Horace Dediu on why newspapers are so heavily tied to actual printing:
To give you an idea of how important the printing plant is,
consider that a huge proportion of a newspaper’s assets are tied
up in its printing plant. That plant is so large and so demanding
that it ends up causing the whole business to revolve around it:
Print runs are done at night to make sure the product is delivered
in the morning. That puts a hard deadline on the writers to submit
stories before the product is “frozen” into a final edition.
Writers and editors and advertisers need to march in lock-step to
the cycle time of a big manufacturing operation.
And advertising revenue is going to sink, not rise:
In the US, a large part of the local paper’s revenue base was
wiped out by Craig’s list. Classifieds are a fading memory. With
respect to regular ads, the story is almost as bad. 26% of ad
spend in 2009 was allocated to print, while only 12% of time spent
consuming media was spent on it. In contrast, Internet use is at
28% of time where only 13% of ad dollars are allocated.
★ Monday, 22 November 2010