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For , total digital and direct marketing advertising revenues represented Our digital products are discussed in more detail below. In , we expanded our sponsorship of special events programs in our markets, designed for advertisers to connect with their customers, and expect this type of advertising to grow in Audience revenues were approximately Our subscription packages have helped diversify our revenues while continuing to drive growth in digital audience revenues.

In , For , We believe this independent advertising revenue stream positions us well for the future of our digital business and is evidence of its importance as a delivery channel for advertisers. During , total digital advertising revenues declined 3. Our newspaper websites and mobile apps, e-mail projects, mobile services and other electronic media enable us to engage our readers with real-time news and information that matters to them.

During , our newspaper websites attracted an average of approximately Increasing our number of unique visitors brings additional digital advertising revenue opportunities to our sales teams. In addition, our mobile traffic was up During , our websites offered classified digital advertising products provided by companies in which we hold a minority investment, including CareerBuilder. We continue to pursue additional new digital products and offerings. In , we expanded our advertising efforts on ad exchanges. Our real-time, programmatic buying and selling of digital advertising inventory — often targeting very specific audiences at very specific times — grew The LMC has created a private advertising exchange that includes the inventory of the entire collective digital advertising inventory for participating companies.

Video revenue increased During , more than 82 million video views were recorded across all digital platforms, including those on social media platforms and distribution partners. All of our markets now offer subscription packages for digital content.

The packages include a combined digital and print subscription and a digital-only subscription. Digital-only subscriptions grew to approximately 79, subscriptions, an increase of Maintaining Our Commitment to Public Service Journalism We believe that high-quality news content is the foundation of the mass reach necessary for the press to play its role in a democratic society. It is also the underpinning of our success in the marketplace. We are committed to developing best-in-class journalism and local content.

Every market is expected to improve annually as evidenced by peer awards, readership studies in its market, maintenance of readership both print and electronic and review of its content and quality. Most importantly, when we talk about our mission, from news meetings to board meetings, a constant theme is how to stay true to the public service role that we believe defines our work. During the transition that has reshaped the industry over the past decade, we have moved quickly to expand our digital reach and deliver the news in a changing technological landscape.

We have also made it a key plank in our evolution to maintain the deeper coverage that our communities need. When we launched a broad revamping of our approach to news in , one of the central concepts was how to enhance the depth of coverage along with the speed of our work. Every market added an element across all platforms that highlighted the deeper story. Our larger newspapers, from Sacramento to Charlotte to Miami, included a full section on in-depth coverage. We believe that our broad reach in each market is of primary importance in attracting advertising, which is our principal source of revenues.

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Daily newspaper paid circulation volumes for were down 4. The declines in daily circulation reflect the fragmentation of audiences faced by all media, including our own digital-only subscriptions, as available media outlets proliferate and readership trends change. Our Sunday circulation volumes were down 6. Our digital audience continued to grow in During , average monthly unique visitors to our digital sites grew 3.

As discussed above, we realigned and improved delivery of our content on all platforms, from printed newspapers to websites to mobile apps in nearly every market.

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Our websites offer mobile-friendly versions for smartphones, and our content is available on e-readers, tablets and other mobile devices. As noted earlier, in , our monthly mobile traffic was up We work hard to appeal to our mobile audience. Our news and information can follow readers throughout their day.

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To start their day, we reach our readers with the morning newspaper or they can check out our latest headlines and stories on their mobile phone. Our news websites, updated frequently throughout the day, are available to readers via their desktop computers at work and optimized for all of their different mobile devices.

We also reach audiences through our direct marketing products. In , we distributed approximately , Sunday Select packages per week, which are packages of preprinted advertisements generally delivered on Sunday to non-newspaper subscribers who have interest in circulars. To remain the leading local media company for the communities we serve and a must-buy for advertisers, we are focused on maintaining a broad reach of print and digital audiences in each of our markets.

We will continue to refine and strengthen our print platform, but our growth increasingly comes from our digital products and the beneficial impact those products have on the total audience we deliver for our advertisers. Our cost initiatives in were focused on reducing legacy costs from our traditional print business and we have realized significant savings from these efforts, primarily in production and distribution, including substantial savings in newsprint costs.

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In addition, our media companies made additional reductions in costs to help protect our profitability in a period of declining print advertising in The ongoing structural and cyclical changes in our markets demand that we respond by reengineering and restructuring our operations, as needed, to achieve an efficient and sustainable cost structure. Over the past several years, we have substantially lowered our cost structure through reducing our workforce, optimizing technology and maximizing printing, distribution and content efficiencies, all while maintaining profitability at each of our newspapers.

In , we continued regionalizing our audience distribution operations, certain human resource functions and certain administrative functions. We will continue to outsource, regionalize and consolidate legacy operations to achieve a more streamlined and efficient cost structure. In January , we named a new corporate director of production responsible for all production services across the Company.

The corporate production director continued to further regionalize production operations. These moves resulted in cost savings, while giving our operating executives in our markets the ability to focus more of their time on our growing digital and direct marketing media businesses. As of December 27, , 16 of our 29 of our newspapers are printed through outsourcing arrangements with nearby newspapers owned by us or other companies.

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In other cases we in-source the printing of nearby newspapers from other companies to maximize the use of our existing press capacity and generate additional revenues. We also believe using technology is an important component of our ability to continue to operate cost-effectively and to invest in our business for the future. Much of that technology is employed behind the scenes with a digital publishing system that can distribute news content to any number of platforms and new enterprise-wide systems to support audience and advertising in the digital environment.

Other Operational Information Each of our media companies is largely autonomous in its local advertising and editorial operations in order to meet most effectively the needs of the particular community it serves. However, during we reengineered our operations across our local media companies to strengthen areas driving performance in news, audience, advertising and digital growth.

We have two operating segments that are aggregated into a single reportable segment.

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  • Each operating segment consists primarily of a group of local media companies with similar economic characteristics, products, customers and distribution methods. Both operating segments report to the same segment manager. There was no change to our single reportable segment as a result of the changes to our operating segments.

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    Publishers of each of the media companies make the day-to-day decisions and report to the segment manager, who is responsible for implementing the operating and financial plans at each operation within the respective operating segment. The corporate managers, including executive officers, set the basic business, accounting, financial and reporting policies. These efforts are often coordinated through the vice president of operations and corporate personnel.

    Our business is somewhat seasonal, with peak revenues and profits generally occurring in the second and fourth quarters of each year, reflecting the spring holidays and the Thanksgiving and Christmas holidays, respectively. The first and third quarters, when holidays are not prevalent, are historically the slowest quarters for revenues and profits.

    Total monthly unique visitors for December according to Adobe Analytics. Other Operations We also have ownership interests and investments in unconsolidated companies and joint ventures. This includes ownership interests in digital assets, including During the second quarter of , Classified Ventures sold its Apartments.

    During the fourth quarter of , we sold our ownership interest in Classified Ventures, which operated the classified website Cars. Upon closing this transaction, we entered into a new, five-year affiliate agreement with Cars.

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    We own The Seattle Times Company owns The Seattle Times newspaper, weekly newspapers in the Puget Sound area and daily newspapers located in Walla Walla and Yakima, Washington, and all of their related websites and mobile applications. In addition, we own a Raw Materials During we consumed approximately 99, metric tons of newsprint for our operations compared to , metric tons in The decrease in tons consumed was primarily due to changes in our print products at numerous newspapers, as well as lower print advertising sales and print circulation volumes. We estimate that we will use approximately 86, metric tons of newsprint in , depending on the level of print advertising, circulation volumes and other business considerations.

    We currently obtain newsprint from Ponderay, as well as a number of other suppliers, primarily under long-term contracts. We purchased approximately 18, metric tons of newsprint from Ponderay in Our earnings are sensitive to changes in newsprint prices.