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 The price isn't right

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EricaCNPA

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Number of posts : 142
Age : 37
Registration date : 2007-06-13

PostSubject: The price isn't right   Thu Jul 26, 2007 6:18 pm

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You will I'm sure have heard about Media General's terrible numbers. Profit down by 28.7%, ad revenues down by 11% on 2006. This is meltdown territory.

I'll spare you another run through the reasons why the internet cannot be our only future. (Media General's 8% interactive division is pleased by 61% growth though its revenue only just covers interest payments on two new TV stations the company acquired).

But let's be clear: there's no positive spin to be spun on these numbers. The fact of declining revenues is very real and while it can, I believe, be halted, it probably can't be bounced all the way back. And if we want a future rather than a slight extension of the present, we have to do something about this decline other than cut costs. So if that something isn't gambling blindly on online growth what is it?

There are only two sources of revenue we understand: advertisers and readers. If advertisers are deserting us, then we either lose money or we ask readers to pay more. Happily I've seen that approach work.

Read the whole Inksniffer post

Thanks to Kristin fo sending me this informative, if alarming, story.
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