CHICAGO, April 7, 2014 /PRNewswire/ --Today, Zacks Equity Research discusses the Publishing, including New York Times Company (NYSE:NYT-Free Report), Gannett Co. Inc. (NYSE:GCI-Free Report), McClatchy Company (NYSE:MNI-Free Report) and Journal Communications, Inc. (NYSE:JRN-Free Report).
Industry: Publishing
Link: http://www.zacks.com/commentary/32032/
The U.S. publishing industry has long been grappling with sinking advertising revenue, and the global economic downturn only worsened the situation. The downturn in the publishing industry, which has been going on for the last few years now, came in the wake of declining print readership as more readers choose to get free online news, thereby making the print-advertising model increasingly under pressure.
Changing consumer preferences and the advent of new and innovative technologies have been altering the way news is read and offered. Readers now have more choices to collect and read articles and news through devices such as netbooks, tablets or other hand-held devices.
These have been weighing upon the print newspaper industry, as advertisers now get low-cost avenues through which they can reach their target audience more effectively. An alternative and stable source of revenue is the demand of the time to salvage the dwindling print newspaper industry.
Let's have a look at what is happening in the publishing industry and how newspaper companies are adapting with the changing scenarios to keep themselves alive in the race for survival.
Circulation Falling Prey to Internet
Newspapers have fared far worse than magazines, as web-based news options have gotten the upper hand in recent years. The two-decade-long erosion in newspaper circulation reinforced the decline in advertising revenue. Circulation has also fallen prey to budget cuts with newspaper companies reducing the number of print pages and newsroom staff to combat the downturn.
Despite the fall in newspaper circulation, some companies are reporting improved revenue from circulation due to the increase in subscription and newsstand prices. On the flip side, while the increase in prices for print editions is generating more circulation revenue, it is also resulting in subscriber losses due to the shift in preference for free online content.
Waning Newspaper Advertising Revenue
Advertising volumes are still under pressure as advertisers keep shying away from making any upfront commitments in an economy which is still not completely awoken from a state of hibernation. According to data released by the Kantar Media Intelligence, advertising expenditures during 2013 fell 3.8% in Local Newspapers and 3.6% in National Newspapers due soft advertising demand across Financial Service, Retail and Motion Picture marketers.
Print advertising revenue at The New York Times Company (NYSE:NYT-Free Report) dropped 6.3% in the fourth quarter of 2013. At Gannett Co. Inc. (NYSE:GCI-Free Report), publishing advertising revenue fell 10.3% in the quarter. Print advertising revenue tumbled 8% at The McClatchy Company (NYSE:MNI-Free Report). Publishing advertising revenue dropped approximately 11.8% at Journal Communications, Inc. (NYSE:JRN-Free Report) during the quarter.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Get the full Report on NYT- FREE
Get the full Report on GCI- FREE
Get the full Report on MNI- FREE
Get the full Report on JRN- FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumedthat any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein andis subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Logo- http://photos.prnewswire.com/prnh/20101027/ZIRLOGO
SOURCE Zacks Investment Research, Inc.
