The News & Observer raises rates while also considering possible newsroom layoffs

12 Jun

The News & Observer is raising its subscription rates, so says a letter attached to the newspaper that was tossed outside my front door Tuesday.

The increases aren’t much, but they come as the newspaper prepares to possibly lay off 10 percent of its newsroom staff.

A 4-week, home delivery subscription now costs $14.08, up from $12.70. If I’ve done my math right, that comes to an additional $17.94 a year.

The letter says the increases are necessary “in order to continue to provide our customers the highest level of service and to offset significant increases in newsprint, fuel and distribution expenses.”

Rising costs in gas and newsprint and declining ad revenue were cited as reasons why the N&O offered buyouts to about 200 workers this spring. Only six newsroom staffers were reported as accepting the buyouts.

With possible layoffs looming, I take issue that the letter notifying me of the rate increases saying the increases are necessary “to continue to provide our customers the highest level of service.”

Is that really true? I don’t doubt that the reporting, writing and photography continues to be top-notch … but how long will the news staff continue to keep that up with less staff?

Further, I’ve heard that the N&O, like many newspapers, is reducing the number of pages it prints. I don’t know/have specific stats on how many fewer pages there are (or will be) and what sections of the paper they’re coming from (obviously quality is less likely to suffer if the page cuts are coming from say classifieds or comics versus news or sports).

The small increase in subscription rates will not lead me to cancel my subscription to the N&O. It makes sense with the rising gas and newsprint rates. I just wish the circulation guy who wrote the letter would have chosen his words a little more carefully in explaining to me why more money will be deducted from my bank account next month.

It’s sad that the N&O even has to resort to layoffs to cope with McClatchy’s budget problems. But who knows what will happen with the layoffs, some were predicting they would happen Monday, but I haven’t heard of the ax falling yet.

I’m sure a lot of my Internet friends can’t even fathom subscribing to the print edition of the newspaper. Do you think $14.08 every four weeks is worth having the news delivered to your door every morning? How do you think newsroom layoffs might affect the quality of the N&O?

11 Responses to “The News & Observer raises rates while also considering possible newsroom layoffs”

  1. Jason Peck June 12, 2008 at 2:28 pm #

    It’s worth it if that’s how you like to read your news. But I’d prefer to read online and satisfy my inner hippie and save trees.

  2. Dan June 12, 2008 at 2:44 pm #

    I read the paper daily….then moved to weekend…then moved to just sundays…

    i’d keep getting it if the carrier didn’t make sure the paper was ruined when it rains or launch it under the neighbor’s giant truck.

  3. Tom June 12, 2008 at 5:58 pm #

    It isn’t a surprise. But you make a very good point. Higher cost, less staff… Doesn’t sound like a recipe for serving the reader. And, I’m sure that if the gasoline prices go back down and the print costs were to drop the subscription prices would remain the same.

  4. Kyle Johnson June 12, 2008 at 8:31 pm #

    We get the “weekend” paper, which keeps adding days. Maybe they could give me just the weekend paper instead of forcing me to take Friday as well (which goes directly in the recycling bin). My wife is the one who really wants the paper (mainly for coupons and promo flyers). I like reading it Saturday and Sunday morning, but it probably isn’t worth what we pay for it.

  5. ilinap June 12, 2008 at 8:40 pm #

    Service Schmervice. Without talented people there is no service.

    I love the Internet, but nothing beats the paper and a cup of coffee on my front porch.

    In my humble brand consultant opinion, this is one more bigger picture issue that effects the already beige brand that is Raleigh. Our state capital, no less.

  6. kate June 13, 2008 at 9:13 am #

    . . . it seems to be the new evolution in music, books, mags, newspapers, etc. – we’re being forced to stop using up resources like petroleum and trees and switch over to electronic media (which has it’s own resource issues of course but nothing that can’t be solved as we develop clean energy sources, right?). and as someone who is not in the news industry, i’m pretty horrified by what is happening as newspapers/tv/mags have gone so corporate that the shareholders get to decide what is and isn’t news based on what brings in most revenue or keeps the advertisers happy. it seems to be such a mess right now, but evolution seems to be bringing interesting shifts w/ citizen produced news. we need the professionals, but if the professionals are gagged and bound, what else can we do? and i can’t help but wonder how the folks in the time of radio freaked out as tv took over fifty years ago . . .

  7. templates June 14, 2008 at 9:48 pm #

    There is layoffs coming..I work there and monday AM there will be an announcement..there will be major cuts and firings/layoffs in the pressroom(the printers of the paper) as well as the newsroom.There also will be changes to how and when the paper is printed which will result in later delivery times for customers.The company has gone downhill fast since mcclatchy bought knight-ridder..Its a shame because alot of good people that do a good job and care about the paper wil be let go This monday

  8. ginny June 16, 2008 at 11:10 am #

    Templates,
    It’s a shame to hear that. Thanks for the inside information. Please let us know how things go today. We’re all curious to find out what’s going to happen.

  9. roycecedric November 6, 2009 at 2:31 pm #

    Good article. Not only do daily newspapers need to grow online attention, but the revenue stream has to grow exponentially. There is layoffs coming.

Trackbacks and Pingbacks

  1. McClatchy’s budget woes lead News and Observer to cut 70 positions | Ginny From The Blog - June 17, 2008

    [...] departments with the Charlotte Observer’s departments, the paper reported. These changes come a week after the newspaper announced that it is raising subscription [...]

  2. That Is Beautiful » Blog Archive » News and Observer publisher writes letter to readers - July 12, 2009

    [...] * Prices have increased in racks and stores and for home delivery. Subscription rates will increase again in August, Quarles said. (Home delivery rates were also raised in July 2008). [...]

Leave a Reply