According to Prudential Equity Research not all circulation figures are created equal. Newspaper companies have a lot of tricks up their sleaves in order to inflate their circulation figures including giving free or discounted copies to hotels, educational institutions, etc.
In the most recent study, Prudential found that other paid circulation, which is comprised of hotel, newspapers-in-education (NIE), employee, and third-party sales copies, was up 6.9%. As a contrast, for the period ending September 2004, other-paid circulation was up 34.2%.
However, the report notes that even though there's a reduction in the reliance in other paid circ, the category is still "stemming the losses in home delivery and single-copy sales."
Overall, total daily circ decreased 2.7% in March when compared to the same period last year. Home delivered copies dropped 2.7%. Discounted copies were up 85%. Single-copy sales slipped 7.1%. This category acts as a barometer for the health of the industry because "it's the most basic example of a consumer actively seeking out the newspaper," the report said.
And who are the good and the bad?
According to Prudential, The Star-Ledger in Newark, N.J., the Daily News in New York, The Wall Street Journal, The San Diego Union-Tribune, and The Detroit News and Free Press have the highest CQ score of 6.
The two papers with the lowest CQ score of 0: The Sacramento Bee, and the St. Louis Post-Dispatch.
Prudential selected the 10 largest papers in its coverage universe to illustrate trends in the industry. For example, the report notes that quality circ at USA Today (CQ2) "seems to have held steady." Full-paid home delivery increased 8.5%. Full paid single copy sales fell 16.5% but the report notes the period reflects the impact of an increase in the cover price.
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