For years circulation has declined at daily newspapers, but specialty publications have in many cases bucked the trend. Now it seems gravity is catching up to legal newspapers, based on the 2006 annual report of Daily Journal Corp.
The report shows circulation at the flagship Los Angeles Daily Journal fell 5.4 percent in the year ending Sept. 30. At two other L.A.-based properties, Daily Commerce and California Real Estate Journal, paid subscriptions fell 22 percent and 42 percent respectively.
Financially, the company reported revenues of $32.4 million for the year, representing a drop of 2.7 percent compared with 2005. Net income fell a whopping 43.1 percent to $2.4 million.
These days the Internet usually receives the blame for circulation woes and that seems to tell the story at Daily Journal. Classified and display ads account for about 34 percent of total revenues, but “recently, Internet sites devoted to recruitment have become significant competitors of our newspapers and Web sites for classified advertising,” according to a company report. Executives at the paper declined to be interviewed.
At the same time, state legislatures are looking to reform public notice advertising, including proposals to move them online. The so-called legal ads represent 28 percent of Daily Journal revenues. Any reform that eliminates or reduces the need for legal ads “would have a significant adverse impact on the company’s public notice advertising revenues,” the report states.
Despite the cloudy outlook, the report barely moved the stock price. Five trading days after the report’s release, the stock closed at $41.58, up less than 1 percent. No analysts currently track the company.
Teamsters Take Times
Any future buyer of the Los Angeles Times will inherit a union contract as part of the deal, now that the paper’s press operators have voted to join the International Brotherhood of Teamsters, a conglomerate union with 1.4 million members nationwide.
The press operators, who work in printing plants in downtown Los Angeles and Costa Mesa, voted Jan. 4 and Jan. 5. The vote was 140 for representation and 131 against, the union said.
The paper’s parent, the Tribune Co., and management at the Times aggressively fought the unionization of the pressroom through meetings and memos to the workers. Publisher David Hiller maintained that pressroom staff at the Times enjoys some of the best wages and benefits in the country. According to an article in the Times, a journeyman press operator makes about $60,000 per year.
“With all of the uncertainty over the L.A. Times’ ownership over the past several months, our ability to bargain strong contracts gives these new members strength in the workplace,” said James Hoffa, Teamsters president.
Until the vote, the operators didn’t have a union despite years of organizing attempts. This time the Teamsters’ message focused on protecting jobs and benefits under Tribune management, which bought the paper in 2000. Since then, the Tribune has cut more than 200 journalist jobs. The press workforce also has shrunk, due in part to closure of a printing plant in the San Fernando Valley.
The Times has traditionally taken an anti-union stance, dating back to a bombing at the paper in 1910. Two union organizers eventually pleaded guilty to planting dynamite that killed 20 workers.
Mobile Coupons
To taking photographs and watching TV, add coupon clipping to the list of things those over 50 years of age never thought they’d do with their phones.
Access 360 Media in Culver City put together such a program for three of its top retail clients: Quiksilver (snow equipment), Mandee (junior fashion) and f.y.e. (music, videos and games). The mobile phone strategy is a natural for Access 360, given that it specializes in reaching the 12- to 34-year-old shopper demographic.
The campaign, which began before the holidays and runs through January, utilizes Access 360’s video screens in stores as well as in-store signage. The ads explain how subscribers of Cingular Wireless (another Access 360 client) can receive special offers via their mobile phones. By texting a keyword (Quik, Mandee or Fye) and a codeword, the young and mobile instantly receive discount offers that can be redeemed at the cash register.
In addition, the retailers had exposure on Cingular’s customer Web site.
“Mobile coupons are a new and interesting way to connect to young customers,” said David Garver, executive director of segment marketing at Cingular.
The strategy can “connect with consumers where it matters most to them at retail, online and on their mobile phone,” added Lon Otremba, president of Access 360.
The “Insider Deal” program offers 30 percent off at Quiksilver, a buy one get one free promotion at f.y.e., and a gift with purchase at Mandee.
Nationally, Access 360 has 2,200 video screens at retail locations. Clients include Wrigley’s, Universal Music, Motorola and Underground Station.
News & Notes
Digital marketing agency Carat Fusion has appointed Michael Soh to the position of general manager for the Los Angeles office. Soh previously served as vice-president of integrated media at the office, and he will continue to manage the local media for clients. Radio One, the largest radio broadcaster targeting African-American and urban listeners, has agreed to encode its stations in Los Angeles for the Arbitron Inc. Portable People Meter. The PPM is an electronic audience measurement system that uses silent radio signals to monitor a person’s listening habits. The system will deploy fully in Los Angeles in January 2008. Radio One’s L.A. station is KRBV-FM (100.3)
Staff reporter Joel Russell can be reached at
[email protected]
, or at (323) 549-5225, ext. 237.
