Print Media

Final Report on:

Print Media(Past Present & Future Scenario)

Submitted to:Mr. Amit Joshi

Submitted by:Varnita Kaushik

B.B.A 2nd Yr.

Enroll: 1002C00022

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ACKNOWLEDGEMENT
Behind every study there stands myriad of people whose help and contribution makes it successful. It has been a remarkable experience of satisfaction and pleasure for me to work on my project under the supervision of Mr. AMIT JOSHI. I am really thankful to him for his valuable guidance and co-operation during the project work. I had also benefited from discussions and would also take the opportunity to thank the company personals for their valuable support and assistance.

Whenever and wherever needed. A cordial and encouraging environment made it very easier for me to complete the project. So this acknowledgement is a humble attempt to Earnestly thank all those who were directly or indirectly involved in preparation of this project.

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CONTENTS

INTRODUCTION AN OVERVIEW OF THE TERM MEDIA FORMS OF MEDIA PRODUCTION SYSTEM SWOT ANALYSIS ADVANTAGES AND DISADVANTAGES OF PRINT MEDIA EVOLUTION OF PRINT MEDIA EFFECTS OF EVOLUTION ETHICS OF PRINT MEDIA PRINT MEDIA CHARECTERISTICS CHALLENGES TO PRINT MEDIA OVERVIEW OF TWIN CRISES REVENUE ALTERNATIVES BIBLIOGRAPHY

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INTRODUCTION
The media industry has always adapted to meet the changing needs of advertisers and to incorporate new technologies into their service and product offerings. Over the last two decades this industry has changed at a breakneck pace that is no longer a series of adjustments but a wholesale evolution of the industry. New media have entered the arena while others have been forced to evolve to avoid becoming obsolete. These changes have been driven by advancements in technology, consumer media usage and the almighty dollar. Perhaps no media has been more challenged by these changes than print. While print media has been the hardest hit, talk of its extinction is premature and ignores the fact that it has and continues to play a significant role in consumer marketing. Print media is here to stay but its form and role will never be the same again. Like all media forms, print has evolved over time and has been undergoing a period of considerable change that began prior to the recent recession. Newspaper ad revenues have been experiencing significant decline since 2001 while penetration has been declining in many key segments since the early 1970s . This decline has been less pronounced with readers age 55+. As more tech-savvy baby boomers reach retirement, the decline seen in younger segments will likely be matched by the older. The print media include all newspapers, newsletters, booklets, pamphlets, magazines, and other printed publications, especially those that sell advertising space as a means of raising revenue. The print media in India is a long way from being dead if the official report on the state of the print publications is anything to go by. The Press in India 2004-5, the annual report of the Registrar of Newspapers for India (RNI), says the print media claimed a substantial share in the information space in the country registering 1,948 new newspapers and over a two crores increase in circulation in 2004-05.. Most print media, with the exception of magazines, are local,
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although there are some national newspapers and trade publications that have become quite success

In order to combat the decline in all age groups, print media has diversified their offerings and taken steps to acquire new readers while cutting costs. Nearly all newspaper and magazine publishers have added complementary websites to their offering. In an effort to attract younger readers major publishers such as the Tribune and Sun-Times Media Group launched free circulation newspapers geared towards their target audience. Magazines such as Road & Track and Sports Illustrated have provided unsolicited free 6 month subscriptions followed by a renewal subscription contact strategy thereby providing a free trail. In an effort to cut costs, some publications have abandoned long standing formats. On February 8th 2010 the Chicago Tribune trimmed its traditional broadsheet format to reduce costs and changed their editorial ratio as part of their bankruptcy agreement. As print revenues continue to decline profits are improving and should it be determined that these acquisition efforts and format changes played a key role, it is likely that other publications around the country will follow. Online advertising has benefited from regular technological advances and has become a mainstream advertising medium now representing 12% of total ad spending compared to 34.6% for print. The explosive growth of online advertising has tapered off and for the first time experienced negative growth in the first quarter of 2009. Internet advertising spend grew 37.5% between
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2005 and 2008 while print declined 29.9% over the same period. However, the decline of print has not been made up by growth in online advertising.

AN OVERVIEW OF THE TERM MEDIA

The Media refers to the different channels we use to communicate information in the e v er y da y w o r l d. M e d i a i s t h e p l u r a l o f m e di u m (o f co mm u n i c a t i o n) , a n d t h e m a i n media are

TELEVISION MAGAZINES FILM RADIO ADVERTISING POP MUSIC NEWSPAPERS INTERNET

The entertainment and is one of the fastest growing sectors in India. The Indian economy has been growing at a fast clip over the last few years, and income levels and consumer spending is also on the rise. Besides these economic and personal other, that are contributing to this high growth rate income-linked factors, there are other, that are contributing to this high growth rate.

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FORMS OF MEDIA
Electronic media and print media include:
B r o a d ca s ti ng , i n t h e n a r r o w s ens e, f o r r a di o a n d t el ev i s i o n. V a r i o us t y pes o f di s cs o r ta pe. I n t h e 2 0t h ce n tu r y , t h es e w e r e ma i n l y us ed f o r music. Video and computer uses followed. F i l m, mo s t o f t en u s e d f o r en t er ta i n m e nt , b u t a l s o f o r d o cu m e nt a r i es . I n te r n et , w hi c h h a s ma ny us es a n d pr es e nts bo th o p po r t u ni ti es a nd c h a l l e ng es . Blogs are unique to the Internet. P u bl i s h i n g , i n th e na r r o w s e ns e, m e a n i n g o n p a pe r , ma i n l y v i a bo o ks , m a g a zi n es , and newspapers.

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FUTURE FORECASTING OF PRINT MEDIA

1. Print media has scope in digital age:
Poised on a trajectory of growth, the country's print m e d i a i s f a c e d w i t h challenges such as rising newsprint costs but has opportunities in the digital age. The print media's potential lies in the fact that the press reaches 35 per cent of its adults.

The Indian newspaper industry's turnover is expected to touch Rs. 13,500 crore this year from Rs. 12,000 crore last year. If the country's growth were around eight per cent, the industry's turnover would grow at 12-14 per cent. Not only is there opportunity for the Indian print media to grow but growing consumerism has thrown up opportunities for special interest magazines, Mr. Aroon Purie, Chairman and Chief Executive, India Today Group, said at a session on the future of print media at FICCI-Frames 2006. In a robust economy, special interest magazines will proliferate and flourish. Players will work towards offering niche products, he said. However, newsprint price, which is on an u p w a r d tr e n d , i s cr i ti c a l a s 1. 6 b i l l i o n t o n n e s o f n ew s pr i n t a r e co ns um e d i n I n d i a annually. Newsprint accounts for a significant part of the costs.

While other Medias pose competition to the print media, changing technology would drive growth, Mr. Mathew said. Portals such as Naukri.com and Shaadi.com have made major inroads into classified advertisements. But in the digital age; newspapers will have to redefine content. "Never take a reader for granted. It is a challenge to retain readers.

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2. Print media scores over TV:

The print media has been able to retain its loyal readership despite the growing influence of television. In spite of the initial euphoria generated over the visual media encroaching upon print, the reading habit among Indians, especially youth, has gone up slightly in the country during the last two years. The visual media has not really affected the print media. The survey report was released to a packed audience of over 400 media, advertising a nd marketing professionals. The survey concentrated on 397 publications 166 dailies and 231magazines. The governing members of the council spent about 554 man-hours for the study, informed Gautam Rakshit, chairperson of the governing council of NRSC.

TV accounts for 68.8 per cent of the total media exposure in the country from the sample survey, while the share of print media is 16.2 per cent and that of radio at 15 per cent. The sample population which was randomly selected was in the age group of 15 to82 years. The survey said the influence of TV has reached 3.36 crore homes.

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3. Present and future of the Indian Magazine Industry

Ashish Bagga, CEO, India Today Group in one of the sessions made observations about the current scene in the Indian magazine industry and said that there has been an unprecedented growth in mainstream magazines, niche publications and B2B periodicals in India. The relatively liberalised policy regime laid down by the Indian government in t he areas of li censing and syndi cation f or print media have benefit ed the magazine industry by enabling the print companies to get the government's approval in just a year for 50 applications. He also added that there was still room for improvement compared to newspapers and other media forms in areas such as its share of advertisement revenues. Other area where magazines are facing challenges are - real-time constraints such as unrealistic norms for certifying paid circulation by the Indian ABC causing a mass exodus of magazines from its membership; research methodologies for national research studies were skewed towards newspapers; and huge pressure of talent acquisition and retention.

Future activities in favour of the print media will centre upon:

Establishing technical support for local and commercial initiatives in the print media, with a 'train-the-trainer' scheme;
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Improving the technical quality and content of the print media; Increasing and broadening readership of the print media.

PRODUCTION SYSTEM
PRINT MEDIA One of the largest & fully integrated Pre-Press, On-Press and Post-Press print production facilities in India. A complete and latest Pre-Press, On-Press & PostPress set up under one roof. PRE-PRESS D.T.P. Facilities, Photo Composing, Graphic Design Studio, Text Designing, Image Setter, Scanning, Planning, Creative Work and Scanner with System. ON-PRESS 4 Colour Heat-Set Web, 4 Colour Cold-Set Web, 4 Colour Stack Unit Web, 6 Colour Sheet Fed, 2 Colour Sheet Fed, Single Colour Sheet Fed and Screen Printing. POST-PRESS

Paper Cutting, Wire Stitching, Folding, Lamination, Perfect Binding. Sahara Samay brings you the world's most advanced and Asia's largest fully automated electronic news production technology. Investments of more than USD 54.35 million (INR 250 crore) with features that ensure the most comprehensive news
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Print Media coverage. Sahara Samay operates at both the country wide and local level. View the technical specifications of Sahara Samay.

SWOT ANALYSIS
PRINT MEDIA
1. STRENGTHS In primitive stage certain sounds, bells, drum beats were considered as a kind of advertisement earmarking special information and announcements were conveyed through these sounds. Later on New Advertising media were the daily News papers, magazines, and posters on walls captured the advertisement. Still Daily News papers are the first one people depend on getting News and advertisements. Most popular News Papers like Hindu in Chennai, Malayala Manoramain Kerala, Dainik Bhasker in Rajasthan are the No. 1 News papers to name a few, having lakhs and crores of readers. Print Media will never lose its glamour and popularity and will continue to remain as the 1st choice of whole humanities to promote their products, education fields &services because Print media reaches early morning at our door steps with and without the use of Electricity or any equipment one can read the News paper. Magazines are more cost effective than other media forms. 2. WEAKNESSES Advertisers and agencies need to take trade-off calls, between the bigness of the idea v/s the consumers reached. Many innovations that might work in print, may not work in television and vice-versa. So planners need to understand the strengths and weaknesses of both the mediums.
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Print has seen some innovation in the last few years, in terms of layouts and positions and advertising and editorial combinations. Lots of advertorials are seen in magazines, where products are cleverly pushed through an editorial kind of a format. The bad news is that online spending accounted for only 5.4 percent of all newspaper ad expenditures in 2006, the association reported. And print revenue fell 3.7 percent in 2006, to $13.2 billion, from the year before. There is absolutely no question that the next 10 years are going to be really bad for the newspaper business. This is a time of wrenching change and chaos. All of our assumptions about newspapers are going to be changed. The format, business model, organization of newspapers have outlived their usefulness. 3. OPPORTUNITIES A booming Indian economy, growing need for content and government initiatives that have opened up the sector to foreign investment are driving growth in the print media. With the literate population on the rise, more people in rural and urban areas are reading newspapers and magazines today. There is more interest in India amongst the global investor community. This leads to demand for more content from India. Foreign media too is evincing interest in investing in Indian publications. And the internet today offers a new avenue to generate more advertising revenue. Media refers to the means of communication as radio and television, newspapers and magazines that reach and influence people widely. Journalism is the occupation of reporting, writing, editing, photographing, or broadcasting news or of conducting any news organization as a business. A journalist is a person who practices the occupation of Journalism. The hierarchy for reporters in most of the newspaper houses is roughly as follows-Trainee, Staff Reporter; Correspondent, Senior Reporter / Correspondent, Principal Reporter / Correspondent, Chief Reporter / and Special Representative /Correspondent.
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Different kinds of jobs, on the desk and in the field, are open in both print and media Journalism. Reporters can work for either print or electronic media. While the print has several sub-categories like newspapers, magazines and news agencies, the latter includes radio and television. Poised on a trajectory of growth, the country's print media is faced with challenges such as rising newsprint costs but has opportunities in the digital age. Not only is there opportunity for the Indian print media to grow but growing consumerism has thrown up opportunities for special interest magazines. 4. THREATS Some of the decline is because newspaper managements have curtailed promotional distribution or discounted sales to bulk purchasers who supply the paper free to hotels and airports. Secondly, the decline in circulation is not necessarily a reflection of a decline in aggregate readership, since online readership of newspapers is on the rise. Online readership of newspapers is rising fast, pointing to a possible increase in aggregate readership. The problem of course is that for the print media industry looking to keep revenues rising to cover rising costs and more, a Web presence is still small consolation. Even though some companies claim significant, even if small, revenues from their Internet operations, only a small part of that comes from their strength in the print media.

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Advantages and disadvantages of print media

Newspapers
Newspapers are one of the traditional mediums used by businesses, both big and small alike, to advertise their businesses.

Advantages
Allows you to reach a huge number of people in a given geographic area You have the flexibility in deciding the ad size and placement within the newspaper. Your ad can be as large as necessary to communicate as much of a story as you care to tell. Exposure to your ad is not limited; readers can go back to your message again and again if so desired. Free help in creating and producing ad copy is usually available. Quick turn-around helps your ad reflect the changing market conditions. The ad you decide to run today can be in your customers' hands in one to two days.

Disadvantages
Ad space can be expensive Your ad has to compete against the clutter of other advertisers, including the giants ads run by supermarkets and department stores as well as the ads of your competitors Poor photo reproduction limits creativity Newspapers are a price-oriented medium; most ads are for sales Expect your ad to have a short shelf life, as newspapers are usually read once and then discarded.

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You may be paying to send your message to a lot of people who will probably never be in the market to buy from you. Newspapers are a highly visible medium, so your competitors can quickly react to your prices With the increasing popularity of the Internet, newspapers face declining readership and market penetration. A growing number of readers now skip the print version of the newspaper (and hence the print ads) and instead read the online version of the publication.

Magazines
Magazines are a more focused, albeit more expensive, alternative to newspaper advertising. This medium allows you to reach highly targeted audiences.

Advantages
Allows for better targeting of audience, as you can choose magazine

publications that cater to your specific audience or whose editorial content specializes in topics of interest to your audience. High reader involvement means that more attention will be paid to your advertisement. Better quality paper permits better color reproduction and full-color ads. The smaller page (generally 8 by 11 inches) permits even small ads to stand out.

Disadvantages
Long lead times mean that you have to make plans weeks or months in

advance. The slower lead time heightens the risk of your ad getting overtaken by events.
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There is limited flexibility in terms of ad placement and format. Space and ad layout costs are higher.

Print" news typically has more information in more detail for each topic. Also newspapers will do more follow up as a subject evolves over time, such as the court process while an alleged murderer is going through a trial . Also newspapers tend to have strict rules for identifying subjects who provide quote . Newspapers are a quite formal and use a standardized language called "AP Style" (Associated Press Style) . Newspapers will cover routine municipal matters like school board and alderman's meeting .

EVOLUTION OF PRINT MEDIA

The oldest mass medium is print media. Human history gives us a clue that posters, banners and pictures were first used to convey the messages. In the 10th century handmade press was first established. Book printing was started in 15th & 16th century in Europe.

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The emergence of Print Media created doubts in the minds of the rulers and they took it as a threat against their rule. The rulers presumed that people would become aware of their rights and they will challenge the authority. So most of the rulers in Europe took it as a revolt and declared capital punishment for the persons involved in Mass Media. In 1663, the last capital punishment was given to a publisher because he published a book of an anonymous writer. This book contained the idea that rulers are accountable for their deeds and decisions to the masses and if any ruler does not feel himself accountable then masses have the right to overthrow his rule. This was the last capital punishment that was awarded in the history of England. Print media could not get its full growth till the 18th century as illiteracy was the major problem in all the societies and most of the newspapers were read by the elite class because state was not responsible for the education of the masses and elites had a privilege to get private education from the arranged tutors.

In the sub-continent East India Company started some papers that were in English language and mostly read by the employees of the East-India company. In 1757 when East India Company conquered Bengal, there were one lakh informal institutions that were either run by Hindu Pandits or Muslim Ulamas. So publishing papers entirely in English language means that they ignored the factor of local educated people. Later on the English papers started to publish in Madras, Bombay and Calcutta because East India Company offices were in all these cities. So, it proved that publish of this paper was entirely for Company employees and not for the local Indians.

In 1822, first Urdu paper named Jam-e-Jahanuma emerged and English rulers took it as a threat against them and they started to think to impose press laws to outclass local papers. Therefore, in 1823 Press Act came to suppress Urdu press and it was made compulsory that the name of the Editor, Publisher and Owner along with the address should be on the first page of the newspaper So that the government can recognize the authority of these papers. It was named as Press & Publication Ordinance (PPO). So, the era before the division of India was a tough one for the mass
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communication as many press owners and editors faced punishments several times under this ordinance.

AFFECTS OF MEDIA EVOLUTION

Thesis Statement
From print, broadcast to digital, technology transforms the media of news reporting, now the general public have faster and easier accesses to almost any content displayed by word, image, sound and video. In addition to display methods, the evolution of news media also affects a great deal on news reporting particularly with the rise of Internet. The old pattern of agenda setting, content preference, and audience engagement has been substantially reshaped in this evolution.

AFFECTS ON:- NEWS REPORTING

Technological change in communication profoundly affects how news is delivered. From print to digital, media evolution has facilitated an exponential growth in news patterns and freedom of our choice. Media, being not mere a carrier of information, also exerts a subtle influence on the activities and values of audience. Most importantly, the advent of new media has redefined the role of journalists. The project provides an overview of media evolution: from print, broadcast, to digital, and discuss how each media technology reshape news reporting and influence the general public.

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Three most important developments in timeline:

Mid-19th to 1990s The invention of paper and printing facilitated the disruptive innovation in media history. The transmission of information went massive and became independent of geography. This was the point where journalism bred itself yet still in the style of storytelling. The adoption of telegraph in journalism encouraged the booming of news agencies. The high cost of telegram motivated the shorter style of news reporting and its signal instability forced reporters to put core message on the top of every piece and decrease importance of information in subsequent paragraphs. We called this type of news

reporting inverted pyramid, which was defined as a symbol of ripeness of journalism. Broadcast media introduced visual and sound elements into news reporting, which accomplished diverse forms of journalism. Visual-audio technology enabled event recurrence and characterized media with the capability of conveying underlying messages over pure information data.
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The popularization of broadcast media soon made its domination in media market and generated deep influence on the public. Over-exposure to mass media cultivated similar outlook of world, life, value and moral criteria among the public. Big Media became the good player of agenda setting, or even watch dog in countries that have control on news content. The homogeneity process reinforced the mainstream and eliminated the dissent. As passive receivers, audience gradually lose their initiative in expressing opinions, while on the other hand, the wild spread of information drove their need in variety and freedom of expression. The dilemma created tension between news producers and receivers, waiting for a trigger to rebuild their relationship.

Mid-1990s to 2009
The rise of Internet provided the trigger. The rise with the internet boom of the mid-1990s reconstructed the media market. The move to an online format exacerbated trends in traditional media. Facing a group of active audience, pure propaganda or any content that doesnt cater their taste would be selectively eliminated. Old medias made haste to build their online presence but meanwhile theyve struggled to suppress the new media from threatening their leading status. New medias concentrated on competing for emerging market. But the common goal for old and new media is to making up news reporting with network attributes: faster, shorter, entertaining, interactive, and easier to share.

At the same time, as the significant spin-off of new media, BBS, forum, and blog open the channel for general public; everyone has been equipped to be a creator and distributor. Professional journalists are no longer the absolute transmitters, Big Media lost its power to lead or filter news reporting. Journalism is seen as more of a technically aided conversation, rather than a top-down monologue. However, when people are welcoming the benefit brought by new media, they are also facing the severe challenge: the credibility of participatory journalism. 2009 to future

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Extended from Blogging, weve witnessed the endless emergence of Wemedia (or Self-media, To be double checked), which refers to those more personal, grassroots, networking-based media such as Twitter, Facebook, Microblog, Podcasting, GroupMessage. As our social network expands, the effect of We-media reaches its geometric growth. Theyve become the great source of news reporting, and feedback from these media also dramatically affects journalism. Cases found within global scope (news of Bin Ladens death, Yao Jiaxins trial) can illustrate the positive and negative power of We-media.

IMPACT OF MEDIA EVOLUTION ON JOURNALISM

Technological change in human communication profoundly affected journalistic activities. From print to digital, media evolution has facilitated an exponential variety in news reporting patterns, including its agenda setting, content collection, production and distribution. More substantially, it has redefined the relationship between journalists and audience, especially after the advent of digital media. This paper provides an overview of media evolution from print, broadcast, to digital, and discusses the supervening social necessities behind adoption of each new technology. It emphatically expatiates on how each media technology has affected traditional journalistic undertaking and fostered new forces of journalism: grassroots journalism. The paper also predicted the future collaboration between professional and grassroots journalism and layouts the framework of a multi-dimensional convergence of old and digital newsrooms.

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ETHICS OF PRINT MEDIA

Print media is most likely what you come in contact with on a daily basis. It's how you get your information, and they include everything from newspapers and magazines to billboards and posters. Journalism's top priority is to ensure that information provided is truthful and accurate, that professional ethics is understood and practiced. This is achieved by making ethical decisions that apply to the media.

Significance
o

Because being a credible source in the world of journalism is so important, so is ethics. At every college that has a journalism program you will find at least one course on ethics that is required for students to take early in their undergraduate programs. This shows how huge of a role ethics plays in the field of journalism.

Even the most well-known journalism organizations worldwide, such as the Society of Professional Journalists (SPJ), have thier own ethical codes
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its members and others are encouraged to follow. SPJ's Code of Ethics is accessible through its Web site.

Follow the Code

o

The SPJ Code of Ethics consists of four main points, along the lines of looking for and reporting truth, decreasing harm, acting on one's own and being accountable, according to the Web site. Each of these points have points that provide further explanations for how to use the Code as a guide for ethical behavior.

The code, as SPJ states, "is intended not as a set of "rules," but as a resource for ethical decision-making." The organization also states that under the First Amendment---the freedom of speech, religion, the press, petition and assembly---its code is not and cannot be legally enforceable. It is merely a resource for journalists and others to use as they are producing information for the print media.

Ethical Elements
o

"Media Ethics: Issues and Cases" lists in several ethical news values believed to be as equally important as the qualities journalists use most that define what is newsworthy, such as timeliness and prominence. On the list is accuracy (combining correct facts with correct words), reciprocity (the Golden Rule) and diversity (covering every aspect of the population fairly).
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Combining these ethical elements with the more familiar elements,TIPCUPS = timeliness, interest. prominence, conflict, unusualness, proximity, significance, makes for a more wellrounded and credible story.

PRINT MEDIA CHARACTERISTICS

Pinted materials Print media is a form of communication that comes in many different types. Messages can be sent out and printed on fliers, in newspapers, billboards and magazines. Once the pieces are printed, they are then distributed to their proper audience. The communication can be used to send information on promotions and updates on news or events.

Production Time
Over the years, print media has become a less attractive source of information because of the time it takes to produce. In order to print materials for distribution, the layout and copy of the materials need to be written and thoroughly checked for error before it's sent to the printers. Once the copies are printed, they are then posted for mail delivery or dropped off at the newsstands for purchase. It can take an up to seven business days from the time the copy is written, until it reaches its audience.

Frequency of Distibution
The frequency of distribution is a key characteristic of print media. Some publications that contain time-sensitive information such as newspapers
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and magazines can be distributed daily, weekly, monthly, quarterly and even annually. Other media like newsletters, booklets and pamphlets can be distributed as needed for individuals to pick up at their own discretion.

Types
Print media comes in a wide variety of options. The most commonly circulated forms are newspapers, magazines and fliers. The content of the pieces vary and are distributed using different timelines and in different amounts. The content communicates the news, gossip, retail sales or whatever message the sender is trying to convey.

CHALLENGES OF THE PRINT MEDIA

Television and the Internet pose serious challenges to print media.

o Conventional wisdom in the media industry holds that existing, established forms of media adapt to new and emerging forms. For example, radio adapted to the emergence of television rather than simply fading away. The emergence of the Internet and the plethora of information available, however, have led many to question the conventional view. Media executives and scholars agree that newspapers, magazines and other forms of print media face serious challenges in terms of readers, revenue and even their existence.

Declining Readership
o

Readership of many forms of print media, especially newspapers, has been declining for years, and the Internet may have only accelerated this trend. Further, newspapers have largely failed to reach the younger,
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technologically savvy generations. The Press Council of Australia, in its 2006 report on the State of the News Print Media, reported that people over the age of 50 comprise nearly half of the readers of Australia's newspapers. In the United States, the Pew Research Center for People and the Press, a nationally known public opinion research firm, reported in 2008 that the Internet surpassed newspapers as a news source. Television, however, remained the most popular source of national and world news.

Lost Revenues
o

As the print media lose readers, shrinking their circulation figures, it becomes increasingly difficult for newspapers, magazines and other print outlets to sell the advertising space that provides the bulk of their revenues. Media consultant Jack Myers, writing for the online Huffington Post, reported that newspaper ad revenues plunged an estimated 40 percent since 2001, based on projected revenues for 2010. Further, Myers reported that magazine advertising revenues fell between 12 and 15 percent in 2008. Even the "Yellow Pages" telephone directories are not immune from this trend, as Myers projected declines in their ad revenues, as well.

Long-Term Survival
o

Declining advertising revenues have threatened the very existence of many print media outlets, especially newspapers. As revenues fall, many newspapers have slashed their editorial staffs and shuttered news bureaus. Some print media outlets have even ceased operations. The trend may continue, with more newspapers and other print publications
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going out of business. The Press Council of Australia cited a 2006 report by the London-based magazine "The Economist," which predicted the extinction of at least some of the United Kingdom's newspapers. The worrying trends and threats to their viability have many print media executives scrambling to develop news business models and methods to adapt to and prosper in this new media environment. Newspapers have increased their online presence, according to a survey of news media consumption by Pew Research; however, growth online has not offset newspapers' losses in print readership.

OVERVIEW OF THE TWIN CRISES

The newspaper industry is facing two simultaneous crises stemming from the decline in newspapers circulation and advertising revenues and the rise of widely available and free online news content. The United States suffered the most severe fall in circulation, and advertising revenues dropped 8.7 percent in the period from March to October 2010. This reduction in revenues from advertising was further exacerbated by the financial crisis of 2007-085. The entrance of alternative online sources of news also marked a new era of digital competition. Consequently, one of the principal challenges for news organizations became the establishment of new, alternative revenue streams that do not rely solely on the traditional print model.

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points to three important factors that contributed to the twin crises. Print circulation has been declining for decades, but consumer behavior began to change most rapidly with the increasing use of the Internet (see Figure 2). The breadth of information available online, and the opportunity to personalize news consumption according to individual interests, coupled with being able to get news updates several times a day as opposed to once in the morning over coffee pushed audiences online for their news. This provides a clearer idea of how steep the decline in circulation for American daily newspapers has been in the past decades.

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A second critical factor is the fact that the majority of online content is available for free. The sources are innumerable; from opinion blogs to online only newspapers, such as The Daily, a newly launched newspaper customized for Apples iPad users. News information websites and applications continue to grow exponentially. The idea of getting news for free online became even more appealing during the financial crisis of 2007-8, a period when newspaper circulation in the United States dropped 30 percent. Thirdly, changes in consumer behavior were accompanied by the migration of advertising budgets from the print to the online realm, albeit at a fraction of the revenues provided from print advertising sales. Scott Karp, co-founder & CEO of Publish2, a content distribution platform, refers to this phenomenon as the 10 percent problem. Taking The New York Times as an example (prior to
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the pay wall introduced in March 2011), Karp points out that print circulation is about 10 percent of total audience reach, while online advertising revenue is about 10 percent. The result is a nearly perfect inverse relationship of what online revenues and print advertising should generate given their respective readership. The combination of these three factors, and their consequences, has led to what we now know as the twin crises. News organizations today are faced with one complex, central challenge: dealing with declines in print circulation and advertising revenues, while facing and competing with increasingly available non-monetized online content. The twin crises have a range of consequences for the industry. First, job losses continue to occur and older, more experienced, journalists that cost more to retain, are becoming easily dispensable. Second, we have witnessed a decline in journalistic quality and the rise of down-market or popular publications. It is interesting to point out that the growing commercial success of tabloids8 has been linked to the broadening of the reading public and the inclusion of new, lower-income audiences.

Finally, news organizations are turning to more competitive and qualitative approaches as in the cases of pay wall launching and further ownership consolidation, with mega industry players acquiring smaller ones. However it should be noted that even during this global economic downturn, newspaper circulation worldwide fell only slightly9. If we take into account countries like Germany, Austria and Brazil, it is evident that publications are thriving. Newspapers circulation in Brazil has grown steadily since 2004, reaching a record high of 72.5 copies sold daily per 1,000 adults in 200810. German and Austrian markets have shown strength compared to other Western markets. In fact, hardly any other market in the world generates higher incomes from advertising and sales than the

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German press11. Similarly, the Austrian newspaper market was hardly hit by the financial crisis; circulation decreased by only 2 percent from 2007 to 2009. Figure 4 presents an overview of paid-for daily newspapers average total daily circulation worldwide, from 2000 to 2008:

Efforts to close some publications content behind a pay wall, limiting it to a targeted audience that would be willing to pay a premium have not always succeeded. Major publications such as The New York Times and the Greek newspaper Naftemporiki haven proceeded to placing their online content behind a pay wall. However, there is no assurance that by imposing a fixed charge on their services, audiences will follow and companies will generate desirable revenues. It would take a niche market to value a rare and specialized product in order to allow for paid-for content. For instance, the Wall Street Journal and the Financial Times produce in-depth analysis, feature reports and commentary by experts and public intellectuals, targeting a niche audience of business people who are willing to pay a premium for this unique
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information. This content is difficult to find free online, and under these circumstances interested readers do pay for content. Nevertheless, successful cases of publications charging for their online content are still the exception, as the vast majority of online material is still widely available for free. A full discussion of the issues around online monetization can be found in the next section. The decline in circulation in some countries resulted in further declines in advertising revenues. Publications have tried to find ways to make up for the loss of print editions through alternative investments, either in the media or other unrelated fields13, or through the monetization of online content which, as mentioned, is not always easy or successful. The following section provides further details on the approaches to generating revenues from alternative, non-print newspapers, sources.

REVENUE ALTERNATIVES
As a result of changes in consumer behavior and declines in revenues from advertising, newspaper-publishing companies, particularly in developed Western economies, are looking for alternative sources of revenue. Even in emerging markets like Brazil, where newspapers circulation grew by 25 percent in the last five years14 and advertising revenues are still increasing, companies are seeking to decrease their strong dependence on print. To deal with this challenge, news organizations are diversifying their business strategies and moving beyond news aggregation and distribution; primarily
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seeking to invest in other media and non-media businesses and strengthen newspapers brand names. The following section uses branding and business type to differentiate between the sources of alternative revenue streams.

The Brand Effect There are various strategies to increase alternative revenue streams by making use of the newspapers brand name, or using the Brand Effect. The idea behind the brand effect is that newspapers develop significant brand loyalty from their readers and often come to be associated with certain attributes; reliability being a central one. An example of the brand effect is the creation of brand families to carry on the newspapers name to new products. There are two general ideas behind newspaper companies efforts to stretch the use of their brands: brand extension and customer identification.
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The business model of a newspaper is to assemble information, place it in context and provide readers with in-depth analysis. Finding new ways to present and sell information using an already established brand is an alternative revenue stream being pursued by publications we spoke with. The idea of brand extension is similar to product-line extension, defined as the appearance of another product that a company introduces within the same market after its existing product. Newspapers are in the information market and their major products are news and information. The brand value is an expression of the trustworthiness readers feel toward the newspaper or the experience of customers regarding the quality of its information. Some newspaper companies, including Germanys Frankfurter Allgemeine Zeitung, offer huge online archives with powerful search engines behind a paywall. The information is presented in a differentiated, more detailed way than on its newspaper. Niche consumers, who seek specific information, like an academic or a financial analyst, may be more willing to subscribe than a private consumer who wants simple news updates. Many other newspapers offer specialized information with regards to, among other areas, career search, education, health, real estate and cars. They offer this information through special theme portals, in a more detailed manner than is presented in their regular publications.

The Chilean newspaper, El Mercurio, is currently setting up a second website which is entirely behind a paywall. The content is specialized and targeted to financiers, lawyers and other professionals with a specific need for niche analysis and information. The information is still the main product, but it is presented and offered in different ways to attract new customers and to make old customers start paying, or spend even more for the brand they are accustomed to.

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Another way of extending the newspapers brand is to use its name on other product labels (i.e., books or wine), adding value to that specific product since it is linked to an already established and trusted brand. Newspapers can offer their expertise in certain areas, including book reviews and food sections, and participate in creating revenue streams for book publishers or wineries based on their recommendations. Sddeutsche Zeitung, a German national daily newspaper, created the SZ Edition with famous books and movies that do not belong to the Blockbuster segment. Every month Sddeutsche Zeitung recommends news books and movies; customers can subscribe for the entire year or buy them separately through the newspapers website. The American newspaper, Financial Times, and the British The Guardian, use a similar model to sell reviewed books. The concept also seems to work well for The New York Times, which has an entire online store. It also has a food section with a high reputation, and uses it to generate additional revenue streams by selling wine from exclusive wineries outside the United States. In 2010, the Brazilian newspaper A Gazeta, owned by Rede Gazeta, launched a guide of medical specialties, a better quality catalog than the yellow pages, according to Director General Carlos Fernando Monteiro Lindenberg Neto. This has been an exceptionally important source of revenue for A Gazeta, as over 20 percent of revenues from print products come from the publicity embedded in these publications. The second general approach of newspaper companies to make use of their brand is not directly related to the media business. Companies organize interaction among people in the form of seminars, conventions, debates and workshops. This approach makes use of newspapers human capital and journalistic expertise to sell information and train individuals. Among many examples are: Greeces Naftemporiki, which holds a 35 percent share in a company that organizes medical conventions; HSM Education, a So Paulo based partnership of Grupo RBS and BR Investments, which offers executive training, editing courses and consultancy, and; Brazils media conglomerate Rede Gazeta, which promotes educational events and seminars debating political issues.
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There are also approaches that are not related to the media business, which use the brand but not the human capital or expertise of newspaper companies. Organizations try to use the brand loyalty established with their customers, in combination with their brand image, to sell merchandise. Switzerlands Neue Zricher Zeitung sells bicycle bags and The New York Times has an entire webstore selling, among other products, coffee mugs and pencils; many German newspapers also sell watches. Some Brazilian publications, including Noticia Agora, invest in embedding coupons, raffles and other promotions in their online and print product. Even though this section presents different ways through which news companies can diversify their revenue streams and generate new sources of revenue, there is no silver bullet to make up for the steep declines in advertising revenues.

Using and Acquiring Assets other than the Brand

There are two business models of strategic importance that do not use directly newspapers brand name. The first approach is to acquire or create new assets, including websites, TV stations, or radio stations. The second approach is to use existing assets more efficiently.

The first model is specifically related to digitization. On the one hand the digitization of media has become a major problem for print newspapers, but
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on the other hand it offers important revenue potential and is an investment area of strategic importance for media companies. According to Christoph Keese, President of Public Affairs of Germanys Axel Springer AG, the German digital sector has three distribution channels, which are important for newspapers: Internet, TV, and radio. Many newspaper companies around the world are invested in all three realms. For example, Grupo RBS, one of the leading media groups in Brazil, headquartered in the southern city of Porto Alegre, owns 18 TV stations, two community TV stations, one rural channel, 25 radio stations, eight newspapers, four Internet portals and other media businesses. There are three generic models on how to monetize (charge for) online content. The first model is based on subscriptions. The customer consumes certain content for a certain period of time yearly, monthly, weekly or daily after paying for access to the content behind a paywall. This model is also called market places. Many newspaper companies, like The Guardian or Axel Springer AG, started online-dating websites (parship.de) or job search (stepstone.com) websites. Another model is based on commissions. The commission has to be paid, if an intermediation between a customer and the supplier takes place. The newspaper company offers a performance-based marketing platform, which can be subsumed under ecommerce. The website gets a fixed amount or a percentage of the revenue of the arranged business from the provider of the goods and services offered on the website. A very successful example for such a market place in Germany is Springers myhammer.de, where craftsmen can offer their services. The third and most important model is based on advertising revenues. In 2011, the global market for Internet advertising was projected to reach U$71 billion17. Idate, a consulting group specialized in media, estimated an average growth for online advertising of 15.5 percent between 2010 to

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2012; the total advertising market is predicted to increase by only 4 percent during the same period. The idea of online advertising is similar to that of print advertising. Websites offer space where their advertisers can put their ads to inform potential customers about their products19. However the Internet offers many advantages in comparison to newspapers, because Googles technologies, e.g. adsense and adword, make it possible to tailor ads for specific customers and for specific regions of the world. It becomes easier to target specific customers online, and advertisers can reasonably expect their ads to be more effective20. Newspaper companies can generate revenue streams from online advertising by creating content portals; for example Greeces IMAKO Group offers a travel website. The customers, in this case Greek hotels, can place their ads specifically next to the search results of the customer who uses the IMAKO Groups website to book a holiday trip in Greece. Another interesting approach to increase revenues from online advertising is to create social networks with a distinct local audience, making it easier for advertisers to target customers interested in local products. For instance, Germanys Neue Osnabrcker Zeitung offers a Facebook-like website for people in its circulation area. This is highly attractive to smaller local advertisers because the audience is very distinct and they can tailor their ads to people in this region. This results in more effective advertising campaigns. Television is the second major digital channel newspaper companies invest in. Many newspaper companies started to invest in TV in the last decade to acquire expertise regarding news production and access to its advertising revenues. For example, PRISA, the leading Spanish media company, acquired 95 percent of the leading Spanish TV company, Sogecable, in 2008 and became a major player the Spanish pay and free-toview TV market.

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The budgets for TV advertising are much bigger than those for other types of media, making TV a very attractive alternative source of revenue for newspapers. Ioannis Liotos, Commercial Director of Greeces Naftemporiki, says, Many businesses have turned to television, even more so since TV stations decreased their prices in advertising thus making them a lot more competitive. Global revenue streams from TV advertising are expected to reach U$169 billion, 35.5 percent of the global advertising market in 201123. Revenue streams from TV advertising are predicted to increase by 3 percent per year on average in the period from 2010 to 2012; this is lower than the 4 percent increase expected for the total advertising market for the same period24. These numbers seem low in contrast to the growth of online advertising revenues of 15.5 percent. However it is important to note that TV advertising is a mature market, which, in 2011, is 2.5 times the market for Internet advertising. For instance, Brazil is one of the ten largest advertising markets in the world, with expenditure highly concentrated in broadcast television in the last decade TV networks have absorbed 59 percent of all advertising revenues in the country while other traditional media such as newspapers, magazines and radios, had their share reduced, generating significant constraints for their future growth. The country is a clear example where broadcast television remains the dominant medium contrary to trends in parts of the postindustrial world. Data from the National Association of Newspapers show that in 2009, 14.1 percent of advertising investment went to newspapers (60.9 percent to television) compared with 21.7 percent in 2001 (57.8 percent to television)25. Under this scenario, many newspaper companies are being pushed to increase their scope, seeking to become media conglomerates and attempting to access other, non-print, advertising markets. The main problem with merging newspaper companies and TV stations is regulation. Cartel authorities have to prevent the abuse of market power accumulated within single companies. This is a particularly sensitive issue for news companies in established democracies. The news industry is regarded as the fourth estate and therefore it has to be
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supervised very carefully. The investment in TV stations has to be differentiated from the investment in TV content production companies. The business of the latter is very diverse and covers everything from entertainment, e.g. TV shows and daily soaps, to news. Less problematic is the investment in TV content production companies, if they focus on content for entertainment and not news. The cross-ownership of newspaper companies and TV stations can become problematic if the merged company has a significant share of the news market. This critical level of market share has to be defined by the cartel authorities. For instance, Springer in Germany could keep its shares of its TV content production company Schwartzkopf, but it had to sell its shares of the TV station Pro7-Sat, a private TV station in Germany, in 200626. In contrast, the takeover of Sogecable by PRISA was approved by the Spanish stock market regulator CNMV, because PRISA only has minority stakes in the top free-to-air TV operators in Spain. The third distribution channel is radio, for which the major source of revenue is also advertising. In 2011 the global radio advertising budget is expected to reach U$30 billion, or 6.5 percent of total global expenditures on advertising. In the period between 2010 and 2012 global advertising revenues are predicted to grow at a rate of only 1.9 percent. Radio stations have suffered in recent years, especially in the United States, the most important radio market in the world with 50 percent global market share for advertising28. It has become increasingly difficult for radio stations to gather listeners for advertising-based radio programming because of the rise in online information bases29. In contrast to the small growth rate of radio advertising predicted for 2012, online advertising is expected to increase by 15.5 percent in the 2010 to 2012 period. The second approach to generate alternative revenue streams, while not making direct use of newspapers brand name, is to use existing assets more efficiently. Newspapers with big printing capacities, like Greeces Naftemporiki,
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can offer competitors with smaller circulation to do the printing in their printing facilities. Printing and distribution are no

competitive edges of newspaper companies. Hence, this scenario is a win-win situation, decreasing costs for all participants. The idea is that larger capacities realize economies of scale. This might even lead to mergers of printing facilities like Prinovis, a joint venture of Germanys Bertelsmann Arvato and the publishing companies Axel Springer and Gruner & Jahr.

BIBLIOGRAPHY
www.google.com
www.naukrihub.com www.exchange4media.com www.tamindia.com www.agencyfaqs.com
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www.indiantelevision.com www.yahoo.com

http://www.niemanlab.org http://structureofnews.wordpress.com/ http://www.economist.com/node/17853358 http://www.iab.net/ http://www.lrb.co.uk/v32/n24/john-lanchester/let-us-pay http://www.journalism.org/analysis_report/how_news_happens http://stateofthemedia.org/ http://people-press.org/report/652/ http://www.fcc.gov/ownership/studies.html http://www.warc.com/ http://www.wan-press.org/article18612.html http://www.wan-press.org

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