Well some will argue that the growing costs of print is what is killing the newspaper business, but I think it is more a matter of a legacy business model. Newspapers across the country have been doing their best to cut cost and cut down on redundant offerings, but sometimes it just isn’t enough. Unfortunately that is the case for Sun Media as they announced earlier this week cost reductions which will result in the loss of 600 full-time jobs or 10% of the company’s workforce in Western Canada, Ontario and Quebec.
A lot of this just comes down to sheer economics, Sun Media expects this restructuring to result in approximately $14 million, now that’s a lot of Kraft dinner. Now just imagine what can be done with that if the money was shifted towards digital. Publications across the country have been trying to look at new ways to re-coup lost revenues due to a slow down in advertising and the current economic conditions. Many have started to experiment with various social media tools and some have been trying out services such as Twitter in hopes of gaining new readers.
Will it be enough to save the newspaper industry?