No wonder they’re firing people….
In case you were wondering why newspapers like the New York Times continue to cut costs and fire people, here are some stats for you.
They come from former newspaper veteran Alan D. Mutter, who fled the industry years ago. (Mutter writes the excellent blog “Reflections Of A Newsosaur”).
The basic problem is that newspaper digital revenue, which is growing, is not replacing newspaper print revenue, which is collapsing.
How big is the disparity?
* In the past year, newspapers have lost $13 of print revenue for every $1 of digital revenue they’ve gained (that’s all digital revenue, not just ads).
*In the past 6 years, newspapers have lost an even more staggering $55 of print revenue for every $1 of new digital revenue (based on third quarter numbers).
Mutter pulls these and other numbers into one devastating chart.
The blue line in the chart below is newspaper print ad revenue (collapsing).
The green line is newspaper digital ad revenue (basically flat).
The orange line is overall digital advertising revenue, which the newspaper industry has completely missed out on.
See on www.businessinsider.com