Posted by
Fly on Monday, July 10, 2006 1:56:47 AM
Professor Bainbridge.com in "NYT's Keller, Circulation, and Securities Law" delves into how much circulation drop by the New York Treason would require filing of SEC information. Hugh Hewitt also jumps on this topic in More on the Ongoing Collapse of the Los Angeles Times where he takes a stab at some of the nuances of ABC circulation accounting. Unfortunately both great bloggers and legal scholars blew it on this one.
The concept that both miss is that circulation revenue typically accounts for less than 10% of dead tree media revenue. The mother lode is from advertising. While advertising revenue is impacted by changes in circulation there is a delay factor of 6 to 24 months between circ changes and ad revenue changes. Some advertisers will adjust budgets with the next ABC audit and some will let things play out over a longer period.Fly@DumbLibs.com