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Newspaper Circulation May Be Worse Than It Looks

New rules allowed newspapers to boost circulation even if they aren't selling more copies

While U.S. newspapers are losing subscribers at a staggering rate, a few dailies stand out because their circulation is rising. But they aren't necessarily selling more copies.

In this Nov. 14, 2009 photo, a customer purchases a newspaper in Palo Alto, Calif. While U.S.... Expand
(AP)

Here's why: Since April 1, new auditing rules have made it easier for newspapers to count a reader as a paying customer.

These looser standards are especially helpful to a newspaper if it sells an "electronic edition." That can include a subscriber-only Web site, such as what The Wall Street Journal has, or it can be a digital replica of a newspaper's printed product. Several dozen publications, including USA Today, sell access to these daily "e-editions" that show how the news was laid out in print.

Under the new auditing standards, if a newspaper sells a "bundled" subscription to both the print and electronic editions, the publication is often allowed to count that subscriber twice.

If not for these rules, the industry's numbers would look even worse. Average weekday circulation at 379 U.S. newspapers fell 10.6 percent during the six months ending in September. That was the steepest decline ever recorded by the Audit Bureau of Circulations, the organization that verifies how many people are paying to read publications.

It's not clear what the numbers would have been under the old auditing standards. But the effects of the new rules were widespread. There were 59 newspapers that listed at least 5,000 electronic editions in their weekday circulations, according to an Associated Press review of the figures filed with the ABC for the April-September period. In all but a few instances, the number of electronic subscribers was substantially higher than a year ago.

The decline in newspaper circulation has several causes. Many publications have intentionally reduced the range of their deliveries, cutting out exurbs or distant parts of their states where they sold relatively few copies. Higher prices for home delivery and newsstand copies also have driven some readers away. Publishers are betting they can keep their most loyal readers and are charging them more to help offset their crumbling ad sales — the main source of newspaper revenue.

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