What I thought was particularly interesting was his point that newspapers are still making money (even during this recession).
It's a point I've made on this blog before, but a lot of discussion about the state of the industry seems to be based on the assumption - sometimes explicitly stated - that local papers are not profitable.
That's just factually wrong. Of course, one might still predict that they won't be profitable in the future, but anyone who claims they're not making money now is mistaken.
As Steve also says, the profits are lower than they used to be. Trinity Mirror recorded a profit margin of 17.2 per cent for its regionals in 2008, which is down from 24.5 per cent a year earlier (although still a good profit margin compared to most other industries).
He suggests that the newspaper industry will have to accept that the days of 30 per cent margins are gone for good.