Tuesday, July 28, 2009
[IWS] CRS: THE U.S. NEWSPAPER INDUSTRY IN TRANSITION [8 July 2009]
IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Congressional Research Service (CRS)
The U.S. Newspaper Industry in Transition
Suzanne M. Kirchhoff, Analyst in Industrial Organization and Business
July 8, 2009
http://opencrs.com/getfile.php?rid=82207
[full-text, 26 pages]
Summary
The U.S. newspaper industry is suffering through what could be its worst financial crisis since the
Great Depression. Advertising revenues are plummeting due to the severe economic downturn,
while readership habits are changing as consumers turn to the Internet for free news and
information. Some major newspaper chains are burdened by heavy debt loads. In the past year,
seven major newspaper chains have declared bankruptcy, several big city papers have shut down,
and many have laid off reporters and editors, imposed pay reductions, cut the size of the physical
newspaper, or turned to Web-only publication.
As the problems intensify, there are growing concerns that the rapid decline of the newspaper
industry will impact civic and social life. Already there are fewer newspaper reporters covering
state capitols and city halls, while the number of states with newspapers covering Congress fulltime
has dwindled to 23 from the most recent peak of 35 in 1985.
As old-style, print newspapers decline, new journalism startups are developing around the
country, aided by low entry costs on the Internet. The emerging ventures hold promise but do not
have the experience, resources, and reach of shrinking mainstream newspapers.
Congress has begun debating whether the financial problems in the newspaper industry pose a
public policy issue that warrants federal action. Whether a congressional response to the current
turmoil is justified may depend on the current causes of the crisis. If the causes are related to
significant technological shifts (the Internet, smart phones and electronic readers) or societal
changes that are disruptive to established business models and means of news dissemination, the
policy options may be quite limited, especially if new models of reporting (and, equally
important, advertising) are beginning to emerge. Governmental policy actions to bolster existing
businesses could stall or retard such a shift. In this case, policymakers might stand back and allow
the market to realign news gathering and delivery, as it has many times in the past. If, on the other
hand, the current crisis is related to the struggle of some major newspapers to survive the current
recession, possible policy options to ensure the continuing availability of in-depth local and
national news coverage by newspapers might include providing tax breaks, relaxing antitrust
policy, tightening copyright law, providing general support for the practice of journalism by
increasing funding for the Corporation for Public Broadcasting (CPB) or similar public programs,
or helping newspapers reorganize as nonprofit organizations. Policymakers may also determine
that some set of measures could ease the combination of social and technological transition and
the recession-related financial distress of the industry.
Contents
Introduction ...............................................................................................................................1
Industry History.........................................................................................................................2
Industry Conditions.....................................................................................................................4
Industry Cost Cutting: Key to Survival? ................................................................................4
Declining Advertising Revenues, Recession, and the Internet ................................................5
Other Factors ........................................................................................................................7
Alternative News Sources .....................................................................................................9
Rise of the Web...........................................................................................................................9
Interdependence.......................................................................................................................13
Searching for New Business Models ...................................................................................16
Nonprofits..........................................................................................................................18
Public Policy Issues ..................................................................................................................20
Congressional Action ................................................................................................................21
Industry Proposals...............................................................................................................21
Supporting the General Practice of Journalism ....................................................................22
Figures
Figure 1. Change in National Advertising Spending, 2007-2008 ..................................................6
Figure 2. Newspaper Advertising Revenues from 2003- 2008....................................................14
Tables
Table 1. Daily Print Newspaper Readership.................................................................................3
Table 2. Top 20 U.S. Newspapers: Print Circulation ..................................................................10
Table 3. Newspaper Website Readership....................................................................................12
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Congressional Research Service (CRS)
The U.S. Newspaper Industry in Transition
Suzanne M. Kirchhoff, Analyst in Industrial Organization and Business
July 8, 2009
http://opencrs.com/getfile.php?rid=82207
[full-text, 26 pages]
Summary
The U.S. newspaper industry is suffering through what could be its worst financial crisis since the
Great Depression. Advertising revenues are plummeting due to the severe economic downturn,
while readership habits are changing as consumers turn to the Internet for free news and
information. Some major newspaper chains are burdened by heavy debt loads. In the past year,
seven major newspaper chains have declared bankruptcy, several big city papers have shut down,
and many have laid off reporters and editors, imposed pay reductions, cut the size of the physical
newspaper, or turned to Web-only publication.
As the problems intensify, there are growing concerns that the rapid decline of the newspaper
industry will impact civic and social life. Already there are fewer newspaper reporters covering
state capitols and city halls, while the number of states with newspapers covering Congress fulltime
has dwindled to 23 from the most recent peak of 35 in 1985.
As old-style, print newspapers decline, new journalism startups are developing around the
country, aided by low entry costs on the Internet. The emerging ventures hold promise but do not
have the experience, resources, and reach of shrinking mainstream newspapers.
Congress has begun debating whether the financial problems in the newspaper industry pose a
public policy issue that warrants federal action. Whether a congressional response to the current
turmoil is justified may depend on the current causes of the crisis. If the causes are related to
significant technological shifts (the Internet, smart phones and electronic readers) or societal
changes that are disruptive to established business models and means of news dissemination, the
policy options may be quite limited, especially if new models of reporting (and, equally
important, advertising) are beginning to emerge. Governmental policy actions to bolster existing
businesses could stall or retard such a shift. In this case, policymakers might stand back and allow
the market to realign news gathering and delivery, as it has many times in the past. If, on the other
hand, the current crisis is related to the struggle of some major newspapers to survive the current
recession, possible policy options to ensure the continuing availability of in-depth local and
national news coverage by newspapers might include providing tax breaks, relaxing antitrust
policy, tightening copyright law, providing general support for the practice of journalism by
increasing funding for the Corporation for Public Broadcasting (CPB) or similar public programs,
or helping newspapers reorganize as nonprofit organizations. Policymakers may also determine
that some set of measures could ease the combination of social and technological transition and
the recession-related financial distress of the industry.
Contents
Introduction ...............................................................................................................................1
Industry History.........................................................................................................................2
Industry Conditions.....................................................................................................................4
Industry Cost Cutting: Key to Survival? ................................................................................4
Declining Advertising Revenues, Recession, and the Internet ................................................5
Other Factors ........................................................................................................................7
Alternative News Sources .....................................................................................................9
Rise of the Web...........................................................................................................................9
Interdependence.......................................................................................................................13
Searching for New Business Models ...................................................................................16
Nonprofits..........................................................................................................................18
Public Policy Issues ..................................................................................................................20
Congressional Action ................................................................................................................21
Industry Proposals...............................................................................................................21
Supporting the General Practice of Journalism ....................................................................22
Figures
Figure 1. Change in National Advertising Spending, 2007-2008 ..................................................6
Figure 2. Newspaper Advertising Revenues from 2003- 2008....................................................14
Tables
Table 1. Daily Print Newspaper Readership.................................................................................3
Table 2. Top 20 U.S. Newspapers: Print Circulation ..................................................................10
Table 3. Newspaper Website Readership....................................................................................12
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
# posted by SBasefsky : 7:25 AM
