Pearson's Lackluster Earnings Foretell Continued Publishing Softness
Hardly alone in their woes, Publishing giant Pearson PLC's latest earnings report nevertheless paints a bleak picture that extends to many other players in the publishing sector. As reported in the Wall Street Journal and other major outlets, it's not just a matter of flagship publications like the Financial Times suffering an 18 percent decline in ad revenues; educational publishing is also hurting, as many major purchases hoped for in the first half of 2003 have been deferred to the Fall, by which time governmental budget cuts in the U.S. and elsewhere may continue to put a major damper on text acquisitions at public schools an universities. Especially in the news sector, publishers are likely going to have to face a harsh reality: ad revenues may be migrating elsewhere permanently, especially into well-targeted electronic media. The time has come for these firms to start rethinking in far more radical terms how to leverage the value of news gathering operations beyond the bounds of traditional print and online presentations if they are to enjoy a profitable ongoing existence.