Will 2010 bring more closings? or less?

I created an animated GIF out of a couple of pages of information from the Paper Cuts Out of Print page which rather graphically shows the accelerating pace of newspaper closings from 2007 to this year.

2009 may have been a record year for newspaper closings, but my guess would be that 2010 will be an even worse year for trade magazines. Many are hanging by a thread now, yet I see very little real change going on in the industry. The reason for this may be that so many titles are owned by financial interests that play the game of musical chairs with their properties — so hope springs eternal as owners pray that they can dump their properties for only a modest loss (closing properties, therefore, is not a solution they would prefer since it would lower the overall sales price of their companies — but if the losses are too great then closing is the only way to save their EBITDA based financials).  But this game, of course,  can only be played if there are other financial companies willing to pay inflated prices in order to enter the game.

Comments are closed.