Even before the
recession, and social media took off, newspapers were feeling the heat.
Because the Web was gobbling up their most lucrative sections (e.g., classifieds) many newspaper publishers thought they could survive with some consolidations, cost cutting and tweaks.
Unfortunately, nothing seemed to work. They kept cutting costs as ad revenues fell, but instead of smelling the sweet fragrance of printers ink, they were still smelling the stench of red ink.
Most everyone in the industry was starting to seriously worry. Would their newspaper survive?
After getting beat up for years, the San Francisco Chronicle finally took a bold step and raised their subscription price 63%. The impact was immediate. The Chronicle’s circulation dropped 26%. But, they were back in the black.
In hindsight this was a brilliant move, not of pricing (that was the tactic) but of the strategy of repositioning the newspaper — from a common mass-product to a small luxury experience.
As it turns out, avid readers, who are generally better educated and with higher average incomes, are happy to pay a fair price for the privilege and experience of having something tangible to enjoy with their morning coffee.
Newspapers are not for everyone. They shouldn’t try to be.
Today, newspapers are a small luxury, not an entitlement, but the publishers are entitled to a fair profit.
The key now for publishers is: how to build a luxury brand around this new positioning?
Please comment on this blog.
Twitter us with your thoughts @ twitter.com/BrandingComm or visit us on Facebook.
#branding
Because the Web was gobbling up their most lucrative sections (e.g., classifieds) many newspaper publishers thought they could survive with some consolidations, cost cutting and tweaks.
Unfortunately, nothing seemed to work. They kept cutting costs as ad revenues fell, but instead of smelling the sweet fragrance of printers ink, they were still smelling the stench of red ink.
Most everyone in the industry was starting to seriously worry. Would their newspaper survive?
After getting beat up for years, the San Francisco Chronicle finally took a bold step and raised their subscription price 63%. The impact was immediate. The Chronicle’s circulation dropped 26%. But, they were back in the black.
In hindsight this was a brilliant move, not of pricing (that was the tactic) but of the strategy of repositioning the newspaper — from a common mass-product to a small luxury experience.
As it turns out, avid readers, who are generally better educated and with higher average incomes, are happy to pay a fair price for the privilege and experience of having something tangible to enjoy with their morning coffee.
Newspapers are not for everyone. They shouldn’t try to be.
Today, newspapers are a small luxury, not an entitlement, but the publishers are entitled to a fair profit.
The key now for publishers is: how to build a luxury brand around this new positioning?
Please comment on this blog.
Twitter us with your thoughts @ twitter.com/BrandingComm or visit us on Facebook.
#branding
He joined the World-Herald as assistant to the president in 1975,
after selling the Sidney paper. Five years later, he was elected vice
president. He moved up to president and chief operating officer of the
Omaha World-Herald Co. in 1985, and to CEO in 1989.
Posted by: propecia online | April 27, 2010 at 02:46 PM
It's great to hear from you and see what you've been up to. This blog makes me realize the energy of words and pictures. Keep coming up with ideas.
Posted by: New Jordans | May 10, 2010 at 06:19 PM
Thank you for that great tutorial. I think it is the only one on the Web. The three parts with the picture are in my files, now.
You make me happy :-)
Posted by: Retro Jordans | September 03, 2010 at 06:32 PM
Uhmmm. That sounds kinda probable.
Posted by: krk realty | March 18, 2011 at 10:45 AM