DHL Change In Planes Could Wallop Ohio: But It May Help Slumping Newspaper Industry

WILMINGTON, Ohio (TDB) -- Your local fishwrapper may start delivering fresh fish alongside the traditional print content that some people already find smelly. And it's all because of DHL. As many as 8,000 jobs may be lost in Clinton County and SW Ohio if DHL ends its air-freight express contract with with two carriers based in Wilmington. But a newspaper has seen an opening to generate some revenue as DHL shrinks -- it is going into the next-day parcel delivery service in the Rocky Mountains. It sounds like an idea that might catch on.

The Daily Sentinel of Grand Junction, Col., which is owned by Dayton Daily News corporate parent Cox Enterprises Inc. says it already delivers daily newspapers, so adding packages shouldn't be too difficult. Across the U.S., newspapers are struggling economically as readers and advertisers flee to the Internet. The Daily Sentinel looks like the first to seize an opportunity presented by DHL's shift in business strategy. The newspaper trade journal Editor & Publisher has an account of the foray into a new line of business, and says staff has already been added and more hires are expected.

DHL has ended deliveries on Colorado's Western Slope, an area that includes Vail and Aspen. Daily Sentinel Publisher Alex Taylor explains:

"We have one of the most sophisticated on-time, early-delivery networks. It makes sense to let our business partners benefit from that . . . It's one of the things we do best. Sometimes when it's snowing or there's an ice storm, you may not get your mail, but you'll always get your newspaper. If people want to pay us to carry other things, too, there's no reason we shouldn't."

Cincinnati Enquirer Parent Gannett Co. Inc's (GCI) Stock Chart: When Will The Asteroid Strike?

CINCINNATI (TDB) -- The Cincinnati Enquirer has been writing a lot lately about Fifth Third Bank and its problems in a difficult business environment caused by a slow-growth economy. But the Gannett-owned newspaper has been largely silent about the near 50% plunge in its own parent company's stock price over the past year (see table). According to the chart, Gannett has done worse than its peers in the media industry, and worse than the S&P 500. None of that has been widely reported by The Enquirer, a major source of news and information in Ohio -- both online and in print. And the steep reversal in Gannett's value on Wall Street since last June is an indication that the company's business practices and business model are out of step with reality in the 2008 economy -- that it hasn't yet figured out how to compete, grow, or rally when faced with adversity. The Ohioans who depend on the company for news and information and entertainment may find themselves left in the lurch if there are cuts. John Friedman at MarketWatch, a financial news service that operates online and serves the nation's investment community, noted in commentary Thursday that Gannett and the New York Times, another newspaper giant, are both headed down, down, down:

"Meanwhile, Gannett, the publisher of USA Today [along with more than 80 other dailies, including Cincy], said its May ad revenue had dropped 14% from a year ago. Its classified ad figure fell 19% for the month, underscoring the impact of online services."

A link to Friedman's commentary is here, and its speculates the New York Times could become a takeover target as its share price falls. Gannett stock traded for a time at $91 a share in 2004, but was around $24 when the Bellwether checked today around noontime. At that price, the yield on the dividend is near 6.55%, which is better than any bank savings account pays. But how long will it be before the dividend is cut? And how long will it be before Gannett considers selling off its newspaper holdings like the Cincinnati Enquirer?

Why Are Newspapers Dying? Few Listened When The Warning Sounded

CINCINNATI (TDB) -- A cautionary tale appears on the Beacon Journal retirees blogspot that helps explain how the print media failed adapt to new technology. Seems like the news industry wasn't deeply interested in the news that would affect its future.