The Popping of the Newspaper Bubble
We interrupt this European crisis to bring you a mess of a different kind.
I really enjoy a chart that tells an important story. And although I'm sure we'll all agree that the print newspaper business is dying, I think it's interesting to get a visual on the deterioration. Today's chart shows the total newspaper advertising revenues since 1971 and it's falling fast. From the inflation-adjusted peak of $18.26 billion in 2000, advertising revenues have fallen by more than 75%. And the bottom isn't in:
Jack Shafer at Reuters:
"Unlike the tech bubble, the newspaper bubble won’t come back because it can’t. Many of the businesses that once supported newspapers with ads don’t exist on the same level anymore (such as competing department stores and grocery stores) or have found better places to put their ad dollars (the Web, television and Craigslist) or have discovered that they don’t need to spend ad dollars anymore to sell their goods and services (Craigslist again)."
There is something to be said about opening up a crisp newspaper first thing in the morning while drinking your coffee. I've watched older family members do it my entire life. But unfortunately for the newspaper industry, no one in my generation cares about that stuff. If there's no risk of what we're reading running out of batteries, it's no fun for us.
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