• Home
  • About me: Jim Fitzpatrick
  • Contact

JimmyCsays: At the juncture of journalism and daily life in KC

Feeds:
Posts
Comments
« Quinton Lucas is way off base on one important issue, and he just ducked another
One of the most intriguing Derbies ever — and racing officials came to the right conclusion »

Gulp…The Star’s print circulation freefall continues

May 2, 2019 by jimmycsays

One of my difficult duties as self-anointed watchdog of journalism in Kansas City is to track circulation at The Kansas City Star, from which I retired as an assignment editor in 2006.

I say difficult because, as everyone knows, circulation of print newspapers has been steadily dropping since it peaked, nationally, in the mid-1980s.

I don’t know what The Star’s circulation was back then, but I can give you some figures from more recent times.

:: In 2004, Sunday print circulation was about 388,000.

:: By 2010, the number was down to about 283,000.

:: Last August, it stood at about 80,000.

:: As of Dec. 31, 2018, the number was 67,889.

That’s what you call a cliff drop. It’s also the main reason executives at parent company McClatchy have been mulling when to call a halt to the blood-letting, ceasing print publication and going exclusively digital.

Rumor has it that could occur in 2020. McClatchy CEO Craig Forman was asked about that in a conference call a few months ago but wouldn’t comment.

On May 9, McClatchy executives will have a conference call to announce the company’s financial performance for the first quarter of this year, and it wouldn’t surprise me if Forman is asked about that again; it’s the elephant in the room.

For years, McClatchy executives have stressed the future of its journalism lies in transitioning from print to digital. The problem is they haven’t been very successful at it, and there are few indications that they’ve found the combination to the lock.

According to the Alliance for Audited Media, a newspaper trade group, The Star had only about 12,300 stand-alone digital subscribers on March 31 of this year. (Print subscribers automatically get the digital product.)

In fairness, many other metro dailies are having similar problems making the transition. The Los Angeles Times, for example, has only 160,000 digital subscribers, and that is in a metro area of 15 million. More successful has been The Boston Globe, which has more than 100,000 digital subscribers in a metro area of 4.7 million.

(Far and away the most successful paper, in terms of digital subscriptions, is The New York Times, which has more than 2.6 million online subscribers.)

A positive for both The Globe and The LA Times is that they are now privately owned, and their owners are free of the pressure that comes with ownership by companies whose stock is publicly traded. As Jeff Bezos has done at The Washington Post, Patrick Soon-Shiong, who bought the LA Times for $500 million last June, has invested heavily in The Times and is willing to lose tens of millions attempting to rebuild and revive the paper in his vision. He has said his goal is to have 2 million to 4 million digital subscribers by 2022 or 2023.

No such investment will be forthcoming, however, at publicly owned companies like McClatchy, Tribune Publishing (Chicago Tribune and other papers) and Gannett, the largest newspaper chain. Those three companies appear to be holding weak hands, with no good options for getting new cards. For that reason, speculation abounds in the industry that those companies might be in play for some sort of consolidation.

McClatchy made an unsuccessful run at Tribune last year, so it is now more likely to be in the category of the pursued than the suitor. Further complicating the picture, hedge funds are — or have been — knocking at the door of two of those companies. Alden Global Capital attempted a hostile takeover of Gannett in January, and Chatham Asset Management has been steadily buying up shares of McClatchy and is the company’s largest creditor. Chatham’s ownership share of McClatchy has gone from about 20 to 25 percent within a matter of months.

I have no idea what’s going to happen with McClatchy. I think there’s a good chance Gannett, which fended off Alden, will buy the 29-paper chain. It could end up in bankruptcy. In any event, the future looks bleak. On Jan. 1, McClatchy’s stock price (under the MNI symbol) was about $8 a share. It closed today at $3.12.

Today, the investment research firm Zacks said it was likely that on May 9 McClatchy would announce a year-over-year earnings increase but on lower revenue. It will be interesting to hear how Forman and his henchmen, including former KC Star publisher Mark Zieman, cast that as a positive, but I’m confident they will…They’ve been pitching poor financial results as good news for years now.

**

When I got my first newspaper job, in September 1969, it was in Covington, KY, at a paper called The Kentucky Post and Times-Star. It was a one-section paper delivered to northern Kentucky residents as a “wrap-around” to The Cincinnati Post and Times-Star.

I would have preferred to start at a major metro daily, like The Cincinnati Post or the Louisville Courier-Journal, my hometown paper, but I realized my best bet was to start at a smaller paper and then try to move up. At the time, The Kentucky Post’s weekday circulation was about 50,000, which, I thought, was decent. My goal, though, was to get to a paper that went to hundreds of thousands of people.

I realized that goal a year later when I came to Kansas City. I tell you, I was absolutely thrilled that I’d reached “the big time.”

…I talked about The Star’s Sunday circulation above, but I didn’t mention weekday print circulation. Well, as of March 31, it was down to 53,112, just about the size of my first paper back in northern Kentucky.

Share this:

  • Twitter
  • Facebook

Like this:

Like Loading...

Related

Posted in Uncategorized | 9 Comments

9 Responses

  1. on May 3, 2019 at 6:08 am Martha Blakeney

    Be grateful you missed derby this year The weather is AWFUL both days.


    • on May 3, 2019 at 8:14 am jimmycsays

      I’m always grateful to be alive for another Derby, Marcie, and hate to miss one, even if it’s rainy. Now, if it’s cold, it can be pretty challenging, but that shouldn’t be the case tomorrow…I will also miss seeing my family and friends in Louisville, including you, Marcie.

      My bet? Tacitus to win and place. Happy Derby!


  2. on May 3, 2019 at 10:09 am Jeff George

    I wonder when the media will get the fact that although they have a liberal and biased view the average reader does not. When the media went from reporting to slanted opinionating it was the beginning of the end. How do they not get it? Well, their demise is on them plain and simple.


    • on May 3, 2019 at 10:26 am jimmycsays

      I don’t think it’s that simple, Jeff, but the turn toward conservatism — particularly in the southern states and the Midwest — certainly had a big impact on newspaper circulation.


    • on May 6, 2019 at 10:09 am Bill Hirt

      As I have said before on this blog, I would dare one to find a conservative publication (note I said publication) that pays it’s own way. All the conservative newspapers or magazines have some kind of well-off individual(s) funding their losses in order to keep them publishing. Two notable examples: The Washington Examiner is said to lose upwards of $40 million a year. I would be stunned if Rupert Murdock’s NY Post makes any money – he’s there because it’s biggest media market in the country and he is willing to lose money to be part of it.

      Tribune Company’s (also a company in trouble) largest paper is the Chicago Tribune, long a conservative stalwart. The Tribune is hemorrhaging circulation despite have a conservative tilt. All of the conservative magazines have owners behind them that subsidize the losses.

      Also, do you think all of these small town newspapers that are folding up are because they are too liberal? No. One reason is that print publication readership is growing old and passing on. As Warren Buffet recently said, newspapers are a dying business. Ad revenue is dramatically shrinking (and has been for some time) and the cost of having a paper publication is now increasingly placed on the subscriber when means subscription rates have shot skyward which I am sure accounts for a good portion of the decline.

      Print has never been never been able connect with younger readers. I hear comments from younger (and some not so young) folks that why should I pay for something when I can get virtually the same thing on online for free. People got use to getting free access to news sites when the Internet was young and that is now a hard habit to break. None of my conservative friends would subscribe to The Star if it suddenly turned conservative – they’ve developed their own free or very low cost alternatives that tells them what they want to hear. That was the case 5-10 years ago and remains the case now.

      And yes, conservative talk radio has exactly the same problem facing them as their core listeners are generally 60-65+. But that is a whole other subject.


  3. on May 3, 2019 at 11:43 am John Altevogt

    News today that the New Orleans Times-Picayune was bought out by the upstart owner of the Advocate. The two papers will merge and in 60 days the entire news room of the TP will be terminated. Could that happen in KC?

    Simple fact is that Tony Berg has been an utter failure. He cans his institutional memory in the news division, dumps covering many of the wealthy suburbs that would probably buy the paper regardless of what it printed and, instead, wastes valuable resources hiring a pack of overpaid east coast losers who have absolutely zero connection with the community, to write opinion columns either no one reads, or that they hate. The perfect demonstration of Berg/Fannin stupidity is that they hired a bubble-gum blowing college student to cover the Kansas legislature (and why not, surely nothing of import ever happens there?)

    Sure, times are tough, but both Berg and Fannin need to hit the unemployment line (along with Forman and Zieman).


  4. on May 4, 2019 at 8:31 am James

    Someone should investigate Chatham and how it is they continue to print unblemished glorious and steady monthly returns as McClatchy (MNI) goes down and down and their other big holding AMI is also a mess.

    Chatham Asset Private Debt and Strategic Capital Fund II, LP
    April, 2019 +2.63% (net) +3.25% (gross)
    2019 Q-T-D +2.63% (net) +3.25% (gross)
    2019 Y-T-D +7.69% (net) +9.61% (gross)
    2019 I-T-D* +7.69% (net) +9.61% (gross)
    *(from 1/1/2019)

    Estimated capital at May 1, 2019:
    Chatham Asset Partners High Yield Fund, LP $ 598.3mm
    Chatham Asset High Yield Offshore Fund, Ltd. 993.6
    Chatham Asset Private Debt and Strategic Cap. Fund LP 498.8
    Chatham Asset Private Debt and Strategic Capital Fund II, LP 139.3
    Separately Managed Accounts 1,216.6
    Sub Advised Liquid Alternatives 784.3
    Total $4,230.9mm


    • on May 4, 2019 at 8:57 am jimmycsays

      They are blood suckers. They close in on “distressed” companies and suck out the cash, reinvesting it elsewhere.


  5. on May 13, 2019 at 9:43 am Gayla Hattaway

    I subscribe to both the KC Star (print M and Su which gives me their digital) and digital NY Times. The Star and I have had countless divorces over the years but I’m always lured back because I love reading a real newspaper. Even one that’s often pretty sub-par. And I do gain insights into local issues that are useful.
    I do find the Star’s digital edition very laborious to navigate, compared to the NYT. Alas, I guess we are an aging breed (I hesitate to say dying, too sad.).



Comments are closed.

  • Pages

    • About me: Jim Fitzpatrick
    • Contact
  • Archives

    • February 2023
    • January 2023
    • December 2022
    • November 2022
    • October 2022
    • September 2022
    • August 2022
    • July 2022
    • June 2022
    • May 2022
    • April 2022
    • March 2022
    • February 2022
    • January 2022
    • December 2021
    • November 2021
    • October 2021
    • September 2021
    • August 2021
    • July 2021
    • June 2021
    • May 2021
    • April 2021
    • March 2021
    • February 2021
    • January 2021
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    • May 2020
    • April 2020
    • March 2020
    • February 2020
    • January 2020
    • December 2019
    • November 2019
    • October 2019
    • September 2019
    • August 2019
    • July 2019
    • June 2019
    • May 2019
    • April 2019
    • March 2019
    • February 2019
    • January 2019
    • December 2018
    • November 2018
    • October 2018
    • September 2018
    • August 2018
    • July 2018
    • June 2018
    • May 2018
    • April 2018
    • March 2018
    • February 2018
    • January 2018
    • December 2017
    • November 2017
    • October 2017
    • September 2017
    • August 2017
    • July 2017
    • June 2017
    • May 2017
    • April 2017
    • March 2017
    • February 2017
    • January 2017
    • December 2016
    • November 2016
    • October 2016
    • September 2016
    • August 2016
    • July 2016
    • June 2016
    • May 2016
    • April 2016
    • March 2016
    • February 2016
    • January 2016
    • December 2015
    • November 2015
    • October 2015
    • September 2015
    • August 2015
    • July 2015
    • June 2015
    • May 2015
    • April 2015
    • March 2015
    • February 2015
    • January 2015
    • December 2014
    • November 2014
    • October 2014
    • September 2014
    • August 2014
    • July 2014
    • June 2014
    • May 2014
    • April 2014
    • March 2014
    • February 2014
    • January 2014
    • December 2013
    • November 2013
    • October 2013
    • September 2013
    • August 2013
    • July 2013
    • June 2013
    • May 2013
    • April 2013
    • March 2013
    • February 2013
    • January 2013
    • December 2012
    • November 2012
    • May 2012
    • April 2012
    • March 2012
    • February 2012
    • January 2012
    • December 2011
    • November 2011
    • October 2011
    • September 2011
    • August 2011
    • July 2011
    • June 2011
    • May 2011
    • April 2011
    • March 2011
    • February 2011
    • January 2011
    • December 2010
    • November 2010
    • October 2010
    • September 2010
    • August 2010
    • July 2010
    • June 2010
    • May 2010
    • April 2010
    • March 2010
  • Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 563 other subscribers

Blog at WordPress.com.

WPThemes.


  • Follow Following
    • JimmyCsays: At the juncture of journalism and daily life in KC
    • Join 563 other followers
    • Already have a WordPress.com account? Log in now.
    • JimmyCsays: At the juncture of journalism and daily life in KC
    • Customize
    • Follow Following
    • Sign up
    • Log in
    • Copy shortlink
    • Report this content
    • View post in Reader
    • Manage subscriptions
    • Collapse this bar
 

Loading Comments...
 

    %d bloggers like this: