Newspaper Feud Boils Over
(Nov. 11, 2009) It’s not quite akin to Sleeping Beauty, but it’s close.
Once Sam Zell’s Tribune Co. emerges from its year-long Chapter 11 bankruptcy slumber, hopefully in early 2010, the media landscape will have changed rather dramatically.
Apparently Rupert Murdoch wants to rule the newspaper world and he’s making big waves these days.
Rumors are swirling that the Wall Street Journal is now considering a Chicago edition of America’s largest circulation daily newspaper (as measured by the Audit Bureau of Circulation). So far, the WSJ has launched a Northern California version of its daily in print and online (on Thursday, Nov. 5), and plans are afoot for similar ventures in Los Angeles and New York, plus now Chicago.
The effect of such a move, particularly to Tribune, which owns both the Chicago Tribune and the Los Angeles Times, could be detrimental where it matters most – in the advertising revenue department.
While Murdoch alone would be challenging enough, another major competitor, the New York Times, has also ginned up its local strategy, launching a local edition in San Francisco just ahead of the WSJ.
As Tribune emerges from bankruptcy, it will likely shed much of its once-staggering debt load, but now it will be further challenged to make up the revenue numbers if another strong local player is roaming around in its two largest markets.
Potentially, the WSJ’s move could force Tribune to rethink its advertising goals for 2010 and beyond.
