Print Media

Final Report on:

Print Media(Past
Present & Future
Scenario)

Submitted to:-
Submitted by:-Mr. Amit Joshi
Varnita Kaushik
B.B.A 2 nd Yr.
Enroll:
1002C00022

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ACKNOWLEDGEMENT

Behind every study there stands myriad of people whose

help and contribution makes it successful.

It has been a remarkable experience of satisfaction and

pleasure for me

to work on my project under the supervision of Mr. AMIT

JOSHI. I am

really thankful to him for his valuable guidance and co-

operation during

the project work. I had also benefited from discussions and

would also

take the opportunity to thank the company personals

for their valuable

support and assistance.

Whenever and wherever needed. A cordial and

encouraging environment

made it very easier for me to complete the project. So this

acknowledgement is a humble attempt to Earnestly thank

all those who

were directly or indirectly involved in preparation of this

project.

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CONTENTS

INTRODUCTION

AN OVERVIEW OF THE TERM MEDIA

FORMS OF MEDIA

PRODUCTION SYSTEM

SWOT ANALYSIS

ADVANTAGES AND DISADVANTAGES OF PRINT MEDIA

EVOLUTION OF PRINT MEDIA

EFFECTS OF EVOLUTION

ETHICS OF PRINT MEDIA

PRINT MEDIA CHARECTERISTICS

CHALLENGES TO PRINT MEDIA

OVERVIEW OF TWIN CRISES

REVENUE ALTERNATIVES

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BIBLIOGRAPHY

INTRODUCTION
The media industry has always adapted to meet the changing
needs of advertisers and to incorporate new technologies into
their service and product offerings. Over the last two decades
this industry has changed at a breakneck pace that is no longer
a series of adjustments but a wholesale evolution of the
industry. New media have entered the arena while others have
been forced to evolve to avoid becoming obsolete. These
changes have been driven by advancements in technology,
consumer media usage and the almighty dollar. Perhaps no
media has been more challenged by these changes than print.
While print media has been the hardest hit, talk of its extinction
is premature and ignores the fact that it has and continues to
play a significant role in consumer marketing. Print media is
here to stay but its form and role will never be the same again.

Like all media forms, print has evolved over time and has been
undergoing a period of considerable change that began prior to
the recent recession. Newspaper ad revenues have been
experiencing significant decline since 2001 while penetration
has been declining in many key segments since the early
1970s . This decline has been less pronounced with readers
age 55+. As more tech-savvy baby boomers reach retirement,
the decline seen in younger segments will likely be matched by
the older.

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The print media include all newspapers, newsletters,

booklets, pamphlets, magazines, and other printed
publications, especially those that sell advertising space as a
means of raising revenue. The print media in India is a
long way from being dead if the offi cial report on the state
of the print publications is anything to go by. The Press in India
2004-5, the annual report of the Registrar of Newspapers for
India (RNI), says the print media claimed a substantial share in
the information space in the country registering 1,948 new
newspapers and over a two crores increase in circulation in
2004-05.. Most print media, with the exception of magazines,
are local, although there are some national newspapers and
trade publications that have become quite success

In order to combat the decline in all age groups, print media

has diversified their offerings and taken steps to acquire new
readers while cutting costs. Nearly all newspaper and
magazine publishers have added complementary websites to
their offering. In an effort to attract younger readers major
publishers such as the Tribune and Sun-Times Media Group
launched free circulation newspapers geared towards their
target audience. Magazines such as Road & Track and Sports
Illustrated have provided unsolicited free 6 month subscriptions
followed by a renewal subscription contact strategy thereby
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providing a free trail. In an effort to cut costs, some

publications have abandoned long standing formats. On
February 8th 2010 the Chicago Tribune trimmed its traditional
broadsheet format to reduce costs and changed their editorial
ratio as part of their bankruptcy agreement. As print revenues
continue to decline profits are improving and should it be
determined that these acquisition efforts and format changes
played a key role, it is likely that other publications around the
country will follow.

Online advertising has benefited from regular technological

advances and has become a mainstream advertising medium
now representing 12% of total ad spending compared to 34.6%
for print. The explosive growth of online advertising has
tapered off and for the first time experienced negative growth
in the first quarter of 2009. Internet advertising spend grew
37.5% between 2005 and 2008 while print declined 29.9% over
the same period. However, the decline of print has not been
made up by growth in online advertising.

AN OVERVIEW OF THE TERM MEDIA

The Media refers to the diff erent channels we use to

communicate information in the e v e r y d a y w o r l d .
M e d i a i s t h e p l u r a l o f m e d i u m ( o f co m m u n i c a t i o n ) ,
a n d t h e m a i n media are

TELEVISION
MAGAZINES
FILM
RADIO
ADVERTISING
POP MUSIC
NEWSPAPERS

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INTERNET

The entertainment and is one of the fastest growing sectors in

India. The Indian economy has been growing at a fast clip
over the last few years, and income levels and
consumer spending is also on the rise. Besides these economic
and personal other, that are contributing to this high growth
rate income-linked factors, there are other, that are
contributing to this high growth rate.

FORMS OF MEDIA

Electronic media and print media include:

B ro a d c a s t i n g , i n t h e n a rro w s e n s e, f o r r a d i o a n d
television.

Va r i o u s t y p e s o f d i s c s o r t a p e . I n t h e 2 0 t h c e n tu r y ,
t h e s e w e re m a i n l y u s e d f o r music. Video and computer
uses followed.

Fi l m , m o s t o ft e n u s e d f o r e n t e r t a i n m e n t , b u t a l s o
for documentaries.

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I n t e rn e t , w h i c h h a s m a n y u s e s a n d p re s e n t s b o t h
o p p o r t u n i t i e s a n d c h a l l e n g e s.
Blogs are unique to the Internet.
Pu b l i s h i n g , i n t h e n a rro w s e n s e , m e a n i n g o n p a p er ,
m a i n l y v i a b o o k s , m a g a z i n e s, and newspapers.

FUTURE FORECASTING OF PRINT MEDIA

1. Print media has scope in digital age:

Poi se d on a tra je cto ry o f g row th, t he coun try 's

p r i n t m e d i a i s f a c e d w i t h challenges such as rising
newsprint costs but has opportunities in the digital age.
The print media's potential lies in the fact that the press
reaches 35 per cent of its adults.

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The Indian newspaper industry's turnover is expected to

touch Rs. 13,500 crore this year from Rs. 12,000 crore
last year. If the country's growth were around eight
per cent, the industry's turnover would grow at 12-14 per cent.
Not only is there opportunity for the Indian print media to grow
but growing consumerism has thrown up opportunities for
special interest magazines, Mr. Aroon Purie, Chairman
and Chief Executive, India Today Group, said at a session
on the future of print media at FICCI-Frames 2006. In a
robust economy, special interest magazines will
proliferate and fl ourish. Players will work towards offering
niche products, he said. However, newsprint price, which is on
an u p w a rd t re n d , i s c r i ti c a l a s 1 . 6 b i l l i o n t o n n e s o f
n e w s p r i n t a re c o n s u m e d i n I n d i a annually. Newsprint
accounts for a significant part of the costs.

While other Medias pose competition to the print media,

changing technology would drive growth, Mr. Mathew said.
Portals such as Naukri.com and Shaadi.com have made major
inroads into classified advertisements. But in the digital age;
newspapers will have to redefi ne content. "Never take a
reader for granted. It is a challenge to retain readers.

2. Print media scores over TV:

The print media has been able to retain its loyal

readership despite the growing influence of
television. In spite of the initial euphoria generated
over the visual media encroaching upon print, the
reading habit among Indians, especially youth, has

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gone up slightly in the country during the last two

years.
The visual media has not really affected the print
media. The survey report was released to a packed
audience of over 400 media, advertising and
marketing professionals. The survey concentrated
on 397 publications 166 dailies and
231magazines. The governing members of the
council spent about 554 man-hours for the study,
informed Gautam Rakshit, chairperson of the governing
council of NRSC.

TV accounts for 68.8 per cent of the total media

exposure in the country from the sample survey, while
the share of print media is 16.2 per cent and that of
radio at 15 per cent. The sample population which was
randomly selected was in the age group of 15 to82
years. The survey said the influence of TV has reached
3.36 crore homes.

3. Present and future of the Indian Magazine Industry

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Ashish Bagga, CEO, India Today Group in one of the

sessions made observations about the current scene
in the Indian magazine industry and said that there
has been an unprecedented growth in mainstream
magazines, niche publications and B2B periodicals in
India. The relatively liberalised policy regime laid down
by the Indian government in the area s of licensing
and syndicatio n for print media have benefi ted
the magazine industry by enabling the print
companies to get the government's approval in just a
year for 50 applications. He also added that there was
still room for improvement compared to newspapers
and other media forms in areas such as its share of
advertisement revenues.

Other area where magazines are facing challenges are

- real-time constraints such as unrealistic norms for
certifying paid circulation by the Indian ABC
causing a mass exodus of magazines from its
membership; research methodologies for national
research studies were skewed towards newspapers;
and huge pressure of talent acquisition and
retention.

Future activities in favour of the print media

will centre upon:

Establishing technical support for local and

commercial initiatives in the print media, with a
'train-the-trainer' scheme;

Improving the technical quality and content of the

print media;

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Increasing and broadening readership of the print

media.

PRODUCTION SYSTEM

PRINT MEDIA

One of the largest & fully integrated Pre-Press, On-Press and

Post-Press print production facilities in India. A complete and
latest Pre-Press, On-Press & Post-Press set up under one roof.

PRE-PRESS

D.T.P. Facilities, Photo Composing, Graphic Design Studio, Text

Designing, Image Setter, Scanning, Planning, Creative Work and
Scanner with System.

ON-PRESS

4 Colour Heat-Set Web, 4 Colour Cold-Set Web, 4 Colour Stack

Unit Web, 6 Colour Sheet Fed, 2 Colour Sheet Fed, Single Colour
Sheet Fed and Screen Printing.

POST-PRESS

Paper Cutting, Wire Stitching, Folding, Lamination,

Perfect Binding.
Sahara Samay brings you the world's most
advanced and Asia's largest fully automated
electronic news production technology.
Investments of more than USD 54.35 million (INR
250 crore) with features that ensure the most

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comprehensive news coverage. Sahara Samay

operates at both the country wide and local level.
View the technical specifications of Sahara
Samay.

SWOT ANALYSIS

PRINT MEDIA

1. STRENGTHS -

In primitive stage certain sounds, bells, drum beats were

considered as a kind of advertisement earmarking special
information and announcements were conveyed through these
sounds. Later on New Advertising media were the daily News
papers, magazines, and posters on walls captured the
advertisement.

Still Daily News papers are the first one people depend on
getting News and advertisements. Most popular News Papers
like Hindu in Chennai, Malayala Manoramain Kerala, Dainik
Bhasker in Rajasthan are the No. 1 News papers to name a
few, having lakhs and crores of readers.

Print Media will never lose its glamour and popularity and will
continue to remain as the 1st choice of whole humanities to
promote their products, education fields &services because
Print media reaches early morning at our door steps with and
without the use of Electricity or any equipment one can read
the News paper. Magazines are more cost effective than other
media forms.

2. WEAKNESSES -

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Advertisers and agencies need to take trade-off calls,

between the bigness of the idea v/s the consumers
reached.
Many innovations that might work in print, may not work
in television and vice-versa. So planners need to
understand the strengths and weaknesses of both the
mediums.
Print has seen some innovation in the last few years, in
terms of lay-outs and positions and advertising and
editorial combinations. Lots of advertorials are seen in
magazines, where products are cleverly pushed through
an editorial kind of a format.
The bad news is that online spending accounted for only
5.4 percent of all newspaper ad expenditures in 2006, the
association reported. And print revenue fell 3.7 percent in
2006, to $13.2 billion, from the year before.
There is absolutely no question that the next 10 years are
going to be really bad for the newspaper business. This is
a time of wrenching change and chaos. All of our
assumptions about newspapers are going to be changed.
The format, business model, organization of newspapers
have outlived their usefulness.

3. OPPORTUNITIES -

A booming Indian economy, growing need for content and

government initiatives that have opened up the sector to
foreign investment are driving growth in the print media.
With the literate population on the rise, more people in
rural and urban areas are reading newspapers and
magazines today.

There is more interest in India amongst the global

investor community. This leads to demand for more
content from India. Foreign media too is evincing interest
in investing in Indian publications. And the internet today
offers a new avenue to generate more advertising
revenue.

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Media refers to the means of communication as radio and

television, newspapers and magazines that reach and
influence people widely. Journalism is the occupation of
reporting, writing, editing, photographing, or broadcasting
news or of conducting any news organization as a
business. A journalist is a person who practices the
occupation of Journalism.

The hierarchy for reporters in most of the newspaper

houses is roughly as follows-Trainee, Staff Reporter;
Correspondent, Senior Reporter / Correspondent, Principal
Reporter / Correspondent, Chief Reporter / and Special
Representative /Correspondent.

Different kinds of jobs, on the desk and in the field, are

open in both print and media Journalism. Reporters can
work for either print or electronic media. While the print
has several sub-categories like newspapers, magazines
and news agencies, the latter includes radio and
television.

Poised on a trajectory of growth, the country's print media

is faced with challenges such as rising newsprint costs but
has opportunities in the digital age.

Not only is there opportunity for the Indian print media to

grow but growing consumerism has thrown up
opportunities for special interest magazines.

4. THREATS -

Some of the decline is because newspaper managements

have curtailed promotional distribution or discounted sales to
bulk purchasers who supply the paper free to hotels and
airports. Secondly, the decline in circulation is not necessarily a
reflection of a decline in aggregate readership, since online
readership of newspapers is on the rise.

Online readership of newspapers is rising fast, pointing to a

possible increase in aggregate readership.
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The problem of course is that for the print media industry

looking to keep revenues rising to cover rising costs and more,
a Web presence is still small consolation. Even though some
companies claim significant, even if small, revenues from their
Internet operations, only a small part of that comes from
their strength in the print media.

Advantages and disadvantages of print

media

Newspapers

Newspapers are one of the traditional mediums used by

businesses, both big and small alike, to advertise their
businesses.

Advantages

Allows you to reach a huge number of people in a given

geographic area
You have the flexibility in deciding the ad size and placement
within the newspaper.
Your ad can be as large as necessary to communicate as
much of a story as you care to tell.

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Exposure to your ad is not limited; readers can go back to

your message again and again if so desired.
Free help in creating and producing ad copy is usually
available.
Quick turn-around helps your ad reflect the changing market
conditions. The ad you decide to run today can be in your
customers' hands in one to two days.

Disadvantages

Ad space can be expensive

Your ad has to compete against the clutter of other
advertisers, including the giants ads run by supermarkets and
department stores as well as the ads of your competitors
Poor photo reproduction limits creativity
Newspapers are a price-oriented medium; most ads are for
sales
Expect your ad to have a short shelf life, as newspapers are
usually read once and then discarded.
You may be paying to send your message to a lot of people
who will probably never be in the market to buy from you.
Newspapers are a highly visible medium, so your competitors
can quickly react to your prices
With the increasing popularity of the Internet, newspapers
face declining readership and market penetration. A growing
number of readers now skip the print version of the newspaper
(and hence the print ads) and instead read the online version of
the publication.
Magazines

Magazines are a more focused, albeit more expensive,

alternative to newspaper advertising. This medium allows
you to reach highly targeted audiences.

Advantages

Allows for better targeting of audience, as you can

choose magazine publications that cater to your specific
audience or whose editorial content specializes in topics of
interest to your audience.

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High reader involvement means that more attention will

be paid to your advertisement.

Better quality paper permits better color reproduction

and full-color ads.

The smaller page (generally 8 by 11 inches) permits

even small ads to stand out.

Disadvantages

Long lead times mean that you have to make plans

weeks or months in
advance.

The slower lead time heightens the risk of your ad

getting overtaken by
events.

There is limited flexibility in terms of ad placement and

format.

Space and ad layout costs are higher.

Print" news typically has more information in more detail for

each topic. Also newspapers will do more follow up as a subject
evolves over time, such as the court process while an alleged
murderer is going through a trial . Also newspapers tend to
have strict rules for identifying subjects who provide quote .
Newspapers are a quite formal and use a standardized
language called "AP Style" (Associated Press Style) .

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Newspapers will cover routine municipal matters like school

board and alderman's meeting .

EVOLUTION OF PRINT MEDIA

The oldest mass medium is print media. Human history gives

us a clue that posters, banners and pictures were first used
to convey the messages.

In the 10th century handmade press was first established.

Book printing was started in 15th & 16th century in Europe.

The emergence of Print Media created doubts in the minds of

the rulers and they took it as a threat against their rule. The
rulers presumed that people would become aware of their
rights and they will challenge the authority. So most of the
rulers in Europe took it as a revolt and declared capital
punishment for the persons involved in Mass Media. In 1663,
the last capital punishment was given to a publisher because
he published a book of an anonymous writer. This book
contained the idea that rulers are accountable for their
deeds and decisions to the masses and if any ruler does not
feel himself accountable then masses have the right to
overthrow his rule. This was the last capital punishment that
was awarded in the history of England.

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Print media could not get its full growth till the 18 th century
as illiteracy was the major problem in all the societies and
most of the newspapers were read by the elite class because
state was not responsible for the education of the masses
and elites had a privilege to get private education from the
arranged tutors.

In the sub-continent East India Company started some

papers that were in English language and mostly read by the
employees of the East-India company. In 1757 when East
India Company conquered Bengal, there were one lakh
informal institutions that were either run by Hindu Pandits or
Muslim Ulamas. So publishing papers entirely in English
language means that they ignored the factor of local
educated people. Later on the English papers started to
publish in Madras, Bombay and Calcutta because East India
Company offices were in all these cities. So, it proved that
publish of this paper was entirely for Company employees
and not for the local Indians.

In 1822, first Urdu paper named Jam-e-Jahanuma emerged

and English rulers took it as a threat against them and they
started to think to impose press laws to outclass local
papers. Therefore, in 1823 Press Act came to suppress Urdu
press and it was made compulsory that the name of the
Editor, Publisher and Owner along with the address should be
on the first page of the newspaper So that the government
can recognize the authority of these papers. It was named as
Press & Publication Ordinance (PPO). So, the era before the
division of India was a tough one for the mass
communication as many press owners and editors faced
punishments several times under this ordinance.

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AFFECTS OF MEDIA EVOLUTION

Thesis Statement
From print, broadcast to digital, technology transforms the
media of news reporting, now the general public have faster
and easier accesses to almost any content displayed by word,
image, sound and video. In addition to display methods, the
evolution of news media also affects a great deal on news
reporting particularly with the rise of Internet. The old pattern
of agenda setting, content preference, and audience
engagement has been substantially reshaped in this evolution.

AFFECTS ON:- NEWS REPORTING

Technological change in communication profoundly affects how
news is delivered. From print to digital, media evolution has
facilitated an exponential growth in news patterns and freedom
of our choice. Media, being not mere a carrier of information,
also exerts a subtle influence on the activities and values of
audience. Most importantly, the advent of new media has
redefined the role of journalists. The project provides an
overview of media evolution: from print, broadcast, to digital,
and discuss how each media technology reshape news
reporting and influence the general public.

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Three most important developments in timeline:

Mid-19th to 1990s

The invention of paper and printing facilitated the disruptive

innovation in media history. The transmission of information
went massive and became independent of geography. This was
the point where journalism bred itself yet still in the style of
storytelling.

The adoption of telegraph in journalism encouraged the

booming of news agencies. The high cost of telegram
motivated the shorter style of news reporting and its signal
instability forced reporters to put core message on the top of
every piece and decrease importance of information in
subsequent paragraphs. We called this type of news

reporting inverted pyramid, which was defined as a symbol of

ripeness of journalism.

Broadcast media introduced visual and sound elements into

news reporting, which accomplished diverse forms of
journalism. Visual-audio technology enabled event recurrence
and characterized media with the capability of conveying
underlying messages over pure information data.

The popularization of broadcast media soon made its

domination in media market and generated deep influence on

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the public. Over-exposure to mass media cultivated similar

outlook of world, life, value and moral criteria among the
public. Big Media became the good player of agenda setting, or
even watch dog in countries that have control on news
content. The homogeneity process reinforced the mainstream
and eliminated the dissent. As passive receivers, audience
gradually lose their initiative in expressing opinions, while on
the other hand, the wild spread of information drove their need
in variety and freedom of expression. The dilemma created
tension between news producers and receivers, waiting for a
trigger to rebuild their relationship.

Mid-1990s to 2009
The rise of Internet provided the trigger. The rise with the
internet boom of the mid-1990s reconstructed the media
market. The move to an online format exacerbated trends in
traditional media. Facing a group of active audience, pure
propaganda or any content that doesnt cater their taste would
be selectively eliminated. Old medias made haste to build their
online presence but meanwhile theyve struggled to suppress
the new media from threatening their leading status. New
medias concentrated on competing for emerging market. But
the common goal for old and new media is to making up news
reporting with network attributes: faster, shorter, entertaining,
interactive, and easier to share.

At the same time, as the significant spin-off of new media, BBS,

forum, and blog open the channel for general public; everyone
has been equipped to be a creator and distributor. Professional
journalists are no longer the absolute transmitters, Big Media
lost its power to lead or filter news reporting. Journalism is seen
as more of a technically aided conversation, rather than a top-
down monologue. However, when people are welcoming the
benefit brought by new media, they are also facing the severe
challenge: the credibility of participatory journalism.
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2009 to future

Extended from Blogging, weve witnessed the endless

emergence of We-media (or Self-media, To be double
checked), which refers to those more personal, grassroots,
networking-based media such as Twitter, Facebook, Microblog,
Podcasting, GroupMessage. As our social network expands, the
effect of We-media reaches its geometric growth. Theyve
become the great source of news reporting, and feedback from
these media also dramatically affects journalism. Cases found
within global scope (news of Bin Ladens death, Yao Jiaxins
trial) can illustrate the positive and negative power of We-
media.

IMPACT OF MEDIA EVOLUTION

ON JOURNALISM

Technological change in human communication

profoundly affected journalistic activities. From print to
digital, media evolution has facilitated an exponential
variety in news reporting patterns, including its agenda
setting, content collection, production and distribution.
More substantially, it has redefined the relationship
between journalists and audience, especially after the
advent of digital media.

This paper provides an overview of media evolution

from print, broadcast, to digital, and discusses the
supervening social necessities behind adoption of each
new technology. It emphatically expatiates on how
each media technology has affected traditional
journalistic undertaking and fostered new forces of
journalism: grassroots journalism.

The paper also predicted the future collaboration

between professional and grassroots journalism and

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layouts the framework of a multi-dimensional

convergence of old and digital newsrooms.

ETHICS OF PRINT MEDIA

Print media is most likely what you come in contact

with on a daily basis. It's how you get your information,
and they include everything from newspapers and
magazines to billboards and posters.

Journalism's top priority is to ensure that information

provided is truthful and accurate, that professional
ethics is understood and practiced. This is achieved by
making ethical decisions that apply to the media.

Significance

o Because being a credible source in the world of journalism

is so important, so is ethics. At every college that has a
journalism program you will find at least one course on

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ethics that is required for students to take early in their

undergraduate programs. This shows how huge of a role
ethics plays in the field of journalism.

Even the most well-known journalism organizations

worldwide, such as the Society of Professional Journalists
(SPJ), have thier own ethical codes its members and others
are encouraged to follow. SPJ's Code of Ethics is accessible
through its Web site.

Follow the Code

o The SPJ Code of Ethics consists of four main points,

along the lines of looking for and reporting truth,
decreasing harm, acting on one's own and being
accountable, according to the Web site. Each of these
points have points that provide further explanations
for how to use the Code as a guide for ethical
behavior.

The code, as SPJ states, "is intended not as a set of

"rules," but as a resource for ethical decision-making."
The organization also states that under the First
Amendment---the freedom of speech, religion, the
press, petition and assembly---its code is not and
cannot be legally enforceable. It is merely a resource
for journalists and others to use as they are producing
information for the print media.

Ethical Elements

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o "Media Ethics: Issues and Cases" lists in several

ethical news values believed to be as equally
important as the qualities journalists use most that
define what is newsworthy, such as timeliness and
prominence. On the list is accuracy (combining
correct facts with correct words), reciprocity (the
Golden Rule) and diversity (covering every aspect
of the population fairly).

Combining these ethical elements with the more

familiar elements,TIPCUPS = timeliness, interest.
prominence, conflict, unusualness, proximity,
significance, makes for a more well-rounded and
credible story.

PRINT MEDIA CHARACTERISTICS

Pinted materials newspaper image by Angelika Bentin

from Fotolia.com
Print media is a form of communication that comes in
many different types. Messages can be sent out and
printed on fliers, in newspapers, billboards and magazines.
Once the pieces are printed, they are then distributed to
their proper audience. The communication can be used to
send information on promotions and updates on news or
events.

Production Time

Over the years, print media has become a less attractive

source of information because of the time it takes to

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produce. In order to print materials for distribution, the

layout and copy of the materials need to be written and
thoroughly checked for error before it's sent to the
printers. Once the copies are printed, they are then posted
for mail delivery or dropped off at the newsstands for
purchase. It can take an up to seven business days from
the time the copy is written, until it reaches its audience.
Frequency of Distibution
The frequency of distribution is a key characteristic of
print media. Some publications that contain time-sensitive
information such as newspapers and magazines can be
distributed daily, weekly, monthly, quarterly and even
annually. Other media like newsletters, booklets and
pamphlets can be distributed as needed for individuals to
pick up at their own discretion.
Types

Print media comes in a wide variety of options. The most

commonly circulated forms are newspapers, magazines
and fliers. The content of the pieces vary and are
distributed using different timelines and in different
amounts. The content communicates the news, gossip,
retail sales or whatever message the sender is trying to
convey.

CHALLENGES OF THE PRINT MEDIA

Television and the Internet pose serious challenges to print

media. newspapers image by Christopher Hall from
Fotolia.com

o Conventional wisdom in the media industry holds that

existing, established forms of media adapt to new and
emerging forms. For example, radio adapted to the
emergence of television rather than simply fading away.
The emergence of the Internet and the plethora of
information available, however, have led many to question
the conventional view. Media executives and scholars

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agree that newspapers, magazines and other forms of

print media face serious challenges in terms of readers,
revenue and even their existence.

Declining Readership

o Readership of many forms of print media, especially

newspapers, has been declining for years, and the Internet
may have only accelerated this trend. Further, newspapers
have largely failed to reach the younger, technologically
savvy generations. The Press Council of Australia, in its
2006 report on the State of the News Print Media, reported
that people over the age of 50 comprise nearly half of the
readers of Australia's newspapers. In the United States,
the Pew Research Center for People and the Press, a
nationally known public opinion research firm, reported in
2008 that the Internet surpassed newspapers as a news
source. Television, however, remained the most popular
source of national and world news.

Lost Revenues

o As the print media lose readers, shrinking their

circulation figures, it becomes increasingly difficult for
newspapers, magazines and other print outlets to sell the
advertising space that provides the bulk of their revenues.
Media consultant Jack Myers, writing for the online
Huffington Post, reported that newspaper ad revenues
plunged an estimated 40 percent since 2001, based on
projected revenues for 2010. Further, Myers reported that
magazine advertising revenues fell between 12 and 15
percent in 2008. Even the "Yellow Pages" telephone
directories are not immune from this trend, as Myers
projected declines in their ad revenues, as well.

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Long-Term Survival

o Declining advertising revenues have threatened the

very existence of many print media outlets, especially
newspapers. As revenues fall, many newspapers have
slashed their editorial staffs and shuttered news bureaus.
Some print media outlets have even ceased operations.
The trend may continue, with more newspapers and other
print publications going out of business. The Press Council
of Australia cited a 2006 report by the London-based
magazine "The Economist," which predicted the extinction
of at least some of the United Kingdom's newspapers. The
worrying trends and threats to their viability have many
print media executives scrambling to develop news
business models and methods to adapt to and prosper in
this new media environment. Newspapers have increased
their online presence, according to a survey of news
media consumption by Pew Research; however, growth
online has not offset newspapers' losses in print
readership.

OVERVIEW OF THE TWIN CRISES

The newspaper industry is facing two simultaneous crises

stemming from the decline in newspapers circulation and
advertising revenues and the rise of widely available and free
online news content. The United States suffered the most
severe fall in circulation, and advertising revenues dropped 8.7
percent in the period from March to October 2010. This
reduction in revenues from advertising was further exacerbated
by the financial crisis of 2007-085. The entrance of alternative

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online sources of news also marked a new era of digital

competition. Consequently, one of the principal challenges for
news organizations became the establishment of new,
alternative revenue streams that do not rely solely on the
traditional print model.

points to three important factors that contributed to the twin

crises. Print circulation has been declining for decades, but
consumer behavior began to change most rapidly with the
increasing use of the Internet (see Figure 2). The breadth of
information available online, and the opportunity to personalize
news consumption according to individual interests, coupled
with being able to get news updates several times a day as

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opposed to once in the morning over coffee pushed audiences

online for their news.

This provides a clearer idea of how steep the decline in

circulation for American daily newspapers has been in the past
decades.

A second critical factor is the fact that the majority of online

content is available for free. The sources are innumerable; from
opinion blogs to online only newspapers, such as The Daily, a
newly launched newspaper customized for Apples iPad users.

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News information websites and applications continue to grow

exponentially. The idea of getting news for
free online became even more appealing during the financial
crisis of 2007-8, a period when newspaper circulation in the
United States dropped 30 percent.

Thirdly, changes in consumer behavior were accompanied by

the migration of advertising budgets from the print to the
online realm, albeit at a fraction of the revenues provided from
print advertising sales. Scott Karp, co-founder & CEO of
Publish2, a content distribution platform, refers to this
phenomenon as the 10 percent problem. Taking The New York
Times as an example (prior to the pay wall introduced in March
2011), Karp points out that print circulation is about 10 percent
of total audience reach, while online advertising revenue is
about 10 percent. The result is a nearly perfect inverse
relationship of what online revenues and print advertising
should generate given their respective readership.

The combination of these three factors, and their

consequences, has led to what we now know as the twin
crises. News organizations today are faced with one complex,
central challenge: dealing with declines in print circulation and
advertising revenues, while facing and competing with
increasingly available non-monetized online content.

The twin crises have a range of consequences for the

industry. First, job losses continue to occur and older, more
experienced, journalists that cost more to retain, are becoming
easily dispensable. Second, we have witnessed a decline in
journalistic quality and the rise of down-market or popular
publications. It is interesting to point out that the growing
commercial success of tabloids8 has been linked to the
broadening of the reading public and the inclusion of new,
lower-income audiences.

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Finally, news organizations are turning to more competitive and

qualitative approaches as in the cases of pay wall launching
and further ownership consolidation, with mega industry
players acquiring smaller ones.

However it should be noted that even during this global

economic downturn, newspaper circulation worldwide fell only
slightly9. If we take into account countries like Germany,
Austria and Brazil, it is evident that publications are thriving.
Newspapers circulation in
Brazil has grown steadily since 2004, reaching a record high of
72.5 copies sold daily per 1,000 adults in 200810. German and
Austrian markets have shown strength compared to other
Western markets. In fact, hardly any other market in the world
generates higher incomes from advertising and sales than the
German press11. Similarly, the Austrian newspaper market was
hardly hit by the financial crisis; circulation decreased by only 2
percent from 2007 to 2009.

Figure 4 presents an overview of paid-for daily newspapers

average total daily circulation worldwide, from 2000 to 2008:

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Efforts to close some publications content behind a pay wall,

limiting it to a targeted audience that would be willing to pay a
premium have not always succeeded. Major publications such
as The New York Times and the Greek newspaper
Naftemporiki haven proceeded to placing their online content
behind a pay wall. However, there is no assurance that by
imposing a fixed charge on their services, audiences will follow
and companies will generate desirable revenues. It would take
a niche market to value a rare and specialized product in order
to allow for paid-for content. For instance, the Wall Street
Journal and the Financial Times produce in-depth analysis,
feature reports and commentary by experts and public
intellectuals, targeting a niche audience of business people who
are willing to pay a premium for this unique information. This
content is difficult to find free online, and under these
circumstances interested readers do pay for content.
Nevertheless, successful cases of publications charging for their
online content are still the exception, as the vast majority of
online material is still widely available for free. A full discussion

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of the issues around online monetization can be found in the

next section.

The decline in circulation in some countries resulted in further

declines in advertising revenues. Publications have tried to find
ways to make up for the loss of print editions through
alternative investments, either in the media or other unrelated
fields13, or through the monetization of online content which,
as mentioned, is not always easy or successful. The following
section provides further details on the approaches to
generating revenues from alternative, non-print newspapers,
sources.

REVENUE ALTERNATIVES

As a result of changes in consumer behavior and declines in

revenues from advertising, newspaper-publishing companies,
particularly in developed Western economies, are looking for
alternative sources of revenue. Even in emerging markets like
Brazil, where newspapers circulation grew by 25 percent in the
last five years14 and advertising revenues are still increasing,
companies are seeking to decrease their strong dependence on
print. To deal with this challenge, news organizations are
diversifying their business strategies and moving beyond news
aggregation and distribution; primarily seeking to invest in
other media and non-media businesses and strengthen

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newspapers brand names. The following section uses

branding and business type to differentiate between the sources
of alternative revenue streams.

The Brand Effect

There are various strategies to increase alternative revenue

streams by making use of the newspapers brand name, or
using the Brand Effect. The idea behind the brand effect is
that newspapers develop significant brand loyalty from their
readers and often come to be associated with certain
attributes; reliability being a central one. An example of the
brand effect is the creation of brand families to carry on the
newspapers name to new products. There are two general
ideas behind newspaper companies efforts to stretch the use

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of their brands: brand extension and customer

identification.

The business model of a newspaper is to assemble information,

place it in context and provide readers with in-depth analysis.
Finding new ways to present and sell information using an
already established brand is an alternative revenue stream
being pursued by publications we spoke with. The idea of
brand extension is similar to
product-line extension, defined as the appearance of another
product that a company introduces within the same market
after its existing product. Newspapers are in the information
market and their major products are news and information. The
brand value is an expression of the trustworthiness readers feel
toward the newspaper or the experience of customers
regarding the quality of its information.

Some newspaper companies, including Germanys Frankfurter

Allgemeine Zeitung, offer huge online archives with powerful
search engines behind a paywall. The information is presented
in a differentiated, more detailed way than on its newspaper.
Niche consumers, who seek specific information, like an
academic or a financial analyst, may be more willing to
subscribe than a private consumer who wants simple news
updates. Many other newspapers offer specialized information
with regards to, among other areas, career search, education,
health, real estate and cars. They offer this information through
special theme portals, in a more detailed manner than is
presented in their regular publications.

The Chilean newspaper, El Mercurio, is currently setting up a

second website which is entirely behind a paywall. The content
is specialized and targeted to financiers, lawyers and other
professionals with a specific

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need for niche analysis and information. The information is still

the main product, but it is presented and offered in different
ways to attract new customers and to make old customers start
paying, or spend even more for the brand they are accustomed
to.

Another way of extending the newspapers brand is to use its

name on other product labels (i.e., books or wine), adding value
to that specific product since it is linked to an already
established and trusted brand. Newspapers can offer their
expertise in certain areas, including book reviews and food
sections, and participate in creating revenue streams for book
publishers or wineries based on their recommendations.

Sddeutsche Zeitung, a German national daily newspaper,

created the SZ Edition with famous books and movies that do
not belong to the Blockbuster segment. Every month
Sddeutsche Zeitung recommends news books and movies;
customers can subscribe for the entire year or buy them
separately through the newspapers website. The American
newspaper, Financial Times, and the British The Guardian, use
a similar model to sell reviewed books. The concept also seems
to work well for The New York Times, which has an entire online
store. It also has a food section with a high reputation, and uses
it to generate additional revenue streams by selling wine from
exclusive wineries outside the United States. In 2010, the
Brazilian newspaper A Gazeta, owned by Rede Gazeta,
launched a guide of medical specialties, a better quality
catalog than the yellow pages, according to Director General
Carlos Fernando Monteiro Lindenberg Neto. This has been an
exceptionally important source of revenue for A Gazeta, as over
20 percent of revenues from print products come from the
publicity embedded in these publications.

The second general approach of newspaper companies to make

use of their brand is not directly related to the media business.
Companies organize interaction among people in the form of
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seminars, conventions, debates and workshops. This approach

makes use of newspapers human capital and journalistic
expertise to sell information and train individuals. Among many
examples are: Greeces Naftemporiki, which holds a 35 percent
share in a company that organizes medical conventions; HSM
Education, a So Paulo based partnership of Grupo RBS and BR
Investments, which offers executive training, editing courses
and consultancy, and; Brazils media conglomerate Rede
Gazeta, which promotes educational events and seminars
debating political issues.

There are also approaches that are not related to the media
business, which use the brand but not the human capital or
expertise of newspaper companies. Organizations try to use the
brand loyalty established with their customers, in combination
with their brand image, to sell merchandise. Switzerlands Neue
Zricher Zeitung sells bicycle bags and The New York Times has
an entire webstore selling, among other products, coffee mugs
and pencils; many German newspapers also sell watches. Some
Brazilian publications, including Noticia Agora, invest in
embedding coupons, raffles and other promotions in their
online and print product.

Even though this section presents different ways through which

news companies can diversify their revenue streams and
generate new sources of revenue, there is no silver bullet to
make up for the steep declines in advertising revenues.

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Using and Acquiring Assets other than the

Brand

There are two business models of strategic importance that do

not use directly newspapers brand name. The first approach is
to acquire or create new assets, including websites, TV stations,
or radio stations. The second approach is to use existing assets
more efficiently.

The first model is specifically related to digitization. On the one

hand the digitization of media has become a major problem for
print newspapers, but on the other hand it offers important
revenue potential and is an investment area of strategic
importance for media companies. According to Christoph
Keese, President of Public Affairs of Germanys
Axel Springer AG, the German digital sector has three
distribution channels, which are important for newspapers:
Internet, TV, and radio. Many newspaper companies around the
world are invested in all three realms. For example, Grupo RBS,
one of the leading media groups in Brazil, headquartered in the
southern city of Porto Alegre, owns 18 TV stations, two
community TV stations, one rural channel, 25 radio stations,
eight newspapers, four Internet portals and other media
businesses.

There are three generic models on how to monetize (charge

for) online content. The first model is based on subscriptions.
The customer consumes certain content for a certain period of
time yearly, monthly, weekly or daily after paying for access
to the content behind a paywall. This model is also called
market places. Many newspaper companies, like The
Guardian or Axel Springer AG, started online-dating websites
(parship.de) or job search (stepstone.com) websites.

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Another model is based on commissions. The commission has

to be paid, if an intermediation between a customer and the
supplier takes place. The newspaper company offers a
performance-based marketing platform, which can be
subsumed under ecommerce.
The website gets a fixed amount or a percentage of the
revenue of the arranged business from the provider of the
goods and services offered on the website. A very successful
example for such a market place in Germany is Springers
myhammer.de, where craftsmen can offer their services.

The third and most important model is based on advertising

revenues. In 2011, the global market for Internet advertising
was projected to reach U$71 billion17. Idate, a consulting group
specialized in media, estimated an average growth for online
advertising of 15.5 percent between 2010 to

2012; the total advertising market is predicted to increase by

only 4 percent during the same period.

The idea of online advertising is similar to that of print

advertising. Websites offer space where their advertisers can
put their ads to inform potential customers about their
products19. However the Internet offers many advantages in
comparison to newspapers, because Googles technologies, e.g.
adsense and adword, make it possible to tailor ads for specific
customers and for specific regions of the world. It becomes
easier to target specific customers online, and advertisers can
reasonably expect their ads to be more
effective20. Newspaper companies can generate revenue
streams from online advertising by creating content portals;
for example Greeces IMAKO Group offers a travel website. The
customers, in this case Greek hotels, can place their ads
specifically next to the search results of the customer who uses
the IMAKO Groups website to book a holiday trip in Greece.

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Another interesting approach to increase revenues from online

advertising is to create social networks with a distinct local
audience, making it easier for advertisers to target customers
interested in local products. For instance, Germanys Neue
Osnabrcker
Zeitung offers a Facebook-like website for people in its
circulation area. This is highly attractive to smaller local
advertisers because the audience is very distinct and they can
tailor their ads to people in this region. This results in more
effective advertising
campaigns.

Television is the second major digital channel newspaper

companies invest in. Many newspaper companies started to
invest in TV in the last decade to acquire expertise regarding
news production and access to its advertising revenues. For
example, PRISA, the leading Spanish media company, acquired
95 percent of the leading Spanish TV company, Sogecable, in
2008 and became a major player the Spanish pay and free-
toview TV market.

The budgets for TV advertising are much bigger than those for
other types of media, making TV a very attractive alternative
source of revenue for newspapers. Ioannis Liotos, Commercial
Director of Greeces Naftemporiki, says, Many businesses have
turned to television, even more so since TV stations decreased
their prices in advertising thus making them a lot more
competitive. Global revenue streams from TV advertising are
expected to reach U$169 billion, 35.5 percent of the global
advertising market in 201123.
Revenue streams from TV advertising are predicted to increase
by 3 percent per year on average in the period from 2010 to
2012; this is lower than the 4 percent increase expected for the
total advertising market for the same period24. These numbers
seem low in contrast to the growth of online advertising
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revenues of 15.5 percent. However it is important to note that

TV advertising is a mature market, which, in 2011, is 2.5 times
the market for Internet advertising.

For instance, Brazil is one of the ten largest advertising markets

in the world, with expenditure highly concentrated in broadcast
television in the last decade TV networks have absorbed 59
percent of all advertising revenues in the country while other
traditional media such as newspapers, magazines and radios,
had their share reduced, generating significant constraints for
their future growth. The country is a clear example where
broadcast television remains the dominant medium contrary
to trends in parts of the post-industrial world. Data from the
National Association of Newspapers show that in 2009, 14.1
percent of advertising investment went to newspapers (60.9
percent to television) compared with 21.7 percent in 2001 (57.8
percent to television)25. Under this scenario, many newspaper
companies are being pushed to increase their scope, seeking to
become media conglomerates and attempting to access other,
non-print, advertising markets.

The main problem with merging newspaper companies and TV

stations is regulation. Cartel authorities have to prevent the
abuse of market power accumulated within single companies.
This is a particularly sensitive issue for news companies in
established democracies. The news industry is regarded as the
fourth estate and therefore it has to be

supervised very carefully. The investment in TV stations has to

be differentiated from the investment in TV content production
companies. The business of the latter is very diverse and
covers everything from entertainment, e.g. TV shows and daily
soaps, to news. Less problematic is the investment in TV
content production companies, if they focus on content for
entertainment and not news. The cross-ownership of
newspaper companies and TV stations can become problematic
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if the merged company has a significant share of the news

market. This critical level of market share has to be defined by
the cartel authorities. For instance, Springer in Germany could
keep its shares of its
TV content production company Schwartzkopf, but it had to sell
its shares of the TV station Pro7-Sat, a private TV station in
Germany, in 200626. In contrast, the takeover of
Sogecable by PRISA was approved by the Spanish stock market
regulator CNMV, because PRISA only has minority stakes in the
top free-to-air TV operators in Spain.

The third distribution channel is radio, for which the major

source of revenue is also advertising. In 2011 the global radio
advertising budget is expected to reach U$30 billion, or 6.5
percent of total global expenditures on advertising. In the
period between 2010 and 2012 global advertising revenues are
predicted to grow at a rate of only 1.9 percent. Radio stations
have suffered in recent years, especially in the United States,
the most important radio market in the world with 50 percent
global market share for advertising28. It has become
increasingly difficult for radio stations to gather listeners for
advertising-based radio programming because of the rise in
online information bases29. In contrast to the small growth rate
of radio advertising predicted for 2012, online advertising is
expected to increase by 15.5 percent in the 2010 to 2012
period.

The second approach to generate alternative revenue streams,

while not making direct use of newspapers brand name, is to
use existing assets more efficiently. Newspapers with big
printing capacities, like Greeces Naftemporiki, can offer
competitors with smaller circulation to do the printing in their
printing facilities. Printing and distribution are no

competitive edges of newspaper companies. Hence, this

scenario is a win-win situation, decreasing costs for all
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participants. The idea is that larger capacities realize

economies of scale. This might even lead to mergers of printing
facilities like Prinovis, a joint venture of Germanys Bertelsmann
Arvato and the publishing companies Axel Springer
and Gruner & Jahr.

BIBLIOGRAPHY
www.google.com

www.naukrihub.com

www.exchange4media.com
www.tamindia.com
www.agencyfaqs.com
www.indiantelevision.com

www.yahoo.com

http://www.niemanlab.org

http://structureofnews.wordpress.com/

http://www.economist.com/node/17853358

http://www.iab.net/
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http://www.lrb.co.uk/v32/n24/john-lanchester/let-us-pay

http://www.journalism.org/analysis_report/how_news_happens

http://stateofthemedia.org/

http://people-press.org/report/652/

http://www.fcc.gov/ownership/studies.html

http://www.warc.com/

http://www.wan-press.org/article18612.html

http://www.wan-press.org

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