Manufacturing Consent_ The Political Economy of the Mass Media - Edward S. Herman [37]
Before advertising became prominent, the price of a newspaper had to cover the costs of doing business. With the growth of advertising, papers that attracted ads could afford a copy price well below production costs. This put papers lacking in advertising at a serious disadvantage: their prices would tend to be higher, curtailing sales, and they would have less surplus to invest in improving the salability of the paper (features, attractive format, promotion, etc.). For this reason, an advertising-based system will tend to drive out of existence or into marginality the media companies and types that depend on revenue from sales alone. With advertising, the free market does not yield a neutral system in which final buyer choice decides. The advertisers’ choices influence media prosperity and survival.43 The ad-based media receive an advertising subsidy that gives them a price-marketing-quality edge, which allows them to encroach on and further weaken their ad-free (or ad-disadvantaged) rivals.44 Even if ad-based media cater to an affluent (“upscale”) audience, they easily pick up a large part of the “down-scale” audience, and their rivals lose market share and are eventually driven out or marginalized.
In fact, advertising has played a potent role in increasing concentration even among rivals that focus with equal energy on seeking advertising revenue. A market share and advertising edge on the part of one paper or television station will give it additional revenue to compete more effectively—promote more aggressively, buy more salable features and programs—and the disadvantaged rival must add expenses it cannot afford to try to stem the cumulative process of dwindling market (and revenue) share. The crunch is often fatal, and it helps explain the death of many large-circulation papers and magazines and the attrition in the number of newspapers.45
From the time of the introduction of press advertising, therefore, working-class and radical papers have been at a serious disadvantage. Their readers have tended to be of modest means, a factor that has always affected advertiser interest. One advertising executive stated in 1856 that some journals are poor vehicles because “their readers are not purchasers, and any money thrown upon them is so much thrown away.”46 The same force took a heavy toll of the post-World War II social-democratic press in Great Britain, with the Daily Herald, News Chronicle, and Sunday Citizen failing or absorbed into establishment systems between 1960 and 1967, despite a collective average daily readership of 9.3 million. As James Curran points out, with 4.7 million readers in its last year, “the Daily Herald actually had almost double the readership of The Times, the Financial Times and the Guardian combined.” What is more, surveys showed that its readers “thought more highly of their paper than the regular readers of any other popular newspaper,” and “they also read more in their paper than the readers of other popular papers despite being overwhelmingly working class . . .”47 The death of the Herald, as well as of the News Chronicle and Sunday Citizen, was in large measure a result of progressive strangulation by lack of advertising support. The Herald, with 8.1 percent of national daily circulation, got 3.5 percent of net advertising revenue; the Sunday Citizen got one-tenth of the net advertising revenue of the Sunday Times and one-seventh that of the Observer (on a per-thousand-copies basis). Curran argues persuasively that the loss of these three papers was an important contribution to the declining fortunes of the Labor party, in the case of the Herald specifically removing