Open Enrollment | Subscribe to Publishing Executive HERE
Connect
Follow us on
Advertisement
 
Senior Editor

Pub Talk

By James Sturdivant

About James

 

Media Vent

Bob Sacks
The Answer to Publishing's Enigma of Survival
Jan 27, 2015

Many of the people who read this blog are in one way or another devoted to the process of print....



B2B Beat

Andy Kowl
Private Equity Firms Taking Over B2B Media
Jan 13, 2015

Private Equity firms are now the dominant players in B2B publishing. They probably own less than half of all B2B...



Publishers' Dojo

Linda Ruth
Nook’s VP of Marketing on “Delivering An Experience” on Ereaders
Dec 19, 2014

I spoke with Jeanniey Mullen, VP of Marketing for Nook. Jeanniey spent five years developing and marketing Zinio's award-winning digital...



Industry Insiders

The Insiders
The Real Cost of Content Marketing
Dec 10, 2014

How do you respond to advertisers who want to blog more and advertise less? Do you discuss with them the...



The Digital Market

Thea Selby
Top 5 Mobile Trends for Publishers—It’s Good News, Folks
Jul 7, 2014

Mary Meeker of Kleiner Perkins Caufield & Byers is one of my s/heroes. In this day and age of branded...



Publisher's Paradox

Andrew Davis
Publisher’s Paradox: Your Newsletter Subscribers Are Being Overfed
Apr 28, 2014

Charlie Magazine, based in Charleston, South Carolina, isn't asking its readers to subscribe to everything. Instead, Charlie is inviting readers...



Newspapers Confront Competing Realities

 
Mike Bloomberg and Rupert Murdoch both love newspapers. Murdoch loves the Wall Street Journal so much he bought it (even though he thought the articles were a bit long), made it lose weight, trussed it up a bit with color and reshaped it into a general interest newspaper.

Bloomberg speaks lovingly of the Financial Times. When asked recently if he might buy the paper, he responded "I buy it every day!" (Talk about a hedge.) His staff loves it too, believing it would be a game-changing platform for Bloomberg's high-quality content, creating a new global forum for deep dives into business and finance that could, the thinking goes, fill a niche left underserved by Murdoch's changes to the WSJ.

It all makes so much sense—except financially. And here's the rub for the media business. A company produces an excellent product, which people love. There's synergy (to use a cursed term) with the business operations of a potential deep-pocketed buyer. Yet, it's still a tough sell, because it doesn't make a lot of money. When quality and passion—even profits (but not much growth)—can't get people to open their checkbook, what can?

Newspapers, whatever they try to tell you, are far from out of the woods, because it is still the case that digital advertising revenue cannot approach what can be earned from print. It's not even close. It may be an old story at this point, but it's no less critical an issue than it was a couple of years ago. Markets pay attention to trends, and even a paper with 600,000 subscribers and a robust paywall is a tough sell, because as subscribers move from print to digital, the ad revenue does not keep up. Without huge spikes in either subscribers or ad rates, the line will continue to point in the wrong direction.

Maybe Bloomberg could bring those new subscribers. Maybe ancillary products, licensing, services and events could fill the gap. Maybe—but it's a risk. Maybe Mayor Mike should get Warren Buffett on the horn.

Companies Mentioned:

COMMENTS

Click here to leave a comment...
Comment *
Most Recent Comments: