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Brief Evaluation of the Newspaper Industry

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Module Code: Introduction to Media Management

Brief evaluation of the newspaper industry

Contents

Executive Summary 3

Sector Structure 3

Consumer Behaviour 6

Current Issues 8

Summary 12

References 14

Bibliography 15

Executive Summary

Both newspaper publishing and journalism have changed dramatically over the years, socioeconomic groupings have altered and papers have had to adapt to these evolutionary changes . The question is not whether newspapers are going to continue, but how the publishing industry will adapts. Research shows that newspapers are now charging for online content, but more importantly that consumers are willing to pay.

Sector Structure

Up to date news that is recorded and presented to a consumer is classified as a newspaper, typically through the print medium, on inexpensive newsprint paper, typically sold through retail stands. The industry is divided into two main formats: ‘broadsheets’, sometimes known as ‘the quality press’, more formal and better respected than those taken less seriously which are known as ‘tabloids’. There are also a number of national newspapers funded solely by advertising which are free to the public, for example The Evening Standard, The Metro and City AM.

Product portfolio:

The following list shows the eight mainstream publishers of national newspapers within the UK, and gives the company name titles and circulations figures for 2012:

• News International Limited – The Sun (2,582,301), The Times (397,549) and The Sunday Times (939,395).

• Guardian Media Group PLC.– The Guardian (429,062) and The Observer (253,022).

• Independent News and Media PLC. – The Independent (105,160) and The Independent on Sunday (124,428).

• Daily Mail and General Trust plc (Associated Newspapers) – Daily Mail (1,945,496) and The Mail on Sunday (1,882,469).

• Northern and Shell Media Limited – Daily Express (577,543), Sunday Express (567,800), Daily Star (617,082) and Daily Star Sunday (599,078).

• Pearson PLC. – Financial Times (316,493).

• Press Holdings Limited – The Daily Telegraph (578,774) and The Sunday Telegraph (461,280).

• Trinity Mirror PLC – Daily Mirror (1,102,810), Sunday Mirror (1,594,293).

All of the newspapers listed have additional platforms supporting their newsprint; websites and apps for smart phones that are becoming a large part of the individual business portfolios.

Typical supply chain within the Newspaper industry:

Diagram 1a:

[pic]

Diagram 1b:

[pic]

News value

The process of newspaper publishing begins with content creation: News and advertising, this is done primarily through journalists and researchers. Content that relates to the readership and has excellent news value is crucial, for example for a local newspaper a two page spread on the economic crisis in Greece is irrelevant to and not beneficial to that paper. One of the best known lists of news values was created by media researchers Johan Galtung and Marie Holmboe Ruge. They analysed international news stories to find out what factors they had in common, and what placed them at the top of the news agenda worldwide.

News values are determined through three factors:

Impact:

• Threshold: The more impact a story has, the more news-stands it will be featured on.

• Unexpectedness: If an event is out of the ordinary then it is more likely to make it to the top.

• Frequency: The longer the story goes on the more the paper can financially gain from it, e.g. The Leverson enquiry.

• Negativity: Bad news gets more attention than positive, it scores higher on other news values such as unexpectedness, meaningfulness, non-ambiguity.

• Non-ambiguity: Events that are easier to understand make better copy because the reader can connect more easily with the story.

Audience Identification:

• Personalisation: Feature articles-one person. • Meaningfulness: Story that a reader can relate to. • Reference to elite nations: Nations closest will receive more coverage and interest. • Reference to elite persons: Readers prefer coverage of important people, such as celebrities or politicians.

Pragmatics of media coverage:

• Consonance: Taking an angle on a story that the reader will appreciate. • Continuity: An on-going story. • Composition: Depending on the paper, the relevance of the story to the readership will determine the composition.

Production Business models- Press operations, Packaging operations, Distributing operations: Newspaper business models all use the just-in-time production management concept. Just-in-time stock control consists of the content being produced at the very last minute.This is a vital part of the production process within the newspaper publishing industry because news is ever changing, it allows flexibility with the content and last minute changes to be made.Most production takes place in the early morning Most newspapers use the financial structure of high fixed costs and low variable costs. This is obtained by setting up an efficient print run,where the newspapers are all printed at one time, reducing fixed costs dramatically but not allowing flexibility with the number of issues printed. Capacity utilisation measures the extent to which a business is using its production potential Most newspapers run as close to 100% as possible because it reduces the cost of each individual print. Just-in-time stock control and full capacity make the manufacturing time of newsprints very rigid, pressurising editors and production managers..

Consumer Behaviour

Consumer behaviour within the Newspaper Publishing industry has evolved dramatically since the introduction of newsprint, this is due mainly to the introduction of technology and a changing economic environment. Newspaper demographics of are determined primarily by population statistics with socioeconomic factors such as age, income, sex, occupation, education, family size etc. being influential. Newspapers often define their target market in terms of their own specific demographics, matching the media within the paper to their target market andmaking it attractive to their targeted consumers.

ABC1- socioeconomic groupings

National Readership Survey (NRS) is a 'non-profit but commercial British survey concerned with monitoring, analysing and providing estimates on the number and nature of people who read Britain's newspapers and consumer magazines.

2a:

National Readership Survey (NRS) demographic categories:
|Social Grade |Social Status |Occupation |
|A | Upper middle class | Higher managerial, Administrative or |
| | |Professional |
|B | Middle class | Intermediate managerial, Administrative or|
| | |Professional |
|C1 | Lower middle class |Supervisory or clerical, Junior managerial,|
| | |Administrative or Professional |
|C2 | Skilled working class | Skilled manual workers |
|D | Working class |Semi and unskilled manual workers |
|E |Those at lowest level of income | State pensioners or widows (no other |
| | |earner), casual or lowest grade workers |

Comparison of a daily ‘compact’ broadsheet and a tabloid:

The Times (Former Broadsheet):

The Times, British, daily newspaper (established 1785, News Corporation) was classified as a broadsheet until converting to a compact size in 2004, with the aim of attracting younger readers and commuters using public transport.

• The Times is the 2nd most read daily newspaper in the ABC1 bracket after The Daily Telegraph.

• 87% of the readers are in the ABC1 bracket

• The Times had an average daily circulation of 393,814 in February 2013

• Traditionally supports the Conservative party but in 2001 and 2005 it supported Labour

• Readers have an average household income of £45,000

The Sun (Tabloid)

The Sun is a daily national tabloid newspaper, published in the UK. (established in 1969). The paper is the highest read daily newspaper in the UK, and is famous for its bold and brassy headlines.

• Read by 7.3million (2012) daily

• 2.5million average circulation

• 44% readership is women

• The Sun reaches

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