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Effect of Technology Change on Newspaper Industry

In: Business and Management

Submitted By cissyliao
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The Effect of Technology Change on Newspaper Industry
From carved stone tablets in Ancient Rome to weightless electronic delivery, newspapers industry has undergone dramatic changes over the course of history. This essay aims to examine how technology progress has overturned the structure of the industry in terms of changes in the entry cost, the degree of market concentration and the degree of product differentiation from the late 19th century to the present.

The first real advance in printing technology was the creation of the linotype machine in 1886, which automated the process of arranging characters into lines of type. By the 1970s, though, phototypesetters, which contributed to a lower fixed cost, began to push the linotype machine into obsolescence. By automating the production of the newspaper, the number of papers available to the public greatly increased, while making it affordable for people to purchase one. These developments led to a boom in the newspaper industry where several different newspapers started to appear in major cities. The advent of the computer age and digital technology has significantly altered the printmaking process. Prepress, which covers all the steps prior to running the press, can now be done on personal computers, significantly reduced costs of printing error leading to lower marginal costs. Since the 1990s The Internet has been increasingly replacing newspapers and magazines as the primary source of news and information. In recent years, newspapers and other media have adapted to the changing technology environment by starting to offer online editions to cater to the needs of the public, further brought down marginal costs in terms of delivering and promotion.
Technically, the entry cost of the industry has fallen due to the technological change of printing. The digital equipment is more affordable than...

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