MediaFile

Another gloomy week for publishing

November 21, 2008

Another dark week for the publishing business, capped by a double-barrel blow yesterday when news emerged that the New York Times was slashing its dividend and the Associated Press was slashing its workforce.

New York Times’ decision to cut its dividend is particularly noteworthy, since it could up the pressure on the Ochs-Sulzberger family to make even more dramatic moves down the road — like maybe selling parts or all of the media company.

The family has resisted any calls to sell the famous publishing company, but cutting the dividend makes it tougher for some of the younger family members who rely on that income. Check out the recent profile of family member Dave Golden in New York magazine.

Meanwhile, the New York Times said it would curtail capital spending and lower its operating costs. It did not say whether it would cut more jobs… although the Associated Press pretty much the stole the show on job cuts, anyway, with its announcement that 10 percent of its workforce would be eliminated.

Good times.

Keep an eye on:

  • Concerns are growing in Hollywood that buyer interest in DVDs is plummeting as the global economic crisis worsens (NY Times)
  • After weeks of shuttle diplomacy, a U.S. federal mediator brought labor negotiators for major Hollywood studios and the Screen Actors Guild back together for their first meeting in four months (Reuters)
  • High definition Blu-ray disc players may be one of the holiday season’s best sellers, but they will still fall short of expectations, due to the tough economy, the head of Sony’s U.S. electronics unit said (Reuters)

(Photo: Reuters)

Comments
3 comments so far | RSS Comments RSS

An imagination has been demised.Innovation is facing insurmountable barrier.The act of journalism, is being intercepted.The life of the journalists are at stake severely.The financial slowdown is digesting all, one after one on the way of its grimous affect.

A big and sound media concern like \’AP\’ and \’The Newyork Times\’,are thinking of slashing down their working forces and dividends (Through revaluation of their assets).The financial crisis has come to every media concern,in the form of insufficient advertisement availablity. Advertisement is blood like to any media concern for its smooth life running.The existing management should be more awareof it, as to combat with such further devastation that may come in future.Otherwise,the death of an educative society, could not be avoided.

 

I would have thought there is lots of real news to report nowadays. Why would AP cut their staff? Is it really all down to advertising? Wow.

Posted by KT | Report as abusive
 

I know things are difficult in newspaper publishing, but dumbing down journalism in what was once a respected paper, was no way to keep old readers, nor obtain new ones.

Posted by LW | Report as abusive
 

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