In a talk on print and digital media, Eric Hanson from HP presented an interesting statistic on the decline of the newspaper business. In 1950, newspaper advertising revenue in the U.S. totaled around $20 billion, growing to approximately $60 billion in the year 2000. Unfortunately the year 2000 proved to be a peak, and with the growth of the internet newspaper advertising revenue is now back to $20 billion.
I knew that digital technology had affected the demand for traditional photographic film and related products, but I was unaware how it had affected other sectors of the economy. With relatively high production costs and a decline in revenue of this magnitude, how long can newspapers remain in business?