NYT and WSJ engage in war of words

Two major American newspapers have engaged in war of words, with The New York Times (NYT) alleging that its rival The Wall Street Journal (WSJ) has been “wrongly maintaining circulation by offering heavy discount” to its subscribers.

NYT reported yesterday that WSJ has been able to maintain its paid circulation only because it is offering heavy discount to its subscribers.

Shortly after NYT hit the stands, WSJ accused it of providing its readers with “misleading information” about the Journal's circulation strategy.

NYT has “wrongly reported” that WSJ’s circulation growth is due to heavy discounting and that the use of this tactic had increased since its takeover by media mogul Rupert Murdoch’s News Corporation, said WSJ.

“Like most subscription newspapers, WSJ uses discounted offers to attract new subscribers. However, in 2008, the Journal moved away from deep discounting and raised the introductory offer and news stand pricing by nearly 40 per cent. Even with higher prices across the board, individually paid circulation continues to grow in an industry that is largely shrinking,” WSJ responded.

Print circulation revenue, it said, for the most recent quarter was up by nearly 9 per cent over the previous year.

“NYT may choose to speculate and offer its opinions in its business coverage and there were many erroneous assumptions and speculations made in the story. However, regarding our circulation strategy and recent strong success, NYT simply got it wrong today,” said Paul Bascobert, chief marketing officer for Dow Jones and Company and WSJ.