Newspaper industry

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Newspaper Industry Name of Group : Andhika Kurniawan Pontoh Dani Vanadi Junius Dwihartadi Kertiyasa Hendriks Syelviyona Erlinda

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Transcript of Newspaper industry

Page 1: Newspaper industry

Newspaper IndustryName of Group :

Andhika Kurniawan

PontohDani Vanadi

JuniusDwihartadi KertiyasaHendriks

Syelviyona Erlinda

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An Overview of the ModernNewspaper Industry

Perhaps the broadest way to think about newspapers in the United States is to divide

them into :A. dailies newspapers that are published at least

five times a weekB. weeklies newspapers that are published once

a week

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dailies newspapers

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Table 8.3Media Today page 314

Table 8.4Media Today page 314

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A cause of the circulation drop of a few big-city papers

• free newspapers, in particular a daily called Metro. Owned by a Swedish publisher, Metro now publishes in 100 cities in 20 countries in Europe, Asia, and North and South America. It claims a reach of 22.8 million readers daily.

• high-speed (“broadband”) Internet connections

• Daily Newspaper Chains It’s important to note that with the exception of the free papers daily newspapers tend not to have competition from other dailies

• Moreover, most of the dailies in the United States are controlled by a few large firms. In 2000, for example, newspaper chains (or groups) controlled about 1,083 dailies; only about 400 were independent.

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• the number of independent dailies has certainly not grown

• The logic of chain ownership has traditionally been quite strong. A daily newspaper that was the only one in its area could pretty well dictate prices to local advertisers—car dealers, department stores, movie theaters—that wanted to reach high percentages of the population on a regular basis. Consequently, daily

• newspapers’ margins of profit have been quite high, far higher than most other industries.

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in recent years, newspaper executives and their investors have begun to worry that this logic no longer holds. Losses in readership, and increased competition for :

- local advertising by the Internet -free newspapers -local media have led investors to

downgrade the -monetary value of some of the biggest newspaper companies

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• Times newspaper put it in 2007, “most newspaper chains are still wildly profitable by conventional measures—generating pre-tax margins of 20 percent or more

• executives are finding it difficult to maintain those levels and deliver the earnings growth that Wall Street demands. With revenues stagnant, most have resorted to cost-cutting to appease shareholders. Moreover, declining margins of profit and concerns for the long-term future of the business have led some of those firms to sell out to others.

• Example : Tribune Corporation, Knight Ridder, and Dow Jones

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Financing the newspaper business

No matter what their size, topic, or language, newspapers need

to make money. They can generate revenues in two ways:

from advertising or from circulation.

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Advertising

• Retail advertising is carried out by establishments located in the same geographic area as the newspaper in which the ad is placed. Retail advertising is the most important of the four main areas of newspaper advertising.

• Classified Advertising The second most lucrative type of newspaper advertisement is the classified ad, which makes up near 40 percent of the revenue pie. Classified ads are short announcements for products or services and the are the second most lucrative.

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• National ads are advertisements placed by large national and multinational firms that do business in a newspaper’s geographic area.

• Freestanding Inserts Inserts, often called freestanding inserts (FSIs), are preprinted sheets that advertise particular products, services, or retailers. FSIs are not printed as part of the paper itself, but are inserted into the paper after the printing process has been completed.

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Circulation Challenges Facing Newspapers

• During the 1990s and into the twenty-first century, the rate at which daily newspapers died moderated. The circulation issue that now concerns many daily newspaper executives is whether young people will stop reading papers because they are so heavily involved in electronic media. Research in 2005 revealed that 66 percent of people 55 years and older read daily newspapers on weekdays and Saturday; 72 percent read the Sunday paper. When it came to 18–24-year-olds, though, only 38 percent were weekday readers, and only 46 percent read the sunday paper

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Production in the newspaper industry.

In this parts we will focus on two general areas. One involves the creation of the content that goes into the papers, and the other involves the actual technical process of putting together a newspaper.

The creation of a newspaper’s content differs between dailies and weeklies, and between newspapers with large circulations and those with small ones.

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The newspaper’s publisher is in charge of the entire company’s operation, which includes financial issues (getting advertising, increasing circulation), production issues, and editorial issues. Editorial in this case has two meanings. In a narrow sense, it means the creation of opinion pieces by the firm’s editorial writers. More broadly, it means all non-advertising matter in the paper

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Distribution and the newspaper industry.

Distribution industry means bringing the finished issue to the point of exhibition.Newspaper can be distributing to :• A person’s house•A newsstand•A supermarket•Vending machine•Computer or mobile house

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Distribution and the Newspaper industry

• Decision to emphasize certain areas and not others can affect the makeup of the newspaper themselve ( publisher harus mendorong editor untuk mengembangkan fitur2, dan mencapai atau mendapatkan berita yang menarik bagi target audience)

• Major daily newspaper have been concentrating their circulation efforts on the suburbs as opposed to the core cities that used to be their audience base

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Exhibition in the newspaper industry.

The digital Inquirer and Daily News do share areas on one distribution site, http://www.philly.com. Like other online news outlets, it is distributed through exhibitors—typically cable and telephone companies—to computers, smart phones and other devices wherever users can and want to pick it up. In the physical world, the exhibition point of a newspaper is more specific and depends upon its type.

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Achieving Total Market Coverage

Historically, paid-subscription daily or weekly newspapers could guarantee to advertisers that their ads would reach virtually every home in the newspaper’s coverage area. However, because of the nationwide decrease in the percentage of homes receiving newspapers, the major dailies or weeklies in a region can no longer automatically provide advertisers with what people in the industry call total market coverage (TMC).

Other competitors offering TMC to advertisers are direct mail firms, marriage mail outfits.

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New Exhibition Strategies for Newspapers

- Retailers have found that marriage mail and shoppers are efficient ways to get their FSIs out to entire neighborhoods when local newspapers cannot offer that kind of service or when they are more expensive. As you can imagine, marriage mail firms and shoppers have siphoned away newspapers’ coveted supermarket advertising and FSIs. - Some newspapers have started their own shoppers and marriage mail operations or have bought their competitors. Other papers have supplemented their regular paid circulation to certain key areas with a weekly TMC circulation.

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A key industry issue: building readership.

• must adapt their organizations to new digital media :–analog strategies , which involve

the physical paper–Digital strategies , internet etc

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analog strategies

• More Attractive and Colorful Layouts• Reader friendly : include fewer stories on the front

page, more liberal use of white space, quick news summaries and notes about “what’s inside,” and more use of charts and pictures to convey information.

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Sections Designed to Attract Crucial Audiences1. find out what those target audiences want,

publishers employ research firms to conduct surveys and focus groups

2. find out what kinds of things people want to read about and to give them what they want

3. news that is clearly relevant to their want .Example : business section, created sections on

science

Emphasizing Localism reporting on the communities/ local

people in which their readers live

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Digital strategies

1. keep the sites interesting so that readers keep coming back and new readers visit

2. Sections Designed

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3. serve ads efficiently to people based on both their registration material and their activities online (for example, their interest in the automotive section or the style section)

4. make and keep their sites attractive to readers with audiovisual, podcast and etc

5. formatted for the user’s cellular phone, “smart” device or personal digital assistant

6. must balance their level of localism with the advertising that it brings in.

Ex: digital report about community event with adv about their community

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