Analyst says newspaper glass is half empty
Media analysis site Follow The Media has a look at what’s in store for the U.S. newspaper biz, and it doesn’t look pretty — at least not according to one of the few financial analysts still following the industry. Peter Appert of Goldman Sachs wrote in a research note that he expects 2007 newspaper ad revenue will drop by 4.4% from a year ago.
“The cause – the increasing double digit percentage Internet revenue growth is still far less in hard cash than the increasing print single digit percentage losses. He saw no joy from the mid-year Media Review with no publisher really pointing to any specific light at the end of the tunnel.”
The site says that Appert’s note saw big losses in classified (10.8%) and national advertising (5%).
“What really worries him is that these print losses are occurring in what he calls “a relatively healthy economy.” He has a “sell” rating on McClatchy because the company has little to fall back on except newspapers, and he continued his “sell” on the New York Times Company for pretty much the same reason.”
((hat tip to Editor’s Weblog for the link)
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