Discount Prices Don't Take Off at Newspapers

By: Lucia Moses When, after fierce debate, the Audit Bureau of Circulations (ABC) two years ago allowed papers to count as paid circulation copies bought at as much as 75% off the basic price, some members -- often small-paper executives -- feared the change would devalue paid circulation and give metro papers pricing ammunition against smaller competitors.

But a review of the ABC FAS-FAX covering the six months ended March 31 showed few papers taking liberal advantage of the rule change, which increased the allowed discount from 50% to 75%. According to rough estimates from industry watchers, less than 1.5% of total circulation is priced below 50%.

"Industrywide, the fears were largely unfounded," admitted Mark Henschen, circulation director of the North County Times in Escondido, Calif., and a vocal opponent of the rule when it was proposed.

The rule change is more extensively used by big metros to help stem or reverse circulation declines, according to the March FAS-FAX. At The Washington Post, for instance, papers sold for less than 50% of the base price represented 6.9% of total weekday circulation. The Atlanta Journal-Constitution sold 5.8% of its weekday copies at less than 50%.