Digital subscriptions boost newspaper circulation revenue in 2012

After years of devastating losses, the newspaper industry has a glimmer of good news. Circulation revenue for daily newspapers grew in 2012 for the first time in a decade as more people paid to subscribe to digital editions, according to data compiled by the Newspaper Assn. of America.

The finding is noteworthy because it demonstrates that the newspaper industry, which has been hammered in recent years as consumers and advertisers migrated to the Internet, has begun to adapt its business model to a new era. Newspapers generated $10.4 billion in circulation revenue in 2012, a 5% increase over the previous year. It was the first gain since 2003, as more consumers read newspaper content on desktops, tablets and cellphones. Otherwise, the news was not so good. The growth in digital revenue in 2012 did not make up for continued declines in newspapers' traditional — and most important — sources of revenue. The NAA study found that overall revenue for daily newspapers fell 2% last year to $38.6 billion. That compared with $39.5 billion in 2011. Advertising dollars continued to shrink, declining 6% last year. Revenue for ads in printed daily and Sunday editions tumbled 9%, with national ads and real estate ads experiencing the sharpest declines. Industrywide, advertisers spent $18.9 billion on print ads in newspapers.