Newspaper Audience - 2006 Annual Report

The losses of the last two years have been most severe at big-city metros, in places like Washington, Los Angeles, Boston, San Francisco and Philadelphia. The top 50 papers in circulation lost 4.1% daily from September to September, according Deutsche Bank Securities, a percentage point worse than the industry average.3

A few of those posting big declines in 2005, notably the Atlanta Journal Constitution and the Boston Globe, had actually recorded gains a year earlier. More often, however, losses were substantial in both years. Over the two years, the Los Angeles Times saw declines of 9.3% daily and 9.8% Sunday. The Washington Post was down 7% daily and 5.8% Sunday.4

There are three notable exceptions to the trend. The three truly national papers have all held close to even in circulation over the last two years, with slightly different factors at work for each. The Wall Street Journal is able to count 300,000 of its 700,000-plus online subscribers as paid subscribers to the newspaper. (The others already are paid subscribers to the print paper). This ruling let WSJ go from 1.8 to 2.1 circ just like that.

The New York Times put the brakes on price increases (a new round had been announced for February 2006) but was still expanding daily delivery availability into new national markets. That covered continuing losses in the New York metro area; circulation in the five boroughs of New York City fell about 19%, from 321,000 to 261,000, since 2001.5 USA Today, with its intricate distribution system in hotels and airports, was able to stay even in 2005. That was accomplished despite a single-copy price increase from 50 to 75 cents, which would typically lead to losses.

The second bright spot is in growth markets like Phoenix or Sarasota and in smaller markets where competition is more muted.The National Newspaper Association, representing 7,000 smaller dailies and weeklies, reported that the number of papers moving from weekly to twice-a-week publication had grown sixfold since 2001, and that a large majority of the publications either had a Web site or planned to start one in 2006.6

A final category of papers with better than average circulation performance included the McClatchy papers, led by the Star Tribune of Minneapolis and the News and Observer of Raleigh, and several Advance papers including the Oregonian, of Portland, and Star-Ledger, of Newark. All are known for commitment to editorial quality and steady investment in their newsrooms. Their success is something, in turn, to watch. If it continues, it may hint that the more frugal and short-term approach of others was, as some critics charged, a self-fulfilling prophecy toward newspaper decline .