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Stop the Presses!! – Newsweek is stuck in an old business model

Newsweek has exited it's old business modelStop the presses. I mean literally STOP THE PRESSES.

(I really did mean to yell). That’s what’s going to happen at Newsweek at the end of this year.

That’s right, after nearly 80 years of publication, the news magazine will no longer be printed. It will no longer “go to press”.

Newsweek, under the direction of Editor-in-Cheif Tina Brown has created an exit strategy and will be implementing an exit plan to fully transition the weekly newsmagazine away from a printed edition to a completely digital solution.

(Read related article)

This is a fantastic example of two things.

A)  Not all exit plans require the closure or sale of a company


B) Businesses get stuck when they don’t re-evaluate their business model in an ever changing global and digital market environment.

How many companies have gone under, disappeared from the business landscape because they did not do either (A) or (B) or both? I’ll tell you – millions of them. It happens every day around the globe. Small, mid-size, Enterprise level, multi-national or even simple mom-an-pop companies get stuck in their business with a business model that does not work or will not work in the future.

The only realistic option they have, taking a page (pun intended) out of the Newsweek playbook, is to have an exit strategy in place and implement it before it is too late.

I don’t know if Newsweek will succeed long term to be a viable digital only news content provider. The field is strewn with competitors who’ve done it better and for much longer. But, I do know that this was a necessary exit from a business model that was not worth the paper it was printed on.




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