No surprise: A new report from Moody’s Investors Service says the outlook for newspapers and magazines “is negative through at least late 2015.”
From the report:
* Publishers’ gains from digital subscriptions will plateau quickly. Digital business is the fastest-growing category for newspaper and magazine publishers, yet growth will be smaller in 2014 and into 2015.
* The recent wave of publishing spin-offs and divestitures sets the stage for further industry consolidation.
* The share of total US newspaper and magazine advertising will decline further as consumer reading habits continue shifting from traditional print, with competition from search engines, social media and digital video.
* Overall, Moody’s sees little evidence that the US newspaper and magazine industry will generate sufficient income from digital subscriber fees, non-print advertising or marketing services over the next year to offset stress on print volumes and pricing.