Newspapers will have to wait for Internet rewards
By Leah McBride Mensching, Monday 2 July 2007 at 04:51 :: Online/Digital Publishing :: #19 :: rss
Online growth will not offset print losses for at least four years, which means it may take a while for newspaper publishers to see Internet rewards, a Goldman Sachs analyst said today.
Newspaper publishers are dealing with difficulties as they shift from a focus on print, to become dual print and online businesses, Goldman Sachs analyst Peter Appert said. He does not see Internet growth offsetting print declines before 2011, he added.
“Ultimately, we believe newspaper publishers will re-emerge as very healthy and dominant players in the local media marketplace, but with margins that will not likely match the more than 20 percent levels the industry has historically enjoyed,” he wrote in a client note obtained by the Associate Press.




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