Newspapers have got it real bad these days, as evidenced by a New York Times article this morning, and well, all the other crappy things we’ve heard about the print media for the past few years: sinking ad revenue, shrinking markets, and shattering layoffs. But this year, things have gone from worse to worst as the souring economy has hurt ad sales; ad revenue is a staggering 12 percent below where it was at this time last year.
Many privately held companies, including MediaNews Group, which owns the Denver Post, are in a particularly precarious position. Analysts warn that they won’t be able to meet their debt obligations, though the companies have insisted otherwise, says the article.
"It’s going a lot worse than anybody predicted, and if we have double-digit ad declines for two years, some newspapers will be in real financial jeopardy," Edward Atorino, an analyst at the Benchmark Company told the New York Times. "You’re going to see structural changes: papers could drop a day or two per week, they could outsource printing."