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WarrenThe problem has been about 1,300 daily newspapers in the United States. There were 1,700 not that long ago, is that no one except the Wall Street Journal, the New York Times, and now probably the Washington Post, has come up with a digital product that really, in any really significant way, will replace the revenue that is being lost as print newspapers lose both circulation and advertising. And if you look at the communities in which we operate or the communities in which, you name it, other newspapers operate, the community can be prospering. We're in a prosperous. economy presently, and all are losing daily circulation. They're losing Sunday circulation. They're using street, what's called street sales. They're losing home delivered. And I've been surprised that the rate of decline has not moderated in the last five years. We bought all the papers at reasonable prizes, though it is not a great economic consequence to Berkshire. But I would like to see daily newspapers actually, you know, be economically viable because of the importance to society. But I would say that the trends, which I put those circulation figures in there because I think shareholders entitled to look year to year, at what is happening. And it's not only, it's happening to 1,300 newspapers throughout the United States. And it happens in small towns where you would think that the alternative sources of information would not be that good. It happens, it happens every place. And the journal, the Times, and probably the Post have a viable economic model, the Times, and probably the Post have a viable economic model. in the digital world, and probably will continue to shrink, I'm almost certain will continue to shrink in the print world, but the digital world will be big enough and they'll be successful enough so that they have, in my view, a sustainable business model, but it is very difficult to see with the lack of success in terms of important dollars. arising from digital. It's difficult to see how the, how the print product survives over time. And that's, I'm afraid that's true of 1,300 papers in this country. And we'll keep looking to see if there is a way to do it. But you'd have to look at our experience and look at the experience of everyone else's McClatchy newspapers came out the other day. You know, and I think the newspaper, which is very good, you know, fine. cities that they operate in and advertising revenues down something like 17 or 18% in circulation.
[3:37]
WarrenBut it isn't just them. It's everybody in the business. And I wish I had a better answer for you, but I don't. I would say that the economic significance to Berkshire is almost negligible. But the significance to the society, I think, actually is enormous. And, you know, I hope, that we find something, I hope others find something, because we'll copy it. But so far we have not succeeded in that. Charlie?
CharlieWell, the decline was faster than we thought it was going to be. So it was not our finest bit of economic prediction. And I think it's even worse. I think to the extent we miscalculated, we may have done it because we both love newspapers and have considered them so important in our country. These little local newspaper monopolies tended to be owned by people who behaved well and tended to control the politicians. And we're going to miss these newspapers if they disappear.