Consumer Reports forced to make cutbacks as revenue drops

Magazines hit by recession and readers shifting to Internet sources

Stephen Pate, NJN Network, Charlottetown, Prince Edward Island, Canada, July 20, 2009 with story from mediabistro.com

As newspapers, TV stations and magazine fight for falling advertising revenues, the bastion of revenue free consumer reporting is losing subscribers to the Internet. I subscribed to Consumer Reports for decades starting in 1969 but why bother today?

We used them to pick the best cars, appliances, household items and report on the environment. With the numerous sources of information on the Internet, the need for one single source is gone. There are even sites that summarize all consumer reviews including Consumer Reports for free.

The days of paying for any content are coming to an end.

“After threatening to layoff staffers earlier this month if it could not produce $1.8 million in cuts, Consumer Union, the publisher of Consumer Reports, has reached a deal with the union representing its staffers.

The company has reached a tentative agreement with the Newspaper Guild of New York, promising to nix the layoffs if guild members agreed to “give up a 3 percent pay increase scheduled to kick in in January 2010; the company 401(k) match in 2010; and other benefits,” Editor & Publisher reported.

The guild represents 350 researchers, scientists and writers who work for Consumer Union, and the company had threatened to let go 21 of them if they could not find a way to cut costs.” mediabistro.com

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