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A decline in U.S. newspaper circulation accelerated in the six months through March, led by drops at the Los Angeles Times and San Francisco Chronicle.
Newspaper shares rose as Web site readership increased. Daily circulation for 770 U.S. newspapers fell 2.6 percent from a year earlier to 45.4 million, the Newspaper Association of America said in a statement yesterday, citing preliminary figures by the Audit Bureau of Circulations.
Circulation dropped at seven of the 10 largest dailies and at three of four papers overall. Newspaper Web sites had 8 percent more users in the first quarter, a separate survey showed, illustrating a shift in readers and advertisers from print to digital formats.
"The Internet is the fastest growing part of the newspaper business," said John Kimball, chief marketing officer of the newspaper trade association, on a conference call. "Counting units sold today obscures the total usage of newspapers today."
The decline in print circulation is greater than a 1.9 percent drop in the same period a year earlier, according to the newspaper association. The group said revenue generated from newspaper Web sites is rising 25 percent to 30 percent annually and totaled $2 billion last year.
Tribune Co., owner of the Chicago Tribune and the Los Angeles Times led newspaper shares higher, gaining $1.82, or 6.5 percent to $29.84 in its biggest gain in more than six years.
"Tribune showed the most improvement, though with the assistance of selective discounting," said Frederick Searby, an analyst with J.P. Morgan Chase & Co., in a note to investors.
The Chicago Tribune was one of three top 10 newspapers to show a circulation increase, rising 0.9 percent to 579,079.
The largest percentage decline among the top 10 newspapers was at Tribune Co.'s Los Angeles Times. Circulation fell 5.4 percent to 851,800, though less than the 6.5 percent drop a year earlier.
"Our March statement reflects our ongoing focus on home delivery circulation, the part of our readership that means the most to our advertisers, while selectively reducing other paid copies," Publisher Jeff Johnson said in a statement. Daily home delivery had increased by 24,257 copies, according to the statement.
Circulation at the San Francisco Chronicle, which is not in the top 10, fell 15.6 percent to 398,200.
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