The Press: The Vanishing Newspaper

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Since 1930 the U.S. newspaper business has been in a downward economic spiral which is not yet stopped. Such is the gist of a 59-page survey issued last week by the Newsprint Association of Canada, 75% of whose paper is sold to the U.S. press. Some of the things which the Canadian newsprint makers view with alarm:

> The total U.S. advertising budget has shrunk: it is now an estimated $1,660,000,000, down about $680,000,000 since 1929. Out of this shriveling ad dollar newspapers still get the biggest cut—32.8¢ (periodicals took 13.6¢, radio 12¢). Dollarwise, newspaper advertising revenue has fallen from $797 million in 1929 to $545 million (periodicals down from $323 million to $225 million; radio up from $23 million to $200 million).

> Newspaper advertising revenue has not kept pace with retail sales, other business growth. Newspaper revenue (advertising and circulation), which was .9% of the national income in 1919 and mounted to 1.49% in 1933, is now down to 1.11% (but it is still around $900,000,000, better than in any except the best years of the '20s).

> Newspaper advertising linage has sagged 33% since 1929, is now back to 1918-19 levels.

> Meanwhile production and personnel costs are frozen at all-time highs.

> Newspapers have maintained their advertising rates close to the 1929 level, so that they are now at a comparative disadvantage with other advertising media.

> An increase of circulation revenues (from $276 million in 1929 to $330 million) accompanying the drop in advertising has reduced the proportion of newspaper revenue which comes from advertising from 74% to 63% (about the 1909 level).

> The biggest part of newspapers' increased circulation revenue comes from higher prices; the audience of other periodicals (particularly news-picture magazines) and of radio has grown much faster.

> The number of U.S. dailies has fallen from 2,036 in 1923 to 1,877 in 1940.

In spite of these pessimistic statistics, newspaper circulation has been on the upgrade: U.S. publishers sell 9,500,000 more papers every day (10,700,000 more on Sunday) than they did in 1923.