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FitchRatings Must Be Reading Diggings
FitchRatings, which forecasts economic activity of the world’s major economies, released a report on the United States that predicts the U.S. economy is in for a rough year in 2009 (what a shock!) with GDP declining by 1.2%. Of particular note in the report is the brutal environment surrounding advertising, which Fitch estimates will be under severe pressure throughout the year. Every major media vehicle, including the web, will be negatively impacted. In regard to daily newspapers, the report states (summary provided by the Center For Media Research):
Newspaper industry revenue growth will be negative for the foreseeable future as both ad pricing and linage will be under pressure within each of the four main components of newspaper companies’ revenue streams. Fitch believes more newspapers and newspaper groups will default, be shut down and be liquidated in 2009 and several cities could go without a daily print newspaper by 2010.
I may have been a year premature in my December ’08 prediction, but Fitch is clearly a year late with its prediction – cities like Detroit have already begun to go without a daily print edition more days of the week than they have one, and many more cities will undoubtedly follow suit in 2009.