Despite major newspaper failures across the U.S. and predictions of doom, not everyone is prepared to write the obituary for this industry. In fact, Borrell Associates predicts that the industry will experience revenue growth of 2.4% in 2010. And Borrell Associates believes that by 2014, this sector (without online revenues) could be worth as much as $39 billion. This represents growth of 8.7% from 2009. How will the industry engineer this turnaround?
Here’s what Borrell Associates points to:
- Newspapers have been in the online industry long enough to figure out the best way to monetize their online efforts. Look for free online access to change.
- Small, local newspapers have positioned themselves to take advantage of a wider base of advertisers.
- Newspapers have learned to be more proactive and customer-service oriented to keep their clients satisfied.
- The nation’s emergence from the recession and higher general spending will also improve the newspaper industry’s bottom line.
The Borrell Associates report indicates that larger newspapers may continue to suffer. Overall, the key to future success will be how well these media vehicles can reinvent themselves to serve both large and small advertisers.[Source: Borrell Associates release, August 7, 2009]