Media executives are cautious about newspaper advertising prospects for the rest of the year, predicting continued weakness in ads and uncertainty over the direction of the economy. Speaking at a media conference sponsored by Gannett Co., three executives said they saw no end to the ad slump and a fourth said the downturn has reached its lowest point and ads could pick up in Q3.
Meanwhile, newspapers continue to lay off employees to try and save money. Knight Ridder plans to eliminate 1,700 jobs and The New York Times Co. said it would cut up to 9% of its 14,000 workforce.
Just before the meeting this week, North America’s largest manufacturer of newsprint, Abitibi-Consolidated Inc. said it would cut its price by $25 a metric ton, effective July 1. that’s its second cut in recent months, reversing price increases newsprint manufacturers began in 1999.