The 7th International Symposium

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The 7th International Symposium on Online
Journalism April 7-8, 2006 The School of
Journalism at the University of Texas at Austin
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• Audience and Business Models
• Will the Online News Industry be Able to Finance
  Quality Journalism?

Gary Meo SVP, Print Internet Services Scarboroug
h Research
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Agenda

• Brief Scarborough overview
• Printed newspaper readership trend
• Newspaper web site audience size and
  composition
• Newspaper company economics
• Things to think about . . . .

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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

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Average-Issue Newspaper Readership
Both daily and Sunday newspaper readership
continues to erode at a slow and steady pace.
Source Scarborough Research Top 50 Markets,
1998-2005
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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

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Newspapers have pioneered the digital world
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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
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Houston Chronicle Extends Its Reach Intothe
Houston Market with chron.com
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Daily Cume 5 Issues Sunday Cume 4 Issues
Base 3,939,303 Adults Source 2005 Scarborough
Report, Houston DMA
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If Chron.com was a radio station, it would be
thenumber one radio station in Houston during
morning drive
The past 7 day audience of Chron.com, compared to
the weekly cumulative reach of the top five radio
stations during morning drive.
Base Houston Arbitron Metro Area (3,805,620
adults) Stations Ranked on Cumulative Morning
Drive Reach Sources Scarborough Research, Sep
04 - Feb 05 (Current Six Months)
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Print and Online are ComplementaryHouston DMA

• Daily Houston Chronicle
  Visited Chron.com
• Avg-Issue Audience Past 30 Days
• Men 107 98
• Women 94 102
• Age 18-49 78 111
• Age 25-49 80 119
• Age 35-49 95 133
• Age 50 142 80
• Less than High School Grad 41 17
• High School Grad 84 62
• Some College 111 112
• College Graduate 146 176
• Post Graduate 148 209
• HHI
• HHI 25,000 - 49,999 84 73
• HHI 50,000 - 74,999 93 110
• HHI 75,000 134 155

Source Scarborough Research, Mar 04 - Feb 05
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. . . 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
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Newspaper Revenue by Type
Source NAA
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Newspaper Advertising Revenue by Type
Source NAA
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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.

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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.

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Thank you for listening
gmeo_at_scarborough.com www.scarborough.com
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The 7th International Symposium on Online
Journalism April 7-8, 2006 The School of
Journalism at the University of Texas at Austin