The sickening plunge in newspaper stocks; the human toll

I’m finding it hard to concentrate this morning, so riveted am I by the death spiral of newspaper-related stocks and the carnage in newsrooms.

The day started with a terrible earnings report from Gannett, the largest publishing company. Earnings down 36% on a 14% drop in second quarter newspaper advertising revenue. USA Today ad revenue was down 17%. 

Alan Mutter, my blogging hero, reports that newspaper stocks have lost $4 billion in value since the beginning of the month. That’s his chart at right.

Meanwhile, the bodies stack up, day by day. the Atlanta Journal Constitution reported this morning it will eliminate 8 percent of its employeees, 189 jobs. It will also eliminate its geographically targeted sections, including a Gwinnett County section it has published for 20 years. I remember when it started, with great resolve and fanfare, to beat back a frightening challenge from a New York Times suburban newspaper, the Gwinnett Daily News.

That was a great time for readers, with two formidable competitors fighting for their loyalty with strong, locally-focused news and advertising products. The AJC destroyed the NYT entry. But even with a strong web presence of its own, it can’t compete toe-to-toe with all of the social, economic and technological forces making it more and more difficult for newspapers to prosper.