How Hedge Funds Took Over America's Struggling Newspaper Industry
ฝัง
- เผยแพร่เมื่อ 10 มิ.ย. 2021
- As Covid-19 ran rampant across the United States in 2020, local newsrooms across the country cut back-even as they covered the biggest story in decades.
As Covid-19 ran rampant across the United States in 2020, local newsrooms across the country cut back-even as they covered the biggest story in decades.
“As far as readers, we saw that skyrocket during the pandemic,” Emma Way, editor at Axios Charlotte, told CNBC. “So at the same time that revenue was falling, readers were spiking. It was kind of this dilemma that I’m sure a lot of news organizations faced.”
Reporters were laid off and furloughed. Some who stayed were offered buyouts.
It was a catastrophic and uncertain time for American newsrooms.
During the pandemic, more than 70 local newsrooms closed across the country. This includes newspapers that have served their communities for decades. Often, these papers are shut with little notice.
But the problem existed long before the pandemic.
Since 2004, about 1,800 U.S. newspapers have closed. Newspapers have struggled to make money with the collapse of print advertising as readership moved online. Then, the digital advertising market quickly became dominated by tech companies like Google and Facebook.
Today, some of the largest newspaper groups in the country -such as Tribune, McClatchy and Media News Group - are owned, controlled by or in debt to hedge funds or private equity groups. In fact, hedge funds and other financial firms control half of the daily newspapers in the United States, according to a recent analysis by the Financial Times.
"As far as readers, we saw that skyrocket during the pandemic," Emma Way, editor at Axios Charlotte, told CNBC. "So at the same time that revenue was falling, readers were spiking. It was kind of this dilemma that I'm sure a lot of news organizations faced."
Reporters were laid off and furloughed. Some who stayed were offered buyouts.
It was a catastrophic and uncertain time for American newsrooms.
During the pandemic, more than 70 local newsrooms closed across the country. This includes newspapers that have served their communities for decades. Often, these papers are shut with little notice.
But the problem existed long before the pandemic.
Since 2004, about 1,800 U.S. newspapers have closed. Newspapers have struggled to make money with the collapse of print advertising as readership moved online. Then, the digital advertising market quickly became dominated by tech companies like Google and Facebook.
Today, some of the largest newspaper groups in the country -such as Tribune, McClatchy and Media News Group - are owned, controlled by or in debt to hedge funds or private equity groups. In fact, hedge funds and other financial firms control half of the daily newspapers in the United States, according to a recent analysis by the Financial Times.
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How Hedge Funds Took Over America's Struggling Newspaper Industry
Even worse when the Corporations monopolize the home broadband and mobile broadband, raises too much issue. Sucks for the rural area.
Does anyone watch cable news anymore? I mean, it’s so slanted right or left that it’s ridiculous.
More left than right in my opinion.
It’s written for 2 year olds
@@mostlysunny582 most definitely. Besides Fox, is there any mainstream right wing outlet?
This is about newspapers, not cable news.
@@duthegee just because the facts favor the left doesn't mean the media is biased in favor of the left.
My Dad retired this year after working at the Newspaper for 47 years the Newspaper building he worked at was sold just recently and now their moving it somewhere else the building was our local newspaper since 1970.
This explains the newspapers siding with the hedge funds during the r/WallStreetBets situation
Woke Capitalism
As the video says, newspapers back in the 1990s had margins of 20%-30%, and now they have margins of single digits to in the teens. Honestly, that's a lot of money for delivering news. I see why hedge funds are interested. The average supermarket including Walmart makes something like 3% while Amazon only makes 1%. Lot of fat in newspapers.
1-5% revenue for an extremely large company like walmart means a lot of revenue. This means that large companies may seem unprofitable but the fact that such low figures can generate up 559 billion dollars (this years revenue) means even small increases in margins can generate hundreds of billions in extra earning for investors. Also because such large companies are relatively stable compared to relatively smaller companies the price per share is a bit more expensive discouraging sudden buyups or sellouts (im using my native countries terms so bear with me).
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They're interested because they are vultures who can own something but make their money betting against it. That's how they almost put GameStop under, they've done it thousands of times to other businesses. It's a risk you take when you become publicly traded, that your shareholders can leverage you out of business.
hello, you can have a personal experience with Jesus, I had, without science fiction or ologra, he is real, in addition to curing me of diseases, I sinro and I perceive his presence, I wouldn't change it for anything, Jesus he is the only way, and eternal life
Im still holding AMC 🚀
Nobody cares
What I worry about is a future with a sort of "Department of Truth" that is owned by businesses but protected but our most basic rights. Oh wait... That's the present. You can't hold these owners accountable because they can't be persecuted.
@@user-qw7ep1so7j you animal come try to steal my money in person.
@@user-qw7ep1so7j no need to call names? Your trying to take the high road while stealing people's money on what's app, while you impose as CNBC. If this was in person you'd have hand cuffs on you and be thrown in the back of a police car.
exactly. Plus what I call the "fake checkers" and big tech
You really set off Jason or someone else did. Still, you nailed it. We live in one of the worst combinations of Brave New World and 1984 possible, with just a splash of Idiocracy thrown in.
@@lilacdoe7945 yes all this is made possible by people's idiocy
I always enjoyed reading the news paper. It had employment ads , apartments , things to buy , deaths and what is happing in your town. The Sunday paper thick so much to look at with my morning coffee. Everything in front of you. Don't get me wrong , cell phone for emergency calls great. Google location and information great.
The first stage of Techno Feudalism is really going full speed.
Here in Germany we pay monthly fees of about 20euros for floating this news and media to keep them neutral......literally every house holds.
Doesn’t mean they’re good.
Pro government- ARD ZDF ..
It's not bad , better than cnn and fox
@HARRY POTTER AND CURSED CHILD you know the German government is right wing right?
Libtard stuff. i have read it.
Blitz Of The Reich je was referring to the press. The German government is barely right wing its center.
I love Newspapers...they are sufficient and bring real news to light....TV News is complete and utter bull because of the "THIS JUST IN" and "Emegency" and I can't care for online because, SUBSCRIPTION OR NOT, you STILL SEE ADS!! They charge as much as Newspapers do AND they don't even need to Print ANYTHING!!! Talk about ruining an age old tradition
Informative video, thanks 👍
34 dollars a month for a local newspaper?
It includes a free ipad.
@@ciscoterres717 oh that's not that bad I guess, if folks wanna support the paper like that is good.
I remember when my local newspaper cost 50 cents
Newspapers were the cellphones of social media back in the days.
My Dad worked in the Newspaper industry for 47 years he just retired this year I can remember him bringing the newspaper home and it was the size of a big book the newspapers back in the 80s and even the 90s were huge in the 80s the Newspaper business was booming.
Piece was well done.
Dear news media. Stop acting like a bunch of Cc, start your own TH-cam channels, and break free from giant conglomerates. Time to get small. If you want to be a news journalist, you go over the viewers are!
@Bee Club Yes yes we all become TH-cam influencers. Exchange analogue dollars for digital dimes. Not sure how that works. The trained journalist who covers the local beat needs to be paid. Or do you subscribe to the patreon business model wherein you’re really held hostage to the non paying readership and g*d forbid you cover something the non paying readership doesn’t like. Just saying. JoM
@@johnofmalta the online subscription model is really tricky, u never know how much will u make no matter how any ppl ru reaching. With the traditional ur at least guaranteed money once u have large audience
"These pretzels are making me thirsty!"
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I subscribe to 2 newspapers both online. Both have very little new news day to day and I find that disappointing. At the same time I do need information to stay current for my job. So I take what I get from those subscriptions then scan a list of other online news and trade journals daily. I really want to drop my subscription to the Tennessean but I’m a little trapped with it for right now.
Maybe if the local paper did provide and increase that local coverage, and did not lecture so much about what they think is right or wrong with local decisions, more people would be more interested in the local paper?
This is an effect of hedge funds and corporations buying these papers. Now the news pushes the agendas of the groups that bought them.
The new journalist are independent creators in the internet
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Heck no internet is a breeding ground for numerous fakeness in sight and bias reporting
Inigo Bantok of course the only way to know the truth is by the “official channel“no argument ,source ,document can be true if it is not in the media
@@evaristegalois8600 you are completely missing the point here, even those “independents” are sponsored by interest groups now, I don’t trust most journals that Put up poor sources or bad studies. Doing your own research and actually reading is the only reliable way.
That being said I do trust somesources like john harris etc because they gained my trust through good information that’s backed up by reliable data
@@delgermuruntsagaankhuu6951 True, the smaller it is the easier it can be bought up and influenced.
What are newspapers?
Thanks
Quality and independant publications do fine. If these large newspapers / media companies don't get enough revenue, maybe their product is not desirable.
r.i.p. mcclatchy
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America needs to regulate the hedge fund industry. They make too much easy money because they have no rules 💵💵💵
The $100 notes at 10:10 has Russian where the serial number should be. It says "Souvenir".
The narrator says newspapers bought into the idea that all news should be free, and that hurt newsrooms. Ironically, newspaper leaders appointed their newsroom leadership to rationalize and embrace new media - not revenue leadership within the newspapers. Newspapers in the early 2000's made the fatal error of allowing the least qualified within the newspaper leadership structure to make a crucial decision; one which they badly messed up. Newsroom executive and tired-minded publishers were to blame here. They mysteriously refused to protect their copyrights.
Hedge funds and private equity firms own everything.
Hedge fund is a single firm or group or firms?
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Nice Video 👍
Im waiting for : How hedgefunds took over CNBC
nah won't happen.
Not likely to happen, CNBC is own by a huge corporation, Comcast.
They are owned by comcast that is owned by hedgies. right?
My local paper was Garbage anyway, so, No Damage.
No. Newspapers are NOT public trusts in the United States.
Until the day that I can go pick up a newspaper for FREE, they will continue to be PRIVATE, for profit corporations.
Pretty ironic coming from a company that gets paid by hedge funds and companies to post anything
I am literally too early.
you are never too late to learn something new
Too early for what?
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I don't want to sound condescending, overly judgemental or a Debbie Downer, but a underreported reason why the newspaper business is in decline is simply because people don't read as much nowadays. Most content and information is consumed via video or visual art.
What's up with the 'pinned at CNBC' scammer? If you see their comments, report them so hopefully they get shutdown.
CHARLOTTE NC STAND UP WE IN THIS BIHH
finally, something that is sustainable through subscription
KEEP BUYING AMC STOCK we own 81 percent of amc
Let's gooooooo 🚀 no wonder FUD is at ATH right now
Ms Abernathy is does a good job of explaining why a local paper cannot be sustained with the scraps of advertising left over by the tech companies. What she misses is that the local school board has a digital newsletter you can subscribe to. The county commissioner has a website I can check, so does the department of health. Sorry, the world has changed. The only professional journalists left will be those working at big organizations or freelancers who are really good at digital work.
I wish newspapers could be like netflix. Pay one subscription... get all the news. I just dont want to pay 10 different subscriptions every month.
My Dad worked at a newspaper for 47 years I can still remember whenever our local paper cost 50 cents.
Anti competition law to Facebook & google
Market Manipulation is real. BAILOUT LOCAL MEDIA! NOT AIRLINERS AND BANKS.
@@financenews__youtubechanne5671 get a job
There can never be a true local reporter model- when our society embraces globalization, UN mandates, and the like. The powers that be set policy. Us peons have no say so in governance, ESPECIALLY local governance! Policy is set by unelected global CEOs. The only thing that matters is that the 1% own EVERYTHING/EVERYONE
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Interesting, informative and worthwhile video. The problems discussed in this video are serious and should be more widely known. Widespread misinformation most often spread on the internet has polluted the populace's minds and has become a problem that could soon bring down America.
Who is surprised by this??? Newspapers are dinosaurs....they went out with powered wigs!!!!!!
I thought Facebook is all about small business 😶
Time to short the papers.
Finally! The much needed clarification video.
GME AMC TO THE MOON
how many newspapers owned by cnbc?
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If you give the customer what he wants, when wants it and however he wants it…he (The Customer) will turn against you and destroy your business. People are not consuming less news they’re paying less for it while complaining how lacking the news is and of course the current vernacular of ‘fake news’ i e how slanted it is. JoM
True, music industry is demolished in the same way
How was conflict of interest not even considered in this video????? News are supposed to be objective and independent
They need those media which can help them heat up the stock market…
And Yeah!! I want LOCAL stuff, not the PRESIDENTIAL/ CONGESS stuff EVERY SINGLE HOUR
How Citadel took over CNBC
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Is anyone gonna GameStop this?
And not this channel??
The Arkansas Democrat Gazette *includes* the iPad for $34/month. Brilliant! If they can include adds without creepy tracking, then this could be a sustainable business.
When u don't change with time u r doomed
Why don't these news people make deals with ecommerce sites so people can get coupon codes if they watch the whole story?
"Served" their communities 🤣
Lets look at things slightly different. Right now you can take a look at Bbc news right away despite living in North America, or Bloomberg if you are living in Europe as oppose to waiting for the news to be delivered next day or two. In addition, quality of journalism in local newspapers can be compared with the worlds best and you can guess what results would be. Thirdly, where is that Greta girl with stop cutting the trees? So no surprise that newspapers are not that popular in paper form as before.
Btw in 1990s when there was no wide spread internet newspapers had 20% profits, now internet is more common, so why would papers make same amount.
Ps. Also cleaner hands via internet
You make good points, but nothing beats old newspaper to help clean paint brushes.
@@ozzierabbit587 well,if you dig a bit further there were times when newspaper was the best toilet paper, cat litter et cetera. True fact, Soviet union sent first satelite into space before mass production of toilet paper, so we are not talking that long ago)
How hedge funds took over CNBC 😂🤣
Hedgehog funds?
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$AMC 🦍🚀💎
Appreciate your comment, W_h_a_t_s_a_p
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GME 🚀 🙌 💎 🚀
Traffickers ❤ this.
When do we get a "How Hedge funds took over CNBC"..?
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They acquired just because it was a good buiseness
Lol no, to control the narrative , power is what they bought
BUY AND HOLD $AMC.
Should do a "How hedgefunds lost $11B in a couple months to some guys with an RH account"
Buy AMC.
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It’s funny I downloaded the App for The Daily Iberian but I’m being kicked off. The Daily Iberian located in New Iberia Louisiana.
Really, from CNBC, this must be a joke. If any network is bought and paid for its CNBC.
Comments below: AMC AMC AMC!
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USA Being America， Why No Small Newspapers Covering Small Business Stories？ Which G7 Assleader Sips Whose Juice。
Capitalism is actually what made this country great and free, please never forget that.
GME AMC
Tom Papa?
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They need to make google and Facebook pay for the news content that they use to drive people to their platforms.
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But Facebook and especially Google help people find the news content.
@@agisler87 yes, by using other people’s content. That’s like saying that Netflix or Amazon shouldn’t have to pay the content creators for the movies and tv shoes they stream on their platforms.
@@tupactargaryen But are they actually using it or linking you to the content?
@@tupactargaryen Where would the news sites be without Google and Facebook? They would have little to no traffic.
I remember Hassan Minhaj made a episode on this
Hedge funds buying up newspapers don't seem dangerous to y'all?
Appreciate your comment, W_h_a_t_s_a_p
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*Bipartisan Support For Wealth Tax SKY HIGH*
$BB to the moon
MSNBC * cough *
You would be a FOOOOOOL to get your news from these papers 🤡
It a loss leader for the funds, just want access to media. its a joke=OPM
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With more fake news
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Nice video!! Very engaging from beginning to end. Nevertheless, businesses and investment are the easiest way to make money irrespective of which party makes it to the oval office.
Depending on one stream of income had never made any millionaire and earning check don't put you on forbes
A lot of people with high IQs are terrible investors because they’ve got terrible temperaments. You need to keep raw, irrational emotion under control
How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case
Investing for today is priceless because tomorrow isn't promised, trading bit-coins, gold, silver and crypto secures a better tomorrow.
It’s not how much money you keep, but how much money you make, how hard it works for you, and how many generations you keep it for
community news， ethnic more exciting。
japanese sensei coming to town。
hongkong TVBreast Starlet Mommy Giving Birth locally。
Seems to be a contradiction: on the one hand "Newspapers must be kept operating at a loss because they are vital to democracy"; but on the other hand, the basic reason they're losing money is because nobody's reading them. What democratic service is performed by publishing news in an obsolete format that no one is reading?
Newspapers previously made a profit because they were relevant. Now they make a loss because they are not relevant.
Anyway, newspapers aren't always an unequivocal good. Throughout history they have usually been a means of exercising political influence for their owners. Several wars have been started by newspapers over the centuries: the American Civil War, World War One, and Italian Fascism which ultimately inspired similar movements in Germany, Japan, Spain and elsewhere.
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Try that in English next time.
AMC to the mooon 🚀
Capitalism, manipulating the stock market emotion
who owns cnbc?
Boo-hoo.
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