SMRs and AMRs

Tuesday, November 13, 2007

The Daily Show

By KEVIN J. MARTIN
New York Times

IN many towns and cities, the newspaper is an endangered species. At least 300 daily papers have stopped publishing over the past 30 years. Those newspapers that have survived are struggling financially. Newspaper circulation has declined steadily for more than 10 years. Average daily circulation is down 2.6 percent in the last six months alone.

Newspapers have also been hurt by significant cuts in advertising revenue, which accounts for at least 75 percent of their revenue. Their share of the advertising market has fallen every year for the past decade, while online advertising has increased greatly.

At the heart of all of these facts and figures is the undeniable reality that the media marketplace has changed considerably over the last three decades. In 1975, cable television served fewer than 15 percent of television households. Satellite TV did not exist. Today, by contrast, fewer than 15 percent of homes do not subscribe to cable or satellite television. And the Internet as we know it today did not even exist in 1975. Now, nearly one-third of all Americans regularly receive news through the Internet.

If we don’t act to improve the health of the newspaper industry, we will see newspapers wither and die. Without newspapers, we would be less informed about our communities and have fewer outlets for the expression of independent thinking and a diversity of viewpoints. The challenge is to restore the viability of newspapers while preserving the core values of a diversity of voices and a commitment to localism in the media marketplace.

Eighteen months ago, the Federal Communications Commission began a review, ordered by Congress and the courts, of its media ownership rules. After six public hearings, 10 economic studies and hundreds of thousands of comments, the commission should move forward. The commission should modify only one of the four rules under review — the one that bars ownership of both a newspaper and a broadcast TV or radio station in a single market. And the rule should be modified only for the largest markets.

(Continued here.)

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