Friday, February 16, 2007

To Invest or not in Newsrooms

A report to be published in the April issue of the journal of marketing seems to suggest that far from undergoing cost cutting exercises,newsrooms should be investing

"
If you invest more in the newsroom, do you make more money?
The answer is yes. If you lower the amount of money spent in the newsroom, then
pretty soon the news product becomes so bad that you begin to lose money."

According to researcher Esther Thorson

Whilst Murali Mantrala,co researcher claims

By looking at the data, investing in news quality does pay off.It improves
circulation and advertising revenues, which are the bulk of a newspaper's
revenues. Better news quality drives circulation, and circulation drives
advertising revenues,"

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