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http://www.latimes.com/business/la-fi-news31oct31,1,2320180.story?coll=la-headlines-business
Newspaper circulations continue to fall
By James Rainey
Times Staff Writer

October 31, 2006

Most American newspapers continue to lose circulation, according to figures released Monday, but an industry trade group and individual publications countered with statistics showing expanding audiences on their websites.

Weekday circulation at 770 newspapers nationwide equaled 43.7 million a day in the six months ended Sept. 30, down 2.8% from the same period last year, according to the Newspaper Assn. of America. Sunday circulation for 619 newspapers declined 3.4% to 47.6 million. The figures came from data collected by Audit Bureau of Circulations, an independent organization.

The Los Angeles Times joined the vast majority of daily newspapers in reporting declines. The paper's weekday circulation averaged 775,766, down 8% over a year earlier, while Sunday circulation fell 6% to 1,172,005.

The Times attributed the declines to changes in two cut-rate programs. In November, the newspaper eliminated free daily delivery to an average of nearly 29,000 Southern California hotel guests.

In January, the paper increased to 45 cents from 9 cents the rate it charges schools to receive the paper under the Times in Education program. The rate hike triggered a drop in school subscriptions to 20,985 copies on an average weekday from 59,472 copies.

The Times is among many papers that have tried to eliminate cut-rate and free distribution in favor of delivery to customers who seek out the paper.

Times executives said they were heartened that weekday papers delivered to homes and sold at newsstands increased 0.3% to 741,665. Such sales of the Sunday paper declined 2.7% to 1,157,332.

"The September statement reflects our ongoing focus on individually paid circulation," Times Publisher David D. Hiller said. "Our vast reach throughout Southern California remains unsurpassed as does our commitment to serving the evolving needs of our readers."

Like other newspapers, The Times has asked advertisers to judge the paper on its readership, which is bigger than circulation because a single print edition of the newspaper can be read by more than one person.

According to survey data, in the latest six-month period The Times averaged 2.2 million readers on weekdays and 3.3 million on Sunday — slightly higher than in the year-earlier period.

Newspaper advocates point to similar figures nationally and particularly note an increase in the audience for newspapers' websites.

The Newspaper Assn. of America reported that an average of 57 million people — well over one-third of Internet users — visited at least one newspaper website each month in the third quarter of this year, a 24% increase over the same period last year.

"Data that measure the expanded audience is precisely what advertisers want to enhance their understanding of consumer use across newspapers' multiple media platforms," John F. Sturm, the newspaper group's president, said Monday in a statement. "Simply focusing on print circulation numbers in a vacuum obscures that understanding."

james.rainey@latimes.com

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(INFOBOX BELOW)

Losing readers

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Large newspapers that reported circulation data for six months that ended in September

Newspaper Circulation Change
USA Today 2,269,509 -1.3%
Wall Street 2,043,235 -1.9%
Journal
N.Y. Times 1,086,798 -3.5%
L.A. Times 775,766 -8%
N.Y. Times 704,011 +5.3%
Daily News (N.Y.) 693,382 +1%
Wash. Post 656,297 -3.3%
Chicago 576,132 -1.7%
Tribune
Houston 508,097 -3.6%
Chronicle
Newsday 413,579 -4.9%

Source: Editor & Publisher

Newspaper Circulations Slide More
Broad Decline May Hasten
Move to Hone Web Focus;
New York Tabloids Log Gains
By EMILY STEEL
October 31, 2006; Page B2

Nearly every major U.S. newspaper suffered circulation declines in the past six months, according to the newspaper industry's twice-yearly report from the Audit Bureau of Circulations, the latest confirmation of the difficulties facing the industry as readers flock to the Web and other outlets for news.

Average daily circulation of the 770 newspapers reporting results to the ABC dropped 2.8% on a year-to-year basis during the six months ended Sept. 30, according to an analysis from the Newspaper Association of America, an industry-trade group. The drop in circulation follows a decline of 2.5% during the reporting period ended March 31 of this year and a 2.6% decline in the year-earlier period. Average Sunday circulation at 619 of the country's newspapers fell 3.4% in the most recent six months, according to the NAA. The circulation figures are preliminary and subject to audit by the ABC.

The circulation report, which comes on the heels of several major publishers reporting weaker ad revenue for the third quarter, is likely to reinforce concerns among investors about the industry's prospects. Those concerns have prompted some investors to push companies such as Tribune Co. to restructure or put themselves on the market.

The weaker circulation numbers may fuel efforts by publishers to adjust their business model to put more emphasis on the Web. Newspaper Web sites increased total audience by an average of 8%, according to an NAA analysis of more than 100 newspapers in the nation's top markets.

Some of the biggest declines occurred among the nation's large metropolitan daily papers, including several that have either changed hands or whose future business model is in doubt.

Tribune's Los Angeles Times posted the biggest percentage decline among the nation's top 25 papers, reporting an 8% six-month drop in total paid circulation to 775,766 compared with a year ago. Tribune's board is exploring a sale of the company, under pressure from shareholders unhappy with the company's stock price. Tribune's other major papers reported slightly smaller six-month declines: Chicago Tribune's circulation fell 1.7% while Newsday was down 5%.

Total paid circulation at the Philadelphia Inquirer, a former McClatchy Co. paper purchased this year from Knight Ridder Inc. and then sold this summer to an investor group led by Brian Tierney, chief executive of Philadelphia Media Holdings LLC, dropped 7.6% to 330,622.

At New York Times Co.'s Boston Globe, circulation dropped 6.7% to 386,415. Speculation about the Globe's future intensified last week after it emerged that former General Electric Co. Chairman Jack Welch had discussed with a group of Bostonians the possibility of launching a bid for the paper. The Times hasn't given any indication of wanting to sell the Globe, saying yesterday it views the paper as an important asset.

National newspapers managed less significant circulation drops. Gannett Co.'s USA Today retained its status as the nation's largest-circulation newspaper with total paid circulation at 2,269,509, down 1.3%. The Wall Street Journal, the nation's second-largest paper, published by Dow Jones & Co., reported a 1.9% decrease in total paid circulation to 2,043,235. The New York Times, the country's third-largest paper, saw its circulation decrease 3.5% to 1,086,798.

Several papers, including the Journal and Los Angeles Times, said "individually paid circulation" -- excluding bulk sales to offices, hotels and other places -- reflects a more accurate picture of circulation for advertisers. Individually paid subscriptions increased 9.2% to 1.428 million at the Journal, compared with last year. Daily individually paid circulation at the Los Angeles Times increased 0.3% to 741,665.

Of the nation's top 10 newspapers, only New York's tabloid rivals -- New York Post and New York Daily News -- reported higher total paid weekday circulation. With a 5.1% increase to 704,011, News Corp.'s New York Post emerged ahead of its rival New York Daily News, which reported a 1% increase to 693,382 in total paid weekday circulation. The New York Post's increase in circulation pushed it ahead of the Washington Post as well and made it the country's fifth-largest daily. The Washington Post's circulation fell 3.3% to 656,297.

The Chicago Sun-Times and Dallas Morning News didn't file data, pending the completion of their next six-month audits.

Write to Emily Steel at emily.steel@wsj.com1
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