Newspaper Industry On The Rise; Is the Newspaper Back?

The newspaper industry has been on a slippery slope thanks to easier access of news online and advertisers taking their business to the Internet as well. Newspaper profits and stock prices have fallen and, like most industries in the recession, they have cut jobs in order to stay afloat. However, Gannett Co., which is the nation’s largest publisher of newspapers, has reported earnings that were way beyond what was initially expected. That is good news, somewhat, but with the ad revenue of newspapers being at an all time low, a small rise in revenue may only look the part of a recovering industry without being a hopeful sign.

Again, even before the recession, newspapers had to deal with the Internet not only providing more content on a daily basis but taking the majority of advertising money too. Many people still love to have a newspaper in hand due to the quality of work put into articles, which can’t simply be posted on a whim. This fact, along with the lowering of advertising costs due to the newspaper industry cutting workers and wages, printing smaller editions, and spending less to print these smaller editions could be a breeding ground for the comeback of the newspaper industry.

There still remains the problem of online advertising with which the newspaper industry must contend. With many online ads being cheaper or even free in some cases, the newspaper industry is looking for a way to generate more profits from their ads without fully pushing newspaper readers to the Internet. Charging fees for reading news online will just cause readers to go elsewhere, which would then cause the same for advertisers. So, can the newspaper industry find a solution to the Internet problem or are these reports of rising stocks simply a bright spot before the fall?

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