Bankruptcy for Tribune won't stop the inevitable

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Did Time and Newsweek end newspapers?

More thoughtful interpretation of newspapers - the answer to Why? in this Comment's terms - has been available for decades. And the internet is not drawing such a large percentage of advertising dollars that there's not enough left for any other source of news.

So what's the real problem?

There's reference to debt in the Comment. The debt came from acquisitions, either an organization buying the paper or the paper buying other papers. That's usiness judgment... failing to be vindicated.

But far more significant is the stock price. There are arbitrary rules about the profit percentage that control the share price, and the share price controls executive bonuses.

So profitable operations are being treated as not profitable enough, and the product is being degraded to add short-term profits. The lower quality product in turn reduces revenues, creating the downward spiral.

I'll assert that avoiding risky mergers and accepting a realistic level of profit and changing the basis for the CEO's compensation would stabilize the newspaper business.

Posted by: Anton Philidor   Posted on: 12/08/08 You are currently: a Guest | Members login | Terms of Use

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