Hearst's Answer to Newspapers' Dilemma: Charge Readers More

3 Minute Ad Age: March 13, 2009

Produced by Hoag Levins
Published: March 13, 2009

Hearst Newspapers President Steven Swartz was on the 'Future of Newspapers' panel.

NEW YORK (AdAge.com) -- Newspaper readers have long paid less than it actually costs to deliver the product to their homes. And now, as newspaper companies struggle to survive, those readers should pay the real costs of that service. That was one of the suggestions made by Hearst Newspapers President Steven Swartz at this week's Future of Newspapers panel. That event at Columbia University's Journalism School explored the dire straits in which print publishers like Mr. Swartz find themselves.

6 Comments

By marlacassi | BEACHWOOD, OH March 13, 2009 09:04:44 am:

I don'[t mind paying more for the newspaper, HOWEVER, I would want my money's worth and, in Cleveland, that's not going to happen.

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By Pete | Minneapolis, MN March 13, 2009 09:08:34 am:

WOW..private business can get this idea right, how come the government doesn't try it with PUBLIC TRANSPORTATION!

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By agelles | STAMFORD, CT March 13, 2009 09:37:05 am:

Newspapers' collective problem is they still sell advertising based upon circulation, rather than learning how advertisers evaluate the value of that advertising, and pricing their inventory accordingly. For years digital media has used this model to price inventory better. Advertisers are willing to pay a premium for more targeted advertising programs. Offline media needs to use its audience insights and other data to unlock the "real" value of its advertising.

Adam Gelles
CEO
The AMM Group
www.theammgroup.com

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By atmgr82 | LAFAYETTE, IN March 13, 2009 10:47:30 am:

Interestingly enough, across the country in Las Vegas at the Newspaper Association of America mediaXchange conference, attendees were informed that globally, American readers pay less in real terms for their news than most other developed countries, when considering cover price versus average income. Admittedly this is a very basic summary of a larger analysis, but the point is the same - even compared to successful newspapers in other countries, American newspapers have been undercharging for content.

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By William | Walnut Creek, CA March 13, 2009 02:10:48 pm:

We are watching here and hearing the last tolls of a funeral bell for printed newspapers. Hearst Newspapers president Steven Swartz is sufficiently deluded as to the reality of his marketplace, that in desperation he is claiming the "entitlement" to charge more. He will soon be able to print his reduced circulation at FedEx/Kinko's with this sort of thinking (perhaps a good idea). So long as newspapers continue to believe that "print" media is the way to go, they are the equivalent of carriage makers - and Swartz is now trying to sell each carriage for more. William H. Thompson - Thompson Group Marketing - Walnut Creek, CA

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By jamespharaon | Brenham, TX March 13, 2009 02:31:28 pm:

Is that a lead balloon I hear? No. It's the sound of the newspaper crashing and burning. Talk about out of touch!

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