Newspaper circulation in decline!

February 17, 2008

I was reading a post by Jeff Jarvis (BuzzMachine), when this article about the business model for news caught my eye.  This article undertsands that the the newspaper readership is in decline and identifies the need to solve the problem.  What has caused newspaper circulation to decline is a question I asked myself which pushed me towards another blog which had an article named “Making money from journalism …” which stated the following reasons for this decline:

(1)  The rise in the alternate channels such as tv, radio, web, etc have cut into the market share of newspaper advertising and readership

(2) The rise in computers both at home and office or virually anywhere has minimized the need to have a physical newspaper.  In addition the decline in public transport has also contributed to this decline.

So What to do about it?  Jeff Jarvis states very correctly that to do something, we need not look for breakthrough innovations such as the IPOD, etc but to first ask what the problem is, and then try to solve that problem. 

The Problems:

  • With the reduction in circulation means less revenue.  The easiest way to boost profitability would be to cut costs, in other words improve efficiency.  Cut all the costs that would contribute to higher costs and keep cutting until possible.
  • Lack of sharing between newspaper companies.  Newspaper companies should start sharing news stories between each other in order to reach to a greater audience and cutting the costs of being present with staff around the world.
  • Innovation led by us.  Newpspaer companies should realize that the world has a lot of great minds which could help them solve their problems by only paying them a small amount.  Remember IDEAGORAS :)  Well newspaper companies should post their views or problems and help the world respond.

Well with having said that I myself dont read news much and always wondered about the future of the newspapers.  But am starting to read some papers but online, not the paper format yet.  Physical newspapers will suffer from decline but I beleive will never go extinct since we still have the section of audience that like to flip through pages physically.

Imran

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3 Responses to “Newspaper circulation in decline!”

  1. mellaz Says:

    Imran:

    The newspaper industry struggles with competition from other media outlets and the Internet. Today, just more than half of Americans read a newspaper during the week, somewhat more 60% on Sundays, and the number is continuing to drop.

    Where are readers going?
    It is impossible to say fully. Some people may be getting news online, RSS Feeds, some from TV. Some may be opting out of traditional news sources. Others may be sharing copies of a paper among multiple readers. For example, here at the student union we all share one copy of the guardian in daily bases. Many people now read newspapers only occasionally, a couple days a week, but no longer everyday. I think many people now prefer saving-up the cost of a newspaper to buy a coffee and read the news electronically on the internet or RSS feeds.

  2. romizuddin Says:

    Money and time is the biggest problem with the newspaper. Now days most of the dailies have an online version and people don’t have to pay money to read the news because of online edition. On the other hand by publishing online newspaper company can reduce their cost and increase their profit margin because they don’t have to pay for newsprint or distribution.

  3. Johnson Says:

    Traditional news paper publishing is shrinking gradually as the online editions are increasing rapidly. Most of the people are looking for instant news and they are approaching towards web. As the result most of the major newpaper publishers are already adopted the new technology to attract their readers and advertisers. The only solution to survive, digitize the print publications. Publishers should have their own online edition or can use the services like http://www.pressmart.net for the circulations.


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