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The Problem and A Solution. Where we’re going continues to evolve…

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Presentation on theme: "The Problem and A Solution. Where we’re going continues to evolve…"— Presentation transcript:

1 The Problem and A Solution

2 Where we’re going continues to evolve…

3 …where we start never changes

4 So… what is the problem?

5 “Let’s hope print ad revenues flatten out.” Hope is not a strategy.

6 “Digital ad revenue will save us.” Over the past five years, the newspaper industry has lost $50 of print ad revenue for every $1 of digital ad revenue growth. This doesn’t feel like salvation.


8 Sobering trend

9 Houston we have a problem

10 The Problem It’s not clear that print and digital subscriptions and advertising revenues will be sufficient to continue to support the scale of resources we invest in gathering, publishing and distributing news and information. It is the scale of our news and information resources applied to a local market that provides us our competitive advantage.

11 Therefore, we must find ways to sustain this scale so we sustain our competitive advantage; otherwise, we risk being commoditized. So if necessary, we will cross-subsidize the investment we make in our news resources in order to preserve our scale, which is essential to preserving our competitive advantage and sustaining the strength of our brand.

12 This is our strategy As we go forward, we will succeed to the extent we leverage our brand, along with our core competencies and our infrastructure, to build or buy complimentary businesses that provide us with sustainable revenue growth.

13 So what do we do?

14 This is our solution We have to diversify our sources of revenue. Period. End of statement.

15 Distributions of Revenue

16 Sales Volume: Launch to March 2013

17 Average Value Order (AVO): Launch to March 2013


19 Diversifying Sources of Revenue The decrease in core print ad revenues in the 2013 financial plan are offset dollar for dollar with the planned increases from the new businesses started or purchased in 2012:

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