Newspapers are (Still) in Trouble

According to the Wall Street Journal, newspaper companies are scaling back advertising expectations because things got worse in the second quarter than they thought it would. Analysts also expect that the trend will continue into the third quarter, which would perhaps lead to even more massive layoffs (in June, Gannett cut about 700).

There are a couple reasons why ad dollars slowed so severely:

The key drag on ad results for a number of these companies was a significant pullback by local retailers, which account for more than half of ad revenue at many local papers.

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