Arlington, Va. – Newspapers have dramatically reduced subscriber churn over the last eight years, with the percentage of subscribers who cancel subscriptions falling to 31.8 percent in 2008, compared with 54.5 percent in 2000. The figures, from the Newspaper Association of America’s newly released 2009 Circulation Facts, Figures and Logic study, indicate that the churn rate dropped despite a rise in home delivery and single-copy pricing.
“Newspaper companies have made substantial progress with a range of new initiatives as they move aggressively to adapt their business models for success across multiple platforms,” said NAA President and CEO John F. Sturm. “As the fall in subscriber churn indicates, publishers have focused their efforts on retaining subscribers in key market segments that translate into maximum advertiser value.”
Research Highlights Newspaper Value, Delivery Methods and Retention Strategies
In addition to reducing churn, other elements of the newspaper business model reflected in the research include:
- Consumers highly value the newspaper print product: Newspaper publishers have been able to boost subscription and single copy pricing, a positive development for advertisers who recognize the value of engaged readers who are willing to pay more for print newspapers. According to the data, 32 percent of newspapers priced their daily edition at 75 cents at the end of 2008, compared with just two percent in 2006. The seven-day, home-delivery weekday rate has also increased, rising to $3.66 on average (vs. $3.37 in 2006).
- More newspapers are outsourcing home delivery: According to the survey results, 15 percent of newspapers outsource their home delivery and 40 percent deliver other publications. In the 100,000-circulation category, nine out of 10 newspapers deliver more than just their own publications and count income from that arrangement as a revenue source.
- Newspapers are using discounts to direct subscribers to higher retention payment plans: In 2008, 92 percent of newspapers offered a discount for participating in a recurring payment plan. In 2008, 38 percent of new subscriptions were sold on a recurring payment plan while only 28 percent were sold with no initial payment required. Subscribers who pay by credit or debit cards are more likely to be active subscribers after one year.
Research Analysis: Circulation Strategies
John Murray, NAA vice president of Circulation, provides further perspective on the research findings in NAA’s latest podcast.
About the Research
Facts, Figures and Logic is based on a biennial survey. This year, 405 newspapers responded by mail and online between November 2008 to January 2009, and Clark, Martire & Bartolomeo Inc. helped compile the data. Information on ordering the publication is available here.
NAA is a nonprofit organization representing nearly 2,000 newspapers and their multiplatform businesses in the U.S. and Canada. NAA members include daily newspapers, as well as non-dailies, other print publications and on-line products. Headquartered near Washington, D.C., in Arlington, Va., the Association focuses on the major issues that affect today’s newspaper industry: public policy/legal matters, advertising revenue growth and audience development across the medium’s broad portfolio of products and digital platforms. Information about NAA and the industry also may be found at www.naa.org.