1. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. THE DYNAMICS OF MASS COMMUNCATION Joseph R. Dominick University of Georgia--Athens

2. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Chapter 4 The Newspaper Industry Chapter Outline  Newspaper History Newspaper History  Newspapers in the Digital Age Newspapers in the Digital Age  Newspaper Industry Organization Newspaper Industry Organization  Newspaper Ownership Newspaper Ownership  Producing the Newspaper Producing the Newspaper  Newspaper Economics Newspaper Economics  Getting Feedback Getting Feedback  The Newspaper Industry The Newspaper Industry

3. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Newspaper History Journalism in Early America –Few newspapers existed –Publishers were printers and postmasters –Colonial authority – “no free press”

4. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Newspaper History Early Papers –Publick Occurrences both Foreign and Domestick – Benjamin Harris (1690) –Boston News Letter – John Campbell (1704) –New England Courant – James Franklin –Pennsylvania Gazette – Ben Franklin

5. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Newspaper History The Beginnings of Revolution –Zenger trial: independence of press –Beginnings of political press –Declaration of Independence Reprinted in Pennsylvania Evening Post July 6, 1776 Official copies published by Mary Goddard –Mary Goddard one of 30 women publishers

6. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Newspaper History The Political Press: 1790 – 1833 –Federalist debates discuss Freedom of the Press and the Bill of Rights –Newspapers spread rapidly; by 1820 there are: 24 dailies; 66 semi- or tri-weeklies & 422 weeklies –Minority papers grow concurrently Freedom’s Journal (late 1820s) Cherokee Phoenix (1828) and Cherokee Advocate

7. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Newspaper History Requirements for a mass press  Printing press capable of quick, cheap copies 1830: R. Hoe and Company’s steam-powered press (4000/h)  High level of literacy in population 1830s: first statewide public school system  Interested mass audience Democratization of business and politics

8. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Newspaper History The Penny Press –Benjamin Day’s New York Sun (1833) –Horace Greeley’s New York Tribune (1841) –Henry Raymond’s New York Times (1851) Significance of Penny Press –Economic support base – advertising –Pattern of distribution – add street sales –Definition of news – popular sources, not elite –News collection – freshness matters

9. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Newspaper History The Post Civil War Newspaper Giants –Joseph Pulitzer – New York World (1883) Accuracy  Simplified writing More advertising space  Sensationalism Crusading attitude –E.W. Scripps – newspaper chains 18 papers by 1911  Industrial cities –William Randolph Hearst – inherited San Francisco Examiner –Yellow journalism

10. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Newspaper History Early 20 th Century –Consolidation Equipment expense Reader gravitation to largest paper Rise of chains –Jazz journalism Tabloids (1/2 size) with many photographs New York Daily News Subway- and bus-friendly

11. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Newspaper History Great Depression of the 30’s –Increased readership; decreased profits –Radio becomes a competitor Post WWII –Circulation increases: 48M (1945) to 62M (1970) –98% of American cities with no competitor –Chains grow: 60 with 42% (1945)  157 with 60% (1970) –Media consolidation and competition for $$

12. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Newspaper History Contemporary Developments –  USA TODAY (1980) Splashy graphics  Short, easy-to-read stories Graphs, charts, tables  Factoids –Last 15 years Competition – radio, television, 24h cable news, Internet Consolidation – FCC 2003 decision on same-market ownership Classifieds – Internet classifieds pulling away revenue Credibility – Jayson Blair’s New York Times scandal in 2003

13. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Traditional vs. Online Newspapers –B–Both gather, evaluate, organize information –T–Traditional: distribution involves… Paper  Ink  Presses  Trucks  Workers –O–Online: digital transfer to computers and handhelds Newspapers in the Digital Age

14. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Newspapers in the Digital Age Defining Features of a Newspaper  Diverse content  Convenient packaging  Local coverage  Historical record  Watchdog role  Fresh news

15. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Advantages of Online Papers –No limits on story length or number of pictures –Continually, easily, and inexpensively updated –Can be interactive –Can offer searchable archives Online Papers –USA Today –Americus Times-Recorder (Georgia) –Newspaper Association of America’s Website –148 of top 150 papers offer their news online Newspapers in the Digital Age

16. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Newspapers in the Digital Age Paid Access –Initially, online presence = financial drain –Wall Street Journal started subscription service –Others charge for selected content –Many require registration Digital editions: traditional format but downloadable Handhelds: wireless delivery to cell phones, laptops, PDAs, and tablet PCs

17. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Newspaper Industry Organization Print dailies (5x/week) –Circulation is number of copies delivered –National newspapers – content is national, delivery by satellite to local printers –Large metropolitan dailies – being hit hard by competition –Suburban dailies – 40% of all circulation –Small town dailies – source of local information

18. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Newspaper Industry Organization Print weeklies – steady circulation increase Maintaining and recruiting readership –M–More use of color –S–Shorter stories, summary decks, sidebars –D–Diversifying content Special-service and Minority Newspapers –A–African-American press declining –S–Spanish press growing rapidly –C–College press strong

19. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Newspaper Ownership Concentration of ownership  Cities with competing papers  Joint-Operating Agreements –Editorial staffs are separate and competitive –Circulation, advertising, production are combined

20. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Group Ownership Pros & Cons Pros: –Better coverage afield –Better technology –Better staff training Cons: –Less diversity of opinion –Absentee ownership –Profits valued above quality –Tendency to avoid local controversy

21. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Producing the Newspaper Departments –Business – ad space and promotions –Production – physical tasks required –News-editorial – objective reporting and opinions Editor: oversees and helps set editorial direction Managing Editor: day-to-day operations Department Editors: Wire, Copy, City, Sports, Business

22. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Producing the Newspaper Prepublication –Two sources of copy Local reporting – stories assigned to reporters Wire services – wire editor selects from input –Newshole: space in current edition usable for news (printed version only) –Reporters file stories electronically via computer

23. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Newspaper Economics $Sources of Revenue $Advertising – 80% $Local retail $Classifieds $National advertising $Prepaid inserts $Circulation – 20%

24. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Newspaper Economics $General Expenses $News and editorial costs $Advertising overhead $Composition and plate production $Printing costs: newsprint (25% of all costs), ink, running the printing press $Circulation and distribution costs $General administrative costs

25. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Audit Bureau of Circulation –Formed in 1914 –Certifies newspaper circulation figures –Circulation determines advertising rates –Audits over 3/4 of all U.S. and Canadian print media (about 2,600 publications) –Travels 300,000 miles per year Getting Feedback

26. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Getting Feedback Table 4-3 Daily and Weekly Newspaper Circulation

27. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. The Newspaper Industry Big employer: 445,000 in 2003 One of lowest-paying media industries Entry-level –Reporter – small papers –Business – need business education –Online – all sorts of administrative Upward mobility –Reporters  editors –Business: into management or out to national