Direct Mail News & Resources

Declining newspaper circulations contribute to financial woes of Postal Service

by Stanley Cravens at St. Louis Postal Service Examiner

Some of the nation’s largest newspapers are facing tough times as their circulation numbers continue to decline, according to a newly released report. The Audit Bureau of Circulations report shows that weekday circulation at U.S. Daily publications fell an average of 8.7 percent year-over-year for the six-month period ending March 2010. Sunday-only circulation was reported to have dropped 6.5 percent.

The decline in circulation is the result of a struggling economy as well as a wide spread change in the way that people choose to receive their news. Online news providers are increasingly the preferred sources of information for the wired generation. In a culture accustomed to receiving breaking news from Twitter or online news channels, hard copy newspapers are often viewed as outdated and not timely enough in their news reporting.

The Audit Bureau of Circulations reported that, of the nation’s 25 top newspapers, the San Francisco Chronicle experienced the greatest drop in readership. Its March 2010 paid circulation of more than 240,000 readers was 22 percent less than the same period in 2009. The only publication in the top 25 that gained in circulation was the Wall Street Journal with a 0.5 percent year-over-year increase. The nationwide newspaper, USA Today, suffered a 13.6 percent drop in circulation, and theWashington Post declined 13.1 percent.

Locally, the St. Louis Post-Dispatch also suffered from the general decline in newspaper readership. Circulation of the Sunday edition declined 3.8 percent, which was actually a stronger showing than the majority of the Top 25 newspapers. The Post-Dispatch’s weekday circulation, however, dropped significantly more than the Top 25 average, declining 12 percent.

The decline in newspaper circulation is also affecting the financially troubled United States Postal Service. While many subscribers receive home delivery of their paper from someone serving a paper route, many subscribers also receive their paper through the mail. The Post Office collects a large amount of money each year in postage for these periodicals. As the number of newspaper subscribers declines, so does the Post Office’s revenue. This is just another example of how the increased use of the internet for communication, bill paying, and shopping has contributed to the rapid decrease in mail volume and postal revenues.