Newspaper circulation decline

Two things strike me about the recent newspaper circulation figures as pointed out by a 72-page Prudential Equity Group report. From a Dow Jones story.

Prudential also found the circulation figures for copies that aren't paid for by readers, such as newspapers distributed to hotel guests, jumped 34% for the audit period through Sept. 30, compared with the same period in 2003.

And this:

Longer term, Prudential expects a bigger shift by publishers away from circulation as a significant revenue stream. For the nine publishing companies that break out circulation revenue, circulation accounts for less than 19% of total revenue.

Think about that for a moment. It explains a lot about newspaper indifference to their declining readership as they pursue their political agenda. The model that most closely resembles the newspaper industry is the television industry where lack of viewers doesn't bother them in the least. Their revenue stream is advertising. Why advertisers continue to pay exhorbitant rates for fewer and fewer viewers or readers isn't hard to understand. There is no where else for them to go.

The report also noted the peculiar performance at the Los Angeles Times. [bolding mine]

In the below-average category, the L.A. Times experienced an overall circulation decline of 5.6%. Full-paid home delivery was down 10.8%, much worse than the 2.4% national average, the report said. Home-delivered copies through third party sales decreased "significantly," said the report.

The report noted a curious trend at the Times regarding other-paid circulation, calling the fluctuations and changes "peculiar." As one category drops another gains, with the rough total remaining constant. "A 158% increase in discounted copies also signals to us more trouble with circulation and selling at the cover price," the report said.

For those of us who know the Los Angeles Times, none of this is a surprise.