Income of the industry

Author

Jaouad Ben Dahman

Description

Newspapers used to get their income from two sources: their readers (who either paid by subscription or at the newsstand) and advertisers. As more and more newspapers started making their content available on the internet free of charge, the first source of income dried up, as readers stopped paying for articles that they could get free on the web. Newspapers hoped to make up for the sales decline with increased advertising revenue, as the market for online adverts exploded. But the rise of classified advertising websites like craigslist.com cut into newspapers’ revenue stream, while the recession has led to a drastic reduction in the amount of advertising companies are willing or able to pay for.

Enablers

1. Company's that want to aware people of sale outs and actions
2. Organizations that want to reach a certain group of costumers
3. Interaction between the news and the advertisments to interfere with the readers

Inhibitors

1. Internet is getting more used by people and advertising is moving towards the internet.
2. Increasing printing and paper cost push the producers to place more advertisments to cover the costs.

Paradigms

“It’s sad that for every dollar the newspaper gets in print advertising, that same dollar translates into the equivalent of less than a dime in its online counterpart,” Professor Neil Henry, Dean of the Journalism School at the University of California, Berkeley.

Web Resource

http://peablog.wordpress.com/2009/02/28/weekend-story-crisis-in-the-us-newspaper-industry/