www.labusinessjournal.com/article.asp?aID=33304255.5231 -
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Published on: 2/8/2009
Last Visited: 2/8/2009
"If we haven't already passed the tipping point where print media no longer makes sense for advertisers, then we're very close to that point," said Sanjay Sood, associate professor of marketing at the UCLA Anderson School of Management.
Sood said daily newspapers like the Los Angeles Times are in the midst of a vicious descending loop.
As advertising revenues fall, newspapers must cut the size of their papers and staffs to bring costs into line.
But that drives away readers, which in turn causes advertisers once again to pull back, perpetuating the cycle.
The recession, he said, is accelerating the downward spiral.