The goal of this report is to offer the management of The Chronicle Gazette a strategic vision of where the newspaper publishing industry stands today and where it is headed over the next decade. This report is to analysis the state of the newspaper publishing industry today and to show the problems that we are facing nowadays and the cause of the problems and how its influences the newspaper industry. As well, we have to define the external assessment and internal assessment for the reasons why newspaper are facing declining circulations and revenues. Also, how should The Chronicle Gazette adjust their strategies to cope with the challenges and the appropriate steps that it should take in order to deal with the challenges.
Over the years, The Chronicle Gazette is a leading newspaper in the major metropolitan area with a paid circulation of 225,000 customers, while the selling of the newspaper is declining over the years, it influences the revenue of the newspaper and it is time to find a new way of how to maintain the business.
2. State of the newspaper publishing industry today
2.1 Data on declining circulation and revenue
The Chronicle Gazette is a leading newspaper in a major metropolitan area. It has a circulation of 225,000 customers. It is a first-rate newspaper and over the years, its writers have won awards for their work.
However, there has been a steady decline in subscriptions to the newspaper. In the past eight years, subscriptions have fallen by a total of 35% and because subscriptions have fallen, advertising revenue has also dropped by 28%.
The fall of advertisement revenue influences the operation of the newspaper a lot, like the daily operation cost and upgrade of equipment as well as the moral of the staff.
The reasons of the fall is due to the rapid growth of internet, people can get information for free and there is immediately update of news from Yahoo, news web site and even message boards, some of them even has video upload that the readers even do not need to read the news in words. Such as the recent earthquake in Japan, there are hundreds of video in Youtube as well.
Furthermore, readers can explore topics that they are interested in internet with unlimited sources which are free, therefore paid circulation is declining in many countries and advertisement revenues are dropping as well which crisis the business of a newspaper.
2.2 Status of newspaper leaders
(http://www.nytimes.com/2008/10/28/business/media/28circ.html) By RICHARD PÉREZ-PEÑA Published: October 27, 2008 The exceptions among the nation’s biggest newspaper were USA Today and The Wall Street Journal, two national papers and the two largest in circulation, which were virtually unchanged, at 2.3 million for USA Today and 2 million for The Journal on weekdays. Neither paper publishes on Sundays. Among more than 100 papers with weekday circulation above 100,000, none had more than a fractional increase.
Newspaper circulation has fallen about 2 percent annually for years but began to drop faster in the 2007 reports, and faster still in the reports issued last spring, which showed declines of 3.6 percent on weekdays and 4.6 percent on Sundays. According to the Burrelles Luce’s report, there is a declining of the circulation of newspaper, even the top three ranking newspapers like The Wall Street Journal, USA Today and New York Times. Here is some data:
Circulation (‘000) 20102009200820072006
The Wall St Journal 20242082206920622049
New York Times9271039107711201142
The trend of sharper declines on Sundays is more troubling, given that the day accounts for the largest share of advertising and circulation revenue for most newspapers.
‘3. Why newspapers are facing declining circulations and revenues
3.1 External assessment
3.1.1. economic forces
Since the economic is not good, people will reduce spending...