Posted by Rosemary D'Amour on November 12, 2008 at 4:18 PM
For over 100 years, The New York Times has set the standard for print publications in the US and all over the world. In an article on Monday, Scholars and Rogues, a blog offering commentary and analysis on breaking news, said that the legacy could be close to its end, because the Times has "significant debt coming due, and insignificant cash on hand."Scholars and Rogues comments that the Times did not accept the Internet as an "effective colleague" to distribute news and information, regarding it as "ineffective." This has now proven "costly," as the numbers indicate.
Scholars and Rogues reports that while the Times' online readership remains high, "it's not translating into sufficient online advertising revenue." According to Henry Blodget of the Silicon Valley Insider, based on recent NYTCo. filings with the Securities and Exchange Commission, the Times owes $453 million more than it has. The Times' business model, which has been applied by many publications, is "faltering." It faces the problem that every other newspaper in the United States faces - how to make online adverting pay off fast enough to keep up with costs. According to Scholars and Rogues, "Internet ad revenues, though increasing, will not produce sufficient revenue soon enough to stave off drastic, perhaps catastrophic, changes in the newspaper industry."So the question is, what can the NYT do to cut costs and remain afloat? Will cutting jobs be enough? Will they need to end print editions? An interesting point, "any change in the Times company's business model will influence the readership habits and information needs and wants of millions of people." Keeping this in mind, they will need to find a solution that both allows them to maintain their status and have the resources to provide quality news coverage.
P.S If you were on the ball today you could have had yourself some NYT Company action for as little as $7.33. Currently trading, as of about 20 minutes ago, at $7.57. That's nearly 46% down over 3 months.
New York Times Co
(NYT:NYQ) NYT on other Exchanges
7.57 USD Last
-0.13 -1.69% Change
1.5M Above Average Volume
Data as of November 13, 2008 14:17 exchange time. Market data is delayed by at least 20 minutes
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