"Because of the changes in technology, it's as turbulent a time in media as we've ever seen, particularly for old-line companies," Greenthal said. "And I think we're only at the tip of the iceberg in terms of what it means for the industry."
Having their high-margin classified business "gutted by the Internet" has made it a very hard time for the newspaper industry, Greenthal commented. "They're really having to think about how to change their business models. One of the problems of the industry is that the perception of advertisers of what they're getting from print is not very good. Finding ways to bring advertisers to the high-value content is a major focus for newspapers now."
Among the steps she sees the industry taking are "forming consortiums to drive costs out of the business," she said as the idea of never helping a competitor has fallen by the wayside.
"The industry is now trying to figure out the Internet model and paying a lot of attention to their local sites. But with digital, some people feel like they're trading dollars for pennies," she said.
"I don't think newspapers will go away, but the model is going to have to change -- the way they do business will have to change," Greenthal predicted. "Buying a newspaper is not for the faint of heart. It's either a really great time to buy a newspaper or a really bad time to buy a newspaper. Time will tell." - George White
See earlier posts from 2008 Leadership in Media Forum
Comments
Jill Greenthal, a senior advisor at the Blackstone Group LP, gave her thoughts on the newspaper industry at Argyle's 2008 Leadership in Media forum Wednesday afternoon. 
You have a business with falling rates, dying demographic and there your "content" is being replaced by people who work for free. I see no improvement on the revenue as the readership dies off and little that can be done on the expense side with entrenched unions.