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
Los Angeles, California (PRWEB) October 14, 2011
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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