Friday, November 1, 2024

What Declining Industry Can Afford to Alienate Half its Customers?

Some people believe the new trend of major U.S. newspapers declining to make endorsements in presidential races is an abdication of their “public interest” duties. But the simple matter is that news and information sources have shifted dramatically over the last several decades. 


So some might say that the huge decline in newspaper readership since 1996 simply suggests that people are getting their news and information elsewhere. That, in turn, has led to industry decline. 


If asked, consumers might well say they are as likely to get their news and information from podcasts as from newspapers. Twice as many are likely to say they get their news from television. Three times as many consumers might say they get their news and information from online news sites, while 2.5 times as many people might say they get their news from social media sites. 


Media Type

Percentage of Consumers

Online News Websites

36%

Social Media

30%

Television

25%

Print Newspapers

12%

Radio

8%

News Aggregators (e.g., Google News, Apple News)

18%

Podcasts

12%

Mobile Apps (News Apps)

15%


Where U.S. newspaper revenue was about $50 billion in 1996, it might be less than $14 billion in 2024. 


Year

Newspaper Revenue (in billions)

1996

$50.00

1997

$50.40

1998

$51.00

1999

$51.90

2000

$49.40

2001

$48.70

2002

$46.30

2003

$43.90

2004

$44.40

2005

$43.80

2006

$41.80

2007

$40.00

2008

$36.90

2009

$34.00

2010

$30.30

2011

$28.00

2012

$26.00

2013

$24.00

2014

$23.00

2015

$22.00

2016

$20.00

2017

$19.30

2018

$18.00

2019

$15.40

2020

$14.50

2021

$14.10

2022

$13.90

2023

$14.2 (estimate)


In other words, the U.S. newspaper business has shrunk nearly 75 percent since 1996. A declining industry can ill afford to alienate up to half its remaining customers. 


All that downsizing suggests a practical economic reality exists. Newspaper endorsements are inherently partisan, and therefore risk alienating up to half of readers. 


I know of few industries willing to deliberately antagonize up to half their potential customers, especially not industries that obviously are declining.


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