Publishers will look to online subscriptions and mobile platforms to offset major declines
Los Angeles, CA (PRWEB) January 28, 2013
The Newspaper Publishing industry faces 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. As a result, advertisers are spending less money on print and more on building their online presence, where they can create customizable campaigns and reach a wider audience. Although the recession worsened the diminishing readership and advertiser appeal of newspapers, declines in advertising revenue began 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. Over the five years to 2012, total industry revenue is expected to decline at an annualized rate of 8.1% to total $33.8 billion, including a 2.6% decline in 2012 as publishers continue to lose downstream markets to other media platforms.
The top players in the Newspaper Publishing industry are Gannett Co. Inc., Tribune Company and The New York Times Company. Over the past five years, industry concentration has declined, in part due to pressures imposed by the postrecessionary drop in advertising. Individual firms tend to be small, and large firms have become less prominent on the national level over the five years to 2012. While very large firms comprised about 2.2% of companies in 2007, only 1.4% of establishments are expected to have more than 500 employees in 2012. Big companies sold unprofitable ventures during the recession to keep positive profit margins. Nonetheless, concentration is very high in some geographic markets and in specific product market niches, such as financial newspapers.
Steep revenue declines and increasingly easy methods of data-sharing have caused many publishers to syndicate more of their content, where by national news is written by large publications and pasted into smaller newspapers. As a result, a number of companies have restructured, resulting in furloughs and significant layoffs. Staff numbers are expected to decrease at an average annual rate of 8.8% during the five years to 2012 to total 227,469 employees. Even with these cost-cutting measures, profit margins have been squeezed. 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 leave the industry all together because of the affluent market that newspapers now attract. Also, publishers must work to establish themselves on mobile platforms to increase accessibility in addition to creating effective paywall systems. For more information, visit IBISWorld’s Newspaper Publishing 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 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
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.