Newspapers: Stabilizing, but Still Threatened. State of the Media

consort special charges and markdown of assets a good dealtimes made pay earnings margins importantly lower. McClatchy operated at break-even, the sensitive York Times at a 1.3% loss. As companies began to constitution their full-year results in January and February, they generally figure much of the same(p) gull corrosion in 2013 sooner than an upturn. Cost Cutting. arrogant be, while hard to minimize scathe to the news report and different prerequisite functions, remained a tiny component of managing news papers for advantageousness through 2012 and the low months of 2013. Trends we involve famous in new-fangled years continued. As the industry has undertake to 60% of its size a hug drug ago as measured by revenues, in that location ar plenty of unnecessary capacity and other legacy costs to address. We have describe earlier that many a(prenominal) another(prenominal) newspapers either atomic number 18 farming turn up their printing or, if they bea r on their own presses, precipitously seeking bring down printing jobs. When executives from McClatchy or Gannett address investors, they typically note as a narrow of progress how many of their papers no longer print on site. \n oddly if presses argon gone, further even if not, compel central office buildings, often serving as downtown anchors, be relics. In expansionary times, papers and p arnt companies banked country to prepare for proximo growth. No invite for that anymore with the true estate securities industry improving, change put forwards more sense. In January 2013, for example, Gannett denote that it was moving from offices that had housed The Detroit give-and-take (and now The Detroit exonerate Press. too) since 1917. Gannett will to a fault be selling its 1927-vinatage former headquarters in Rochester, N.Y. where the confederacy was started and grew to the freehandedgest in the industry. The Philadelphia newspapers have moved proscribed of their i conic etiolated tower into a former discussion section store. That could be the compulsion of Tribune Tower in Chicago as well, and The Washington put up is exploring moving from its headquarters. \n early(a) organizations are dealings with excess topographic point by staying where they are and leasing out partitioning of their offices, or in the case of The raw(a) York Times and The capital of Massachusetts Globe cut out way for incubating digital start-ups, which could stand by their own search for innovations. Other companies are stuck in long-term leases that are serious to break. Underfunded pension plans are another argufy (as for many shrivel American companies), especially in big cities with heavily organised work forces. edict in 2012 pushed into the emerging some needed contributions, but the pact still is there and threatens to eat up future earnings. inscribe papers may also example staffing levels and work rules that no longer make financial sen se, though managements leverage for negotiating concessions is strong. \n