Brief Excerpt from Industry Overview Chapter:
Companies in this industry publish newspapers in print and digital forms. Major companies include US-based Advance Publications, Gannett, MediaNews Group, and News Corporation, as well as Germany's Axel Springer, Japan's Asahi Shimbun, and the UK's Daily Mail and General Trust.
Corporate spending on advertising and consumer disposable income drive demand. The profitability of individual companies depends on effective marketing and efficient operations. Large companies benefit from economies of scale in administration and by providing a range of outlets for advertisers. Small publishers can compete successfully by serving desirable markets. The US industry is concentrated: the top 50 companies generate about 75% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
The main sources of newspaper revenue include circulation (subscription and single-copy sales), which accounts for about 56% of traditional global revenue, and advertising (digital and print), which accounts for the remaining 44%. Large-circulation newspapers are usually produced daily; community newspapers are usually produced weekly. A small but growing share of newspaper revenue comes from new sources such as digital agency and marketing services, event marketing, e-commerce, commercial printing, distribution of other products to consumers, and income from royalties, licensing, rental, waste, and scrap sales. Some newspapers operate under a controlled-circulation model –- they're free to a targeted audience and receive revenue only from advertising.
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