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October 20, 2005
Times Profits Drop, Minorities, Women Hardest Hit
New York Times profits drop 52%:
SAN FRANCISCO (MarketWatch) -- New York Times Co. on Wednesday reported a 52% decline in third-quarter profit due to expenses related to job cuts announced earlier this year, as well as ongoing advertising weakness at its New England media properties.Part of this, I'm sure, is due to the fact that almost the entire paper is available on the web for free. Why purchase the Times when you can read it at work when you're supposed to be doing TPS reports?New York Times said it took a pretax charge of $12.4 million related to a plan announced in May to eliminate about 200 positions. On an after-tax basis, the charge was $7.5 million, or 5 cents a share.
Also, the Times was once a great paper for national and international news, but that news is now available from other sources. The media is quickly becoming a la carte. Why should I care what the Times thinks of what's going on in Israel, for instance, when I can read the Jerusalem Post? If I want to read about a business story, I turn to the Wall Street Journal. For a story about something happening in Texas, I turn to the Dallas Star-Telegram. The NY Times still sees its role as news aggregator when such a service is no longer needed.
Hubris, more than anything else, is what's ailing the Times. Media is changing, but the Times has not. They still seem to consider themselves the one media outlet that drives the news cycle, not realizing that by the time their paper hits newstands each morning, most people have seen the headlines a few times on television, heard pundits talking about the stories and read a few opinions about the news on the internet.
Simply put - the old business model doesn't work anymore, and it's finally beginning to show in the bottom line. (h/t: Ace)
Posted by slublog at October 20, 2005 12:00 AM
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Comments
Blogs (and the internet) are a blessing that will change the way we relate.
The situation with the Times is ironic - it really was the champion of journalism and represented a noble ethic - it all fell due to a very large mistake by a small person - they now represent all that can be wrong when one person is put in a position to promote a reality that wasn't. A false reality that was more readily accepted because it came from such a respected source.
The Times lied to us...
Bill
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