By Robert Ryan
Sydney, Australia,
Sept. 11, 2009
(RISI) -
It would be no surprise to many readers to hear that newspaper publishers are facing challenging times in many mature economies around the world. In the US, some household name mastheads are on the brink of bankruptcy, and falling circulations worry publishers worldwide, even in distant, downunder Australia and New Zealand.
Nevertheless, the recent experience in Australia shows that newspapers in mature economies can build a viable and profitable future. And doomsayers who expect that the internet will kill off print are misguided. These were two key themes raised by speakers at the Future Forum held by PANPA (Pacific Area Newspaper Publishers' Association) on September 10 in Sydney, Australia.
The way advertisers spend shows the print media is alive and kicking downunder. Last year, 34% of the total $A12,130 million media ad spend went to newspapers, says Brendan Hopkins, CEO of the publisher APN News & Media. This was ahead of the ad spend on TV (31% of the total), online (14%), radio (8%), magazine (6%), cinema (1%) and other (6%).
The numbers speak for themselves. Advertisers prefer print media to the internet. But why?
"Readers don't look at ads on the net"
The speech from Timothy Balding, joint CEO, WAN-IFRA (World Association of Newspapers, now merged with peer organisation IFRA) sheds some light. The internet is a big challenge, he says. "Readers don't look at ads on the net, and few click on them," Balding explains. He says web visitors spend too little time each day on the net. So online is not an effective advertising medium.
The message from Balding's talk was that newspaper readers make up a comparatively engaged and attentive market, and are rather different creatures to fickle net browsers. Perhaps that explains why Australian advertisers chase newspaper readers instead of net surfers.
Balding went on to note that newspaper readers are loyal to their mastheads. For instance, even after the drop in circulations experienced in the USA, there are still 43 million newspaper subscribers there. This sort of readership stability and predictability must hold appeal for advertisers, especially compared to the mysterious nature of web surfer hit counts that internet sites offer.
Furthermore, Balding points out that 25,000 newspapers provide search engine companies such as Google and Yahoo with free content, which makes them free riders. This is probably a mistake, since these search companies go on to generate revenue using something they don't pay for. "Search engines have been accused of being kleptomaniacs," he says.
Clearly publishers need to reflect on the free content. And Richard Freudendstein, CEO, News Digital Media (part of Rupert Murdoch's media empire) took the content debate to the next step. Publishers need to charge for content, he says.
Successful charging is about "creating unique and compelling content," Freudendstein says. He concedes that this sea change won't happen overnight, but it can and will be done at News Digital Media. "Publishers need to combine great journalism with innovative delivery".
Peter Chrisp, Australasian president, Norske Skog
Newsprint - an important contributor to democracy
Even in an internet era, newspapers still win. As Tony Hale, CEO, The Newspaper Works says, research shows that consumers see print media as more reliable than You Tube, and as more reputable than Google. "The VCR didn't kill cinema"; so the new media won't kill the old. "Newspapers and online are complementary," he says.
Finally, given the intense media scrutiny on people in public life, it would not be surprising if politicians had only unkind words to say about the press. But not so for busy New South Wales Premier Nathan Rees, who took time out to attend the forum. "I believe in freedom of information (FOI)", the premier says. Significantly, he says, secrecy used to be the norm in Australian politics just a few decades ago.
It is tempting for papermakers and publishers in mature economies to envy the high newspaper circulation growth in parts of the developing world. But they should remind themselves that press freedom is still severely curtailed in many nations. So the press in countries with healthy FOI traditions has much to be thankful for, and an enviable foundation to build upon.
Finally, Peter Chrisp, Australasian president, Norske Skog (which sponsored the Future Forum) also pointed out that newsprint makes an important contribution to democracy. He noted that the newsprint industry makes use of captured carbon - in the form of wastewood and wastepaper - in production. "And this is an inherently sustainable industry," he says.
In his closing comments, PANPA chief executive Mark Hollands noted that the day had been a celebration of newspapers. So the industry can take a pat on the back for its achievements as it rolls up its sleeves to take on the challenges of the future.