From CNN Money
Jeff Bezos, John Henry, and Warren Buffett are not investing in dying businesses. They don’t do that. They are investing in assets poised for a rebound. Despite the recent spate of media last week about the spiraling of newspapers, there are a few facts for industry pundits to consider.
Newspaper media comprised a $38.6 billion industry in 2012. While those revenues saw a 2% decline compared to 2011 revenues ($39.5 billion), we’re also starting to see promising shifts in the newspaper business model: growing revenue streams across several categories — some of which have only emerged in recent years.
Just this past year, circulation revenue rose by 5% — from $10 billion to $10.5 billion — as digital subscriptions grew dramatically, marking the first gain in this category for the newspaper industry since 2003.
Our research has found that what’s driving circulation growth is increasing digital and print-digital bundled subscription rates. And if you take an even closer look, you’ll see these new circulation spikes may bode well for the future of newspapers on the whole. Already newspaper media companies that have innovated in this way have experienced success, with digital-only circulation revenue growing by 275% and revenue from bundled subscriptions seeing a six-fold (499%) increase.