epilogue

During the boom time in 2006, Hearst Corporation was on a spending spree. It got itself a swanky new glass and steel office space at Manhattan at $500 million, and 20% of Fitch, the financial ratings company, at $600 million. A privately-held, buttoned-up organization, few people will know that it is one of United States’ most diversified media companies. Newpapers, Print, Online, TV, Radio, Production and Real Estate – they do it all.

At one time, not having to report to investors or shareholders was considered as of its main advantages. Today, the company is struggling for survival. Take the fate of the Seattle PI for instance, an esteemed Hearst property is now on the block for sale since January this year. If it can’t find a buyer by March 2009, the print operations of P-I will have to be shut down, putting an abrupt end to it’s 145 years of history.

As corporate spending in advertisements reduces across the board, no doubt it’s Print as well as Online revenues will dip. Since late 2008, print revenues have been diving more steeply than ever before. Online is no different, even The New York Times has been scrambling for online traffic for a good amount of time now. And, according to this eMarketer Report, mainstream newspaper publishing seems to be in a steady decline.

Only time will decide whatever happens to Hearst Corporation. Niche publications and magazines may have some time to play with, but mainstream print newspapers are in crisis.

Publish online, reducing costs by collaboration and contribution seems to be the only sustainable way forward.

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