Posted by Bud on April 27, 2010 at 17:30:11:
Courtesy of the Chicago Tribune:
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Newspapers, paid print circulation down again, seek new story
The latest news is old news in the newspaper business: Paid circulation at the nation’s daily newspapers continued to decline in the six-month period ending in March, according to figures released today by the Arlington Heights-based Audit Bureau of Circulations.
The numbers reflect the impact of the tough economy and increased embrace of technology that’s changing reader habits and publishers’ business models. More content continue to be consumed for free online and in other formats besides traditional daily and Sunday newspapers, many of which now charge more and have scaled back distribution in unprofitable areas.
Industry-wide, average paid weekday circulation fell 8.7 percent in the six-month reporting period compared to the same period a year earlier. On Sundays, the average fell 6.5 percent. Locally, the Chicago Tribune and Chicago Sun-Times were no exception to the downward trend.
Those national figures weren't as bad as the last reporting period, which ended in September, when weekday paid circulation fell 10.62 percent and Sunday circulation was down 7.49. But they’re consistent with the overall trend. For the October-March period that ended in 2009, the industry-wide declines were 7.1 percent weekdays and 5.4 percent on Sundays, despite factors such as interest in President Barack Obama's election.
“The data … should come as no surprise,” John F. Sturm, president and chief executive of the Newspaper Association of America industry group, said in a statement. “While the data indicates the declines are moderating, newspaper companies continue to focus print distribution strategically on core geographies and audience segments while introducing new products for non-subscribers and developing compelling digital products for their growing customer base. Although audited circulation data at a local level remains important to certain types of advertisers – particularly insert advertisers – bottom-line paid circulation data in an aggregated industry level does not tell the whole story about the vitality of the newspaper industry.”
In Chicago, the numbers for the most part were more pronounced. With Chicago Tribune parent Tribune Co. operating under Chapter 11 and Chicago Sun-Times parent Sun-Times Media emerging from bankruptcy protection during the reporting period, both major dailies responded to their revenue crunch with weekday price increases. Also, the election and inauguration of hometown politician Obama led to a more dramatic spike in sales here than many other markets.
The Chicago Tribune, which increased its non-Sunday single-copy price by one-third to $1 on the heels of price increases for home-delivery, suffered a 9.8 percent decline in its paid weekday circulation average compared to the same period a year earlier, slipping to 452,144. On Sundays, the decline was 7.4 percent to 794,351.
The Chicago Sun-Times went through its own non-Sunday price increase from 50 cents to 75 cents last year, and saw a 13.9 percent drop in its weekday paid circulation average to 268,803. Its Sunday circulation fell to just 247,416, a 2.7 percent decline year-to-year.
“Six months ago, the Chicago Sun-Times and Sun-Times Media brands came under new ownership, and since that point in time the company’s owners have made a number of significant, strategic investments across the company to capitalize on opportunities in our local marketplace,” Jeremy L. Halbreich, vice chairman and chief executive of Sun-Times Media, said in a statement. “At the top of our list has been meaningful investment in online and other digital platforms to deliver the news to our readers in the ways they want to get their news, while making our print operations more efficient and profitable. Those electronic initiatives include e-readers like Amazon’s Kindle, as well as investment in a new editorial system that will give us far greater flexibility and capability to update our Web sites and other digital platforms – more news and quicker delivery. We are also working on other programs that will help drive circulation and get our advertisers their desired target audiences.”
Kathleen O’Hara, Chicago Tribune Media Group’s vice president of marketing, said in a statement that the company “knew the numbers would be down, so we committed to evolving the portfolio in responding to customers’ needs and are investing in marketing.”
The Tribune has upped distribution for its free RedEye and Spanish-language Hoy papers, and both the Tribune and Sun-Times have launched opt-in programs through which those who don’t receive home delivery can still receive pre-print advertising packages.
NAA's Sturm sought to stress other research he said showed readership of newspaper content, in print and online, is strong. "Newspaper publishers have honed smarter circulation strategies, shifting their focus toward retaining subscribers that deliver maximum value to advertisers," he said. "Throughout this effort, subscriber churn has fallen even as home delivery and single-copy prices rise, with many major newspaper companies reporting increases in circulation revenue over the last several quarters."
ABC has in recent years been tweaking its reporting rules to reflect changes in the publishing, with the latest adjustments announced last month and effective with the reporting period ending in March of next year.
So total paid and verified circulation from multiple products and platforms connected to a flagship publication all will count in overall figures. Then there will be a number of subcategories from which advertisers, who have 19 representatives on the 36-member ABC board, can decide what matters.
“A newspaper today is much more than a traditional print product,” Merle Davidson, director of media services at J.C. Penney Co. and chairman of the ABC board, said in the announcement of the most recent rule changes. “We now have a roadmap in place to present a myriad of existing and emerging channels to media buyers in a consistent fashion, following industry-established standards, with the full transparency and trust that comes with an ABC audit.”
But Rick Edmonds, who monitors and analyzes developments in the media business for the Poynter Institute, noted in his blog shortly after the changes were announced that another effect will be that "most newspapers are likely to report a higher total than they would have under the old rules -- and are certain to have a number that cannot be easily compared."
So, Edmonds wrote, there won't “be any intelligible way to say whether industry-wide circulation is up or down.”
Sturm said the ABC's modifications “more accurately reflect our medium’s total audience and the broad portfolio of newspaper products available in today’s marketplace.”
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