POSTAL AFFAIRS
Newspapers today are among the leading local users of postal services. Although small market daily and weekly newspapers often use Periodicals mail for delivery of their publications, the mail class that newspapers use the most is Standard Mail, primarily for the delivery of "Total Market Coverage” products (ad inserts to non-subscribers). NAA advocates, on behalf of the newspaper industry, to ensure that postal policies on rates, new services and mail entry are fair and do not adversely impact the long-standing partnership between newspapers and the U.S. Postal Service.
= NAA Members Only
November 07, 2011
The U.S. Postal Service recently filed a request with the Postal Regulatory Commission to raise rates effective Jan. 22, 2012. This is the first rate increase in two years. The request complies with the overall 2.133 percent cap tied to the Consumer Price Index as required by law.
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October 24, 2011
The U.S. Postal Service announced in mid-September that it is in the process of studying the closure of 252 mail processing facilities in an effort to eliminate excess capacity and reduce costs. In conjunction with this effort to “optimize its network,” the Postal Service has proposed revisions in service standards that essentially eliminate overnight delivery for first-class mail and periodicals. The periodicals service standard would move to a two- to nine-day delivery window.
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October 10, 2011
You have heard (and your newspapers have written about) the uncertain future facing the U.S. Postal Service. During the 2011 fiscal year, which ended Sept. 30, the Postal Service realized an operating loss of $1.8 billion. In addition, it reached the ceiling on its $15 billion borrowing authority and is unable to make a $5.5 billion payment to prefund retiree health-care benefits as mandated by a 2006 postal reform law. (Congress extended the deadline to meet this payment to Nov. 18 with the passage of a short-term funding resolution for the government).
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May 10, 2011
The U.S. Postal Service is ready to launch a market test that would offer national advertisers a money-back guarantee for direct mail advertisements through first-class mail and standard mail. The Postal Service is focusing on 16 unidentified national advertisers that spend a minimum of $250 million annually on advertising and for whom postage right now is less than 0.36 percent of the company's total spending on advertising.
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February 07, 2011
The U.S. Postal Service filed notice with the Postal Regulatory Commission on Jan. 12 of its intention to offer, as an experimental market test, "Marketing Mail Made Easy" (MMME). This would allow business mailers to distribute saturation advertising mail without an address. The test begins on Feb. 27 and lasts for two years. The Postal Service says the new program targets small and medium-sized businesses not using the mail.
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December 06, 2010
NAA commissioned Mather Economics LLC in Rosewell, Ga., in August 2010 for a survey of NAA-member newspapers to assess the economic impact of recent postal rate increases for the delivery of newspapers’ total market coverage (TMC) products (ad inserts delivered to nonsubscribers). “How Are USPS Rates Affecting the Preprint Advertising Market?" specifically assessed the impact of rates on TMC advertising volumes, as well as the impact of postal rates on newspapers’ use of the nation’s postal system. Below are highlights of the report.
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October 03, 2010
On Oct 3, 2010, the U.S. Postal Service implemented revised deflection standards, known as the “droop rule,” which may result in an assessment of additional postage for some newspapers. Most newspapers’ mailed products – newspapers and/or Total Market Coverage products – will not be impact as the standard excludes High Density and Saturation ECR flats and flats mail drop shipped at local post offices, called Destination Delivery Units.
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June 23, 2010
The U.S. Postal Service is facing serious financial difficulties as a result of the economic recession and organization’s inability to control costs, which consistently outpace revenues. Postal volumes from 2007 to 2010 have declined by 17 percent or 36 billion pieces. The Postal Service is projecting that it will lose nearly $7 billion in Fiscal Year 2010 (Oct. 2009 – Sept. 2010). The Postal Service ended April 2010 with a year-to-date loss of $2.2 billion, which is lower than a $3.5 billion loss projected earlier this year for the same time period.
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April 07, 2010
The U.S. Postal Service filed a request on March 30 for the Postal Regulatory Commission (PRC) to provide an “advisory opinion” on a proposal to eliminate Saturday delivery to residences and businesses. The Postal Service believes this cut would save the agency nearly $3 billion. If the proposal is implemented, the impact for newspapers will vary depending upon the use of the postal system.
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