Newspaper Publishers
Competitive Landscape
The health of the economy drives both advertising and readership. The profitability of individual companies depends on marketing expertise, as most costs are fixed. Large companies benefit from economies of scale in sharing resources and by providing a range of outlets for advertisers. Small publishers can compete successfully by serving smaller markets. The industry is fairly labor-intensive: average annual revenue per employee is about $130,000.
Opportunities
New Revenue Streams - To offset financial concerns, publishers now provide contract publishing services for other companies, rework classified ad space, and create new publications. A down economy often...
Business Challenges
Dependence on Ad Revenue - Almost three-quarters of newspaper revenue comes from advertising, which typically falls during business slowdowns. Likewise, 75 percent of newspaper ad revenue is from local and...