2004-11-4
This is Gwen Outen with the VOA Special English Economics Report.
The big news for American newspapers this week was the elections.
But there was also news about their industry. The number of
newspaper readers in the United States continues to fall. Average
daily circulation fell by almost one percent in the six months that
ended September thirtieth.
Shrinking circulation has been a problem for newspapers for some
years. The Internet is just the most recent competitor for people's
time.
American media are privately owned. Newspapers get some of their
money from readers. But mostly they depend on businesses to buy
advertising space in their pages.
The larger the circulation, the more a newspaper can charge
advertisers. But recently, several newspapers have admitted lying
about their number of readers.
In June, the Tribune Company announced that it had overstated
sales of two of its papers. These were Newsday in Long Island, New
York, and the Spanish-language paper Hoy in New York City. The
Tribute Company also owns the Los Angeles Times and the Chicago
Tribune.
In July, the Audit Bureau of Circulations punished Newsday and
Hoy through a process called censure. The A.B.C. is a private
organization. It examines circulation claims made by publishers, so
advertisers can trust the numbers. Among other steps, the two
newspapers will have to report their circulation numbers more often
than usual for the next two years.
The Chicago Sun-Times also faces the same punishment. That
newspaper is owned by Hollinger International.
The Securities and Exchange Commission is investigating Hollinger
International and its ousted chief, Conrad Black. Hollinger says
Mister Black took nearly four hundred million dollars from the
company. He denies any wrongdoing.
Recently the Belo Corporation announced it had overstated the
circulation of the Dallas Morning News, in Texas. The publisher will
repay twenty-three million dollars to advertisers. It will also
provide four million dollars in free advertising. Other publishers
that falsely reported their circulations will also be repaying
advertisers millions of dollars.
An Audit Bureau spokeswoman says cases like these recent ones
appear to be rare. But the Securities and Exchange Commission
announced last month that it would expand its investigation to other
newspapers.
This VOA Special English Economics Report was written by Mario
Ritter. This is Gwen Outen.