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NY Times raising prices again to offset ad slump

NY Times raising prices again to offset ad slump

The New York Times is raising its newsstand prices for the third time in less than two years as a severe advertising slump forces readers to shoulder more of the costs of producing newspapers.
With the latest changes announced Tuesday, individual copies of The New York Times on Mondays through Saturdays will have doubled to $2 since July 2007.
Like many other U.S. newspapers, the Times has been struggling amid declining advertising revenues and dropping circulation as readers migrate to the Internet.
For decades, newspapers were able to rely on steady increases in their ad revenue to cover most of the cost for gathering the news, printing the information and then distributing the copies. A reliable flow of advertising is one reason the Times was able to go from 1999 to 2007 with just one increase in the cover price of its weekday edition.
But ad revenue has been crumbling throughout the newspaper industry for the past three years, forcing newspapers to lay off workers, reduce wages and look for new ways to make money.
So far the revenue gains from higher prices haven't been nearly enough to overcome the advertising drought.
The New York Times Co., which also owns The Boston Globe and 16 other daily newspapers besides its flagship publication, lost $74 million during the first three months of the year as its ad revenue plunged 27 percent from last year. Circulation revenue edged up by 1 percent.
The upcoming increase, effective June 1, will boost the Times' weekday price by 50 cents, or 33 percent, from the current price of $1.50. The Times, which has the third-highest U.S. circulation on weekdays, increased the weekday price by 25 cents during each of the previous two summers.
The New York Times also is raising the price for its Sunday edition, which is the nation's top-selling newspaper on that day. Sunday's national and Northeast editions will cost $6, an increase of $1. In the New York area, it will cost $5, also a dollar more.
Home delivery rates aren't changing for now. That means most of the Times' readers won't be affected by the June 1 increases because home delivery accounts for nearly two-thirds of the newspaper's weekday circulation and more than 70 percent of the Sunday circulation.
The advertising downturn has sent seven publishers with daily newspapers into bankruptcy protection since December and triggered the closure of the Rocky Mountain News in Denver.


Updated : 2021-09-20 07:36 GMT+08:00