Given the fact the U.S. economy is officially growing again -- albeit at a snail's pace -- the continuing falloff in print ad revenue doesn't bode well for GCI's future.
That's because no matter what people say about the future of digital, the company's fortunes remain lashed to paper: 47% of GCI's $1.3 billion in Q3 revenue came from print advertising. Throw in circulation revenue, and the figure rises to 68%.
Bottom line: As goes print, so goes the rest of the company.
Related: this spreadsheet shows quarterly year-over-year changes in GCI's revenue by category: from print advertising to broadcasting, going back to Q4 of 2009.
I've been examining these revenue trends for a post I'm considering about the likelihood of another round of furloughs during the first quarter of next year.
ReplyDeletePrint dollars vs digital dimes....an industry disaster....it's all a mess.
ReplyDeleteThank goodness we still have TV stations.
At least Dubow got his big payout. That's all he was every gunning for, and that's what's wrong with corporate America. CEOs are rewarded for making moves that benefit them in the short term ... even if they hurt they company in the long run.
ReplyDeleteBroadcasting has its own issues. If you notice, broadcasting revenue was down 5.9%. They'll pick up in 2012 because it's an election year and an Olympic year. But long-term, traditional broadcasting faces many of the same challenges as print.
ReplyDeleteThe traditional broadcast audience skews old and is being fragmented by digital media. Tivo, Hulu and other such services give people the ability to avoid or at least minimize ads.
TV is definitely healthier than newspapers, but that's not really saying much these days, is it?
Remember when looking at these numbers they are false. They give digital money that is not earned. It is simply a share of the print money. When the sale is the print version.
ReplyDeleteI think you meant "latched", not lashed there, Jim.
ReplyDeleteSigned,
-A proofreader Gannett decided they could do without
Word verification: "bless", hah!
1:54 Thank you.
ReplyDeleteI'm using the transitive verb, which Merriam Webster defines as "to bind with or as if with a line."
Not sure either word yields a viable metaphor.
ReplyDeletenice analysis of the numbers, Jim. No matter what spews from Gracia's mouth, there should be no doubt that the dinosaur is still carrying this company.
ReplyDeleteJim, isn't that ads sold on newspaper websites are counted as "publishing revenue" and not included in the "digital" category? I think it's important to note that when they talk about the growth in digital revenue, it's not the websites we have been working so hard to improve, but things like careerbuilder. in other words the growing part of the company that gannett is always touting actually has nothing to do with journalism.
ReplyDelete8:07 is correct. Of the $592 million in quarterly print advertising, about $99 million was digital, according to my analysis of the earnings statement.
ReplyDeleteIt's important to note that in the statement, Corporate calls this category "publishing" advertising. That's because the category, although dominated by the U.S. newspaper division, also includes other print titles such as healthcare magazines, Army Times and other Government Media, plus other non-newspaper publications.