Can the web buoy papers as print rapidly sinks?

A closer look at the newspapers' plummeting circulation figures.

Reading the monthly circulation round-up for the national press used to be a little like running your eyes over the football results to see which teams were up or down.

I can recall feeling a little thrill when one of my favourite papers was doing well. 

That's a feeling I haven't felt now since around 2005. Looking at the March figures from the Audit Bureau of Circulations it is increasingly clear that we are in the middle of the biggest shift in the way Briton's consume news and information in modern media history. Not only is every national newspaper title losing sales: the pace at which they are doing that appears to be increasing.

It looks like the era of some media giants (in print anyway) is drawing to a close.

Up until the last decade, the Guardian had a rock-solid circulation at around 400,000. Today, it probably still has that brand loyalty – but not in print.

An increasingly thin print edition (and an expensive one at £1.20 during the week) was down 16.8 per cent year on year to 217,190. You don't have to be a maths genius to work out that falls like that are not sustainable. 

The Guardian is shifting towards being a predominately online brand. The question is whether it can find a way to take print revenue with it so it can continue to employ anything like the 600-plus journalists it currently does. Online, it now reaches more than 4m different browsers a day (source ABC, again). But those 200,000-odd print sales (more on Saturdays) still account for 75 per cent of income.

The Financial Times is also shifting towards a web-only future, in the UK at least – rather more comfortably than the Guardian, thanks to its successful paywall strategy.

Worldwide, FT sales dropped 16.3 per cent to just over 319,000 in March. Of those, just over 65,000 were forking out for the UK edition (full price, £2.50 a day).

Whatever publishers do, print sales continue to drop. Paywall or no paywall.

The UK's most successful newspaper online, the Daily Mail, is also the best print sales performer in the dailies (dropping just over 4 per cent year on year) – suggesting that investment in online doesn't necessarily mean you are pushing your paid-for print readers into a free alternative (as critics of the Guardian's "digital first" strategy have suggested).

But then there is a big difference between paying 55p for the Mail and £1.20 for the Guardian.

The Times dropped 11.7 per cent to 394,102 copies a day in March. But that doesn't include claimed digital subscribers of more than 100,000, giving it a paid-for readership total nipping at the heels of the Telegraph.

The Independent is now selling just 71,000 copies a day at full price (versus paid-for sales of around 210,000 for its cut-price stablemate i) – meaning that some sort of merger of those two titles has to be a possibility.

Totting up the totals there were an average of 9.2m daily newspapers sold per day in March (compared with 9.8m a year ago), and just 8m Sunday newspapers (compared with 9.8m a year earlier when the News of the of World was still around).

The increasing ubiquity of smartphones and mobile broadband appear to be behind the latest dip in the fortunes of print. 

We are a long way from writing off news brands which have shown incredibly resilience since the post-Wapping revolution “golden age” of print profitability in the late 1980s first went into serious decline post-2005.

But these remain scary times for journalists and anyone who cares deeply about journalism. 

Read all about it: the Guardian's income is still largely derived from its shrinking print sales. Photo: Getty Images

Dominic Ponsford is editor of Press Gazette

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Leader: The unresolved Eurozone crisis

The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving.

The eurozone crisis was never resolved. It was merely conveniently forgotten. The vote for Brexit, the terrible war in Syria and Donald Trump’s election as US president all distracted from the single currency’s woes. Yet its contradictions endure, a permanent threat to continental European stability and the future cohesion of the European Union.

The resignation of the Italian prime minister Matteo Renzi, following defeat in a constitutional referendum on 4 December, was the moment at which some believed that Europe would be overwhelmed. Among the champions of the No campaign were the anti-euro Five Star Movement (which has led in some recent opinion polls) and the separatist Lega Nord. Opponents of the EU, such as Nigel Farage, hailed the result as a rejection of the single currency.

An Italian exit, if not unthinkable, is far from inevitable, however. The No campaign comprised not only Eurosceptics but pro-Europeans such as the former prime minister Mario Monti and members of Mr Renzi’s liberal-centrist Democratic Party. Few voters treated the referendum as a judgement on the monetary union.

To achieve withdrawal from the euro, the populist Five Star Movement would need first to form a government (no easy task under Italy’s complex multiparty system), then amend the constitution to allow a public vote on Italy’s membership of the currency. Opinion polls continue to show a majority opposed to the return of the lira.

But Europe faces far more immediate dangers. Italy’s fragile banking system has been imperilled by the referendum result and the accompanying fall in investor confidence. In the absence of state aid, the Banca Monte dei Paschi di Siena, the world’s oldest bank, could soon face ruin. Italy’s national debt stands at 132 per cent of GDP, severely limiting its firepower, and its financial sector has amassed $360bn of bad loans. The risk is of a new financial crisis that spreads across the eurozone.

EU leaders’ record to date does not encourage optimism. Seven years after the Greek crisis began, the German government is continuing to advocate the failed path of austerity. On 4 December, Germany’s finance minister, Wolfgang Schäuble, declared that Greece must choose between unpopular “structural reforms” (a euphemism for austerity) or withdrawal from the euro. He insisted that debt relief “would not help” the immiserated country.

Yet the argument that austerity is unsustainable is now heard far beyond the Syriza government. The International Monetary Fund is among those that have demanded “unconditional” debt relief. Under the current bailout terms, Greece’s interest payments on its debt (roughly €330bn) will continually rise, consuming 60 per cent of its budget by 2060. The IMF has rightly proposed an extended repayment period and a fixed interest rate of 1.5 per cent. Faced with German intransigence, it is refusing to provide further funding.

Ever since the European Central Bank president, Mario Draghi, declared in 2012 that he was prepared to do “whatever it takes” to preserve the single currency, EU member states have relied on monetary policy to contain the crisis. This complacent approach could unravel. From the euro’s inception, economists have warned of the dangers of a monetary union that is unmatched by fiscal and political union. The UK, partly for these reasons, wisely rejected membership, but other states have been condemned to stagnation. As Felix Martin writes on page 15, “Italy today is worse off than it was not just in 2007, but in 1997. National output per head has stagnated for 20 years – an astonishing . . . statistic.”

Germany’s refusal to support demand (having benefited from a fixed exchange rate) undermined the principles of European solidarity and shared prosperity. German unemployment has fallen to 4.1 per cent, the lowest level since 1981, but joblessness is at 23.4 per cent in Greece, 19 per cent in Spain and 11.6 per cent in Italy. The youngest have suffered most. Youth unemployment is 46.5 per cent in Greece, 42.6 per cent in Spain and 36.4 per cent in Italy. No social model should tolerate such waste.

“If the euro fails, then Europe fails,” the German chancellor, Angela Merkel, has often asserted. Yet it does not follow that Europe will succeed if the euro survives. The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving. In these circumstances, the surprise has been not voters’ intemperance, but their patience.

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump