Charging More and Wondering Why Readership Declined? A Longitudinal Study of U.S. Newspapers’ Price Hikes, 2008–2016

Abstract

Triggered by declines in newspaper circulation since the 2008 recession, “print is dying” is a prevailing assumption among journalism scholars and practitioners. However, circulation data are often reported out of context, resulting in misinterpretations of reader preference and misinformed strategy. To accurately assess demand for print newspapers, this study examines the price of 25 widely-circulated U.S. newspapers in 2008, 2012, and 2016. The analysis documented industry-wide, more-than-substantial price hikes. Seven-day home delivery price more than doubled, and weekday single-copy price tripled. Seven-day subscription now costs $510 a year–print subscribers are paying on average $293 more to have the same newspaper delivered to their doorstep. Despite the increase in price, about two-thirds of print readers remained loyal to a product that has become much more expensive and is considered dying by many. Further analysis on price elasticity of demand indicates that demand for the print product remains inelastic, which explains why so many newspapers implemented price hikes to increase circulation revenue. Nevertheless, the constantly increasing price raises concerns about the sustainability of newspapers’ pricing strategy in the longer term. These concerns and managerial implications are discussed.