More red ink for US newspapers in latest survey

Apr 21, 2014 by Rob Lever
Newspapers are displayed at a newsstand on October 26, 2009 in San Francisco, California

US newspapers suffered further revenue declines in 2013, seeing only mixed success in a transition to digital, according to industry figures.

Total newspaper amounted to $37.59 billion in 2013, a 2.6 percent drop from $38.60 billion in 2012, according to a report released Friday by the Newspaper Association of America.

In one positive sign, the data showed a 3.7 percent increase in circulation revenues to $10.87 billion, helped by digital subscriptions and "paywalls."

The figures showed revenue from all digital sources including , circulation and marketing, rose 5.8 percent and accounted for 12 percent of total industry revenue.

But newspapers continued to see declines in , which has long been their most important revenue source.

Advertising in the traditional printed daily and Sunday newspaper decreased 8.6 percent to $17.3 billion. Digital advertising only partly offset that, rising 1.5 percent to $3.4 billion.

Poynter Institute researcher Rick Edmonds said the overall performance of the industry was the best since 2006.

But Edmonds noted that because the trade association made changes in how it calculates figures, using different sources of revenue in the computation, "total industry revenue figures for the last two years cannot meaningfully be compared to those for earlier years."

"Though digital ad revenue gains again failed to make up for print revenue losses, there was mildly encouraging news on that front," Edmonds said in a blog post.

"Despite continued downward pressure on prices and tough competition from digital giants with virtually no news operations, the industry eked out a gain."

- Not 'calamitous' but unimpressive-

Others say the figures don't tell the full story of the bleak state of the newspaper industry.

"I think what this report says is that the newspaper business has to find ways to innovate itself out of the mess in which it finds itself," says Dan Kennedy, a journalism professor at Northeastern University.

"Although these figures are not calamitous, they are not all that impressive either."

Kennedy said that advertising "is never going to come back in the way it has in the past, because businesses no longer need newspapers to reach their customers. The Internet gives them a lot of different ways to reach their customers."

Alan Mutter, a former newspaper editor who now is a consultant specializing in new media ventures, said total ad revenues for the industry have been cut in half since a 2005 peak at $49 billion.

Mutter said the key problem for newspapers is that they are not keeping pace with the competition for —as most of the revenue shifts to non-media companies like Google or Facebook.

"Digital advertising rose a mere 1.5 percent to $3.4 billion in 2013 at the same time that digital sales surged 17 percent across all digital categories in the United States," Mutter writes in a blog post.

"Back in 2003, newspapers had a 14 percent share of the national digital advertising market. In 2013, they had barely eight percent of the market."

Mutter added that "the ongoing inability of newspapers to compete effectively in this emerging marketplace may be an even bigger problem than the traumatic collapse in print advertising that they have suffered over the last eight years."

Explore further: US newspaper industry revenue fell 2.6 pct in 2013

add to favorites email to friend print save as pdf

Related Stories

US Internet ad revenue surpasses broadcast

Apr 10, 2014

For the first time, U.S. Internet advertising revenue has surpassed that of broadcast television thanks to sharp growth in mobile and digital video ads.

US newspaper ad revenue down 7.3% in 2011

Mar 16, 2012

US newspaper advertising revenue fell 7.3 percent last year to $23.94 billion, according to figures released Thursday by the Newspaper Association of American, continuing a six-year slide.

EMarketer sees 2014 mobile ad spending at $31.5B

Mar 19, 2014

Worldwide spending on mobile advertising is expected to reach $31.5 billion this year, a 75 percent increase from 2013 thanks largely to Facebook and Google, according to a new report by research firm eMarketer.

Recommended for you

Out-of-patience investors sell off Amazon

57 minutes ago

Amazon has long acted like an ideal customer on its own website: a freewheeling big spender with no worries about balancing a checkbook. Investors confident in founder and CEO Jeff Bezos' invest-and-expand ...

States ascend into the cloud

7 hours ago

Seven years ago, the state of Delaware started moving computer servers out of closets and from under workers' desks to create a consolidated data center and a virtual computing climate.

Microsoft drops Nokia name from smartphones

9 hours ago

Microsoft said Friday it was dropping the Nokia name from its Lumia smartphones, rebranding following the acquisition earlier this year of the Finnish group's handset division.

Amazon's loss makes holidays a question mark

9 hours ago

Amazon's trademark smile icon is becoming more of a grimace. The world's largest online retailer reported a wider third-quarter loss than analysts expected and gave a disappointing holiday forecast.

User comments : 3

Adjust slider to filter visible comments by rank

Display comments: newest first

1 / 5 (1) Apr 21, 2014
Newspapers have been obsolete for decades anyway. It's a wonder they've lasted as long as they have.
not rated yet Apr 21, 2014
What is occurring now is as significant as Gutenberg's press.
And will have as significant impact upon society and state as individuals can now bypass the gatekeepers.
What's interesting is how so many 'news' organizations are now essentially state run media spewing propaganda for the state.
Lex Talonis
1 / 5 (1) Apr 21, 2014
What is occurring now is as significant as Gutenberg's press.
And will have as significant impact upon society and state as individuals can now bypass the gatekeepers.
What's interesting is how so many 'news' organizations are now essentially state run media spewing propaganda for the state.

Well said.