Print Media

Final Report on:

Print Media(Past Present

& Future Scenario)

Submitted to:- Submitted by:-

Mr. Amit Joshi Varnita Kaushik
B.B.A 2nd Yr.
Enroll: 1002C00022

Print Media Page 1

 Print Media

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.

Print Media Page 2

 Print Media

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

 BIBLIOGRAPHY

Print Media Page 3

 Print Media

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 1970’s . 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.

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 official 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

Print Media Page 4

 Print Media

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 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.

Print Media Page 5

 Print Media

AN OVERVIEW OF THE TERM MEDIA

‘The Media’ refers to the different channels we use to communicate

information in the e v er y da 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 di u m (o f co mm 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
• 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.

Print Media Page 6

 Print Media

FORMS OF MEDIA

Electronic media and print media include:

• B r o a d ca s ti ng , i n t h e n a r r o w s ens e, f o r r a di o a n d t el ev i s i o n.

• V a r i o us t y pes o f di s cs o r ta pe. I n t h e 2 0t h ce n tu r y , t h es e
w e r e ma i n l y us ed f o r music. Video and computer uses followed.

• F i l m, mo s t o f t en u s e d f o r en t er ta i n m e nt , b u t a l s o f o r
d o cu m e nt a r i es .

• I n te r n et , w hi c h h a s ma ny us es a n d pr es e nts bo th
o p po r t u ni ti es a nd c h a l l e ng es .
Blogs are unique to the Internet.
• P u bl i s h i n g , i n th e na r r o w s e ns e, m e a n i n g o n p a pe r , ma i n l y
v i a bo o ks , m a g a zi n es , and newspapers.

Print Media Page 7

 Print Media

FUTURE FORECASTING OF PRINT MEDIA

1. Print media has scope in digital age:

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

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.

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 flourish. Players will work towards offering niche
products, he said. However, newsprint price, which is on an u p w a r d tr e n d ,
i s cr 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 ew s pr i n t a r e co ns um 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 redefine content. "Never take a
reader for granted”. It is a challenge to retain readers.

Print Media Page 8

 Print Media

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 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 a
nd 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.

Print Media Page 9

 Print Media

3. Present and future of the Indian Magazine Industry

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 t he areas of li censing and syndi cation f or
print media have benefit ed 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;

Print Media Page 10

 Print Media

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

Print Media Page 11

 Print Media

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 -

• 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.

Print Media Page 12

 Print Media

• 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.

 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

Print Media Page 13

 Print Media

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.

• 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.

Print Media Page 14

 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.
• 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

Print Media Page 15

 Print Media

• 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.

• 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 ½ 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 Media Page 16

 Print Media

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) . 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

Print Media Page 17

 Print Media

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.

 Print media could not get its full growth till the 18th 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.

Print Media Page 18

 Print Media

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.

Print Media Page 19

 Print Media

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 the public. Over-exposure to mass
media cultivated similar outlook of world, life, value and moral criteria among

Print Media Page 20

 Print Media

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 doesn’t cater their taste would be
selectively eliminated. Old media’s made haste to build their online presence
but meanwhile they’ve struggled to suppress the new media from threatening
their leading status. New media’s 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.

2009 to future

Extended from Blogging, we’ve 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
Print Media Page 21
 Print Media

effect of “We-media” reaches its geometric growth. They’ve become the great
source of news reporting, and feedback from these media also dramatically
affects journalism. Cases found within global scope (news of Bin Laden’s death,
Yao Jiaxin’s 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 layouts the framework of
a multi-dimensional convergence of old and digital newsrooms.

Print Media Page 22

 Print Media

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 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.

Print Media Page 23

 Print Media

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
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,

Print Media Page 24

 Print Media

unusualness, proximity, significance, makes for a more well-

rounded and credible story.

PRINT MEDIA CHARACTERISTICS

Pinted materials
 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 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.

Print Media Page 25

 Print Media

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.

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 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

Print Media Page 26

 Print Media

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.

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

Print Media Page 27

 Print Media

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 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.

Print Media Page 28

 Print Media

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 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.

Print Media Page 29

 Print Media

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 Apple’s iPad users. 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

Print Media Page 30

 Print Media

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.

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

Print Media Page 31

 Print Media

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:

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

Print Media Page 32

 Print Media

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 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
Print Media Page 33
 Print Media

seeking to invest in other media and non-media businesses and strengthen

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 newspaper’s name to new products. There are
two general ideas behind newspaper companies’ efforts to stretch the use of
their brands: “brand extension” and “customer identification.”

Print Media Page 34

 Print Media

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 Germany’s 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

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.

Print Media Page 35

 Print Media

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.

Süddeutsche 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
Süddeutsche Zeitung recommends news books and movies; customers can
subscribe for the entire year or buy them separately through the newspaper’s
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 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: Greece’s Naftemporiki, which holds a 35 percent share in a
company that organizes medical conventions; HSM Education, a São Paulo
based partnership of Grupo RBS and BR Investments, which offers executive
training, editing courses and consultancy, and; Brazil’s media conglomerate
Rede Gazeta, which promotes educational events and seminars debating
political issues.

Print Media Page 36

 Print Media

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. Switzerland’s Neue
Züricher 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.

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

Print Media Page 37

 Print Media

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 Germany’s
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.

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
Springer’s 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

Print Media Page 38

 Print Media

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 Google’s 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 Greece’s 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 Group’s website to book a holiday trip in Greece.

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,
Germany’s Neue Osnabrücker
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.

Print Media Page 39

 Print Media

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 Greece’s 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 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

Print Media Page 40

 Print Media

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 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 Greece’s Naftemporiki,

Print Media Page 41

 Print Media

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 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 Germany’s 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

Print Media Page 42

 Print Media

 www.indiantelevision.com

• www.yahoo.com

 http://www.niemanlab.org

 http://structureofnews.wordpress.com/

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

 http://www.iab.net/

 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

Print Media Page 43