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Newspaper Publishing in Australia Industry Market Research Report Now Updated by IBISWorld
  • USA - English


News provided by

IBISWorld

Feb 11, 2014, 14:00 ET

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IBISWorld Market Research
IBISWorld Market Research

Industry operators are struggling to establish a viable online presence.

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Melbourne, Australia (PRWEB) February 12, 2014 -- Print newspapers are quickly becoming a thing of the past. Circulation levels are declining as readers continue to switch their attention to online news content. Lower circulation has driven down print sales revenue, despite cover price increases. This has had the compounding effect of diminishing advertising revenue as newspapers reach fewer consumers. IBISWorld industry analyst David Whytcross states “although newspaper publishers are competing online, advertising revenue is far lower as there is less available advertising space on their websites.” With the structural decline of the Newspaper Publishing industry continuing unabated over the past five years, industry revenue is estimated to have declined by 8.4% annualised over the five years through 2013-14 to be worth $4.3 billion.

Declining print revenue resulted in Fairfax announcing they will close major printing facilities in Melbourne and Sydney, while News Corporation has suffered some severe year-on-year losses in the newspaper publishing space. The internet is the major cause of the industry's decline, and the explosion in the popularity of smartphones and tablets over the past five years has exacerbated the situation. Consumers can access news on-the-go in addition to in their home or the workplace. According to Whycross, “As online traffic has increased, newspaper publishers have begun experiments in charging customers for online content through the use of paywalls.” However, operators must perform a balancing act, as paywalls can drive traffic away from their websites, reducing advertising revenue. While paywalls have had limited success, the industry's decline is expected to slow to a 4.1% revenue drop in 2013-14. Similar trends are expected over the next five years, but to a less drastic extent. While most operators have started gaining digital subscriptions, increased competition from foreign news sources entering Australia and providing free online-only content will drive revenue away from the Newspaper Publishing industry. New competitors include the UK-based Daily Mail and Guardian. Experiments in new paywall models are expected, as the use of metered or freemium models by Fairfax and News Corporation has met limited success. Improving business confidence is projected to generate greater advertising revenue, particularly in the online space.

The Newspaper Publishing industry has a high concentration level, with the major players – News Corporation, Fairfax and Seven West Media – accounting for a substantial portion of industry revenue. The three largest companies have also made acquisitions to become dominant players within suburban and rural newspapers, increasing the market share concentration of the industry over the past five years. For more information, visit IBISWorld’s Newspaper Publishing report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

This industry consists of companies that publish newspapers. Companies are included in the industry if their main source of income is the sale of print newspapers and the advertising space within them. The industry excludes newspapers that only publish online, but includes online revenue and operations for publishers that print physical newspapers.

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

About IBISWorld Inc.
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 every Australian industry. 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

Gavin Smith, IBISWorld, +61 396553838, [email protected]

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