The Future of Newspapers

Do New Free Dailies
Mean Sun Is Setting
For Paid Newspapers?

By JOSEPH T. HALLINAN
April 5, 2006; Page B1

BALTIMORE -- When the Baltimore Examiner, America's newest daily newspaper, hits 250,000 stoops and driveways here today, it will boast a bigger circulation than the 169-year-old Baltimore Sun.

Of course, no one is sure what that quarter-million papers will really mean to advertisers because they will be delivered unsolicited and at no charge.

But as newspapers struggle to woo advertisers and keep readers in the Internet age, the Examiner stands out as arguably the boldest experiment yet in America's deepening flirtation with free daily newspapers.

"Can a mature subscription-based daily paper -- even one as respected as the Sun -- be vulnerable to an upstart that's giving news away?" says Thomas Kunkel, dean of the Philip Merrill College of Journalism at the University of Maryland. "It really and truly is a very interesting and open question."

Free commuter papers -- some started by established publishers such as Tribune Co. and Washington Post Co. -- have spread to Boston, Chicago, New York and Washington. And the Examiner's Denver-based parent, privately held Clarity Media Group, has launched breezy, tabloids similar to Baltimore's in San Francisco and Washington.

Story continues at http://online.wsj.com/public/article/SB114....html?mod=blogs

This post has been edited by mobyfan on Apr 6 2006, 12:29 PM

This is my first attempt at a poll -- I'm not sure how to make the choices more user friendly. It doesn't leave room for responses and discussion.

Great poll, Pam!

I don't think newspapers are dead yet. If there comes a point at which we have total wireless coverage and little mechanisms for accessing the web and reading newspapers online that are easy to read and search, and you could take them on the bus, etc., then there's a good chance newsprint might get a little more scarce.

I also have to say I think there's room in the market for larger paid dailies, that tend to have good international and national coverage, and local free papers that tend to have good coverage of local issues. I think there will be people for a long time who just prefer holding the newsprint in their hands.

There's a great article in last week's New Yorker about this issue. The profit margin for newspapers right now is something like 28%, which is outrageously high for most industries. The problem is that investors now want profits to increase that year. When your profit marginis already that high, that's really hard to do. It's a question of getting investors to change their expectations of the industry.

I don't understand why they haven't been free sooner. They get advertising revenue and their advertisers want the paper on everyone's porch. If they make the paper interesting, then people will read it.

FYI I can get the featured story, that I used to pay for, free on the internet and the paper is delivering it to me twice a day. I can read not only today's opinion piece but pieces from previous days I missed. Why pay?

Penny pincher, yellow pages, internet all being delivered for free and subsidized by advertisers who want the attention.

Joe, in order to afford to pay reporters who do investigative journalism, which is where some of the most important work happens, newspapers need to have paying subscribers. Free daily papers have local news, but they can't afford to uncover problems and injustices in the civic system like the major papers can.

I like the New York Times's new online subscription model. You can read almost all the news articles for free anytime, but for $40-$50 a year, you can read all the op-ed pieces, have access to great video content, and get a preview of each week's Sunday magazine. This helps support them, leaves the bulk of the information available to the public, and the price is very reasonable.

I would like to chime in on the pay vrs free newspaper subscription.

Don't really remember how much I pay for the paper -- my guess is $150 a year -- but what we need to know is how much of the subscription goes to profit. What with delivery costs and all, how much do they actually keep.

Perhaps the paid subscriptions is really just a tried and true method to know their circulation so that they can price advertising.

I buy ads and the subscription base is an important consideration.

The free alternative weeklies, like the Metro -- while free -- also audit their readership...seens ti work for them.

You've raised a couple of really interesting point, Dana. It would be very interesting to know where our subscription money goes.

It totally makes sense that subscriptions are a great way to judge the amount and the precise location of steady readership, and that this can influence how much you can charge for ads. My question is: instead of subscription numbers, wouldn't it be more accurate for a paper just track distribution numbers? I suspect that the purpose of subscriptions is actually to secure somewhat predictable income (beyond the factor of convenience for regular readers).

when the price gets right, and IT IS FOOTBALL SEASON, I always subscribe for significantly less that reg. For example, I usually pay $1/week (less than sunday paper) for seven day service. I get it from direct mailings, grocery store solicitations or online. Regular price is $18/month I believe.

I believe the price is for delivery. I think they pay for their writers and bureaus thru advertising. It is $3000/page to Macy's, Frys, etc.....That is the equivalent of almost 5000 households/day of subscriptions per page of advertising. There are hundreds of ads a day. I deduce the subscriptions are a small amount of the revenue for the paper.

Craiglist killed their money maker, classifieds. I don't feel sorry for them as they have always been overpriced for classifieds. They still have the nerve to overcharge.

I love my Mercury News. I used to deliver when it was the San Jose News, an afternoon daily. I really love the writers in the Sports section.

I hope not as I've been reading a newspaper pretty much everyday for about 30yrs now (helps w/ Trivial Pursuit!). As Mary said, they can't be free or it will alter the dynamics of journalism, advertising, subscriptions & civic accountability. But what you pay is often subsidized as it barely covers the cost of delivery. I still subscribe to the Chronicle even though it is somewhat crappy for a big city paper & not much better than the Merc which is an excellent regional paper. The Chron HAD an incredible 52-week Wed-Sun subscription for $25, it's now $40 but still hard to beat for a year's worth!

True you can get everything free online now but the experience of starting your day every morning with a fresh cup of coffee & a delivered paper is irreplaceable!

I subscribe to the Mercury News at a rate of $26 for half a year. The subscription was originally just for the Sunday paper but they upgraded me to all 7 days at no additional charge. I love the Merc (as a Bay Area native, I've been a lifelong fan) but I just don't have time to read the newspaper most days so it actually clutters up my house. If I do read the Merc, I scan the website online.

I've seen this price advertised a lot in the advertising that comes in the mail, as well as on their website. $1 a week is pretty reasonable as the Sunday paper costs $1.19 at Walgreens. I figure I more than make up that $1 with all the ads, coupons, and sales that come in the Sunday paper.

I subscribe to the Merc News daily and really enjoy reading it cover to cover. I find that the news coverage is up to date and current, and that's important.

I also enjoy doing the jumble daily, and when so moved, the crossword puzzle.

I also find that the business listings are helpful when looking for a repairman.