WORLD NEWSPAPER KEY INDUSTRY TRENDS

Transcription

1 WORLD NEWSPAPER KEY INDUSTRY TRENDS Press Freedom in Danger Digital Reality The Power of Print Industry Trends The Multi Media Opportunity ACAP Regaining control of content Compiled annually by W.A.N. and Zenith Optimedia 2008 World Association of Newspapers

2 World Press Freedom - an update WORLD PRESS FREEDOM AN UPDATE MURDERED JOURNALISTS 60 KILLED SINCE SEPTEMBER IN PRISON COUNTRY REPORT JAIL RANK 1. China:30 2. Cuba:24 3. Eritrea:14 4. Iran:12 2

3 INDUSTRY VIEW OR CONVENTIONAL WISDOM

4 GLOBAL PAID CIRCULATION GROWTH CONTINUES Circulations have increased over one and five years 4

5 PAID CIRCULATION: PERFORMANCE PER MARKET Daily Paid Circulation Status 2003/07 % 2006/07 % UP DOWN STABLE Total year 38% 5 year 58% Many countries report an increase in paid daily circulations 5

6 PAID DAILY CIRCULATIONS & COMBINED PAID/ FREE Period Paid Paid & Free 1 Year Year

7 PAID AND FREE: MAJOR MARKETS Paid Year I Year Spain % 0% Sweden % 3% Switzerland % 3% Denmark % 2% Netherlands % 3% Italy % 0% Canada % 2% France % 0% Korea, Republic % 1% Hong Kong % 2% Singapore % 16% UK % 3% USA % 3% Total 68,755 67,438 66,460 65,284 64, % 1.1% y/y 1.9% 1.5% 1.8% 1.1% 1.1% Free year 1 Year Spain % 7% Sweden % 27% Switzerland % 38% Denmark % 39% Netherlands % 102% Italy % 24% Canada % 7% France % 44% Korea, Republic % 5% Hong Kong % 13% Singapore % 56% UK % 50% USA % 10% Total % 20.2% y/y 29.22% 34.9% 25.0% 20.2% 20.2% 7

8 MARKET SHARE OF FREE AND PAID DAILIES Free Paid Free dailies = 23% of European daily circulations 8

9 NORDIC COUNTRIES COMPETITIVE THREATS 2007 Nordic Future and Change Study for Newspapers 9

10 NEWSPAPER WEB SITE USERS READ PRINT ALSO 52% of online newspaper readers spend the same time as they did previously with newspaper content 81 % of online newspaper readers have read the printed version in the last seven days 35% say they spend more time overall with newspaper content 10

11 GLOBAL NEWSPAPER MARKET Global Market US$ Billion CAGR 2.2% Global Market US$ Billion European (EMA) Market US$ Billion CAGR 2.9% European (EMA) Market US$ Billion PwC Global Media & Entertainment

12 FRAGMENTATION TV Digital Channels share increases as traditional TV channels diminish rapidly Audiences harder to reach! Year TV Share by Channel BBC1 25,6 24,7 23,3 22,8 22 BBC ,4 8,8 8,5 ITV 1 23,7 22,8 21,5 19,6 19,2 C4 9,6 9,7 9,7 9,8 8,6 five 6,5 6,6 6,4 5,7 5,1 Others 23,6 26,2 29,6 33,3 36,5 Thinkbox BARB 2008 UK Hours spent viewing = Falling 1% over 10 years But channel choice exploding > 88 free to air digital channels > 300 satellite & cable. ITV Commercial channel ratings share plummets 2002 = 50% = 30% = 20%.

13 SHARE OF ADVERTISING BY MEDIUM Global Digital Advertising Growth % Y/Y Change PRINT is the world s largest advertising medium 13

14 ALL INTERNET ADVERTISING REVENUE Change % 5 year Change % 1 year 12,568 17,743 25,481 37,161 49, % 33% Total internet ad market = $49 billion Search Google & Yahoo > 60% of total market 14

15 SHARE OF INTERNET ADVERTISING EUROPE & USA European internet advertising share The United Kingdom has 38.8% of total internet advertising revenue in Europe Germany has 22.9% France has 14% Europe vs the U.S. USA has 62% share United Kingdom has 15% Germany has 8% 15

16 ADVERTISING TRUSTED MEDIA Newspaper ads are trusted more than twice as much as online ads Newspaper ads are trusted more than three times as much as ads on mobile phones 16

17 NEWSPAPERS THE ULTIMATE BROWSER Go Online Read Newspapers Germany Decision Makers Premium Target group of decision makers remain loyal to print Newspaper readership 5% up in

18 NEWSPAPERS & DIGITAL SYMBIOTIC RELATIONSHIP Global Digital Advertising (Wired & Mobile) US $ Millions Newspaper Digital US $ Millions Newspaper Advertising Digital Revenue 2008 = $7 Billion Global Print CAGR 2012 = 2.2% European Print CAGR % Digital CAGR 2012 = 19.5% Sources: PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates Global Digital Advertising Growth % Y/Y Change % Change

19 NEWSPAPERS A GROWTH INDUSTRY Newspaper Print & Digital Advertising US $ Millions Newspaper Print Advertising US $ Millions Print CAGR 2% Digital CAGR 19% Print CAGR 2% Newspapers 2007 = $186 Billion Industry Global CAGR 2012 = 2.2% European CAGR % Digital CAGR 2012 = 19.2% Newspaper Digital Advertising US $ Millions Newspaper Digital CAGR 19% Sources: PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates

20 WHY MULTI MEDIA? 20

21 WHY MULTI MEDIA? The greater the input The greater the associations The greater the brain s recall Multi Media = Greater neural input Multi Media = Increased learning association Multi Media = Re enforced and improved recall 21

22 WHY MULTI MEDIA? 1 TV + 1 Print Ad TV + Magazines 2 TV Ads Total 22

23 WHY MULTI MEDIA? TV + Newspapers TV + Newspapers TV Solus 2 TV Ads 23

24 WHY MULTI MEDIA? Radio + Newspaper Newspapers & Radio Newspaper 16% 20% 25% 20% 20% 20% Base level Awareness Base level Awareness 24

25 WHY MULTI MEDIA? Newspapers & Online Online + Newspaper 24% Newspaper only 11% Newspaper only Newspaper + Online Visited a branch of Waterstone s to browse or buy after seeing advertising 25

26 NEWSPAPERS A DYNAMIC GROWTH BUSINESS Daily Circulations 1 year up 2.57% 5 year up 9.39% Print is the largest advertising medium in the world (40%) Daily Ad Revenues 1 year up 0.86% 5 year up 12.84% NEWSPAPERS ARE A GROWTH BUSINESS Daily Titles 1 year up 2.98% 5 year up 11.02% Paid & Free Circulations 1 year up 3.65% 5 year up 14.30% Newspapers Online 1 year up 20% 3 year up 100% 26

27 ACAP AUTOMATED CONTENT ACCESS PROTOCOL Is Copyright dead? No But copyright is under threat COPYRIGHT Copyright has worked for many years and continues to work today as the foundation of a range of highly successful business models which are crucial contributors to all national economies 27

28 ACAP AUTOMATED CONTENT ACCESS PROTOCOL 28

29 IN CONCLUSION Daily Circulations 1 year up 2.57% 5 year up 9.39% Print is the largest advertising medium in the world (40%) Daily Ad Revenues 1 year up 0.86% 5 year up 12.84% NEWSPAPERS ARE A GROWTH BUSINESS Daily Titles 1 year up 2.98% 5 year up 11.02% Paid & Free Circulations 1 year up 3.65% 5 year up 14.30% Newspapers Online 1 year up 20% 3 year up 100% Newspapers are a growth business 29

30 NEWSPAPERS THE ULTIMATE BROWSER Ultimately portable Extremely convenient as to time and place Engenders loyalty to title, not medium Widely accessible worldwide (off/ on line) Easily disposable and/ or Cut Out n Keep Very content rich Non perishable Review able Cheap to consume 30