Newspapers in Chillicothe – our take on upcoming changes
- Details
- Category: Opinion
- Published on Wednesday, 06 July 2011 16:06
- Written by Rich St. John
Last week, the startling news that our competitor is now becoming a free newspaper beginning July 20th, was announced. How will this affect you and Chillicothe as a community? We will review this information from both as an industry insight and as a community.
The Times group, including the Bulletin, is owned by a New York investment company, Gatehouse Media. Gatehouse owns hundreds and hundreds of newspaper throughout the U.S., including the Peoria Journal Star. As such, they have resources must local newspapers do not. They are a Peoria paper covering Chillicothe even having their office in the Peoria Journal Star building.
This change could be easily viewed as a perhaps desperate measure and is in reality a financial move. The recent evidence of adding Dunlap, then the heavily discounted subscription drive, and now going free, does add credence to groping for more revenue. This latest move of being free is again with risks. Piggybacking with PJS subscribers may lower distribution costs, but printing costs will likely go up while losing all subscription revenue. This can only be recovered by increasing advertising both in numbers and rates. Adding Dunlap most likely is a move to acquire more Peoria advertisers. Will the word ‘Chillicothe’ eventually disappears from their logo?
We have found when a newspaper no longer cares about the community it serves; the community cares less about that newspaper. The community needs and wants go hand in hand with the local newspaper’s efforts. While true most print media is struggling as change has become more prevalent, it still remains the backbone of the community. Newspapers are going thru this transition with various ideas and methods for 1) reducing costs and/or 2) raising more revenue while serving the community as well or better. We feel the Chillicothe Independent is doing that. It is ironic that we recently ran some editorials on this subject.
Is the growth of the Chillicothe Independent in part a reason for this change? We like to think so, and evidence is that it very well may be. Again, it will be Chillicotheans choice.
Local newspapers serve two masters; 1) readers and 2) advertisers. We must provide news of the community for reader’s advisement and entertainment. Advertisers, especially local, need an affordable platform to aid in their business or event.
Traditionally subscription revenue helps defer the printing and distribution costs. Advertising revenue provides for other business needs such as, Payroll, Office, Insurance, Supplies, etc, and hopefully a profit. This has been the financial foundation for years. So how is the loss revenue of subscribers being made up, or is it?
We do not see this as a benefit to Chillicothe. The supposed 5 times reader increase is highly suspicious. Was the subscription base that low? Do that many more people subscribe to the PJS? Does this figure include the large unincorporated area of Dunlap? If so, how will this help Chillicothe? Is the goal to ‘squeeze out’ the Independent?
The Independent is your ‘Hometown’ newspaper even more so now. We still maintain a local office, local staff, and much more local content. Recent internal audits demonstrate that about 90% of The Independent, both news and ads, is about Chillicothe, while the competitor is slightly over 30%. Even the most skeptical must concede this.
The decision will be up to you. The system, or newspaper, you decide to read and support will ultimately decide. We invite you to review and subscribe to the Independent. We will continue to provide the best we are able to, and it will include Chillicothe. We care about Chillicothe! The choice is yours!
