The Kamen Report: National Economy Compromising Survival Of Publishing Companies

(Baldwin, N.Y.) - Print and Digital Media Appraiser and Broker Kevin B. Kamen, President/CEO of Kamen & CO. Group Services in New York (www.KamenGroup.com), believes that the continued worsening of the overall US economy at the end of the second quarter of 2009 will have a dire impact on a large amount of already troubled media companies, particularly newspapers and magazines, for the balance of the year.

Kamen said,”The financial numbers are freightening when we examine profit and loss sheets and all we see are significant losses mounting up. Debt is around the publishing industry like never before and profit margins at a vast number of publishing entities have been completely washed away by steady increases in fuel and energy as well as insurance, taxes, health insurance and payroll. We have seen many well branded publications shut down in the past six months and hundreds more could close up shop over the balance of this year if things do not begin to turn around soon. The housing industry has damaged nearly all home and construction guides and severely impacted the classifieds at every single newspaper in the country. Unemployment has been at record highs, thus few jobs are being advertised in the help wanted sections. Heavy circulation losses, a 35% decline in advertising contracts, the failure of the auto industry, combined with rising internet useage all spell trouble for an industry that was struggling for quite some time already,” said Kamen.

He continued, “Now everything in the media trade is coming to a head because publishers and their parent companies were not prepared to deal with this calamity for such an extended period and the business of operating newspapers and magazines efficiently was not an issue that many wanted to face two years back when all the warning signs were flashing that the train wreck was near. The end result will be more closings and forced sales and transactions that will see some titles gobble up smaller competitors.”
 
Kevin B. Kamen, President/CEO
Kamen & Co. Group Services
3009 Grand Blvd.
Baldwin, NY 11510
516-379-2797

For more information please visit www.kamengroup.com