Brief Excerpt from Industry Overview Chapter:
Companies in this industry are engaged in operations like producing and distributing newspapers, and also include writing news and selling advertisements. The newspapers published are in both print and digital forms. Major companies include Gannett, McClatchy, and News Corp (all based in the US). Other major companies outside the US are Asahi Shimbun (Japan), Axel Springer (Germany), and the Daily Mail and General Trust (DMGT) (UK).
COMPETITIVE LANDSCAPE
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
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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