News syndicates will continue to transition from declining print media outlets toward digital platforms.
New York, NY (PRWEB) February 12, 2014
News media organizations and their audiences increasingly demand news content that is thorough, accurate, engaging and, most importantly, timely. According to IBISWorld Industry Analyst Nick Petrillo, “The News Syndicates industry has used the power of the internet to fulfill all of these needs through the myriad digital innovations within text, audio, video and graphics that have replaced traditional forms of printed newspapers and radio broadcasts.” While newspaper syndication has suffered from declining readership since the internet first popularized digital news in the mid-1990s, industry syndicators have survived by embracing online news distribution; in 2014, the News Syndicates industry grew a projected 4.2% to $2.6 billion.
News syndicates have experienced significant growth in the number of news services from websites and mobile applications. Consequently, industry enterprises grew at an estimated five-year annualized rate of 4.3% to total 319 in the five years to 2014. Revenue growth for the industry coincided with enterprise growth, increasing at an average rate of 3.9% per year in the five years to 2014. A slowdown in demand from downstream media industries, due mainly to the recession's adverse effect on media advertising spending, initially hindered industry revenue growth. Recent improvements in the overall American economy may help the industry's growth prospects. Demand from publishing industries will grow 3.1% in 2014, while corporate profit is estimated to climb over the year.
Concern still exists within the industry over declining print advertising expenditure. Print media has steadily declined as a major source of syndicated news in the five years to 2014, causing advertisers to pursue increasingly popular digital platforms for advertising. Since printed media platforms, such as newspapers, magazines and periodicals, are forced to offer lower rates to preserve advertisers, many cash-strapped print outlets are cutting back on the amount of purchases from industry syndicators. “Print advertising expenditure is expected to decline over the five years to 2019, further expediting print media's declining relevance within the industry,” says Petrillo. However, recessionary declines in news consumption may no longer be a primary concern for the industry going forward. Industry operators have experienced robust annual growth since 2011; industry revenue is projected to grow over the five years to 2019.
The top four industry firms, The Associated Press, News Corporation, Thompson Reuters and Bloomberg LP account for over half of total revenue generated by all establishments in this industry in 2014, indicating a medium level of market share concentration. While major news companies will continue to be a key source of licensed news content to media outlets, the growing presence of small-size online startups, news aggregators, blogging networks and user-generated content threatens to reduce the concentration of these major players going forward.
For more information, visit IBISWorld’s News Syndicates in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
The News Syndicates industry includes firms engaged in supplying information on current events like news reports, articles, photography and features to the news media. Independent writers and journalists, as well as photojournalists, are not included in this industry but are within the scope of IBISWorld report 71151 Performers & Creative Artists.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized 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 US 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.