Newspapers swapping high-margin business for low | Blogads

Newspapers swapping high-margin business for low

by henrycopeland
Thursday, October 3rd, 2002

Clark G. Gilbert, protege of disruptive technology guru Clayton Christensen, has been scrutinizing how newpapers operate online. He says, “the most disturbing thing is that newspapers now appear to be focused on replacing their high-margin business of print classifieds with the lower-margin business of online classifieds. If that’s all they’re doing with their online operations, we’d suggest that they shut them down tomorrow. The more important segment to tap is the area of new growth that the Internet has made possible, populated by new customers altogether.”

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