NEWSPAPER INDUSTRY by VEENA VIJAYAN

NEWS PAPER INDUSTRY






Submitted by
Veena. M

























INTRODUCTION

A newspaper is a regularly published print product containing information vital to the function of the market it serves. Definitions become more important as traditional newspaper companies move from single-product management (newspapers) to multi-product management - often under the company's brand, typically the title of the newspaper. What newspaper companies are learning is that the value of what they produce is not the ink on paper, but the content, depth, segmentation choices, credibility, and emotional attributes that are delivered in any distribution channel they choose.








HISTORY OF NEWS PAPER INDUSTRY


The newspaper as we know it today is a product borne of necessity, invention, the middle class, democracy, free enterprise, and professional standards. Choose your historical marker to begin the history of newspapers. The first news sheet? The first newspaper? The first daily newspaper? Pre-history "newspapers" were one-to-one in nature. The earliest variation on a newspaper was a daily sheet published in 59 BC in Rome called Acta Diurnal (Daily Events), which Julius Caesar ordered posted throughout the city. The earliest known printed newspaper was in Beijing in 748.











EVOLUTIONS

 First phase of evolution: In 1451, Johannes Gutenberg uses a press to print an old German poem, and two years later prints a 42-line Bible -- the significance being the mass production of print products, ushering in an era of newspapers, magazines, and books. By 1500, the genesis of a postal system can be seen in France, while book publishing becomes popular throughout Europe and the first paper mill can be found (England).

 Second phase of evolution: Zeitung (newspaper) is a news report published in Germany in 1502, while Trewe Encounter becomes the earliest known English-language news sheet in 1513. Germany's Avisa Relation order Zeitung, in 1609, is the first regularly published newspaper in Europe. Forty-four years after the first newspaper in England, the Oxford Gazette is published, utilizing double columns for the first time; the Oxford/London Gazette is considered the first true newspaper. The first North American newspaper, Public Occurrences Both Foreign and Domestic, was published in 1690 in Boston.

 Third phase of evolution: The 1700s was a century in which market elements were created that encouraged the development of daily newspapers: rising literacy, the formation of nation-states, a developing postal system, the proliferation of urban centers, a rising literary and philosophical tradition emphasizing democratic involvement in government, and technologies that supported newspaper production. In short, it was a great news century. The first daily newspaper was The Daily Courant in London, 1702. In 1754, The Daily Advertiser in London uses the first four-column format. France's first daily newspaper appears in 1777, Journal de Paris, while the first United States daily was the Pennsylvania Packet in 1784.

 Fourth phase of evolution: The rise of the middle class transformed newspapers in the 1800s. A penny (US$0.01) buys a New York newspaper in 1833, opening up the first mass market for newspapers. In 1847, the telegraph is used as a business tool, transforming far-away stories. In 1873, an illustrated daily newspaper can be seen in New York. In 1878 the first full-page newspaper advertisements appear, and in 1880 the first photographs are seen in newspapers, using halftones.






 Fifth phase of evolution: The technical groundwork for the modern newspaper in place by the late 19th century, the story of newspapers in the 20th century was about professional development and adaptation to changing consumer and media markets. The story also involved an evolving business model that rode an ever-growing wave of mass-market advertising. Increased profitability and higher revenues attracted publicly owned corporations interested in buying newspapers from descendants of company founders, while simultaneously exposing newspapers to the whims of cash- and profit-hungry stock markets.

 Sixth phase of evolution: By 2000, newspapers were juggling priorities: fragmentation of news consumption, fragmentation of advertising investments, the advantages and disadvantages of being a mass medium, balancing the wants of the marketplace with the company's duty to provide the needs of the marketplace, a journalistic backlash against industry changes, the sheer physicality of ink-on-paper production and distribution versus digital distribution, increasing profit pressure surrounding the core print product, and extension of the company's core brand into other profit centers.









IMPORTANS OF NEWS PAPER INDUSTRY



The newspaper industry is at a strategic inflection point – a period of disruptive changes that threaten its current way of doing business with no clear future path. The threats come from many directions but are manifesting themselves in the form of declining circulation, rising costs and downward revenue pressure. These trends show no sign of reversing themselves. The industry’s very survival is dependent on its ability to reframe completely the way it does business, and find new ways to attract and keep customers. Many industries throughout history have reached strategic inflection points; not every industry has weathered them successfully. This project’s goal is to ensure that newspapers survive these disruptive
Chapter 3 Evolutions 3
4
Chapter 4 Important of news paper industry 5
Chapter 5 Ownership 6
Chapter 6 Main initiatives 7
Chapter 7 News paper in next 8
Chapter 8 Profit 9
Chapter 9 Conclusion 10



OWNERSHIP



Newspapers, for example, are major parts of the global empires of Rupert Murdoch (News International) and Conrad Black (Hollinger International). Now, others are getting into the capital game. The U.S. media company, Gannett, now owns News quest, one of the top regional newspaper companies in the United Kingdom. On the other hand, a traditional newspaper company like VNU in The Netherlands recently sold its newspapers because their investments in business-to-business publications and research companies in the United States became their focus. Thomson sold its U.K., U.S., and Canadian newspapers in recent years with the strategy of focusing all energies on electronic publishing.




MAIN INITIATIVES



It aims to research, develop and exploit new methods, processes and procedures to promote continual environmental improvement and enhance environmental decision making.
The Initiative was born in 1995, founded by world leaders in the paper and inks industries. Those companies shared a strong commitment to the environment which brought them together to plan strategically for a sustainable and healthy future for the industry and for society.






What is Newspaper Next?
Newspaper Next is an ambitious, year-long project undertaken by the American Press Institute to research and test viable new business models for the newspaper industry. Understanding that the best answers will come from a broad spectrum of thinking, API has retained innovation consulting firm Inn sight LLC and has impaneled a task force of visionaries and thought leaders to collaborate on this important work-In sight and the task force presented an interim report on their findings at the Newspaper Next Transformation Symposium on February 8 and 9, 2006, in Washington, D.C. Final recommendations are due in late 2006. Back to top



PROFIT OF NEWS PAPER INDUSTRY


Mills industry characterizes the industry in three descriptive methods: qualitative analysis, quantitative data and lists of major industry players. The written analysis includes financial issues, technology issues, human resources issues, supplier issues, consumer issues, government regulations, global factors, major industry news highlights, major earnings and profit reports, major mergers and acquisitions, and our exclusive industry SWOT analysis (industry internal strengths, internal weaknesses, external opportunities and external threats).
Along with the trend analysis, quantitative data includes five-year trends (2006-2010) on number of establishments, industry and number of employees. This data is developed through Trendology's economic model using regression analysis based on historical industry trend data. Forecasts are available for 2010. Quantitative data for current year 2009 is provided for the U.S., 50 U.S. states, and 900 metro areas. The report also lists up to ten of the industry's major players, their current sales and stock symbol (for public companies). Color charts and graphs run throughout the report to highlight trends and are ready for presentations and displays. Links to Internet sources in the report are useful for additional research and data gathering.



CONCLUTION

Despite mounting declines in sales and circulation in recent years, most newspapers today still generate profits surpassing those of many Fortune 500 companies. But the fat profits are coming to an end, because newspapers are running out of ways to cut costs. After producing operating earnings at an average rate of 27.3% between 2000 and 2007, the industry’s margin this year may average no better than 20%, says William Drewry, a managing director of the global media group of the UBS investment bank. Average earnings before interest, taxes, depreciation and amortization (EBITDA) were 24.6% in 2007, according to UBS.Assuming the industry this year generates $40 billion in ad sales and $10 billion in circulation revenues, EBITDA of 20% would carve $3.7 billion, or, 27.2%, off the approximately $13.7 billion in profits that newspapers collectively realized in 2007.A profit plunge of this magnitude would be a big problem for such companies as Gatehouse, Journal Register, Lee Enterprises, McClatchy, Media General, Media News, Minneapolis Star Tribune, Morris Publishing, Philadelphia Media Holdings and Tribune, which each loaded up on debt during the halcyon days of the credit market to fund ambitious acquisitions.