As the Internet continues to gain popularity as a source of news and entertainment, so-called “old media” outlets such as television networks and newspapers are steadily receding into the background. In April, newspapers in the US reported circulation decreases of 3.6% on average, according to Bloomberg.com.
One of the hardest hit major newspapers in the US was the Los Angeles Times, which reported a 5.1% fall in circulation over the last six months. The New York Times also lost readers, reporting a 3.9% drop in circulation in the same period. Overall, US newspaper circulation dropped from 42.6 million in the spring of 2007 to 41.1 million in March of 2008.
The only two major papers not to show a decrease were the Wall Street Journal and USA Today. In fact, USA Today actually gained readers, reporting a .3% increase in circulation over last year, though their results were certainly not representative of the industry as a whole.
Newspapers representing large metropolitan areas have seen the greatest declines in circulation over the past year. The Washington Post, the Chicago Tribune, the Detroit Free Press and New York’s Newsday were some of the hardest hit. The Dallas morning news even reported a profit-slashing 10.6% decline in circulation, with the Boston Globe close behind with an 8.3% decrease.
For the newspaper industry as a whole, these numbers represent an escalating trend; more consumers are turning to the Internet for their news and dropping their subscriptions to local papers. In fact, the newspapers which fared the best over the past year were national brands like USA Today and the Wall Street Journal that are not limited to one specific metropolitan area.
With circulations decreasing and this rate, it is looking increasingly inevitable that some major US cities will wind up without a daily newspaper at some point. It’s hard to imagine, but in the not-too-distant future, large cities such as Detroit, Dallas, or Atlanta may wind up without a daily paper.
But forward thinking publishers are taking steps to increase their online presence, in preparation for the day when it is no longer economically viable to publish newspapers. The New York Times, for example, has greatly expanded its online presence, as has the Wall Street Journal, the San Francisco Chronicle and the Washington Post.
The writing on the wall is very clear: if these “old media” publishers are going to survive, they are going to have to morph into “new media” publishers– and very quickly.
