Ricoh Whitepaper - Newspapers and Magazines the Outlook for Traditional Print Media NA and Europe_t_57-82018

8/10/2019 Ricoh Whitepaper - Newspapers and Magazines the Outlook for Traditional Print Media NA and Europe_t_57-82018

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Newspapers & Magazines

The Outlook for Traditional Print Media

in North America & Europe

December 2014

Sponsored by:


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Introduction3

Newspapers4

Magazines 8

Forecasts2

CONTENTS

2

Newspapers & Magazines: The Outlook in North America & Europe


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M

agazines and newspapers derive revenue from

paid subscriptions as well as from advertising

revenue; they have suffered downturns in

both instances. Magazines have faced multiple head-winds in recent years, beginning with unprecedented

postage increases, and follwed by the recent economic

downturn. As a result periodical volume has declined,

and ad page revenue has suffered.

Unlike magazines, newspapers faced serious challenges

from online competition for lucrative classified

advertising well before the recession, and both

subscription and advertising revenue has spiraled

downward in most developed countries.

Despite these challenges magazines and newspapers are

immensely important media for brand building and

news dissemination; magazine circulation has stabilised

in recent years, and newspaper circulation continues to

grow in developing countries.

INTRODUCTION

Newspapers & Magazines: The Outlook in North America and Europe3

Publishers are beginning to explore new models for

traditonal print media in a multichannel world. The

advent of high-speed inkjet printing, in particular, has

opened new doors to a higher degree of participationfor digital printing.

The purpose of this whitepaper is to examine the current

and future state of magazine and newspapers in North

America and Western Europe, and the use of digital

printing for the production or enhancement of these

products.

Magazines and newspapers are well-established and widely read the world over, but

like other print media, face serious challenges from online and mobile media. Digital

printing has thus far played a marginal role in production, but this is beginning to

change as publishers explore new ways to inject life into their printed products.

Consumer trust in magazines, newspapers,

& other media among U.S. respondents

(Source: Association of Magazine Media, Nielsen)

Still Trusted . . .


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Although media coverage of the newspapermarket in recent years has been pessimistic, a

growing market in developing countries is

mitigating declines in North America and Western

Europe. The World Association of Newspapers and

News Publishers (WAN-IFRA) estimates that global news-

paper circulation increased by 2% in 2013; worldwide

newspaper advertising revenues dropped by 6%.

The story is quite different in the U.S. and Western

Europe, where circulation and advertising revenue have

been in decline for a number of years. Newspaper

circulation declined by 5.3% in North America in 2013

compared to the year

prior, and by 5.2% in

Western Europe.

Circulation was down

by 10.3% in North

America from 2008 to

2013, and by 23.0% in

Western Europe.

Newspaper advertising

worldwide hasdropped 13% since

2008, with North

America accounting

for nearly three-

quarters of the decline.

In 2013 North

American advertising

revenues were down

by 8.7%, while

Western Europe

experienced a 8.2%

decline.

Newspaper readership has declined in recent years indeveloped countries in the face of increasing competi-

tion from computers, tablets, and smart phones as

sources of news and entertainment. In the U.S. reader-

ship has declined regularly across all age categories, with

the greatest loss among younger adults.

Digital media has also been largely responsible for

declines in newspaper ad revenues. According to the

Newspaper Association of America, from 2007 to 2012,

total newspaper advertising revenue in the U.S. declined

by 13.2% annually. Print ad revenue declined 14.8% per

year while digital ad revenue grew 1.2% per year.

The 2013 World Press

Trends survey

commissioned by

WAN-IFRA finds

increasing audience

engagement on

digital platforms as

the biggest challenge

faced by newspaper

publishers. Althougha majority of the

digital population

visits newspaper

websites, newspapers

represent a small

portion of total

internet consumption

7% of visits, 1.3% of

total time spent, and

0.9% of page visits.

NEWSPAPERS

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Newspaper Circulation & Advertising

Source: World Press Trends, 2013

Average daily newspaper circulation

worldwide was 522 million copies

in 2012

North America Western Europe


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THE STAYING POWER OF PRINTAlthough newspaper publishers have seen key sourcesof revenue such as classified advertising flee to online

media, printed newspapers still remain a valued media. A

study conducted by the Newspaper Association of

America in 2012 found that consumers believe print is

more satisfactory for advertising content than digital

platforms.

According to a recent survey conducted among

newspaper publishers by News & Tech, the vast majority

(94%) of the respondents view print as the core of their

newspaper brand. Nearly two-thirds (65%) indicate that

print accounts for more than 70% of their newspaper

business, and 27% say it accounts for more that 85%.

More than half (56%) of the survey respondents indicate

that promotion of print through in-house and other adcampaigns is one of the top tactics for keeping their

brand strong.

Publishers have adjusted their printing strategies in a

number of ways in response to declining circulation and

revenue.

Many newspapers now either outsource the

production of their newspapers, consolidate the

production to one location, or move production to

centralized hubs based on geography Publishers have reduced investments in offset presses

and have instead focused on retrofits and upgrades

to existing production lines

In recent years many high-profile publishers have

reduced the format size of their newspapers in order

to reduce cost

DIGITAL PRINTINGDigital printing has been used for over a decade fornewspaper production but is still in an emerging stage o

adoption. Early efforts used digital printing to produce

newpapers on demand near end-consumer locations

such as airports, resorts, and hotels.

North America lags behind the rest of the world

in using digital printing in newspaper produc-

tion. Elsewhere, printers and distributors in

Europe, Latin America, the Middle East, and Asia

are producing international and local news-

papers on demand in a distributed manner on

inkjet presses.

In addition, large European and Asian

newspapers have installed hybrid solutions which

combine offset presses and inkjet print modules to

produce customised and personalised newspapers, and

to link printed editions to online web sites.

Improvements in digital production equipment have

been key to opening the door to short-run, distributed,

and personalised newspaper production. Vendors of

toner-based digital equipment have introduced

enhancements in the areas of speed and throughput,

TCO, print quality, colour management, paper handling,

and format sizes to their full-colour digital presses.

The most important developments for the use of digital

printing in the newspaper market have been with inkjet

systems, which are faster and feature higher capacity,

larger format, better quality, and lower TCO. These

developments have been accompanied by the intro-

duction of very high-speed and high-quality inkjetmodules which can be mounted on offset presses and

finishing equipment.

NEWSPAPERS


Compared to computers, smart phones, and tablets,

consumers find print a more relaxing way to read

newspapers; 44% of consumers say printed newspapers

have useful advertising, compared to computer (20%),smart phone (17%), and tablet (27%) editions.

Newspaper Association of America, 2012


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NEWSPAPERS

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Distributed Newspaper PrintingNumerous companies around the world are printing newspapers closer to

the final point of destination using inkjet presses. RotoCean, located on the

French island of La Reunion east of Africa, produces short runs of national

and international newspapers locally using a high-speed inkjet press with in-

line finishing. In England Stroma produces international titles. Atlas Printing

Press (pictured below) in Dubai prints international daily newspapers on a

Screen Truepress Jet520 inkjet press for readers in the United Arab Emirates

(UAE) and travellers flying out of the city.

Source: Dainippon Screen


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NEWSPAPERS


Personalised NewspapersSymeta, the in-house in-plant printing operation of Colruyt Group, a large

grocery retailer in Belgium, has produced highly personalised full-colour

holiday newspapers for Kazou, the youth department of the health

insurance organization CM. In 2013 Kazou and Symeta presented all the

youth camps and destinations in a holiday newspaper with customized

content. Youth who went on tour with Kazou the previous year were

presented pictures of that holiday on the cover of the paper. The papers

featured a highly personalised front page printed on an inkjet press and three

segmented offset-printed sections..

Source: Symeta and CM


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Printed magazines are widely read. According tothe Association of Magazine Media (MPA), 96% of

adults under the age of 25 read magazines. MPA

estimates that the top 25 magazines reach more adults

and teens than the top 25 regularly scheduled prime-

time television shows

Magazines appeal to a wide spectrum of age groups,

with magazine readers generally reflecting the median

age of the population. Readers spend an average of 41

minutes per issue, and tend to

trust advertisements in maga-

zines. These characteristics are

appealing to marketers since

magazines deliver strong

ad recall.

Despite their resilience, printed

magazines have been challenged

by competition from electronic

media for consumer attention and

ad dollars. Some categories of

magazines such as mass market

news magazines have beenimpacted dramatically.

PricewaterhouseCoopers (PwC)

estimates that global consumer

magazine revenue declined by

nearly 3% annually from 2008 to

2012. It expects modest growth of

less than 1% from 2012 to 2017.

The top ten global markets in

2012 accounted for more than

three-quarters (77%) of consumer

magazine revenues, but only

three markets among the ten

were growing (China, Brazil, and

Canada).

LEADING TRENDSTitles Up, Circulation DownIn developing countriesoverall magazine circulation has declined. In 2012 total

U.S. circulation of 311.7 million magazines was flat, but

since 2003 circulation has dropped by about 12%.

Although circulation is flat or slightly declining, the

number of individual magazine titles has grown.

Newsstand Sales SufferMagazines are circulated at

retail outlets and by subscription. Publishers typically

offer deep discounts for sub-

scriptions since retail distribution

is inefficient and costly. Even so,

single-issue sales can account for

as much as one-quarter of

circulation revenue. Single-issue

sales are declining, however;

2012 marked five straight years

of decline for single-copy

magazine sales in the U.S.

Ad Pages Contractdeclines in

circulation and competition from

digital advertising have led to adecrease in advertising revenue

for magazine publishers. Since

2007 total ad pages in the U.S.

have dropped by 8.2%.

Cross-MediaAccording to The

Association of Magazine Media,

a high percentage of magazine

readers are also internet users

and have made purchases

online; in addition magazineadvertising triggers the highest

percentage of online searches

among all media, so cross-media

opportunities abound.

MAGAZINES

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Source: The Economist


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MAGAZINES


Newsstand Circulation

Magazine Ad Pages

Source: Alliance for Audited Media

Source: Publishers Information Bureau, Association of Magazine Media


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DIGITAL PRINTING OPPORTUNITIESMagazines are increasingly read across multiple formats,including online, tablets, and smartphones, but printing

remains the most common delivery vehicle. According to

MPA, over 90% of consumers read magazines in print.

While print remains the dominant format, run lengths

are decreasing.

Although the number of

consumer magazine

titles held steady

between 2008 and

2012, circulation has

been flat or declining in developed countries. More than

80% of U.S. magazines have circulations of less than one

million, and they account for about 31% of total

circulation.

Despite declining print runs, most magazines still fall

outside the cost, quality, and/or throughput parameters

of digital presses. Even so, opportunites are available for

toner and inkjet printing systems in areas such as

distributed print, personalisation and customisation,

wraps and inserts, self-publishing, and branded editions.

In 2011 issues of Wired UKwith personalised covers

were sent to a select few readers to highlight privacy

concerns. In personalising the covers Wiredused infor-

mation from a variety of sources including social

networks; information included what readers were

buying and selling on eBay, videos posted online by

their children, and property profits. The covers were

personalised using toner-based digital presses.

Onserts are personalised and customised digitallyprinted advertisements and messages appearing on

mass produced magazine covers and pages. Inserts are

digitally printed signatures containing uniquedemographic and personalised data which are bound

into magazines which are otherwise produced by

conventional means.

Onserts and inserts produced with digital inkjet presses

have been used by publications such as Harpers Bazaar,

Cosmopolitan, Esquire,

Good Housekeeping,

Popular Mechanics,

Redbook, and

Womans Day.

Digital printing has also created magazine opportunites

for self-publishing and corporate branding. In

November 2012 Blurb, which provides a service for

creating, printing, and independently publishing books,

announced it would also support magazine publishing.

Blurbs offering initially targets businesses, creative

professionals, and photographers. The digitally printed

magazines are offered in 8.5 x 11 format with perfect

binding and three different types of covers.

Ethias is a large Belgian insurance company with more

than one million clients and an 8.4% share of the market;

each month Ethias signs on 2,000 new clients. In order

to solidify the consumers choice of Ethias, introduce

new clients to local offices, and up-sell products, Ethias

sends each new client a personalised welcome

magazine. The cover features the clients first name, and

no fewer than eleven different full-colour variations.

Ethias also varies the internal content of the magazine,

providing advertorials tailored to the client and

personalised photos of local offices and employees thatwill be available to speak to the client.

MAGAZINES


In 2012 digital editions of magazines in the U.S.

accounted for only about 2% of sales.


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MAGAZINES

Newspapers & Magazines: The Outlook in North America and Europe

According to Ethias, 54% of clients receiving its

personalised welcome magazine indicated they

will contact a sales office, new customers

requesting additional quotes increased from

8.6% to 20%, and additional policy sales

increased from 1.4% to 4.7% of new clients.

Source: Symeta & Ethias

Distributed Magazine Printing

The Meganews kioskan unmanned magazine and newspaper vending machine with

internet access that prints periodicals on demandwas launched in Stockholm in 2013

It uses a 75-ppm Ricoh C751 colour print engine to produce a magazine in about two

minutes after a title has been selected. When it was launched in June 2013 following six

months of testing at hotels, supermarkets, and airports, the kiosk offered about 200magazines and newspapers through Meganews partnerships with leading Swedish

publishers. According to Meganews, the kiosk reduces publishers costs for distribution

and logistics and is environmentally friendly.


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NEWSPAPERS & MAGAZINES

2


Worldwide Digitally Printed Newspaper Pages

Source: INTERQUEST

Magazine Production by Region, 2013

Source: INTERQUEST


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Cover art: 2009 newsstand from Frankfurt am Main Germany, Wikimedia Commons

2014 INTERQUEST, Ltd.

About the sponsor

Ricoh provides technology and services that can help organisations worldwide to optimise business document processes.

Offerings include managed document services, production printing, office solutions and IT services.

www.ricoh-europe.com/printandbeyond

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Ricoh Whitepaper - Newspapers and Magazines the Outlook for Traditional Print Media NA and Europe_t_57-82018