On May 24, 2009, at 4:25 AM, Eric S. Sande wrote:
I'm not sure paper is going to survive as a delivery vehicle.
Take a look at: http://www.city.ac.uk/journalism/dps/ thurman_myllylahti.pdf "Taking the paper out of news: A case study of Taloussanomat, Europe’s first online-only newspaper"
Getting rid of paper cut their production costs in half. I'm sure that made their IT guys feel smug. But after a few months they discovered that advertising revenues were down by 75%. In other words, for every dollar they saved they lost a dollar and a half in revenue. Not a winning strategy.
As long as newspapers think the solution is cutting back they will be trapped by this simple reality. The more they cut the more will their losses multiply.
Lots of IT guys that don't understand business should be shown the door. That would be a cut back that would make them money.
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