The Financial Crisis and its Impact on Journalism
Foremski's Take: Bloomberg and Thomson Reuters (NYSE: TRI) are directly impacted by the financial crisis. Their journalists are part of the real-time financial information systems that are sold to traders and analysts on Wall Street and elsewhere.
It is not known yet how many seats for the Bloomberg and Thomson Reuters terminals have been lost as a result of the financial crisis but they must be substantial.
Bloomberg's web site reports:
. . . more than 2,300 reporters and editors in 135 bureaus, Bloomberg News publishes more than 5,000 stories on an average day syndicating to over 400 newspapers worldwide, with a combined circulation of 73 million people.
Thomson Reuters has already been cutting journalist jobs as a result of its merger earlier this year. In May it said it wanted to cut 140 editorial jobs out of about 2400. Reuters Media Solutions:
Over 2,400 seasoned Reuters journalists report from 196 bureaus across the globe, bringing you fast, accurate, objective and comprehensive coverage of important international and domestic news in multiple languages.
The impact of the financial crisis on the two organizations is certain to lead to cost cuts in editorial, especially since the editorial side of the business was subsidized by the financial services side of the business.
The financial crisis is just the latest blow to journalism. Analysts have painted a bleak picture for ad supported newspaper and television companies in 2009.
The UK Guardian reports:
'Horror show' year ahead for media firms
The worsening state of the global economy will make 2009 a "horror show" for advertising-dependent newspaper and television companies, with some analysts predicting that businesses may have to wait until 2011 to see positive ad growth.