1 Newspapers Chapter 4 © 2009, The McGraw-Hill Companies, Inc. All rights reserved.

2 CHAPTER OUTLINE History Newspapers in the Digital Age Defining Features of Newspapers Organization of the Newspaper Industry Newspaper Ownership Producing the Print and Online Newspaper Economics Feedback

3 HISTORY Newspapers have had a long history in the US

4 Journalism in Early America General features of colonial newspapers –Few newspapers existed –Publishers were printers and postmasters –News was not very timely –“Free press” concept not supported Noteworthy colonial newspapers –Publick Occurrences both Foreign and Domestick –Boston News Letter –New England Courant –Pennsylvania Gazette

5 The Beginnings of Revolution Tension between Colonies and Britain Truth as libel defense (John Peter Zenger trial) Political or Partisan press –Newspapers openly support party, faction, cause –Held role in Revolutionary War

6 The Political Press: First Amendment, 1971, guarantees press freedom Papers grew rapidly, read mostly by wealthy Anne Royall: first important female political journalist Freedom’s Journal: first Black newspaper Cherokee Phoenix and Cherokee Advocate: written in Cherokee and English

7 Birth of the Mass Newspaper Prerequisites for mass press –Fast, cost-effective printing presses –Critical mass of literate people –Mass audience

8 The Penny Press In contrast, other newspapers cost 6 cents Examples –New York Sun, New York Herald –New York Tribune, New York Times The Penny Press changed –Basis of newspaper economic support –Distribution pattern –Definition of news –How news was collected

9 Newspapers Become Big Business Civil War and development of telegraph changed how stories were written –Lead –Inverted pyramid Huge growth in US population, and newspaper readership Key players in the newspaper industry –Joseph Pulitzer –E.W. Scripps –William Randolph Hearst

10 Yellow Journalism Yellow journalism: increased use of sex, murder, self-promotion, and human interest stories Positive impact –Enthusiasm and energy –Professional writing –Aggressive reporting and investigative journalism –Layout and display elements that characterize modern journalism

11 The Early Twentieth Century Consolidation of the newspaper industry Circulation and profits increased, but number of daily papers declined due to –Equipment and supply costs –Advertiser preference for big chain newspapers –Growth of chain newspapers Jazz journalism –Tabloid size, lavish use of photographs

12 The Impact of the Great Depression Social and economic impact on newspapers –Many dailies went out of business –Radio emerged as competitor for advertising dollars

13 Postwar Newspapers After World War II, economic forces affected the newspaper industry –More consolidation –Growth of chain newspapers –Few cities with competing newspapers –Media conglomerates control print and electronic media –Television emerged as competitor for advertising dollars

14 Contemporary Developments 1980s: USA Today influenced –Graphics and colors –Short stories –Graphs, charts, tables –Factoids Decreasing circulation Competition from web and new media Shifts in social and market conditions

15 NEWSPAPERS IN THE DIGITAL AGE The newspaper industry is still experimenting with how best to incorporate an online presence

16 Online Newspapers Vary in size and complexity Advantages over print newspapers –Not limited by news hole size –Can be updated continuously –Interactive –Provide visual and audio content –Can offer social networking –Can feature user-generated content

17 Replica Editions Not the same as online editions –Look the same as traditional editions, with same content –Read on a computer screen –Advantages and disadvantages

18 Mobile Media Newspapers can be delivered to a person rather than a place Cell phones, PDAs, laptops Advertising and marketing potential significant

19 User-Generated Content Citizen reporters Workshops teaching readers about reporting Citizen journalists may not be objective or knowledgeable

20 DEFINING FEATURES OF NEWSPAPERS Diverse array of content Conveniently packaged Local Historical record Watchdog role Timely

21 ORGANIZATION OF THE NEWSPAPER INDUSTRY There are various ways to categorize the newspaper industry, including by their publication frequency and their appeal

22 Print Dailies Circulation decline continues Circulation = subscription + vending/newsstand sales Categories of newspapers –National newspapers –Large metropolitan dailies –Medium-sized dailies –Small-town dailies

23 Print Weeklies Number of weeklies has remained stable Circulation totals have increased Rising production costs

24 Recapturing Readers Eye appeal Writing style Story content Giving free tabloids to younger readers

25 Special-Service and Minority Newspapers African-American press Spanish press Varied ethnic newspapers College press

26 Organization of Online Papers Paid access Registration access Free access

27 NEWSPAPER OWNERSHIP Consolidation is increasing. The biggest newspaper group owners are the Gannett Company, the Tribune Company, the New York Times Company, McClatchy Company, and Advance Publications

28 The Decline of Competition Increasing concentration of ownership Decreasing number of cities with competing papers Joint-operating agreements (JOAs) allow competing papers to merge all departments except editorial staffs –Requires approval of Justice Department

29 The Pros and Cons of Group Ownership Cons –Less diversity of opinion –Absentee ownership –Less local concern –Profit motive –Avoid controversy Pros –More resources support more staff and facilities –Can do more public service

30 PRODUCING THE PRINT AND ONLINE NEWSPAPER Convergence has appeared in print and online newspapers

31 Departments and Staff Departments –Business –Production –News-Editorial Operational Convergence Staff –City editor –Wire editor

32 Prepublication Routine Sources of news –Local reporting –Wire services News hole Print papers are laid out and printed Online newspapers –News hole not applicable –Deadlines and limits on graphics not applicable Convergence: reporters prepare stories for online and print

33 ECONOMICS Business model is changing Two main revenue sources –Advertising –Circulation Cost-cutting Online readership up

34 Advertising Revenue Print versions of newspapers –Local advertising –Classified advertising –Preprinted inserts –National advertising Online versions of newspapers –Banner advertising –Display advertising –Classified advertising

35 Circulation Revenue Subscription and single-copy sales –Distributors receive some of the cover price –Price of newspapers may hurt circulation –Online newspapers can charge subscription fees –Online newspapers can charge for access to back issues

36 General Expenses News and editorial costs Generating advertising sales Mechanical costs Printing costs Circulation/distribution costs General administration Online papers –Minimal production/distribution costs –Software, hardware, server costs

37 FEEDBACK Circulation figures are very important to the newspaper industry

38 The Audit Bureau of Circulation (ABC) ABC audits about ¾ of all US and Canadian print media Nielsen/NetRatings report on online audience size

39 Newspaper Audiences US total newspaper circulation: about 53 million copies daily Declining since 1970 despite population growth –Especially 18-44, urban, lower education –Reasons for decline include increased mobility increased prices decreased literacy competition from other media