From Newspaper Death Watch:
Circulation at the Orange Country Register is off 23% in the past four years. How can any business survive when it’s on a run rate to lose more than half its customers in a decade? The problem is made worse by the fact that the newspaper business model scales down so badly. The Register can’t cut back by 23% on printing or delivery expenses because of the high fixed costs involved. That means that operational expenses must be chopped to a disproportionate degree in order to make up for the shortfall. That comes directly out of the quality of the product, which leads to reader dissatisfaction, which creates bigger circulation declines. This is why the newspaper industry is in a death spiral.
And this, in a nutshell, is why its a race to see if I get to retire out of here or not.
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