the 7th international symposium on online journalism april 7-8, 2006 the school of journalism at the...
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The 7th International Symposiumon Online Journalism
April 7-8, 2006
The School of Journalism at the University of Texas at Austin
Audience and Business Models: Will the Online News Industry be Able to Finance
Quality Journalism?
Gary MeoSVP, Print & Internet Services
Scarborough Research
Agenda
Brief Scarborough overview
Printed newspaper readership trend
Newspaper web site audience – size and composition
Newspaper company economics
Things to think about . . . .
Scarborough Research
Local market syndicated study Measures retail behavior, media usage, demographics and lifestyle Ratings service for the newspaper industry
80 local markets measured plus the total U.S.
Two phase methodology Telephone interview, mailed product booklet and TV diary
130+ newspaper subscribers and 500+ advertising agencies
Average-Issue Newspaper Readership
58.6 54.356.9 55.1 55.4 54.1 52.8 51.6
68.263.766.9 65.1 63.6 62.5 61.2 59.6
0
25
50
75
100
1998 1999 2000 2001 2002 2003 2004 2005
Adult Penetration
Daily Sunday
Both daily and Sunday newspaper readership continues to erode at a slow and steady pace.
Source: Scarborough Research Top 50 Markets, 1998-2005
We are talking about Readership, not Circulation
Circulation Number of newspapers sold Audited by the Audit Bureau of Circulations
Readership/audience Number of adults who read the newspaper Measured by survey research
Newspapers have pioneered the digital world
In November 2005, newspaper websites . . .
reached an all-time high of 55 million users
30% increase over November 2004
30% of all active internet users visited newspaper websites in November 2005
unique visitors to newspaper Web sites jumped 21% from January 2005 to December 2005, and page views increased by 43% over that same period
11 of the top 25 national news and information Web sites are newspaper sites
Nielsen Net//Ratings
Houston Chronicle Extends Its Reach Intothe Houston Market with chron.com
47%57%
8%6%
0%
25%
50%
75%
100%
Daily Sunday
Visited Chron.com only, Past 30 days
Houston Chronicle Cume Readers
55%63%
Base: 3,939,303 AdultsSource: 2005 Scarborough Report, Houston DMA
Daily Cume – 5 IssuesSunday Cume – 4 Issues
If Chron.com was a radio station, it would be thenumber one radio station in Houston during morning drive
8.0
8.0
7.9
7.0
6.8
9.8
0 50 100
chron.com
KODA-FM
KLTN-FM
KTRH-AM
KRBE-FM
KMJQ-FM
Base = Houston Arbitron Metro Area (3,805,620 adults)Stations Ranked on Cumulative Morning Drive ReachSources: Scarborough Research, Sep ‘04 - Feb ’05 (Current Six Months)
The past 7 day audience of Chron.com, compared to the weekly cumulative reach of the top five radio stations during morning drive.
Print and Online are ComplementaryHouston DMA
Source: Scarborough Research, Mar ‘04 - Feb ‘05
Daily Houston Chronicle Visited Chron.com Avg-Issue Audience Past 30 Days
Men 107 98Women 94 102Age 18-49 78 111Age 25-49 80 119 Age 35-49 95 133Age 50+ 142 80Less than High School Grad 41 17High School Grad 84 62Some College 111 112College Graduate 146 176Post Graduate 148 209
HHI<$25,000 72 32HHI $25,000 - $49,999 84 73HHI $50,000 - $74,999 93 110HHI $75,000+ 134 155
. . . And with audience comes advertising revenue
Advertising revenue for general market newspaper web sites is expected to reach $2.5 billion in 2006
Newspaper web site revenue will comprise 5% of total newspaper revenue
Newspaper web sites reach affluent, upscale and young audiences
Source: Newspaper Association of America
Newspaper Revenue by Type
19%
81%
CirculationAdvertising
Source: NAA
Newspaper Advertising Revenue by Type
17%
37%
46%
National Retail Classified
Source: NAA
Things to think about . . .
McClatchy buys Knight Ridder for $4.5 billion (32 dailies and internet businesses) In 1998, McClatchy bought the Minneapolis Star-Tribune for $1.4 billion
Washington Post to cut 80 editorial jobs, 9% of its newsroom
Debt ratings for the New York Times Company, Tribune and Scripps have been put under review by Moody's Investors Service, with an eye to downgrades.
Merrill Lynch downgrades Dow Jones from "neutral" to "sell“ on fears of slower than anticipated revenue growth
Block Communications, owner of The Toledo Blade and Pittsburgh Post-Gazette, will close its five-person D.C. bureau, which has operated out of the National Press Building since 1927
In September, the E.W Scripps-owned Cincinnati Enquirer gave buyouts to 15 staffers, decreasing the newsroom from 80 to the current 65. If another five are lost through buyouts, that would mean a 25% reduction in staff since last fall.
Things to think about . . .
The New York Times launches “Times Select” providing access to specific content for a fee ($49.95 a year) and boasts 135,000 subscribers in its first two months.
The St. Petersburg Times has begun offering free private-party classified ads. Individuals can sell personal merchandise through free ads online and in print. Ads may be renewed one time for free and sellers can purchase upgrades to enhance their ads.
The Associated Press and MSN launched the AP Online Video Network providing 40 video clips per day covering national, international, technology, business, and entertainment news.
U.S. newspapers begin to introduce podcasting and vodcasting to reach young people through digital channels.
The Newspaper Association of America reported that total newspaper advertising revenue grew 1.4% in Q4 2005, largely due to spending online. Print advertising revenue was up 0.4% compared to the same period the previous year while online advertising jumped 32.5%.
At the World Economic Forum in Switzerland, New York Times Company Chairman and Publisher, Arthur Sulzberger Jr., said its online product, NYTimes.com, has moved from "ancillary" to being "core" to the company's future.
The 7th International Symposiumon Online Journalism
April 7-8, 2006
The School of Journalism at the University of Texas at Austin