Digital Subscriptions Boost Newspaper Circulation Revenue 5%

Digital subscriptions to daily newspapers increased circulation revenue in 2012 for the first time in a decade, according to a report released on Monday by the Newspaper Association of America.

Circulation revenue increased 5 percent last year, to $10.4 billion, for the first gain since 2003, the association reported.

The increase demonstrated that news organizations have begun to adapt its business model to the Internet era in which more consumers are reading news content on tablets, desktops, and cellphones.

“America's newspaper media are transforming themselves,” said Caroline Little, the association’s president. “In virtually every community they serve, newspapers have the biggest newsrooms, the best-known brands and significant audience market share.

“Now, they are building on those to find new ways to serve audiences and local businesses,” Little said.

However, overall revenue declined 2 percent at newspapers last year, to $38.6 billion, compared with $39.5 billion in 2011, the association reported.