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Wednesday, May 6, 2009

Ongoing crisis on the Boston Globe

The talks drag on.

The owner of the Boston Globe is still talking with unions to try to save the grand old paper from folding. Staff are being asked to take cuts in pay and pensions, and the owner is being asked to give newspaper jobs some permanency.

The Boston Globe is the latest victim of many blows, most emanating from the internet. First and foremost, is the loss of advertising revenue. Perhaps even more grave, as a BBC correspondent points out, is the situation where readers force papers to post instant "Breaking News" on their websites, yet fail to pay to read the same thing in print next day.

The challenge is to devise a business model that copes with the situation. Until one arrives, losses in both revenue and jobs will mount.

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