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Analysis: San Jose Mercury News

1253 words - 6 pages

The following report provides an overview of San Jose Mercury News which includes history, current economic and financial conditions, performance, competition, key issues and a firm analysis.
Type of Industry
San Jose Mercury News is a firm in fragmented industry with more than 20 years in ranking among the top five prints in the United States in total full run advertising linage.
Historical Aspects
San Jose Mercury News, located in Silicon Valley of California, was merged in 1983 from San Jose Mercury - founded in 1851 and San Jose News - founded in 1883. In 2006, Knight Ridder sold San Jose Mercury News to McClatchy Company due to significant loss of revenue and force of selling from stakeholders. In the same year, it quickly was sold out again and became one of the sixty daily newspapers under operations of MediaNews Group Inc.
Economic Status
Even though San Jose Mercury News is one of the forefronts who early adapted to digital revolution into its print, it still has been facing threat of declining revenues. Due to the economic, technological, and social factors, firm’s revenues have decreased significantly from print and classified advertising. Jobs advertising revenue, the most profit contributed to firm’s performance, dropped down from $118 million in 2000 to $18 million. (Shapiro, 2011)
Purpose of Report
This report provides a complete and thorough overview and analysis of San Jose Mercury News in the newspaper industry along with findings and final recommendations.
Financial Health
The San Jose Mercury News is trying to keep up. Over the years, revenues have declined from $341 million in 2000 to an estimated $235 million in 2006. In 2011, most of the profits still come from prints and 2.7 million readers weekly. The paper charge $4.45 a month for web access (SHAPIRO, 2011). With increases in consolidation, it is expected to increase margins.
Performance Comparison
The paper's local coverage and circulation are concentrated in the entire Bay Area, plus Santa Cruz County and excluding San Francisco and Sonoma County. For the six-month period ending March 31, 2013, Alliance for Audited Media ranks the San Jose Mercury News No. 5 in the top 25 newspapers by daily circulation (See Appendix). The newspaper’s high circulation is due consolidation. The Mercury News encompasses all other Bay Area newspapers owned by Media News Group, including the Oakland Tribune, Contra Costa Times, Marin Independent Journal, San Mateo County Times, Santa Cruz Sentinel, and 10 other local daily newspapers, branded as "an edition of the San Jose Mercury News”. Smaller dailies will be absorbed into larger papers and eventually disappear in the face of consolidation.
Competitors and Competitive Threats
San Jose Mercury Newspaper competes with local newspapers. One of his major competitors is Los Angeles Times who is a part of Tribune Company (See Appendix). Media News Group’s competitors are Hearst Newspapers, Star...

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