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Newspaper economics Online and offline Hal Varian March 9, 2010
Economics of newspapers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Revenue and costs Source: Vogel, H, Entertainment Industry Economics, 7th edition, page 343 Revenue (%)  Costs as % of revenue Internet distribution could cut production costs by at least half. Advertising 80 Retail 40% Classified 32% National 8% Sales 20 Newsstand 17% Subscription 3% Total 100% 100 Core 35% Promotion 12% Editorial 14% Administrative 9% Prodn & Distn 52% Production 20% Distribution 14% Raw materials 18% Total 87% 87%
[object Object],Ad spend in US by medium: 1995-2008 Source: US Statistical Abstract
Media share of US Advertising 1959-2009 Source: Martin Langeveld at Nieman Journalism Lab; data from NAA, TVB, IAB, McCann
Newspaper ad revenue and GDP (constant dollars)‏ ,[object Object],Note: growth stopped pre-Internet Source: Newspaper Association of America

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FTC Presentation

  • 1. Newspaper economics Online and offline Hal Varian March 9, 2010
  • 2.
  • 3. Revenue and costs Source: Vogel, H, Entertainment Industry Economics, 7th edition, page 343 Revenue (%) Costs as % of revenue Internet distribution could cut production costs by at least half. Advertising 80 Retail 40% Classified 32% National 8% Sales 20 Newsstand 17% Subscription 3% Total 100% 100 Core 35% Promotion 12% Editorial 14% Administrative 9% Prodn & Distn 52% Production 20% Distribution 14% Raw materials 18% Total 87% 87%
  • 4.
  • 5. Media share of US Advertising 1959-2009 Source: Martin Langeveld at Nieman Journalism Lab; data from NAA, TVB, IAB, McCann
  • 6.
  • 7.
  • 8.
  • 9.
  • 10. Daily newspaper circulation (000) Source: Newspaper Association of America
  • 11. Circulation per household Source: Newspaper Association of America
  • 12. Trends in news access Source: Pew Research
  • 13.
  • 14.
  • 16. Media usage by consumers
  • 18.
  • 19.
  • 20.
  • 21.
  • 22. Revenue by advertising verticals for newspapers Source: Newspaper Assoc of America
  • 23.
  • 24.
  • 25.
  • 26.
  • 27. Sources by slide 02: Vogel, H, Entertainment Industry Economics, 7th edition, page 343 04: http://www.census.gov/compendia/statab/2010/tables/10s1243.xls 05: Martin Langeveld at Nieman Journalism Lab http://www.naa.org/TrendsandNumbers/Newspaper-Websites.aspx 06: http://www.naa.org/TrendsandNumbers/Advertising-Expenditures.aspx 07: http://www.naa.org/TrendsandNumbers/Advertising-Expenditures.aspx 08: http://www.naa.org/TrendsandNumbers/Advertising-Expenditures.aspx 09: http://www.naa.org/TrendsandNumbers/Total-Paid-Circulation.aspx 10: http://www.naa.org/TrendsandNumbers/Total-Paid-Circulation.aspx 11: http://www.census.gov/population/www/socdemo/hh-fam.html#ht 12: http://people-press.org/report/479/internet-overtakes-newspapers-as-news-source 13: http://people-press.org/report/479/internet-overtakes-newspapers-as-news-source 14:http://www.niemanlab.org/2009/04/print-is-still-king-only-3-percent-of-newspaper-reading-actually-happens-online/ 15:http://www.census.gov/compendia/statab/2009/2009edition.html 16:http://www.census.gov/compendia/statab/2009/2009edition.html 17:http://www.census.gov/compendia/statab/2009/2009edition.html 18: Google data 19:http://industry.bnet.com/media/10005995/how-google-yahoo-and-microsoft-support-five-big-newspapers/ 22:http://www.naa.org/TrendsandNumbers/Advertising-Expenditures.aspx