METRO MARKET WATCH. There
appears to be a lull in the Metro wars today, so I thought I'd take a
closer look at what is likely to be the most enduring issue: the
matter of whether the New York Times Company's acquisition of a 49
percent share of Boston's Metro constitutes a violation of
antitrust laws.
Let me hasten to add that you won't
find out the answer to that question here. Rather, I want to show
that the Greater Boston newspaper market is a lot more complicated
than either the Globe or the Herald has portrayed it so
far.
According to reports, Herald
publisher Pat Purcell, who has taken his antitrust complaint to the
Justice Department, is defining the market as comprising three daily
papers: the Globe, the Herald, and the Metro.
Let's look at the latest figures from the Audit Bureau of
Circulations. Because the Metro publishes only on weekdays,
I'm only going to look at Monday-through-Friday numbers
- Globe:
451,471
- Herald:
240,759
- Metro: 180,000
(est.)
Under this formulation, the
Globe controls 52 percent of the market; the Herald, 28
percent; and the Metro, 20 percent. Purcell notes that
allowing the deal to move forward will give the Times Company 72
percent, which, he argues, violate guidelines governing
anti-competitive behavior.
In fact, though, Purcell could
paint the picture in broader strokes. If you consider the entire
Eastern Massachusetts market, the Times Company also owns the
Worcester Telegram & Gazette, whose weekday circulation is
103,113. Purcell's Community Newspaper subsidiary owns four daily
papers with a total weekday circulation of 50,608: the MetroWest
Daily News (Framingham), the Daily News Tribune (Waltham);
the Daily News Transcript (Dedham); and the Milford Daily
News. That gives Purcell's Herald Media a total daily circulation
of 291,367.
(Note: the ABC report for the
MetroWest Daily News appears to combine the other three
dailies, but that's not entirely clear. Nevertheless, the 291,367
figure matches up closely with a total daily circulation figure that
appears on page 12 of Herald Media's online media kit.
PDF
file here. So if I'm off,
it's not by much.)
Let's run the numbers again. Under
this formulation, the Times Company's weekday circulation (the
Globe, the T&G, and the Metro) would be
734,584, or 72 percent of the total daily newspaper market. Herald
Media would control 28 percent (the Herald plus the four
suburban dailies). With that exercise, the numbers look exactly the
same.
But wait. In statements filed with
ABC, Purcell says that the paid circulation of his weekly papers is
233,679. On the Herald
Media website, he claims a
weekly circulation of 517,242. The lower figure would appear to be
for his paid, community-based weeklies (there are 89, though some are
free); the higher number apparently includes all of his weekly
holdings, which also comprise 21 shoppers and specialty
publications.
How do Purcell's weekly papers
affect his antitrust argument? It's hard to say. To be sure, it's an
apples-and-oranges comparison, but when you factor in the weeklies as
part of Purcell's holdings, there's no question that the Times
Company - though still dominant - doesn't look quite as fearsome. The
weeklies are a big business for Purcell, with considerable economies
of scale in terms of shared expenses and the cross-selling of
advertising.
Now let's go a little deeper. In
their public statements about the Metro deal, Times Company
spokeswoman Catherine Mathis and Globe publisher Richard
Gilman have referred to Greater Boston as the most competitive
newspaper market in the country. Whether that's technically accurate
or not, it is certainly true that there are more options here than in
many parts of the country. Here, for instance, are a few ABC figures
for other daily newspaper groups in Eastern Massachusetts:
- Ottaway Newspapers: the
Standard-Times (New Bedford) and the Cape Cod Times;
total weekday circulation, 85,313.
- South of Boston Media Group:
the Patriot Ledger (Quincy) and the Enterprise
(Brockton); total weekday circulation, 92,228.
- Eagle-Tribune Publishing: the
Eagle-Tribune (Lawrence), the Salem News, the
Daily News (Newburyport), and the Gloucester Daily
Times; total weekday circulation, 105,524.
- MediaNews Group: the Sun
(Lowell) and the Sentinel & Enterprise (Fitchburg);
total weekday circulation, 67,151.
There are small, independently
owned dailies sprinkled across Eastern Massachusetts as well. One,
the Daily Evening Item (Lynn), whose circulation is 14,764, is
a content partner with Herald Media through the paper's affiliation
with Purcell's TownOnline.com. And some of the aforementioned
newspaper owners are formidable. Ottaway, for instance, is part of
the Dow Jones empire, which publishes the Wall Street Journal,
in some ways the New York Times' archnemesis. MediaNews is a
national chain headed by the colorful, notorious Dean Singleton. His
flagship paper, the Denver Post, is edited by former
Globe managing editor Greg Moore.
There's no question that the Times
Company is the dominant media organization in New England, never mind
Eastern Massachusetts. In addition to the Globe and the
T&G, it owns a piece of New England Sports Network through
its part-ownership of the Red Sox. The Globe is also a content
partner with New England Cable News. Adding the local Metro to
its portfolio will make the strong stronger.
Nevertheless, we shouldn't lose
sight of the fact that this is far more complex than the tale of
Boston's two dailies.