Busniess Challenges for a Newspaper company21 July Written by - Priya Ranjan Mohanty Tagged as - Blog
Newspaper printing business is being considered as a mature business today. Most of the popular newspaper publishers are in a phase of transformation. The rise of digital media is posing questions on the sustainability of the newspaper printing business. The time is not far when the printed newspaper will become just a luxury or choice of a very few. Just see what happened to the wristwatch industry after the digital watches came. I mean analog wristwatches are still being sold but they have become fashion products. I am afraid the same is going to happen to newspapers. It is already happening in fact. As time passes by, the number of readers will decrease. The newspaper may become a dying industry. Here in this article, we will highlight a few challenges that Newspaper companies are already facing or are going to face in foreseeable future.
1. Decline in readership:
The physical newspaper readership has been declining all over the world. Especially in countries where mobile & internet penetration is highest the population is preferring the digital news medium over physical papers. Social media is playing a greater role here in making the news content viral. In this digital age, newspaper companies are going to face even bigger challenges in the future.
2. Expansion / diversification:
Expanding the business into other areas like e-newspaper, mobile app & website are some of the common paths a traditional media company follows to stay in the game. However, it is not so easy to just get a constant source of revenue right away because the competition is fierce and you are already late in the game.
3. A decline in advertisement revenue:
Advertisement revenue is the major source of income for any newspaper companies. Typically the advertisements contribute to 60-75% of the total revenue a newspaper earns. However, today if you ask any advertiser about their preference for advertisement mediums you will hear many things but newspaper. Because digital channels are giving the advertisers quick and measurable results their preferences are changing.
4. Need for cost-cutting:
With the declining reader base and advertisement revenue, cost-cutting becomes necessary to keep running the show. Cost-cutting starts by identifying the areas where the cost can be cut. The most obvious areas of cost-cutting are usually man-power cost and consumables cost.
5. Manpower cost:
Manpower cost can be optimized with the automation of different processes involved in newspaper production. And automation needs significant investment in technology. Whether to invest or not invest in automation becomes a dilemma for the decision-makers when the future outcomes are not certain. In our experience, all the leading media houses have made a significant investment in automation and are reaping its benefits already. Sygina is among the rarest technology companies who have expertise in automation projects for the leading media house. Just give us a call or write to us if you are interested.
6. Cost of raw material:
Cost of raw material is the major cost involved in the production of the newspaper. About 60% of the newspaper cost goes into consumables. Optimizing this cost by even 1% can save crores of money every year for regional newspapers also. Sygina helps newspaper publishers in optimizing cost with the help of iReap, an MIS software built for newspaper companies. With iReap, you can track all key parameters of your press sites and get insights on process improvement. Contact us to know more.
7. Profitability challenge:
The profitability of a newspaper company depends on multiple factors like Cost of production, Advertisement revenue, Subscription revenue, etc. Maintaining profitability is crucial yet challenging. Looking for new avenues of income is encouraged. Cutting down the cost consistently is a good practice to stay profitable.
8. Technology challenge:
Implementing new technologies like automation & business intelligence becomes difficult for mid-sized newspapers because they cannot afford the cost involved. We at Sygina strive to bring affordable technology solutions for newspaper companies who cannot afford to go to technology conglomerates for building their technology. Contact us to discuss the possibilities.
9. Managing multiple locations:
Newspaper printing setups are often based out of multiple locations publishing in multiple languages as well. This adds up to the complexity as all the printing locations must work in sync to deliver the next day’s newspaper. Sygina specializes in connecting multiple press and pre-press sites to ensure the operation runs smoothly without any breakdown. Get in touch to explore more.
Sygina takes pride in building world-class technology for media houses like BCCL. Sygina’s solutions cater to a range of areas like workflow management of the newspaper printing, MIS for publishers & automated ad booking platform. We can build custom solutions for your newspaper house. Just give us a call and we can discuss the possibilities.
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