The Manager's View

Here are some more thoughts on why newspapers may still be a wise investment and how they may find ways to develop a stable of print and digital products that complement each other. Virtually all newspapers have websites that look good and have great functionality. So why aren't they all producing acceptable amounts of profit? The question probably should be asked differently, "What do consumers and advertisers expect from newspapers?" Then ask, "What do they expect from the Internet?"  The answers are different but there is overlap. The area of overlap is the area of opportunity for creating a business that is needed by consumers and advertisers and capable of creating value that translates into profits. To determine the real value of the website it is useful to measure the total advertiser dollars spent on a website only ad buy versus those being bundled with a newspaper or distribution ad buy. These stand-alone purchases might give so...

Interesting news that the Boston Globe sold for $70 million and the Washington Post sold for $250 million. These newspapers would have commanded at least 5 times that selling price a decade ago. This is further evidence that print media is in trouble. The question is if the trouble is truly from the presence of digital products or from management’s inability to change the business model of newspapers. By selling to owners in other fields of business, perhaps newspapers will find a way to succeed. Selling the Washington Post to the founder of Amazon.com, Jeff Bezos may provide some new innovative solutions. Selling the Chicago Tribune to a private investment firm did not provide a favorable outcome. I would say that the Amazon.com approach to building customer relationships has a better chance of success than most. I would also say that the owner of the Boston Red Sox, John Henry, has a better idea of how to engage an audience than most. I have spent a lot of t...