The Audit Bureau of Circulation has released the bad news about newspaper circulation. Both the Houston Chronicle and the NY Times carried stories on Tuesday. The Chronicle reported this a drop of “14.2 percent daily and 6.3 percent on Sundays in the April-September period, compared with the same six-month span in 2008.”
With advertising revenues dropping, publisher Jack Sweeney said the new strategy is to get readers to pay more:
“Revenue from circulation needs to carry a bigger portion of our business going forward, so prices continue to be increased,” Sweeney said. “Even with increases of over 30 percent across all delivery options, Chronicle daily delivery still is only 73 cents a day. With a stamp currently costing 44 cents to deliver a first class letter, a copy of the Chronicle at your door is quite a value.”
Well, yes, but….
Joe Leydon sent an interesting story quoting Times publisher Arthur Sulzberger, who compared print to the Titanic. Even if the Titanic had not hit the iceburg, it was going to go out of business because of the airplane, he said.
Newspapers face the challenge of how to master the digital technology, and here’s what I think the problem is. The core task of reporting and editing the news remains. But how to deliver it?
That’s the realm of digital technology and I’m wondering if newspapers have the world’s best computer engineers and other digital innovators working for them. I doubt it. They’re all over at Google and Microsoft and Apple making the big bucks. The Chronicle’s search engine is notoriously clunky. Sometimes you can’t find a story on the web the day it is printed because the webpage has crowded it off. And Internet readers don’t have much patience. Newspapers are not leading in digital technology, they are still using it as an afterthought.
Newspapers are going to have to invest heavily not just in technology but in the creative people who can do things with technology, just at the point they are losing money and firing editorial people. They probably need to spend a lot of money on digital innovation. That’s where the opportunity lies.
About fifteen years ago when film cameras were still in action and the digital transition was not complete, most professionals used Nikons. Nikon built the most durable cameras with the best optics. But Canon saw that the camera was no longer an optical device to print images on film. It was an optical device to convert light into pixels. The best camera was going to be the camera with the best computer inside. Canon surged ahead of Nikon and Nikon has been trying to catch up ever since.
Of course, it took about sixty years for airplanes to wipe out the passenger steamship business. The changes in newspapers are happening much faster.