Thursday, March 23, 2006

MSM Giant Has A Big Problem

This from the New York Post -


March 23, 2006 -- The New York Times Company yesterday warned of a first-quarter slump, pinning the blame squarely on weak advertising business at the Boston Globe and other Times-owned papers in the region.

The warning came as company chairman Arthur Sulzberger Jr. planned a trip to Boston next week, creating anxiety in the newsrooms of the Globe and other New England Newspaper Group papers.

Times officials insist, however, that the Sulzberger visit is "routine" and that no more cutbacks are planned.
The warning was a "disaster," according to Ed Atorino, an analyst at Benchmark Inc. "The Boston Globe seems to be having some major problems in help wanted, retail, across the board."

Atorino said the group's 12 percent decline in February ad revenue was "probably the worst of any major newspaper group."
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So let us get this straight, ad revenues are down due to weak advertising business – yea - right!

People do not trust the mainstream press to deliver a clean, clear balanced message so they do not buy as many papers.

Advertisers, facing an economy that’s clicking along (yesterday, the DOW closed up 81 to 11,317 and change) have to advertise, so they place their message where it is expected to be delivered to people who believe in capitalism and buy products.

MSM, facing a business model in decline, refuses to look at the obvious for answers. “Nope, it’s the WEAK Advertising business”. It is a little like Hollywood complaining that nobody goes out to see all of their “Award Nominated/Award Winning” movies.

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