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We live and work in exciting times - revolutionary times. Technology continues to recast the media industry.

The extraordinary advance of affordable personal digital technology and the stellar rise of social networks are both distrupting and transforming the media market making this a unique moment to be involved in the convergence sectors we focus on.

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Friday 28 November 2008

US Newspaper industry contracting at alarming rate


The newspaper industry in the U.S. continues to shrink at an alarming rate. According to the Newspaper Association of America,, total industry advertising (both print and online) in the third quarter was $8.9 billion, down 18 percent from the year before. The oniine portion of that was $750 million, down 3 percent. So far in the first three quarters of 2008, the industry’s total advertising revenues have shrunk by $5 billion to $27.8 billion.

Print advertising has been declining for ten straight quarters, but this marks only the second quarter that online advertising also went down. More concerning is that the overall rate of decline seems to be accelerating. Here is the percentage change in total newspaper advertising for the past five quarters:

3Q07: -7.4%
4Q07: -10.3%
1Q08: -12.85%
2Q08: -15.11%
3Q08: -18.11%

The fourth quarter will probably be worse.

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