Cutting print is a money-loser for Times-Picayune, but cutting staff makes changes slightly profitable
The events of the last two weeks show that Times-Picayune readers and employees are fighting-mad at absentee owner Advance Publications for deciding to eliminate their print newspaper four days a week.
Management’s reply, as articulated by Times-Picayune Editor Jim Amoss, has been, sorry, but “we can’t sustain the old business model in the face of irreversible print advertising and readership trends.” That was echoed by Ricky Mathews, president of NOLA Media Group, who wrote Sunday, “Before we faced economic doomsday, we decided to build a new model, a combination of print and online that gives us a chance to achieve a sustainable business and content model.”
So does that mean the savings clearly outweigh the losses in this transition to digital? My math suggests not necessarily, and not right away.
Cutting back on print will cost revenue, too
Let’s assume that the cost of paper, printing and delivery is about 35 percent of The Times-Picayune’s costs (the industry standard). Read more