Newspaper operators are cutting costs in their legacy print operations
Melbourne, Australia (PRWEB) July 12, 2012
Printed newspapers are under attack. Printed circulation and readership are declining as readers migrate to alternative sources of news, and this is also lowering the effectiveness of print advertising. According to IBISWorld industry analyst Nigel Fitzpatrick, “advertising is also migrating from printed newspapers to the internet and other media”. The shift of newspaper readers to online news is a challenge for newspaper operators as they face new competitors, and online revenue and profits are low compared with print revenue and profit. Newspaper operators are fighting back by cutting costs in their legacy print operations, sharing resources across print and online editorial, offering more attractive content and advertising propositions, and charging more for online content and advertising. The Newspaper Printing or Publishing industry is forecast to generate revenue of about $6.54 billion in 2012-13, down 4.0% compared with 2011-12. The industry is domestically oriented, with insignificant levels of imports and exports. However, subscription and free access to overseas titles can represent a competitive threat to the readership of some Australian titles, particularly those offering international, news and business coverage.
Industry revenue is expected to decrease at an average rate of 6.1% per annum in the five years through 2012-13. Printed newspapers will suffer a decline in their share of economy-wide advertising spending, although this decline will be partly offset by newspapers' growing online advertising revenue. “Over the next five years, industry revenue is forecast to decrease further”, says Fitzpatrick. The industry will benefit from a growing Australian economy, which will tend to promote advertising spending. However, there will be intense competition both from within the industry and from other media. Print circulation and print advertising revenue are expected to decline.
The Newspaper Printing or Publishing industry is estimated to have a high level of market share concentration. However, concentration can be much higher in specific geographical markets and specific market niches. Also, concentration is increasing in the industry. The top four players in the industry are News Ltd, Fairfax Media, Seven West Media and APN News & Media.
For more information, visit IBISWorld’s Newspaper Printing or Publishing report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry consists of companies that print or publish newspapers. Companies are included in the industry if their main source of income is the sale of advertising space in their own newspapers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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