Business Model

Newspapers

Business model

The recent quarterly bill arrived from the News & Observer. The recurring question: Does the N & O deliver value for the price paid….and does the N & O have a sustainable business model?

  1. N & O value: No, the value has been significantly diminished over the years. Content is much less than in the past….primarily due to the loss of advertising revenue.
  2. N & O business model: Is it sustainable? – No. newspaper revenue was based on advertising….both classified and display. Subscriptions can’t provide the needed revenue.

McClatchy Co., the owners of the N & O continue to show losses with their newspaper publications.

At some point….it may just be prudent to forgo the daily newspaper (except for Sunday). After all, if the value is not relative to the cost why continue!

Latest McClatchy Co. Financial Report:

http://www.kansascity.com/news/business/article41611470.html

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