Daily paper Financial matters.


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Rivalry confined to separated daily papers for unmistakable groups of onlookers ... Most extensive urban communities used to have contending daily papers, morning & evening ...
Transcripts
Slide 1

Daily paper Economics Principal highlights

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Firms and markets Newspapers a $59 billion industry Most dailies have syndication markets Competition limited to separated daily papers for unmistakable gatherings of people

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Newspaper proprietorship Historically singular/family Now vast chains own most Tribune, Gannett, McClatchey, Knight Ridder, and so on Only 25% not possessed by chains

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Competition Most extensive urban areas used to have contending daily papers, morning & evening Now most have one and only real daily paper

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JOAs joint working assentions Newspaper Preservation Act of 1970 2 papers work certain business angles together E.g., squeezes, grouped promotions, dissemination Exempt from antitrust laws

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Advertising "the fuel that makes broad communications run" Establishes the "news gap" Newspaper sponsors target mass instead of fragmented crowds Makes rivalry for all intents and purposes inconceivable.

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Advertising Newspapers get ~27% of all publicizing dollars, the biggest sum spent on any medium.

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High expenses of passage innovation costs promoter inclinations

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Financial Performance Very beneficial with high resource values Average 100,000 dissemination daily paper makes a 15.6 percent yearly pre-charge overall revenue

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Dual item showcase: deals & advertisements 2/3 of substance is publicizing Circulation income represents 20-35% of incomes. Article content records for just 16% of costs

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Cost Structure Printing 30-35%, of which half is for newsprint. Appreciate substantial economies of scale

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Government Aid Exemptions from daily paper and publicizing deals charges. Administrative help from pay and hour laws. Postal rate points of interest Antitrust exclusions for JOAs

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