The good news first. Newspapers are solvent and profitable, often quite profitable on an operating basis. Only a handful went out of business during the great recession. Newspaper companies now are generating enough cash to pay down debt and finance robust exploration of potential new digital revenue streams.
But Edmonds sees at least seven signs of continuing trouble in the near term and a bumpy path to the mythical "new business model."
1. Advertising revenues are still falling.Read more here.
2. Online and other digital growth doesn't take up the slack.
3. Newsprint prices are rising again.
4. Other cost reductions are cycling through.
5. Circulation revenues have gone flat.
6. The "death spiral" cycle continues.
7. Debt continues to be problematic.