North American Newspapers Experiencing Downturn

With advertising revenue becoming harder to procure, it seems that there is a crisis of confidence running through the publishing offices of some very prominent daily newspapers, with both U.S. and Mexican papers showing signs of severe financial strain.

It was widely reported that leading U.S. newspaper executives will meet during the last week of June in NYC to discuss ways to shore up the faltering confidence shown by skeptical investors.

Of note, Wall Street Journal publisher Dow Jones & Co. Inc. is expected to skip the meeting, as speculation mounts that it will be swallowed up by Newscorp Inc.

The newspaper industry is struggling mightily as advertisers and readers flee print for the Internet. As observers have duly noted, newspapers' online revenue growth, while still substantial, has slowed from its burgeoning rate earlier in the decade. Some industry experts posit that newspapers have been behind in the total growth rate for Internet advertising for the last several years.

Most of print newspapers' online revenue comes from an up-sell of print classifieds, and this year real estate classifieds -- an area of enormous growth in 2005 and 2006 -- have fallen sharply, by approximately 15 percent. Automotive and employment classifieds continue to decline at roughly 10 percent a year. Thus, even in a period of deep staff cuts and very cheap newsprint prices, the U.S. tabloid industry, as a whole, is falling down in earnings, profit margins and earnings per share.

The problems appear to be even worse in neighboring Mexico, with The Herald Mexico, a daily English-language paper published in Mexico City closing down publication on June 1. 'Economic considerations' were cited as the reason given for the paper's closure.

The Herald began production in Feb. of 2003, one month after a Mexican-owned English-language daily, The Mexico City News, shut down permanently after 53 years of publication. The Herald was a collaboration between The Miami Herald of Miami, Florida, and El Universal, a popular Spanish-language newspaper which is also published in Mexico City.

In a farewell notice on the main page of the Thursday, May 31 edition, the paper said 'thank you' to loyal readers and supporters. Addressing the closure, the notice said: "The global paper industry is currently going through important changes. In many instances, financial pressures have forced print newspapers and magazines to close down or make draconian changes to stay afloat. The Herald Mexico is no exception."

However, the aforementioned notice signaled that there is a chance for a possible comeback in the future by stating: "There is a definite need for an English-language publication in Mexico that serves expatriots, tourists and Mexicans who either speak or want to perfect their English. We hope this message will not be a definitive adis."

An article in another Mexican newspaper, Guadalajara Reporter, the Herald's management is actively seeking a new publishing partner.

Article Source: http://www.christiannotepad.com

Matthew Paolini is Citybook.com's technical director for the Denver, CO business Yellow Pages division.