2005: Newspapers worst year

Posted on November 2, 2005 
Filed Under Uncategorized

A Goldman Sachs report says this year has been the worst year in newspapers’ revenues since 2000-2001, and meaningful growth in 2006 is “very unlikely.”

National advertising was almost flat at 1.0 percent while the only bright spots are classifieds, both print and online, which was up 4-5 percent, and online newspaper revenues, which are projected to grow an impressive 25 percent in 2006.

Despite this, online still represents only 5.0 percent of total newspaper revenues.

The good news is newsprint prices are likely to fall slightly in 2006, as demand falls more quickly than production capacity. Even so, this good news is scant relief for an industry besieged by “flat ad revenues, falling stocks, and fleeing subscribers.”

Last week, Rishad Tobaccowala, chief innovation officer for Publicis Groupe, told a newspaper–the Chicago Tribune–“newspapers are at a tipping point,” in which online media will start to take more readership and more ad dollars.

He added that newspapers are in the worst situation of all news media for growth as “the least visually engaging and least youth oriented” medium.



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