For those of us in the editorial photography business, it could be another bad year for the newspaper industry. So predicts Goldman Sachs, who is projecting a 7.9% drop in revenue this year. When newspapers do poorly, photo departments usually take a hit. Key graphs:
The predicted 7.9% drop is especially gloomy as it comes after several years of losses, compounding a 1.8% decline in 2006 and a roughly 8% drop in the first three quarters of 2007 compared to the same period in 2006 (fourth-quarter figures aren’t yet available). As always, the collapse in classifieds leads the way. In a note to clients, GS said: “We expect the classified categories to be very weak with the real estate, help wanted and auto categories particularly sensitive to broader economic activity.” All three categories are also suffering from intense competition from the Internet.
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