Newspaper Could (Should) Crush Groupon

Last week, Groupon's CEO Andrew Mason was fired, writing perhaps the best note as part of the process. Mason's firing was expected given Group's inferior financial performance. Groupon's continued existence along with Living Social's remains baffling because newspapers should have crushed these social coupon sites. Groupon's costs continue to increase more than revenue. It is expensive to maintain a sales and support staff for every market served. As its latest performance shows, though, users appear to suffer from coupon fatigue.

Newspapers offer several advantages. They already possess the necessary staff to sell and support a daily deal site. Newspaper subscriber numbers far out pace Groupon's and Living Social's user numbers for any one market.

For the newspaper, a daily deal site offers a source of revenue beyond the paltry returns from banner advertisements and the disappointing profits from paywalls.

[embedplusvideo height="345" width="565" standard="http://www.youtube.com/v/yV07K7-RuUQ?fs=1" vars="ytid=yV07K7-RuUQ&width=565&height=345&start=&stop=&rs=w&hd=0&autoplay=0&react=1&chapters=&notes=" id="ep3614" /] Smart would have created a daily deal site; dumb is shrinking the product.