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Newspapers and Technology September 2000

Study examines newspaper industry’s future

The Graphic Arts Marketing Information Service of the Printing Industries of America sponsored a detailed study on the future of newspapers.

The study, “The Outlook and Trends for the Future of Newspapers,” was conducted by Kubas Consultants of Toronto and provides evaluations of major trends and developments impacting the industry including the Internet and other new communication technologies.

According to the study, newspapers generated over $63 billion in revenue in 1999, and dailies accounted for about 90 percent of total industry revenues, while non-dailies represent the remaining 10 percent. Run of press, or ROP advertising, accounts for about 71 percent of total newspaper industry revenues, circulation represents 17 percent, and insert or preprint distribution produces the last 12 percent of total newspaper revenues, according to the study.

In addition, the study shows that newspapers, which account for about one-fifth of the total value of printing and publishing shipments, have been increasing revenue, but have not kept pace with total media advertising revenues.

Expected investments for newspapers include new technology and production facilities that focus on color management, more targeted distribution, and better quality reproduction.

Industry professionals, advertising customers, focus groups, media advertising models, and secondary data were the primary sources of information for the study.s

 

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