It is no secret that the mainstream media, as a business, is on the verge of bankruptcy and collapse, as virtually all sectors are hemorrhaging red ink -- with no end in sight.
The New York Times Company, often considered the bellwether of the national media, has reduced its labor force by 47% (6,600 jobs) since 2000. The average daily circulation for the Times has dropped by over 21% (234,000 readers) during the same period. The Company has been liquidating as many assets as possible in order to stay afloat -- it now has few viable assets left to sell, as the stock price has dropped from $41.00 in 2000 to $6.26 today (-85%).
The Washington Post, the other most influential metropolitan newspaper in the country, has seen its average daily circulation drop by 37% (294,000 readers) since 2000. More devastating has been the plummet in print advertising revenue, which has plunged by over 60% since 2000. The newspaper division had an operating loss of $23 million in the first quarter of 2012.
Among the largest chain of newspapers in the country, the McClatchy Company has experienced a similar downturn. Since acquiring the Knight-Ridder chain in 2006, the Company has seen its average daily circulation decline from 2.84 million readers to 2.0 million (a drop of 30% in only four years). Many of the individual papers within the group have resorted to massive layoffs and selling assets, as not only circulation, but ad revenue has dropped precipitously. McClatchy stock has fallen from $30.88 in 2000 to $2.40 (-93%) today.
Read more: americanthinker.com |
