'Groupon Is Going to Destroy the Newspaper Coupon Business'

Serious news rarely pays for itself. Even in the heyday of newspapers, publishers used classifieds, coupons and advertising from the car and house sections to cover the cost of reporting the world from City Hall to Sydney. But today, you don't need the Washington Post to learn about apartments, deals and cars. Instead, you go straight to websites like Craigslist, Living Social and Carmax. "The Internet has been one giant system for stripping away such cross-subsidies," James Fallows once wrote, by letting "users find the one article they are looking for, rather than making them buy the entire paper that paid the reporter."

That's why the rise of Groupon is more bad news for print newspapers. Online coupon sites take out yet another leg that historically held up print journalism:

Gilbert said emerging competitors, such as Groupon, threaten to do a lot more damage to newspapers, much like Craigslist all but evaporated the industry's classified ad base.

"Groupon is going to destroy the newspaper coupon business," he said.

Read the full story at News and Tech.

Presented by

Derek Thompson is a senior editor at The Atlantic, where he writes about economics, labor markets, and the entertainment business.

Things Not to Say to a Pregnant Woman

You don't have to tell her how big she is. You don't need to touch her belly.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register.

blog comments powered by Disqus

Video

Things Not to Say to a Pregnant Woman

You don't have to tell her how big she is. You don't need to touch her belly.

Video

Maine's Underground Street Art

"Graffiti is the farthest thing from anarchy."

Video

The Joy of Running in a Beautiful Place

A love letter to California's Marin Headlands

Video

'I Didn't Even Know What I Was Going Through'

A 17-year-old describes his struggles with depression.

Video

Google Street View, Transformed Into a Tiny Planet

A 360-degree tour of our world, made entirely from Google's panoramas

Video

The Farmer Who Won't Quit

A filmmaker returns to his hometown to profile the patriarch of a family farm

Video

Riding Unicycles in a Cave

"If you fall down and break your leg, there's no way out."

Video

Carrot: A Pitch-Perfect Satire of Tech

"It's not just a vegetable. It's what a vegetable should be."

More in Business

Just In