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March 13, 2009

Enders: Local newspapers hurt by doing digital too well

By Jon Slattery

Many local publishers are accelerating their decline by ‘doing too much too well’ in terms of digital news provision at the expense of the quality of their newspapers, media analyst Enders has claimed.

Enders made the comment in its response to the Johnston Press results for 2008 which it says “all too eloquently” illustrated accelerating local media advertising decline, with property advertising down 10% in Q1 and 55% in Q4.

It added: “Write-downs have forced Johnston to record losses of £429 million in the year and there is a very real threat that the publisher will breach its borrowing covenants in June 2009, or by the end of the year.”

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