Over the past decade, few industries have suffered more than the newspaper industry. However, as shown by the chart below, over the past year shares of Gannett Co Inc (GCI), publisher of the USA Today, and New York Times Co (NYT), publisher of the New York Times, have rallied sharply. Shares of a smaller newspaper company, McClatchy Co (MNI) have not kept pace.
The primary reason for the rally has been, in my opinion, monetization of online content via subscriptions. NYT recently announced that subscription revenue has, for the first time in the company's history, surpassed advertising revenue. Certainly, NYT has proved that pay walls can work...
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