Why Are the Traditional Media Companies Losing Money?

Why Are the Traditional Media Companies Losing Money? Why are the traditional media companies losing money? This question has been asked by many media scholars because the current news reports that many traditional media companies face bankruptcy. However, many people do not realize these companies deal with the hard times. If we take newspaper as an example, we can see so many newspapers that are duplicated and published every day and some of them are free which means we can read them without any payment. Still, traditional media companies have many other patterns that can let them make money, such as television, magazine, and radio broadcast. What could be the reasons that cause them to lose money? Why do these companies face this problem? There are three hypotheses may be the reasons that result in the traditional media companies losing money: competition from the new media, reading trend change, and advertising dependence. In the beginning, one possible reason of why the traditional media companies encounter the difficulty may be the competition from the new media form. The competition from it has three patterns, which are production cycle and sale model. The first pattern of competition that the new media form puts a huge pressure to the traditional media companies is the production cycle. The traditional media disseminates messages by newspaper, television, and radio broadcast. However, with the advanced communication technologies, a great many changes happened not only in the transportation scale, form and facility but also in the organization and management of logistics. Traditional media companies’ production cycle cannot meet the pace of social change. The significant differentia that causes them toward to different way is Internet. Because the traditional media form, daily newspaper can only be published once every day, people who only seek events from it, may not keep pace with them since events change over time. In contrast, with the rapid

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