Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Goldman Sachs Predicts Grim Year For Newspapers (Dinosaur Media DeathWatchâ„¢)
Media Daily News ^ | January 10, 2008 | Erik Sass

Posted on 01/10/2008 5:14:58 AM PST by abb

NEWSPAPERS WILL TAKE IT ON the chin in 2008, according to analysts with Goldman Sachs, who warned Wednesday of a potential double-whammy, as the industry's secular downturn converges with a broader economic slowdown. Overall, they forecast a 7.9% decline in revenue, a much more substantial drop than their earlier prediction of just 2.6%. The predicted 7.9% drop is especially gloomy as it comes after several years of losses, compounding a 1.8% decline in 2006 and a roughly 8% drop in the first three quarters of 2007 compared to the same period in 2006 (fourth-quarter figures aren't yet available).

As always, the collapse in classifieds leads the way. In a note to clients, GS said: "We expect the classified categories to be very weak with the real estate, help wanted and auto categories particularly sensitive to broader economic activity." All three categories are also suffering from intense competition from the Internet.

The downturn in the housing market has led to a meltdown in real-estate classifieds in particular, with overall real-estate classifieds falling 24.4% in the third quarter of 2007, compared to 2006. Recruitment is down 19.7%, and automobiles 17.7% in the same period.

As a result, GS cut earnings forecasts for the New York Times Company, McClatchy, Gannett, Belo, Journal Communications, and E.W. Scripps.


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: advertising; dbm; newspapers
Your Medium is Dying
1 posted on 01/10/2008 5:14:59 AM PST by abb
[ Post Reply | Private Reply | View Replies]

To: 04-Bravo; aimhigh; andyandval; Arizona Carolyn; backhoe; Bahbah; bert; bilhosty; Caipirabob; ...

ping


2 posted on 01/10/2008 5:15:19 AM PST by abb (The Dinosaur Media: A One-Way Medium in a Two-Way World)
[ Post Reply | Private Reply | To 1 | View Replies]

To: abb

Really going out on a limb with that one.


3 posted on 01/10/2008 5:16:05 AM PST by Slapshot68
[ Post Reply | Private Reply | To 1 | View Replies]

To: abb
bad morning in America is touting GS statement that we are all going to die from recession. These political attacks on our Nation are being created by clinton men running GS. They lie... cheat and steal. They destroy and build nothing but wealth for themselves. Beware.

LLS

4 posted on 01/10/2008 5:20:17 AM PST by LibLieSlayer (Support America, Kill terrorists, Destroy dims and vote Fred!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: abb

Couldn’t happen to a nicer set of folks. On my priority list for business collapse and, hopefully, future extinction:

1) New York Times
2) Los Angeles Times
3) Boston Globe
4) Atlanta Journal Constitution
5) San Francisco Chronicle
6) Houston Chronicle

... and then my wish is that the others get bought out by right-wing, union-busting businessmen who send the leftist journos packing.


5 posted on 01/10/2008 5:47:43 AM PST by tom h
[ Post Reply | Private Reply | To 1 | View Replies]

To: abb

May the trend be so bad, that 2007 will be looked at as the last “Good” year for these bastards.


6 posted on 01/10/2008 7:04:21 AM PST by Grampa Dave ("Ron Paul and his flaming antiwar spam monkeys can Kiss my Ass!!"- Jim Robinson, Sept, 30, 2007)
[ Post Reply | Private Reply | To 1 | View Replies]

To: abb
Overall, they forecast a 7.9% decline in revenue

I predict maybe double this. I think the acceleration of this decline will be higher than expected.

7 posted on 01/10/2008 7:11:41 AM PST by Uncledave
[ Post Reply | Private Reply | To 1 | View Replies]

To: abb

I hope the prediction is understated.


8 posted on 01/10/2008 7:27:29 AM PST by Secret Agent Man
[ Post Reply | Private Reply | To 1 | View Replies]

To: abb
Raoul's First Law of Journalism
Bias = Layoffs

9 posted on 01/10/2008 8:04:33 AM PST by Doctor Raoul (Abolish the CIA, give the job to the Free Clinic who know how to stop leaks.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: LibLieSlayer

What does GS stand for? I thought it was George Soros but that doesn’t really work in your statement.


10 posted on 01/10/2008 10:30:54 AM PST by TenthAmendmentChampion (Global warming is to Revelations as the theory of evolution is to Genesis.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: abb

Don’t discount the effect of incompetent management on these companies. They have allowed their ad departments to collapse, then the gut their content because they can’t sell enough ads.

Maybe it is just the bad advertising market driving good salesmen to other fields, but the ad salesmen I deal with are just awful. If someone wants to buy an ad, CALL THEM BACK.

A friend wanted to place an ad in a specific print publication. He called repeatedly, but no one would call back until after the ad deadline.


11 posted on 01/10/2008 10:49:25 AM PST by MediaMole
[ Post Reply | Private Reply | To 1 | View Replies]

To: TenthAmendmentChampion

Sorry... Goldman Sachs.

LLS


12 posted on 01/10/2008 11:57:02 AM PST by LibLieSlayer (Support America, Kill terrorists, Destroy dims and vote Fred!)
[ Post Reply | Private Reply | To 10 | View Replies]

To: LibLieSlayer

Note to self, read the headline. Duh!


13 posted on 01/10/2008 12:55:14 PM PST by TenthAmendmentChampion (Global warming is to Revelations as the theory of evolution is to Genesis.)
[ Post Reply | Private Reply | To 12 | View Replies]

To: LibLieSlayer

GS is the outfit that engineered the Mexico debt bailout to save Robert Rubin. You’re exactly right.


14 posted on 01/10/2008 12:56:36 PM PST by TenthAmendmentChampion (Global warming is to Revelations as the theory of evolution is to Genesis.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: TenthAmendmentChampion

:-)

LLS


15 posted on 01/10/2008 1:28:46 PM PST by LibLieSlayer (Support America, Kill terrorists, Destroy dims and vote Fred!)
[ Post Reply | Private Reply | To 14 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson