Graphic Arts Magazine October 2018 | Page 28

Feature The good, the bad and the really ugly of newspaper publishing Tony Curcio Publishers try to innovate in clever and unique ways “It’s nice to see that the printed word is still, at least for now, the most powerful medium for reporting on the death of the printed word.” The Onion, May 2008 Let’s start with the bad news. Arguably no print-industry seg- ment is suffering more from electronic competition, social media platforms and 24-hour TV news programming cycles more than the printed newspaper. Coldset litho has remained the principal technology and in 2016 accounted for 84% of a world market valued by UK-based research firm Smithers-Pira at US$41.7 billion. But newspapers are indeed fighting back in many clever and unique ways. One successful solution includes hybrid litho presses with digital inkjet modules. The inkjet units can print versioned promotions, inserts or coupons – enticing advertisers to remain in that space. Variable-data programming as well as the versioning of editions in specific geographic areas are also being utilized. In addition, inkjet sales in the newspaper segment, which stood at US$740 million in 2010, will more than triple by 2020. But Smithers-Pira added that digital print is unable on its own to save printed newspapers. What it can do is provide viable new business models for existing and potential advertisers. The bottom line is that newspaper revenue worldwide was worth US$41.7 billion in 2016, as opposed to US$51.4 billion in 2010. Despite this decline, digital equipment is enabling at least some newspapers to stay competitive. The good news The good news is that newspapers (and press manufacturers) continue to adapt. On the equipment side, Germany’s Man- roland Web Systems remains the largest producer of newspaper presses in the world. Next is US-based Goss International which is responsible for a wide range of web presses. So, it wasn’t surprising that the two merged in August of this year. Both companies said that the combined firm will benefit from complementary geographic footprints, create extensive syn- ergies, ensure long-term viability, and provide value-oriented solutions. The Contiweb business of Goss International was not included in this transaction. The new company is operating under the name Manroland Goss Web Systems and will be the strongest supplier to web printing companies, including newspapers, worldwide. 28 | October 2018 | GRAPHIC ARTS MAGAZINE The birth of online editions In 1994, The Halifax Daily News became Canada's first daily newspaper to launch an online edition. Today, all daily news- papers in Canada and most of the over 1,000 community newspapers have an associated website. Digital readership of online daily newspapers continues to be strong, despite a number of newspapers implementing paid subscription mod- els to access content. As of 2016, Canada's daily newspaper circulation (paid and free) stood at 5.2 million copies on an average publishing day, and 31.6 million copies over the course of a week. There were 84 paid dailies in Canada that year and 14 free dailies, for a total of 98 daily newspapers. Digital circulation (paid and non-paid combined) for those papers that included this infor- mation in their circulation audits, increased 21% to 8.1 million per week. This 2016 daily newspaper “snapshot” is based on circulation sourced from audit companies (AAM, CMCA, CCAB) or owner-provided data. Also, daily newspapers con- tinue to be strong news brands with about 8 in 10 Canadians reading them every week. In fact, 50% to 60% of Canadians read newspaper content every day, with print as their primary source. All this being said, newspapers continue to face declining revenues as readers use other platforms and sources of content. Newspaper strategies for survival It’s early September and I’m reading a copy of the Star Metro Toronto on the way to work, as I normally do. This tabloid publication provides snippets of news along with printed QR graphicartsmag.com