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									  “People don’t actually read
 newspapers. They step into
them every morning like a hot
            bath.”

            —Marshall McLuhan
                 Newspapers
• Newspapers are a major source of news for many
  Americans.

• The United States is largely a nation of local and
  regional newspapers, with only three national dailies.

• The most highly regarded U.S. newspaper is The New
  York Times.
• Most U.S. newspapers are owned by conglomerates.

• Most of the leading newspapers in the U.S. are
  metropolitan dailies, which decreased in circulation with
  population and lifestyle changes.

• Television and retailing changes have cut into
  newspaper display advertising, and newspapers may
  lose their dominance as an advertising medium.
    Importance of newspapers
    Newspaper industry dimensions
•   About 1,400 daily papers in the United States

•   52 million copies daily/reach 116 million people each
    day
•   (about 2.2 people read each copy)

•   8,000 weekly newspapers publish 50 million
    copies/200 million people each week
•   (about 4 people read each copy)
            U.S. newspapers
• The newspaper industry is dominated by about ten
  chains, which account for more than half of the 52
  million circulation.

• About 15 of the top 20 newspapers are owned by the
  top ten chains. About 60 of the top 100 newspapers
  are owned by the top ten chains.
• Given rising revenues in the news business, more of
  the smaller chains and family-owned newspapers
  will be acquired.

• In general, circulations are falling as younger people lose
  the newspaper reading habit, but most newspapers are
  now local monopolies, so they can squeeze
  advertisers to reach their remaining readership.
            Newspaper chains
• Gannett
• (7.2 million daily circulation--85 daily newspapers, 39
  weekly newspapers, 37 radio and television stations,
  130 websites, polling organization, billboard
  company)
• * USA TODAY
• * USA WEEKEND
• * USA TODAY Sports Weekly
• * USA TODAY Information Network
• * Des Moines Register, Detroit News
•   Army Times Publishing Company
•   * Army Times
•   * Navy Times
•   * Navy Times Marine Corps
•   * Air Force Times
•   * Federal Times
•   * Defense News
• *    Military Market
•   News Corporation
•   3.1 million circulation
•   9 daily newspapers
•   The Wall Street Journal
•   The New York Post
•   The McClatchy Company (Knight-Ridder)
•   (2.9 million circulation—31 dailies)
•   The News Tribune
•   The Puyallup Herald
•   The Peninsula Gateway
•   Detroit Free Press
•   The Miami Herald
•   The Philadelphia Inquirer
• New York Times Co.
• (1.7 million circulation—26 daily newspapers)
• New York Times

•   Tribune Company
•   (2.8 million daily circulation—11 daily newspapers)
•   * Los Angeles Times
•   * Chicago Tribune
•   * Baltimore Sun
              National Dailies
    Wall Street Journal
•   Focus on business/financial news/earning a living
•   Founded in 1882/1889
•   by Charles Dow and Edward Jones
•   2.1 million circulation
•   News Corp., the largest publisher of English-language
    newspapers, bought the Wall Street Journal,
    previously owned by Dow Jones & Company.
        USA Today
•       Allen Neuharth created 1982
•       Part of Gannett (largest newspaper chain)
•       ―The Nation’s Newspaper‖
•       2.2 million circulation



        Christian Science Monitor
•       Mary Baker Eddy founded
    –     In 1908 in Boston
•       Christian Science Publishing
•       Solution-oriented stories
•       80,000 circulation
•       In April 2009, the Monitor will become the first
        nationally circulated newspaper to replace its daily
        print edition with its website; the 100-year-old news
        organization will also offer subscribers weekly print
        and daily e-mail editions.
      Hometown Newspapers
    Metropolitan dailies
•   New York Times—
    most respected U.S.
    hometown daily. The
    newspaper of record
    was founded in 1851
    by Henry Raymond.
    The Times has a
    national edition but is
    considered a regional
    newspaper. About 1.1
    million circulation
 Newspaper ownership

 The newspaper industry is dominated by
about ten chains, which account for more
   than half of the 52 million circulation.
    Newspaper chain ownership

• Newspapers are very profitable. Smaller chains and
  family-owned newspapers are being bought, or
  newspaper chains are buying other chains.

• Most newspapers are now local monopolies and
  virtually the only source for local advertising.
•   Trend toward chains (160 companies own 4 of every
    5 daily newspapers) yet some private investors are
    purchasing some of the well-known daily newspapers

    Percent of Daily Circulation Belonging to Largest
    Newspaper Groups




                                        Journalism.org.
    Assessing Chain Ownership
•   Journalistic emphasis—New York Times Co.

•   Balanced emphasis—many focus on quality & profit
    (Gannett)

•   Profit emphasis—some target ways to make money
    (Advanced Publishing)

•   Absentee ownership—newspaper owners/editors in
    past lived in area where they worked

•   Transient management—editors/reporters move to
    new newspapers frequently
Challenges for Daily Newspapers
•   Finances—Less income from advertising and
    circulation. Newspapers are cutting expenses to
    offset the loss of revenue.

•   Circulation—younger people are not replacing older
    readers (peak circulation in late 1980s). The Sunday
    editions, which are a substantial source of advertising
    revenue, are declining. Newspaper owners are
    cutting costs to offset circulation slippage.
       Number of U.S. Daily
          Newspapers
Weekday and Sunday editions, yearly increments, 1990-2006
                   (journalism.org)
Newspaper Readership
By age group, 1996-2004
•   Advertising—competition from television, magazines
    and direct mail.

•   Newspapers also face increased competition from
    websites such as Craigslist for classified ads,
    especially for jobs, real estate, and cars.

•   This advertising has long been a key source of
    newspaper revenue. Retail consolidation also has
    resulted in the loss of advertising.
•   Innovations—Sunday and zoned editions, online
    webcasts, blogs, citizen journalists

•   Many news organizations have found ways to link
    advertising messages to their page content, so that
    revenue from Internet advertisers has been able to
    make up the shortfall in subscription and newsrack
    sales.

•   Newspapers also are charging for premium content.
    Online competition
•   Not yet turning a significant profit

•   Newspapers assemble marketing databases by asking
    online users to register to get premium content.

•   Newspapers offering information for free on their
    websites isn’t really harming their business.
    Newspapers can ―print‖ the information without the
    expense of expensive newsprint.

•   They can succeed online, if they can sell advertising
    for the website.
    Cost Cutting
•   Narrower pages to offset high cost of newsprint.
•   Fewer pages, fewer staffers, fewer bureaus, fewer
    editions

•   Clustering—a company owns several papers in one
    area. The newspapers share stories and photographs.
    Multiple newspapers can use the same equipment,
    such as the printing press.
What is not a threat to newspapers? It’s providing
comprehensive local and regional news.
  Newspaper circulation versus
         penetration
• A common measure of a newspaper's health and
  success is market penetration.

• Market penetration is expressed as a percentage of
  households that receive a copy of the newspaper
  against the total number of households in the paper's
  market area.
• In the 1920s, daily U.S. newspapers market penetration
  was 130 percent (meaning the average U.S. household
  received 1.3 newspapers).

• As other media, such as radio and television, began to
  compete with newspapers, and as printing became
  easier and less expensive, there was a greater
  diversity of publications. Market penetration of daily
  newspapers began to decline.
• It wasn't until the early 1970s, however, that market
  penetration dipped below 100 percent.

• By 2000, it was 53 percent. By 2008, it was about 25-30
  percent.
     Newspaper Joint Operating
           Agreements
• The Newspaper Preservation Act of 1970 was created
  to preserve a diversity of editorial opinion and
  independent voice in communities where the market
  no longer supports two competing daily newspapers.

• Editorial operations under a JOA remain separate; all
  other operations (advertising, printing and distribution
  costs) are combined.

• The act was designed to exempt newspapers from
  antitrust laws to allow for the survival of two or more
  daily newspapers in one market.
          Weekly newspapers
  Community weeklies
• These newspapers remain strong in local communities,
  especially fast-growing suburbs.

• Local businesses are continuing to advertise in
  weeklies.

• Rural weeklies are losing circulation. Agriculture news
  is less important now and fewer people are living in rural
  areas and main street businesses are closing.
                 Local content
• Most newspapers have localized news because of a
  decentralized, multilayer government.



• Decentralized: government offices in many areas.

• Multilayer: city, county, state, and federal levels of
  government.
        Alternative newspapers
• These newspapers don’t focus on news of an area, but
  on one general subject.

Counterculture newspapers
• Village Voice was established in 1955. It is
  antiestablishment, focused on music and arts, and
  featured interpretive reporting.
• Seattle Weekly (owned by Village Voice Media)
• 100,000 circulation (free)—began in 1976

• The Stranger (owned by Index Publishing LLC)
• Began in 1991 (free)
• Counterculture newspapers feature:
• extensive personal ads for dating and liaisons.
• extensive entertainment coverage and listing of events.
• antiestablishment political coverage with a strong
  antimilitary slant.
• interpretive coverage that focuses on issues of special
  concern to younger readers.
        Future of newspapers
• Newspapers are focusing on using websites to give
  readers up-to-date information and a variety of
  information, often with more details.

• Reporters are writing blogs about their stories and
  newspapers are inviting citizen journalists to contribute
  information or commentary.

• These websites also feature short video or audio
  clips, or podcasts of stories.
    International newspapers
• Newspapers in many countries have huge circulations.
  The daily circulations of each of Japan’s three daily
  papers are more than 4 million.

• Germany, United Kingdom and India all have high-
  circulation newspapers.

• According to the 2006 National Readership Study, the
  Dainik Jagran is the most-read, local-language (Hindi)
  newspaper, with 21.2 million readers in India.
International editions of U.S. newspapers

• The Wall Street Journal is published in New York, but it
  also publishes Asian and European editions.

• USA TODAY
• The newspaper was among the first newspapers to use
  satellite transmissions to send the final edition of the
  newspaper to multiple locations across the country and
  world for printing and final distribution in those regional
  markets.
• The international edition is printed in Frankfurt, London,
  and Hong Kong. It is available in more than 60 countries
  worldwide.

• The international editions of USA TODAY look similar to
  the U.S. edition.

								
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