New York Times opens front page to ads

[jase]

THE New York Times has joined the growing trend of newspapers around the United States of putting advertisements on its front page.

The first front-page ad in the Times appeared in colour, was bought by CBS and ran horizontally across the bottom of the page.

Ad revenue slid 21 per cent in November, further squeezing the already-strained newspaper publisher, The New York Times Company, with even internet ad revenue slumping as the economy worsened.

Newspaper publishers have conceded that the financial picture for the industry is bleak for some, if not all, of this year, after an industrywide 15 per cent decline in ad sales in 2008. That has forced many companies to retrench through layoffs, end home delivery and share content. They are also looking at additional ways to raise revenue.

The Wall Street Journal, which is owned by News Corporation, adopted front-page ads in September 2006 after other nationally available newspapers such as Gannett’s USA Today made the move.

Like many newspaper publishers, The New York Times Company took advantage of easy credit during better times and now is under pressure as its debt matures. The company has been negotiating with lenders over coming debt payments and plans to borrow less this year.

The company, which boasts a 2.8 million weekday circulation for its newspaper and 4.2 million at weekends, is scrambling to raise cash before a $US400 million ($561 million) facility expires in May.

The New York Times Comoany has announced plans to raise up to $US225 million by borrowing against its Manhattan skyscraper headquarters and is also reported to be looking to sell its stake in the Boston Red Sox baseball club.

The rival Tribune company, owner of the Los Angeles Times, Chicago Tribune and Baltimore Sun, filed for bankruptcy in December.

Additional reporting by AFP

http://www.theaustralian.news.com.au...2-7582,00.html