“Like many industries facing extinction through disruptive innovations, the newspaper industry has studied its predicament from within, trying desperately to save a business model that simply cannot be saved, ” according to Terry Heaton’s insightful article. (Yahoo’s TV News in a Postmodern Era). He goes on to critique a more out-of-the box strategy–Yahoo’s consortium of newspapers. He argues that the newspapers are being shortsighted in getting into bed with Yahoo, which is ultimately a competitor and which got the far better half of the deal. Maybe. But the local newspapers don’t have the luxury of waiting around for the silver bullet that will save them from going the way of the typewriter. Losing readers and advertisers in droves, and making far less on their largely lame web properties than they make in print, they have the pressure of quarterly P&Ls. The Yahoo newspaper consortium seems like a sensible step towards managing the inevitable decline of this segment of the industry. When death is on the horizon being shortsighted isn’t such a bad strategy. Whether Heaton is right or wrong depends on whether the locals have a decent chance of coming up with a new business model. What do you think?
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Filed Under: Digital Media, Publishing, Internet-Based, Ad-Supported, Newspaper Publishing, New Business Models