Failing Newspapers
The profit margins on gas at gas stations is incredibly slim. For every gallon of gas sold station owners make a few cents. This is why the vast majority of gas stations include convenience stores. Station owners make much more money selling lotto tickets, coffee, and snacks than they do through selling gas. Gas stations have never been in the business of selling gas. That was just the hook to get you into their stores.
Similarly, newspapers have never really been in the business of selling news. The saleable goods in newspapers are not the articles but the advertisements. Newspapers are just another vehicle for delivering ad content. This is as true today as it was 100 years ago. This has always been the business model.
So what happened on the way from print to digital that prevented newspaper owners and publishers from recognizing sooner what sort of business they were in? To be more specific, why did newspapers let some guy named Craig corner the market on classified ads?
Just a thought.
