Daily News & the Decline of Print Media

Anyone employed by a newspaper, magazine or other print media these days is looking over their shoulder. They know that that their boss is heading their way, bringing with them what they would hope would be a plum assignment, but in reality will almost certainly be a pink termination slip.

According to The Wall Street Journal (Newsstand Sales of Magazines Shrink 11%; February 10, 2009; page B9) newsstand sales of magazines plunged in the second half of 2008, the worst drop in decades. Adding fuel to the news that print media is in trouble are the fortunes of America’s newspapers.

Years ago publishers could lay blame on suppliers in Quebec for the high cost of newsprint, but that problem seems minor in comparison to the loss of advertising, particularly help wanted ads, thanks to inroads made online. Monster.com, CareerBuilder.com and other large job sites post that information for a low cost for employers while giving free access to job seekers. Who needs to get their hands blackened by newsprint these days? A bleary eyed scan of the computer screen reveals much.

Google ads have made it easier to line up customers with relevant products as each ad served is almost always a dead ringer for the topic being discussed (or read). MSN and Yahoo are still trying to figure out how to get that right, but Google is a one company killing machine when it comes to making money with ads.

Now back to the WSJ article: ad pages in consumer magazines plunged by 12% in 2008 and are expected to remain down throughout 2009. Discount subscriptions allow publishers to claim larger rate bases, but advertisers aren’t “buying” inflated circulation numbers, forcing many publishers to reduce their the number of copies they guarantee advertisers will be delivered to readers.

The shrinking pool of advertisers is making it all the more difficult for publishers to justify cranking out extra copies and leaving those at hair saloons, physician’s offices and other public places. In good times that cost could be absorbed but those heady times, which now seem like a distant memory, are now gone.

Most certainly inflated circulation figures will be pushed down, with rate base guarantees reduced sharply. At least the shrinking pool of advertisers will get a better ‘read’ on who actually picks up a publication and pay accordingly when they do advertise. Of course, that amount will be less than what they’ve paid in the past, meaning magazine staffs will be cut as well.

Newspapers are also feeling the heat as Macy’s and other big department stores no longer buy page after page to market merchandise customers aren’t buying in newspapers no longer being read. When the two Detroit newspapers announced recently that home delivery would be reduced to three days a week while newsstand copies would still appear all seven days, you knew that a sea change was already taking place.

If they can find a way to not print on Mondays and other slow days, expect that hard copies will be reduced to Sundays and perhaps mid-week. Eventually, will we even see print copies of our favorite publications anymore?

I’m not sure if I like the fast move away from print media nor am I gleeful over the plight of those journalists who quite suddenly have had the carpet pulled out from underneath them and are forced to explore the brave new world of online publishing.

Then again, a world of opportunities awaits those who venture into previously unchartered waters. Wade right in…the water is quite bearable.