Quote:
Originally Posted by greentree
That's a weird thing to say, and wrong.
Newspapers--all print media--rely on advertising and paid circulation for revenue. They always have. But those two revenue streams are greatly diminished thanks to a) traditional ad buyers having left and b) the Internet.
Classified ad revenue vanished many years ago and it will never return. Newspaper classifieds haven't been in the conversation for a loooong time. They are history.
None of this is a mystery.
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I once had a nice chat with one of PM's editors. He was convinced that newspapers made money from people buying the paper because of content. I told him that it came from classified ads and that all that revenue vapourized. He told me to f off.
Good chat. Clearly they had a handle on the problem.
I should mention that in Postmedia's case, they have a ton of debt that's basically made it impossible for them to keep their profits (they're actually profitable before interest expense). Gee who'd a thunk buying a bunch of buildings using debt would've bit them in the ass.