Read at Poynter
The media industry is still facing layoffs, closures, and downsizing as outlets continue to struggle with declining audiences and a weak advertising market. The problems that plagued 2023 have not magically disappeared, and January 2024 is seen as a continuation of the previous year. Companies are making cuts to get their budgets in shape for the new year. Overoptimistic estimates of ad and digital circulation revenue are identified as the heart of the problem. Distribution costs are also a major challenge for outlets with print products.
None of the problems that plagued 2023 - which also saw mass layoffs and closures - have magically disappeared. Outlets are still struggling with declining audiences, a weak advertising market, inadequate revenue models, and so forth.
Just advertising is not the only factor contributing to the economic challenges in the media industry. Overoptimistic estimates of ad and digital circulation revenue play a crucial role. In addition, distribution costs are a major challenge for outlets with print products. These costs, whether for delivering newspapers or shipping magazines, can be financially burdensome.
Just advertising, or something else? Angela nails it - overoptimistic estimates of ad and digital circulation revenue are the heart of the problem. But consider a couple more. For those outlets still with print products, distribution costs are a killer - whether throwing papers in your driveway or shipping magazines through t...