• by Erik Sass , September 4, 2008

The New York Sun may close at the end of September unless its publishers are able to raise more money, according to its Editor Seth Lipsky, who warned readers of the possibility in an editorial posted on the paper's Web site late Wednesday. Lipsky said the paper's staff was already aware of the impending decision, which could see the closure of one of the few new paid major market daily newspapers launched in the United States in the last decade.

Since its launch in April 2002, the Sun has provided an unapologetically conservative spin on political and international news, more strident and transparent about its opinions than television counterparts like Fox News, and more highbrow than tabloid competition like The New York Post. Its approach also stood in contrast to The Wall Street Journal, which has long separated news reporting and opinion. However the Sun also gained respect for reporting on non-political subjects including sports and culture.

But the newspaper has had mounting financial problems - even though it was "one of the few newspapers in America to see substantial increases in print advertising revenues not only last year and the year before but also so far this year," as Lipsky wrote in his note to readers. The main problem, he explained, is that "the expense of producing and distributing the paper exceeds our revenues."

The costs of paper and ink have risen in part because of increasing foreign demand for both products, while the cost of distribution grew with the unprecedented jump in oil prices since 2003.

The Sun certainly isn't alone in feeling the economic squeeze. The New York Times, Washington Post, and The Wall Street Journal have all increased their newsstand prices repeatedly over the last several years to cover higher distribution costs.

Recently Tribune Co.'s new ownership instituted a "50-50" policy dictating that their newspapers will be no less than half advertising by volume, enabling them to cut editorial content and save money on printing and distribution.