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By Dan Kennedy • The press, politics, technology, culture and other passions

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In a separate lawsuit, Gannett joins antitrust effort aimed at Google (and Facebook)

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On June 21, 2023

In Local News

Photo (cc) 2010 by John Marino

Since early 2021, Google has faced legal challenges over its control of digital advertising. Essentially, the tech giant stands accused of violating antitrust law by controlling all aspects of the ad market. As Paul Farrell, the lawyer for a group of seven newspapers in West Virginia, told Gretchen A. Peck of the trade publication Editor & Publisher:

They [Google] have completely monetized and commercialized their search engine, and what they’ve also done is create an advertising marketplace in which they represent and profit from the buyers and the sellers, while also owning the exchange. Google is the broker for the buyer and gets a commission. Google is the broker for the seller and gets a commission. Google owns, operates and sets the rules for the ad exchange. And they are also in the market themselves.

The suit filed by Farrell on behalf of the West Virginia papers was later joined by about 200 papers and included Facebook, which was accused of colluding with Google in order to receive preferential treatment. Attorneys general in Texas and several other states filed a separate suit, with BuzzFeed News reporting that the CEOs of Google and Facebook “personally signed off on a secret advertising deal.” The Justice Department got involved, and the European Union is suing Google on similar grounds.

On Tuesday, Google’s legal woes grew that much more complicated as Gannett, the country’s largest newspaper chain, filed its own lawsuit against Google in federal district court. Writing in USA Today, Gannett’s flagship publication, chair and CEO Mike Reed accused Google of “monopolization of advertising technology markets and deceptive commercial practices.” He added:

The core of the case and our position is that Google abuses its control over the ad server monopoly to make it increasingly difficult for rival exchanges to run competitive auctions. Further, Google’s exchange rigs its own auctions so Google’s advertisers can buy ad space at bargain prices. That means less investment in online content and fewer ad slots for publishers to sell and advertisers to buy. Google always wins because it takes a growing share of that shrinking pie.

In addition to USA Today, Gannett owns about 200 daily papers and other publications across the country, including local papers such as the Telegram & Gazette of Worcester, The Patriot Ledger of Quincy, the MetroWest Daily News of Framingham and The Providence Journal.

So why did Reed decide to file his own lawsuit rather than joining antitrust efforts that are already under way? It’s a good question, and it’s one that Editor & Publisher’s Mike and Robin Blinder asked him about in their vodcast, “E&P Reports.” Reed’s answer: “You know, as far as us going by ourselves, we just felt like we had the right size, we had the right legal counsel, and we felt like we didn’t want to wait.”

Jeff Jarvis, a well-known digital media observer and director of the Tow-Knight Center for Entrepreneurial Journalism at the City University of New York Graduate School of Journalism, was critical of the Gannett suit, telling E&P:

It is tragic that once-great Gannett is resorting to protectionism and retribution against its competitors rather than have a strategy for innovation and growth in a changed marketplace. There are legitimate questions to be addressed regarding Google’s power in both sides of the advertising market and authorities in both Europe and the U.S. are investigating them. But for Gannett to blame Google’s alleged monopoly for its present troubles is just sad.

But you can disparage Gannett for decimating its newspapers while still supporting legal efforts to hold Google to account. Few media observers have been more critical of Gannett than my What Works partner Ellen Clegg and I. Greed and crushing debt have led the chain to cut its journalistic capacity far more deeply than would have otherwise been necessary. Yet it’s simply a fact that very little digital advertising money has flowed to the news business, and that lack of innovation on the part of the news business is only partly to blame. If news publishers and government investigators are able to show that situation is either partly or wholly the result of illegal practices on the part of Google (and Facebook), then there’s no reason why Gannett shouldn’t be one of the beneficiaries, regardless of the company’s otherwise loathsome behavior.

Moreover, the antitrust route strikes me as far more promising than congressional efforts to force Google and Facebook to pay for the news they repurpose. Last week, the Senate Judiciary Committee passed the Journalism Competition and Preservation Act on a bipartisan 14-7 vote, according to Ted Johnson of Deadline. The JCPA would allow the news business to bargain collectively with Google and Facebook for a share of their revenues. Even if the JCPA passes the full Senate, though, it seems unlikely to prevail in the Republican-controlled House. A similar law in Australia has served mainly to enrich press baron Rupert Murdoch, and there’s no guarantee that the JCPA would bolster journalism at the local level.

Regulating a monopoly often leads to unintended negative consequences. Breaking one up, as Gannett and its numerous co-plaintiffs would like to do, can spark innovation. Local news today is getting by through a combination of paywalls, low-value programmatic ads and — in the nonprofit sector — foundation grants, membership fees and events. Nothing would be more welcome than to see that bolstered by a reinvigorated ad market.

A remarkable set of front pages mark Trump’s day in a New York courtroom

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On April 5, 2023

In Media, Politics

Tuesday was, as we keep being told, historic. We don’t know what will happen to Donald Trump next, and he may be faced with more serious charges in Georgia and Washington. These front pages, though, tell quite a story about the former president’s arraignment on felony charges in New York. (From the Freedom Forum’s indispensable Today’s Front Pages website.)

Gannett seeks correction to Nieman Lab article

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On March 14, 2023

In Media

Last Friday I disputed Joshua Benton’s reporting in Nieman Lab on the extent of the decline in paid circulation at USA Today, owned by Gannett. Now Gannett has asked for a correction. I’m sure Gannett would take issue with my reporting as well; as I noted in an update, both Benton and I may have been led astray by the lack of transparency with which Gannett reports its numbers.

In fact, there’s a statement within Gannett’s request for a correction that is just pure gold regarding the circulation figures that it reports to the Alliance for Audited Media: “AAM data is used to help advertisers understand publisher reach in specific markets, not to infer readership or paid circulation.” Huh?

Surely it is news to many of us that terms such as “print readership,” “print and digital readership” and “circulation” ought to be defined by something other than their plain English meaning. In my earlier post, I concluded that it is impossible to know what Gannett’s publicly reported numbers mean. This only confirms it.

Gannett is wrecking its papers, but USA Today’s circulation is not down 93%

By

On March 10, 2023

In Media

Photo (cc) 2005 by @mjb

Update: Trying to write about Gannett and accurate numbers simply isn’t possible. One reader notes that USA Today didn’t start offering digital subscriptions until 2021 — and yet Gannett was reporting paid (or unpaid?) digital for USA Today to the Alliance for Audited Media starting at least in 2012. So how is that possible? Another reader hints at an answer — if you subscribe to any Gannett paper, or maybe just any Gannett daily, you get a subscription to USA Today included. Or you used to. Maybe that changed after USA Today’s paywall went up.

So it could be that USA Today’s paid circulation was far lower in 2018 than what it reported to AAN — not the 2,632,392 that Joshua Benton used, and not the 1,584,462 that I used. Instead, maybe what we ought to look at is the 631,076 print figure. And since USA Today seemed to be selling an e-paper option as well, that would bring total paid circulation in 2018 to 654,743.

Now let’s go for an apples-to-apples comparison. The 156,453 that Benton reported for USA Today’s current paid circulation is the total of print and replica. That’s a nausea-inducing decline of 76% over the four-year period, but that’s still not nearly as much as the 93% Benton’s numbers showed. It’s also a lot worse than the 33% estimate that I offered.

But wait! USA Today has been selling paid nonreplica digital subscriptions for nearly two years now. How many? As I explained, Gannett stopped reporting that figure a while back, so we don’t know. Surely it’s not the “zero” that Gannett claims on its most recent report to AAN. (It should at least be one; I mean, I bought one.) We simply can’t know how by how much USA Today’s paid circulation has declined without knowing that important figure, or whether subscriptions to other Gannett papers are included. Without access to Gannett’s internal numbers and insight into exactly what they mean, it’s an unsolveable mess.

Earlier: Did USA Today’s paid circulation drop by 93% between 2018 and 2022? The near-certain answer to that is no — yet that’s the astonishing claim that Joshua Benton makes at Nieman Lab. I knew there was a problem with his numbers as soon as I saw them, mainly because I recently put some effort into figuring out how USA Today’s corporate owner, Gannett, compiles its circulation figures. So let’s dive in.

Benton reports that USA Today’s paid circulation in the third quarter of 2018 was 2,632,392 and then fell in the third quarter of 2022 to just 180,381. That’s a staggering loss of 2,452,011, or 93%. But as I’ll show, much of that apparent loss is the result of a change in the way Gannett reports its paid digital circulation to the Alliance for Audited Media.

What I was able to dig up at AAN uses slightly different time periods compared to what Benton found. I’m going to use all of 2018 rather than the third quarter because the latter wasn’t available when I looked. But it should tell the same tale. It shows that the average weekday circulation that year was 2,708,983, which is in the same ballpark as what Benton reported. A lot of that, though, consists of “affiliated publications” such as Local/Life and Sports Weekly. The circulation of the paper alone was 1,584,462. Now, pay attention to the following breakdown, because it will prove important:

  • Print: 631,076
  • Digital replica: 23,667
  • Digital nonreplica: 929,719

“Digital nonreplica” is the term for digital subscribers who access the website but don’t bother with the e-paper. As you can see, it comprises the vast majority of digital subscriptions — and, at some point, Gannett simply stopped reporting that number.

Now let’s look at the third quarter of 2022. Paid weekday circulation is reported as 180,381 at the top level at ANN (the figure Benton used) or 156,453, which is the number that pops up at AAN if you click through. That latter number comprises 132,176 for print and 24,277 for digital replica (the 156,453 figure, which I didn’t immediately grasp) — and zero for digital nonreplica. So, yes, print circulation is down by a stunning 79%, which may have more than a little to do with the COVID-19 pandemic. USA Today, after all, was a staple of hotels for many years. But digital replica is up slightly. And digital nonreplica simply isn’t being reported.

I encountered this recently when I was analyzing some numbers for Gannett’s Burlington Free Press in northern Vermont. I discovered that, not only had Gannett stopped reporting digital nonreplica, but that — according to confidential internal reports I had obtained — it was underreporting its total paid digital circulation by about half.

Gannett is trying very hard to sell digital subscriptions for its incredible shrinking news outlets. Keep in mind, too, that people don’t buy subscriptions to the replica edition — they buy digital subscriptions, period, and the papers themselves report how many readers are accessing the e-paper so they can tout that number to advertisers. (AAN recently explained all of this to me. As you’ll see, it’s pretty complicated.) In other word, Gannett is telling AAN how many subscribers are accessing the e-paper, but they’re keeping total digital circulation to themselves.

Now, I’m going to take a leap here and assume that USA Today’s total digital circulation was the same in 2022 as it was in 2018, or maybe even a little higher. I base that on several factors: digital circulation was up at all of Gannett’s New England properties, according to the confidential report I mentioned; USA Today’s digital replica circulation was up slightly; and Gannett has been pushing digital subscriptions hard. I even signed up for one, and it was a great deal — with a little fiddling, I can use it to access every Gannett paper in the country. Of course, there’s little in them.

With all that in mind, I came up with a guesstimate that USA Today’s paid circulation in the third quarter of 2022 was about 1,056,000. I’m building in a nonreplica figure of 900,000, a decline (as I said, unlikely) compared to 2018. Put all that together, and using a 2018 circulation figure of 1,584,462 (that is, not counting “affiliated publications”), and I come up with a drop of 33% between 2018 and 2022. Now, that’s still a lot — but it’s also in line with a lot of non-Gannett papers that Benton used for comparison.

Everything else Benton says about Gannett is right on target. The company has decimated its papers, is closing them and selling them off, and generally appears to be squeezing out the last few drops of revenue they can muster before people like top executive Mike Reed, the $7.7 million man, walk away. It’s an outrage, and we really can’t call attention to it often enough.

But the crazy circulation drop at USA Today and other Gannett dailies is more a function of Gannett’s decision to stop reporting paid digital nonreplica subscriptions than it is an actual measurement of readers fleeing for the exits.

The Globe loses its contract to print The New York Times

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On January 14, 2023

In Media

Sign outside the Globe’s printing plant in Taunton. Photo (cc) 2018 by Dan Kennedy.

The Boston Globe has lost its contract to print the regional edition of The New York Times at its Taunton facility. The Times will instead now be printed at the Dow Jones plant in Chicopee. Dow Jones is the parent company of The Wall Street Journal.

When the Globe’s Taunton printing plant opened in 2017, the hope was that it could turn a profit for the paper by taking on outside clients. The facility got off to a rough start, though, with publisher-owner John Henry writing a front-page note to subscribers admitting that the presses “are operating too slowly and breaking too often.” He added: “We are embarrassed. We are sincerely sorry to all those affected.” In my 2018 book, “The Return of the Moguls,” I described the launch of the Taunton plant as a “disaster.”

At one point, the Globe printed the Times, the Boston Herald and USA Today. The Herald decamped for The Providence Journal some time ago. When I asked Globe spokeswoman Heidi Flood whether the Taunton facility currently has any outside work, she answered only that “we are always exploring ways to bring more work into the plant.” She did say that Taunton now handles the entire Globe print run. At one time the Globe was jobbing some of its run out to The Eagle-Tribune in North Andover; I’m not sure when that stopped.

I’ve heard that the Taunton plant has laid some employees off as well, but Flood did not address that when I asked her about it by email. The full text of her statement follows.

I can confirm that the Times decided not to renew their printing contract with the Globe. We worked very hard over many months to keep their business in a way that also worked for ours, but were not able to arrive at a financially sustainable agreement. While the pending NYT departure is disappointing, from a business perspective it’s the right decision and positions us more favorably for the future.

The Times’s decision to print elsewhere will not affect our Globe print operations. Taunton currently handles the entire Globe print run and we are always exploring ways to bring more work into the plant. First and foremost, the Globe remains committed to meeting the needs of our valuable print subscribers.

Gannett lays off journalists, closes papers and keeps the numbers to itself

By

On August 15, 2022

In Local News

Frank Gannett (1876-1957) founded the newspaper chain that bears his name. Photo (cc) 2009 by History Rewound.

What more can be said about the latest round of Gannett layoffs? This one was telegraphed well in advance, and I wrote about what was coming three times (here, here and here) before the hammer finally came down on Friday.

We don’t know the extent of the damage; The Associated Press reported that the “company declined to provide details about the number of people losing their jobs.” The number 400 has been bandied about, but is that 400 journalists or 400 total employees? In any case, that number has not been verified. We do know that the cuts were broad and deep, from Worcester County, where, according to Grafton Common, the chain’s weekly papers were decimated, to its national flagship, USA Today.

Los Angeles Times reporter Jeong Park has provided one way of looking at what happened. Gannett owns about 250 newspapers and other properties, and, before Friday, it employed about 4,000 reporters, editors and photographers. Our three national papers together also employ about 4,000 journalists — The New York Times (1,700), The Washington Post (1,000) and The Wall Street Journal (1,300). And, unlike Gannett, they’re all growing.

Gannett’s losses in the most recent quarter were so vast that it seems likely management will come back for another bite at the apple in a few months. After all, they’ve been on a rampage in Eastern Massachusetts, closing a number of weeklies in 2021 and 19 earlier this year (the company also merged nine papers into four). They’ve pretty much given up on local coverage, too.

Meanwhile, the company’s top executives pay themselves millions of dollars, and even the part-time board members are getting north of $200,000. And it’s been reported that CEO Michael Reed bought another 500,000 shares of Gannett stock last Tuesday, paying $1.22 million.

This feels like the end game, but it probably isn’t. There are always more papers to close, more people to lay off and more websites to strip of any real journalistic content. My heart goes out to the folks who lost their jobs on Friday. I hope they all land on their feet — and I also hope that many of them will look into the possibility of starting independent news projects in the communities they used to cover. The need and the opportunity are there.

A terrible day for Gannett, to be followed by terrible days for its staff and communities

By

On August 5, 2022

In Local News

The late Gannett chairman Al Neuharth, who created USA Today, was no stranger to cost-cutting. But he’d be rolling over in his grave at what’s taking place now. Photo (cc) 2013 by George Kelly.

Gannett, the country’s largest local news chain, is in a tailspin. The publisher of some 200 daily papers reported a significant loss in the second quarter — $54 million on revenues of $749 million.

According to Rick Edmonds, who analyzes the media business for Poynter, the company is either down or missing its targets in digital and print advertising as well as print circulation. The sole bright spot: a steady rise in paid digital circulation. Extensive layoffs are on the way. Edmonds quoted a memo from Maribel Perez Wadsworth, head of the media division, in which she said: “In the coming days, we will … be making necessary but painful reductions to staffing, eliminating some open positions and roles that will impact valued colleagues.” It’s hard to see how shrinking an already diminished product is going to help.

Those of us who live in Eastern Massachusetts and environs might wonder where they are going to find any staff members to lay off. Over the past year, the chain has closed many of its community weeklies. Its dailies are still publishing, but with skeleton newsrooms.

The question with Gannett is how many of its problems are simply part of the overall local news crisis and how many are of its own making. Tim Franklin, senior associate dean and the John M. Mutz Chair in Local News at Northwestern’s Medill School, tweeted:

As it turned out, Lee did reasonably well, which Chris Krewson, executive director of Local Independent Online News (LION) Publishers noted in a response to Franklin.

I would argue that though the challenges facing community journalism are very real, there are some unique factors at work with the current iteration of Gannett, which lost its way in the cradle back when GateHouse Media was born. GateHouse and Gannett merged a few years ago, but it was essentially a takeover by GateHouse, which has been pillaging its local titles for the past 15 or so years. Gannett’s schemes to overcome the mess in which it finds itself strike me as harebrained. Its plan to pursue sports betting isn’t going well, as Edmonds reports. Then there is its dream of getting into nonfungible tokens (NFTs). Seriously?

Gannett’s flagship is USA Today, which is still a solid paper. If I had to guess, I’d say they’ll leave it pretty much alone so that they can use it as a wire service to fill up their regional and local papers. I mean, even more than they’re already doing.

Sadly, Gannett’s journalists have been on a roll, with reporters at the Indianapolis Star and The Columbus Dispatch breaking the story about a pregnant 10-year-old rape victim — and then confirming it when it was questioned by right-wing propagandists and by Washington Post fact-checker Glenn Kessler. The Austin American-Statesman obtained and published video of the police (non)response to the school shootings in Uvalde, Texas, after editing out the children’s screams. This is outstanding journalism, and soon Gannett will have fewer journalists.

Gannett’s greed and incompetence are going to mean fewer jobs for reporters and less coverage for local communities. It’s an ongoing tragedy, but it does open up possibilities for entrepreneurs who are looking to start new projects.

The Patriot Ledger will end home delivery and stick your paper in the mail

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On April 18, 2022

In Local News

Photo (cc) 2012 by kearnsandcairns

I’ve been trying to find out how widespread this is, but to no avail. Recently I learned that The Patriot Ledger of Quincy, a Gannett daily and, back in the misty past, one of the best medium-size papers in the country, is going to end home delivery and switch to the postal service instead.

What this means for print customers is unclear. You’d think there’s no way they will receive that day’s paper until the next day, or possibly the day after, although, as you’ll see in the message below, the Ledger is promising same-day mail delivery. Of course, this comes on top of the pending closure of 19 Gannett weeklies in Massachusetts, the end of Saturday print editions at many of the dailies, and numerous other cuts — including at the Ledger itself, which will switch from a print paper to an e-edition on Mondays.

As best as I can tell, the move to the USPS is being rolled out slowly at a few Gannett dailies here and there. It doesn’t seem like an all-at-once sort of thing. For instance, when I plugged some of the language from the Ledger announcement into Google, I discovered that Gannett switched to mail delivery at The Ithaca Journal of New York and The Banner-Press of Brenham, Texas, in December. I’m not coming up with others, but that doesn’t mean they’re not out there.

The message to Patriot Ledger subscribers, from a post office box in August, Georgia, was provided to me by a customer who lives in Quincy. It’s hard to see much good in here given that Gannett continues to cut its newsrooms and its coverage. It’s also very bad news for the paper’s loyal newspaper carriers; I reproduce a message from one of them below.

I have to say, though, that there are a few things in here that sound interesting. Ledger subscribers will be able to access any Gannett e-edition in the country, including the flagship USA Today. I might just get a digital subscription to USA Today if it means I can access other Gannett papers. Here’s most of the message:

Dear Subscriber:

The Patriot Ledger has been a vital part of the fabric of our community since its inception, bringing readers the reliable, local and passionate journalism you know and expect. While our commitment remains steadfast, we want to inform you of changes to your subscription.

Labor shortages have impacted newspaper deliveries across the country including the area and we want to make sure that your paper delivery is consistent. Beginning May 3, 2022, we will no longer provide home delivery of The Patriot Ledger. Delivery of your newspaper will continue and be provided via the U.S. Postal Service. The last day of home delivery will be May 2, 2022. You can expect delivery of your newspaper at the same time as your daily mail service. There will be no change to your current subscription rate.

Additionally, with more of our readers engaging with our content online, we are announcing a bold step towards our digital future. Beginning May 9, 2022, The Patriot Ledger will transition from delivering the Monday print edition to providing you a full Monday electronic edition (e-Edition), a digital version of our newspaper, available to you early morning. With the exception of Monday, you will continue to receive the print edition via USPS according to your delivery schedule.

As a loyal subscriber, we understand this change will impact you, which is why we are taking every step to ensure you have easy access to the news, sports, events and information you value most.

While a printed newspaper once was the sole means of accessing news and information, we offer many ways to connect with The Patriot Ledger. Your subscription includes unlimited digital access to patriotledger.com, where our team of journalists post updates and breaking news throughout the day, as well as our mobile apps, video, newsletters and the e-Edition….

Your local e-Edition also includes bonus magzines on various topics of interest and the full edition of USA TODAY. For quick tips on how to navigate the e-Edition visit patriotledger.com/eeditiontips.

As we make this transition, we are adding additional benefits to your subscription!

• Ad-free, 24/7 access to our USA TODAY Crossword puzzle! You can enjoy daily games by visiting puzzles.usatoday.com or through the USA TODAY Crossword app available on your iPhone or Android device.

• Universal access to all e-Editions throughout the USA TODAY Network in cities across the country, accessible via your own e-Edition. To access other newspapers, once inside the e-Edition, simply click on the icon titled Universal on the right-side navigation bar….

Thank you for your continued loyalty and support of our community-focused journalism.

Greg Mathis
Editor

So, is Gannett really making this move because of problems with its home-delivery network? Perhaps. But another Ledger customer sent me a message he received recently from a carrier who’s now out of work. Here it is:

Hello; I am writing to inform you that as of May 2, 2022, I will no longer be delivering your Patriot Ledger. The Parent company of the Patriot Ledger is the Gannett Company, they decided in their ultimate wisdom to get rid of all the Patriot Ledger Paper Carriers.

The Gannett Company has decided that they would rather pay more to have their paper delivered by the United States Postal Service. The average pay for a Patriot Ledger carrier is around $1.20 for 6 days papers (that is for all 6 days deliver $1.20). The USPS will be charging far more than this rate.

At the beginning of the pandemic, I was told that I was essential worker, and I delivered the Patriot Ledger throughout Covid every day. And now that things are getting a little better, for some reason that is beyond me, my job has been eliminated. I have enjoyed all your friendships all along the way. I feel fortunate for having the opportunity to meet you all. And hope that I also helped you by delivering your paper on time and where you wanted it.

The Patriot Ledger is also going to a 5-day newspaper, Tuesday Thru Saturday. They are stopping Monday deliveries. Gannett has continued to cut services and they are now saying to their customers you will no longer have your weekday Patriot Ledger at the time you have been receiving it and you will NEVER have your Saturday paper by 8:00am.

Many of the Patriot Ledger Carriers have been with the Patriot Ledger for many years, some for well over 20 years. We had our legally signed contracts with the Gannett Company voided because the contract has always been written in favor of the Company.

I have met the nicest guys that are also doing routes husbands, fathers, grandfathers, and ladies that have delivered the Patriot Ledger longer than most of the men. I have met the nicest customers because of this route too. Have enjoyed your friendships and your many kindnesses and gifts.

I want to say it has been a pleasure delivering your Patriot Ledger, and I will miss the friends I have made over these many years. For a while both our kids were in the Military and they also were deployed to the Middle East at the same time. This very route helped me to keep my mind off everythig too. They are both thankfully home.

Sincerely,

Your Patriot Ledger Carrier.
(name redacted)

Do you know of other daily newspapers that are dropping home delivery in favor of mailing it out? Please let me know in the comments.

Digital circulation is growing, but it needs to be more and faster

By

On February 14, 2022

In Local News

Photo (cc) 2005 by rnv123

Will digital subscriptions save the newspaper business? They had better. With advertising in a death spiral, publishers have to hope that readers will pick up the slack. Progress has been slow, but it may finally be picking up.

Marc Tracy reports in The New York Times that several newspaper chains, including Lee Enterprises and Gannett, have experienced significant increases in paid digital circulation. The problem is that these increases are spread over many papers, and the situation at any one of them remains dicey.

For instance, Gannett is up 46% over the past year, to 1.5 million paid digital subscriptions — yet it owns about 250 daily papers, including USA Today. Those numbers need to be exponentially greater if Gannett is going to re-establish itself as a lucrative business and actually start adding rather than cutting journalistic resources.

“There’s a big misperception out there that there’s a big hole in local journalism, and I think that narrative’s been created by people who aren’t sitting in local markets,” Gannett chief executive Mike Reed told Tracy. As a longtime reader of Gannett’s (previously GateHouse Media’s) community weeklies, all I’ve got to say is: You’ve got to be kidding.

In order for paid digital to work, you also have to charge enough. To go back to USA Today, I see that the cost is $9.99 a month after the first-year discount expires. That’s not bad, but it’s well behind The Boston Globe’s $30 a month. And the Globe has managed to sell a reported 235,000 digital subscriptions. Of course, the Globe, like most newspapers, offers a huge discount to new subscribers, which means it then has to figure out a way to keep them.

In order to succeed with digital subscriptions, you need good content and good technology. Many of the papers now trying to succeed in the digital space have been cut substantially. And too many newspaper websites are still clunky mish-mashes with pop-ups, pop-unders and other annoyances.

It’s better to grow than to shrink, so in that sense I guess Tracy’s story is good news. But there’s still a long way to go.

Digital drives a circulation increase at the Globe while the Herald keeps sliding

By

On September 1, 2021

In Media

The Boston Globe’s strategy of focusing on digital subscriptions is paying off, according to the latest figures from the Alliance for Audited Media. For the six-month period ending on March 31 of this year, the Globe’s paid weekday circulation was 331,482, up 81,201, or 32%, over the same period a year earlier. On Sundays, the Globe’s paid circulation was 387,312, up 73,347, or 23%.

The increase came despite the continued shrinkage of the print edition. Weekday print was 77,679, a decline of 16%. Sunday print is 135,696, down nearly 15%. Paid digital now accounts for nearly 77% of the Globe’s circulation on weekdays and 65% on Sundays — numbers that no doubt had a lot to do with the hunger for local and regional news during the COVID-19 pandemic.

The numbers were not nearly as rosy at the Boston Herald, which has been gutted by its hedge-fund owner, Alden Global Capital. Paid weekday circulation, print and digital, is now 56,791, a decline of 9,686, or more than 14%. Sunday circulation is 58,461, down 14%. Digital is essentially flat, with nearly all of the decrease coming from the Herald’s fading print product. The Herald today sells an average of 22,032 print papers every weekday and 25,892 on Sundays.

The new circulation figures at the Globe and the Herald come amid a massive decline in print circulation nationwide. According to the Press Gazette, a British website that covers the news business, print circulation of the top 25 U.S. dailies fell from 4.2 million to 3.4 million over the past year, a decline of 20%.

Especially harrowing was USA Today, which lost 303,000, or 62%. As we all know, the paper is highly dependent on hotel distribution, which took a massive hit during the pandemic. Gannett recently announced that some of USA Today’s content would move behind a paywall.

Correction: I botched one of the numbers and have updated this post.

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