The Newspaper Association of America reports that print and online advertising has fallen by 35% since the first quarter of 2008. Circulation has dropped alarmingly too. Yet almost all newspapers have
survived, albeit with occasional help from the bankruptcy courts. American newspaper companies like McClatchy stayed mostly profitable, even as revenues plunged. Some companies are now worth 10 times
as much as in the spring of 2009, although they remain far from pre-recession heights.
Steep cover-price rises have helped. But for the most part newspapers have cut their way out
of crisis. In the past year McClatchy reduced payroll costs by 25%. Many publications closed bureaus and forced journalists to take unpaid leave. At Gannett, 46 local titles now carry national and
international news from USA Today, the flagship national paper. Another unexpected boon: paper prices have dropped 40%.
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