Newspaper Criculation Slide Continues

Implications: The latest six month survey by the Audit Bureau of Circulation show continuing declines among newspaper publishers.

Analysis: Virtually all of the major newspaper publishers saw sharp declines in circulation according to the latest report by the Audit Bureau of Circulation.  From the New York Times to the Chicago Tribune to the Dallas Morning News to the Atlanta Journal-Constitution the numbers were awful.  Publishers reported declines among the top 25 papers from -2% to as much as -10%. 

Some of the erosion is self-inflected by publishers restricting the size of their market (think of outlying or rural areas) to cut costs; the rest is blamed on the Internet.  Whatever the reason, the numbers are only going to continue to decline.  We are experiencing the demise of the newsprint newspaper in the United States.

If publishers every needed a comprehensive digital strategy the time is past due.  Internet advertising among newspapers is growing, but not at a fast enough pace to offset the circulation loss.  Coupled with a recessionary economy where the newspapers' biggest advertiser (auto dealerships) are losing money as well, there are no bright spots on this horizon, with the exception of USA Today and The Wall Street Journal, which reported gains of less than a half-percent.

Most publishers have cut expenses to the bone and downsized personnel.  Publishers must adopt as many digital platforms as possible, including mobile phone distribution, if they intend to stay in the game.