Table of Contents
B. Newspaper publishing industry today
C. Why newspapers are facing declining circulations and revenues D. How companies in the publishing industry are adjusting their strategies to cope with today’s challenges E. Steps taken by the Chronicle Gazette for dealing with today’s challenges F. Conclusion
The Chronicle Gazette is one of today’s leading newspapers in the United States, with a circulation of 225,000 customers. Over the past few years, it has been facing a steady decline in its customer base and revenues. This is mainly due to the increase of people using the internet as their means of gathering news and information. The newspaper publishing industry in the United States is going through some difficult times with declining revenues. Both subscription and advertising revenues have been steadily declining. One of the main causes for this downfall is that readers are using the internet to get news and other information for free, and they are reluctant to pay. The current state of the economy in the United States and the global recession has cut down the advertising revenues for the newspapers. The cost of publishing has increased, which has caused the majority of the newspapers to increase their prices. This has further distanced consumers from purchasing the traditional newspapers and has made the online news websites even more popular. The main purpose of this report is to analyze the newspaper industry for The Chronicle Gazette presenting them with information to help boost its circulation and increase their profits. The report will analyze the newspaper industry in the United States giving details of its present status and future position. It will also present facts on the factors that have lead to the decline of the industry. The report will analyze the trends in the newspaper industry and the strategies adopted by some of the leading companies in the industry. It will provide details on the measures adopted by the companies in the publishing industry and how they overcame the losses. By assessing the internal and external factors affecting the industry and the publishers, the report will present the measures to be adopted by The Chronicle Gazette to help increase the advertising revenues and increase its readership base.
The newspaper publishing industry today:
The main products of the United States newspaper industry are the daily, weekly, monthly, and Sunday newspapers. The publishing industry consists of approximately 2,000 companies with their total annual revenues reaching nearly $30 billion. The main source of revenues for the industry is advertising, subscriptions, and market stand sales. Advertising revenues make up the majority of the newspaper industry’s earnings. The leading companies still operating in the industry include News Corporation, The New York Times Company, Gannett Company, Tribune Company, The Washington Post Company, and the Hearst Company. The total daily circulation of newspapers in the industry in the United States is nearly 50 million. One of the main drivers of the United States newspaper industry is the state of the economy. The struggles of the economy have had a direct impact on both advertising and circulation. The majority of the overhead costs incurred by companies in the industry are fixed. That means that profitability is driven by sales and marketing. The marketing strategy of companies needs to be strategic and innovative to increase circulation and boost profits. The larger companies have the advantage due to their size and economies of scale, and use shared resources in publishing a number of newspapers. Small publishers are better suited to serve the smaller markets.
Declining circulation and revenue:
Over the past few years there has been a steady declined in the readership of newspapers. An increasing number of people are now using the...