Jul 16, 2008

Sunshine and rainbows

"This is a financial crisis for the industry of mammoth proportions. It's worsening by the day. And the vultures are circling."

A reference to Fannie Mae? General Motors?

Actually, its from a cheery piece on the newspaper industry by Mark Potts, who blogs at Recovering Journalist. Skyrocketing debt, falling stock - it sounds like the woes plaguing the mortgage and banking industry. Except the government won't rush in to bail out this industry.

I don't think it will be as bad as Potts forecasts. A few big companies could go upside down because of their massive debt loads, but I don't think the newspaper industry as a whole is on the verge of becoming vulture food.

Still, to balance things out, here is some good news. Or maybe it's bad news, depending on what you think Web traffic is doing to newsrooms.


Guy McCarthy said...

Thanks for the link. I read Potts, who based his piece on numbers and reporting by Alan Mutter at Reflections of a Newsosaur.

If Mutter did the math right, the numbers tell a story readers can interpret for themselves.

Gary Scott said...

I don't doubt the numbers. My only point (which I should have made more articulately) is that the industry, as a whole, is not in the same position as these big, publicly traded companies. Even if they sink, the entire industry isn't going to become road kill.