Comments on: When will the Boston Globe close? http://blogs.reuters.com/felix-salmon/2009/05/08/when-will-the-boston-globe-close/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: John M. http://blogs.reuters.com/felix-salmon/2009/05/08/when-will-the-boston-globe-close/comment-page-1/#comment-1605 Wed, 13 May 2009 23:47:15 +0000 http://blogs.reuters.com/felix-salmon/2009/05/08/when-will-the-boston-globe-close/#comment-1605 Advertising revenue has declined because readership has declined and it is simply more effective to advertise where the readers are.

Readership has declined because people do not trust what the papers are printing.

Until the papers rediscover journalism, opposed to activism, readers and revenues will not return.

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By: Curmudgeon http://blogs.reuters.com/felix-salmon/2009/05/08/when-will-the-boston-globe-close/comment-page-1/#comment-1505 Sat, 09 May 2009 19:08:03 +0000 http://blogs.reuters.com/felix-salmon/2009/05/08/when-will-the-boston-globe-close/#comment-1505 @quantacide: For paid print publications, the subscription/newsstand price typically brings in about 20-25% of revenue. The rest is advertising. Advertising has been in decline for perhaps a decade, in large part because it is expensive and untargeted. It’s less expensive on the Web, and can be highly targeted.

In particular, newspapers have been highly dependent upon auto and home goods advertising, and because purchasing of these discretionary items has declined significantly, so has their advertising.

Few if any have been able to make a paid subscription model work on the Web. And advertising revenues for the Web are a fraction of those for print, even with its more targeted reach.

Anyone could have seen this day coming, but rather than experimenting with new business models, print publishers chose to milk their cash flow.

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By: quantacide http://blogs.reuters.com/felix-salmon/2009/05/08/when-will-the-boston-globe-close/comment-page-1/#comment-1468 Fri, 08 May 2009 17:54:27 +0000 http://blogs.reuters.com/felix-salmon/2009/05/08/when-will-the-boston-globe-close/#comment-1468 I’ve been paying close attention to this, b/c I still pickup a copy of the WSJ on my doorstep, and the NYT at lunch.

But what are the actual costs of physically printing the paper? If you take the numbers for the NYT — just the “raw cost” — from TBI (http://www.businessinsider.com/2009/1/p rinting-the-nyt-costs-twice-as-much-as-s ending-every-subscriber-a-free-kindle) you get: 63MM*4=252MM/830,000=303.61 or given 365 issues, .83 an issue. Current home delivery of the paper 7 days a week amounts to .76/issue (http://homedelivery.nytimes.com/, 10003 zip). So, ignoring revenue streams from advertising/newsstand purchasers, along w/ the costs of maintaining reporters/staff, you’re already at a lost, for one of the top 5 newspapers in the world.

(With all caveats that this is overly simplistic analysis.)

Any good paper’s core competency is its staff. Kill the paper making. Keep the Globe.

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