Wednesday, December 17, 2008

Massive Closings or Bankruptcy Seen for Daily Newspapers Nationwide in 2009, Due to the Internet and Recession.

Massive Closings or Bankruptcy Seen for Daily Newspapers in 2009 Due to the Internet and Recession.

The Columbian newspaper nearing bankruptcy
2). Rocky Mountain News Nearing Bankruptcy
3). Tribune bankruptcy filing’, SUB LIST BELOW
Chicago Tribune newspaper
5). Baltimore Sun
6). Los Angeles Times.
Sun-Sentinel (South Florida),
8). Orlando Sentinel
9). Hartford Courant
10). Morning Call and Daily Press
11). The New Haven Register

Daily Newspapers have to change their format now, increase their on-line internet participation or face closure.

Together with the impact of steadily increasing financial pressures, the growing influence of the web is the second major factor driving the change of newsroom culture. News people are stretched to the limit trying to feed the seemingly insatiable appetite of the web for content—immediately.

The enormity of its impact on the industry—both real and potential—is hard to overestimate. The web has opened new vistas for daily newspapers, enabling them to offer video content that competes directly with television. It provides newsrooms the ability to establish a genuine two-way conversation with readers in a newspaper’s own community while at the same time extend the reach of the paper’s circulation to anyone with an Internet connection, whether they are in Hong Kong, Helsinki or Hoboken.

Today’s savvy news junkies know that if a big news story breaks, it’s a good bet the website of the nearest newspaper will have timely, exclusive content. The Internet has also helped facilitate collaborative efforts such as that between the St. Petersburg Times and the Congressional Quarterly’s CQ Weekly to produce the “PolitiFact” feature.

The Internet is redistributing the news audience in ways that is threatening some traditional news organizations. Local newspapers have been the outlets that are most at risk, and they are likely to remain so. If the trend analysis is borne out, many newspapers are going to have difficulty even holding onto their online readers.

Brand-name newspapers’ sites, as well as some others are growing, but a significant proportion of newspaper sites are stagnant or losing visitors. This development was perhaps inevitable. The problem of newspapers is compounded by the fact that they cannot succeed simply by replacing their hard-copy readers with online readers. On a person-by-person basis, the sale of hard-copy newspapers is vastly more profitable than drawing people to the paper’s website.

It is estimated that a newspaper needs to attract two or three dozen online readers to make up for—in terms of advertising revenue—the loss of a single hard-copy reader. When people go to the Internet for news, they can just as easily navigate to a source outside their community as one within it, bypassing a local site in favor of a known site elsewhere. Therein is a primary reason why brand-name news organizations, like CNN and the New York Times, have large Web audiences."

"I have long stopped reading the local print copy of the Sarasota Herald Tribune, instead I receive online to my e-mail address every day copies of the LA Times, Fresno-Bee, NY Times, NY Daily News, Miami Healed, Tampa Tribune, Binghamton Press & Sun Bulletin, Sarasota Herald Tribune and the St Pete Times, of which I can breeze through the top topics nationwide in about 30 minutes".

NEW YORK -- Tribune Co., owner of the Los Angeles Times, Chicago Tribune, Baltimore Sun and other dailies, filed for Chapter 11 bankruptcy Monday 12/08/08, the first major newspaper publisher to take such a step since the Internet plunged the industry into a desperate struggle for survival.

The media conglomerate was smothered by a drop-off in advertising and a crushing $13 billion in debt from the company's takeover a year ago by Chicago real estate mogul Sam Zell.

Chapter 11 would buy Tribune Co. time to put its finances in order. Analysts said the company almost certainly will have to sell off some of its major holdings -- and that could prove extremely difficult because of the bad economy and the poor outlook for newspapers.

"When you look at the near term, prospects for the company and the industry are certainly not very bright," said Dave Novosel, an analyst with the Gimme Credit research firm.

Bill Warner
Private Investigator
WBI Inc Private Detective Agency
Phone 941-926-1926