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With costs up and revenue down, circulation price increases are not filling the gap.
But the company said it still planned to meet its goal of achieving 10 to 15percentt earnings growth this year through circulation price increases and cost reductions.
In a conference call with analysts, Russell T. Lewis, the president of the Times Company, said that circulation price increases at The Times and The Boston Globe would increase revenue by $18 million to $20 million in 2001.
Daily circulation slipped 7.2percentto to 457,100 copies, and Sunday circulation slid 7.7percentto to 659,500 copies in the quarter, during which the Post implemented circulation price increases.
The company said in its release that it "expects to benefit from its digital subscription initiatives as well as from the print circulation price increase at The New York Times implemented in the first quarter of 2013".
The increases, coupled with a circulation price increase last fall at The Boston Globe, which is owned by the Times Company, will produce $30 million to $32 million in additional operating income in 2001, the Times Company said in a news release.
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The Newspaper Preservation Act of 1970 allows competing newspapers jointly to set advertising or circulation prices.
Circulation revenue grew by 10.4 percent, to $952.9 million, mainly from the growth in digital subscriptions and the rise in print circulation prices.
Intense competition has kept advertising and circulation prices low, and Gannett is well known in the industry for its aggressive pricing.
In the model, allowing newspapers to collude on advertising rates allowed for lowered circulation prices, leading to more subscribers and a more attractive market for new entrants.
Put another way, even if we had inflation (too much money in circulation), prices for many products and services would still be falling!
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CEO of Professional Science Editing for Scientists @ prosciediting.com