Newspapers: Between a Rock and Extra Expensive Paper
The Newspaper industry can’t seem to catch a break. Amidst a financial crisis and plummeting ad sales and what feels like endless layoffs comes word that newsprint will cost more! Well European newsprint, that is, North American newsprint costs have already risen 33% this year, but the lack of demand (those Internets!) has up till now been offset by exporting to Europe and now it looks like that is about to end.
North American producers have suffered even more from falling demand, as the switch to the internet has taken hold faster there, but they have also been quicker to consolidate and cut capacity…North American Newsprint producers…compensated for drops in domestic demand by exporting to western Europe, Latin America and Asia. But the strengthening dollar and the steep rise in North American newsprint prices have swept away European price advantages.
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