Writes Gary North:
The advertising-based business model of the newspaper industry is clearly terminal. Subscribers will not pay enough to offset ad revenue losses. The Left’s local ideological spin factories are fading fast. The “law of 72” is alive and well, unlike newspapers. A 10% annual decline means a 50% decline every 7.2 years.
A separate Pew Research Center analysis based on the year-end financial statements of seven publicly traded U.S. newspaper companies suggests that advertising revenue across the industry declined even more sharply than in recent years: a 10% decline, which outpaces the 8% decline in 2015. (More details about this analysis are also available in the newspaper industry fact sheet.) This decline put total ad revenue for the industry in 2016 at $18 billion. This is nearly a third of what it was just 10 years ago: In 2006, the Newspaper Association of America, now known as the News Media Alliance, put total industry ad revenue at $49 billion.