1. It’s Secular There’s Inelasticity Get Transactional

2. It’s Secular $24.8 $34.7 $42.2 $46.6 $47.4 BILLIONS OF DOLLARS YEAR Source: Newspaper Association of America -1.7% -9.4% -17.7% -28.6% -10%?

3. It’s Secular 920 60 50 0 0 (40) (210) (770) Source: Morgan Stanley Research

4. same There’s Inelasticity 7-Day Subscription Elasticity 40% less more -12% VOLUME PRICE

5. There’s Inelasticity Prior to the home delivery price increase, we strategically began to down size our TDMN audience. –Eliminated all outbound telemarketing for new starts –Eliminated all “Billed/Prepaid” new starts through any pressure channel –Introduced mobile handheld technology in all pressure channels and accepted EZpay only starts from all vendors. –Reduced all consumer facing discounts to 15%; increased save discounts to 25%.

6. There’s Inelasticity In May of 2009 TDMN increased NDM 7-day rates 43% and ONDM rates 100%. Below are 4 critical factors to consider prior to pricing: 1.Dramatically reduced churn as the result of acquisition changes made in fall of 2008. Overall churn reduced 34% (from 61% to 41% in 7 months). 2.Engaged the Modeller's in an exhaustive pricing study to determine “pricing cliffs” and the impact content has on a consumers willingness to pay and a consumer perception of value. 3.Launched a live market pricing test with 1,500 subscribers 3 months prior to the market wide pricing. In the live market test we tested 3 unique rates and measured attrition results on the 3-rates. 4.In conjunction with the price increase we increased price to all new subscribers from $30.00 to $33.95. 19% of the current TDMN base is on the “new” subscriber pricing schedule. We did this to reduce attrition in future price increases. Impact of Price on Quality Audience

7. There’s Inelasticity Do the math: 100,000 subscribers x $3.00/per week x 52 weeks = $15,600,000 88,000 subscribers x $4.20/per week x 52 weeks = $19,219,000 Circulation Revenue = + $3.6 million / + 23%

8. There’s Inelasticity p 8 It’s rarely about price alone, though almost always about Value for the Price Let content drive circulation revenue – it’s quite possible that over the years we’ve “cut to the quick” and inadvertently helped readers become more price sensitive Marcom is Queen, but Content is King –Marketing communications that point out all the great things you’ve done, are doing, and plan to do can help reduce elasticity/defection –A blend of real changes and improvements in content and letting people know about them is best

9. There’s Inelasticity p 9 Now is the time to put good, solid content back in your news products because it improves brand image and equity, reduces churn, improves elasticity and can be a significant source of increased incremental revenue. –Hire more writers and staff –Focus on the right type and amounts of content readers want most –Charge the right people the right amount for it –Deliver it in the right platform that readers want

10. There’s Inlasticity Your newspaper price is the consumer’s baseline Consumers will expect to pay less for digital distribution Emerging subscription revenue opportunities in e-editions, e-books, e-pads & apps Comment: Industry move to “paid at any price” is a mistake. Devalues the product.

11. Purchase Consideration Awareness Consideration Purchase Get transactional

12. Get Transactional Do the math: 10 million PV’s/month x $10 CPM x 3 ad units per page x 100% sellout = $3.6 million per year

13. Get transactional 21% Source: Morgan Stanley Research 57% 58% 72% 84% Most important factors in local ad buying *More than one factor could be chosen as #1

14. Get transactional 39% Source: Morgan Stanley Research 27% 26% 21% 14% 9% 6% 4%

15. Get transactional Purchase Consideration Awareness Inventory is exploding Consumer purchases less volatile than ad spend ROI CPM’s under pressure Ad dollars moving online

16. What’s Ahead? Mobile Preprints going digital Right content on each device for every customer. And GET PAID! Reorganize