Oct. 30 (Bloomberg) -- U.S. daily newspapers are losing readers at an accelerating rate, led by big-city publications such as the Miami Herald and Los Angeles Times.
Circulation at 770 daily newspapers declined 2.8 percent in the six months ended Sept. 30, the Newspaper Association of America said today in a statement, citing data from the Audit Bureau of Circulations. In the year-ago period, circulation fell by 2.6 percent.
The drop in readership adds to concerns about a decline in advertising sales as readers migrate to the Internet. At Tribune Co., which is evaluating takeover proposals, average paid circulation at the Los Angeles Times fell 8 percent in the six- month period while the Chicago Tribune declined by 1.7 percent.
``The financial performance of newspaper companies will continue to be pressured by an accelerating shift of advertising dollars,'' Michael Simonton, an analyst with Fitch Ratings, said today in a research note.
While few big-city newspapers produced gains, New York's warring tabloids both advanced with the New York Post surpassing the Daily News. Circulation at the Boston Globe, owned by New York Times Co., fell by 6.7 percent.
``The losses were greater at the metropolitan-size newspapers,'' Newspaper Association Chief Executive Officer John Sturm said on a conference call.
20-Year Slump
Newspapers had average daily circulation of 43.7 million in the six months ended Sept. 30, down from 45 million in the year- earlier period, when circulation tracked by the Audit Bureau declined by 2.6 percent.
The most recent slide extends a 20-year slump, from an average of 62.3 million papers sold each weekday in 1985. Circulation suffered consecutive declines over the last five years, Sturm said today.
Sunday circulation fell 3.4 percent to 47.6 million, the Vienna, Virginia-based newspaper association said, citing an analysis of Audit Bureau figures.
Shares of Tribune, the second-largest U.S. newspaper publisher, fell 2 cents to $33.45 at 4:01 p.m. in New York Stock Exchange composite trading. McLean, Virginia-based Gannett Co., the largest newspaper chain, dropped 29 cents to $60. New York- based New York Times declined 4 cents to $24.06.
Web Site Growth
Newspaper owners have bolstered their Web sites to attract online readers and advertisers, helping to make up for the loss of readers, the association said. It said newspaper Web sites serving the 100 largest markets reported an average 8 percent growth in their online audiences.
Almost 57 million Web users visited a newspaper site in the third quarter, up 24 percent from the year-ago period, the association said.
Tribune last week received competing initial takeover proposals from buyout firms Bain Capital LLC and Thomas H. Lee Partners LP, people familiar with the matter have said.
Average paid circulation Mondays through Fridays fell to 775,766 at the Los Angeles Times, according to Audit Bureau data. At the Chicago Tribune, the average weekday paid circulation declined to 576,132.
Long Island, New York-based Newsday, also owned by based Tribune, saw circulation drop 5 percent to 410,579.
Other Declines
At the New York Times, the average weekday circulation declined 3.5 percent to 1.09 million, while the Boston Globe's circulation fell to 386,415, the Audit Bureau said. Paid subscribers fell 3.3 percent to 656,297 at the Washington Post, owned by Washington Post Co.
New York's tabloids both showed gains, with News Corp.'s Post rising 5.1 percent to beat rival Daily News, owned by Boston Properties Inc. Chairman Mortimer Zuckerman. Daily News weekday circulation rose 1 percent to 693,382 from 686,274.
The Rupert Murdoch-controlled Post, rising to 704,011 from 669,663 in the year-ago period, advanced to the fifth-largest U.S. daily, based on circulation, after USA Today, the Wall Street Journal, the New York Times and the Los Angeles Times.
To contact the reporter on this story: Cecile Daurat in New York at cdaurat@@bloomberg.net.
