Eric Johnson, Founder and Managing Member of Ironfire Capital throws down and prophesies the end of The Old Gray Lady.
Watch the slideshow. It’s only 10 slides and here are his conclusions:
Newspapers supported by classifieds and ads will likely cease to exist after 2015• The only viable news business models moving forward appear to be:
(1) Financial data subscription (e.g., Bloomberg/ThomsonReuters),
(2) Cable subscription (e.g., Comcast, Disney, CBS),
(3) Costs for digital news getting spread across page views of larger Internet company (e.g., Yahoo!) or
(4) Copycat blogging supported by banner ads (e.g., Huffington Post)
Only other possible model is support by a benefactor (e.g., Apple or the Steve Jobs Foundation)
If the New York Times can’t make it alone, why would any other smaller newspaper?
Investigative reporting will become even more invisible than it is today in the coming years.
I can’t argue with his points, but who knows what will happen in the next three years? I’m thinking that the printed version will still be here, more expensive, more thinner and less available on newsstands than it is now.