Bad News or Good News?

Are newspapers doomed?

Ever since the first newsfeed appeared on the web, the traditional newspaper’s current business model was threatened. If you picked up a newspaper 50 years ago, it was filled with a lot of non-news items: real-estate listings, grocery store coupons, want-ads. Those money-making inserts were bundled with a journalistic product that focused on a defined geographic region.

Distribution was limited by the cost of physically delivering this bundle of paper. Gradually, each area developed into a local monopoly, usually with only one major paper per city. So when the internet arrived with newsfeeds and specialized websites for sports or cars or real-estate or job-listings, the news business was turned upside-down. Since 2000, lots of major papers have failed: the Chicago Tribune, the Minneapolis Star Tribune, the Philadelphia Inquirer, and others.

Journalism is now more competitive than it has been in decades. But its principal product—a finely crafted news story—can be distributed to anyone around the world for almost nothing. The New York Times now competes with the Los Angeles Times and The Guardian for readers, and the Frankfurter Allgemeine has a gorgeous mobile app.

The revenues of the news business aren’t drying up. Those rivers of gold are breaking into myriad streams of targeted ads and web subscriptions. As the poet Ovid said: nothing perishes, but all things change.

Douglas R. Tengdin, CFA

Chief Investment Officer

By | 2014-05-21T09:51:08+00:00 May 21st, 2014|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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