Submitted: June 7, 2009 - 8:46pm
Last updated: June 7, 2009 - 8:46pm
Unless newspapers can figure out how to reduce their high fixed costs of printing and circulation, their already low credit ratings could fall even farther, Moody's Investors Service warns. Moody's calls it a "structural disconnect" with just 14% of cash operating costs, on average, devoted to content creation, while about 70% of costs are devoted to printing, distribution and corporate functions.