Profits at one of the leading US newspapers, the Washington Post, plunged 85 percent in the first quarter-as the newspaper business continues to decline. Daily and Sunday circulations fell more than seven percent. And print advertising revenues fell eight percent. But there was one bright spot-revenues from its website rose eight percent. And as our correspondent Roza Kazan reports from Washington, executives at the paper are paying close attention to Internet publishing and now plan to launch a dedicated online video channel.
The taping of a Washington Post online program - as one of America’s top newspapers gets ready to expand its video content.
It doesn’t look like much at the moment. But the Post’s video director, Andrew Pergam, hopes to launch a dedicated political channel this summer, starting with 30 hours of original programming.
"We are expecting that people will realize that Washington Post is more than just a printed newspaper and a website and a mobile app and iPad app - it is also getting into video in a big way," he said.
The paper already streams online video clips and programs-like its nightly news show called "The Fold."
And with its online publishing revenues rising eight percent in the first quarter - The Washington Post sees display and pre-roll video ads as its best prospects for revenue growth.
He added, "It wouldn’t happen if there wasn’t a profitable business plan here, this wouldn’t happen."
And the Post isn’t alone. As circulation and print advertising revenues drop - newspapers are starting to see the value in combining visual media with their print and online content.
Newspapers such as The New York Times and The Wall Street Journal already have been expanding their video offerings online.
And the Huffington Post website launched a streaming network last summer.
Digital media analyst Lee Brenner believes advances in technology are driving this trend.
Lee Brenner, Hypervocal.com co-founder, said, "Streaming capabilities are much more advanced than they were a year ago so that getting video on a table or a mobile phone or on desktop is so much easier now."
And while those 15 second ads you’re forced to watch may be irritating, they are by far the fastest growing category of online advertising.
With e-Marketer analysts predicting online ad video revenues to reach over four billion dollars this year in the United States - a 41 percent jump over 2012 - streaming video could be the best new source of wealth for struggling newspapers.