By: Alan D. Mutter | Relflections of a Newsosaur
Roughly a decade after the commercial debut of the Internet, America’s newspapers posted record high advertising sales of $49.4 billion in 2005, leading many publishers to think their businesses would not be seriously affected by the digital revolution. But they were wrong.
Since hitting that high note in 2005, the industry has undergone a dramatic and traumatic contraction, losing nearly half of its print readership and more than a third of its revenues. With the pre-tax profits of the publicly held publishers cut by 39% since 2003, newsroom staffing has dropped to a historically low level. In spite of the declared determination of most publishers to pivot from print to pixels, the industry’s share of the digital advertising market has plunged by more than 50%.