News Release
Newspaper Downsizing May Backfire
Jul 30, 2007 Prasad Naik Stopping the Red Ink: Newspaper Profits Hinge on Investment, Not Cuts UC Davis press release
Newspapers that cut budgets in response to shrinking profits risk triggering a “suicide spiral,” according to a recent study. “The media industry’s recent impulse to slash jobs to cut costs is not only ineffective, it can lead to more red ink,” notes Professor Prasad Naik, who co-authored the study. Read the study online.
