershed moment for the industry. Without a sudden improvement in the economy, it's but a certainty that a significant number of papers will be printing their final editions next year.


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