The newspaper industry is in critical condition, and CBS CEO Les Moonves makes no bones about it. The media veteran, who helped engineer CBS' $1.8 billion purchase of online media company Cnet Networks Inc. in May, seemed to be gloating, telling an audience at MIXX 2.8, the Interactive Advertising Bureau's annual advertising conference Tuesday, about his company's new direction, which seems to spell only more troubles for the newspaper industry.
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"One of the advantages of the Internet is we're taking money away from the newspapers," Moonves said.
Of course that trend is no grand revelation, as traditional newspaper companies have been struggling for a while trying to figure out how to stem advertising revenue decline caused by competition from the Internet and compounded by the slowing economy.
Trouble in the newspaper industry is across the board.
- Advanced Publishing Corp., owners of the biggest newspaper in New Jersey, The Star-Ledger, threatened to close the paper by next year if it doesn't get concessions from labor.
- McClatchy Co. was downgraded and given a negative outlook by Moody's Investors Service last week.
- And even the venerable Gray Lady, the New York Times Co., is struggling to make a profit. The New York Times said total revenues in August decreased 8.8% compared with the same month a year ago. Meanwhile, the company's Internet advertising revenues increased 10.9% in August.
- Gerald Magpily
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