Learning Curve at Washington Post

As circulation numbers for newspapers continue to slide, so too do the stocks of major newspaper publishing companies.

Does Washington Post (WPO Quote), which will report its third-quarter results on Friday, still fit in that newspaper category?

Shares of Washington Post, which are heavily owned by the Graham family, are down about 2.6% for 2006 so far.

And they're down 1.8% just in the last week after the Newspaper Association of America reported Monday that the company's namesake paper's circulation reach had declined 3.3% to 656,297 subscribers for the six-month period ending in September.

Average paid circulation for the industry fell 2.8% on weekdays and 3.4% on Sundays over that period.

With consumers migrating to the Internet for their information needs, and advertisers chasing behind them, the future for a number of major old-media conglomerates is looking bleak.

So far, that translates into bad returns for investors and increased attention from leveraged buyout mavens.

Washington Post, however, is careful to separate itself from the pack.

Despite its brand, which comes from the masthead of its venerable flagship newspaper, the company describes itself on its Web site as "a diversified media and education company."

To be sure, other publishing companies are seeking to diversify beyond newspapers, but Washington Post's revenue contributions from its education segment make up a significant percentage of its overall business.