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Thursday, September 29, 2005

Outlook for newspapers: slight revenue increases but declining cirulation

The Global Entertainment and Media Outlook by PricewaterhouseCoopers predicts a decline in newspaper circulation figures and tepid growth of subscriptions, advertising revenues and single copy purchase for the next 4 years, reports hollywoodreporter.com. (The newspaper publishing market, as defined in the report, includes spending of readers on daily print newspapers, i.e. newsstand purchases and subscriptions, and spending by advertisers. The definition does not include weekly papers and online subscription, which are subject of a special chapter.)

For the U.S., Europe , the Middle East, Africa, Latin America and Canada, the report predicts slight increases in newspaper revenues but declining circulation. Asia/Pacific is said to be the fastest growing region in terms of revenues. According to the outlook, the combined circulation of China and India will rise from 165 million in 2005 to 188 million in 2006 while circulation in the rest of region will decline slightly.

With regard to new technologies the report says, "The Internet has had an impact on the all media channels, including the television and magazine publishing industries. But it has had even more profound effects on the newspaper industry. It undercuts newspapers? revenue sources: Instead of subscription and purchase, people are turning to the Net or TV for up-to-the-nanosecond news. They tend to go online to research products and compare prices from multiple retailers instead of reading newspapers? display ads. And they are listing items for sale and looking for items to buy on electronic counterparts of the classifieds section. In areas where two-way digital television becomes a force, it too is likely to cause consumer usage of newspapers to decline", reports hollywoodreporter.com.

The report also states that newspaper publishers are taking steps, like format changes, new supplements, sponsored circulation etc., to face the different challenges and that without such measures circulation decline would have been even bigger. Furthermore publishers try to take advantage of new technologies, for example in using Short Message Services to update articles.

Source: hollywoodreporter.com

Posted by Anna-Maria Mende on September 29, 2005 at 11:21 AM in i. Future of print | Permalink

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