Today, we’re going global in our ongoing quest. According to an article in Wall Street Journal, newspaper companies in India have lost 45 percent of their value in 2008. Industry watchers are blaming a number of problems including soaring newsprint costs, recession in the United States and Craigslist Bombay.
But wait, there’s a silver lining. No, seriously, there is…
Analysts think that the stocks are oversold. Not having any stocks ourselves, we’re not sure what this means, but the article points to some encouraging numbers. More than 300 million literate Indians don’t subscribe to a newspaper. Advertising makes up 0.4 percent of the country’s gross domestic product, “far below the average of 1 percent for developed countries.” The print industry as a whole will rocket from $3.6 billion last year to $6.8 billion by 2012. It seems to us as though there’s room for growth.
Anand Shah, a media analyst for Angel Booking, sums up the situation: “We believe print has an advantage as the broadcasting space is highly cluttered. Print has a lot of loyalty in India.”