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This paper examines the current state of the newspaper industry in light of decreased adverstising revenue as a result Internet editions of newspapers. First, the paper discusses the economic downturn in the US economy and its impact on the newspaper industry. Then, it considers how the political environment impacts newspaper sales and profits. In particular, relevant legislation and regulations impacting the newspaper industry are noted, such as freedom of speech (First Amendment rights), advertising ethics, and the relevant communications and taxation codes. Next, the paper addresses how recent technological developments have affected the industry, particularly content delivery through the Internet. Finally, the paper examines how the democratization of news will potentially influence this industry.
From the Paper:"The technological environment in the newspaper industry was, for a long time, a minor factor subject to little change. In the past ten or fifteen years, however, technological developments have turned the newspaper industry on its ear. The first major implication for technology is the shift in content delivery, and consequently advertising revenue, from print to the Internet (The Economist, 2006). This shift has been largely consumer-driven, as the Internet has become diffused throughout society and become the preferred means by which information is disseminated.
"The emergence of the Internet has impacted the newspaper business is two key ways. The first is that the Internet allows newspapers to broaden their markets and increase their circulation. The second, however, is that the Internet hurts advertising revenues. Online readership delivers much less per capita advertising revenue than does print readership, and the number of new readers does not account for that gap. Furthermore, advertisers must choose between different media options. While the Internet advertising market should in theory operate in equilibrium with the print advertising market, the Internet also represents a new competitor for a share of advertising dollars that is not increasing. Most newspapers do not make money from their online operation."
Sample of Sources Used:
- Perez-Pena, R. (2009). Newspaper ad revenue could fall as much as 30%. New York Times. Retrieved March 19, 2010 from http://www.nytimes.com/2009/04/15/business/media/15papers.html
- BEA. (2010). Gross domestic product: Fourth quarter 2009 (second estimate). Bureau of Economic Analysis. Retrieved March 19, 2010 from http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm
- No author. (2006). Who killed the newspaper? The Economist. Retrieved March 19, 2010 from http://www.economist.com/opinion/displaystory.cfm?story_id=7830218
- Musil, S. (2009). New York Times to charge online readers. CNN. Retrieved March 19, 2010 from http://edition.cnn.com/2010/TECH/01/19/cnet.new.york.times.online.charge/index.html
- Sandoval, G. (2007). The New York Times drops online subscription service. CNet. Retrieved March 19, 2010 from http://news.cnet.com/8301-10784_3-9780063-7.html
Cite this Analytical Essay:
Trends in the Newspaper Industry (2012, November 11) Retrieved March 31, 2020, from https://www.academon.com/analytical-essay/trends-in-the-newspaper-industry-152013/
"Trends in the Newspaper Industry" 11 November 2012. Web. 31 March. 2020. <https://www.academon.com/analytical-essay/trends-in-the-newspaper-industry-152013/>