Los Angeles, CA (PRWEB) June 16, 2012
Printed newspapers are coming under attack across a number of fronts. Weak economic conditions have affected circulation and advertising revenue in many developed countries, newspaper circulation and readership are competing with alternative sources of news and information, and advertising is migrating from printed newspapers to online and other media. “Newspaper operators are fighting back by offering more attractive content (both in print and online) and more appealing classified advertising websites,” said IBISWorld industry analyst Nigel Fitzpatrick. However, newspapers face a significant problem: online profit margins tend to be lower than print margins. The Global Newspaper Publishing industry is forecast to generate revenue of $170.5 billion in 2012, down 1.4% compared with 2011. The main type of printed newspaper is the paid-for daily newspaper, and there are about 12,500 of these newspapers published around the world. Every day, more than 500 million people around the world buy a newspaper, and about two billion people read a paid-for newspaper. Newspapers account for about 21.0% of the global advertising market.
Industry revenue is expected to decrease at an annualized 3.5% in the five years through 2012. Growth in newspaper circulation revenue in developing countries has been offset by a decrease in newspaper circulation revenue in the developed world. Newspapers in most parts of the world are encountering strong competition for the advertising dollar from other media sources, including the internet, direct mail and TV. According to Fitzpatrick, newspaper revenue has also been negatively affected by relatively weak economic conditions in many developed countries, which has influenced declines in advertising and circulation revenue. Industry revenue is expected to increase through 2017, growing at a marginal annualized rate over the next five years as the industry continues to suffer market share losses to competing media.
The top four Global Newspaper Publishing industry players account for about 9.6% of industry revenue. These companies are headquartered in the United States and Japan. Concentration can, however, be very high in specific countries and geographic markets within countries (in particular cities). For example, Japanese newspaper companies hold large market shares within their geographic markets. Shenzhen Press Group in Southern China accounts for 90.0% of the local market share of print media (Guangdong News, May 18, 2007). In Australia, News Corporation controls about 70.0% of the national and metropolitan newspaper market, with Fairfax Media accounting for about 23.0% and the remaining player in this market (West Australian Newspapers) accounting for the rest. For more information, visit IBISWorld’s Global Newspaper Publishing industry report page.
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IBISWorld industry Report Key Topics
This Global Newspaper Publishing industry comprises enterprises that carry out operations necessary for producing and distributing newspapers, including gathering news; writing news columns, feature stories, and editorials; printing newspapers; and selling and preparing advertisements. These enterprises may publish newspapers in print or electronic form.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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