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The 10 Major Newspapers That Will Either Fold or Go Digital Next (including FWST)

Discussion in 'Political Zone' started by WoodysGirl, Mar 9, 2009.

  1. WoodysGirl

    WoodysGirl Do it for the Vine! Staff Member

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    By 24/7 WALL ST. 24/7 Wall St. – 46 mins ago

    Over the last few weeks, the newspaper industry has entered a new period of decline. The parent of the papers in Philadelphia declared bankruptcy as did the Journal Register chain. The Rocky Mountain News closed and the Seattle Post Intelligencer, owned by Hearst, will almost certainly close or only publish online. Hearst has said it will also close The San Francisco Chronicle if it cannot make massive cuts at the paper. The most recent rumor is that the company will fire half of the editorial staff. That action still may not be enough to make the property profitable.


    24/7 Wall St. has created its list of the ten major daily papers that are most likely to fold or shut their print operations and only publish online. The properties were chosen based on the financial strength of their parent companies, the amount of direct competition that they face in their markets, and industry information on how much money they are losing. Based on this analysis, it is possible that eight of the fifty largest daily newspapers in the United States could cease publication in the next eighteen months. (Read: "The Race for a Better Read")


    1. The Philadelphia Daily News. The smaller of the two papers owned by The Philadelphia Newspapers LLC, which recently filed for bankruptcy. The parent company says it will make money this year, but with newspaper advertising still falling sharply, the city cannot support two papers and the Daily News has a daily circulation of only about 100,000. The tabloid has a small staff, most of whom could probably stay on at Philly.com, the web operation for both of the city dailies.


    2. The Minneapolis Star Tribune has filed for Chapter 11. The paper may not make money this year even without the costs of debt coverage. The company said it made $26 million last year, about half of what it made in 2007. The odds are that the Star Tribune will lose money this year if its ad revenue drops another 20%. There is no point for creditors to keep the paper open if it cannot generate cash. It could become an all-digital property, but supporting a daily circulation of over 300,000 is too much of a burden. It could survive if its rival the St. Paul Pioneer Press folds. A grim race.


    3. The Miami Herald, which has a daily circulation of about 220,000. It is owned by McClatchy, a publicly traded company which could be the next chain to go into Chapter 11. The Herald has been on the market since December, and but no serious bidders have emerged. Newspaper advertising has been especially hard hit in Florida because of the tremendous loss in real estate advertising. The online version of the paper is already well-read in the Miami area and Latin America and the Caribbean. The Herald has strong competition north of it in Fort Lauderdale. There is a very small chance it could merge with the Sun-Sentinel, but it is more likely that the Herald will go online-only with two editions, one for English-speaking readers and one for Spanish.


    4. The Detroit News is one of two daily papers in the big American city badly hit by the economic downturn. It is unlikely that it can merge with the larger Detroit Free Press which is owned by Gannett. It is hard to see what would be in it for Gannett. With the fortunes of Detroit getting worse each day, cutting back the number of days that the paper is delivered will not save enough money to keep the paper open.


    5. The Boston Globe is, based on several accounts, losing $1 million a week. One investment bank recently said that the paper is only worth $20 million. The paper is the flagship of what the Globe's parent, The New York Times, calls the New England Media Group. NYT has substantial financial problems of its own. Last year, ad revenue for the New England properties was down 18%. That is likely to continue or get worse this year. Supporting larger losses at the Globe will become nearly impossible. Boston.com, the online site that includes the digital aspects of the Globe, will probably be all that will be left of the operation.


    6. The San Francisco Chronicle. Parent company Hearst has already set a deadline for shutting the paper if it cannot make tremendous cost cuts. The Chronicle lost as much as $70 million last year. Even if the company could lower its costs, the northern California economy is in bad shape. The online version of the paper could be the only version by the middle of the 2009.


    7. The Chicago Sun Times is the smaller of two newspapers in the city. Its parent company, Sun-Times Media Group trades for $.03 a share. Davidson Kempner, a large shareholder in the firm, has dumped the CEO and most of the board. The paper has no chance of competing with The Chicago Tribune.


    8. NY Daily News is one of several large papers fighting for circulation and advertising in the New York City area. Unlike The New York Times, New York Post, Newsday, and Newark Star Ledger, the Daily News is not owned by a larger organization. Real estate billionaire Mort Zuckerman owns the paper. Based on figures from other big dailies it could easily lose $60 million or $70 million and has no chance of recovering from that level


    9. The Fort Worth Star Telegram is another one of the big dailies that competes with a larger paper in a neighboring market - Dallas. The parent of The Dallas Morning News, Belo, is arguably a stronger company that the Star Telegram's parent, McClatchy. The Morning News has a circulation of about 350,000 and the Star Telegram has just over 200,000. The Star Telegram will have to shut down or become an edition of its rival. Putting them together would save tens of millions of dollars a year.


    10. The Cleveland Plain Dealer is in one of the economically weakest markets in the country. Its parent, Advance Publications, has already threatened to close its paper in Newark. Employees gave up enough in terms of concessions to keep the paper open. Advance, owned by the Newhouse family, is carrying the burden of its paper plus Conde Nast, its magazine group which is losing advertising revenue. The Plain Dealer will be shut or go digital by the end of next year.


    - Douglas A. McIntyre

    http://news.yahoo.com/s/time/20090309/us_time/08599188378500
  2. Angus

    Angus Active Member

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    Thanks for the post, WG.

    :)
  3. ninja

    ninja Numbnuts

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    I haven't bought a newspaper since 1997. Newspapers are nothing but a waste of paper these days. Mostly liberal, left-wing, nutjob propaganda. Good riddance.

    Another industry killed in large part by unions.

    Look at the fallout from no more newspapers: paper mills get hit, newspaper delivers get hit, newstand operators get hit, and those in the recycling business take a hit.

    But, on the bright side: less trees are cut, don't have to recycle what you don't buy, don't have to waste energy resources to print papers anymore, and maybe the public will be less brainwashed by the Liberal left-wing nutjobs in the newspaper business, and less lazy union workers.

    Seems like a net plus if you ask me.
  4. Kangaroo

    Kangaroo Active Member

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    This follows up the discussion we had about this a couple weeks ago and it seems every week a new Newspaper is struggling
  5. sbark

    sbark Well-Known Member Zone Supporter

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    New York Times raises another $225M in office sale

    New York Times raises another $225M by selling headquarters, giving publisher bigger cushion

    • Monday March 9, 2009
    NEW YORK (AP) -- The New York Times Co. has sold most of its home office for $225 million, padding the newspaper publisher's financial cushion amid a sharp drop in revenue that has forced management to scrounge for more money.

    The deal announced Monday covers 21 of the building's 52 floors. That space, about 750,000 square feet (69,676 sq. meters), became the Times' headquarters when the midtown Manhattan offices opened in 2007.

    To gain even more wiggle room, the Times company is still hoping to sell its 17.8 percent stake in a partnership that owns the Boston Red Sox. If that effort succeeds, the Times company could pocket another $150 million or so. But both Novosel and Simonton doubt a buyer will emerge soon because the recession is threatening to depress baseball's revenue, too.
    If it needs even more cash, the Times company also could try to sell some of its other newspapers, which include The Boston Globe and 16 other daily publications. But newspaper buyers are scarce now.
  6. TheCount

    TheCount Pixel Pusher

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    You think unions killed newspapers? Try the internet.
  7. Yeagermeister

    Yeagermeister Active Member

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    I can't remember the last time I bought a newspaper. Our local paper is a waste of trees.
  8. iceberg

    iceberg detoxed Zone Supporter

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    buy hell - i'm sick and tired of having to call newspaper places and tell them to quit throwing their free crap in my yard every week. i don't even value them enough to pick them up and throw 'em away.
  9. WoodysGirl

    WoodysGirl Do it for the Vine! Staff Member

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    Ok I thought I was the only one who did that. I don't feel so bad now. :p:
  10. ninja

    ninja Numbnuts

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    Don't pick them up and the police will ticket you for littering.:bang2:
  11. iceberg

    iceberg detoxed Zone Supporter

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    they can ticket whoever put it there. the guilty party is in bold print at the top.

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