'Enterprise revenues' offer newspapers a lifeline for the future
The article explores the question of whether journalism can survive the decline of print. As the article states "Historically, regional newspapers operated in local near-monopoly situations with respect to local advertisers and readers. But the internet allowed the development of pure-play classified sites that extended beyond print circulation areas. They built a pre-eminent market share of “eyeballs”, which have provided a powerful barrier to entry to regional publishers who tried to maintain a local, or hyperlocal, alternative." The circulation of regional papers has been in decline for several decades, reflecting demographic change and increasing competition from other media. Cover price increases have been used to keep circulation revenue decline to single digit percentages.
- digital revenues accounted for just over 22% of regional advertising revenues in 2016
I think audience reach and demographic are key to determining online success, especially through “enterprise revenues”, those derived from selling additional goods and services to a newspaper’s readership base. More people are reading newspapers than ever before. But that increased audience is doing so through access to free content on newspaper websites. And publishers have yet to find an online circulation model that can replicate the circulation revenue stream they made from print.
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