I came across some interesting statistics on where cash operating costs go at a newspaper via the Reuters MediaFile blog as to why the news media in particular has been struggling to profitably adapt to the digital age:
- 14% are devoted to content creation — the primary value creation activity
- 16% relate to advertising sales
- 70% support the print distribution model and corporate functions
That’s a hell of a monkey on their back. The cuts and the radical reinvention need to happen in distribution and corporate functions to make any meaningful difference.
Archived from blog posts I wrote for PR Week