Analysts at Wachovia have projected newspaper advertising revenue will fall 8.2% in 2008. They are calling it a "newspaper ad recession."
Michigan Liberal adds this: "Readerships and ad revenues have continued to decline, while costs have continued to go up. And, not just in terms of things like health care for employees, but also for the basics -- prices for newsprint is expected to give newspaper managers a serious case of sticker shock this year."Senior analyst John Janedis also lowered the ratings on The New York Times Co. and Journal Register Co. from "market perform" to "underperform" and McClatchy from "outperform" to "market perform."
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