Bailout Unlikely for Struggling Print Media in the U.S.
Yeah, I will believe that when I see it. Why save everyone else and not newspapers?
U.S. newspaper companies will probably get little help from the government after the Federal Trade Commission completes its review of the industry, says a person with knowledge of the agency's plans.
The FTC is reviewing more than a dozen ways that the government could assist newspapers. The agency has held public workshops and is due to publish a report this fall. Its recommendations are likely to exclude subsidies or new taxes to support newspaper companies such as New York Times Co. (NYT) and Washington Post Co. (WPO), said the person, who asked not to be named because the proposals aren't yet finalized.
FTC officials won't back financial aid because Congress is unlikely to approve it, the person told Bloomberg Businessweek.com. The government has faced criticism for bailing out carmakers and banks and is now dealing with a potentially expensive oil spill in the Gulf of Mexico.
"Most everything they suggested is politically untenable," says Jeff Jarvis, director of the interactive program of journalism at City University of New York, referring to proposals presented to the FTC.
PwC's Global Entertainment and Media Outlook for 2010 to 2014 says that online media is set to overtake print media in ad revenue thanks in part to increased penetration of broadband connections in the U.S. The advantage to online advertising, of course, is that we're accustomed to being served ads online everywhere we turn, whereas old school media outlets have yet to truly master the idea of fee-based delivery, a market they had cornered back when folks would actually pay to have a newspaper left on the front door.
So that's Internet 1, Old Media 0.
And since Uncle Sam isn't planning to cut a check any time soon, newspapers better figure out what they're going to do to stay alive or folks like me are going to REALLY make a killing and take all of their market share instead of just a sliver.