Another Bit Of Bad News For Old Media
May 6th, 2010
Traditional media took another hit Wednesday with the announcement that Newsweek is on the selling block. According to Newsweek.com (probably a reputable source), the magazine’s owner, The Washington Post Company, plans to sell Newsweek in a “rapid” manner.
Washington Post Co. chairman Donald E. Graham was blunt and honest in his assessment of Newsday’s standing within the company:
“We have reported losses in the tens of millions for the last two years,” Graham said. “Outstanding work by Newsweek’s people has significantly narrowed the losses in the last year and particularly in the last few months. But we do not see a path to continuing profitability under our management.”
Newsweek has a rich, 80-year history. The publication, which has been among the most relevant news magazines in American history, has suffered from its weekly turnaround time in recent years. When the Internet and television started turning the news cycle 24/7, magazines had a hard time staying relevant.
Where Does Newsweek Go From Here?
As of now, it doesn’t appear Newsweek will undergo any changes on the surface. Staff members were encouraged to stay with the publication through the change of ownership and reassured that Newsweek’s redesigned website would bring in increased advertising revenue.
Wired.com makes a great suggestion in a Wednesday blog post. What would happen if Newsweek ditched the traditional media-goes-Online model that hasn’t worked for it (or many other media outlets) in favor of a tablet-only product? Newsweek could potentially channel all of its resources into making a stellar iPad app that goes beyond what competitors such as The New York Times and USA Today currently offer. If Newsweek offered a truly unique experience on the tablet, it might be able to charge a fee and turn a profit.
Why not? At this point, Newsweek doesn’t seem to have much to lose.