Optimism returns to U.S. newspaper industry

Press, 27 April 1983, Page 22

Optimism returns to U.S. newspaper industry

NZPA Washington Newspapers in the United States are strong and competition from radio and television is waning, say executives at a meeting’ of the American Newspaper Publishers’ Association in New York. Total circulation rose a million a day last year, and advertising revenues were up in spite of the recession. A trend to merge afternoon and morning papers is likely to continue, the executives say, but last year saw the birth of a new national paper, “U.S.A. To-

day,” printed in several centres with a colourful format and short articles, and a new morning paper in the capital, the “Washington Times,” a conservative newspaper published by the Unification Church. The “New York Times” reports newspaper industry leaders, as saying that the most immediate threats of electronic competition have receded and that newspapers are ready to reclaim ground lost to television and other contenders for readers’ time and loyalty.

Mr William Marcil, the president of the association,

said that articles about the closing of some newspapers and financial problems of others had created the impression that the entire industry was in trouble — “but the industry was strong then and it is stronger now.” Patterns are changing — morning sales overtook evening sales last year, and Sunday papers are proliferating: there were 768 of them last year, compared with 586 in 1970. The strength of the newspaper industry is reflected in the stock markets. Prices of the 13 publicly-traded

communications companies are reported to have risen 75 per cent since last August, compared with a 43 per cent rise for the New York Stock Exchange composite index. Part of the new strength lies in use of new technology to make newspapers more colourful and allow them to play late-breaking stories and late sports results.

The economic base has improved too — newsprint prices are down to SUS47O a ton from SUSSOO in 1981, and unions have given up benefits written into their contracts to aid the survival of newspapers in danger. The number of morning papers in the United States increased from 323 in 1973 to 399 last year, while the number of evening papers dropped from 1431 to 1277. The number of all-day papers (those that publish successive editions throughout the day) — rose from 20 in 1973 to 34 last year. Circualtion last year totalled 62.4 million copies a day. The “New York Times” quotes industry sources in cities where competition is keenest as saying they see new signs of strength that diminish the likelihood of a new round of closings. Changes are more likely, it says, in cities where both newspapers are owned by the same proprietor. These may not necessarily be closing, though: in some cases reporting staffs have been merged and in others the business and printing sides have been merged while the reporters continue to compete.