As digital adoption accelerates, advertisers will shift their spending away from print material
New York, NY (PRWEB) March 17, 2015
The Newspaper Publishing industry, once the hallmark of the Canadian media sector, is reeling as a result of competition from digital platforms. Typically, industry revenue is dependent on consumers' per capita disposable income levels and print advertising expenditure, which, in turn, are determined by corporate profit. Although advertising expenditure has recovered during the five years to 2015, the growing popularity of online platforms has lowered the share of print advertising in favour of digital advertising. According to IBISWorld Industry Analyst Darryle Ulama, “a greater amount of readers are now opting to read news articles online, augmented by the rapid adoption of tablet and mobile devices.” Due to declining readership and lower advertising revenue streams, industry revenue is expected to decline during the five years to 2015.
With the advent of mobile devices and the rollout of next-generation broadband technology, demand for physical newspapers has steadily declined. Industry publishers have responded by strengthening their digital presence, which has grown considerably during the past five years. Nevertheless, growth in their digital segment has not been enough to offset severe declines in readership and print advertising. Furthermore, newspaper publishing remains an expensive endeavour, as operators must spend on print materials, distribution and relatively high labour costs. As a result, in 2015, average industry profit margins are expected to remain below their 2010 levels.
“Newspaper readership is expected to continue to slide during the five years to 2020,” says Ulama. As digital adoption accelerates, advertisers will increasingly shift their spending away from print material at the expense of industry operators. Publishers are expected to ramp up their digital presence by incorporating online subscriptions and bundles into readership statistics that advertisers use to judge a newspaper's market reach. In addition, major publishers are expected to remain relevant due to the strong market position of the industry's top players. However, during the five years to 2020, industry revenue is forecast to decline.
For more information, visit IBISWorld’s Newspaper Publishing in Canada industry report page.
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IBISWorld industry Report Key Topics
The Newspaper Publishing industry publishes and distributes print newspapers. Enterprises that only 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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