Newspapers may be dying out even faster than we thought possible, as the numbers we're about to present are not pretty.
Last week, the Newspaper Association of America posted the quarterly financial data of the U.S. newspaper industry. It tracks both print and online revenues for the industry as a whole. But unlike past updates, the NAA did not promote these numbers. When you look at them, it's easy to see why.
In Q2 2009, newspapers made $6.8 billion in print and online revenues. In the same quarter last year, the newspapers made $9.6 billion, a nearly $3 billion difference in the span of a year, or a full 29% from 2008 to 2009.
An Analysis of the Numbers
Before we begin with a full analysis of the numbers, I want to provide you with the NAA's quarterly newspaper ad expenditures spreadsheet as a reference. Here is the embed:
Let's highlight the key numbers:
- In Q2 2006, newspapers made $11.69 billion in print revenue and $666.9 million online , nearly identical to 2005 numbers.
- In Q2 2007, print dropped by 10% and online revenue jumped by 19.3% to reach $10.5 billion and $795 million, respectively.
- In Q2 2008 newspaper losses accelerated: 16% in print and 2.4% online. Newspapers made $8.82 billion in print and $776.5 million online, for a total of $9.6 billion.
- Q2 2009 was simply brutal. Print revenues were $6.16 billion, a drop of 30.15% from Q2 2008, and online revenue dropped by 15.9% to $653 million. You'll notice that newspapers made more money in Q2 2006 online than they did in Q2 2009.
This fall is dramatic, and it signals an accelerated decline for the entire newspaper industry. Estimates for revenue in 2009 are around $27 billion, far short of 2005's record $49.4 billion.
What Can Newspapers Do?
The numbers are dire, but there is still hope, although the window is closing fast. We've discussed this important subject multiple times on Mashable:
1. 12 Things Newspapers Should Do to Survive
2. Newspapers: 5 Ways to Avoid Extinction
3. 10 Ways Newspapers are Using Social Media to Save the Industry
Most of the suggestions revolve around embracing new technology, encouraging innovation, and building community. And all of that is true, as certain newspapers have fared better than other through the downturn.
However, these numbers simply shock us, and it's hard to find a silver lining in any of this. At some point, the freefall will be irreversible, and that point is coming soon. Newspapers have far less time than we thought to turn it around.