I was very taken by this short note from Arnon Miskin from media bankers Mitchell Madison. Why won’t newspapers work online? Well, arithmetic, for one:
The newspaper companies have created enormous traffic to their local websites. This week they announced that over half of American web users use newspaper web sites, and that they produce over 3 billion monthly page views. Unfortunately that’s not nearly enough. Even if they were able to sell advertising at slightly over $10 per thousand–a very high average–they would generate only $450 million per year–or about 10% of the cost of running America’s newsrooms
Sure, the newsrooms report bigger numbers for the digital revenue, but that’s the result of wrapping such ad content around their offline classified sales.
Another thoughtful and more micro analysis is undertaken by Alan Mutter here on the chances for SeattlePI.com.