From the publisher
Published 8:00 am Saturday, October 7, 2023
- An employee of Northwest Crane Company assists in loading a segment of the dismantled 130-foot tower crane at Grande Ronde Hospital on Thursday, Sept. 28, 2023. The crane, installed in 2022 for the hospital's expansion project, had become a familiar sight in La Grande.
Newspapers haven’t been immune to the rising costs of doing business these days.
Outside of payroll, our largest expenditures are newsprint, ink and postage. And inflation has taken the normal increases we expect to see each year and thrown them into the stratosphere. Last year, Postmaster General Louis DeJoy announced that the mailing industry should be prepared for “ongoing and uncomfortable rate hikes.” He wasn’t kidding. In the last year alone, postage expenses for delivering The Observer to your doorstep have increased nearly 8.5% — and the expectation is that we’ll continue to see that same increase — and likely higher — each year moving forward.
Ouch.
On top of that, we also experienced a 44% increase in newsprint expense over the last year, due in part to the dramatic rise in the closure of paper mills and mills that have converted their production to packing materials for the booming e-commerce sector.
Double ouch.
The newsprint hikes are beyond “uncomfortable.” They’re painful.
Beginning the week of Oct. 30, The Observer — as well as the Baker City Herald and East Oregonian — will be reducing our print frequency to two days a week and eliminating our Thursday edition. Along with that reduction in print frequency, the print and delivery subscription price will also be reduced accordingly, to $17 every four weeks (reflecting a $3 reduction in print production and mail delivery cost) or just $11 every four weeks if you opt for our digital-only subscription.
We’ve seen clear shifts in print demand over the last few years. Declining demand in print doesn’t equate to a decline in readership and subscriptions. It’s simply a change in the way people are choosing to consume our content. Digital engagement is growing by the month, whether it’s on our website, our social media channels or subscribers migrating to a digital subscription. The change in the frequency of The Observer also doesn’t equate to less news, but it does mean less newsprint, ink and postage expense to our bottom line. Our objective and mission is to protect the sustainability of local journalism in our communities. But to do that, we have to take a hard look at where the bulk of our operating expenses are coming from and make some sound decisions.
Like most companies, payroll is our largest expense, but not an expense we’re looking to play with. Our employees and what they contribute are too valuable an asset. They are the heart and soul of our operation. This change in print frequency will not impact the size or the ambition of our newsrooms or their news-gathering efforts. It will have quite the opposite effect — allowing the time formerly spent producing the physical Thursday edition to be refocused on providing compelling stories on the topics that matter most to you. Reporters are excited to dive into expanded enterprise and investigative reporting on the topics that impact the lives of rural Northeast Oregonians, including education, government and politics, natural resources, social services, agriculture and housing. These in-depth stories will be featured in enhanced regionalized Saturday editions.
If there was anything beneficial to come out of the pandemic for our business, it was the community’s thirst for vetted, accurate and timely reporting to keep them abreast of the rapid changes in the situation here at home. We saw subscription numbers increasing weekly — but most of those were digital as the pandemic shifted reader habits more quickly.
More and more often, new subscribers are looking to consume their local news wherever they are, whenever they’d like as opposed to waiting for their mail carrier to deliver it to their mailbox. And we know that during winter months or times of inclement weather, on-time mail delivery isn’t a guarantee.
We’ve pushed hard over the last five years to encourage print subscribers to register their digital access to The Observer, ensuring that if weather or other situations arise making mail delivery impossible, readers could still log on to our website and get their news there, including via our e-edition digital replica — along with other digital-only and special content (more crossword puzzles, anyone?) not offered in our print product due to space constraints.
It also allows you access to immediate, up-to-date breaking news stories, possibly days in advance of your next printed newspaper, as well as unlimited access behind our website paywall.
The truth of it is we’re publishing fresh stories seven days a week online — even if the printed product will be delivered only two days per week. We’re also preparing to launch our new mobile app, making local news on the go easier and more accessible. So, even if you prefer to receive the printed product in your mailbox rather than the digital product in your inbox, I’d still encourage you to register your complimentary online access by calling 800-781-3214. There’s a lot you’ve been missing.
The work we do is important. I believe if you’re reading this, you agree. The Observer and the other newspapers in our company continue to invest resources and energy into journalism that supports our mission to strengthen and empower the communities and the readers we serve. Our reduction in print frequency doesn’t change that.
For some media companies, reducing print days is about cutting costs for immediate financial survival. We’re fortunate that we’re able to make a planned, proactive decision about downscaling print as a step toward a long-term digital future that’s not only sustainable, but in direct response to the demands of our growing digital subscriber base. We remain committed to providing award-winning and impactful local reporting for our communities wherever our readers are.
Thanks to the support of readers like you, local journalism is alive and well and thriving in our communities — and while the landscape of our business continues to change, the impact of our work remains crucial. And so does your support and your subscription.
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If you haven’t already, take a moment to register your subscription for digital access of The Observer. Call 800-781-3214 to talk to one of our customer service staff who will be happy to walk you through the process. It’s easy, takes just a few moments to get set up and allows you to take advantage of our e-edition, app and website delivery along with your print subscription.
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Finally, let me take this opportunity to once again thank The Observer’s subscribers: We simply would be unable to do this vital work without your support.
Karrine Brogoitti is the publisher of The Observer.