News

In the midst of a global recession, with daily reports about the “demise” of

newspapers, a new report demonstrates that newspapers have a long-term

future, and provides an overview of what publishers are doing, and can do,

to meet the challenges of the changing media landscape.



Among other findings, the report says consumers are willing to pay for

online newspaper content.



The report by PricewaterhouseCoopers, in cooperation with the World

Association of Newspapers, focuses on the changing behaviour of news

consumers, and the response of newspaper publishers, advertisers,

advertising agencies and media buyers to these changes.



The report, “Moving into multiple business models: An outlook for newspaper

publishing in the digital age”, will be presented by its authors at the

upcoming Power of Print Conference & Expo, to be held in Barcelona, Spain,

on 27 and 28 May. There is still time to register: full details can be found

at http://www.wan-press.org/powerofprint2009



The PwC report is based on surveys of 4,900 consumers in seven countries,

interviews with leading publishers, advertisers and media buyers around the

world, and industry reports, analysts reviews and PwC expertise. It can be

found at http://www.wan-press.org/article18128.html (download from bottom of

the page).



The report says:



- Despite the huge potential for growth online, print remains the largest

source of revenue for newspaper companies, and will continue to be so for

some time.



- Consumers are willing to pay for online content. Two-thirds of respondents

in a global survey said they were willing to pay for general news content

online ­ and all are willing to pay for it in print, despite the advent of

the free daily newspaper. But newspapers need to develop strategies for

monetising their content and intellectual capital.



- General consumer spending on the internet will increase in the next few

years, and this will change the mindset of consumers who are now expecting

to get everything for free.



- Consumers don¹t only appreciate journalists for their general news

reporting ­ they place high value on the deep insight and analysis provided

by journalists.



- Traditional newspapers still have a strong and relatively loyal reader

base, as their reliability is perceived as being greater than that of other

media. This gives newspapers the opportunity to lead and to follow

audiences as they use online and portable electronic media. The report found

that the core principles of deep analysis and trusted editorial translates

well online ­ the newspaper brand is more important than the medium.



- Newspapers have responded to the economic downturn by focusing on cost

reductions. Many are also accelerating content distribution strategies over

many channels. “However, many have still to fully review their existing

business models to take full advantage of the innovation in the marketplace

and the demands of consumers,” the report says.



- The market for mobile devices is growing rapidly. But mobile news delivery

is low on the list of consumer preferences because of the difficulty of

reading on the devices.



- Consumers and publishers alike are concerned about the environment and

attach high value to a publishing company using environmental friendly

practices. Some newspaper publishers have addressed the issue, but many have

not.



The report addresses a list of key questions for newspaper publishers: is

the brand identity clear? Are print and new media separate operations or

simply different distribution channels? Is print and digital advertising

sales integrated? Does online extend your core audience beyond traditional

print readers? What does your audience want from you ­ and what will they

pay for? What sort of business will you be running in five years? And many

others.



PricewaterhouseCoopers (http://www.pwc.com ) provides industry-focused

assurance, tax and advisory services to build public trust and enhance value

for its clients and their stakeholders. More than 155,000 people in 153

countries make up the PwC network.



The Paris-based WAN, the global organisation for the newspaper industry,

defends and promotes press freedom and the professional and business

interests of newspapers world-wide. Representing 18,000 newspapers, its

membership includes 77 national newspaper associations, newspaper companies

and individual newspaper executives in 122 countries, 12 news agencies and

11 regional and world-wide press groups.



Inquiries to: Larry Kilman, Director of Communications, WAN, 7 rue Geoffroy

St Hilaire, 75005 Paris France. Tel: +33 1 47 42 85 00. Fax: +33 1 47 42 49

48. Mobile: +33 6 10 28 97 36. E-mail: lkilman@wan.asso.fr