Thomas Kostigen writes on MarketWatch
Profit margins, premium-content potential overlooked
"SANTA MONICA, Calif. (MarketWatch)
Newspapers, despite all the commentary and seeming evidence to the contrary, are good buys. They are the biggest purveyors and producers of content, and their profit margins are big. Yes, you read right; it's this last piece of information that is often lost in their business-model critiques.
Newspapers have profit margins that average between 20% and 30%. A report by the Newspaper Association of America points out that those numbers are "a bit less than Microsoft and Dell but higher even than pharmaceuticals."
This is important to remember as people get inundated by the fanfare that the Internet is the future of growth and the slayer of all things print. Online news outlets are mature enough to be called distinct and separate businesses. [...]"
-> make your way to MarketWatch
One more good reason to click this link (quote from the article):
"... If you look at newspapers the old way and forecast, you'll face a grim outlook. But look at the industry another way and newspapers may be worth buying. "
If you are not in the business of buying newspapers, but want to make or need to make your newspaper business more profitable, this is still a good read!
via Jim Romenesko