Warren Buffett, the second richest man in the world and CEO of Berkshire Hathaway (NYSE:BRK.A), doesn't have much faith in the future of print media.
In an interview on CNBC's Nov. 3 "Squawk Box," following the announcement of his purchase of Burlington Northern (NYSE:BNI), Buffett was asked to comment on the future of news media, in particular newspapers and business news by "Squawk Box" co-host Becky Quick. Buffett is optimistic on the future of business news.
"Our system has just gotten started," Buffett said. "I mean, we've had a couple of hundred years of progress, but we have not exhausted our potential in this country. America's about business and business in America, you know have gone to greatness hand and hand. So, you do not need to worry about CNBC 10 or 20 or 30 years from now. Business will always be important to the American public."
But the Oracle of Omaha isn't as optimistic about the future of newspapers. Buffett, the owner of the Buffalo N.Y.'s daily newspaper, the Buffalo News, hit hard times earlier this year. And he's not hopeful for a comeback.
"Newspapers have got a terrible future," Buffett said. "And we own the Buffalo News, as you say and we hope to be the last man standing and I would say we might very well be. But, if you look at the newspaper circulation figures that just got published a couple of days ago - it was just a dramatic decrease."
The cause: Buffett argues it has been digital media and explained to Pennsylvania Gov. Ed Rendell, who was co-hosting "Squawk Box," he is relying on digital media more and more.
"And the truth is, fewer people you know, are going to be reading newspapers a year from now and two years from now," Buffett said. "Now they're going to continue to get information. Everybody loves to get news, but the indispensability of the paper has been diminished. And you know, like the Governor [Ed Rendell], I would get my sports scores, you know he probably read the Philadelphia Inquirer or something in those days and I got them from the Omaha World Herald. But now, I click on at night and I can look at the box score and play-by-play and everything else. So, it's changed."
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The last paragraph says it all
November 4, 2009 - 04:43 ET by shawn228There are only so many ways a Newspaper can report that Michael Jackson has died. Then newspaper and Nightly News program viewerships have much less to with media bias than it has to with competing with the internet and 24 hour news.
FOX news is number 1 easily, however that is only because they are the only one that appeals to conservatives and the actual news portions don't really garner the most attention. Its their opinion programs that inspire a huge following like Hannity and Glen Beck.
"I think we're kindred spirits."~Mr Shy to Sergeant ROCK
one thing that's bad about newsprint leaving
November 4, 2009 - 15:27 ET by UndercoverConservativeThe loss of trusted, uncontrolled and distributed archives. I tried to find some stories regarding the worthless SF D.A. here and found many links to the stories I remembered, links that went to the digital sections of the local newsrags. And the links eventually went nowhere. Other stories of corruption or illegal activities barely mentioned in media, no longer exist.
Who's to say that the few archives that do remain aren't selectively managed to present a certain point of view, inline with the parent media company? Contrary stories simply left out while half truths remain stored for perpetuity? And can we trust these articles to not be edited or "corrected" whenever revisionism is "useful"?
With newspapers you have copies *everywhere* and used to be there was microfiches available all over the place. Hard to edit just a little bit, and everything (including advertisements of the day) were stored in detail for future reference.
Those of us without Lexis/Nexis access are pretty much screwed. And how far do those archives go? Are they centrally located and therefore subject to central manipulation-protected only as long as Media wished them so?
WWW.GS2AC.COM. 2nd Amendment Grass Roots Action in the Bay Area, CA. We're not all "Breakfast Cereal" folks here! :)
Considering the high
November 4, 2009 - 05:58 ET by rockyracoonConsidering the high unemployment abound in the good old US of A, this can't be good news for all the J-School students and recent graduates; being that the source of this story is the Oracle of Omaha.
Facts are like kryptonite to the liberal.
Media
November 4, 2009 - 06:18 ET by Jeff in Miami BeachThe press needs to learn how to add their ads to their web sites. They are doing a very poor job of advertising online and have not learned to make them interactive so people click on their web sites. Even the stars like Drudge do a poor job in making their ads interactive.
This means the News Paper that learns how to do this first is going to be a powerhouse.
If you think medical care is expensive now wait until it is free!
Newspapers: horse and buggy
November 4, 2009 - 07:31 ET by Red JeepInternet: the car.
Newspapers can't compete. Then when they report only some news and ignore other news, plus throw in bias...bye-bye.
Content content content
November 4, 2009 - 10:12 ET by UnsaneInternet: content.
Newspapers: no content.
Content, content, content. Without content in any medium, you die.
I will not buy an Express-News not because of the Internet, but because of the lack of content in the newspaper.
To wit, there are many small-town newspapers that are holding their own. How? Content. Many small-town newspapers have decided to dispense with national news, for instance, and focus exclusively on local issues. When this is done, they tend to meet with success.
I see newspapers the same was as AM radio in the 1980s. AM radio was dying for a time. People found AM stations lousy for music and instead were listening to FM stations. No room for AM stations, right? Well, along came people like Rush Limbaugh who saw the possibilities of AM continuing in a talk-radio format. AM signals may be terrible for music when compared to FM, but it works great for talk radio formats. Once again, a case where content saved a medium.
Everyone loves to blame the Internet for the decline of newspapers. But newspapers have been on the decline for decades, long before the Internet came along. (The San Antonio Light, for instance, folded in 1993, before the Internet was intruduced to a wide spectrum of people. Why? Content, or the complete lack thereof.) I won't deny that the Internet is a factor, but to exclusively blame the demise of the newspaper on the Internet is not wise. If newspapers had content, they will survive, in a smaller form to be sure, but they will do fine, even with the Internet. (Note that the Wall Street Journal posted the smallest decline of the major newspapers in America, due to its content, I suspect.) But until they do something, anything, about their dreadful content...
"CONSUMED DEMOCRACY RETURNS A SOCIALIST REGIME" - Slayer, "Fictional Reality", from Divine Intervention (1994)
Time Delay, Time Delay, Time Delay
November 4, 2009 - 10:17 ET by shawn228Unsane, unless the paper caters to a niche market like the Wall Street Journal, why do I want to buy a Newspaper that has old news and find my news on the internet or a 24 hour news channel? It makes no sense to me to buy a newspaper except for the Sunday paper to see football game previews and get coupons.
"I think we're kindred spirits."~Mr Shy to Sergeant ROCK
Content, Content, Content
November 4, 2009 - 12:33 ET by UnsaneGetting news fast is fine. Getting news fast isn't always good, though. But analysis is also good, which is why i still subscribe to The Economist, among other reasons.
Here is where newspapers can come in: providing not only the news, but also some analysis, and commentary from all points of the spectrum.
It makes no sense to me to buy a newspaper except for the Sunday paper to see football game previews and get coupons. Why do you even bother with that? You have already stated you want your news NOW NOW NOW NOW NOW NOW NOW. You mean you actually read a newspaper for football game previews and eschew ESPN, Fox, and CBS's analysis, to say nothing of the NFL Network and NFL.com?
You mean to tell me you read a newspaper based on CONTENT?????
"CONSUMED DEMOCRACY RETURNS A SOCIALIST REGIME" - Slayer, "Fictional Reality", from Divine Intervention (1994)
I like newspapers
November 4, 2009 - 19:01 ET by Willis_Leon_JohnsonWe go out for Brunch on Sunday Mornings and on leaving, take the coupon sections with us.
http://gjresult.com
You mean you actually read a newspaper for football game preview
November 4, 2009 - 23:32 ET by shawn228"You mean you actually read a newspaper for football game previews and eschew ESPN, Fox, and CBS's analysis, to say nothing of the NFL Network and NFL.com?
Before my mother in law got sick, my family and extended family went out every Sunday for lunch. I bought a paper so I would not have to talk to anyone and I wanted the Black Angus coupon. Wagon Wheel Sampler, 2 Filet Mignon, 2 sides and desert for 37 bucks. Can't beat that.
"I think we're kindred spirits."~Mr Shy to Sergeant ROCK
† I do the same thing Shawn
November 4, 2009 - 23:38 ET by RESTLESS 1It embarrasses the wife no end when I fold it up, put it in the back pocket, and head to the bathroom.
"If the man, with the power, can't keep it under control...some heads are gonna roll." -Judas Priest
FISHWRAPS...
November 4, 2009 - 08:20 ET by danybhoyI can't wait until the America's newspapers are bailed out because they are too big & important to fail, at least in the eyes of the elites. They little more then the buggy-whip industry compaired to the car when held next to the internet.
"...How blind can you be, don't you see...
...that the gambler lost all he does not have..."
Nightwish
It's their paper
November 4, 2009 - 08:32 ET by EddieWalkerI encourage the liberal media to stay on track and continue doing what has worked so well for us. They don't get it, and the public is going to other sources to find the news that they can believe in. I found this site from Drudge, as well as a few other sites that have nothing to do with the media. As long as we can pick and chose where we go to get our information, the sites with the best content and accuracy, are going to be the ones that continue to grow.
HEY WARREN!!!
November 4, 2009 - 10:16 ET by Willis_Leon_JohnsonWhy don't you buy the Times and fire all the union people?
The unions will burn it down in protest.
You collect the insurance.
The taxpayers will bail out the insurance company.
What's another couple of billion bucks for an outcome like that?
http://gjresult.com
As more and more news
November 4, 2009 - 14:06 ET by praet123As more and more news readers turn to online sources it's understandable why their stocks are no buy. But we still have to get the news from somewhere and they go more online and there're less newspapers.
Only financial and stock market printed media are surviving but not for log.
http://www.independe...
→ The Newspaper
November 4, 2009 - 10:30 ET by Cool ArrowA similar event occurred several years back when phone companies laid off Operators en masse.
There just wasn't much need for them anymore. Seems Americans were teachable. They could find their own numbers.
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