Print and online ad revenues plunge at New York Times Co.

It's no wonder that newspaper companies are finding it hard to transition to a digital business model when online ad revenues are plunging along with their print ad revenues. It's the perfect example of being caught between a rock and a hard place. The New York Times Company reported its third quarter financial results, which showed a $35.6m loss.

Ad revenue at the company's News Media Group, which includes all of its newspapers, fell 29.6 percent compared to the period a year earlier -- essentially unchanged from the 30 percent drop in the first half of the year.
. . . Internet revenue declined 7.2 percent, to $78.9 million. That includes a 7.2 percent increase at the About Group, which includes About.com, and an 18.5 percent decline in digital advertising revenue at the News Media Group.

For the first time, the company's New York Times Media Group (NYTimes and International Herald) revenues from readers exceeded revenues from advertisers: "circulation revenue reached $175.2 million in the third quarter, while ad revenue dropped to $164.5 million."

The company said that there was some sign of an improving economy and that fourth quarter losses should be lower than in the most recent quarter.

Times Co. Reports Loss but Beats Estimates - NYTimes.com

The New York Times Company Reports 2009 Third-Quarter Results