Mar 27, 2009|
Cut jobs to counter lower adspend
The newspaper industry broadly relies on two sources of revenues -subscription and advertising. The advent of the internet has meant that readers look for news online. However, online subscription revenues have not been able to replace the print subscription that has been lost. Overall, the hold of newspapers on paid subscribers has weakened considerably. Still, when it comes to sensitivity to economic cycles, subscribers as a group tend to be more stable than advertisers.
Most Indian media companies rely on advertising revenue. That explains why they are having a tough time in the economic slowdown. However, they are not alone. As per CNN Money, advertising revenue has declined dramatically for the two iconic American newspapers - The New York Times and The Washington Post. As a result, the papers are resorting to cost cutting and layoffs. The Times will cut the salaries of its non union workers. It has already laid off 100 union workers and has asked the unions to take pay cuts in order to avoid further job cuts. A bunch of other American newspapers have shut down or gone bankrupt.
Ironically, the internet giant Google is also feeling the pinch of the recession. The company will cut around 200 jobs. However, it plans to accommodate them by relocating them within the company. We wonder if such an option would have been given if the company did not have to live up to its reputation as one of the best workplaces in the world. Nonetheless, some observers believe that up to 400 more jobs could be on the line.
Luxury cars on discount
Luxury and discount do not fit. But these are unusual times. As per a leading business daily, high end car makers are offering discounts to clear up inventory and make way for new launches. The Mercedes E-class comes with a discount of Rs 250,000 and interest free finance. A BMV 3 series is available at discounts of up to Rs 400,000. In the parlance of garment retailers, we are witnessing an end of season clearance sale!
More Views on News
Jun 10, 2017
Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.
Aug 19, 2017
Ever heard of Lindy Effect? Find out how you can use it to pick timeless stocks.
Aug 18, 2017
Buying the index now will hardly help make money in stocks even in ten years.
Aug 18, 2017
Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.
Aug 17, 2017
PersonalFN simplifies the mutual fund account statement for you.
More Views on News
Aug 7, 2017
The data tells us quite a different story from the one the government is trying to project.
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 7, 2017
Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407