The ratings agency expects newspaper revenue to decline 5% to 6% in 2010 and drop roughly the same amount next year. It slumped 22% last year amid a plunge in advertising activity.
In the short term, aggressive increases in home-delivery prices have boosted newspaper publishers' revenue, Moody's said, while advertising-revenue declines have slowed.
However, "the industry's longer-term secular deterioration is returning to the forefront" as readership continues to erode "as readers embrace free and low-cost content on the web and mobile devices," despite a "slowly growing economy," said Moody's vice president John Puchalla.
Oct 14, 2010
The bad news
Moody's has downgraded its outlook for the newspaper industry to "negative." What does that mean? From Dow Jones: