In today’s Letter From The Editor, Lipsky explains why the paper might close its doors and stop printing after seven years. He writes the paper is “at a crossroads.” It has achieved its goal of becoming well-respected for its editorial side, but so far, has not been able to make a profit. The business side is what will force the paper to shut down.
When we launched this business in October 2001 and began publishing the daily newspaper on April 16, 2002, it was with two goals. There was an editorial — an idealistic — goal of providing an alternative to the New York Times in coverage of New York City, politics, foreign policy, and culture. And there was a financial goal of making a profit. We have always been, and still are, of the view that the paper needs to achieve both goals to be a success.
The paper will cease publication unless it can find more financial backing.
What’s sad is the paper has increased its print advertising revenue, according to Lipsky. Yet it didn’t help.
…the New York Sun one of the few newspapers in America to see substantial increases in print advertising revenues not only last year and the year before but also so far this year. Yet even with those gains, the expense of producing and distributing the paper exceeds our revenues. So the Sun has yet to achieve its financial goal of making a profit.
Why, if those ad revenues were so substantial did they not help? What can stop a paper from going under at this point if they are receiving ad revenue, but the cost of actually making the paper is just too high?