US News Media ‘Flailing And Floundering’ – Robert Thomson, WSJ Managing Editor

Philip M. Stone April 28, 2009

Weekday US newspaper circulation dropped 7.1% from the same six-month period a year ago – the percentage of decline becoming far worse with each reporting period according to the Audit Bureau of Circulations (ABC) – and only The Wall Street Journal among the top 25 highest circulations recorded an increase on its own merits, albeit just 0.6% to 2.1 million copies, but an increase all the same.

(The Denver Post reported a big increase, but that was because of the demise of the Rocky Mountain News, but overall 17% fewer daily newspapers are now being sold in Denver than before The News closed. The Post only listed its average since the demise at the end of February whereas everyone else is based on a six-month average).

Even with the WSJ’s circulation success and the bragging rights that entails, it still sounds rather harsh for Managing Editor Robert Thomson, who is also editor-in-chief of Dow Jones, to blast, “While other news organizations are flailing and floundering, the Journal is increasing its reach and influence.”

Thomson obviously isn’t concerned about niceties but then he can boast what none of his other major peers can. In an April interview with The Australian newspaper, also Murdoch owned, he said he saw the demise of US newspapers such as in Seattle and Denver to be opportunities. "I think we are benefiting from that. One of the reasons our core circulations are rising so strongly is because papers around America are diminishing," he said.

US newspapers this year are being hit by 30% drops in advertising revenue, and the WSJ is not immune by any means, but at least people are continuing to read its print edition while online it keeps adding to the subscriber base.

Thomson said in The Australian interview that while the editorial focus of The WSJ has diversified away from being strictly financial that has not been at the expense of business coverage. “It's at the heart of what we do. But at the same time there's a growing constituency of readers that are somewhat interested in business but very interested in the world, so the paper has a lot more now for them. The coverage of the US and the world has improved dramatically and the look and feel is more engaging. And we are trying to group stories in ways that make more sense to readers. And there's more cross-referencing -- simple techniques that make reading the paper more interesting for readers." 

Which is why back in March we asked, “Is The Wall Street Journal Becoming A High-Brow USA Today?” and it would seem in this day and age that may just be what print readers want.

Thomson credits the WSJ’s continued brand success to being on many platforms, but that seems a bit at variance with what his boss, Rupert Murdoch, seems to think. In a preface to a report published by the World Association of Newspapers, Murdoch wrote that print’s success “will still depend on the bond of trust between readers and our content, not on how many platforms we use.”

And he warned in the Innovations in Newspapers 2009 World Report that complacency is the biggest threat to newspapers, not new technology. “It is the complacency in our industry among people who have enjoyed monopolies, who have to compete for an audience they once took for granted, who don’t trust their audiences and who have not responded constructively to challenges from readers who no longer think editors are omnipotent oracles," he wrote.

"If we earn the trust and loyalty of our readers, good newspapers, and their
electronic siblings will become even stronger news brands. They may not
always be thrown over the fence each morning but their impact will continue
to resonate in the communities they serve. Our role is to give our readers great journalism and great judgment. I am convinced circulation and readership will grow on web pages, through RSS feeds, in e-mails, on mobile devices and in printed newspapers."

Be that as it may, the ABC figures were truly awful. Look at the trend this way – in this six month reporting period total daily US circulation dropped 7.1%, in hard numbers that is down 2.62 million copies to 34,439,713. At the same time last year the percentage decline was 3.6% so this March’s dip is double in percentage terms. By comparison, last September’s fall for the preceding six months was 4.85%. What worries everyone, of course, is that there currently is absolutely no light at the end of the tunnel so just how bad will the next September figures be?

And some of the declines were really staggering. Staying with the Murdoch empire, his New York Post dived a full 20.55% to 558,140 from 702,466. Anyone wondering what can happen to a tabloid newspaper in a competitive market when its ridiculously low newsstand price is doubled from 25 cents a copy to 50 cents now has the answer! At arch-rival New York Daily News circulation dropped 14.26%, which then makes the 3.55% drop for the New York Times look like a really good six months!

It’s always fun to see the spin newspapers put on their own fortunes. The Chicago Tribune saw its daily circulation drop 7.4%, but that figure was nowhere to be found in its news release; rather it merely mentioned the weekday and Sunday circulations  “reflect declines over last year.” Instead, the release dwelled upon how The Tribune’s Interactive site traffic increased its unique visitors by 27% and that the total weekday circulation for all of the group’s various  print entities when taken as a whole  remained “steady”.

What they should be asking themselves in Chicago, Los Angeles and all the other Tribune newspapers is whether the vast efforts put into redesign at each newspaper last year did any good?  The Los Angeles Times, for instance, was down 6.55%.

It should not be forgotten, however, that some circulation losses across the US were planned, publishers dumping distribution to outlying areas that were money losers.

But at USA Today the main reason for its 7.46% circulation loss to 2,112,725, is the drop in hotel and motel guests that has cut into bulk sales. And it is going to get worse with Marriott’s announcement that rather than automatically dropping newspapers outside each room a guest must now order a newspaper at check-in or none will be delivered. 

The WSJ is now knocking on USA Today’s door to become the largest US circulation newspaper with just 31,536 daily copies now between them. Who do you believe will be top dog come the September ABCs?