The L.A. Times, in what is perhaps a precursor to the problems brewing at other newspapers, has announced a strategy to revamp its editorial profile to lead with online reporting. When you look at the numbers, though, you have to wonder if it’s too little, too late:
MediaPost quoting Editor James O’Shea: “‘In 2004, automotive print advertising at the Los Angeles Times totaled $102 million. And what will it be this year? $55 million.’ While the company made up some of the difference in Web ads, O’Shea said the paper was losing more in print ads than it was recouping online.”
Omigod! The paper lost 46% of its automotive advertising in a single year? How can you change your business model fast enough to make up for that??
Dude, that would be $55M projected for 2007, not actuals in 2005. So the average rate of decline would be 14%. That’s still pretty damned steep, but it’s not the 46% drop you seem to be thinking it is.
Thanks for correcting my math. While the rate of decline may not be as steep as I estimated, a near-halving of revenue over three years is not good news in any business.