Oh, what an ugly difference a dozen years can make.
At the beginning of the 21st century, the newspaper business was a happy one, fed by fat profit margins and a lack of competition in most cities. Philadelphia was no different: Yes, it had two major daily papers, but they shared an owner, reached different audiences — and maximized revenue.
What’s happened since then has been brutal. Everybody knows about the bankruptcy, revolving door ownership, and multiple rounds of layoffs that the Inquirer and Daily News — along with their digital cousin, Philly.com — have experienced in recent years. But a new document obtained by Philadelphia magazine shows just how deep the pain went.
The document is called “Interstate General Media: EBITDA Trend – 2000-2012.” (EBITDA stands for “earnings before interest, taxes, depreciation, and amortization” and is one way to measure a company’s profitability.) And it reveals how the finances of Philadelphia’s leading newspapers imploded during that time — a period covering four owners: Knight Ridder, McClatchy, Brian Tierney, and finally the hedge fund owners who brought the newspapers out of bankruptcy. The last two years — that include two different sets of local ownership, one headed by George Norcross, the more recent one by Gerry Lenfest — are not included.
The document reveals: