By: Jennifer Saba The Tribune Co. is blaming the precipitous decline in circulation at the Los Angeles Times on the impact of the Do Not Call registry and the company's "deliberate decision" to reduce third-party-sponsored and bulk copies.
"You've probably noticed that all over the industry, there's been an increase in [third-party and bulk] circulation to compensate for softness in home delivery and single sale copies," Dennis FitzSimons, Tribune's chairman, president and CEO, told a group of analysts during this morning's conference call. "Though it's OK with ABC, it's not the same with advertisers."
He said that that company was pulling "way back" on that type of circulation and investing heavily in database marketing systems to grow quality circulation.
The Chicago Tribune also reported declines in circulation, which was "adversely affected by reduced promotional activity and intense audience competition across all media," according to a statement. Compared to the same period last year, the Tribune's daily circ for the six-month period ending September 2004 was down 2.4%. Saturday declined 4.4% and Sunday dropped 3.8%
Additionally, FitzSimons said that they are being very conservative on how they report the numbers and he ensured investors that he doesn't see it as long pattern of circ decline.
The company reported today that for the six-month period ending September 2004, daily circulation at the Times was down 5.6% and Sunday circ dropped 6.3% for the same period last year. Compared with the last six-month period ending March 2004, the drop-off was even worse: Daily circ and Sunday circ sank 8% and 7% respectively.
In other news, the Los Angeles Times reported that Q3 retail advertising revenue grew 1%. Real estate revenue gained 25%. National advertising was down 6%.
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