Newspaper industry


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Newspaper industry

  1. 1. Name of Group :Andhika KurniawanPontohDani Vanadi JuniusDwihartadiKertiyasaHendriksSyelviyona Erlinda
  2. 2. Perhaps the broadest way to think aboutnewspapers in the United States is to dividethem into :A. dailies newspapers that are published at leastfive times a weekB. weeklies newspapers that are published oncea week
  3. 3. dailies newspapers
  4. 4. Table 8.3Media Today page 314Table 8.4Media Today page 314
  5. 5. A cause of the circulation drop of a fewbig-city papers• free newspapers, in particulara daily called Metro. Ownedby a Swedish publisher, Metronow publishes in 100 cities in20 countries in Europe, Asia,and North and SouthAmerica. It claims a reach of22.8 million readers daily.• high-speed (―broadband‖)Internet connections• DailyNewspaper Chains It’simportantto note that with theexceptionof the free papersdaily newspapers tend nottohavecompetitionfrom otherdailies• Moreover,most of the dailies inthe United States are controlledby a few large firms. In 2000, forexample,newspaper chains (orgroups) controlled about 1,083dailies; only about 400 wereindependent.
  6. 6. • the number of independentdailies has certainly notgrown• The logic of chain ownershiphas traditionally been quitestrong. A daily newspaperthat was the only one in itsarea could pretty well dictateprices to local advertisers—car dealers, departmentstores, movie theaters—thatwanted to reach highpercentages of the populationon a regular basis.Consequently, daily• newspapers’ margins of profithave been quite high, farhigher than most otherindustries.
  7. 7. in recent years, newspaper executives and their investorshave begun to worry that this logic no longer holds. Losses inreadership, and increased competition for :- local advertising by the Internet-free newspapers-local media have led investors to downgrade the-monetary value of some of the biggest newspapercompanies
  8. 8. • Times newspaper put it in 2007, ―most newspaper chainsare still wildly profitable by conventional measures—generating pre-tax margins of 20 percent or more• executives are finding it difficult to maintain those levelsand deliver the earnings growth that Wall Streetdemands. With revenues stagnant, most have resorted tocost-cutting to appease shareholders. Moreover,declining margins of profit and concerns for the long-term future of the business have led some of those firms tosell out to others.• Example : Tribune Corporation, Knight Ridder, and DowJones
  9. 9. Financingthe newspaper businessNo matter what their size, topic, or language,newspapers need to make money. They cangenerate revenues in two ways: fromadvertising or from circulation.
  10. 10. Advertising• Retail advertising is carried out by establishments locatedin the same geographic area as the newspaper in which thead is placed. Retail advertising is the most important of thefour main areas of newspaper advertising.• Classified Advertising The second most lucrative type ofnewspaper advertisement is the classified ad, which makesup near 40 percent of the revenue pie. Classified ads areshort announcements for products or services and the arethe second most lucrative.
  11. 11. • National ads are advertisements placed by large nationaland multinational firms that do business in a newspaper’sgeographic area.• Freestanding Inserts Inserts, often called freestandinginserts (FSIs), are preprinted sheets that advertiseparticular products, services, or retailers. FSIs are notprinted as part of the paper itself, but are inserted into thepaper after the printing process has been completed.
  12. 12. Circulation Challenges Facing Newspapers• During the 1990s and into the twenty-first century, therate at which daily newspapers died moderated. Thecirculation issue that now concerns many daily newspaperexecutives is whether young people will stop readingpapers because they are so heavily involved in electronicmedia. Research in 2005 revealed that 66 percent ofpeople 55 years and older read daily newspapers onweekdays and Saturday; 72 percent read the Sundaypaper. When it came to 18–24-year-olds, though, only 38percent were weekday readers, and only 46 percent readthe sunday paper
  13. 13. Production in the newspaper industry.In this parts we will focus on two general areas. One involvesthe creation of the content that goes into the papers, and theother involves the actual technical process of puttingtogether a newspaper.The creation of a newspaper’s content differs between dailiesand weeklies, and between newspapers with largecirculations and those with small ones.
  14. 14. The newspaper’s publisher is in charge of the entirecompany’s operation, which includes financial issues (gettingadvertising, increasing circulation), production issues, andeditorial issues. Editorial in this case has two meanings. In anarrow sense, it means the creation of opinion pieces by thefirm’s editorial writers. More broadly, it means all non-advertising matter in the paper
  15. 15. Distribution and the newspaperindustry.Distributionindustry means bringing the finished issueto the point of exhibition.Newspapercan be distributingto :• A person’s house•A newsstand•A supermarket•Vending machine•Computeror mobile house
  16. 16. Distribution and the Newspaper industry• Decision to emphasize certain areas and not otherscan affect the makeup of the newspaper themselve (publisher harus mendorongeditor untukmengembangkanfitur2, dan mencapai ataumendapatkan berita yang menarik bagi targetaudience)• Major daily newspaper have been concentratingtheircirculation efforts on the suburbs as opposed tothe core cities that used to be theiraudience base
  17. 17. Exhibition in the newspaper industry.The digital Inquirer and Daily News do share areas on onedistribution site, Like other online newsoutlets, it is distributed through exhibitors—typically cable andtelephone companies—to computers, smart phones and otherdevices wherever users can and want to pick it up. In the physicalworld, the exhibition point of a newspaper is more specific anddepends upon its type.
  18. 18. AchievingTotal Market CoverageHistorically, paid-subscription daily or weekly newspaperscould guarantee to advertisers that their ads would reachvirtually every home in the newspaper’s coverage area.However, because of the nationwide decrease in the percentageof homes receiving newspapers, the major dailies or weeklies in aregion can no longer automatically provide advertisers withwhat people in the industry call total market coverage (TMC).Other competitors offering TMC to advertisers are direct mailfirms, marriage mail outfits.
  19. 19. New Exhibition Strategies forNewspapers- Retailers have found that marriage mail and shoppers areefficient ways to get their FSIs out to entire neighborhoods whenlocal newspapers cannot offer that kind of service or when theyare more expensive. As you can imagine, marriage mail firms andshoppers have siphoned away newspapers’ coveted supermarketadvertising and FSIs.- Some newspapers have started their own shoppers andmarriage mail operations or have bought their competitors.Other papers have supplemented their regular paid circulationto certain key areas with a weekly TMC circulation.
  20. 20. A key industry issue: building readership.• must adapt their organizationsto new digitalmedia :–analog strategies, which involve the physicalpaper–Digitalstrategies, internet etc
  21. 21. analog strategies• MoreAttractiveand Colorful Layouts• Reader friendly : include fewer stories on the front page,more liberal use of white space, quick news summaries andnotesabout ―what’s inside,‖ and more use of charts andpicturesto convey information.
  22. 22. SectionsDesignedtoAttractCrucialAudiences1. find out what those target audiences want, publishersemploy research firms to conduct surveys and focusgroups2. find out what kinds of things people want to readabout and to give them what they want3. news that is clearly relevant to their want .Example : business section, created sections on scienceEmphasizingLocalismreporting on the communities/ local peoplein which their readers live
  23. 23. Digital strategies1. keep the sites interestingso that readers keepcomingback and new readers visit2. SectionsDesigned
  24. 24. 3. serve ads efficientlyto people based on both theirregistrationmaterialand their activities online(for example, their interestin the automotivesection or the style section)4. make and keep their sites attractiveto readers withaudiovisual, podcast and etc5. formattedfor the user’s cellular phone, ―smart‖device or personal digital assistant6. must balance their level of localism with theadvertisingthat it brings in.Ex: digital report about community event with adv abouttheir community