Spied a Technology Review post that pointed in turn to a Business Insider post about the fiscal status of the New York Times. It's bad, very bad. Here's an excerpt:
"At the current rate of cash consumption, assuming no one-time expenses (highly unlikely), we estimate that the company will max out its current borrowing capacity in 4 quarters.
At that point, it will owe about $1.2 billion in debt. This estimate
does not include any payments on the company's $600+ million pension
and benefit obligation, of which $181 million is due next year."
Wow. It's one thing to think in the abstract about the challenging situation for newspapers. But no New York Times? Whose staff just won a bunch of Pulitzers?
Some say the blogosphere will replace the newspaper, but I am doubtful the blogosphere can bring the same focus and coherency as a news organization like the Times.
It's a bit of future shock to think of a world without the TImes.
A good story to follow. Check out the NYTimes "Last Man Standing" strategy:
http://www.nytimes.com/2009/02/09/business/media/09times.html?pagewanted=1
I keep trying to draw the connections between the world of journalism/newspapers and higher education. How many years ago did elite newspapers like the Time's seems as permanent as our elite colleges and universities? Are we subject to the same forces that have hollowed out the business models of the Times?
Posted by: Joshua Kim | April 28, 2009 at 08:37 PM