November 18, 2007
Navigating Newspapers to a Brighter Future
By Len Kubas
 Publishers and owners must make one of two choices today that will determine what kind of future their newspapers will have.
One option involves maintaining a familiar course; essentially what's worked in the past: Manage print newspaper operations to maximize operating margins while introducing new digital and online applications. Your author believes that this option is wrong because newspapers' print revenues are declining more rapidly than digital and online revenues are growing. Furthermore, your author believes that newspapers are losing their ability to influence advertising pricing, which further erodes profitable print revenues.
Choosing the second option involves changing behavior: Manage print newspapers for absolute revenue and profit growth instead of for high operating margins. Your author believes that newspaper managers can no longer use declining denominators (circulation, revenue, linage, etc.) to improve their performance ratios – i.e., operating margins and yields, etc. This course requires managers to reinforce the value of newspapers, adopt newer, but proven ways to package, price and sell newspapers, and embrace a new business model that emphasizes winning for both online and print operations.
Transforming newspapers' business model is a behavioral as well as a strategic issue. Tomorrow's successful newspapers will require committed, persuasive leaders as well as the innovative practices that will create real print and online revenue growth.
Len Kubas (len@kubas.com) is President of Kubas Consultants, a firm specializing in newspaper pricing structures, revenue development, and publishing strategies. Len has worked in editorial, circulation, production, advertising, marketing and corporate planning for newspapers. Kubas Consultants helps international newspaper companies implement new publishing and revenue generation strategies. For more information, visit www.kubas.com.
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