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| MAPS : The Newspaper Industry: December 2003 |
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This report covers: The, Newspaper Industry,
companies and brand names covered include: Archant Ltd, Daily Mail And General Trust Plc, Guardian Media Group Plc, Independent News & Media Plc, The News Corporation Limited, Telegraph Group Ltd, Trinity Mirror Plc
BRIEF DESCRIPTION
| Following an executive summary and introduction to the newspaper industry, this report provides a strategic overview of the sector, with data on media ownership, market sectors, distribution, competitive structure, advertising expenditure and consumer preferences. Sector-specific analyses cover national newspapers, regional newspapers and fresheets, and news online in terms of market size, competitors, consumer attitudes, and production and distribution. The report presents both an international perspective on the sector, and an analysis of political, economic, social and technological factors impacting it (PEST analysis). It considers consumer dynamics affecting the market, presenting the results of original research into purchasing preferences and profiles by product. It profiles leading newspaper publishers and considers future prospects for the sector, forecasting market size to 2008. |
EXECUTIVE SUMMARY
| There are signs that the newspaper market is about to enter a new growth period. Coupled with slight improvements in the economy and a slight increase in marketing budgets allocated to newspapers, the passing of the Communications Act in July 2003 has, to a certain extent, relaxed the rules on cross-media and foreign ownership. The challenge to UK-owned newspaper publishers will be in competing with such giants as the USA Today publishers, Gannett, and its UK regional press-owning subsidiary Newsquest. |
| The UK has enjoyed a freedom of the press that many countries today do not have. Journalists working in dictator-led countries have to work under threat of their lives and the Iraq war has seen very many journalists 'embedded' in military units bringing pictures and stories from the battle fronts, a privilege for which many have been wounded or killed. |
| There has been much change since the days when a reporter would be despatched to the Napoleonic Wars to bring back stories for readers of The Times in London that they would read, several days or even weeks later, over their breakfast. News now comes to us from all directions; as well as from our daily papers, from television, radio and, of course, the Internet. We no longer have to put up with news that is several days old when we travel abroad and digital printing means that we can pick up today's edition from a kiosk at the local airport or from the hotel hosting the conference we may be attending. |
| Newspaper publishers are keeping abreast of technological developments and many operate excellent online editions. Just as newspapers have always added to revenues from contract printing, now they are beginning to realise new revenues from their online publishing expertise. However, the exploitation of new technology is still in its infancy and attitudes towards content are still primarily locked into using the newspaper format as the prime means by which it is distributed. There are other channels yet to be fully explored and newspaper publishers need to fully examine these in order to fend off competition from rivals already strong in those channels: wireless perhaps being a case in point. |
| This report follows Key Note's Newspapers Market Report and The Newspaper Industry Market Assessment report (both published in 2001). Revenues from advertising were, at the time of those reports, increasing (although newspaper sales have been falling for a couple of decades) but economic changes since then resulted in a continuing decline until 2002. This has provoked this new edition, which looks at how the market is responding to these economic challenges and how they are shaping the strategies of the major players. |
| This Market Assessment not only updates previous Key Note reports, it includes an assessment of the online news market as well as original consumer research, looking at people's newspaper buying and reading habits as well as attitudes towards their local papers and to the Internet and television as news providers. |
| Breaking News... |
| Conrad Black, the Chief Executive of Daily Telegraph owners Hollinger PLC, was forced to resign on 17th November 2003 following the revelation that he and three other Hollinger executives had received unauthorised `non-compete' payments of $15.6m in 2000 and 2001 following the sale of some of Hollinger's US newspaper assets. These payments were kept secret from shareholders, who have called for an investigation from the Securities Exchange Council (SEC). |
| This, coupled with Hollinger's need to refinance, is likely to lead to a takeover of the Telegraph group. Both Richard Desmond (owner of Express Newspapers) and the Daily Mail and General Trust are reported to have already expressed an interest. |
TABLE OF CONTENTS
| Executive Summary |
| Breaking News... |
| 1. Introduction |
| HISTORY |
| REPORT FOCUS |
| DEFINITION |
| 2. Strategic Overview |
| MEDIA OWNERSHIP |
| MARKET SECTORS |
| Current Market Status |
| Total Industry Value and Growth |
| Table 1: The UK Newspaper Market at Current Prices (£m and %), Years Ending 31st December 1999-2003 |
| Figure 1: The UK Newspaper Market at Current Prices (£m), Years Ending December 1999-2003 |
| Table 2: Average Circulation of National Daily Newspapers (number of copies and %), April-September 2001-2003 |
| Table 3: Average Circulation of National Sunday Newspapers (number of copies and %), April-September 2001-2003 |
| DISTRIBUTION |
| Logistics |
| Retail Outlets |
| COMPETITIVE STRUCTURE |
| Daily Mail & General Trust PLC (UK-owned) |
| Guardian Media Group (owned by The Scott Trust/UK-owned) |
| Hollinger International Inc. (US-owned) |
| Independent News & Media PLC (Irish-owned) |
| News Corporation Inc. (US-owned) |
| Northern & Shell Media Ltd (private UK company) |
| Trinity Mirror PLC (UK-owned) |
| ADVERTISING |
| Table 4: Main Media Advertising Expenditure by National Daily Newspapers (£000), Years Ending June 2002 and 2003 |
| Table 5: Main Media Advertising Expenditure by National Sunday Newspapers (£000), Years Ending June 2002 and 2003 |
| Table 6: Main Media Advertising Expenditure by Regional Newspapers (£000), Years Ending June 2002 and 2003 |
| THE CONSUMER |
| Reader Habits |
| The Importance of Women |
| Reader Needstates |
| Feed Me |
| What's New? |
| My Time |
| Bonus Time |
| Search Engine |
| MARKET FORECASTS |
| Prevailing Conditions |
| Table 7: The Forecast UK Newspaper Market Size† (£m and %), 2004-2008 |
| 3. National Newspapers |
| BACKGROUND |
| MARKET SIZE |
| Table 8: The UK National Newspapers Market at Current Prices (£m and %), Years Ending 31st December 1999-2003 |
| Figure 2: The UK National Newspapers Market at Current Prices (£m), Years Ending 31st December 1999-2003 |
| COMPETITOR ANALYSIS |
| Table 9: UK National Tabloids' Advertising Market Share (%), January-June 2003 |
| MARKETING ACTIVITY |
| Table 10: The Daily Telegraph Profit Comparison Table (pence), 2003 |
| Industry Investments |
| CONSUMER ATTITUDES |
| Table 11: Attitudes Towards the Mix of News and Gossip (% of respondents), 2003 |
| Distribution |
| Table 12: UK Newspaper Retailers by Type (number and %), October 2001-September 2002 |
| 4. Regional Newspapers and Freesheets |
| BACKGROUND |
| Market Measurement |
| MARKET SIZE |
| Table 13: The UK Regional Newspapers Market at Current Prices (£m and %), Years Ending 31st December 1999-2003 |
| Figure 3: The UK Regional Newspapers Market at Current Prices (£m), Years Ending 31st December 1999-2003 |
| COMPETITOR ANALYSIS |
| Table 14: Top 20 UK Regional Newspaper Publishers by Number of Title by Type and by Total Weekly Circulation, July 2003 |
| Acquisitions and Investments |
| MARKETING ACTIVITY |
| DISTRIBUTION AND PRODUCTION |
| 5. News Online |
| BACKGROUND |
| MARKET SIZE |
| COMPETITOR ANALYSIS |
| The Main UK Internet News Sites |
| BBC — bbci.co.uk |
| The Guardian — guardianunlimited.co.uk |
| Financial Times — ft.com |
| The Daily Telegraph — telegraph.co.uk |
| The Times — timesonline.co.uk |
| The Independent — Independent.co.uk |
| The Tabloids |
| CONSUMER ATTITUDES |
| Table 15: Attitudes Towards Technology (% of respondents), 2003 |
| DATA AND CONTENT DISTRIBUTION |
| COPYRIGHT OF DIGITAL CONTENT |
| 6. An International Perspective |
| THE EU |
| Table 16: Comparison of EU Newspaper Publishing by Circulation, Advertising Revenue and Sales Revenue (number and %), 2001 |
| Figure 4: Comparison of EU Newspaper Publishing by Circulation per Thousand Population (number), 2001 |
| AROUND THE WORLD |
| PRESS FREEDOM |
| MARKET DEVELOPMENTS |
| COMPETITOR ENVIRONMENT |
| Table 17: Competitive Assessment of the EU Newspaper Industry, 2003 |
| 7. PEST Analysis |
| POLITICAL FACTORS |
| ECONOMIC FACTORS |
| SOCIAL FACTORS |
| TECHNOLOGICAL FACTORS |
| 8. Consumer Dynamics |
| OVERVIEW |
| SURVEY RESULTS |
| Newspapers — Can't Live Without Them! |
| S1: "I make time to read at least one newspaper most days." |
| S2: "I only read a newspaper thoroughly at weekends." |
| Table 18: Attitudes Towards Finding Time to Read Newspapers (% of respondents), 2003 |
| Newspapers — Can't Live Without Them. Or Can I? |
| S3: "If I didn't get my newspaper in the morning, the day just wouldn't feel right." |
| S4: "I would buy newspapers more often if I had more time to read them." |
| Table 19: Attitudes Towards Newspaper Dependency (% of respondents), 2003 |
| News Hound |
| S5: "I don't often buy a newspaper as I prefer to watch the news on television." |
| S6: "I often learn of breaking news on the Internet before I see it on television or read it in the paper." |
| Table 20: Attitudes Towards Alternative News Sources (% of respondents), 2003 |
| Me and My Paper |
| S7: "I mostly read a newspaper for the things that interest me, not the news." |
| S8: "Newspapers give me vital background to major news stories." |
| Table 21: Motivation for Reading Newspapers (% of respondents), 2003 |
| I Love My Local |
| S9: "If I had to make a choice I would buy the local paper rather than a national one." |
| S10: "I sometimes keep items of interest from my local newspaper for future reference." |
| Table 22: Attitudes Towards Local Newspapers (% of respondents), 2003 |
| People Like Us |
| S11: "I think you can tell what people are like from the newspaper they read." |
| S12: "I find I click more easily with someone if they read the same newspaper as me." |
| Table 23: Reader Identification (% of respondents), 2003 |
| News and Gossip |
| S13: "I think the tabloids have mostly got the mix of news and gossip right." |
| Table 24: Attitudes Towards the Mix of News and Gossip (% of respondents), 2003 |
| Technology |
| S14: "I get news on my special interests delivered by e-mail or to my mobile phone." |
| S15: "I often visit newspapers' websites to get more information on things that interest me." |
| Table 25: Attitudes Towards Technology (% of respondents), 2003 |
| 9. Company Profiles |
| ARCHANT LTD |
| Corporate Strategy |
| Strengths and Weaknesses |
| New Product Development |
| Brand Development |
| Innovations |
| Hatches and Dispatches |
| Advertising |
| Distribution |
| Profitability |
| Table 26: Financial Results for Archant Ltd (£000 and %), Years Ending 31st December 2000-2002 |
| DAILY MAIL AND GENERAL TRUST PLC |
| Corporate Strategy |
| Strengths and Weaknesses |
| New Product Development |
| Brand Development |
| Innovations |
| Hatches and Dispatches |
| Advertising |
| Distribution |
| Profitability |
| Table 27: Financial Results for Daily Mail and General Trust PLC (£m and %), Years Ending 1st October 2000, 30th September 2001 and 29th September 2002 |
| GUARDIAN MEDIA GROUP PLC |
| Corporate Strategy |
| Strengths and Weaknesses |
| New Product Development |
| Brand Development |
| Innovations |
| New Research |
| Hatches and Dispatches |
| Advertising |
| Distribution |
| Profitability |
| Table 28: Financial Results for Guardian Media Group PLC (£m and %), Years Ending 31st March 2001-2003 |
| INDEPENDENT NEWS & MEDIA PLC |
| Corporate Strategy |
| Territories: |
| Australasia |
| South Africa |
| Portugal |
| Ireland |
| The UK |
| Strengths and Weaknesses |
| New Product Development |
| Brand Development |
| Innovations |
| Hatches and Dispatches |
| Advertising |
| Distribution |
| Profitability |
| Table 29: Financial Results for Independent News and Media (UK) Ltd (£000 and %), Years Ending 31st December 1999-2001 |
| THE NEWS CORPORATION LIMITED |
| Corporate Strategy |
| Strengths and Weaknesses |
| Brand Development (UK Newspapers) |
| Innovations (UK Newspapers) |
| Hatches and Dispatches (UK Newspapers) |
| Advertising (UK Newspapers) |
| Distribution (UK Newspapers) |
| Profitability |
| Table 30: Financial Results for the News Corporation Ltd (AUS$m and %), Years Ending 30th June 2000-2002 |
| TELEGRAPH GROUP LTD |
| Corporate Strategy |
| Telegraph Group Ltd Products |
| Strengths and Weaknesses |
| New Product Development |
| Brand Development |
| Innovations |
| Hatches and Dispatches |
| Advertising |
| Distribution |
| Profitability |
| Table 31: Financial Results for Telegraph Group Ltd (£000 and %), Years Ending 31st December 2000-2002 |
| TRINITY MIRROR PLC |
| Corporate Strategy |
| Strengths and Weaknesses |
| New Product Development |
| Brand Development |
| Innovations |
| New Research |
| Hatches and Dispatches |
| Advertising |
| Distribution |
| Profitability |
| Table 32: Financial Results for Trinity Mirror PLC (£m and %), Years Ending 31st December 2000, 30th December 2001 and 29th December 2002 |
| 10. The Future |
| OVERVIEW |
| FORECASTS |
| Table 33: The Forecast UK Newspaper Market Size† (£m), 2004-2008 |
| Figure 5: The Forecast UK Newspaper Market Size† (£m), 2004-2008 |
| 11. Further Sources |
| Associations |
| Publications |
| General Sources |
| Government Sources |
| Newspaper Companies and Other Sources |
| Bonnier Sources |
Text © 2003 Key Note
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Last updated by Amanda Porteous 2003
