Martz: newsprint won't affect papers' long-term health p. 28

By: Editorial Staff NEWSPAPER ASSOCIATION OF America chairman Uzal Martz Jr. said the $44 billion newspaper industry will experience strong growth despite the latest round of newsprint price increases.
"Newspapers had hoped newsprint prices would stabilize after the last series of price hikes, but this latest increase, and lack of certainty in newsprint pricing, should not adversely affect the long-term health of the newspaper industry," said Martz. "We expect the rest of this year to continue strong, approaching 6.5% normal growth."
U.S. newspapers posted their best first-half advertising revenue in seven years, rising 6.1% to $16.74 billion during the first six months of 1995.
"Because of the high price of newsprint," said NAA president and CEO Cathleen Black, "newspapers are focused on conservation, and that's driven consumption down by about 4% in the first six months of 1995."
Newspapers, she added, have streamlined costs and production operations and are more efficient and better equipped to deal with newsprint fluctuations than in the past.
"This is not to say that newspapers are not very concerned about this newest round," said Black, "but that they are adjusting to the different economics."
As a Newspaper Association of America task force firmed up findings for digital delivery, the number of systems and suppliers grew, as did the consequent challenges of tracking and managing ads arriving by different electronic routes.


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