2004 Annual Report - Alternative Media

The 1990s were very good to the nation's alternative weeklies. Circulation grew rapidly, as did revenues. The member publications in the Association of Alternative Newsweeklies nearly doubled in the 1990s to 123 today.³ Circulation more than doubled, rising from 3 million in 1990 to 7.5 million in 2002.⁴

Growth in Alternative News Weeklies

Association of Alternative Newsweelies Member Publications, 1990 - 2002

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Association of Alternative Newsweeklies unpublished data

While the recession of 2001-2002 hit the papers, it was moderate compared to the economy as whole and was felt in the form of reduction in ad revenues. Circulation was not effected as seriously because these publications are free.

Revenues, which had increased every year since 1992, took a dip in 2001, but began to climb back up in 2002. In 1992, alternative weeklies took in $174 million in revenues. By 1997, that number had more than doubled to $383 million. It peaked in 2000, with revenues of $511 million. Though the numbers dropped sharply in 2001, back to $483 million, they bounced back up to $501 million in 2002.⁵

Revenue of Alternative Weeklies

1992 - 2002

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Association of Alternative Newsweeklies unpublished data

* Based on AAN member figures

Still the weeklies took a big hit in the form of falling national advertising. At the height of this segment's success and growth, national ads - for things like cigarettes and alcohol, accounted for $35 million to $50 million per year.⁶ When the economy fell into recession, those ads dried up almost completely, taking a huge bite from the industry. And that loss in revenue led some of the papers launched during the economic boom to close their doors. In 2002, for example, New Times Inc. folded its Los Angeles New Times. At the same time Village Voice Media closed its Free Times in Cleveland.⁷ But by 2002 the revenue trend was going up again.

Change in Revenue at Alternative Weeklies

Design Your Own Chart

Association of Alternative Newsweeklies unpublished data

* Based on AAN member figures

In terms of economics, the alternative weeklies are arguably the most dynamic of all the media we study. Because of its local nature, grassroots readership and reliance on advertising for most if not all of its revenues, the alternative press is highly flexible. This media sector can more easily add and subtract publications as the market will bear them. But it is also the most likely to lose publications in market dips. As of 2002, circulation was sitting stable as the economy remained sluggish, but if it improves one might expect new alternative papers will again be founded.