Classified advertising, traditionally 30 to 40 percent of a newspaper’s total revenue, is disappearing in a rush to online sites. “There are a lot of people in the business who think that in the not-too-distant future, the classified share of a paper’s revenue will go to zero,” Cohen said. “Stop right there. In any business, if you lose a third of your revenue, you’re going to be in serious trouble.”posted by chunking express at 12:24 PM on June 1, 2010 [2 favorites]
“If you were starting from scratch, you could never possibly justify this business model,” Hal Varian said, in a variation on a familiar tech-world riff about the print-journalism business. “Grow trees—then grind them up, and truck big rolls of paper down from Canada? Then run them through enormously expensive machinery, hand-deliver them overnight to thousands of doorsteps, and leave more on newsstands, where the surplus is out of date immediately and must be thrown away? Who would say that made sense?”posted by chunking express at 12:40 PM on June 1, 2010 [1 favorite]
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posted by DU at 12:13 PM on June 1, 2010 [6 favorites]