Friday, December 5, 2008

CITIES MAY LOSE THEIR DAILY PAPERS

Editor & Publisher - Newspaper and newspaper groups are likely to default on their debt and go out of business next year -- leaving "several cities" with no daily newspaper at all, Fitch Ratings says in a report on media. . .

"Much of the business risk for the media sector is likely to continue to be concentrated within the newspaper sub-sector," the report says. "Fitch expects newspaper industry revenue growth will be negative for the foreseeable future as both ad pricing and linage will be under pressure within each of the four main components of newspaper companies' revenue streams: circulation and local, classified and national advertising. Newsprint costs could rise, and it could be difficult to offset revenue declines with cost cuts."

Fitch rates the debt of two newspaper companies, The McClatchy Co. and Tribune Co. as junk, with serious possibilities of default.

4 Comments:

At December 5, 2008 5:23 PM, Anonymous Anonymous said...

I might consider this more of a loss, were it not for the fact that the average daily newspaper has long since become little more than a mouthpaiece for corporate America and a vehicle for advertising revenues.

 
At December 5, 2008 10:15 PM, Anonymous Anonymous said...

If you think the stock is junk . . . have you looked at the contents of local papers lately? They are going out of business because they are not worth reading. Network TV is not far behind.

 
At December 5, 2008 10:15 PM, Anonymous Anonymous said...

If you think the stock is junk . . . have you looked at the contents of local papers lately? They are going out of business because they are not worth reading. Network TV is not far behind.

 
At December 6, 2008 10:58 AM, Blogger Wes said...

If you think that local newspapers are junk, or that Network TV is closely related, I guess you have not watched the gotcha venues of cable / satellite TV. There is little there except cheer leading for the right or the left.

And, the internet makes you take on all of the responsibility of fact checking every story yourself... and most do not validate.

There are still a few family run local papers that are doing their best to survive, mostly because the owners happen to love the community that they are in. One example is the Tracy (CA) Press. I hope that the citizens of these communities realize what jewels they possess.

 

Post a Comment

<< Home