One of the dirty secret of the newspaper business is that people do not pay for the news.<\/p>\n
People pay a portion of the cost of setting ink to paper, but the remainder of the cost of producing a physical copy, as well as the cost of producing the content is covered by advertising.<\/p>\n
The problem is that the most lucrative part of advertising is the classified. at about $55 for 3 lines, it generates a lot<\/span> of revenue.<\/p>\n Unfortunately, Craigslist is better and cheaper, so newspapers find their classified revenue shrinking.<\/p>\n Additionally, after years of playing the Wall Street game of cutting costs, meaning reporters and in depth stories, and quality in general, their product is less attractive.<\/p>\n In the case of the New York Times<\/span>, this has been further complicated by the fact that they plunked down a huge<\/span> amount of cash for their brand It appears that they are looking at setting up a pay wall around the newspaper to generate the desired revenue<\/a>.<\/p>\nnew narcissistic monument to the New York Times<\/span><\/del> office building, so they find themselves with a cash flow problem.<\/p>\n