James Marsh

Newspapers Embrace the Internet

investors should be watching free cash flow growth at newspapers, not clicks or page views. one will quickly realize that despite all the promise of the internet, profits here cannot hope to offset the declining profits elsewhere in the newspaper model. even worse many of the newspapers' new foes online are bringing competition to business segments where the was once none, eroding once high margin businesses (think classfieds). the average newspaper company is only generating 5% or its revenues from the web, yet that have been talking about it since 1997! meanwhile the stocks have gone nowhere over that same period of time. why believe newspaper management now?