14 DAY TRIAL // Once considered to be a near “sacred” spot, the first page of the famous New York Times newspaper is now opened to commercial ads, despite the fact that it did without them for decades. This concession, which the company management made in front of the economic downturn, goes on to prove the effects that the crisis has on the industry. Adding to that, newspapers are constantly dropping in popularity, as more and more people visit the Internet for news, and stop buying them.
Because of this massive “exodus” to the online environment, advertisers also move their priorities to the World Wide Web, thus leaving the newspapers with very limited options for earning additional revenues. For example, on Monday, the first ad ever to adorn the front page of the New York Times featured a commercial for CBS television at the bottom of the page.
The fact is that the ads in newspapers now cost a lot less than they did a decade ago, which basically translates into the fact that the companies behind the publications win less money. And this is also visible in the case of the New York paper, which recently fired some of its employees, and applied to re-mortgage its luxury Manhattan headquarters. Recent editions were also shorter on the regular number of pages, further emphasizing the struggle that the printed press in currently engaged in with the Internet.
"Newspapers are going through a very difficult transition period now. Circulation is off, advertising is way off. It's changes in people's media habits. The newspaper habit isn't as strong as it used to be," argues Quinnipiac University journalism professor Paul Janensch.
All across the country, major and historic newspapers are sucked down in the economic undertow and some, like The Los Angeles Time, owned by the Tribune company, already declared bankruptcy in December 2008. The New York Times Media Group announced that its advertising revenues fell by more than 21 percent in November 2008, when compared to the same month in 2007.
Most people are convinced that an iconic newspaper, such as this one, will move past the turmoil, but all say that there are still some rough times ahead. The paper already announced plans to borrow in excess of $225 million, against its Manhattan skyscraper, in an attempt to get back on its feet.