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10 July 2008 Future on the line for regionalsRegional papers are turning to the net for their future revenue streams, as they haemorrhage advertisers from their print editions amid growing economic uncertainty.
Advertising, traditionally one of the early casualties of an economic slump, is in decline and having a serious knock-on effect on regional newspaper groups, who are forecasting lower profits and suffering tumbling share prices. But regionals are having to deal with more than just the gloomy economic outlook. Consumers are increasingly getting their news online and so advertising is following them by migrating to the net.
Lord Fowler, who chairs the House of Lords Communications Committee, has warned regional newspapers of precarious times ahead. Johnston Press chairman, Roger Parry, said that the cause of the problem was pretty clear.
But he said that a forward-looking newspaper owner recognised that when this cycle had finished things were going to be different. When advertising did come back, he added, it would come back online. Editorial director of Trinity Mirror's regional division, Neil Benson, said that the group now had more websites than newspapers. He said that the web was now the biggest news medium and that newspapers were more about campaigning and opinion forming.
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