{"id":2250,"date":"2008-12-10T00:05:17","date_gmt":"2008-12-10T00:05:17","guid":{"rendered":"http:\/\/adrianmonck.com\/?p=2250"},"modified":"2008-12-09T21:15:49","modified_gmt":"2008-12-09T21:15:49","slug":"newspaper-cost-structure","status":"publish","type":"post","link":"https:\/\/adrianmonck.com\/about\/2008\/12\/newspaper-cost-structure\/","title":{"rendered":"Newspaper cost structure"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/adrianmonck.com\/wp-content\/uploads\/2008\/11\/newspaper-stack1-200x76.jpg\" alt=\"Newspapers by istockphoto\" title=\"Newspaper cost structure\" width=\"207\" height=\"78\" class=\"alignleft frame size-medium wp-image-1953\" srcset=\"https:\/\/adrianmonck.com\/wp-content\/uploads\/2008\/11\/newspaper-stack1-200x76.jpg 200w, https:\/\/adrianmonck.com\/wp-content\/uploads\/2008\/11\/newspaper-stack1-100x38.jpg 100w, https:\/\/adrianmonck.com\/wp-content\/uploads\/2008\/11\/newspaper-stack1.jpg 380w\" sizes=\"auto, (max-width: 207px) 100vw, 207px\" \/>Being a TV person, I&#8217;m curious about the cost structure of print newspaper operations. Over at the <a href=\"http:\/\/www.mondaynote.com\/2008\/09\/29\/the-economics-of-moving-from-print-to-online-lose-one-hundred-get-back-eight\/\">Monday Note<\/a>, <strong>Fr\u00e9d\u00e9ric Filloux<\/strong> writes:<\/p>\n<blockquote><p>In a typical operation, the biggest costs are industrial ones: around 25%-35% for paper and printing; another 30%-40% for distribution; around 18-25% for editorial; the remaining 10-15% are for administrative and marketing expenditures.<!--more--><\/p>\n<p>It varies from country to country but we can safely assert most of the costs \u2014 at least 60% \u2014 are industrial in nature. Evidently, that part disappears when going online.<\/p><\/blockquote>\n<p><strong>Robert Ivan<\/strong> updated my query from <a href=\"http:\/\/adrianmonck.com\/2008\/12\/online-audience-growth-solution-newspapers-problems\/\">a previous post<\/a> about print costs making up 35% of newspaper cost structure. Here&#8217;s how he got his number:<\/p>\n<blockquote><p><em>&#8220;Going totally online eliminates the cost of paper and circulation delivery and radically reduces production cost. By my back-of-the envelope calculations, based on Inland Press survey data, that might be about 35 percent of expenses.&#8221;<\/em> \u2014from <a href=\"http:\/\/www.concernedjournalists.org\/pulling-plug-print\">Dec. 2007<\/a><\/p>\n<p><em>&#8220;Paper and production costs account for nearly 25% of total expense. Circulation sales and billing together with fleets of trucks and delivery employees throwing papers on the front lawn account for 10% more.&#8221;<\/em> \u2014from <a href'=\"http:\/\/www.stateofthenewsmedia.org\/2008\/narrative_newspapers_economics.php?cat=3&#038;media=4\">March 2008<\/a><\/p>\n<p>I think the big disparity in our distribution numbers come from figuring in Circulation revenues.  which typically accounts for 30% to the top line.  In the case of NYT Q3 2008, circulation represented 32.8% of total revenue. Production costs however consumed ~48% of total revenues.  The difference is roughly a 10% cost, or in this case 16%.  <\/p>\n<p>This leads in to a whole other problem that newspapers are fighting with. Newspapers are losing money delivering newspapers (circulation wise). <a href=\"http:\/\/www.ajr.org\/article_printable.asp?id=2539\">June 2002<\/a>. They relied on print advertising to make up the difference and it worked until now.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Being a TV person, I&#8217;m curious about the cost structure of print newspaper operations. Over at the Monday Note, Fr\u00e9d\u00e9ric Filloux writes: In a typical operation, the biggest costs are industrial ones: around 25%-35% for paper and printing; another 30%-40% for distribution; around 18-25% for editorial; the remaining 10-15% are for administrative and marketing expenditures.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[7],"tags":[2024,1741,1856,2023,1743,2022],"class_list":["post-2250","post","type-post","status-publish","format-standard","hentry","category-journalism","tag-cost-structure","tag-newspapers","tag-print-advertising","tag-printing","tag-printing-costs","tag-robert-ivan"],"_links":{"self":[{"href":"https:\/\/adrianmonck.com\/about\/wp-json\/wp\/v2\/posts\/2250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/adrianmonck.com\/about\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/adrianmonck.com\/about\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/adrianmonck.com\/about\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/adrianmonck.com\/about\/wp-json\/wp\/v2\/comments?post=2250"}],"version-history":[{"count":1,"href":"https:\/\/adrianmonck.com\/about\/wp-json\/wp\/v2\/posts\/2250\/revisions"}],"predecessor-version":[{"id":2251,"href":"https:\/\/adrianmonck.com\/about\/wp-json\/wp\/v2\/posts\/2250\/revisions\/2251"}],"wp:attachment":[{"href":"https:\/\/adrianmonck.com\/about\/wp-json\/wp\/v2\/media?parent=2250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/adrianmonck.com\/about\/wp-json\/wp\/v2\/categories?post=2250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/adrianmonck.com\/about\/wp-json\/wp\/v2\/tags?post=2250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}