Wednesday, August 17, 2005

Warren Buffett Predicts Bad News For Newspapers

More very bad news for the MSM major daily newspapers:

No More Movie Ads

In a surprising role reversal, Hollywood is about to deliver bad news to the Los Angeles Times and The New York Times and, to a lesser extent, other big-city dailies around the country. Every major movie studio is rethinking its reliably humongous display ad buys in those papers because those newsosaur readers are, to quote one mogul, “older and elitist” compared to younger, low-brow filmgoers — so it makes no sense to waste the dough.

Wait, it gets worse: I’ve learned that at least two Hollywood movie studios have decided to drastically cut their newspaper display ads as soon as possible.

The old paper press is in trouble from not only a credibility perspective but also a subscription and revenue perspective. I would not want to rely on my pay check from a newspaper especially with this latest prediction from the "Oracle of Omaha", Warren Buffett:

“the economics of newspapers in the United States are very close to certain to deteriorate over the next 10 to 20 years.” And this is coming from a self-described newspaper addict and savvy media investor.

When the man with the midas touch says run from newspaper stocks, things don't look bright. If there ever was an organization that needed to wake up and do a true and thorough self evaluation, its organizations like the NYT, LA Times, WaPo, St. Louis Post Dispatch, and their like.....................