Thursday, November 10, 2005

Bad Week for the Mercury News

As I read today's Mercury News, I saw the notice -- the natural consequence of declining advertising revenues and recent layoffs. The MN is stopping publication of The Guide, its Wednesday supplement focusing on neighborhood news. The notice read:
This decision is a reflection of difficult economic challenges faced by the Mercury News and the newspaper industry in general.

Of course, the MN promises to continue to carry many of the local stories that used to appear in The Guide in its daily sections, but it's going to be tough to do with falling ad revenues, fewer pages and fewer reporters.

A premonition of the cutback appeared in Tuesday's business section: an AP article, Newspaper circulation falls 2.6%.
The declines...show an acceleration of a years-long trend of falling circulation at daily newspapers as more people, especially young adults, turn to the Internet for news and as newspapers cut back on less-profitable circulation.

Today's MN business section had more bad news: a recent patent application indicates that Google's next target may be classified advertising.

Google's next gobble: classifed ads? suggests this will put Google in direct competition with eBay and craigslist...but the biggest loser in this scenario would be the daily newspapers, which have been losing classified ad revenues to online companies for some time.

Not exactly a fun time to be in the newspaper industry.

1 comment:

Nicole H. said...

I think it is nice and maybe convenient for some to get their news from the Internet, but what will happen to people who do not have Internet access? The news as of late has talked about the elimination of print media and my first thought is: What about people that don’t use computers? Some of you may be thinking who doesn’t own a computer? Well, my grandma sure doesn’t and I know many other people who do not rely on their computers and Internet for news. What will happen to them if pint media is eliminated? If we eliminate print media, I think the United States runs the risk of having an uneducated and uninformed society.