Death of a Newspaper

Capitalism has been referred to as creative destruction, so we’re seeing a lot of “creativity” going on right now. Businesses need to adapt, or they will die.

The latest casualty is the StarTrib newspaper in Minneapolis. As Mark Twain once said, reports of my death have been greatly exaggerated, and the newspaper isn’t dead yet. As a past customer, I can tell you why they are on the ropes. Some of the same reasons are why the network news channels are also having problems.

Let’s start with the big one, the internet. The Internet has become the fast replacement to waiting until the news is in print. I get the Wall Street Journal which is delivered on paper, but I have access to their website through the subscription. I’ll read the news today on the internet, get the paper tomorrow and place it in the recycling bin. We want our news now, not later.

Secondly, advertising has been taking different forms. Again the internet has changed advertising with pay per click, broadcast emails, online catalogs and shopping and e-coupons to mention a few. Newspapers (and magazines) have gotten thinner, saving countless trees due to the variety of advertising available on the internet. Real Estate and Automotive ads, once having their own sections of the newspaper, have moved over 90% to the internet.

The internet surely was the last straw for newspapers, but there were other reasons as well.

The StarTrib, has also been referred to as the Red Star paper, a hint to the political agenda their articles and editorials spoke to. The day in, day out left agenda drum beat frankly turned many reads off, and they voted with their feet and left.

Smaller, local newspapers do well by being active in the communities they are in. The StarTrib became activists in the communities, pushing their view point and creating news to illustrate those points. Readers can get national news anywhere, but they have to go to the local papers to get stories about their hometown, school district, local sports, etc. One also does not have to look hard to have political viewpoints thrust upon then. The political focused agenda and national news format of the StarTrib became out of touch with what their readers wanted. They aren’t alone. The Chicago Tribune, once owner of WGN (Worlds Greatest Newspaper) filed for bankruptcy last year and isn’t looking too “great” these days either.

The geography for the paper was becoming a burden also. As readership dwindled in the city for a variety of reasons, the paper had to reach out to the suburbs where they met competition with local community focused newspapers. The cost of distribution starts to get huge especially as gas prices rose.

For now, the paper will get a chance to re-organize themselves and shed some debt through the bankruptcy filing. Let’s see if they fix the other issues as well.

One doesn’t see any whale oil companies around these days, yet they were a popular business in the 1700’s. Let’s hope that the failure of the newspapers doesn’t become another BAIL OUT candidate for the government to spend our money on. Adapt or die, that’s how creative destruction works.