US: Price hike for newsprint not expected in 2009
Posted by Rosemary D'Amour on November 24, 2008 at 11:35 AM
Several paper manufacturers have reported to Media Bistro that they will not be raising their rates in 2009, giving the financially strapped industry a break in costs.
The high rates of newsprint have contributed to "a wave of downsizing in the beleaguered newspaper industry."
The high rates of newsprint have contributed to "a wave of downsizing in the beleaguered newspaper industry."
In the US, the cost of newsprint rose to a twelve-year high, up 37% from last October on the East Coast. Several "major paper producers" are indicating that they've reached their peak in prices.
The move would save "millions upon millions of dollars for the newspaper companies," a newspaper executive in touch with paper producers said. The sources for Media Bistro asked to remain unnamed because of the confidential nature of the discussions.
However, a representative for White Birch Paper, a North American newsprint manufacturer, said the company "had not made any such assurances" to its clients.
Publishing companies suffering from declining circulation and ad revenue have been "crippled" by newsprint price increases throughout the last decade.
The crunch on newspapers has taken its toll on publications--in addition to layoffs and reduced content, papers such as USA Today raised newsstand prices, and The Christian Science Monitor became the first national newspaper to forego a daily print edition, going online.
The end of the "price hike" would be "extremely helpful" for newspapers to combat the recession--in fact, if the demand for paper continues to decrease, then prices may decrease as well.
Source: Media Bistro
The move would save "millions upon millions of dollars for the newspaper companies," a newspaper executive in touch with paper producers said. The sources for Media Bistro asked to remain unnamed because of the confidential nature of the discussions.
However, a representative for White Birch Paper, a North American newsprint manufacturer, said the company "had not made any such assurances" to its clients.
Publishing companies suffering from declining circulation and ad revenue have been "crippled" by newsprint price increases throughout the last decade.
The crunch on newspapers has taken its toll on publications--in addition to layoffs and reduced content, papers such as USA Today raised newsstand prices, and The Christian Science Monitor became the first national newspaper to forego a daily print edition, going online.
The end of the "price hike" would be "extremely helpful" for newspapers to combat the recession--in fact, if the demand for paper continues to decrease, then prices may decrease as well.
Source: Media Bistro
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