Community Newspaper Publishing Struggles Against Social Media; a New Industry Research Report from IBISWorld

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The community newspaper publishing industry is expected to face a decline in readership and advertising over the next five years as competition from digital media, especially social media, escalates. According to a new report from industry research firm IBISWorld, competing digital media will continue to siphon revenue away from the industry. Revenue is forecast to decline at a 3.5% average annualized rate to total $18.3 billion in 2016. Industry Analyst Agata Kaczanowska says that “consumers will continue adapting mobile technologies at a fast pace, dramatically increasing audience connectivity to online news during this time at the expense of traditional publishers. Revenue will decline by 1.1% in 2012.”

IBISWorld Market Research

IBISWorld Market Research

Companies that have the resources to rapidly adopt new technologies will fare best in this competitive landscape. We forecast an average annual decline of 4.9% in the number of firms to 2,251 by 2016

According to a new report from industry research firm IBISWorld, competing digital media will continue to siphon revenue away from the community newspaper publishing industry, which excludes online-only publications. Steep revenue declines during the recession occurred due to a slump in advertising spending and because a significant number of community newspapers exited the industry. Small, locally owned operations will continue to struggle to adapt to further technological change because of limited financial backing. Consequently, the market share of the top 10 community newspaper publishers is projected to increase significantly. The major industry player, with around 12% of the community newspaper publishing market is Gannett Co.

“Digital media will continue to shape the industry landscape through 2016. As technology is adapted across markets, more community papers will face significant competition from local news shared through social networks” added Kaczanowska. “Further, new platforms will provide more opportunities outside of newspapers for advertisers to reach targeted audiences. Companies that have the resources to rapidly adopt new technologies will fare best in this competitive landscape. We forecast an average annual decline of 4.9% in the number of firms to 2,251 by 2016. Moreover, as an increasing share of community newspapers struggle to retain ad revenue, the average industry profit will continue to fall to around 7.0% of revenue by 2016.”

However, it’s not all doom and gloom, “a generally slow recovery in consumer spending will provide an opportunity for community newspaper publishers to adapt to the new competitive environment by keeping labor costs and loan interest rates low. Moreover, readership of community newspapers remains steady mainly because local papers still provide the most authoritative voice on regional interests, such as sports or arts, which less tech-savvy people struggle to find anywhere else.”

For more information on IBISWorld’s report visit Community Newspaper Publishing

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IBISWorld Industry Market Research Reports Contain:

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets
Supply Chain
Products & Services
Major Markets

Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry

Major Companies

Operating Conditions
Capital Intensity

Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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