(76) Suddenly, national newspapers are heading for that print cliff fall

Link: http://www.theguardian.com/media/greenslade/2016/may/27/suddenly-national-newspapers-are-heading-for-that-print-cliff-fall

 

Summary:

 

As advertisers turn their backs on newsprint, publishers who have been in denial about the digital revolution are confronted by an uncomfortable reality. Declining circulation figures tell us that people are switching week by week from print to screen. It is simply a matter of time before it becomes unprofitable to continue publishing newsprint papers. The EU referendum may have had a negative impact, but its effect has been marginal. The trend could not be clearer: advertisers have taken flight. It is time to recognise that the whole UK newspaper industry is heading for a cliff fall, that tipping point when there is no hope of a reversal of fortune. It does not mean the immediate closure of papers because the lesson from regional owners is that it is possible to continue publication through cost-cutting. Papers can be produced with skeleton editorial staffs. Indeed, Richard Desmond has been doing that at the Daily and Sunday Express and Daily Star for several years.

Key data/statistical information:

• The news that one of the strongest publishing companies, Daily Mail & General Trust, had to issue a warning to investors after its newspaper division reported a 29% fall in profits should be seen as a landmark moment
• It was largely due to a 13% decline in print ad revenues at its titles - Daily Mail, Mail on Sunday and Metro - over a six-month period
• There was some compensation in the growth of digital advertising at Mail Online, up to very healthy £44m, which must be seen in the context of the Mail’s print advertising of £80m

What's my view?

This article shows the downfall that the newspaper industry are facing. Publishers are now facing reality that the digital revolution will shut down the newspaper industry in the very near future.