GM GA! Options run out for print media
Posted Jan 23rd 2009 3:57AM by Douglas McIntyre
Filed under: Industry, New York Times'A' (NYT)
Through the third week in January, advertising pages at BusinessWeek are down 31%. At Entertainment Weekly, they are off 36%. Through their February issues, GQ and Gourmet's ad pages are off over 30%.
Today, the news came out that The New York Times Company (NYSE:NYT) is close to selling part of its building. It has already taken money from Carlos Slim, some of which comes with a 14% interest rate. The Times is now nearly out of options. It won't sell The Boston Globe which some experts believe is losing $1 million a week. That leave the option of raising money by dumping assets out of the question.
The third largest newspaper chain in the US, McClatchy (NYSE:MNI) which has insisted it would be OK, now trades below $1.
Most of this has been written about before, but the numbers from print media which have come in during the last three days show that an industry which was in decline is in such a rapid decline that scores of newspapers and magazines will close over the next two or three months. Even a year ago, this was unimaginable.
The print media is something which most business people cannot imagine. It is an industry in trouble which cannot be fixed. Intelligence and hard work has no effect. The end of many of the world's greatest print brands are is in sight.
The bleeding was supposed to be slow enough so that there were be time to work on solutions.That opportunity is now well in the past.
Bow no head, Bend no knee. Better to rule than serve!
AI
