When the Bass brothers from Texas - (think oil money), bought out 40% of the Times Publishing voting stock - St. Petersburg Times that is, they got a scorcher of a bargain and sent the management at the St. Pete Times scurrying around like chicken little - the sky was indeed falling because well heeled interlopers just got a chunk of the company stock from Nelson Poyntners sisters who were looking to cash in, pay their taxes and live the rest of their lives on easy street. The St. Pete Times CEO at the time, Andy Barnes, really fucked up when he was approached by media attorneys who were hired by the sisters to explore the sale of their stock. Barnes and his management cronies gave the sisters an utterly ridiculous low ball figure of less than $5 million dollars for a company whose newspaper operations alone net $40 million dollars in profit in 1988! Hence, the Bass brothers were alerted to this money making opportunity and offered the sisters millions more than Barnes ever did. Bass got the stock and the Times Publishing Company, parent of the St. Petersburg Times got fucked thanks to Andy Barnes' poor judgement and greed. The St. Pete Times eventually got those shares back but paid a heavy price in terms of capital expenditure and management credibility as well as credibility to their once untarnished image of a journalistic organization. The Bass Brothers made a handsome profit and I heard the deal they made to return the stock back to the company also included a means that the company would enrich the Stanford University endowment fund in perpetuity. However, the details of the deal remain sealed as part of their legal agreement and is open to all kinds of speculation as to what really transpired.
Recently the Publisher announced that all employees were to receive a 5% paycut! So you know the company is in deep financial trouble when this tactic is resorted to. The St. Petersburg Times has a reputation in Tampa Bay as the American version of Pravda, the house organ of the liberal left, but the truth of the matter is they are run by hardcore, republican businessman who will do whatever it takes to snatch another dollar from the community they "serve", and put it in the pocketook of their foundation, the Poynter Institute - a convenient tax shelter in which to shield their profits.
Back in 1992, the newspaper carriers attempted to form a union and the hard hand of management hit back so bad, they disbanded the circulation districts run by Times employees and fired the carriers, going instead to independent contractors who then hired delivery agents to home deliver the papers. Again, the Times management got greedy, did not want to aquiesce to fair demands and went to independent contractors in order to slash their payrolls and get a nice tax writeoff from Uncle Sam.
So here it is 20+ years since this transpired and the St. Petersburg Times along with every other newspaper in the country is struggling to stay alive, survive as the boom - boom days of yesteryear will never appear again and they try to make themselves viable and relevant with the emergence of the electronic media storm fueled by a computer chip and the ability of people to self publish a blog to share news, opinions and facts that the printed media is afraid to do, They are in fact the coporately controled media who bow down to advertisers and other money men who have millions at stake while the rest of us try to pay our bills and have a life. The newspapers sold this country out when they quit being journalists and instead became hardnose businessmen who cared for only one thing -PROFIT!!!-The PUBLIC BE DAMNED!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
UTIMCO Raiders: The Bass Brothers
Lee, Ed, Sid, and Robert Bass have been fortunate from early on. It has been estimated that their uncle Sid Richardson, who UT has an auditorium in his name, was worth around $800 million. Following in their father's footsteps, each of the four attended Yale University; Ed and George W. Bush were classmates and friends there. The brothers used their inheritance to acquaint themselves with those in power; they got to know the powerful Richard Rainwater by having him manage their family fortune.
Based out of Forth Worth, they know others from the Metroplex. Tom Hicks proposed in 1998 that UTIMCO invest $20 million in the Bass Brothers Enterprises through the limited partnership of Prime Enterprises II. This wasn't the Bass brothers' first foray into the university setting. In 1991 Lee donated $20 million to his alma mater Yale to revitalize the Western Civilization program. This was the largest single gift in the history of the school, and it was too political for Yale. Bass used the gift as leverage, thinking it gave him a say in the hiring of faculty and the setting of curriculum, where he feared that "multiculturalism" was pushing out the 'classics' in favor "of Toni Morrison and Malcolm X.1" Hence, the largest donation ever made to Yale was basically a way to ensure that the Ivory tower stayed that color. After Lee sought to participate in hiring decisions, Yale gave the money back. To ensure that the family name would not be dragged through the mud, Perry Bass (Yale '37) offered $500 million to the school to release a report saying that his son did nothing wrong. However, Yale President Richard C. Levin turned his back on the deal even at a time when the school needed the money.2
The Bass brothers pumped $210,000 into Bush's gubernatorial campaigns, via their PAC's (Political Action Committees) and their personal donations of roughly $273,000. The billionaire Bass family is Bush's number 5 career patron. As Governor, Bush appointed Lee Bass as Chairman of the Texas Parks and Wildlife Department (TPWD). Amazingly, Bush later received $202,000 from the organization. TPWD made news when it was found to be passing out brochures at park entrances that contained tobacco and alcohol advertisements. TPWD also granted permits for their land that allowed hunters to make money from killing wild deer on Texas lands.
Back in the 1980's, George W. Bush was put on the board of directors at Harken Oil. In 1988, an oil venture to Bahrain was proposed. With Bush Sr. president at the time, the virtually unknown Texas company had beat out huge oil conglomerate Amoco for exclusive rights to exploration, development, transportation, etc. Even though Harken had no international experience and little capital for such a huge venture, Bahraini oil was theirs for the taking. Many thought that Harken was moribund, and without this contract they more than likely would have sunk. Harken got its big contract but couldn't finance it. The Basses then stepped into the picture by volunteering $25 million. Coincidentally, both were on Bush Sr.'s 1988 elite fundraising squad. Bush Sr.'s squad was the model for Bush's "Pioneers," to which Lee Bass belonged. This deal not only kept Bush's company afloat, but it was also a way for Bahrain to kiss up to the President.
So, who wanted to buy Bush's high risk Harken stock?
In 1990, when George W. Bush was on the board of directors at Harken, he was told that the company was going under. He sold over 200,000 shares of Harken stock weeks before the value plummeted. The overall gain was $848,560; roughly $600,000 of this went towards buying a piece of the Texas Rangers. So, who doled out $850k for a company that could potentially go under at any point directly after the sale? A search of company memos returned only one name, and they can't be sure to whom or what it refers- naturally, the name is "Lee."
Bibliography
Lee, Ed, Sid, and Robert Bass have been fortunate from early on. It has been estimated that their uncle Sid Richardson, who UT has an auditorium in his name, was worth around $800 million. Following in their father's footsteps, each of the four attended Yale University; Ed and George W. Bush were classmates and friends there. The brothers used their inheritance to acquaint themselves with those in power; they got to know the powerful Richard Rainwater by having him manage their family fortune.
Based out of Forth Worth, they know others from the Metroplex. Tom Hicks proposed in 1998 that UTIMCO invest $20 million in the Bass Brothers Enterprises through the limited partnership of Prime Enterprises II. This wasn't the Bass brothers' first foray into the university setting. In 1991 Lee donated $20 million to his alma mater Yale to revitalize the Western Civilization program. This was the largest single gift in the history of the school, and it was too political for Yale. Bass used the gift as leverage, thinking it gave him a say in the hiring of faculty and the setting of curriculum, where he feared that "multiculturalism" was pushing out the 'classics' in favor "of Toni Morrison and Malcolm X.1" Hence, the largest donation ever made to Yale was basically a way to ensure that the Ivory tower stayed that color. After Lee sought to participate in hiring decisions, Yale gave the money back. To ensure that the family name would not be dragged through the mud, Perry Bass (Yale '37) offered $500 million to the school to release a report saying that his son did nothing wrong. However, Yale President Richard C. Levin turned his back on the deal even at a time when the school needed the money.2
The Bass brothers pumped $210,000 into Bush's gubernatorial campaigns, via their PAC's (Political Action Committees) and their personal donations of roughly $273,000. The billionaire Bass family is Bush's number 5 career patron. As Governor, Bush appointed Lee Bass as Chairman of the Texas Parks and Wildlife Department (TPWD). Amazingly, Bush later received $202,000 from the organization. TPWD made news when it was found to be passing out brochures at park entrances that contained tobacco and alcohol advertisements. TPWD also granted permits for their land that allowed hunters to make money from killing wild deer on Texas lands.
Back in the 1980's, George W. Bush was put on the board of directors at Harken Oil. In 1988, an oil venture to Bahrain was proposed. With Bush Sr. president at the time, the virtually unknown Texas company had beat out huge oil conglomerate Amoco for exclusive rights to exploration, development, transportation, etc. Even though Harken had no international experience and little capital for such a huge venture, Bahraini oil was theirs for the taking. Many thought that Harken was moribund, and without this contract they more than likely would have sunk. Harken got its big contract but couldn't finance it. The Basses then stepped into the picture by volunteering $25 million. Coincidentally, both were on Bush Sr.'s 1988 elite fundraising squad. Bush Sr.'s squad was the model for Bush's "Pioneers," to which Lee Bass belonged. This deal not only kept Bush's company afloat, but it was also a way for Bahrain to kiss up to the President.
So, who wanted to buy Bush's high risk Harken stock?
In 1990, when George W. Bush was on the board of directors at Harken, he was told that the company was going under. He sold over 200,000 shares of Harken stock weeks before the value plummeted. The overall gain was $848,560; roughly $600,000 of this went towards buying a piece of the Texas Rangers. So, who doled out $850k for a company that could potentially go under at any point directly after the sale? A search of company memos returned only one name, and they can't be sure to whom or what it refers- naturally, the name is "Lee."
Bibliography
Endowment
Stanford’s $17.2 billion endowment provides an enduring source of financial support for fulfillment of the university’s mission of teaching, learning and research. About 75 percent of the endowment is designated by donors for a specific purpose. There are more than 6,000 endowed university funds.
Each year, a portion of investment return from the endowment is used to support annual operating expenses. The remainder of the return is reinvested in the endowment to maintain its value over time. The Stanford Management Company (SMC) was established in 1991 to manage Stanford’s financial and real estate assets. SMC is a division of the university with oversight by a board of directors appointed by the university board of trustees
Stanford’s $17.2 billion endowment provides an enduring source of financial support for fulfillment of the university’s mission of teaching, learning and research. About 75 percent of the endowment is designated by donors for a specific purpose. There are more than 6,000 endowed university funds.
Each year, a portion of investment return from the endowment is used to support annual operating expenses. The remainder of the return is reinvested in the endowment to maintain its value over time. The Stanford Management Company (SMC) was established in 1991 to manage Stanford’s financial and real estate assets. SMC is a division of the university with oversight by a board of directors appointed by the university board of trustees
St. Petersburg Times Circulation — Average daily circulation for 2005 was 317,840 daily and 405,949 Sundays.
-- Average daily circulation for April through September 2009 was 240,147 weekday (down 10.7 percent); 370,050 Sunday (down 5.2 percent).
As a big fan of non-fiction writing across all genres, from John McPhee’s takes on feats of civil engineering to Paul Theroux’s travelogues, a good biography on a notable historical figure is hard to beat. A recent article in the New Yorker reviewed new biographies of four titans of 20th century media, starting with treatments on William Randolph Hearst and Joseph Pulitzer’s rival tabloid dailies in New York, then examining how Barney Kilgore’s impressive handling of the Wall Street Journal ultimately led to Rupert Murdoch’s deft $5 billion acquisition of the paper in 2007. Apparently the Ochs/Sulzberger clan’s staid management of the New York Times over the last century didn’t generate enough intrigue to warrant any biography, let alone a new one, but if Murdoch has his way he’ll eventually acquire the paper or die trying to bury it.
In this hypothetical round of Deadliest Warrior we have the seriously battle-tested Jews vs the steely-eyed septuagenarian swordsman.
Our simulations are uninamous: Never underestimate the Jews.
If this topic already sounds painfully literate and its acidic tone threatens the mental scurvy that gestates during every offseason, just know that by the time you finish this treatise, two-a-days will be here and our new two-fullback set will have Longhorn Nation in a frenzy, so stick with me.
In this hypothetical round of Deadliest Warrior we have the seriously battle-tested Jews vs the steely-eyed septuagenarian swordsman.
Our simulations are uninamous: Never underestimate the Jews.
If this topic already sounds painfully literate and its acidic tone threatens the mental scurvy that gestates during every offseason, just know that by the time you finish this treatise, two-a-days will be here and our new two-fullback set will have Longhorn Nation in a frenzy, so stick with me.
William Randolph HearstIn 1887, at the age of 23, William Randolph Hearst took over management of the San Francisco Examiner, which his father George had accepted as payment of a gambling debt (similar to how Sailor Ripley extorted the blogging empire known as Barking Carnival in the same city 121 years later.) But it was the acquisition of the tabloid paper New York Morning Journal that catapulted Hearst towards fame and fortune, launching a publishing empire that spanned 30 cities at it’s peak before the Great Depression hit in the late 1920’s. The Journal’s coverage of the Spanish-American war actually helped incite a clash that likely would have been avoided were it not for the paper’s sensationalist headlines. From Lemann’s article:
Nothing that appeared in the American press in 2002 and 2003 about the misdeeds and dangers of Saddam Hussein is in the same league of journalistic excess as Hearst’s treatment of Spain between 1896 and 1898.
Nothing that appeared in the American press in 2002 and 2003 about the misdeeds and dangers of Saddam Hussein is in the same league of journalistic excess as Hearst’s treatment of Spain between 1896 and 1898.
Hearst competed against 17 daily newspapers and remained obsessive about his circulation numbers versus rival Joseph Pulitzer’s New York World. Upton Sinclair on Hearst’s agenda: “Willing by deliberate and shameful lies, made out of whole cloth, to stir nations to enmity and drive them to murderous war.” In other words, Hearst would have been a shameless proponent of the BCS system. But think about what kind of prose the Austin American Statesman would deliver if it had 17 local competitors. Maybe it would actually become readable as opposed to self-immolating its dwindling subscriber base in a slow, painful burn otherwise known as Bohlsian Sarcoidosis.
Other than fabricating war with sensationalist reporting (to Hearst’s credit he wrote dispatches from the scene in Cuba in the first act of embeddage reportage), he committed an even greater treachery when he boldly linked marijuana’s dangers to the production of hemp. This political trickeration led to the drug’s prohibition in 1937 and inadvertently to the legalization of medical marijuana in 2002, also known in Marin County as Scipio’s Breakfast Act. And after attending a wedding on the bluffs of Malibu last weekend I contend that this piece of legislation is one of the better byproducts of what srr50 calls Generation Why? As George Mallory once pronounced upon his visage of Mt. Everest: Because it’s there.
Other than fabricating war with sensationalist reporting (to Hearst’s credit he wrote dispatches from the scene in Cuba in the first act of embeddage reportage), he committed an even greater treachery when he boldly linked marijuana’s dangers to the production of hemp. This political trickeration led to the drug’s prohibition in 1937 and inadvertently to the legalization of medical marijuana in 2002, also known in Marin County as Scipio’s Breakfast Act. And after attending a wedding on the bluffs of Malibu last weekend I contend that this piece of legislation is one of the better byproducts of what srr50 calls Generation Why? As George Mallory once pronounced upon his visage of Mt. Everest: Because it’s there.
Whoa, dude. Purple haze meets Hindu Kush!
Intrigued by all things European since an early trip abroad at age 10, Hearst actively acquired one of the the most renowned art collections in the world to fill the halls of his eponymous castle on the central Pacific coast. He spent much of his later years there openly philandering with Marion Davies, a talented comedienne in her own right whose career was stifled by her captivity under Hearst’s broad shadow and controlling impulses. That affair, along with the Orson Welles’ loose depiction of Hearst as Citizen Kane and earlier failed attempts to become both mayor and governor of New York, coalesced to diminish an otherwise prolific life. The art collection was liquidated, his reputation was reduced to a Chooky-esque squalor, and he wallowed in a HenryJames strata of self-capitulation before finally succumbing to a heart attack at the age of 88.
Intrigued by all things European since an early trip abroad at age 10, Hearst actively acquired one of the the most renowned art collections in the world to fill the halls of his eponymous castle on the central Pacific coast. He spent much of his later years there openly philandering with Marion Davies, a talented comedienne in her own right whose career was stifled by her captivity under Hearst’s broad shadow and controlling impulses. That affair, along with the Orson Welles’ loose depiction of Hearst as Citizen Kane and earlier failed attempts to become both mayor and governor of New York, coalesced to diminish an otherwise prolific life. The art collection was liquidated, his reputation was reduced to a Chooky-esque squalor, and he wallowed in a HenryJames strata of self-capitulation before finally succumbing to a heart attack at the age of 88.
Before his expiration, Hearst capitalized on Pulitzer’s failing health to lure some of his best reporters, one of whom he stashed undercover in the lead carriage of the funeral procession for President Grant, feigning sadness while a bereft Mrs. Grant sat just three feet away. Hearst also enlisted some brilliant minds of the day to write fiction and op-ed pieces, from Winston Churchill to Nathaniel Hawthorne, helping to legitimize its tabloid ubringing. Gradually Hearst expanded his attention to magazines, radio, and film that combined under the reigns of the Hearst Corporation still remains one of the largest media companies in the world.
Joseph PulitzerPerhaps more than any other media man, Joseph Pulitzer had a magical pulse for the people. He knew what his fellow blue collar immigrant workers wanted to read and served up a carefully crafted menu of sensationalist reporting, comics (his “Yellow Man” strip spawned the derisive term yellow journalism), scandalous drama, and tips for city living (read: survival). After selling the St. Louis Post-Dispatch, which he had bought from mentor Carl Schurz in 1872 for $3,000, he moved to New York and used his already substantial wealth to purchase the struggling New York World from Jay Gould for $343,000 in 1883. After a bid to get Horace Greeley elected via Op-Ed columns failed back in St. Louis, Pulitzer focused on his readership — the common man — rather than coddling political parties to build his base, amassing his newspaper fortune one cent, one paper, and one street corner at a time.
Despite his middle class roots, Pulitzer settled comfortably in New York and did his best to outspend his entrenched rival Hearst on fine art and cultivating the high life. It caught up to him faster than swine flu in a Cancun airport, leading to an early retirement and blindness by age 43. After his death in 1911 on a yacht in Charleston Harbor, Pulitzer ensured a posthumous legacy through a $2 million trust left to establish journalism schools at Columbia and Missouri. It’s more than a little ironic that the man who helped invent tabloid journalism retains in his name the most esteemed awards for reporting. It’s also because of this inherent conflict that BC’s crotchety editor-at-large continues to rebuff weekly inquiries from a Pulitzer committee desperate to award something to this high class rag. But $2 million went a long way a century ago and it’s no coincidence that those two schools (along with Iowa) remain at the top of their field and Pulitzer’s name still rings true.
In contrast, my UT Journalism degree only sustained me about six weeks in New York before a uniquely desperate situation led me to the sordid world of real estate. But that’s no knock on UT — I just wanted to play in a band more than work. And yes, we rocked Kenny’s Castaways on Bleecker Street harder than the Smithereens ever did. The owner told me so as he handed me $87 as our weekly stipend. To continue this tangent even further, for an equally entertaining piece from the same issue, you can learn here about the origins of debtor’s prisons, where people like HenryJames thrived and inside those same walls (where City Hall currently sits) the New York Stock Exchange was born. The name John Pintard could win you a lot of money on Jeapordy some day. In the meantime, click some ads, we’re about to make some titanic acquisitions and could use some working capital.
In contrast, my UT Journalism degree only sustained me about six weeks in New York before a uniquely desperate situation led me to the sordid world of real estate. But that’s no knock on UT — I just wanted to play in a band more than work. And yes, we rocked Kenny’s Castaways on Bleecker Street harder than the Smithereens ever did. The owner told me so as he handed me $87 as our weekly stipend. To continue this tangent even further, for an equally entertaining piece from the same issue, you can learn here about the origins of debtor’s prisons, where people like HenryJames thrived and inside those same walls (where City Hall currently sits) the New York Stock Exchange was born. The name John Pintard could win you a lot of money on Jeapordy some day. In the meantime, click some ads, we’re about to make some titanic acquisitions and could use some working capital.
Blog Nation Be Warned!
With the daily newspaper being the primary vehicle for distributing the news of the day, long before real time reporting became possible, the battle waged between these two scions of mass media to capture the hearts and minds of the American people remains one of the most intriguing tête-à-têtes since Thayer Evans cornered the McFarland family in a Lufkin motel room circa December 2008.
In Part 2 we’ll delve into the underappreciated work of Barney Kilgore as he built the Wall Street Journal into the world’s most prestigious daily. How long that reputation lasts in the hands of today’s boldest corporate raider, Rupert Murdoch, remains to be seen. He is the closest reincarnation of Hearst this era has seen and like every good aristocrat, Murdoch’s kids also hate him.
Thus the future of American Idol may lie in a delicate balance so get your Simon on while it lasts, Sooners.
With the daily newspaper being the primary vehicle for distributing the news of the day, long before real time reporting became possible, the battle waged between these two scions of mass media to capture the hearts and minds of the American people remains one of the most intriguing tête-à-têtes since Thayer Evans cornered the McFarland family in a Lufkin motel room circa December 2008.
In Part 2 we’ll delve into the underappreciated work of Barney Kilgore as he built the Wall Street Journal into the world’s most prestigious daily. How long that reputation lasts in the hands of today’s boldest corporate raider, Rupert Murdoch, remains to be seen. He is the closest reincarnation of Hearst this era has seen and like every good aristocrat, Murdoch’s kids also hate him.
Thus the future of American Idol may lie in a delicate balance so get your Simon on while it lasts, Sooners.
MOST RECENT NEWSPAPER CIRCULATION STORY FROM ASSOCIATED PRESS---------
Newspaper circulation drop accelerates April-Sept
US newspaper circulation down 10.6 percent as rate of decline accelerates amid rising prices
By Michael Liedtke, AP Business Writer
On 6:50 pm EDT, Monday October 26, 2009
SAN FRANCISCO (AP) -- Circulation at newspapers shrank at an accelerated pace in the past six months, driven in part by stiff price increases imposed by publishers scrambling to offset rapidly eroding advertising sales.
Average daily circulation at 379 U.S. newspapers plunged 10.6 percent in the April-September period from the same six-month stretch last year, according to figures released Monday by the Audit Bureau of Circulations.
It's the largest drop recorded so far during the past decade's steady decline in paid readership -- a span that has coincided with an explosion of online news sources that don't charge readers for access. Many newspapers also have been reducing delivery to far-flung locales and increasing prices to get more money out of their remaining sales.
The latest decline outstripped a 7.1 percent decrease in the October 2008-March 2009 period and a 4.6 percent decline in last year's April-September window.
As both publications indicated earlier in the month, The Wall Street Journal surpassed USA Today as the top-selling newspaper in the United States. The Journal's average Monday-Friday circulation edged up 0.6 percent to 2.02 million -- making it the only daily newspaper in the top 25 to see an increase.
USA Today suffered the worst erosion in its 27-year history, dropping more than 17 percent to 1.90 million. The newspaper, owned by Gannett Co., has blamed reductions in travel for much of the circulation shortfall, because many of its single-copy sales come in airports and hotels.
The New York Times stayed in third place at 927,851, down 7.3 percent from the same period of 2008. Its Sunday edition remained the top weekend seller at 1.4 million, a decrease of 2.6 percent.
Sunday circulation at all the newspapers covered in the ABC survey fell 7.5 percent in the latest six-month span.
The circulation numbers are just the latest sign of distress in the shrinking newspaper industry.
Newspapers are trying to recover from a steep drop in advertising revenue -- traditionally their main source of money. The worst U.S. recession since World War II and the lure of the Internet have combined to make the industry's annual ad revenue $20 billion less than it was three years ago.
To compensate, many of the nation's largest publishers are raising the subscription rates and newsstand prices for their print editions.
Some newspapers also are planning to charge for access to at least some sections of their Web sites. Besides bringing in more revenue, the online fees could cause more people to keep subscribing to the print editions if fewer stories are available for free on the Web. But it would also threaten to shrink their online audiences, making it more difficult to sell the Internet ads that are gradually replacing some forms of marketing in print.
Although higher prices for print editions alienate some readers, enough of them are footing the bill to funnel more money to newspapers.
For instance, circulation revenue at The New York Times Co. and another major newspaper publisher, McClatchy Co., climbed by 7 percent during the summer, even though they both lost subscribers.
Bringing in more money from readers is now more important than trying to preserve circulation, according to Mark Adkins, president of the San Francisco Chronicle. His newspaper suffered a nearly 26 percent drop in circulation in the April-September period to 251,782. But the remaining subscribers collectively pay the Chronicle more than its much larger audience did in the previous year, Adkins said.
The Chronicle now charges $7.75 per week for home delivery, up from $4.75 in the previous year. Weekday copies sell for $1 on the newsstand, up from 75 cents.
"The new circulation revenue has become an important part of our business model," Adkins said. "We are pretty pleased."
The Dallas Morning News attributes about half of the 22 percent decline in its weekday circulation to higher prices. The newspaper, owned by A.H. Belo Corp., averaged circulation of 263,810 during the period. Despite the erosion, the Morning News now gets about 40 percent of revenue from circulation, up from the industry's traditional average of 20 percent.
"While we knew our reported circulation would be down, the key was that we were growing circulation revenue significantly," said Morning News Publisher Jim Moroney.
Both the San Francisco Chronicle and The Dallas Morning News say they are investing their additional circulation revenue in improvements aimed at retaining their remaining audiences -- with the hope the advertisers will want to connect with a more engaged and loyal group of readers. There's a potential downside, too: If newspaper circulation keeps tumbling, advertisers may demand rate cuts and could even shift more of their marketing budgets to media that reach more people.
Other newspapers such as the Detroit Free Press and The Detroit News have curtailed their home delivery schedules to save money. Since March 30, Detroit's two biggest dailies have limited home delivery to Thursdays, Fridays and Sundays -- the editions that sell the most advertising. Readers can get electronic versions of the newspapers on the other days or buy a print copy on newsstands.
The Free Press, the bigger of the two newspapers, ended the latest reporting period with average weekday circulation of 269,729, down 9.6 percent from last year.
A few newspapers, mostly smaller ones, added subscribers during the reporting period. Of all the newspapers with a paid circulation of more than 50,000, the York Daily Record in Pennsylvania saw the biggest increase -- rising 16.5 percent to 55,370. The newspaper's publisher and managing editor didn't return messages Monday.
AP Business Writer Barbara Ortutay in New York contributed to this story.
US newspaper circulation down 10.6 percent as rate of decline accelerates amid rising prices
By Michael Liedtke, AP Business Writer
On 6:50 pm EDT, Monday October 26, 2009
SAN FRANCISCO (AP) -- Circulation at newspapers shrank at an accelerated pace in the past six months, driven in part by stiff price increases imposed by publishers scrambling to offset rapidly eroding advertising sales.
Average daily circulation at 379 U.S. newspapers plunged 10.6 percent in the April-September period from the same six-month stretch last year, according to figures released Monday by the Audit Bureau of Circulations.
It's the largest drop recorded so far during the past decade's steady decline in paid readership -- a span that has coincided with an explosion of online news sources that don't charge readers for access. Many newspapers also have been reducing delivery to far-flung locales and increasing prices to get more money out of their remaining sales.
The latest decline outstripped a 7.1 percent decrease in the October 2008-March 2009 period and a 4.6 percent decline in last year's April-September window.
As both publications indicated earlier in the month, The Wall Street Journal surpassed USA Today as the top-selling newspaper in the United States. The Journal's average Monday-Friday circulation edged up 0.6 percent to 2.02 million -- making it the only daily newspaper in the top 25 to see an increase.
USA Today suffered the worst erosion in its 27-year history, dropping more than 17 percent to 1.90 million. The newspaper, owned by Gannett Co., has blamed reductions in travel for much of the circulation shortfall, because many of its single-copy sales come in airports and hotels.
The New York Times stayed in third place at 927,851, down 7.3 percent from the same period of 2008. Its Sunday edition remained the top weekend seller at 1.4 million, a decrease of 2.6 percent.
Sunday circulation at all the newspapers covered in the ABC survey fell 7.5 percent in the latest six-month span.
The circulation numbers are just the latest sign of distress in the shrinking newspaper industry.
Newspapers are trying to recover from a steep drop in advertising revenue -- traditionally their main source of money. The worst U.S. recession since World War II and the lure of the Internet have combined to make the industry's annual ad revenue $20 billion less than it was three years ago.
To compensate, many of the nation's largest publishers are raising the subscription rates and newsstand prices for their print editions.
Some newspapers also are planning to charge for access to at least some sections of their Web sites. Besides bringing in more revenue, the online fees could cause more people to keep subscribing to the print editions if fewer stories are available for free on the Web. But it would also threaten to shrink their online audiences, making it more difficult to sell the Internet ads that are gradually replacing some forms of marketing in print.
Although higher prices for print editions alienate some readers, enough of them are footing the bill to funnel more money to newspapers.
For instance, circulation revenue at The New York Times Co. and another major newspaper publisher, McClatchy Co., climbed by 7 percent during the summer, even though they both lost subscribers.
Bringing in more money from readers is now more important than trying to preserve circulation, according to Mark Adkins, president of the San Francisco Chronicle. His newspaper suffered a nearly 26 percent drop in circulation in the April-September period to 251,782. But the remaining subscribers collectively pay the Chronicle more than its much larger audience did in the previous year, Adkins said.
The Chronicle now charges $7.75 per week for home delivery, up from $4.75 in the previous year. Weekday copies sell for $1 on the newsstand, up from 75 cents.
"The new circulation revenue has become an important part of our business model," Adkins said. "We are pretty pleased."
The Dallas Morning News attributes about half of the 22 percent decline in its weekday circulation to higher prices. The newspaper, owned by A.H. Belo Corp., averaged circulation of 263,810 during the period. Despite the erosion, the Morning News now gets about 40 percent of revenue from circulation, up from the industry's traditional average of 20 percent.
"While we knew our reported circulation would be down, the key was that we were growing circulation revenue significantly," said Morning News Publisher Jim Moroney.
Both the San Francisco Chronicle and The Dallas Morning News say they are investing their additional circulation revenue in improvements aimed at retaining their remaining audiences -- with the hope the advertisers will want to connect with a more engaged and loyal group of readers. There's a potential downside, too: If newspaper circulation keeps tumbling, advertisers may demand rate cuts and could even shift more of their marketing budgets to media that reach more people.
Other newspapers such as the Detroit Free Press and The Detroit News have curtailed their home delivery schedules to save money. Since March 30, Detroit's two biggest dailies have limited home delivery to Thursdays, Fridays and Sundays -- the editions that sell the most advertising. Readers can get electronic versions of the newspapers on the other days or buy a print copy on newsstands.
The Free Press, the bigger of the two newspapers, ended the latest reporting period with average weekday circulation of 269,729, down 9.6 percent from last year.
A few newspapers, mostly smaller ones, added subscribers during the reporting period. Of all the newspapers with a paid circulation of more than 50,000, the York Daily Record in Pennsylvania saw the biggest increase -- rising 16.5 percent to 55,370. The newspaper's publisher and managing editor didn't return messages Monday.
AP Business Writer Barbara Ortutay in New York contributed to this story.
Circulation numbers for the 25 largest newspapers
The top 25 U.S. newspapers by average weekday and Sunday circulation from April through September. The percentage changes are from the same six-month span last year.
1. The Wall Street Journal _ 2,024,269 weekday (up 0.6 percent); no Sunday edition.
2. USA Today _ 1,900,116 weekday (down 17.2 percent); no Sunday edition.
3. The New York Times _ 927,851 weekday (down 7.3 percent); 1,400,302 Sunday (down 2.7 percent).
4. Los Angeles Times _ 657,467 weekday (down 11.1 percent); 983,702 Sunday (down 6.8 percent).
5. The Washington Post _ 582,844 weekday (down 6.4 percent); 822,208
Sunday (down 5.1 percent).
6. Daily News of New York _ 544,167 weekday (down 14 percent); 603,671 Sunday (down 10.5 percent).
7. New York Post _ 508,042 weekday (down 18.8 percent); 343,361 Sunday (down 11.1 percent).
8. Chicago Tribune _ 465,892 weekday (down 9.7 percent); 803,220
Sunday (down 7.1 percent).
9. Houston Chronicle _ 384,419 weekday (down 14.2 percent); 547,387
Sunday (down 6.3 percent).
10. The Philadelphia Inquirer _ 361,480 weekday; 499,140 Sunday (down 10.3 percent). The Audit Bureau says the year-ago daily figures are not comparable because the Inquirer's numbers now are combined with those of the Philadelphia Daily News, which the Inquirer now counts as an edition of the same newspaper. The Daily News doesn't have a Sunday edition.
11. Newsday of Long Island, N.Y. _ 357,124 weekday (down 5.4 percent); 413,830 Sunday (down 4.6 percent).
12. The Denver Post _ 340,949 weekday; 495,485 Sunday (down 9.2 percent). The year-ago weekday numbers are not comparable because subscribers of the now-closed Rocky Mountain News have been transferred to the Post. The News had no Sunday edition.)
13. The Arizona Republic of Phoenix _ 316,874 weekday (down 12.3 percent); 458,992 Sunday (down 0.9 percent).
14. Star Tribune of Minneapolis _ 304,543 weekday (down 5.5 percent); 477,562 Sunday (down 8.3 percent).
15. Chicago Sun-Times _ 275,641 weekday (down 12 percent); 251,260 Sunday (down 1.8 percent).
16. The Plain Dealer of Cleveland _ 271,180 weekday (down 11.2 percent); 390,636 Sunday (down 5 percent).
17. Detroit Free Press _ 269,729 weekday (down 9.6 percent), 560,188 Sunday (down 7.5 percent).
18. Boston Globe _ 264,105 weekday (down 18.5 percent); 418,529 Sunday (down 16.9 percent).
19. The Dallas Morning News _ 263,810 weekday (down 22.2 percent); 390,520 Sunday (down 19.3 percent).
20. The Seattle Times _ 263,588 weekday; 359,672 Sunday (down 5.9 percent). The year-ago weekday figures are not comparable because the now-closed Seattle Post-Intelligencer's subscriptions were transferred to the Times.
21. San Francisco Chronicle _ 251,782 weekday (down 25.8 percent); 306,705 Sunday (down 23 percent).
22. The Oregonian of Portland _ 249,163 weekday (down 12.1 percent); 303,412 Sunday (down 12 percent).
23. The Star-Ledger of Newark, N.J. _ 246,006 weekday (down 22.2 percent); 371,060 Sunday (down 18.6 percent).
24. The San Diego Union-Tribune _ 242,705 weekday (down 10.1 percent); 309,571 Sunday (down 9.6 percent).
25. St. Petersburg (Fla.) Times _ 240,147 weekday (down 10.7 percent); 370,050 Sunday (down 5.2 percent).
Source: Audit Bureau of Circulations.
1. The Wall Street Journal _ 2,024,269 weekday (up 0.6 percent); no Sunday edition.
2. USA Today _ 1,900,116 weekday (down 17.2 percent); no Sunday edition.
3. The New York Times _ 927,851 weekday (down 7.3 percent); 1,400,302 Sunday (down 2.7 percent).
4. Los Angeles Times _ 657,467 weekday (down 11.1 percent); 983,702 Sunday (down 6.8 percent).
5. The Washington Post _ 582,844 weekday (down 6.4 percent); 822,208
Sunday (down 5.1 percent).
6. Daily News of New York _ 544,167 weekday (down 14 percent); 603,671 Sunday (down 10.5 percent).
7. New York Post _ 508,042 weekday (down 18.8 percent); 343,361 Sunday (down 11.1 percent).
8. Chicago Tribune _ 465,892 weekday (down 9.7 percent); 803,220
Sunday (down 7.1 percent).
9. Houston Chronicle _ 384,419 weekday (down 14.2 percent); 547,387
Sunday (down 6.3 percent).
10. The Philadelphia Inquirer _ 361,480 weekday; 499,140 Sunday (down 10.3 percent). The Audit Bureau says the year-ago daily figures are not comparable because the Inquirer's numbers now are combined with those of the Philadelphia Daily News, which the Inquirer now counts as an edition of the same newspaper. The Daily News doesn't have a Sunday edition.
11. Newsday of Long Island, N.Y. _ 357,124 weekday (down 5.4 percent); 413,830 Sunday (down 4.6 percent).
12. The Denver Post _ 340,949 weekday; 495,485 Sunday (down 9.2 percent). The year-ago weekday numbers are not comparable because subscribers of the now-closed Rocky Mountain News have been transferred to the Post. The News had no Sunday edition.)
13. The Arizona Republic of Phoenix _ 316,874 weekday (down 12.3 percent); 458,992 Sunday (down 0.9 percent).
14. Star Tribune of Minneapolis _ 304,543 weekday (down 5.5 percent); 477,562 Sunday (down 8.3 percent).
15. Chicago Sun-Times _ 275,641 weekday (down 12 percent); 251,260 Sunday (down 1.8 percent).
16. The Plain Dealer of Cleveland _ 271,180 weekday (down 11.2 percent); 390,636 Sunday (down 5 percent).
17. Detroit Free Press _ 269,729 weekday (down 9.6 percent), 560,188 Sunday (down 7.5 percent).
18. Boston Globe _ 264,105 weekday (down 18.5 percent); 418,529 Sunday (down 16.9 percent).
19. The Dallas Morning News _ 263,810 weekday (down 22.2 percent); 390,520 Sunday (down 19.3 percent).
20. The Seattle Times _ 263,588 weekday; 359,672 Sunday (down 5.9 percent). The year-ago weekday figures are not comparable because the now-closed Seattle Post-Intelligencer's subscriptions were transferred to the Times.
21. San Francisco Chronicle _ 251,782 weekday (down 25.8 percent); 306,705 Sunday (down 23 percent).
22. The Oregonian of Portland _ 249,163 weekday (down 12.1 percent); 303,412 Sunday (down 12 percent).
23. The Star-Ledger of Newark, N.J. _ 246,006 weekday (down 22.2 percent); 371,060 Sunday (down 18.6 percent).
24. The San Diego Union-Tribune _ 242,705 weekday (down 10.1 percent); 309,571 Sunday (down 9.6 percent).
25. St. Petersburg (Fla.) Times _ 240,147 weekday (down 10.7 percent); 370,050 Sunday (down 5.2 percent).
Source: Audit Bureau of Circulations.
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