Monday, October 8, 2007

Newspapers' partnership with Yahoo fades

San Francisco newspaper analyst Alan Mutter (pictured) says on his blog that the partnership Yahoo formed with several newspaper chains including Hearst and MediaNews nearly a year ago produced an impressive one-time infusion of cash for publishers, but revenues probably won't increase much in the second year of the deal. One unnamed executive told Mutter: "We aren’t anywhere near matching the initial gains ... We are struggling and I don’t see how we are going to make it.”

Mutter writes:
    "If this experience proves to be commonplace, it would throw cold water on the idea that hefty, double-digit advances in online sales in the next few years could help Yahoo’s newspaper partners offset an appreciable portion of their declining print revenues."

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