Why are newspaper companies going out of business24 July Written by - Priya Ranjan Mohanty Tagged as - Blog
Newspapers are going out of business. And, you already know it. It is not an easy thing to accept for the stakeholders of newspaper publishers. And in countries like India, there are people who think the newspaper industry will grow in the future. Please come out of delusion. Newspaper is dying. It’s not your fault. It is just new replacing old. Here are some of the key reasons why newspapers are going out of business.
1. Digital Media:
Digital media obvious reason why the newspaper is declining. Did you know that almost 80% of the content in digital media is derived from print media only? But, digital media is thriving because it is fast, real-time and inexpensive. But, is digital media the only reason for print media’s decline? No. Digital media is just the tip of the iceberg. There is much more to it than we can see.
2. Why Print?:
The printing process is very expensive. It involves the cost of raw material, machinery, logistics and many more components involved in it. All of it can be eliminated if we choose to publish digitally instead of printing.
3. Printing is not eco-friendly:
Every year 4 billion trees are cut down for newspaper printing. Our generation did not realize it but our successors are slowly learning that printed newspapers are not doing any good to the environment. So they decided not to buy newspapers, instead, they will download a mobile app which will serve the same purpose.
Newspapers and media channels have relied on the broadcasting pattern of content delivery where the same content is delivered to everyone. But, the modern news delivery platforms personalize the news depending on the preferences and choices of the reader. The content is also customized in terms of delivery mode, i.e. in the form of text, audio, video, images, etc. One size fits all work no more. Which means the future of newspapers looks dull.
5. Classified Ads Declined:
Newspapers (Especially local ones) have relied on Classified Ads to generate a large chunk of their revenue. However, with the advent of online classified websites like Craigslist, Yellowpages, Justdial, and Olx are taking away the classified business from newspapers.
6. Real-time content:
Televisions & especially news channels have already disrupted the industry because of the real-time advantage they have. However, Social Media has taken it even further wherein the form of trending news. People are having access to the real-time news where newspapers serve as the summary of the event where you get to see the just highlights of an event.
7. Manpower quality going down:
In 2016, for the third year in a row, the CareerCast survey of the best and worst jobs in the U.S. reports that a newspaper reporter is the worst career (Source: Wikipedia). Less and less skilled people are joining the field. With the quality of people going down, the overall standards are also on the decline.
Indian newspaper market
One of the abnormalities we have found so far is Indian Newspaper Market. In India, the newspaper is still on the rise. Industry stalwarts say this is because of the rise in per capita income and upliftment of the poorer class of the society. It is believed that the poorer segment who couldn’t afford to buy a newspaper (or read it in some cases due to illiteracy) can now afford to buy it. Local newspapers especially are making profits in a uncertain market. However, this may not be the case 5 years down the line. Digital penetration is rapidly happening in the market and people are slowly changing their preferences. Almost all major local newspapers in India are publishing e-papers and investing heavily on digital media. Only time will tell what will happen to these newspaper publishers.
US & European Market
Local newspapers have dominated US newspaper market for decades. Between the 1990s to 2000s the industry saw its peak in growth & circulations. Then came a time when the internet exploded and the newspapers saw their worst time. Multiple newspapers closed down their doors because they couldn’t afford to run it. However, those who survived are still making a profit, although the margin has narrowed down. The European market also saw a similar decline pattern but not as severe as the US. However, due to local language dominance, the market is still able to survive with partial assistance of digital media and technology.
How Sygina can help falling newspaper publishers?
Sygina is a software company which specializes in solving operational and technological challenges for newspaper publishers. Our solutions enable the publishers to cut down printing cost and bring operational efficiency. We help the newspapers to stay profitable in a time when the business surrounded by uncertainities. Get in touch to discuss the possibilities...
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