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.
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.