NEWSPAFERS Producers of newspapers are primarily engaged in publishing, or in publishing and printing, newspapers. Newspaper producing establishments perform various operations necessary for issuing newspapers and may or may not perform their own printing. year for which complete figures are available, there were 8,093 estabBy 1967, the latest lishments engaged in the production of newspapers; 2,030 of them employed 20 or more workers. Newspaper publishers are located primarily in the major population centers. In 1967, the East North Central, the West North Central, and the Middle Atlantic States had the greatest number of establishments. The leading producing areas and their value of shipments were the East North Central States, $1,292 million; the Middle Atlantic States, $1,262 million; and the Pacific States, $900 million. The value of shipments of newspapers, which approximates consumption, rose from $4.8 billion in 1964 to an estimated $6.1 billion in 1968 (table 1). Newspaper publishers derive their revenue from two major sources; advertising, which accounts for about three-fourths of the total, and subscription and sales (circulation), accounting for the remainder. U.S. exports and imports The value of U.S. exports of newspapers rose from $2.3 million in 1964 to $3.1 million in 1966, and then declined to $2.9 million in each of the years 1967 and 1968 (table 2). Canada was by far the principal market for U.S. newspapers, followed by Mexico and Venezuela. Countries of the West Indies and Central America were generally next in importance. In 1968 the Soviet Union was the principal recipient outside the Western Hemisphere and was a consistent market during the period under review. The value of U.S. imports rose steadily from $1.8 million in 1964 to $4.7 million in 1968. Virtually all U.S. imports of newspapers came from Canada during that period. August 1969 Table 1.--Newspapers: U.S. production, imports for consumption, and exports of domestic merchandise, 1964-68 2/ Values based on price per copy and not comparable with production values. Figures represent bulk shipping and do not include newspapers delivered through the mails to individual subscribers. 3/ Estimated. Source: Compiled from official statistics of the U.S. Department of Commerce, except as noted. Table 2.--Newspapers: U.S. exports of domestic merchandise, : 2,331 : 2,770 : 3,142 : 2,073 : 2,926 : : : Source: Compiled from official statistics of the U.S. Department of Commerce. August 1969 Note.--For the statutory description, see the Tariff Schedules of the United States Annotated (TSUSA-1969). U.S. trade position U.S. consumption of periodicals is supplied almost wholly by domestic production. Exports, which exceed imports many times, amount to about 3 percent of U.S. output. Description and uses The term "periodicals" as used in this summary embraces only paper covered or unbound publications issued regularly at stated periods, such as weekly, monthly, or quarterly, and bearing the date of issue. The periodicals considered here cover a wide variety of types. The bulk, however, fall into two general groups, namely general interest or consumer publications, and business and professional periodicals. Consumer publications, which serve by far the greatest segment of the total population, feature information covering such areas as general interest and entertainment, women's and home services, magazine and comic supplements for Sunday newspapers, and religious magazines. Business and professional periodicals, the more scientific and technical publications, are directed mainly to audiences interested in industry, engineering, technology and related fields, trade and commerce, and professional, institutional, and other similar services. Periodicals primarily derive their income from both circulation and advertising revenues. A particular periodical's ability to sell advertising depends upon its circulation and the size and kind of an audience it addresses. In many cases, foreign publications find a limited market because of language barriers. U.S. tariff treatment Periodicals are free of duty under item 270.63 of the TSUS. This provision became effective February 1, 1967, by virtue of Public Law 89-651 and Presidential Proclamation 3754, which implemented the United Nations Agreement on the Importation of Educational, Scientific, and Cultural Materials (commonly referred to as the Florence Agreement). The duty-free status for item 270.63 was bound as a concession granted under the General Agreement on Tariffs and Trade in the sixth (Kennedy) round of negotiations. Previously, periodicals had been dutiable or free of duty under certain provisions of the TSUS, as shown below: The value of apparent domestic consumption of periodicals increased from $2.1 billion in 1964 to an estimated $3.0 billion in 1968, a 43-percent increase (table 1). Circulation growth of consumer magazines is associated with population increases, whereas business publications grow in line with the general expansion of the U.S. economy. Advertising revenue for periodicals depends primarily on the level of total advertising expenditures. Population growth, more technical and diversified audiences, and an ever-increasing range of cultural and recreational interests have enabled such publications to continue to increase in circulation despite competition for the readers' time from television, massmarketed and inexpensive paperbound novels, and numerous other types of leisure activities. Improved quality and design, and special editions directed to selected population segments have also significantly contributed to the consumption growth of periodicals. U.S. producers Producers of periodicals operate establishments primarily engaged in publishing periodicals, or in preparing, publishing, and printing periodicals. These establishments carry on the various operations necessary for issuing periodicals, but may or may not perform their own printing. While the publication of periodicals is the primary function of these producers, many firms engage also in other types of May 1969 |