Reflecting on the latest circulation figures

In Japan, advertising accounts for just 35 percent of newspaper revenue. In Britain, it’s 50 percent. And in the United States, ads have traditionally amounted to a whopping 87 percent of newspaper income. That’s why it can truly be said that, in the U.S., newspapers have always given away the news, charging only for paper and delivery.

These days we pay for computers and broadband access while getting the news for free — same as it ever was. That is among the most important explanations for why news organizations are going to have a difficult time persuading more than a handful of readers to pay for online access. I wish them well. But the challenge is enormous.

One thing some readers will continue to pay for is the convenience of print. (Spare me your nostalgia for the romance of print. Print persists for one reason: it’s still more ergonomically friendly than any electronic version. Someday that will change.)

After yesterday’s newspaper circulation figures were released, showing a continued but slowing decline in print sales industry-wide, Boston Globe publisher Chris Mayer issued a memo — a copy of which was obtained by Media Nation — attributing the Globe’s continued slide to last year’s decision to raise the price to as much as the market would bear. (Here is the Boston Herald’s take.)

The idea is that there’s a sweet spot. Up to a point, you can raise prices and make more money, even if the total number of print readers declines. Somewhere, though, there’s a top to the curve, and the challenge is to find the top and not raise prices so much that revenues start to fall. The result, unfortunately, is that you end up with a niche product for an elite readership. But it’s either that or die.

And here’s a good piece of news. There’s also a sizable subset of readers who will pay for electronic editions like Times Reader and GlobeReader, which are cheaper than print but more convenient than newspaper websites that keep you chained to your desk. Given that iPad editions have barely kicked into gear, that’s a promising sign.

The full text of Mayer’s memo follows.

Dear Colleagues,

Earlier today the Audit Bureau of Circulations issued their Fas-Fax report for the six months ending September 30th. The Globe has shown year-over-year declines in line with our expectations, as a result of our circulation and pricing strategy instituted last summer.

The good news is the rate of circulation decline has slowed as we cycle through the impact of the price increases. One indicator is the comparison between September’s report and March’s report. Viewed this way, the declines are 2.8% for Sunday and 4.2% for daily. These are encouraging trends for our business and in line with others in our industry.

The past few months has also seen continued excellence in our reporting and positive contributions to the community. Our Spotlight Team investigation of patronage in the state’s probation department; our sensitive series of stories on bullying; the amazing coverage of the Amy Bishop case; coverage of the earthquake and aftermath in Haiti and its impact in Boston; and our current coverage of the political races are just a few examples of the important journalism we’re delivering.

The Globe’s circulation, now at 368,000 on Sunday and 223,000 daily, still makes us the largest newspaper in New England by a wide margin. The year-over-year decreases of about 15.7% on Sunday and 12.0% daily were expected and budgeted.  To offer some context, we raised prices last summer in most areas by 30% to 50% to grow circulation revenue and stabilize the business.

Of course, circulation numbers are not the end of the story. Print and online media work in concert with one another to build audience. It should be noted then that in terms of readership, during an average week, the Sunday Globe, the daily Globe and Boston.com together will reach 51% of all adults in the metro Boston area.  It will also be reported in Monday’s Fas-Fax that Boston.com’s local audience grew by 2.9 %.

The recently announced two-brand digital strategy is now officially under way and we are developing launch plans for our new subscription-based Web site BostonGlobe.com, and the next generation Boston.com. And, watch forperiodic launches of digital products in the upcoming months.

So, as we look ahead we will continue to execute on our strategy, building on the strong foundation of quality journalism, original content, broad audience reach, higher reader engagement, advertising effectiveness, and strong connection with the community that is reflected by, and results in, our more than 50% of the market.

We can all share a sense of optimism and purpose as we focus on our future success.

— Chris

Photo via Wikimedia Commons.

NPR goes into damage-control mode over Williams

Juan Williams

After NPR chief executive Vivian Schiller said Juan Williams should keep his feelings about Muslims between himself and “his psychiatrist or his publicist,” I thought perhaps it was Schiller who ought to schedule some couch time. She apologized, and today she’s in damage-control mode.

NPR media reporter David Folkenflik did something very smart (which I learned about through Jack Shafer’s Twitter feed): he refused to attend an off-the-record staff meeting about Williams’ firing following offensive comments he made on Fox News. Instead, Folkenflik pieced together what happened by interviewing some of those who did attend. Based on Folkenflik’s tweets, Schiller seems to have hit the right notes. (I’m running them in chronological order rather than the usual reverse chrono:

The all-staff meeting was off the record, so I did not attend. However, staffers who did told me the following:

Schiller said decision to give Wms notice was not because of slip of the tongue, but latest in a series of violations of NPR ethics policy

Schiller said it had been raised several times but that he continued to inject personal opinon in his analysis in settings outside NPR.

Schiller said at some point, you have to draw the line. (more)

Though she called it the right decision, Schiller also said NPR did not handle Wms’ ouster well. She promised staffers a “full post-mortem.”

Schiller also said she was ambushed leaving her home by a two-person camera crew identifying itself as being from Fox News.

Over and out.

I feel a little better about this than I did yesterday. Schiller did the right thing for the wrong reason at the wrong time. What’s important is that she knows she blew the handling of it. No way she can undo it — not after Fox News rewarded Williams with a three-year, $2 million deal. But at least she seems determined to make the best of a bad situation. It sounds like she’s adopted the views of NPR ombudsman Alicia Shepard, who writes that “a more deliberative approach might have enabled NPR to avoid what has turned into a public relations nightmare.”

Here is our discussion of the Williams matter on tonight’s “Beat the Press.” I’m also quoted in a Christian Science Monitor story on the hazards of straddling the reporter/analyst/commentator divide.

Photo via Wikimedia Commons.

Juan Williams and political correctness

Just a quick observation about NPR’s decision to terminate Juan Williams after he expressed his fear of Muslims on airplanes during an appearance on “The O’Reilly Factor.”

To me, Williams was clearly a victim of Rick Sanchez syndrome. That is, Williams was not an asset to NPR, and management was probably happy to stumble upon an excuse to get rid of him. Williams is a supremely uninteresting occasional commentator who will not be missed. What he said was offensive, but if he were a star he’d have been let off with a suspension and an apology.

I’ll add that many people hold the views that Williams expressed. That’s not an excuse. But if NPR hadn’t acted so precipitously, and if Williams were up to the task, Williams might have helped lead a national conversation on the Islamophobia that now pervades this country.

NPR made a mistake in firing Williams, but he should have quietly been let go a long time ago.

What Jeff Perry saw

From the time the story re-surfaced last spring, the problem with trying to hold Republican congressional candidate Jeff Perry responsible for a rogue police officer’s illegal strip searches of two teenage girls was that the matter had already been thoroughly litigated.

Perry, a former Wareham police sergeant, was not directly charged in either of the two incidents. Nor has anyone been able to tie his subsequent resignation to his actions in those incidents. Perry’s Democratic opponent in the 10th Congressional District, Bill Keating, has been pounding away on the issue. But according to the polls, the race has remained close. No doubt to a lot of prospective voters, it sounded like typical campaign mudslinging.

That all changed yesterday. Now we have one of the victims declaring that Perry had to have known that then-police officer Scott Flanagan was sexually assaulting her one night in 1991 near a Wareham cranberry bog. “He had to hear me screaming and crying, said Lisa Allen in a statement, according to the Boston Globe. “Instead of helping me, Jeff Perry denied anything happened.”

The Cape Cod Times — which, along with the Patriot Ledger of Quincy, may be the most important local paper in the district — plays the story huge today beneath the headline “Strip-search victim blasts Perry.” As the Outraged Liberal notes, the Boston Herald relegates the story to Margery Eagan’s column — a questionable bit of news judgment, though Eagan, to her credit, is in high dudgeon. So is Globe columnist Joan Vennochi.

The online news site Cape Cod Today has pushed the Perry story relentlessly, and I take this as something of a victory lap.

If there is a congressional district in Massachusetts ripe for a Republican takeover, it is surely the 10th, a conservative part of the state that stretches from Quincy to Provincetown. The Republicans had a chance to pick nice guy Joe Malone, but instead went with Perry. No doubt many of them are regretting that decision today — but surely they knew something like this might happen.

What happened to Lisa Allen may have taken place a long time ago. But the questions she raises about Perry’s empathy and judgment are just as valid today as they were in 1991.

A possible buyer emerges for the Globe and T&G

Is the Boston Globe for sale? For the right price — maybe. An investment group headed by a 37-year-old greeting-card entrepreneur named Aaron Kushner emerged this afternoon as a possible buyer for the Globe, Boston.com and the Telegram & Gazette of Worcester.

But the New York Times Co., which wanted to sell the properties in 2009, may no longer be interested. No doubt that would change if Kushner’s group is prepared to fork over some serious money. But we don’t know that yet.

Another caution: Kushner says he wants to beef up the newsroom. Well, wouldn’t we all? He may be well-intentioned, but no one is going to bolster the Globe’s staff unless his intention is to operate the paper at a loss.

Ralph Ranalli is gathering links at Beat the Press.

Herald promotes from within

The Boston Herald’s new editor, Joe Sciacca, has announced seven internal promotions. The big news, though it’s not surprising, is that John Strahinich is the new executive editor, serving as Sciacca’s number two. A veteran of Boston magazine, Strahinich was already the Herald’s top editor after Sciacca.

Herald media reporter Jessica Heslam has the rest of the team here.

Copyright, fair use and the limits of political speech

Over at Blue Mass. Group, there’s an interesting debate taking place over copyright and fair use in reaction to a new ad put together by the Massachusetts Republican Party. The ad is nothing special — it shows President Obama and Gov. Deval Patrick amid various bad-news headlines about the weak economy. What’s notable is the soundtrack: a 57-second excerpt from “You’ve Got a Friend,” written by Carole King (potential plaintiff #1) and performed by James Taylor (potential plaintiff #2).

BMG co-editor David Kravitz has done yeoman work in showing that use of the song probably adds up to copyright infringement. Under the fair-use doctrine, you can use someone’s copyrighted material without permission for certain purposes, including parody. But according to a case Kravitz found, the parody must be directed at the copyright-holder in order for it to pass muster, not at some third party or parties.

Kravitz is probably right, but I still think there’s an argument to be made (I make it here) that the ad should be considered fair use: it’s political speech, which traditionally receives the highest level of First Amendment protection; it’s not taking a penny out of either King’s or Taylor’s pockets, the most important element in the four-part fair-use balancing test; and if media corporations like Disney hadn’t lobbied Congress to extend the copyright period from the traditional 28 years (originally 14) to the absurdly long terms that prevail today, then the ad wouldn’t even be an issue.

What I find interesting in the comment thread is the degree to which even progressives have internalized talking points put forth by the media conglomerates in arguing that the Republicans are in the wrong. Frankly, there’s someone wrong with a copyright regime if it’s illegal to grab barely a fifth of a 39-year-old song in order to make a political point.

But as we know, even as technology has made it ever easier to engage in copyright, the copyright protections that media corporations demand have grown ever more draconian.