Monday, December 26, 2011
I changed my mind--I now think newspapers may NOT be doomed
I think I have been well within the conventional wisdom when it came to newspapers lately. All seem to be hurting, and many long time banners have gone belly up, such as the Rocky Mountain News in Denver. The statistics are pretty grim. Ninety Two percent have lost circulation. Over 10,000 newspaper jobs have been lost. Print ad revenue went down by 30%--in 2009 alone. And I do not see the tide turning on the sea change. More people are more connected to instant news for free. So why am I rethinking my position? Simple. Warren Buffet thinks that the newspaper business has a future. Granted, his comment when asked about the shakiness of the current newspaper industry was not a ringing endorsement: "I wouldn't do this if I thought this was doomed to some sort of extinction." But he put his money out to invest, and that's good enough for me.