Maybe someone can explain more about the economics of newspapers in some sense..obviously with the net it has changed considerably...but if selling newspapers and teh income from that is "chump vhange"...then why double teh price within a year...5- cents to a dollar? If teh income generated is so little from that.. by rasing the price the number sold I am sure has gone down considerably... If the circulation has gone down doesn't that drive advertising proces down as well? Maybe this wishing to charge for online use is a reaction to the poor income generated by the raising of the price to a dollar?? Why has the advertising money lowered? (Besides the ecomomy in general...)Just curious in as to the factors forces involved in that..online an din print...
Newspapers make the lion's share of their income from advertising dollars. Some, in fact, make ALL their income from that source, for example, those free local newspapers and niche papers you see here and there.
Now, papers hook those advertisers into paying by running articles that excite the readership, or provide information in one place that folks used to not be able to get anywhere else. TV listings, movie reviews, HS sports reporting, recipies, obituaries, "about town gossip" etc. This had folks subscribing to the paper, and the larger the subscription base, the more people would see the ads (or potentially see them).
Papers originally charged a subscription fee based upon delivery costs, and a couple pennies extra. The larger the subscriber base, the more ads they could rake in and the more they could charge for those ads.
When people started to drop subscriptions, papers initially responded by increasing subscription rates. That just caused more people to leave, initiating the death spiral. s subscribers left, advertisers took note and scaled back their spending in papers. That money started to go to radio, the intertubes, and TV instead. With more people tuning in to television, TV execs were able to adjust pricing to allow for more local advertising, which you may have noticed the past several years.
It's all relative. Right now, papers need to find a way to geberate income, and their best place, presently, is online. A couple of major regional newspapers have already gone completely online, dropping their print copy. We'll see how that works out, but it appears to me that that will be the future of all news, except for some select local markets, like those free ones you get at grocery stores, etc.
respects,