NY Times, which announced today that it would be slashing its dividend payments to save some cash for the media giant, has now found another foe in the face of WSJ – which has started to eat its lunch. According to Bloomberg:
Saks Inc., a Times advertiser since 1924, recently chose to promote a new Chanel boutique and made-to-measure men’s suits in the Journal. Owner Rupert Murdoch’s expansion of general news coverage and a new lifestyle magazine are starting to attract wealthy consumers and create ad space for retailers, said Milton Pedraza, chief executive officer of Luxury Institute LLC.
“They certainly have become a significant part of the advertising mix for luxury brands where they were not before,” said Pedraza, whose New York research group tracks the market for the most expensive lines of consumer goods and services. “They’re definitely stealing advertising dollars.”
If the move goes on unchecked, NY Times could potentially starve to death. Any one wants to bet on it ?