If newspapers dropped their print product

Believe a newspaper has revenue of $100 million a year operating on a 15% scope with 60% of its costs and 90% of its revenues tied to stamp. Alan Mutter of Newsosaur runs the math:

“If the concern abandoned print but were able to double its online sales to $20 million, it would displace $14 million in a year, for an operating margin of a contradictory 70%. To break even, the prototypical publication would have to more than triple its sales from the contemporaneous levels. To make a profit of 15%, the company would have to quadruple it sales.”

Which, you could prove, is conceivable. But not anytime soon.

Source: Lost Remote

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