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Thursday, May 13, 2004
The focus group was also high on "Rolled Up, It Smacks the Dog Real Good"
The "center right" New York Sun which lost $12.8 million last year thinks it's about to turn the corner...in 2008:
It also has to upgrade its audience. So far, the memo confesses, The Sun has found "potentially negative" readership data: Its readership appears to be older and poorer than anticipated.
But the paper is eagerly adaptable. Already, in two years, the memo recounts, the paper has changed its slogan from "New York on Page One" to "Expect a Different Point of View."
"More recently we have been testing the slogan ‘Illuminate Your World’ to signal that the newspaper is hospitable to a broader audience," the memo adds.
The memo also signals The Sun’s intentions to change its underlying income structure. According to the cash-flow statement, the paper is currently circulation-driven rather than ad-driven, with last year’s income divided roughly 58-42 between circulation revenue and advertising revenue.
The Sun’s financial projections call for that difference to narrow to 54-46 in 2004 and then to reverse—to 57-43 in favor of advertising—in 2005.
That doesn’t mean, however, that circulation will be stagnant. The memo predicts that circulation revenues will grow four times over by 2005. Advertising will come out ahead by the simple trick of growing from $794,000 to $5.9 million in those same two years—more than a sevenfold increase.
Such explosive growth will launch a rocket ride: The table projects revenue gains between $6 million and $7 million for each of the next three years. It culminates in 2008, when revenue tops $30 million. Then in 2008, for the first time, The Sun expects to turn a profit: $1.316 million, to be exact.
Sure.
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