Newspaper Decline (reasons, numbers)

factors for the decline of newspapers in USA and Europe

The drastic decline of newspapers, especially in the U.S. and Europe, is driven by several factors:

• The Rise of Digital Platforms: The internet's growth in the 1990s provided readers with a wider range of media choices, challenging newspapers' dominance as the primary news source.

• Speed and Visual Appeal of Competitors: Television and the internet deliver news faster and with more visual appeal compared to the physical constraints of newspapers. These competing mediums offer advertisers moving images and sound, while internet search functions allow for targeted advertising.

• Loss of Advertising Revenue: Newspapers have lost significant revenue to online platforms like Google and Facebook. In 2017, the estimated advertising revenue for the U.S. newspaper industry was $16.5 billion, a 10% drop from the previous year and a 66% decrease from its peak in 2000.

• Decline in Print Circulation: The shift to online news consumption has led to a decline in print circulation, further impacting newspapers' revenue. Between 2005 and 2021, about 2,200 American local print newspapers closed.

• High Fixed Costs: Newspapers face high fixed costs associated with printing presses, delivery fleets, and union contracts, while online competitors often have lower overhead.

• Audience Fragmentation: The trend of "fragmentation" in media, where large outlets are replaced by smaller, specialized organizations targeting specific interest groups, has also affected newspapers.

• Generational Shift: Younger generations are less likely to read print newspapers, opting for online news sources.

These factors have contributed to the closure of thousands of newspapers, creating news deserts and impacting the availability of local news. In response to these challenges, newspapers have explored various strategies, including combining resources, focusing on online publications, and seeking alternative funding models like non-profit structures, philanthropy, and direct reader revenue. However, the effectiveness and sustainability of these approaches vary depending on factors like market size, competition levels, and government support.

Declining Numbers in "Old Media"

• Newspaper sales declined by 5% in 2014 compared to the previous year, and saw a 20% drop over the most recent five-year period at the time of writing.

• Advertising revenues for newspapers in 2013 fell 8.2% compared to the previous year and were 17.9% lower than five years earlier.

• For every seven dollars lost from the decline in the sales of advertising space, newspapers make barely a dollar from digital ads.

• Between late 2019 and May 2022, the U.S. saw the loss of an average of two newspapers per week.

• If the trend continues, a third of newspapers will be lost by 2025.

• Between 2009 and 2019, over 300 local newspaper titles closed in the United Kingdom.

• In 2008, newspaper ad revenues dropped by 23%.

• In 2005, 70% of older Americans read a newspaper daily, while fewer than 20% of younger Americans did.

• In 2008, The Independent announced job cuts and in 2016 its print edition ceased circulation. In January 2024, the parent company of the Evening Standard sold a controlling stake in the newspaper and announced a 24% decline in 2008 ad revenues. In September 2024, the Evening Standard printed its last daily edition, becoming a weekly newspaper.

• Total estimated newspaper industry advertising revenue in 2017 was $16.5 billion, a 10% drop from 2016 and a 66% decrease from its peak in 2000.

Despite the decline in ad revenue, 67% of 165 independent news media outlets surveyed in middle-income countries still consider this revenue a "significant source of revenue". 38% of these outlets reported adverts as their single most important revenue source. This suggests that while old media is declining, it still represents a sizable portion of the news media landscape.

It is worth noting that information about the decline of other specific "Old media" formats like FM radio and TV networks is not included in the sources.