Over at Rebuilding Media , Ben Compaine gives a pretty compelling breakdown of the sinking ad revenues of newspapers. Doing a little back-of-the-envelope calculation, he arrives at the conclusion If newspapers have essentially been able to thrive on the revenue from advertisers alone (again, with cost of printing more or less covered by circulation revenue), why are they having so much trouble today? The answer is not one single factor, But a major contributor is that newspapers – whether print or digital—are just worth less to advertisers than they were 20 years ago. It's yet more evidence that the bubble of the traditional one-way broadcast model of media is bursting. Newspapers are having a terrible time dealing with their business model failing (which Compaine gracefully remarks on, saying editors usually thrive on this kind of economic collapse, except when it's their own). I have been under the assumption that newspapers could save themselves if they'd just pull their
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Commentary from the Crossroads of Technology and Culture.