PWC study forsees significant losses for newspapers
Posted by Emily Dilling on June 17, 2009 at 3:44 AM
A study conducted by PriceWaterhouseCoopers (PWC) predicts losses of up to $13 billion in revenue by 2013 for the North American newspaper industry Editor & Publisher reported.
Declines in advertising revenue are seen as the main source of losses in the print news business, which the study estimates will drop by 32.7 percent over the next three years.
PWC's Global Entertainment and Media Outlook report found that the American newspaper industry is suffering more than its neighbor to the North, where slower decreases in circulation and increased readership of free dailies has helped the Canadian industry.
Declines in advertising revenue are seen as the main source of losses in the print news business, which the study estimates will drop by 32.7 percent over the next three years.
PWC's Global Entertainment and Media Outlook report found that the American newspaper industry is suffering more than its neighbor to the North, where slower decreases in circulation and increased readership of free dailies has helped the Canadian industry.
Classified ad sales are expected to be a major source of losses for newspapers in the coming years, with want ads projected to drop 50 percent in 2009. Real estate, retail, and automotive ads will also experience declines according to the study.
The study predicts that online advertising will eventually be profitable, but not in the immediate future, claiming, "an expanding economy will translate into growing online spending and project a return to double-digit growth in 2013."
The study predicts that online advertising will eventually be profitable, but not in the immediate future, claiming, "an expanding economy will translate into growing online spending and project a return to double-digit growth in 2013."
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