The coronavirus crisis has forced publishers to move rapidly to reduce print-related costs and transition their business models to more digitally-dependent news and information platforms.
That’s one of the clearest conclusions from the results of a Cribb, Greene & Cope Coronavirus Survey of newspaper owners and publishers released today. Seventy-six newspaper executives from across the country participated in the survey.
The COVID-19 crisis is pushing newspaper executives to take unprecedented measures to ensure their sustainability and relevance in a post-pandemic world. Nearly 50% of the survey respondents are projecting ad revenue declines of 30% or more in the second quarter of this year.
“Best to make dramatic cuts now rather than slowly,” one survey respondent said. “Focus on digital first and push everything through social media.”
Several advised colleagues to use the crisis as a time to strengthen relationships with advertisers and readers. “Do everything you can to show that you support local businesses owners,” one said.
To offset top line revenue losses, newspaper executives are:
The coronavirus crisis is accelerating newspaper executives’ plans to “right-size” staffing, capture more digital revenue and transition to subscription-based revenue models.
The Cribb, Greene & Cope team wants to thank all participants in our coronavirus survey. Here are the individual results of the survey:
1. Have you adjusted print frequency in the short term?
Fifty-four percent of respondents indicated that they do not plan to change their print frequency in the short term. The other 46% are cutting at least one day, or going to a digital-only strategy.
2. Do you believe your publication frequency reductions will be permanent?
Of the respondents that have or plan to change print frequency, 58% believe the reductions will not be permanent, while 42% plan to keep frequency at the reduced level for the foreseeable future.
3. Has paid print circulation: increased, decreased or stayed the same?
Nearly half (46%) of executives surveyed said that their paid print circulation has stayed the same. Twenty-three percent have seen an increase in paid print circulation.
4. Has paid digital circulation/traffic: increased, decreased, stayed the same?
Seventy percent of newspaper executives who responded said that their paid digital revenue has increased since the crisis broke.
5. Do you anticipate a revenue decrease in Q2 (April-June) and if yes, by how much?
Our purpose in asking this question was to gauge the short-term effects of the pandemic thus far. Fifty-one percent of respondents indicated that they expect at least a 30% decline in revenue for Q2. Only 4% said they expect no revenue decreases.
6. Do you anticipate a revenue decrease in Q3 (July-Sept.) and if yes, by how much?
Our purpose in asking this question was to gauge the mid-term effects of the pandemic this year. Thirty-two percent of respondents indicated it is unclear at this time, while 48% expect a decrease between 0-20%.
7. Do you anticipate a revenue decrease in Q4 (Oct.-Dec.) and if yes, by how much?
Our purpose in asking this question was to gauge the longer-term effects of the pandemic this year. One third of respondents said that it is unclear at this time.
8. Have you reduced payroll?
Seventy-one percent of those surveyed responded yes.
9. If you have reduced payroll, by how much?
Most newspaper executives (40%) have reduced payroll by 10-20%.
10. What method(s) have you used to cut payroll (select all that apply)?
Respondents are utilizing a mixture of payroll reductions evenly spread between permanent layoffs (42%), short term mandatory furloughs (42%) and temporary reductions in wages (39%).
11. Have you seen an increase in unpaid receivables?
Sixty-two percent of respondents have seen an increase in unpaid receivables.
12. What methods have you employed to reduce newsprint consumption?
Half of respondents (50%) have reduced per-issue page count while 24% have cut copies for bulk sales, NIE, single-copy, etc. Thirteen percent have eliminated TMC products.
13. Have you applied for SBA loans or other forms of government financial assistance?
Eight-five percent of newspaper executives have applied or plan to apply for government assistance.
14. How have you approached the coverage of Covid-19 pandemic in your newsroom?
The following are some comments/suggestions from survey respondents:
15. What suggestions do you have for fellow publishers to weather this crisis?
The following are some comments/suggestions from survey respondents: