Wednesday, November 10, 2004

Good news for blogging and the Internet

According to a report conducted by Deutsche Bank's Paul Ginocchio, "High-quality circulation continues to erode rapidly, though not as badly as anticipated, reports Editor & Publisher's Jennifer Saba. "In a follow-up to his analysis over the summer, Ginocchio found that for the six-month period ending September 2004, more-than-50%-paid circulation for the industry declined 4.9%, versus 4.7% in March 2004 and 3.3% in September 2003.The "other paid" category, which represents employee, educational, and third-party copies, is rising fast. It now represents 10.3% of all circulation, as opposed to 4.8% two years ago." In "Circulation Uncensored II," Ginocchio examined 57 of the largest U.S. newspapers and broke out the numbers by category according to ABC reports. The study shows that while overall circulation is decreasing only slightly, it's being propped up by lesser quality circ, considered in the industry to be less-than-50% paid. Three companies in particular are vulnerable to this trend and may not see the typical 2% to 4% ad rate increase in 2005. Knight Ridder, Tribune, and Dow Jones "struggle the most with the highest-paid category of circulation, with declines much greater than the 57-paper average," the report said. The companies that faired the best: E.W. Scripps, with a decline of 1.3%, Media General, with a drop of 1.6%, and McClatchy, with a decrease of 0.9%."

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