Axel Springer: Thriving in a Dying Industry - Newspapers!

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While newspapers and print outfits are losing their shirts all around us, the German company Axel Springer recently reported its "highest net income since the company was founded" 62 years ago.

How is this possible?

What are they doing that our friends at the NY Times aren't?

From the NYTimes:

Axel Springer generates 14 percent of its revenue online, more than most American newspapers, even though the markets in which it operates — primarily Germany and Eastern Europe — are less digitally developed than the United States.

One reason, Mr. Döpfner said, is that Axel Springer has dared to compete with itself. Instead of trying to protect existing publications, it acquired or created new ones, some of which distribute the same content to different audiences.

At one newsroom in Berlin, for example, journalists produce content for six publications: the national newspaper Die Welt, its Sunday edition and a tabloid version aimed at younger readers; a local paper called Berliner Morgenpost, and two Web sites.

Though advertising has slumped in Germany, Axel Springer has been able to offset the shortfall by raising the price of publications like Bild, which sells more than three million copies. Now Axel Springer is looking for “undervalued assets” to buy.

Mr. Döpfner said the company would even have a look in the United States “if a meaningful position arises in a significant market.”

OK. So what are newspapers in this country going to do? Stay tuned.

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This page contains a single entry by Christian Sarkar published on April 7, 2009 1:31 AM.

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