The Results of The Newspaper Preservation Act Are Controversial

The continuation of the Newspaper Preservation Act is uncertain. In 1989, the Supreme Court voted 4-4 to let a JOA accession go along between two Detroit papers. In the same year, the House Committee on the Judiciary's Economic and Commercial Law Subcommittee held hearings to determine, amid other entities, whether the act should be repealed. Although the act withstood both of these encounters with antagonists, the narrow tribunal obtain and increased congressional perusal mean that its continuing existence is no longer assured.

In 1970, Congress passed the Newspaper Preservation Act, which permitted news-papers intimidated with bankruptcy to share manufacturing plants and advertisement actions, an movement namely would otherwise violate antitrust laws. Since the decree was en-acted, the Justice Department has accepted thirty Joint Operating Agreements (JOAs), preserving the subsistence of multiple newspapers in numerous cities in the United States.76 Although 2 papers may share printing, advertising, and rotation functions, the deed stipulates that the papers' newsrooms and commentary pages have to remain divide and in-dependent. The success of JOAs has been mingled, whatever. As of 1999, JOAs were in area in fifteen U.S. cities, including Albuquerque, Birmingham, Charleston, Chattanooga, Cincinnati, Detroit, Fort Wayne, Honolulu, Las Vegas, Salt Lake City, San Francisco, Seattle, Tucson, and York, Pennsylvania.

Newspaper advertising revenues heave and fall with the economy. Revenues for 1997 were $41.3 billion, an increase from the annual before, but the persisted increase necessary to offset the rising cost of newsprint was precarious.78 In major newspaper markets, advertising is 35 percent retail, 27 percent automotive, and 7 percent travel. A drip in consumer spending alternatively employment opportunities instantly affects revenues.

In September 1997, Gannett owned 87 newspapers; Knight-Ridder, 33; Newhouse, 23; Times Mirror, 9; the New York Times Company, 20; and Dow Jones and Company, 20.74 In 1998, the Sunday New York Times had a circulation of 1,018,912; the Los Angeles Times, a Sunday circulation of 1,355,682; and the Detroit News and Free Press, a Sunday circulation of 796,468.

The results of the Newspaper Preservation Act are controversial. Its critics charge that such combinations walk advertising rates. Advertisers, such for supermarkets, who must use the newspapers to approach readers must pay the cost. These costs are passed aboard to buyers. Defenders of the act memorandum that it has preserved two editorial voices in some important cities. In 1983, for example, Seattle's two major papersthe morn Post-Intelligencer and the nightfall Timescombined. The Post-Intelligencer, which seemed to be defect before the venture, prospered for a period but has recently been in monetary straits.

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The relationship between readership and advertising namely intricate. When a periodical be-gins to lose circulation, a downward wheel begins. Readers buy the periodical for its news content and its proclaiming information. The newspaper with the larger circulation gets the greater share of advertising. Increased advertising increases the news aperture, which in turn attracts extra readers and with them extra advertisers. A newspaper trailing variant in a mart may find itself with 40 percentage of the readership but, because of this wheel, merely 25 percent of the advertising. Because advertising accounts for up to 80 percent of a newspaper's revenue, decreases in advertising tin spell a paper's demise.