Newsday Named in Inquiry (inflated circulation numbers)

[UpInArms]

http://www.nytimes.com/2004/06/19/business/media/19paper.html

MELVILLE, N.Y., June 18 (AP) The district attorney of Nassau County said on Friday that his office was investigating the circulation figures of Newsday, which acknowledged this week that it had reported inflated figures.

The investigation is being conducted to determine if criminal charges are warranted.

The circulation figures are also being investigated by the Audit Bureau of Circulations, which routinely looks into such matters, and by the Securities and Exchange Commission.

...a bit more...

hmmm....

wasn't it earlier this week that the Chicago-Sun "inflated" numbers?

http://chicagobusiness.com/cgi-bin/news.pl?id=12846

The admission could also open the paper up to advertiser lawsuits or demands for free “make-good” ads. Newspaper advertising rates are frequently tied to circulation figures.

aren't ad revenues tied to circulation?

http://www.newsandtech.com/issues/2004/03-04/nt/03-04_yearend.htm

Newspapers post some positive Q4, year- end figures

Newspaper publishers continued to issue positive fourth-quarter and year-end numbers. A sampling:

...more...

[Warpy]

1. Right, they have to tell advertisers what their numbers are

when they charge for ads. Advertisers pay to have their ads seen by a certain number of people. Lying about that number is fraud.

That's what the problem is.