London, UK (PRWEB) June 15, 2012
Competition from online substitutes is wreaking havoc on the Newspaper Publishing industry. Although many publishers have been able to manage the damage 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 7.9% annually for the five years through 2012-13. According to IBISWorld industry analyst David Stephen, “falling demand for newsprint has been the end for many players, as many smaller newspapers 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.
In 2012-13, revenue will continue to fall, despite the boost from the London Olympics drawing demand for sport-specific print and print in general. The next five years are forecast to be similar to those previous. Revenue is expected to decline significantly through to 2017-18. The industry in 2017-18 will be smaller in terms of demand and the number of companies operating. Stephen 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 is considered to have a high level of market share concentration, with the top four players accounting for about 76% of revenue. A high proportion of the industry's major players are the printing units of newspaper publishers, although many derive a significant proportion of their revenue from contract printing operations. As newspaper circulations have fallen virtually across the board, many publishers that formerly printed their own papers have found it necessary to have their titles printed on a contract basis. Major companies include Harmsworth Printing, Trinity Mirror Printing, Newsprinters Limited and West Ferry Printers.
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 companies that print newspapers 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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