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Shaping the Future of the Newspaper

Date

Mon - 15.09.2014


Financials

Are international editions a luxury that newspapers with declining circulation can't afford?

In this digital age, increasingly it looks like international print editions are under threat. An article in The Guardian last Sunday speculated that the International Herald Tribune, the global edition of the New York Times, might be about to shut up shop. Author Peter Preston writes that after selling its stake in the Boston Red Sox and its regional newspaper group, getting rid of the Tribune might be the logical next step for the New York Times.

Preston calls the Tribune "very vulnerable" as senior editors are being called back from the IHT headquarters in Paris to other jobs in New York. He notes that the paper "doesn't make money. It struggles to keep circulation over 200,000 worldwide. And, crucially, it doesn't have a website of its own".

The article is based on conjecture (and it should be pointed out, The Guardian's own circulation was 230,108 in December and it has been losing money for some time) but perhaps Preston raises an important point about the cost of printing international editions. When print production everywhere is under threat, it's no surprise that they're the first to go.


Author

Hannah Vinter's picture

Hannah Vinter

Date

2012-01-25 13:54

In July last year, Lord Chris Patten, Chairman of the BBC Trust said that high senior management pay was "one of the most toxic reasons for the public's lack of sympathy for the BBC".

Today it's clear that his concerns have been taken head on, as The Guardian reports that the BBC actually exceeded its 2009 target to cut its top management bill by 25% and its number of managers by 20%.

The BBC has slashed the amount it pays for senior managers by 27%, and the actual number of those managers by 24%.

The deadline for the savings was originally set for 2013, but it was later brought forward to the end of 2011.

The cuts bring the number of senior managers down to 484 as of December 31 2011, compared to 640 in 2009, reports Digital Spy.

According to the BBC's website, it anticipates making savings beyond its original objectives in other areas as well. The broadcaster writes that of a planned £2bn of savings between 2007 and 2012/13, "we have already delivered £1bn of savings in the first three years and are on course to exceed our targets."

Author

Hannah Vinter's picture

Hannah Vinter

Date

2012-01-12 19:53

When AOL bought the Patch network of hyperlocal news sites in 2009, it made a gamble. Towards the end of 2011, it looked like that gamble was not paying off, or at least not as quickly as the internet giant had hoped.

However, according to a press release published today, the number of unique visitors to Patch sites has more than tripled between December 2010 and December 2011.

Business Insider reported last month that it estimated the hyperlocal network had lost about $100 million over the last year. This was despite Patch's target for its first sites to reach profitability by the end of 2011. While a Patch spokeswoman flatly denied Business Insider's figure, reductions to Patch sites' freelance budget last October and the fact that the company was encouraging its editors to work more closely with sales people could be see as a sign that the hyperlocal network was coming under financial pressure, even though Patch President Warren Webster insisted that the changes were not driven by financial conditions.

Author

Hannah Vinter's picture

Hannah Vinter

Date

2012-01-11 18:59

The holiday's over. After being available for free for the past 3 months thanks to a sponsorship deal from Channel 4, The Guardian is set to start charging for its iPad app.

Starting this Friday, current users will be asked to pay £9.99 a month for the app. Not everyone will have to pay right away: new users will be given a seven day trial period before they face any fees, and print subscribers will get the app at no extra cost. But even with these offers, the charge is The Guardian's highest fee for any digital product. The paper's mobile app, by comparison, costs £2.99 for six months, £4.99 for a year and is free in the US.

In an article for Paid Content, Robert Andrews speculates that The Guardian could generate significant revenue if it manages to convert the same proportion of free users into paying subscribers on the iPad and it has done on the iPhone. Andrews writes that The Guardian may be able to convert 47,600 of its current 280,000 active monthly users into paying customers, which would produce £475,000 per month, before Apple takes its 30% cut.

Author

Hannah Vinter's picture

Hannah Vinter

Date

2012-01-10 19:23

The New York Times's paywall launch seems to be off to a fine start, with management proudly announcing 100,000 new web-only subscribers shortly after the launch.

If each of those subscribers stick around and pay $15 a month, that's $18 million of high-margin annual revenue the company just added.

Continue reading on Business Insider

Author

Anton Jolkovski's picture

Anton Jolkovski

Date

2011-05-26 10:43

Dan Walters, the star political columnist at The Sacramento Bee, is not only the celebrated dean of the statehouse press corps in California, he also has been a loyal shareholder for 22 years of the company that owns his paper. But his faith in his employer, McClatchy, has not been rewarded.

After buying his first stock when McClatchy went public at $18.98 a share in 1989, Walters kept accumulating shares as they soared past $74 in 2005 and watched in horror four years later when they plummeted to less than 50 cents apiece.

Continue reading in Editor & Publisher

Author

Anton Jolkovski's picture

Anton Jolkovski

Date

2011-05-12 11:28

The Independent News & Media chief executive, Gavin O'Reilly, on Tuesday warned that advertising revenues will remain flat this year, as the publisher announced plans for a major expansion of its Irish internet business.

INM reported increased operating profits for the year ending December 2010, during which it sold its loss-making UK papers the Independent and Independent on Sunday to Alexander Lebedev.

Continue reading on Media Guardian

Author

Anton Jolkovski's picture

Anton Jolkovski

Date

2011-03-23 10:02

A year ago, co-authoring the "State of the News Media" chapter on newspapers, I thought 2010 would be a year of rebound -- and a test of whether newspapers would reinvest in "developing new lines of business and rebuilding skimpy news reports."

Little of that happened. Advertising revenues declined for the year, 6.4 percent by my estimate. Profits on net earnings hovered around 5 percent. Newsroom cuts continued, though not so severe as those of 2008 and 2009.

Continue reading on Poynter.

Author

Anton Jolkovski's picture

Anton Jolkovski

Date

2011-03-14 18:40

Newspapers are proving so resilient that the term "dying newspaper industry" will be retired in the next year or two.

Newspapers are still profitable, even in the midst of the most punishing ad drought in memory. Readership is at record levels, despite price hikes imposed by publishers. And web interlopers haven't laid a glove on the industry's status as society's dominant news-gatherer.

Continue reading on moneyville

Author

Anton Jolkovski's picture

Anton Jolkovski

Date

2011-02-14 18:04

Metro, the free morning national newspaper, has hinted at record profits of more than £9m in 2010, but ruled out bidding for one of Jeremy Hunt's proposed local TV station contracts. Metro, which is published by Daily Mail & General Trust (DMGT), has an audited circulation of 1.38 million and is distributed across 50 cities.

Continue reading on MediaWeek

Author

Anton Jolkovski's picture

Anton Jolkovski

Date

2011-01-25 19:14

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