Possible Growth for Newspapers
Warren W. Hannon
affiliation not provided to SSRN
The noble premise of the First Amendment and the critical relationship between a free press and a free society needs a new business model. Slow growth, let alone no growth, and declining circulation numbers can dampen investor confidence and trigger lay-offs and other cost-reducing measures.
A possible way for growth within the newspaper industry is by adopting a new business model in franchising sub-station outlets (of around 10,000 subscribers) into profit centers. They could let these centers operate under certain conditions that would allow the franchise to add local advertisments from businesses within their areas to the newspaper before delivery. They could also serve as a test market for national firms who wish to test their product in a controlled region.
Newspapers circulation is declining because the traditional printed product is losing its appeal in the competition with other new media and the cost to produce such a product daily increases as new methods and technologies appear. No matter how the industry improves the pre-press operation or speeds up both the press and production operations, the current final preparation of completes for delivery - and the delivery step itself - is going to force management to yell Uncle!
Keywords: Newspaper Business Model, Declining Circulation, Test Marketing, Product Samplesworking papers series
Date posted: June 10, 2008
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