The French media company Lagardere is one of the world's giants. In addition to extensive media holdings, it owns a significant share of Airbus' parent EADS, along with other holdings. Forbes reports that
...chief executive Arnaud Lagardere said in an interview with the newspaper Journal du Dimanche,
'We are a magazine company and we will remain one,' he said.
Lagardere also said he sees traditional daily newspapers having little future, with another 10 years before production costs become untenable, while electronic papers will take hold as the internet becomes more widespread and downloads are faster. Lagardere publishes several regional dailies in France.
Last week, Lagardere said its press division had a 19.5 pct drop in first half operating profit amid factors that included lower ad spending at its US auto magazines and falling sales of some men's magazines. It expects a further operating profit decline in the second half. [emphasis added]
Unless I am mistaken Lagadere has a significant interest in newspaper Le Monde, but is more heavily invested in magazine publishing. I find it fascinating that the chief executive sees newspapers as a lost cause. I am not sanguine about magazines, either, but there may be more room for them because immediacy, the primary virtue of the internet, is less important in a weekly or a monthly publication. The ability to page through a large volume of information, along with portability, are significant advantages for magazines compared to the internet.
Blunt talk like this from a major CEO is unusal, to say the least.
Thomas Lifson 9 19 06