London, UK (PRWEB) October 30, 2012
Competition from online substitutes is wreaking havoc on the Newspaper Publishing industry. According to IBISWorld industry analyst Lewis Sutton, “while many publishers have been able to respond to the competition by building their own online brand and thus attracting advertising revenue from their websites, this is not possible for businesses that derive income from printing physical copies of newspapers”. As a result, revenue declines in the Newspaper Printing industry have been savage and are expected to average 10.2% annually for the five years through 2012-13 to reach a current year total of £392.4 million, including a current year decline of 10.3%.
The deterioration of demand has forced many companies to exit the industry, as many smaller newspapers publishers have mothballed their printing facilities and opted to outsource this function to larger contract printers. The remaining players in the industry have survived due to the size and resilience of the titles they print, and increasing demand for contract printing services. The industry is now consolidating around these dominant firms.
The outlook for the next five years is equally as bleak as the past five years. Revenue is expected to continue to decline through to 2017-18. Sutton adds, “those who will survive and even flourish in this diminished market will be operations that are not tied to the fate of any particular publication and offer contract printing services that are flexible to the needs (and changing fortunes) of clients”. Already, many publisher-owned printing presses are earning significant additional revenue streams from contract printing and this trend is likely to continue.
The Newspaper Printing industry has an extremely high market share concentration, with the top four companies accounting for approximately 91.4% of the market. Most publishing companies own printing subsidiaries, resulting in the select group of companies dominating the publishing industry also dominate the printing industry. Major companies include Harmsworth Printing, Trinity Mirror Printing, Newsprinters and Northern & Shell.
For more information on the Newspaper Printing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry comprises of companies that print newspapers, or other periodicals appearing at least four times a week, on their own behalf or on a contract basis.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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