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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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declining readership
Declining Readership
  • 54% of Americans read a newspaper during the week
  • 62% read on Sundays
declining variety
Declining Variety
  • Number of newspapers has been dropping 1% per year for last 2 decades
  • ~1,400 presently
who reads newspapers
Who Reads Newspapers
  • 18 - 24: 40% on a weekday
  • 25 - 34: 41%
  • 35 - 44: 50%
  • 45 - 54: 59%
  • 55 - 64: 64%
  • 65 + 71%
slide5
Education level highly predictive of readership
  • 52% college grads
  • 24% no high school degree
declining circulation
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
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
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
Newspaper Profit Margins
  • National average is ~23%
  • Blue chip average ~12%
  • Newspaper Shareholders demand returns in the high 20s
profit margins10
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