Articles about "Circulation"


A USA Today newspaper box is shown in Charlotte, N.C., Tuesday, Sept. 29, 2009. (AP Photo/Chuck Burton)

USA Today’s two-year strategic overhaul gains traction

(This case study, the fourth in an occasional series, was underwritten by a grant from the Stibo Foundation.)

USA Today has probably changed more in the last two years than in its previous 30.

Always a circulation-driven enterprise, the paper now has a radically different audience strategy, substituting mobile app traffic for the rapidly falling readership of its legacy print edition and folding a new condensed USA Today section into the largest 35 of Gannett’s 81 community newspapers.

Publisher Larry Kramer and his hand-picked editor, David Callaway, brought several decades of digital experience to the formidable task of finally breaking away from a print-first culture in the USA Today newsroom.

That these things happened has been reported by the company in recent presentations to investors, in two stories by the Wrap’s Sharon Waxman and in a nice summary piece this week by David Cay Johnston at CJR.com.

How it all happened is quite a tale as well — a combination of bold moves and smart mid-course adjustments, a case in point of digital transformation generally but also one that required shedding the particular baggage of USA Today’s brief but turbulent history.

In spring 2012, Kramer, 62, founder of MarketWatch, was wealthy from its 2005 sale to Dow Jones and enjoying semi-retirement pursuits like consulting, writing a book on digital news and teaching at Syracuse University’s Newhouse School.  But he was intrigued by the pitch to take over USA Today.

“The brand was wonderful, still very strong,” he said in a phone interview, but at the same time “everyone was worried.”

In particular, the newsroom was only nominally digital, Kramer said, and it was past time to integrate USA Today with the rest of Gannett’s news-gathering. “That was an attractive challenge.”

By Kramer’s assessment, USA Today was early and successful with the design of mobile apps, “but just not very digitally savvy….The content was mostly wires. Then the USA Today version of the story later was dated (as far as attracting digital traffic) by the time it came out.”

“There was no editor and no publisher at the time,” he said, and the operation was “fairly adrift.”

A second part of Kramer’s diagnosis was that despite years of top-down pushing to build a digital presence, “the newsroom hadn’t gone along.”

So one of his first decisions was to bring on board Callaway, his stable mate at MarketWatch for a decade as editor. “There were no high-ranking digital people, and in my judgment, one coming in at a lower level would get eaten alive. People thought of David as a business specialist, but I knew he could do general news, too.”

USA Today creates a national news desk

“We began working right away on creating a national news desk for the entire company.” Physically, Kramer said, the operation, which now has grown to 45 editors and writers, is arrayed in an outward facing circle, looking at big-board display of traffic metrics. When an important story breaks, they turn around, huddle at a table in the center and coordinate plans. Then they go back to their desks with plans for USA Today itself, the community newspapers and Gannett’s large television group.

These days, Kramer said, 90 percent of breaking stories are USA Today staff written and that has helped drive traffic growth for the site since search engines value original content over generic wire coverage that might be found in a variety of places.

Callaway told me that, in the last 18 months, USA Today has advanced to fourth place in digital traffic, trailing only Yahoo, CNN and NBC.

Part of the trick, Callaway said, is to differentiate print and digital to match reading habits on the platforms. For instance when USA Today in print ran a lengthy narrative of how General Motors came to order a massive recall, the condensed digital version was a timeline of nine things GM knew and when they knew them. Even more recently, USA Today digital has produced stories like “Five things that happened in Ukraine over night.”

USA Today has also dipped into the “personal brand” approach to building traffic, notably in media where Rem Reider was added as editor and columnist and Michael Wolff writes flamboyant-by-design commentary.  (Kramer added that increased media and tech coverage has also helped raise visibility with advertisers). Prominent columnists like sports Christine Brennan and Washington Bureau Chief Susan Page turn up with increasing frequency on cable TV.

So why didn’t all that happen earlier? Kramer cited USA Today’s early history, a decade of borrowing reporters and editors from community papers which continued to pick up their salaries. That fostered a relationship that was “respectful but not endearing,” Kramer said. The community papers “with aspirations of covering national and international news themselves,” were dug in, insisting on independence.

That began to change with offers of modular USA Today sports reports and a USA Today news page, paving the way for the special sections introduced over the last six months, six to 12 pages on weekdays, bigger on Sundays.

Special USA Today section for community papers

Versions of that plan had been on the shelf at Gannett corporate for some time, Kramer said. But suddenly it was a solution to a pressing problem.  The company had introduced paywalls throughout the chain along with big price increases for bundled print + digital subscriptions.

The company had recognized the move would raise questions about the volume and quality of news in papers that had been much slimmed down over the years. Indeed digital-only subs attracted fewer readers than hoped and moving new subscribers to print + digital from introductory to full rates was also proving difficult.

So a new bonus section of USA Today content provided a potential solution and has tested out well in every market. Kramer credits Bob Dickey, head of the community publishing division, with an important wrinkle that helped seal the deal for subscribers on the fence.

With national and international content largely moved to the USA Today section “that added space for local news to the papers” in the A-section.  Dickey, Kramer said, “encouraged every paper to have an explicit plan for using that space and to promote it as well.”

It may seem a little ironic then that digital guys Kramer and Callaway’s most visible initiative, the so-called Project Butterfly is a print one. But Kramer said as he got deeper into his job, he had plenty of reasons to pay close attention to print.

While building digital, Kramer said, “I realized that I needed to preserve print circulation as long as I could. We still get a lot of revenue from print (circulation and advertising).” Print advertising, way down after the recession, grew in 2013 and stands to benefit in 2014 from the enormous added circulation of the inserted sections.

“This brings in 2.5 million more readers daily and the same or more on Sunday,” Kramer said. So if, for instance, “Procter and Gamble wanted to congratulate one of the Olympic athletes it sponsored,” they could now put that message out to a huge print audience overnight.

Elephant in the room: hotel circulation

Also overhanging USA Today was a fundamental challenge the digital era had brought to its longtime print circulation strategy. The core audience had always been business travelers, served with copies at their hotel door or in airports. But rather quickly, beginning in the mid 2000s, the typical business traveler began carrying a laptop or mobile device and could access a variety of reading options, including his hometown paper.

By the time Kramer came on board, hotel distribution was already beginning to shift from at-the-door delivery to a stack available to those interested by the elevators or in the lobby.

Also, Kramer said, the long-run of USA Today’s distinctive TV-style boxes was winding down (though they had a certain legacy standing, dating back to the Al Neuharth start-up days). “Some were only selling a paper or two a day.”

For a fix, Kramer instituted a series of interlocking moves. Exploiting new Alliance of Audited Media (AAM) rules, he began counting downloaded mobile apps as part of total circulation. So even as paid print plummeted, the total increased (despite USA Today’s site bucking the paywall trend and remaining free).

Gannett also negotiated with AAM to treat the USA Today section inserts as a “branded edition,” which can be a condensed version of the original under the auditing agency’s rules. So USA Today will be adding hundreds of thousands of new subscribers as Project Butterfly rolls out during this six-month period and the next.

USA Today’s paid print had already fallen in just a few years from 1.7 million to 1.2 million in the period ending in September of last year. And, clearly ready to accept bigger print losses, the company doubled the single-copy price that month to $2.

“No one carries eight quarters around in their pocket,” Kramer said, and in fact not all that many had been feeding four quarters into the boxes for a single-copy purchase. So the price increase became the occasion for pulling the boxes in and eliminating the considerable cost of stocking them.

Now, Kramer said, USA Today has evolved to having most single-copy sales in stores and newsstands. And home delivered subscriptions, hit with a smaller price increase than single copies, now make up the majority of USA Today’s paid print for the first time in the publication’s history.

USA Today has received attention for a deal with the Hilton chain in which the Web version of the paper is prominently featured as guests plug into a wireless connection in their rooms. But don’t look for hotel distribution to go all-digital anytime soon.

Hilton, Kramer said, “has the same wi-fi provider everywhere but not every chain works that way.” Besides, he said, “hotel lobbies are still a place many people like to use newspapers.”

Bringing TV to the party, selling more digital ads

Part of the content “integration” Kramer and Callaway are aiming for involves Gannett’s 43 TV stations, a total expanded with the acquisition of Belo’s properties. On the one hand, the stations provide an increasing volume of video for USA Today’s site and apps. Conversely, the new national news desk now pump out content to the TV stations as well as the community papers that they can adapt.

Both cited an investigative piece last fall, timed to the NSA snooping revelations, about as Callaway put it, “how police are tapping into your phones.” It was a big front-page splash for the national edition but also easy for the community papers and TV stations to make their own with some localizing.

Business changes on the digital side have been less conspicuous. Previous management had pushed for vertical sites on all of USA Today’s color-coded topics. Sports, travel and tech remain, Callaway said, but the rest have been pulled way back, allowing more staff to rove over a variety of topics rather than narrowly focus on one.

In digital advertising, Kramer said, “the big decision was to get rid of roughly 75 percent of the ad units.” The objective was to cut back on cheap remaindered space and make most ad availabilities prominent, scarce and premium-priced. But, he conceded “that has been painful at first…not all of our advertisers were ready to produce those kinds of ads.”

Coming next in 2014 will be offering the condensed USA Today section to non-Gannett newspapers. “We have had a half-dozen major inquiries,” Kramer said, and refining the idea will move to the front burner as the community paper rollout is completed at the end of this month. Kramer likes to refer to this as a “network/affiliate” model, analogous to NBC offering its content both to stations it owns outright and to affiliates, with advertising opportunities divvied up so each side benefits.

Another likely 2014 project will be launch of a weekend edition of USA Today, since the national news desk is a seven-day operation and is preparing the condensed version for Saturday and Sunday papers already.

Kramer used the boxing term “the tale of the tape” as an indicator of success to date. Which is to say that print and digital audiences and advertising are all up. The company stopped reporting USA Today revenue and earnings separately around the time of the great recession of 2008 and would not provide me with current figures.

But I’m not sure last year’s or even this year’s bottom-line results are all that important. Like Digital First and Advance, Kramer is walking the walk of disruption and the real test will be whether the gain outweighs the pain and transitional expense in three to five years.

Besides, the overdue full integration of USA Today into the rest of the company appears to be nearly complete, so it may make progressively less sense to view USA Today’s revenue contribution in isolation.

A skeptic’s view

While I found Callaway and Kramer candid, I also realize they were spinning the positives. Analysts and investors have liked what they are hearing and Gannett stock has had a long upward run — probably mostly due to broadcasting results and expansion, though change on the publishing side has been well-received as well.

But might I be missing some blemishes? I asked Jim Hopkins, an often fierce critic of the company who shut down his Gannett Blog after a six-year run about a month ago. In a return e-mail, Hopkins credited Kramer and Callaway for “pumping up the circulation numbers,” integrating USA Today into the rest of the company, and having “sped up the assembly line so more content is now appearing faster online and in digital apps.”

But Hopkins did voice a reservation:

I don’t see any significant improvement in the quality of editorial content.
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NAA: ‘Print only’ still more than half of newspaper audience even as digital grows

A new analysis of the most recent newspaper audience reports suggests a surprising split in reading habits. Digital audience continues to grow. Mobile audience is growing quickly. Mobile-only audience, though much smaller, has grown to 7 million.

Yet more than half of newspaper audience — 54 percent as measured by Scarborough research in 150 large markets — still read their local paper’s news report only in print.

There is an important qualifier to that finding. The 54 percent may consume a substantial amount of national news on various digital platforms, but even with the growth of print + digital access subscriptions, they do not visit their hometown paper’s website.

John Murray, the Newspaper Association of America’s vice president of audience development, generated a number of other headline findings in his analysis published on the NAA site (members-only) earlier this month:

  • Total daily circulation was up 3 percent year-to-year and Sunday circulation 1.6 percent among 541 daily papers reporting results to the Association of Audited Media (AAM) for the six-month periods ending Sept. 30, 2013 and September 30, 2012.
  • The daily circulation gains were entirely driven by digital gains at the largest newspapers. Sunday gains also reflected the heavy use of “Sunday Select” products — packets of inserts to non-subscribers — by larger papers. At the great majority of newspaper organizations reported digital audience did not offset print circulation losses.
  • Print circulation continues to decline as a share of total circulation — now 71.2 percent daily and 74.9 percent Sunday. A year earlier, print was 85 percent of the daily total. That is to say that the industry — especially the largest papers — is using changed AAM rules to substitute digital audience for print.

I wondered, given the much lower cost of digital ads, whether the substitution maneuver contributes to continuing print and total ad losses, roughly 6 percent in 2013 if recent reports by public companies are representative.

To an extent that is true, Murray told me in a phone interview, but perhaps not as much as the raw numbers would suggest. In the first place, advertising is concentrated in Sunday editions and a few weekdays. Sunday-only and three-day print subscriptions keep those numbers higher than an overall daily average.

Run-of-the-paper ad rates do not correlate closely with circulation declines. Pre-printed insert revenues do, Murray said, but advertisers have been accepting of the “Sunday Select” products as an equivalent.

Overall, Murray’s paper concludes, these results show differing audience strategies, including discrepancies among papers in what they choose to count in their AAM reports: 

Newspaper readers are increasingly using digital products with the most substantial increases among the mobile platforms…The majority of newspapers are posting smaller declines in traditional print circulation (than national and other large papers). Most offer digital products to their readers that are similar to the largest newspapers, but they are not necessarily reporting use of these platforms in their AAM total circulation metric….

AAM circulation data is more insightful, expansive and transparent for individual newspapers due to changes in reporting rules. These changes also mean that using AAM “total circulation” as an exclusive metric across the industry is an exercise in looking at the sum of disparate parts. But a closer examination of the elements, supported by readership data, does confirm a steady transition to digital reach among newspapers and a healthy print readership base for readers and advertisers.

My takeaway is similar. The transition to digital and to mobile-only users continues to advance at a rapid pace. Indeed it has probably gone further by now than the studies in Murray’s analysis suggests. The digital audience is younger and newspapers have it in their power, especially as they improve smartphone news products, to speed the growth of that share.

But remaining print readers, described by some as hardcore and by others as geriatric, are slower than I would have thought, to read a newspaper organization’s report in both print and digital. The Scarborough report Murray highlights finds only about 30 percent of a given paper’s audience uses both print and digital (versus 15 percent digital-only and 55 percent print-only).

You can look at that division from a half-empty or half-full perspective. I agree with Murray that print continues to hold a smaller-than it-once-was but well-defined, upscale audience. These readers are attractive to advertisers. As the success of increased subscription prices shows, they are also willing to pay more than newspapers had traditionally asked.

On the other hand, advertisers may be quicker to move, in whole or in part, to digital than newspaper readers. As digital-only options proliferate, advertisers most likely will continue to scale down print budgets, to pay for more of the new. Read more

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PoynterVision: how NPR goes after emerging news audiences

Patrick Cooper, director of web and engagement at NPR, talks about trends that he sees coming in news audiences. In particular, he pays attention to fragmented audiences, the way audiences divide their time among devices, and the challenges that come with capturing those individuals. Cooper, who spoke at Poynter’s Future of News Audiences conference Jan. 26-27, offers us insights into NPR’s approach in drawing audiences.


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A USA Today newspaper box is shown in Charlotte, N.C., Tuesday, Sept. 29, 2009. (AP Photo/Chuck Burton)

Why USA Today’s huge growth in digital circulation isn’t what it seems

The Alliance for Audited Media released a new round of circulation figures today — a twice-yearly occasion for newspapers to write about themselves. In true Halloween spirit, a few of them published press releases disguised as staff reports, de-emphasizing evidence of dwindling print circulation in favor of stressing digital gains. Read more

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The New York Times and The Wall Street Jounal are displayed at a newsstand on Monday, July 28, 2008 in New York. (AP Photo/Mark Lennihan)

USA Today’s circulation up 67 percent? Newspaper industry makes comparisons increasingly difficult

Alliance for Audited Media

Circulation in September 2013 rose at The New York Times, flattened at The Wall Street Journal and skyrocketed at USA Today, according to figures released Thursday by the Alliance for Audited Media. AAM is no longer releasing lists of the nation’s largest newspapers, citing “the change to comparative five-day averages” as more newspapers change their print publishing schedules. In fact, the new figures make many comparisons challenging.

Take USA Today, whose average Monday-Friday circulation rose an eye-popping 67 percent in September 2013, from 1,713,833 the year before to 2,876,586. Its print circulation, however, fell 19 percent year-over-year. USA Today’s averages include 1,545,364 digital replica and non-replica editions, up 1,690 percent from the 86,307 it counted in September 2012 (not to mention 14,357 branded editions).

The New York Times’ average Sunday circulation rose nearly 14 percent over the year before. Average Monday-Friday circulation rose nearly 18 percent, from 1,613,865 to 1,897,890. But print circulation fell 2 percent year-over-year on Sundays, and nearly 6 percent on weekdays.

The New York Times Co. Thursday reported it had 727,000 digital subscribers in the third quarter of 2013, up 28 percent over the same period the year before. Circulation revenue long ago passed advertising revenue at the New York Times Co. It was up nearly 5 percent in the third quarter and is up 6.5 percent for the first nine months of 2013. Advertising revenue is down by nearly the same percentage over the first three quarters.

The Wall Street Journal’s average Monday-Friday circulation was essentially flat, falling a little under 1 percent over the year before, from 2,293,798 to 2,273,767. Read more

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Esquire app on an iPad

Why news organizations shouldn’t write off tablet magazines

Jon Lund in GigaOM recently declared tablet magazines a failure.

That’s true in the sense that they haven’t substantially impacted overall magazine circulation. Using Alliance of Audited Media numbers, Lund lists the percentages that “digital replica” paid subscriptions, such as for tablets, contributes to the total circulation for 25 magazines. They ranged from a high of 38 percent of total circulation (Game Informer Magazine, a noted outlier) to 2 percent (People magazine).

Like Lund, I’d discourage any new publication from focusing solely on tablet apps, stored deep inside iPad folders or in the dreaded Newsstand, far from the dynamic reach of social media and the Web.

But sometimes it’s nice to retreat to a dark, quiet, closed-off space on a tablet. And magazine apps are contributing enough to circulation figures that we shouldn’t write them off as worthwhile components of our larger digital strategies — especially if publishers are smart about how much they invest in producing them.

Lund cites The Daily, which failed not only as a tablet-only publication but also as a tablet-only publication granted lots of free publicity by virtue of its status as an iPad pioneer. That’s a useful example in the argument against interactive magazines as digital media panacea.

But consider two of my favorite digital magazine apps: The New Yorker and The Atlantic Weekly.

The former, despite its irritating recent switch from paginated content to breathtakingly long scrolls, offers the cleanest, most convenient way for me to read New Yorker pieces. And it takes advantage of the tablet form without resorting to flashy interactive design. Short videos and poems read aloud by authors enrich the content without requiring lots of extra production resources.

The Atlantic’s foray into weekly publishing, meanwhile, also presents a model for tablet content that doesn’t profess to be a game-changer but fits nicely alongside the company’s other digital products. The Atlantic Weekly bundles pre-existing content from the Web that readers might have missed during the week. It collects only a few stories, presenting them all in the same simple design template.

Although these relatively simply apps certainly cost something in terms of staff and publishing-platform fees, Atlantic editor-in-chief James Bennet told Poynter in an email: “We do put a good deal of work into The Weekly – we wouldn’t be asking readers to pay for it if we didn’t – but we’ve been pretty rigorous about scoping that work to keep the costs in line with sales,” Bennet said.

The Atlantic Weekly requires work from four primary staffers: an editor, copy editor, designer and producer, none of whom work on this product full-time. He didn’t disclose sales figures but said they’ve exceeded expectations. Three-quarters of readers are monthly ($2.99) or yearly ($19.99) subscribers; single editions cost $1.99.

While it’s true that The New Yorker’s digital edition only accounts for 7 percent of total paid circulation, we tend to frame print circulation drops of 7 to 10 percent as pretty significant. If 10-percent circulation drops inspire feelings of doom, shouldn’t the prospect of 10-percent circulation boosts thanks to digital editions inspire feelings of hope?

Lund’s point that digital magazines suffer from lack of social connections is a good one. So is his point that phone and tablet users spend most of their time with only a few essential apps, and it’s better to meet them where they are — on Twitter, Flipboard and the like — than to hope they’ll remember to keep visiting your app, buried among dozens.

Yet the strongest media brands can meet readers everywhere; they don’t have to choose between having a website and having an app. That’s what makes initiatives like The Atlantic Weekly so fascinating — they recognize this notion that, sure, most of the time you just want to focus on your Facebook news feed and manage your email. But when you want to pull back from those demands on your attention and just read some good stories distraction-free — even if it’s just for the 20 to 30 minutes a week when you think to open the app — the Atlantic Weekly will be there.

Tablets are multifaceted — it’s pretty amazing that I can retreat from the chaos of the Web to a book or magazine or TV show on the same device that was overwhelming me before. (Remember: e-books, while no longer booming, have carved out a nice place in our modern lives despite being as disconnected from the social Web as digital magazines.)

Still, I’m concerned about some apps, like the sensational interactive Esquire. According to mobile editions editor Mark Mikin, it takes three designers, an in-house Hearst Digital Media post-production team and four editors to produce the magazine app. And that’s not all: “Every ‘print’ editor and every ‘print’ art director and photo editor contributes ideas for interactivity and multimedia,” Mikin said via email. “We really all sit down in one room with the intent of figuring out how to make every idea on paper something unique and engaging on the iPad.”

That all-in effort makes for a tremendous product, but it requires significant staff resources to reinvent so much print content. So I’m with Lund in one respect — it’s hard to look at the numbers and feel confident that a major investment in heavily interactive magazines will pay off. The many challenges — zeroing in on workable price points, figuring out how to bundle apps with other digital content, publishing on various operating systems, asking readers to routinely download large files, integrating app production into a publication’s overall workflow — make the task even more daunting.

Pages from The Atlantic, The New Yorker and Esquire

But that doesn’t mean publications should stop experimenting with apps completely — at least not until the Web becomes so robust that apps lose their advantages in bundling, design, and interactivity and this debate becomes moot.


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Advocate publisher says paper is adding 500 subscribers a week

The Advocate | NPR | New York Times

John Georges, publisher of The Advocate in Louisiana, told the New Orleans City Council on Thursday the paper is adding 500 new subscribers each week as it expands from Baton Rouge into New Orleans.

“The Advocate feels very loved right now,” Georges told the council, according to his own paper. Georges said it was proof the city wants a seven-day newspaper delivered to homes after the city’s Times-Picayune became a three-day-a-week paper to focus on NOLA.com.

The expansion of the Advocate into a daily New Orleans edition has been fraught with drama. The Advocate has recently poached a raft of talent from the Times-Picayune, which has planned a new “street” tabloid for previous non-print days. Georges has been quite vocal about wanting to take over the Big Easy, telling WWL-TV anchor Melanie Hebert he had wanted to buy the Times-Picayune outright, but Advance insisted it wasn’t for sale. Read more

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Newspaper carrier saves person from fire while on duty

The Reidsville Review | Greensboro News & Record | WGHP-TV

Steve Bradshaw, a newspaper carrier for Warren Buffett-owned World Media Enterprises, pulled a man from a burning house Sunday, Danielle Battaglia reports in The Reidsville Review. Bradshaw was on duty in Reidsville, N.C., Sunday morning and saw smoke at a house; he “tried to pound on the front door to see if anyone lived there.”

Bradshaw — who said he was a former volunteer firefighter — pulled a man who was inside the house out through a window. “He was overwhelmed by the smoke,” he told Battaglia.

“Had [Bradshaw] not been there the outcome could have been substantially different,” Reidsville Fire Marshal Jay Harris told the paper.

Last December, a Roanoke (Va.) Times carrier saved a woman from a fire.

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Dallas Morning News gets serious about newspaper theft

Dallas Observer

Leslie Minora tells the Dallas Observer’s Joe Tone that, frustrated by two weeks of her newspaper getting filched, she “finally asked customer service to put my name on it, then I half-jokingly asked if I could include a threatening message. I was surprised when the woman laughed and seemed excited to help.”

 

Minora says the paper “has no idea if my building has cameras.”

Related: Roanoke Times carrier saves woman from fire | Dallas Morning News’ paywall is getting a makeover to try to capture digital-only readers Read more

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AP F NY USA EARNS NEW YORK TIMES

New York Times passes USA Today in daily circulation

Alliance for Audited Media

U.S. newspapers saw daily circulation decrease on average by less than 1 percent from March 2012 to March 2013, according to the every-six-months report by the Alliance for Audited Media (formerly the Audit Bureau of Circulations). Sunday circulation was down 1.4 percent on average.

The Top 5 newspapers by average daily circulation: (You can click on the image for a larger version.)

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