Date

Fri - 24.11.2017


circulation revenue

That is the message global media consultants Simon-Kucher & Partners is hoping to send to news publishers, with a report that makes the case for significant increases in newspaper cover prices.

Price hikes are frequently seen as tangible proof of a newspaper’s declining fortunes, a desperate attempt on editors’ parts to combat dwindling revenue. Take for example Jeff Jarvis’s reaction to the NYTimes’s decision to raise the price of its print edition by 25 percent, from $2 per copy to $2.50. Jarvis doubted the viability of such a move, believing that it aimed to “support an outmoded economic model.” Newspapers, he argued, have lost much of their pricing power as online content puts paid to the advertising models that once made newspapers a powerful economic force. Jarvis’s reflections on the impact digital has had on newspaper ad revenue is valid in the main, but his assertion that increasing cover prices is an exercise in futility finds a counter-argument in SKP’s recent study.

Author

Amy Hadfield

Date

2012-09-03 16:07

Back when WAN-IFRA was still FIEJ (the Fédération Internationale des Editeurs de Journaux et Publications), the organisation’s 1962 News Bulletin carried an article that showed that the vast majority of British newspapers relied on advertising, not reader-generated revenue, to cover production and distribution costs. "Quality" newspapers garnered 73 percent of their income from advertising, as opposed to sales and circulation revenue at weekly titles. It is a trend that dates from well before the 1960s and continues to the present day, in both the UK and the United States.

At least, it was a trend that continued until very recently. Now there are growing signs that the tide is at last turning. This week, the New York Times co., publisher of The New York Times, The International Herald Tribune and The Boston Globe released second quarter figures showing that its titles’ circulation-generated revenue was higher than advertising revenue. Although dwindling income from print and digital advertising (which shrank by 6.6 percent and stands at $220 million) undoubtedly contributed to the shift, the Times’ famous paywall and an increase in price for print subscriptions saw circulation revenue at the NYT company’s news titles rise by 8.3 percent, to $233 million.

Author

Amy Hadfield

Date

2012-07-27 16:49

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