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Newspapers in Decline Declining Readership 54% of Americans read a newspaper during the week 62% read on Sundays Declining Variety Number of newspapers has been dropping 1% per year for last 2 decades ~1,400 presently Who Reads Newspapers 18 - 24: 40% on a weekday 25 - 34: 41%
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PowerPoint Slideshow about 'Newspapers in Decline' - Albert_Lan
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Presentation Transcript
Declining Readership
- 54% of Americans read a newspaper during the week
- 62% read on Sundays
Declining Variety
- Number of newspapers has been dropping 1% per year for last 2 decades
- ~1,400 presently
Who Reads Newspapers
- 18 - 24: 40% on a weekday
- 25 - 34: 41%
- 35 - 44: 50%
- 45 - 54: 59%
- 55 - 64: 64%
- 65 + 71%
Education level highly predictive of readership
- 52% college grads
- 24% no high school degree
Declining Circulation
- in last year
- Los Angeles Times, (843,432) 3.79%
- USA Today (2,296,335) 0.59%
- Wall Street Journal (2,083,660) 1.1%
- S F Chronicle (391,681) 16.4%
- NY Times .46%
Profit Margins
Year Knight-Ridder Gannet
2000 20.8 29.2
2001 15.9 25
2002 21.3 30
2003 19.2 29.5
2004 19.4 29.1
- Earnings Before Interest and Taxes (EBIT) divided by sales
Pulitzer Prize Winners
Knight-
Ridder
Gannett
NY Times
Years
1975-1984 15 9 14
1985-1994 29 8 15
1995-2004 8 3 26
Newspaper Profit Margins
- National average is ~23%
- Blue chip average ~12%
- Newspaper Shareholders demand returns in the high 20s
Profit Margins
- Editorial quality versus pleasing stockholders
- More than 2,000 newspaper jobs cut in 2007
- More than 3,000 cut so far in 2008
