i

NEWSPAPERS AND NEWS WRITING IN THE UNITED STATES:

2009 INDUSTRY ANALYSIS

Prepared for

Jennifer Riegert
COMM 363
Written Communication in Organizations
Xavier University

Prepared by

Amy Windhorst
English Major
Xavier University

Xavier University
3800 Victory Parkway
Cincinnati, OH 45207

December 9, 2009
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CONTENTS
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EXECUTIVE SUMMARY

The newspaper and news writing industry is in a state of flux. According to

Patrick Tucker (2009), “The beginning of 2009 saw the greatest decline in

newspaper profitability in U.S. history” (pg. 8). Current difficulties come from

two main sources:

• The rise of online news sources, which offer free, nearly-instantaneous

news on any topic at any time. The internet has also vastly diminished

profits from classified advertising in print media—classified users now

look to free sources such as Craigslist.com to post and read ads.

• The economic recession of 2008-2009.

In almost all areas, newspapers are experiencing decline. Profitability has

shrunk if not disappeared; The Washington Post Co.’s newspaper division lost

$53.8 million in the first quarter of 2009; during the same time period, The

New York Times Co. lost $74.5 million (Rieder, 2009). Circulation is down

more than 5% from this time ten years ago (U.S. Census Bureua, 2006).

Meanwhile, young readers are rejecting the format altogether—the average

age of newspaper readers has grown increasingly higher (Jost, 2006).

As a result of this decline, many news outlets are significantly cutting back

on their newsroom staff. New problems arise once staff cuts have been

made. The labor-intensive process of news reporting and research is severely

limited in depth and scope by the decreased number of journalists. Some

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fear that this is inhibiting the news industry’s role as political watchdog and

social informant.

To counter these problems, those in the newspaper business are looking to

transition to digital formats to reach broader (and younger) audiences. In

some ways, this has been successful. NYTimes.com attracts between 14

million and 22 million visitors per month (Pontin, 2009). However, attracting

an audience nearly 14 times as large as its print circulation only accounts for

12% of The New York Times Co.’s revenue (Callahan, 2008). The inability for

newspapers to create a substantial profit from online news ventures is

currently holding back the industry’s progress in the digital world.

In order to combat the many problems facing them, the news industry needs

to lower the expectations of shareholders, consider alternative forms of

funding such as non-profits or privatization, explore possible changes in

legislation, and ultimately figure out how to make the internet a source of

revenue.

Those interested in breaking into the news writing field need to maintain

flexibility, be comfortable with technology, and consider independent

journalism as ways of being successful in a struggling industry.

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I. INTRODUCTION

A. Report Goals

The main purpose of this report is to present a clear overview of the

American newspaper and news writing industry for a college audience. The

report will examine recent trends in news consumption, the opinions of both

scholarly and popular sources, and will also feature input from professionals

currently in the field. Recommendations will also be offered—both for the

news writing industry itself and students who are interested in advancing in

the industry. The report will demonstrate why news journalism is an essential

part of American democracy, and why its future is important to Americans.

B. The Historical Role of News Journalism in America

Sometimes described as the “Fourth Estate,” journalism has played the role

of America’s “watchdog” throughout history (“Who Killed the,” 2006).

Senator Benjamin L. Cardin described newspapers as “an important check on

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local governments, state governments, federal government, elected officials,

corporations, school districts, businesses, individuals, and more” (as cited in

Tucker, 2009, pg. 8). The relay of non-partisan, investigative, and hard-

hitting journalism to the public continues to play an essential role in

American democracy. Paul Starr (2009) points to the closing of the Cincinnati

Post, which, due to the loss of regular community coverage, “reduce[d] voter

turnout and the likelihood that challengers can unseat incumbents. Other

studies suggest that when news diminishes, corruption increases” (pg. 53).

Therefore, the existence of quality journalism has long been recognized as

going hand-in-hand with American democracy and an informed public.

C. A Brief History of Newspapers and News Writing

Since the first newspaper was published in the 17th century, news writing and

journalism has been a significant facet of our culture, politics, businesses and

entertainment. By 1800, several hundred newspapers were already in

publication in the United States—this number only grew as the century went

on (Rogers, 2009). Circulation became wider, stories became more

sensational, and content became geared towards working class audiences. In

the late 19th century, photography was also incorporated into print

journalism, beginning a partnership between news writing and photographic

journalism (Rogers, 2009).

Thriving into the 20th century, the print industry had dominion over news

writing. However, as the 20th century progressed, developments such as

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radio and television limited print writing’s audience (Rogers, 2009).

Circulation of newspapers has seen steady decline since the early 1900’s. In

order to compensate for losses and to continue growth, many privately

owned newspaper businesses went public (Jost, 2006). This, however, has

placed greater pressure on newspapers to produce yearly gains in revenue—

pressure that some argue has “softened” news writing in America (Jost,

2006). This pressure has also placed many news organizations in a state of

crisis near the end of the 20th century and the beginning of the 21st. With the

advent of the internet, the print industry has suffered an accelerated loss of

readership, leaving the news writing field in state of flux.

D. The Current State of Newspapers and News Journalism

The current “crisis” surrounding America’s newspapers began in earnest in

2005, during which an estimated 2,000 positions were lost in newsrooms

around the country (Jost 2006). Under pressure from shareholders to boost

profits while simultaneously reeling from the loss of readers and advertisers

to online sources, large companies such as The New York Times Co. and

Knight Ridder were forced to cut back hundreds of positions (Jost 2006).

Paradoxically, most newspapers were still making profits during that time—

the industry was financially healthy, even excelling (Jost 2006). However, this

too changed in the face of the economic depression. According to Patrick

Tucker (2009), “The beginning of 2009 saw the greatest decline in

newspaper profitability in U.S. history” (pg. 8). The Washington Post Co.’s

newspaper division lost $53.8 million in the first quarter of 2009; during the
 6

same time period, The New York Times Co. lost $74.5 million (Rieder, 2009).

Such losses have forced many newspapers around the country to cease

printing. Fig. 1.0 shows the steady decline of American newspapers since the

1950’s. Recent examples of newspaper closings include the Cincinnati Post

and the Christian Science Monitor, both of which discontinued their print

versions.

Figure 1.0 (Jost, 2006)

Currently, many newspapers are looking to the World Wide Web as their

savior. While many newspapers have successfully captured an internet

audience—between 14 million and 22 million visit nytimes.com every month

(Pontin, 2009)—newspapers have been unsuccessful in creating online

profits equal to those from print media. One of the largest issues in the

industry is how to harness these millions of readers and turn them into

advertising dollars.
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Journalism itself is also at a crossroads—due to the speed of internet news,

investigative reporters are still trying to find their place among a “softer”

and faster moving news industry. News writers must also take on more roles

due to the multimedia nature of the web—including those of photographer

and videographer—while also adapting to the interactive nature of a web

audience.

II. THE STATE OF AMERICA’S NEWSPAPERS

A. Finances

According to the U.S. Census Bureau (2008) (Fig. 2.0), America’s newspaper

industry was still making profits in the mid-2000’s. The gap between

revenues and expenses could be seen narrowing slightly in 2006; for the

most part, however, America’s newspapers appeared financially healthy,

despite competition from the internet. Paul Farhi (2006) called newspapers’

profits “a spectacular margin by the standards of other industries but

apparently not enough for investors who’ve come to expect even higher

returns from newspapers” (pg. 29).

Newspaper Revenue and Operating Revenue

(millions) This had changed by the end of
Expenses (2004-2006)
Operating Expenses
(millions) the decade, however, when The
60,000
Washington Post Co. lost $53.8
50,000

40,000
million in the first quarter of

30,000 2009. The New York Times Co.

20,000
lost $74.5 million during the
10,000

0
2004 2005 2006

Operating R evenue 48,336 49,723 48,861

(millions)
Operating 39,998 41,093 42,269
Expenses (millions)
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same period (Rieder, 2009). The following statistics indicate just a few of the

financial struggles that faced the newspaper industry in 2008-2009:

• In third quarter 2008, the New

Figure 2.0 (U.S. Census Bureau, 2008)
York Times Co.

reported a 14.4% decline in advertising revenue compared to the same

period a year before (Callahan, 2008).

• Revenue from print editions was down nearly 30% in the first quarter

of 2009 (Tucker, 2009).

• Classified ad purchases fell 42% in the first quarter of 2009, likely due

to the increasing prominence of free, online classified sites such as

Craigslist.com (Tucker, 2009).

While steep declines in advertising revenues make the situation appear grim,

it is unclear if these declines are permanent or simply the result of the

economic recession. Because the newspaper industry was still financially

stable during the pre-recession period, it is tempting to label the financial

turmoil as temporary. However, the economy may have only accelerated

advertisers’ abandonment of print media—an abandonment that could

remain permanent even once the economy rebounds.

B. Circulation
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According to Kenneth Jost (2006), America’s daily newspaper circulation has

been in decline since 1985 (Fig. 2.1). As the figure shows, the number of

papers sold daily in the U.S. has decreased nearly 10% since 1960.

Figure 2.1 (Jost, 2006)

Statistics from the U.S. Census Bureau (2006, 2008) show similar declines.

Daily newspaper circulation was fairly stable from 1980 to 1990; however,

with the rise of the internet throughout the 90’s, a trend of steeper decline

began (Fig. 2.2). This decline started to accelerate beginning in 2005,

marking the first discussions of the newspaper industry’s crisis.

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Daily Newspaper Circulation (in millions)

65

60

55

50

45
1980 1990 1995 2000 2001 2002 2003 2004 2005 2006

Figure 2.2 (U.S. Census Bureau, 2006)

While almost all newspapers have reported losses in circulation in past years,

specific types of newspapers have struggled more than others. Figure 2.3

shows the increases and decreases in circulation of morning newspapers,

evening newspapers, and Sunday newspapers since 1970. Sunday

newspapers have traditionally had the largest circulation; however, even

their audience has decreased in recent years. Evening papers have seen the

largest decline, replaced by other sources such as television news

broadcasts and the internet.

Newspaper Circulation by Type (in millions)

80

60
Morning
40 Evening
20 Sunday

0
1970 1980 1985 1990 1995 2000 2002 2003 2004 2005 2006 2007

Figure 2.3 (U.S. Census Bureau, 2008)

C. Readership
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One of the largest concerns plaguing newspapers is not only the decline in

readership, as evidence by Fig. 2.4, but the increasing age of the average

newspaper reader. More frequently, younger readers are turning to free,

online sources for news (or no news at all) rather than subscribe to

newspapers. Jost’s figure shows just how steep the decline has been since

the 1970”s, particularly among 18-24 year-olds and 25-34 year-olds.

Figure 2.4 (Jost, 2006)

While the figures provided by the U.S. Census Bureau (Fig. 2.5) are slightly

more optimistic (65% of 18-24 year-olds say they’ve read a newspaper in the

past week), it still indicates that newspapers are still most popular among an

older audience.
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% That Have Read New spapers During the Prior Week

by Age Group (2007) 18 - 24 years old
100
25 - 34 years old
35 - 44 years old
50
45 - 54 years old

0 55 - 64 years old
2007 65+ years old

Figure 2.5 (U.S. Census Bureau, 2007)

One of the major challenges of the newspaper industry is understanding how

to appeal to younger audiences. A study done by the Star Tribune suggests

there are ways to make newspapers more “experience-based” so that they

appeal to younger readers (Jost, 2006). However, such changes would

require an overhaul of long-standing editorial practices—editors would have

to write specifically with that audience in mind rather than reporting on

what’s “most important.” Such changes would be counterintuitive to the

“laws” that govern objective news reporting.

D. Employment

The employment of journalists at newspapers has fallen dramatically in the

past years. According to the Newspaper Association of America, the number

of people employed in the newspaper industry fell by 18% from 1990 to

2004 (as cited in “Who Killed the,” 2006). Over the past five years,

newspaper companies have made cutback after cutback to decrease costs.

Some of these announcements have included:

• An estimated 2,000 industry jobs were cut in 2005 (Jost, 2006).

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• The Philadelphia Inquirer reduced its staff to just one foreign

correspondent after previously having bureau’s in Rome, London,

Moscow, Jerusalem, and three other cities (Farhi, 2006).

• The Chicago Tribune shut down its City News wire service as part of a

27-person reduction—a 115-year-old wire service known for its “hard-

nose reporting” (Farhi, 2006).

• The Los Angeles Times cut 10% of its work force (Callahan, 2008).

• Gannet Co., publisher of USA Today, cut 3,000 jobs (Callahan, 2008).

• The number of reporters covering the nation’s statehouses has

declined by 30% (Rieder, 2009).

Laura Bishop, reporter and videographer for the Cincinnati Enquirer, also

noted cutbacks in the newsroom. “In the features department, we had more

than twice the reporters and editors we have now, and we had a standalone

features section–it’s now part of the Local section,” said Bishop. “Everyone

writes a little bit of everything, and we’re all much busier than we used to

be.” As a result of the cutbacks, which included both staff writers and staff

veterans, Enquirer reporters now have less time to write stories and are no

longer as specialized as before. Similar tales are being told at newsrooms

across the country as newspapers begin to cut back on “unnecessary” staff.

III. NEWS WRITING AND THE INTERNET

A. News Consumption on the Web

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The growing use of the internet as

% of Internet Users who "Ever" Get
News Online a source of news is undoubtedly

90 expanding. As shown in Figure 3.0,

80 18 - 29 years
70 old
the use of internet news has
60 30 - 49 years
50 old
40 expanded among all age groups
50 - 64 years
30 old
20
65+ years old
since the beginning of the decade.
10
0
2000 2004 2008

More importantly, the internet

audience is young—an audience that traditional news

Figure 3.0 (U.S. Census Bureau, 2008)
print has been

struggling to capture for years. The percentage of 18-29 year-olds who

regularly obtain news from the internet is significantly larger than among

older age groups (with the exception of 30-49 year-olds) (Fig. 3.1).

These numbers are significant for newspapers and journalists, because as

Jason Pontin (2009) notes, “the number of people who read newspapers and

magazines is growing” (pg. 8). That growth, however, is digital. He points to

the success of NYTimes.com, which attracts between 14 million and 22

million visitors per month (compared to their circulation of just one million).

Pontin also estimates that on any day, 32 million Americans go online to get

their news.

While these numbers are optimistic, it is useful to note that many newspaper

providers still have intense competition once they break the digital barrier.
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Sites such as Google News, Yahoo!, and other aggregate news sources

provide competitive alternatives to the more traditionally-formatted

newspaper sites.

% of Users Who Got News Online "Yesterday"

by Age Group (2007 & 2008)
50
40 18 - 29 years old
30 30 - 49 years old
20 50 - 64 years old
10 65 years old
0
2007 & 2008

Figure 3.1 (U.S. Census Bureau, 2008)

B. Revenues from Online News

Figure 3.2 is a revealing

Newspaper Publishers Print (in millions
Revenue by of dollars)
illustration of the newspaper
Media Type (2004-2006) Online (in millions
of dollars)
industry’s current dilemma.
45,000
40,000
Despite the growth of online
35,000
30,000
readership, news providers have
25,000
20,000
yet to determine how to gain
15,000
10,000
substantial profits from internet
5,000
0
2004 2005 2006
ventures. As seen in the figure,
Print (in millions of dollars) 40,705 41,550 40,979

Online(in millions of 1,869 2,135 2,128

dollars) the revenue gained from web

sources is only a small fraction of that gained by print media.

Figure 3.2 (U.S. Census Bureau, 2006)

Analysts of the field agree. Michael Hirschorn

(2006) writes that “the current Web-publishing model that newspapers are
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using isn’t likely to become financially viable anytime soon” (pg. 174). James

O’Shea, the managing editor of the Chicago Tribune says that “no one has

figured out how to finance news-gathering on the web” (as cited by Farhi,

2006, pg. 30). Even Jason Pontin (2009), who optimistically cites the growth

of online readership, agrees that newspapers need to figure out “how to pay

for what pleases so many” (pg. 173).

Still, online’s future is looking brighter than that of print, even if the medium

is not currently a financially viable alternative to major newspaper

publication. Sean Callahan (2008) cited a 10.2% increase in online

advertising for NYTimes.com during third quarter 2008. In fact,

NYTimes.com’s online revenue now accounts for 12.4% of the company’s

revenue—an optimistic start for newspapers trying to grow their business via

the web.

C. Web News Formats

As the news transitions to the digital side, several different formats are

finding prominence on the web:

• “Shovelware:” Shovelware is a derisive term for “repurposed” news

stories that are simply transferred from their print format to a digital

one. This format is still used but not as popular as it once was (Jost,

2006).
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• Blogs: Blogs allowed journalists (both professional and amateur) to

post content at any time. Blogs are seen as more “personal” and have

more open forums for reader discussion and feedback.

• Packaged content: Sites such as NYTimes.com are “recombining”

content in order to create news packages. This allows users to sign up

for email newsletters or updates on particular topics that interest them

(Jost, 2006).

• Re-created, web-only content: Some content, such as video, interactive

galleries, maps, or images is created specifically for the web (Jost,

2006).

On the whole, web news writing is more instantaneous, shorter in length,

often coupled with other multimedia, and more open to audience discussion

and response.

IV. INDUSTRY EFFECTS ON JOURNALISM

A. The Role of Journalists

Kerry Duke (2009), the managing editor of KYPost.com, says that today’s

journalists “are multimedia journalists. [Our reporters] will do versions of

reports for not only television, but for 4 different websites as well.”

Journalists are expected not only to write, but to be able to photograph, take

video footage, and use social media as well. He points to decreased

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newsroom staff as a reason that journalists are now expected to take on

multiple roles.

While this means a lot more work for journalists, Duke points out that there

are many positive aspects of having one journalist control many facets of a

story. “The reporters, as storytellers, can have a lot more control over the

story if they see that story through from start to finish,” said Duke. “The

whole presentation will have a lot more continuity and will be more powerful

if the reporter is in control of everything from start to finish.”

Not only do journalists have more control over content—so do the readers.

Print formats are experimenting with new layouts and editorial tactics that

focus more specifically on the concerns of readers (Jost, 2006). Meanwhile,

the internet provides an array of interactive opportunities where the readers

actually become participants in the news. For instance, Paul Bradshaw

(2008) notes that bloggers don’t need an editor to tell them what the readers

want—“they already know, because the readers are on their blogs, telling

them who they are and what they’re curious about” (pg. 51). This new breed

of interactivity also allows journalists to “put the call out” for information and

sources from readers, where the audience is actually providing the news

themselves (Bradshaw, 2008).

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Blogging is also giving rise to the practice of independent journalism.

Journalists have the opportunity to function without news outlets and editors,

develop their own audiences, and create their own content (Hirschorn,

2006). Many see this “civic journalism” as a way for any individual—not just

journalists—to keep tabs on their local, state, and national communities.

B. The Quality of News Reporting

Newsroom cutbacks across the country could be contributing to what Esther

Thorson, a journalism professor at the University of Missouri in Columbia

calls a “negative-feedback circle.” She explains: “You take resources out of

the newsroom. As a result, quality goes down, and [then] circulation goes

down, and you leave an opportunity for competitors to come into the market,

leading to taking more resources out of the newsroom” (as cited in Jost,

2006, pg. 66).

According to Rem Rieder (2009), the damage to America’s newsgathering

capacity has already been severe, limiting news outlets’ abilities to carry out

their democratic duties towards the American public. After layoffs at the

Hartford Courant, Karen Hunter wrote that “there is no way that a news staff

that has been reduced by more than 120 people in 10 years…can produce

the same newspaper it once did” (as cited by Farhi, 2006, pg. 29). Because

news reporting is so labor intensive, increasing the productivity of any

individual in the newsroom is nearly impossible—layoffs mean substantial

losses in reporting power (Farhi, 2006).

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Paul Starr (2009), meanwhile, sees a shift towards partisan reporting as the

more “moderate” portions of the public lose interest in hard-hitting news.

The downward trend in readership means that only those with vested

interests in political parties will be left reading and funding the news.

Newspapers are not the only medium that concerns those in the industry.

Many experts fear that making the transition to the internet will spell out

serious changes in the way news reporting is carried out and delivered—and

not for the better. Pablo Boczkowski, associate professor at Northwestern

University, says that online stories will be shorter and less substantive, with

hard news concerning politics and the government being replaced by stories

about entertainment and culture (Jost, 2006).

This trend can already be seen in blogging practices. Paul Bradshaw (2008)

notes that journalist bloggers are more likely to pursue rumors while doing

less research, leaving the fact-checking up to the public. Meanwhile, most

independent bloggers “operate from armchairs, not the frontline,” leaving a

void in the blogosphere’s hard-news reporting (“Who Killed the,” 2006).

However, Kerry Duke (2009) of the KYPost.com—a company that has made

the leap across the digital divide—claims that the standards of “good”

journalism still hold. “I still believe that the basics of good news writing have

not changed, despite the other changes that have been going on,” he said.
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The Economist (2006) also believes that newspapers’ decline isn’t going to

be as harmful to news quality as most think (“Who Killed the”). It points to

companies such as the New York Times and the Wall Street Journal as being

both likely to survive and sources of beneficial investigative stories. It also

believes that allowing readers to be involved with internet journalism will

help hold government to account in a broadening court of public opinion

(“Who Killed the,” 2006).

V. CONCLUSIONS & RECOMMENDATIONS

A. Key Points

In summary, the newspaper and news writing industry is currently in a state

of decline and change, respectively. The main issues include:

• Declines in newspaper revenue, circulation, and readership.

• Competition from online news and classified sources, such as Google

and Craigslist.com.

• Increase in online readership, but failure to gain substantial revenues

from online outlets.

• Decline in journalistic employment and manpower, and subsequent

decline in news depth and quality

• New roles for those still in the news writing field, including use of

multimedia and interactivity with readership.

B. Conclusions
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The role of journalism has traditionally been one of the watchdog and the

informant. Newspapers still offer some of the most in-depth investigative

reporting in the nation—reporting that is essential for American democracy.

Currently, this role is threatened by the newspaper industry’s inability to

maintain their readers, their advertisers, and their workforce. The one-two

punch of the rise of the internet and the economic recession has seen an

accelerated decrease in newspaper revenues and circulation. It is unknown if

this decrease is permanent or simply a reflection of the recession. In either

case, newsrooms have seen a dramatic decrease in staffing—a decrease that

directly impacts the depth and quality of news production.

More importantly, newspapers have failed to find a profitable structure for

online news distribution—a failure that is becoming more and more

significant as news print has begun losing money. Though young news-

seekers still exist, news outlets have yet to figure out how to turn this young,

online readership into advertising dollars.

C. Recommendations for News Industry

While the future of newspapers remains unclear, several recommendations

can be offered for restructuring the news writing industry. These include:

• Lowering expectations: Publically-owned newspapers have felt

pressure from shareholders to constantly turn out profits, sometimes

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resulting in superficial decreases in staff that only lessen the quality of

the final product. In order for newspapers to maintain what makes

them special—in-depth investigative reporting on our country’s most

important issues—they need to be able to produce a product worthy of

reading. Pressures from shareholders also prevent newspapers from

investing in admittedly risky online ventures that might support them

in the future.

• Non-profit or privatization: Because shareholders can prevent

newspapers from taking risks or hiring needed staff, newspapers can

look for new sources of funding such as non-profits or a return to

private ownership.

• Legislation: The government can offer tax incentives to advertisers

who choose to use print publications. Other legislation might be made

to limit Google’s “leeching” off of newspapers’ articles, which prevents

the original news outlets from receiving needed advertising dollars.

• Give advertisers a reason to buy: This is important online, especially.

News websites need to be able to offer advertisers competitive ad

space in order for them to invest in the website.

• Internet subscriptions: This might be more difficult to implement,

considering that young Americans have become so accustomed to free

news. However, it is still one way that news outlets might consider

growing online profits.

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D. Recommendations for Students

For those looking to enter the news writing industry at such turbulent times,

there are several thoughts to keep in mind:

• Be flexible: In an industry that expects more content with less

manpower, the ability to specialize has been dramatically reduced.

Young journalists should be very flexible in regards to the content they

cover and produce.

• Know your technology: The necessity of computers, the web, social

media, and video and photography software in the news industry is

undeniable. Young journalists need to be able to cover a lot of ground

in terms of their technological backgrounds and experience, especially

when many news outlets are considering going entirely digital.

• Consider independent journalism: The internet has opened the door for

young journalists who want to capture an audience. Blogging is a great

way to interact with readers from around the world with similar

concerns and interests.

ACKNOWLEDGEMENTS

A special thanks to the following report contributors:

• Laura Bishop, Reporter & Videographer, Cincinnati Enquirer

• Kerry Duke, Managing Editor, KYPost.com

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