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marioflory
Hey all!

Did you know that all the newspapers pay only the ink and the paper with the money you pay for your newspaper if you buy it at the kiosk or if you get it delivered to your home?
You don't pay any guy that's working at the editorial departement or at the printing plant. All these people are paid through the advertisements in each newspapers. The printed advertisements in the actual newspaper or the sometimes very numerous inserts (additional little brochures inserted in the middle of the newspaper) I think this is really impressive, as there are lots of people actually working for your newspaper and you are not paying them directly.
bogger
I think it is profit really, the kiosks themselves take 60 cent off each paper, and then the ink/paper costs another 40 cent, work out the rest
risuarez
This is very interesting! Can you tell me where did you got the cost structure of the neswpapers?
insanesnoopy
Honestly though.

This structure does not work in all businesses.

This is why it works for a newspaper. Lots of readership. Fixed costs dewindle down, because they are spread out.

Jam packed advertising space. With all types of ads there is more money spent per age of space.

Low overhead and production costs......matted low cost paper on a webpress no binding.

More issues.....means even more advertising dollars.

Imagine a magazine that prints every two months trying to adopt this business model.....they would go under.

Cheers
raaeft1
I am a journalist working for one of India's largest newspapers.According to insiders, the subscription paid by subscribers is ``peanuts'' and does not cover even the smallest costs involved in the production especially the spiralling prices of newsprint.
In fact, salaries and other expenditures are met through advertisements of all sorts.
These days,managements prefer e-papers and online edition as the costs get lowered down considerably.
deinos
As I understand it, newspapers get revenues from three sources: newsstand sales, subscriptions and advertising. I am not sure of the actual breakdown percentagewise of these sources, but I do know that newspapers are heavily reliant on advertisers.
In any case many newspapers are losing money these days with the growth in popularity of online media. UK newspapers are making journalists redundant every week. Though of course the owners of these newspapers are still earning hefty pay packets...that's economics!
jmwarshay
The subscription costs defray some expenses. Newspapers charge advertisers based on the number of paid readers, so more readers equal more advertising revenue. Newspapers do not want to charge too much because gains from the extra subscription revenue will be smaller than the loss of advertising revenue, meaning lower total revenue. It is always a balancing act.
HereticMonkey
As someone from the newspaper business, they can be reasonably lucrative if done well. The profit breaks down as follows (generally!):

4) Newsstand: The least profitable way, as costs of supplying the papers usually equals the amount of the papers sold. (Note that I'm referring strictly to the profits generated from the sell of newsstand copies.)

3) Subscriptions: This is just barely more profitable than newsstand; this is why so many papers are free. Subscriptions are more of a courtesy than anything else, unless you can get a huge number of subscriptions. If you do the math, you'll find that, usually, the cost of a subscription is usually just slightly more than the postage required to mail it...

2) Classified advertising: This is almost pure profit; the only real cost is paying someone(s) to type in the ads. Especially in the bigger papers, this can be extremely profitable.

1) Display Ads: This is the most profitable par t of the paper, especially when you allow that most of the cost of producing it (the graphics department and the commission to the person selling it are allowed for in the price).

If it helps...
HM
rshanthakumar
There are a number of magazines and papers that are circulated free and run entirely on ad money. When your TV channels could run on ads why not newspapers.
6eracing
I found this topic interesting in that, every media service we enjoy is ad driven. Even this website! Radio, tv, newpaper, websites. The ads pay the bills.
rshanthakumar
Many things happen out of ads. All those large gifts and prizes that people win in contests are all driven by the ad money. The sports that you enjoy are mostly driven by ads. Whether it is the NBA or the super league, it is the ad money that drives people crazy.
evilryu530
newspapers dontmake that much money, unless u own a collective amount of them. also the share holders invest in other profitable things. if i knew what i would invest in it also. the advertisements in newspapers is relatively expensive now compared to web and other media outlets. the people at work at newspapers don't make much generally. it's almost the way of life and culture u're working for. i dont know why they would enjoy it, but the sales people, usually get paid by comission. newspapers own their own print shop generally, or have some sort of setup. i think newspapers will not last, especially local cities. NYtimes, usa today, wallstreet journal are the exceptions. the price ofnewspapers are gradually increasing.
rshanthakumar
evilryu530 wrote:
newspapers dontmake that much money, unless u own a collective amount of them. also the share holders invest in other profitable things. if i knew what i would invest in it also. the advertisements in newspapers is relatively expensive now compared to web and other media outlets. the people at work at newspapers don't make much generally. it's almost the way of life and culture u're working for. i dont know why they would enjoy it, but the sales people, usually get paid by comission. newspapers own their own print shop generally, or have some sort of setup. i think newspapers will not last, especially local cities. NYtimes, usa today, wallstreet journal are the exceptions. the price ofnewspapers are gradually increasing.


True on many counts. news papers may not last for long in the current form. They might change and continue to exist since news has its own market. The normal working class people in newspapers do not make large money. So also in other industries. They are not the people who work 'intelligently'!? There are still guys who make huge money in print media business. Many tycoons were there and they continue to exist. There is a charm in it.

Newspapers are the ones that make people famous and spread a news faster. Web is yet to replace it.
evilryu530
news papers are history, in the next decade, they are done. however, i do believe they will have a niche market, maybe to the eldery, or the richer spectrum, but with todays new techonology, everyone wants news now, not tomorrow morning, the web, and other tech outlets allow that. everyone will have a personal device with wifi or some sort of connection that will allow them to get news at their finger tips, for free, u dont have to pay a dime, if you look at the stats, newspaper subscriptionsa re on a steady decline. the profits for a newspaper has dropped dramatically over the last 10 years. even time magazine has shut down it's print. with tech becoming cheaper, better, rss feeds, live, pipeline, popfly, web 2.0 crap, newspaper is done!.....online alows 1million writers to input their thoughts.....when it comes down to it, it's up to the viewer, reader, how it relates to them is how they take in the info....
bogger
Newspapers aren't a niche market for the elderly. Websites are untrustworthy, fact....


Website also damage your eyes, and everything I do online is rushed, so reading the newspaper is nice and relaxing.
I'm 18, so I'm not "elderly", nor "rich".

As you may know, most newspapers post their journalism online, to which you subscribe, why would someone pay for journalism when they can get it for free? because online journalism is tripe. It's all biased and opinionated. Online bloggers (for that is what they are, not journalists) want you to believe what they believe, not the truth
LumberJack
Newspapers have been consistently losing their audience to television and have only recently, recaptured some with the internet. Whether or not the internet is actually profitable, I do not know. Their industry is not as profitable as before. Look at the decline of the afternoon papers of the old days.
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