PRIMIR Report Predicts Future of Newspaper Industry
The Print Industries Market Information and research Organization (PRIMIR) has published a study, “The Future of the North American Newspaper Industry.”
The study, conducted in late 2008, examines the forces shaping the North American newspaper industry. These include changing marketing strategies and the emergence of digital media – from wireless devices to e-readers to social networks – that are affecting newspaper advertising revenues.
Clearly, the greater the penetration of the Internet and broadband access, the more display and classified revenues fall for the newspaper industry. However, according to the report, revenues from newspapers’ digital products will help combat the erosion of traditional newspaper revenues.
One publisher predicts, “within three years, 50 percent of [our] revenue will be from digital.” By 2020, the report predicts that circulation for daily newspapers will have eroded by 26 percent, and Sunday circulations will have declined by approximately 40 percent. Companies servicing the newspaper business can expect an industry likely to be a third smaller in revenue and about half the size it currently is, in terms of volume of materials consumed.
Newspapers themselves will look slightly different from those of today as well. Readers most likely will be buying newspapers that are smaller in size and have fewer pages.
The quality of printing, not to mention the paper, may be more upscale than current iterations, however. Meanwhile, coverage may lean more toward local news than ever before. That spells continued opportunity for printing and digital printing.
Despite all these changes, the study concludes that great opportunities do exist for some suppliers to the newspaper industry.It is expected that many newspapers will outsource non-core competencies, including printing and IT, which may provide opportunities for suppliers to step in and delve more into the service industry. As newspaper publishers spin off their printing operations, the printers picking up that business may need to upgrade their equipment to meet publishers’ increased quality expectations. Consumables vendors, for their part, may be able to encourage publishers to adopt higher standards for paper and inks to ensure quality publications. Because of the potential for versioning in the future, plate suppliers may actually see an increase in plate consumption by the newspaper industry over the next 12 years.
While it won’t be ‘business as usual’ in the newspaper industry, opportunities do await firms in the industry supply chain who are willing to think ‘outside of the box.’ For more information about PRIMIR, contact Jackie Bland; (703) 264-7200;through e-mail: firstname.lastname@example.org; web: www.primir.org.
Report on U.S. Commercial Printing Profits Says 1Q 2009 ‘Less Worse’
WhatTheyThink, a media organization serving the printing and publishingindustry has released its most recent report, “U.S. Commercial Printing Profits, 1995 to Q1-2009,” authored by Dr. Joe Webb.
The first quarter of 2009 was “less worse” than the fourth quarter of 2008, which was labeled “a profits disaster” at that time by Dr. Webb. He noted that the U.S. Department of Commerce recently revised the fourth quarter data to exceed $2 billion.
According to Dr. Webb, the depth of the printing downturn has been reflected in its employment. “About one in eight print workers has been idled as printers look to sidestep the sales and profits downdraft,” said Dr. Webb. “It’s not just the recession. Print has had eight consecutive quarters of decline, and some of its prime customers, banks and financial institutions, are not likely to return to their pre-crisis budgets levels soon. Even then, digital media alternatives are expanding their share of those budgets.”
In this report, Dr. Webb analyzes the latest printing industry employment data and capacity data, and where they’re likely to be headed for the next six months and in 2010.
The Printing Profits Report contains both current and inflation-adjusted analysis of commercial printing and print services shipments and profits from 1995 to the first quarter of 2009. The bonus audio file includes Dr. Webb’s analysis, opinions and strategic outlook.
WhatTheyThink’s Economics and Research Center contains a both free and premium content for graphic arts and publishing executives. “U.S. Commercial Printing Profits, 1995 to Q1-2009” can be purchased for $50 via the WhatTheyThink’s online store (www.whattheythink.com).