Old media continues to learn new-media tricks. USA TODAY parent Gannett (NYSE: GCI ) is acquiring Reviewed.com, a network of product-review websites.
The move may come as a surprise to Gannett shareholders. The publisher recently completed a cost-shaving reorganization at its flagship national newspaper, and most of its 82 local papers have also tightened their belts.
Why is it spending money on a dot-com purchase? Reviewed.com's network of sites attracts 1 million unique monthly visitors, who seek unbiased reviews on the latest camcorders, televisions, and even headphones. Gannett will be able to beef up the consumer tech component of its publications. The publisher will also be able to give its advertisers a growing range of print and online properties to reach larger audiences.
Why digital? Pull up Gannett's latest quarter, and you'll find a company whose digital revenue rose 10% over the previous year's third quarter, but its publishing revenue took a 5% hit.
New York Times (NYSE: NYT ) , Washington Post (NYSE: WPO ) , and any newspaper mogul that wants to survive can't afford to ignore cyberspace. The popularity of e-readers and tablets this holiday season makes the migration from print to digital even more relevant.
Digital doesn't just mean porting printed copy to the web. Gannett's digital properties include online marketer PointRoll and a chunky stake in web-based want-ads giant CareerBuilder. Reviewed.com's sites will fit right in.
There's another reason to invest in incremental traffic. Rumors of a turnaround in the print industry may be overblown. New York Times, McClatchy (NYSE: MNI ) , Belo (NYSE: BLC ) , and Gannett are all expected to post slightly lower revenue and earnings in 2011 than they did in 2010. They may all still be profitable, but it's never too early to begin the reinvention process, just in case circulation and print ad revenue will perpetually dwindle.
Is print dead? Share your ironic support in the digital comment box below.
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