Newspaper Publishing in the UK Industry Market Research Report Now Updated by IBISWorld

The traditional revenue model for operators in the UK Newspaper Publishing industry has been torn up in the last five years due to falling demand for print media and decreases in advertising revenue which has led to industry revenue declining at a compound annual rate of 7.0% over the five years through 2012-13. Changing consumer preferences are the key driving factor behind the decline in circulation numbers, as print media has lost out to free online alternatives and information via social media and this will lead to further declines in revenue over the coming five years to 2017-18.

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IBISWorld industry market research
An invasion of online alternatives is affecting industry revenue and profit

London, United Kingdom (PRWEB) February 08, 2013

The traditional revenue model for operators in the UK Newspaper Publishing industry has been torn up in the last five years due to falling demand for print media and decreases in advertising revenue. According to IBISWorld industry analyst Andrew Johnson, “the transition to digital has been far from seamless and while growth rates of digital revenue have been impressive, the digital business is still in its infancy”. The industry includes businesses that produce articles for publishing in print edition or electronic form, including on the internet. Industry revenue is expected to decline at a compound annual rate of 7.0% over the five years through 2012-13. The industry is expected to generate revenue of £4.96 billion in 2012-13, a 5.7% decline on the year prior.
The two traditional revenue channels for UK newspaper publishers are sales of print media and advertising, both of which have contracted in the five years through 2012-13, contributing to the declining nature of the industry. Advertisers' budgets have shrunk as business profit has been hit by the recession, but advertising funds have also been diverted online to match the rising demand for online media. Johnson adds, “changing consumer preferences are the key driving factor behind the decline in circulation numbers, as print media has lost out to free online alternatives and information via social media”. Between 2007 and 2012, national circulation of the main daily papers has fallen by over 25% with circulation of national Sunday paapers falling by over 30% in the same period. More recently, the phone hacking scandal that instigated the Leveson inquiry has diminished trust and therefore demand in the major papers.
Dwindling profit has forced newspapers to adopt various defence mechanisms to protect their bottom line. As publishers optimise online advertising platforms and while some adopt paywalls, others are expanding into other countries in efforts to capture a new market in an information-centric society. The Leveson inquiry is expected to have a limited impact on the performance of the industry, but there is a concern that resulting regulation will be unbalanced between news in print and on the internet. Revenue is expected to continue to decline over the coming five years to 2017-18.
The UK Newspaper Publishing industry has a medium level of market share concentration, as the top four players in the industry will account for an estimated 54.1% of industry revenue in 2012-13. Major companies include News Corporation, Trinity Mirror, Daily Mail and General Trust, Johnston Press and Telegraph Media Group.
For more information on the Newspaper Publishing 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

The Newspaper Publishing industry includes businesses that produce articles for publishing in print edition or electronic form, including on the internet. The industry also includes advertising newspapers, but does not include news agency activities.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.


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    IBISWorld
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