The Economist has a very insightful article on the slackness of newspapers when it comes to making progress with the Internet. It says that the newspapers are either too timid, defensive or high-minded.



It takes the case of the success story of the Norwegian newspaper firm Schibsted and how it gained by moving to the Net from the traditional print. The economist has this to say;

Although Schibsted gives pride of place to its antique machinery, the company is in fact running away from its printed past as fast as it can. Having made a loss five years ago, Schibsted’s activities on the internet contributed 35% of last year’s operating profits.
However, the success story of Schibsted is an exception that is proving the general case with traditional newspapers. As the trends of 2005 show, the sales are declining, so the advertisement revenues.



Jim Chisholm, of iMedia, (A JV consultancy with the newspaper trade association IFRA), predicts a gloomy future for the print media. He says that a quarter of print classified ads will be lost to digital media within 10 years.



Yes, it is definitely going to be that way. No matter how many people vouch for the traditional newspaper, it is never going to be the same again. Already, we are seeing worldwide decline in newspaper circulations that many believe is due to lack of interest in news by the current generation, hectic lifestyle etc., etc. However, that is not the case. More people are looking for news than ever before today, but the medium has shifted from mainstream newspapers to online editions.

The sooner traditional newspaper firms realize this and adapt, the more they increase their chances for survival. Else, it will be too late by the next decade.



Read the Economist feature here.