Publishers will look to online subscriptions and mobile platforms to offset major declines.
Los Angeles, CA (PRWEB) May 15, 2013
The Newspaper Publishing industry has continued to face escalating competition from other forms of media, particularly digital outlets. “Consumers favor the real-time reporting capabilities of online news, including social networking platforms like Twitter,” IBISWorld industry analyst Austen Sherman says. As a result, advertisers are spending less money on print and more on building an online presence where they can create customized campaigns and reach a wider audience.
Although the recession worsened the diminishing readership and advertiser appeal of newspapers, declines in advertising revenue started after 2004. “Even as the economy recovers, many advertisers and readers have not returned to print media; instead they have funneled their attention toward web-based outlets,” Sherman says. In the five years to 2013, total revenue for the Newspaper Publishing industry is expected to decline at an annualized rate of 6.8% to total $33.4 billion, including a 3.8% decline in 2013 as publishers continue to lose downstream markets to other media platforms.
Steep revenue declines and increasingly easy methods of data sharing have caused many publishers to syndicate more of their content, whereby national news is written by large publications and pasted into smaller newspapers. The top four players in this industry include Gannett Co. Inc., News Corporation, Tribune Company and The New York Times Company. Overall, this industry experiences a low level of market share concentration. In the five years to 2013, industry concentration has declined, in part due to pressures imposed by the postrecessionary drop in advertising. As a result, a number of companies have restructured, resulting in furloughs and significant layoffs. Staff numbers are expected to decrease during the five years to 2013. Even with these cost-cutting measures, profit margins tightened. However, profit is projected to increase slightly during the five years to 2018, as high corporate profit overall helps sustain the number of professional news subscriptions.
To slow the exodus of advertisers, newspaper publishers plan to incorporate online subscriptions and bundles into the readership statistics that advertisers use to judge a newspaper's demographic. In addition, advertisers will be reluctant to completely leave the industry because of the affluent market that newspapers now attract. Also, publishers will continue working to establish themselves on mobile platforms to increase accessibility and continue implementing effective paywall systems. Nevertheless, during the five years to 2018, IBISWorld forecasts an annualized revenue decline for the industry. For more information, visit IBISWorld’s Newspaper Publishing in the US industry report page.
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IBISWorld industry Report Key Topics
The Newspaper Publishing industry produces and distributes print newspapers. Companies that solely publish online news are excluded from this industry.
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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