News International Competition
Now Viewing News International's competition in: Newspapers and News Organizations (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
What is the average daily (or weekly) circulation? Sunday circulation? - Most daily newspapers have circulation less than 50,000. Sunday circulation is usually larger.
Has circulation been rising or falling? - For many papers, circulation has been flat in recent years.
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 $120,000.
Full Industry Overview For Newspapers and News Organizations
Business Challenges
CRITICAL ISSUES
Dependence on Ad Revenue - Almost three-quarters of newspaper revenue come from advertising, which typically falls during business slowdown. About 60 percent of newspaper ad revenue is from local and national retailers, including clothing, shoe, and grocery stores; car dealers; and travel agencies. Newspapers base much of their ad rates on circulation rates.
Volatile Raw Material Prices - Newsprint and ink costs dramatically impact newspaper publishers – newsprint is the second-largest cost after personnel and fluctuates greatly. Prices for newsprint routinely vary 50 percent or more within a year, and have sometimes increased 100 percent. Newspaper publishers have fewer sources from which to buy paper, due to supplier consolidation in the paper industry. A large share of the US market is served by Canadian producers.
Industries Where News International Competes
- Media
- Publishing
- Newspaper Publishing(primary)
- Internet Content Providers
- Publishing
