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News Last Updated: Dec 25, 2008 - 8:50:32 AM


Posted in: News
East Iowa Herald to suspend print operations
By Herald Staff Report
Dec 25, 2008 - 7:49:01 PM

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VICTOR - The East Iowa Herald newspaper today announces that it will suspend print operations after the Dec. 31, 2008, edition. Declining advertising revenue and a challenging outlook for the near term future are being blamed for the suspension.

With declining advertising and classifieds revenue, this is a difficult time for many newspapers across the country. Earlier this month, Gannett Company, Inc., the parent company of the Des Moines Register and Marengo Publishing Company, reduced payroll by 10 percent company-wide after reporting significant declines in revenue and falling circulation. Gannett’s reduction also included an announcement that two local papers, the Brooklyn Chronicle and the North English Record, would be shut down.

Also this month, the Tribune Company, parent of the Chicago Tribune and the Los Angeles Times, filed for bankruptcy protection.

Last week, another Gannett-owned paper, the Detroit Free Press, announced that it would reduce home delivery to three days per week, becoming the first major metropolitan newspaper to step back from daily delivery. According to company reports and the Audit Bureau of Circulation, weekday circulation at the Free Press has declined by 15 percent.

Additionally, both the Washington Post and the New York Times, two of the nation’s premier newspapers, have recently reported losses and the Times has reported a decline in circulation.

According to Mitch Traphagen, owner of the East Iowa Herald, subscriptions and circulation were not the problem for the newspaper.

“Subscriptions have continued to come in - even up to this week,” Traphagen said. “As local businesses cut back due to concerns over an economic recession, that left only limited advertising dollars available to competing newspapers. As a new business, we haven’t been able to build up the resources necessary to overcome the financial hurdles during this period of economic slowdown.”

Also according to Traphagen, a suspension is being announced rather than an outright shutdown with the hopes that conditions could change to allow the newspaper to resume operations in some form. A decision as to whether it is feasible for the Herald to continue as an online-only newspaper will be made in the coming weeks. The newspaper’s Website, www.eiherald.com, has received more than one million hits since it began in January. Iowa County Publishing, the business that the Herald operates under, will continue to provide video, photography, and Web development services.

“This last-minute announcement is due primarily to waiting until the last minute to be absolutely certain,” Traphagen said. “We wanted to be sure there were no other alternatives.

In addition to sincerely thanking our readers and advertisers, I would also like to apologize to them for not finding a way around the hurdles we face. If there was any other viable option, we would have pursued it.”

Those who have sent in subscriptions since November will have their payment checks returned. All other subscribers will receive refunds for the unused portion of their subscriptions over the coming months.

The East Iowa Herald Website, email addresses and telephone number will all remain open for the indefinite future.


What follows is a public comments section. This is not from the Herald staff - it comes from other people and contains their opinions and theirs alone. The East Iowa Herald does not control the material that follows. We do, however, reserve the right to remove objectionable material at our discretion. By that we mean that we will edit or delete any content that we deem is inappropriate. By posting your comments, you are stating that you agree to these terms.

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Comments

Mark H.
29 Dec 2008, 17:15
The industries Timothy references, and others often reference, are not analogous to the media industry. In each of these cases, the consumer is willing to pay for new product or services thus creating a transition path to a different paying business model with a true revenue stream. Timothy and other media consumers are not willing to transition to a “pay for service” model and want it all for FREE. If he could only obtain the type of news product he wants via a new “pay for service” model via the internet, the newspapers might have a chance. Unfortunately he isn’t and there isn’t enough advertising to support even a slimmed down newsroom needed to create the content he wants. The newspapers and media companies are partially to blame for this having put all their original content online for years with the assumption that advertising would follow. It hasn’t, and they continue to pursue this path. If all the media companies were to stop putting content for free online what would happen? Consumers would continue to desire the content and be forced to pay for it again (in print or online). However, because the industry continues to pursue this same old online model with free content, consumers will continue to demand it for free. And, if one major media company continues to do it then all are forced to follow. The only hope is for the media is to stop giving their content away for free. Free doesn’t pay the bills or payroll. Like musicians and authors of books, reports and publishers should be compensated for their original work. Maybe the industry should create an “itunes” type service and charge $.99 for each article read. Or maybe, the Timothy’s of the world should just pay for a subscription to the papers he wants.
Regular reader of others
28 Dec 2008, 11:33
You forgot to mention that MPC is also "shutting down" The Belle Plaine Union. Poor choice of words.
Timothy Kalyegira
26 Dec 2008, 11:37
I feel for the East Iowa Herald and many other newspapers that have to cut back or halt print operations altogether during this time of difficulty for the newspaper industry.

However, to give it perspective, this is what the manufacturers of the old LP vinyl records and later Compact Discs, film cameras, Polaroid Instant film cameras, the pager, DAT player and cassette, typewriters, and anything analog have been faced with for the last 20 years.

Ironically, just two basic binary numbers, 0 and 1, around which the digital world is formed, have brought us the point where the music, photography, newspaper, book publishing, and other industries are all going to be transformed or fall by the wayside.

However, there has to be an opportunity in this sea change. I live in Uganda in far-off East Africa where at best, say 20 or even 15 years ago, the only hope one had of reading the major American national newspapers like the New York Times and Washington Post was at the U.S. embassy or United States Information Service offices in our capital city, Kampala.

Today, not only do I get to read these two papers online, but I have just read the East Iowa Herald online, a paper that would ordinarily be too obscure for an African reader.

If I have somehow stumbled on the East Iowa Herald paper, with just days to go before it suspends its print edition, in that is the future.

Just as we migrated from film to digital camera, left behind the old LPs (that I personally have refused to give up), for CDs, in June 2006 mobile phones for the first time exceeded the number of fixed, landline phones on earth, then too the newspapers will go through their immediate and painful decline at the hands of the Internet.

But if you can reflect on the significance in this African 8,000 miles away reading, of all small-town, middle American papers, the East Iowa Herald, then there is every possibility that once you make the adjustment to the new online world, you will not only thrive once again, but will, by default, become international newspapers.
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