Newspapers swapping high-margin business for low

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.”