2009 was one of the blackest years yet for the newspaper industry in North America and Europe. Despite sustained growth in other emerging markets, newspapers continued to suffer from the decline in print ad revenues and from dwindling circulation numbers. Amidst a flurry of cost cuts, layoffs and closures, several governments have decided to intervene to subsidise the ailing industry. But will this be enough and does government intervention threaten the independence of journalism? Fortunately, the outlook on 2010 look rosier. But as newspapers migrate the Web, how can they ensure successful transition whilst dealing with shrinking budgets?

In depth

Boston Globe's fight for survival : Throughout 2009, staff members at The Boston Globe were engaged in a virulent battle with its management and owner, the New York Times Co., which threatened the papers with closure. The paper lost $50 million in 2008, and was predicted to lose $85 million in 2009. NYT Co. itself posted a first-quarter loss of $74.5 million and already implemented across the board pay cuts. In April, a report by the Globe announced the possible closure of the paper, should the unions fail to agree to a $20 million of savings within one month. Thus began the rocky process of negotiations between the paper's largest union, the newspaper guild and the Globe's owner. Meanwhile Globe's publisher offered ideas to create new revenue streams, including plans to expand hyperlocal sites to increase online advertising revenue. The crisis even prompted John Kerry to hold senate hearings to address the state of the newspaper industry. The final negations between the union and the paper's owner resulted in an action plan which resulted in pay cuts, furloughs and unpaid vacation which amounted to an earnings reduction of approximately 9%, reductions in health and retirement benefits and the elimination of lifetime job guarantees for 170 veteran employees.

Global Trends

Debate over bailouts around the world : Throughout 2009, many governments had to aid struggling newspapers, but the debate varies widely with geography. In South Korea, according to Sah Dong-seck, the Deputy Managing Editor of the Korea Times, the left-wing media are struggling, whereas the right-leaning mainstream media opposed a bailout because they hope to push their liberal competitors out of business. Early 2009, a member of the Korea Press Commission had proposed the creation of a $1.5 billion fund for newspapers by next year. In June, the European Commission warned the Swedish government to decrease its subsidies to newspapers, lest a formal state inquiry should be launched. The order was given following an initial investigation prompted by a series of complains by some who claimed that Sweden's generosity to large newspapers is stifling competition, although the EU has stressed that it has no intention of attacking the country's wider objective of promoting media pluralism. In 2008, the Swedish government increased overall press subsidies by 10%.