Trend or mismanagement?

Not too long ago I read an article about how some newspapers had been able to make 20, 30, or even approaching 40 percent profit in the past few years and as a result leveraged their money for new equipment, etc. and took on a lot of debt.   Money was "no object."

Then the recession hit, revenues fell, and their profit margins had to be reduced in order to compete.  As a result, some of them are experiencing bankruptcy situations

Meanwhile smaller newspapers who had been satisfied with profits around 8 percent have been able to remain somewhat steady.  I believe that the article was in "Barron's."

With all of the emphasis on electronic media, will there continue to be a market for printed media?

Are the newspaper failures simply another indication of greed and/or mismanagement at their top levels?

 

Comments




  • What should be the acceptable rate for the profit margin?

    shadows, 3 weeks ago | Flag
  • As is with any business the bottom line is profit at the expence of the workers. If the profit margin falls the employment goes down but the upper management still sit in their ivory tower.

    RealAmericanBiker, 3 weeks ago | Flag
  • With all of the emphasis on electronic media, will there continue to be a market for printed media?  Yes, I believe the need will still be there for those who aren't into on line media or on line anything!  A number of people either chose not to have a computer or can't afford one.  Sales ads are important right now as well as coupons for savings.  We still get weekend newspaper.


    Are the newspaper failures simply another indication of greed and/or mismanagement at their top levels?  I think it has more to do with mismangement!  I have friends that work for the Seninole and they have really been struggling and have given up some things just to keep things going.  All efforts have been made through the empolyees but not as much through the CEO dogs, so a bit of greed is included!

    BornToBeWild, 3 weeks ago | Flag
  • Who reads the paper anymore. With all the TV news casts and the internet what you see in the paper was yesterdays news.

    RealAmericanBiker, 3 weeks ago | Flag
  • Rightaway - you might as well go ahead and puke. With all of the support the newspapers gave to Obama, as well as how they continue to support him, you know that the Obama administration is going to give them bail out money to keep them going.  That way they can continue to help him with his propaganda.  Yes, I am one of them.

    voidthis1966, 3 weeks ago | Flag

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