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Newspaper Industry

MCH 101

Tang Li Huan

on 22 June 2013

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Transcript of Newspaper Industry

Market Size & Share
Challenges the Newspaper Industry Face
Trends of Prospects of Newspapers
Word of Mouth
Town criers / Messengers
Victories / Defeats / Birth / Death
Acta Diurna
59 B.C. ~ A.D. 222
202 B.C. ~ A.D. 221
Print News
Johannes Gutenberg
Movable Printing Press
1500s -Avisi / Gazette :
Handwritten weekly news sheets on wars & politics.
Venice, Read as far as London
1) Past century: Newspapers have played a dominant role in public communication
Now struggling to adapt because of the existence of the Internet
Unwillingness to change early (Were at a dominant position)
Assumed dominance even when technology was improving
1833 - The New York Sun sold for one cent - beginning of penny press
1690 - 1st American newspaper
1725 - 1st newspaper from New York
1734 - Printer John Peter Zenger's trial: Start of press freedom.
~Weekly openly criticizes New York Governor William Cosby.
~Real writers' names never used, Cosby jails only real name - Zenger.
~ Non-New York lawyer Andrew Hamilton defended Zenger:
"...it is a right, which all free men claim, that they are entitled to complain when they are hurt. They have a right publicly to remonstrate against the abuses of power in the strongest terms."
Freedom of speech : the First Amendment of US Constitution after Independence in 1776.
1851 - Henry Raymond & George Jones publish "The New-York Daily Times"
1857 - Name change
1938 - Urges from conquering Europe.
Wrote: "The U.S. would and should be prepared to defend a way of life which is our way of life and the only way of life worth living.”.
1942 - Introduces
1945 - Journalism milestone:
Faxed following morning's edition to a U.N. conference.
fight off
1996 - Internet edition launches.
2008 - 2012 - Poor economy: Staff cuts (Buyouts / layoffs)
2012 - App surge: iOS, Android, Blackberry 10, Win 8, Kindle, HTML 5
2) Internet outlets has taken away a large portion of the newspapers main source of income
most people are going online or using wireless devices to get news.
dissemination of information

3) Significant loss of advertising revenue
advertising online is cheaper
more efficient to advertise online
4) Government secrecy/corruption
Only chosen information that benefit the government are shared on the newspapers

5) Newspapers are cutting costs, quality decreasing
Resulting in fewer readers who are getting less news from not such good papers.
6) Newspapers have well-developed fact checking and editorial structures, many online media do not have
Yet readers often do not understand the difference
Assumes two sources of different credibility as being equally credible.
7) The issue of selecting the type of information to give to readers
Readers these days more interested in gossips instead of news that can help bring changes to the world
8) Digital media has better features than newspaper : ubiquity, speed, permanence, searchability, the ability to update, the ability to remix, targeting, Interaction
Revenue of newspapers in America
Newspaper Circulation in the US
Among 5 of the newspapers in America
Revenue of English newspapers in West Malaysia
Local Newspapers
By the Audit Bureau of Circulations
From: www.profitprospectives.com
Newspaper Circulation in the US
[Newspaper Association of America]
Overall, total revenue for U.S. newspapers declined by 2% in 2012

Newspaper media industry: Year 2012, $38.6 billion compared with $39.5 billion in revenue in 2011.
Total revenue
Readership (American Newspapers)

Online Journalism

Digital Subscribers
Possible Reasons for Decline of Print Newspapers

Cable TV
Advertising revenue in America
Rise in online newspaper circulation
The New York Times Company announced that paid digital subscribers to The Times and The International Herald Tribune had grown to 676,000 by the end of March of 2013.

Digital circulation for The Wall Street Journal grew by 62.6 percent, to 898,012 in March 2013 from 552,288 in March 2012.
Number of digital subscribers
Circulation revenue: Overall growth of 5%.
Digital-only circulation revenue grew 275%; print-only circulation revenue declined 14%.
Traditional print newspaper advertising fell 9%(2011-2012). 2012 it makes up 46% of total revenue.
Digital advertising increased 5%, now makes up 11%
Pure-play digital advertising (digital only) increased 20%
International Herald Tribune
The New York Times
The Boston Globe
Telegram & Gazette
Other regional media groups (e.g. The Courier)
T Magazine
Internet Websites
The New York Times News Service Syndicate
Radio stations (e.g. WQEW Radio 1560am)
TV stations (e.g. KFOR-TV Channel 4)
Fenway Sports Group
Meet the brains behind the organization
Arthur O Sulzberg
(Chairperson & Publisher)
Michael Gordon
(Vice Chairperson)
Mark Thompson
(President & CEO)
Revenue Building Strategies
Gated and Tiered Content Offerings
“All Digital Access”
Product Diversification
International marketing, pricing and payment practices
Games, e-Commerce, video capabilities, business conference
Robust SaaS Publishing Platform
Leveraging Deep Audience Data
Deep data
Sales of Assets
Class A
Class B
ASTON (7.89%)
T. Rowe Price Equity Income (4.56%)
Vanguard Small Cap Index (1.33%)
Vanguard Total Stock Market Index (1.24%)
Descendants of Adolph Ochs (since 1896)
The family controls about 84% of the stock
Structure of Industry
Newspaper industry WAS a monopolistic structure.
by major players such as:
WallStreet Journal
New York Times
USA Today.
Oligopoly structure
due to the influence of Internet.
Move from print paper > Online/Mobile paper.
Enforce paywalls; temporary solution.
Resort to strategies such as merges & buying out smaller companies.
Begin researching into other methods to retain & gain more readers.
This would benefit advertisement companies : real customers of the industry.
Editorial content not as important as it use to be.
Resort to specific information for targeted communities.
Presence of Internet has allowed smaller companies to thrive.
Even with all these solutions the industry is suffering.
Major Companies are still suffering losses
Thanks for Listening !
Full transcript