The owner of The Press of Atlantic City has little faith in the future of newspaper? According to a recent Politico interview, Warren Buffett; owner of BH Media, says “Newspapers are going to go downhill. Most newspapers, the transition to the internet so far hasn’t worked in digital. The revenues don’t come in.”
Buffett and BH (Berkshire Hathaway) Media owns 32 daily newspapers, including the Press of Atlantic City, Atlantic City Weekly, and a collection of weeklies like The Brigantine Beachcomber, Downbeach Current, etc.
Buffet continues: “There are a couple of exceptions for national newspapers — The Wall Street Journal and The New York Times are in a different category. That doesn’t mean it necessarily works brilliantly for them, but they are a different business than a local newspaper.”
Press of Atlantic City owner: Local newspapers continue to decline at very significant rate.
BH Media Owner Warren Buffett: And even with the economy improving, circulation goes down, advertising goes down, and it goes down in prosperous cities, it goes down in areas that are having urban troubles, it goes down in small towns – that’s what amazes me. A town of 10 or 20,000, where there’s no local TV station obviously, and really there’s nothing on the internet that tells you what’s going on in a town like that, but the circulation just goes down every month. And when circulation goes down, advertising is gonna go down, and what used to be a virtuous circle turns into a vicious circle.
The Playbook Interview: Warren Buffett
The Sage of Omaha didn’t want to talk politics with POLITICO, but he shared his thoughts on the lingering effects of the recession, the media and his reading habits.
Warren Buffet: I still love newspapers! You’re talking to the last guy in the world. Someday you’ll come out and interview me, and you’ll see a guy with a landline phone, reading a print newspaper.”