Newspapers' Annual Reports Show Chains Profitable

Abstract

The death of newspapers was widely predicted at the height of the 2008–09 economic crisis. An examination of financial data for publicly traded newspaper companies in the United States and Canada, however, shows that their business model is highly adaptable, as all remain profitable.

First-movers and industry shakeups: How public newspapers define value

“…To date, few studies have fully examined how corporate newspapers define and communicate value. The limited number of prior works focused on the newspaper industry and its economic health have probed profitability largely through a quantitative perspective, looking exclusively at revenue generation (Edge, 2014; Grueskin et al, 2011). Little scholarship has used public documents, such as 10-Ks, to probe conceptualizations of value.…”

The price of outsourcing: A content analysis of the effects of early deadlines on the sports section in The Oklahoman

“…The newspaper business has for many decades been regarded as a boom or bust business model (Edge, 2014). Regardless of the business climate, research shows newspaper owners have continually sought ways to generate new revenue or to cut costs to bolster the bottom line.…”

“…The 1990s and 2000s saw a new challenge as the Internet created alternative means for news consumers to seek content. Circulation declines begun in the 1970s accelerated in the mid-2000s as the Internet became more available (Edge, 2014), and they continued into the 2010s. For example, weekday circulation declined 10% in 2016 alone, and Sunday circulation declined by 9% (Audit Report for The Oklahoman, 2015Oklahoman, , 2016.…”

“…As public concern for daily newspapers grew with the rise of televised news, the industry seemingly received a boost with a law allowing Joint Operating Agreements in communities between competing newspapers without violating antitrust laws (Edge, 2014). Despite the law, independent daily newspapers continued disappearing, with more papers becoming parts of chains (Becker, Vlad, Daniels, & Martin, 2007).…”

“…Many predictions have warned about the imminent demise of the newspaper industry, including The Disappearing Daily (Villard, 1944). Yet, one researcher has argued the existing business model is still “robust” (Edge, 2014). In a study of some large American and Canadian newspaper chains from 2009 through 2013, Edge found balance sheets not only in the black but chains enjoying steady profit margins.…”