If print newspapers and magazine had to rely only on their readers for income, they probably would have suffered the fate of other stagnant services. But they could rely on an additional source of revenue from advertisers who wanted to reach their readers. With the help of this income, they could pay rising wages to writers and editors and still make a healthy profit. Once advertising revenue began to decline, however, the rising costs of producing news and features began to eat away at profit margins. Many of these publications were still profitable, but at lower rates than other businesses. They began to lose stockholders as well as advertisers. Others were no longer profitable at all and could only be kept in business by wealthy benefactors or by wealthy companies that were willing to run them at a loss.
full: http://www.newrepublic.com/article/115798/new-york-magazines-biweekly-move-explained-baumols-law _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
