State of the News Industry in the UK: The Guardian Newspaper - Essay Example

State of the News Industry in the UK- A Case study of the Guardian Newspaper State of the News Industry in the UK- A Case Study of the Guardian Newspaper 1.0 Introduction Newspapers are some of the oldest means that have been used to disseminate information to people and the public. They are used to inform people on the trending news and other information such as events and important activities. Newspaper production requires efficiency, proper organisation and keenness to details and facts. Everyone involved in the production is bound by deadlines and this includes the photographers, editors and the reporters alike. There are three main types of newspapers available in most places today; the dailies, weeklies and the special interest newspapers. Majority of the newspapers are dailies and this category mainly handles the local, national and even the international news. Typically, dailies are distributed in the early mornings and in some cases, some have an evening edition. Weeklies, on the other hand, are mainly local and are thus distributed in smaller regions. Special interest newspapers handle news and information targeting a specific population section, usually based on ethnic, religious or social divide. In some cases, the special interest newspapers can target a part of a population interested in certain topics such as business, health and sports among other areas. Classic newspapers cover various areas in their contents to ensure that the readers get most of the necessary information in a package. Some of the popular contents of a newspaper include; Local news- these are news happening in the locality or the district in which the target reader lives. National news- usually, this section covers the major events taking place in a country. International news- This section publishes most of the issues happening at the world stage. Editorials- these are selected opinions of various writers of a newspaper. Letters to the editor- these are reactions and opinions posted by the newspapers’ readers especially as responses to various editorials. Other common newspaper contents include puzzle games, television guides, the weather forecast and reports, obituaries and advertisements among others (Ibsch et. al 2001, pg. 270). Newspaper production involves several processes before it can get to the reader who is the final consumer. The reporters obtain the relevant and attractive information on various topics as outlined above. The editors, upon receiving the raw information, make editions and compile the information to the preferred format, style and length. The final work is then printed before being circulated and delivered to the readers through the distribution channels and points. Today, this process has been made easier due to the advancement in the information technology through the computerised systems of production. The advancements have led to increased quality of newspapers available today especially through the creation of coloured graphics and pictures that have improved the general attractiveness of the print media. In the UK, there are numerous newspaper provider firms, with some the most popular including the Guardian, Daily Mail, Daily Telegraph, the Financial Times, the Sun, the Independent and the Daily Mirror among others. This paper will look to determine the state of the newspaper industry in the UK with particular focus on a case study of the Guardian newspaper. The Guardian is arguably the most popular newspaper in UK commanding the largest share of the country’s newspaper readership. The paper will look into some of its details including its history and several of its key current issues and news among others. The paper will also provide brief discussions on some of the Guardian’s competitors including the Daily Mail, the Daily Mirror, the Financial Times and the Sun among others. The paper will conclude by outlining the common ways through which newspapers source their revenues. 2.0 The Guardian newspaper- The newspaper's brief history The Guardian newspaper, which was initially known as The Manchester Guardian, was first incepted in 1821 by John Edward Taylor. The initial intention of the newspaper was to promote liberation following a widespread outcry against the despotic Corn Laws that had been enacted during this era across Manchester. Initially, the newspaper was published on a weekly basis before increasing that to twice a week in 1836. It was not until 1855 that the paper started to get published on a daily basis. One of the most popular editor in the Guardian’s history, CP Scott, was very instrumental in elevating the recognition and readership of the publication to a national and even the international level. He held the editor’s position from 1872 to 1912 during which period he bought the newspaper in 1907. However, after his death, one of his heirs, JR Scott, later passed the newspaper’s ownership to The Scott Trust in 1936. In 1959, the Guardian newspaper dropped the word “Manchester” and adopted the modern name as “the Guardian”. The Guardian experienced tough financial problems between the 1940s and early 1970s largely due to stiff competition in the industry especially by its major competitor, the Telegraph. This forced the Guardian to seek a merger arrangement with The Times, although this process did not materialise. In 1961, the Guardian increased its investment in the printing division in addition to moving to new and improved offices in London later in 1976. This facilitated the paper’s resurgence to a more competing position with other recognised newspapers and by 1980, the Guardian had consolidated its position as the popular voice of the leftist political and social public. By the early years of the 1990s, the Guardian was the majority preferred choice having greatly improved on its news and production quality. The newspaper started to win some of the most prestigious journalism awards such as The British Press Awards National Newspaper of the Year, which came in the years 1997 and 2006. The paper is also lauded for having ran one of the most successful an investigative series that resulted to the collapse of the Conservative party in 1997. The paper has an organised online presence through its website which was launched in 1999, making it one of the best newspapers on the web today. In 2005, the Guardian re-launched its operations by introducing a new format known as Berliner, making it the first full-colour newspaper in the UK (The Guardian 2002). 3.0 The Guardian’s current financial position According to the Guardian's's 2013/2014 annual financial report released in July 2013, the newspaper media group registered a collective revenue of £210.2 million. This was a marked growth from the previous year which was £196.8 million. Following the media’s sale of its 50.1 % stake of Trade Media Group, the newspaper registered pre-tax profits of £549.2 million. According to The Guardian, the proceeds from this sale helped to strengthen its balance sheet leading to an increase in its investment and cash funds available. As earlier mentioned, The Guardian has imprinted its position in the online media platform having been the pioneer in the field since its launch of a mobile app in 2009. Its digital platform, the second largest English newspaper site in the world, therefore, makes up one of the largest share of its collective revenue. For example, in the newspaper’s financial year that ended in March 2014, the digital revenues raked by The Guardian grew by about 24%, with the newspaper making £69.5 million from the division. This figure is projectedd to become bigger following an introduction of a membership subscription scheme. In this arrangement, readers are required to pay a monthly fee of about £15 to £60 for them to access the Guardian’s digital news from their website. The revenues from the Guardian’s print segment remained nearly constant with its previous year’s figures standing at £140 million. This was seen as a great performance, especially in a market segment that suffered comparatively huge declines. This performance, however, is largely attributed to the newspaper’s intensive coverage of the America’s National Security Agency spy leaks as revealed by Edward Snowden. In addition, the Guardian also expanded its global market share by opening new operations offices in Australia and the United States. It is also worth noting that the newspaper is managed by The Scott Trust which is an influential source of revenue and investment to the newspaper media. The trust is especially important in bailing the newspaper out of financial breakdowns and thus its influence in facilitating the newspaper’s revenue cannot be underestimated. A negative aspect derailing the Guardian’s financial position among its highest profit-making competitors is seen to be its high employee numbers who are also relatively paid more compared to other newspaper media companies in the UK. For example, according to the Guardian’s annual report for the year running between 2013/2014, the media group had a collective number of employees amounting to 1539 persons. The annual staff costs amounted to £119.5 million which is a big figure by the industry standards and by the proportion of the number of employees involved (Guardian Media Group 2014). 4.0 Current news and issues regarding the Guardian newspaper There has been various news and topics of discussion surrounding the Guardian in the recent times. Perhaps the most discussed topic right now is on the stepping down of the newspaper’s editor, Alan Rusbridger after more than 20 years at the position. Mr Rusbridger is quoted as saying “In global journalism, there are a handful of roles that have the capability to redefine our industry. I am privileged to have held one of those roles for 20 years, a period in which successful newspapers have become global content providers, reaching audiences in dramatically new and valuable ways. I am honoured to succeed the quite brilliant Liz Forgan as chair of The Scott Trust, preserving the independent editorial values and the long-term financial stability upon which our future depends. We have strong future leaders in place with unparalleled news and digital experience, and I know that our journalism will be in the best possible hands”. Mr Rusbridger is expected to remain close to the media group through his projected appointment to the next chairmanship of The Scott Trust. During his period in office as the editor, the Guardian has grown exponentially to become one of the most popular digital news platform in the world today. He will be remembered as an editor who presided a period through which the Guardian moved from Britain’s 11th most read newspaper to becoming the second largest English newspaper (after MailOnline) website in the world Press (Turvill 2014). In other news, the Guardian has received many accolades in the past year with the key examples being named as the Newspaper of the year in the UK and winning the Pulitzer Prize, considered as the most prestigious journalism in the US. The awards have been attributed to the newspaper’s feature of the NSA spy activities on various global information sources. The three main journalists, who worked on that story, were Ewen MacAskill, Glen Greenwald and Laura Poitras. The newspaper also received various honorary awards and prizes in Germany, the US and Spain chiefly due to their investigative and online journalistic activities (The Guardian 2014). The Guardian newspaper also awarded President Reuven Rivlin of Israel as its “Hero of 2014” following his strong opposition against anti-Arab racism. The newspaper considers the president as both considerate of his country while also cognisant of the civil rights of the Palestinians. The Guardian, in his award, described him as one who is determined to stop racism and intolerance between the two historical adversaries. According to the guardian newspaper, “Ever since his elevation to Israel’s largely ceremonial presidency in June he has acted as something like his country’s conscience - both castigating what he sees as a national slide into racism and intolerance, and standing up for the civil rights of Palestinians,” (1). The Guardian’s editors chose to award President Rivlin especially after he featured in a film created by an 11-year-old teenager who had suffered bullying after he was thought to be indecently dressed. The president is depicted as supporting the Palestine boy and pleading with the people to stop the bullying and racism. It is for this reason and actions that The Guardian recognised President Rivlin as their “Hero of 2014” (Cohen 2014). 5.0 The target audience of the Guardian newspaper It is unusual for a newspaper to openly express its inclination when it comes to its target readership base or audience. However, it is possible to determine the same through a close analysis of factors such as its use of certain writing styles, political support or the content covered and its likely target. For example, according to a widespread survey, the Guardian is seen as more leaning to the left-wing and the more liberal readers in the UK. The newspaper is also seen to target the middle class and also the upper class readers. Through their massive investment into the digital platform, the Guardian is seen to incline more to attracting the youthful in the UK public. The newspaper is also depicted to be more appealing to the learned population. In terms of gender, the women are seen to find the newspaper more appealing compared to the men, albeit by a slight margin. As earlier mentioned, the Guardian has since opened up its readership market by launching operations in the US and Australia. This is in line with its evident interest in the international news scene which have for a long time taken up a substantial space in the newspaper as compared to its competitors. It is evident that the newspaper has a penchant for international stories and other topical issues in most of its publications (Journalism Now 2013). 6.0 The Guardian- its competitors There are various consumer options when it comes to national newspapers in UK. Some of these newspapers pose a lot of competition to the Guardian since each of them has its success strategies and following. Some of the major competitors include the Daily Mail, Daily Mirror, Daily Telegraph, Financial Times and the Sun. Others include the Times, the Independent and the Daily Express. 6.1 The Daily Mail The Daily Mail is best known for its advancement in creating the largest newspaper website in the UK, the MailOnline. The site attracted over 193 million users worldwide in October 2014 in what was a record unique user visit since its inception. The MailOnline is a major source of the newspaper’s digital revenue and is expected to bring in up to £60 million worth of revenue this year. The digital platform is further projected to make over £100 million worth digital revenues come the year 2016. The print segment of the Daily Mail operates separately from its online platform. The print media is experiencing a loss of readership with the print newspaper sales plummeting in the recent past at the expense of online and other digital readership. The Daily Mail is arguably the Guardian’s major competitor especially in the digital media platform where the Guardian comes in the second position after its platform. 6.2 The Daily Mirror In 2012, the Daily Mirror employed Simon Fox who assumed the post of the chief executive to help it steer to more financial success. Since then, the newspaper has adopted some strategic changes especially in matters of investment in its digital platform. The newspaper has since launched several online brands such as a football site known as Row Zed and a data journalism project by the name Ampp3d among others. The Daily Mirror has also invested heavily in its staffing exploits especially in the digital and editorial divisions in a quest to explore a larger market involving the digital generation. The newspaper’s efforts are slowly starting to bear fruits with an increase in digital revenue and unique users visits on the Daily Mirror’s national website. The newspaper is experiencing a drastic drop in the print sales as well as is the situation of the print industry as at now. 6.3 The Daily Telegraph The Telegraph is regarded as the most profitable quality newspaper in the UK, the latest being the £61.2 million worth of the overall operating profits made by the paper in 2013. The Telegraph has one of the most comprehensive business section, regarded as second to that of the Financial Times. However, the newspaper has a poor digital platform that certainly does not appeal most digital reader segment in this era. Nevertheless, the Daily Telegraph bills its website’s readers £4 per month to access the content unlimitedly. However, there are various noticeable changes since Jason Seiken joined the newspaper in the position of the editor-in-chief last in 2013. The changes are seen as leaning more towards improving the newspaper’s digital platform and has been characterised by a series of internal promotions. 6.4 The Financial Times The Financial Time newspaper has the biggest readership when it comes to business news in UK. However, the newspaper’s digital platform is largely undeveloped as compared to other newspapers in its category. It is, however, slowly improving on this front with its Alphaville blog proving to be readers favourite. Other digital improvements worth a mention are the Antenna Twitter experiment and the fastFT product which is proving to be useful as well. The newspaper’s main website is, however, not competitive enough. 6.5 The Sun The Sun has recently adopted a strategy of paid subscription for its digital newspaper platform that costs £7.99 per month for unlimited access to the online content. This has drastically reduced its digital readership from over 30 million unique visits the site was getting per month before the strategy to about 225,000 subscribers. According to the newspaper, the strategy is working as expected since it is able to access more of its readers’ data and thus making it easier to offer its advertisers more information for efficient targeting. The newspaper also says that the subscription service has provided more readership and loyalty from the subscribers. Other competitors of the Guardian include the Times, the Independent and the Daily Express which have all been struggling to ensure that they keep up with the transition to digital platform as well thus lagging behind in their readership bases (O’Reilly and Edwards 2014). 7.0 Sources of digital revenue for newspapers in UK It is so far evident that there is a huge decline in the print newspaper sales in the UK and the world at large. The digital and other online platforms of the newspapers are, therefore, slowly taking over the centre stage when it comes to information dissemination and revenue creation. Newspapers are, therefore, pumping more investments into the digital platform while gradually cutting the expenditure on print media which has suffered a general drastic drop in consumer demand over the recent past. Conventionally, the initial method of digital revenue collection has been the digital advertising. However, newspapers are continually coming up with other innovative strategies in a bid to widen their scope on the revenue creation through the digital platform. In addition to digital advertisement, other effective methods applied by the newspapers today include subscription to other services, sales, promotional stories, sponsored content, endorsements, communities and establishment of a newspaper shop (Temple 2008, pg. 111). 7.1 Digital advertisement It is projected that the UK newspapers will experience an increased growth in the digital advertising revenue by about 1% in 2015. This translates to an increment of about £1.42 billion. It is, however, expected that regional newspapers will see a decline of up to 5% in revenue this year, which is largely contributed to their little exploitation of the digital platform and overreliance on print media. 7.2 Direct sales Many newspapers in the UK today are realising that they can directly sell products through their digital platforms instead of acting as the advertisement agent. Some of the common products sold through these sites include clothing, electronics, cards and even food. For example, the Guardian through its website, sells T-shirts, bags and various types of clothing among other goods. 7.3 Subscription to other platforms and services Another avenue through which newspapers can increase their digital revenue is by subscribing to other platforms and services. For example, the Guardian newspaper has subscribed to a service known as Guardian Soulmates dating service. The service enables people to meet and create connections for dating purposes, while receiving advertisement through the popular newspaper. The service is another source of digital revenue for the newspaper. 7.4 Sponsored content Usually, sponsored content intends to create a relationship with its readers as opposed to the typical advertisement strategy of selling clicks or impressions. Through this method, the sponsor creates a brand through provision of information to the reader. The sponsors can then pay for the articles posted on the digital platform while their brand gets promoted through the information. 7.5 Creation of online communities A newspaper can focus on creating its online community as opposed to an audience through connecting and creating value for its audience. This can be achieved through membership subscriptions which do not necessarily have to be paid. The membership base can henceforth receive personalised services and information in a bid to creating a relationship with the readers. Through the connections created through the community, a newspaper can begin to get financial incentives which take several forms such as paid membership, subscription or a sale. 8.0 Conclusion A lot has changed in the UK newspaper production and industry over the past few years. It is evident that the industry is gradually shifting from the traditionally preferred print media to a more sophisticated digital platform. The consumer demands and the industry dynamism are a few key factors that facilitates the increased competition among various newspaper firms in the UK. It is, however, a necessity that any firm seeking to remain competitive in the newspaper industry must adopt other exceptional methods of revenue creation in addition to digital advertisement. Bibliography Cohen, M. (2014), Rivlin a ‘Hero’ to UK’s Guardian Newspaper. 31 December 2014. Available at http://www.israelnationalnews.com, accessed 8 January 2015. Guardian Media Group. (2014), Annual Report and Financial Statements. 8 July 2014. Available from: http://www.gmgplc.co.uk/wp-content/uploads/2014/07/GMG-plc-Group-Accounts-2014-FINAL.pdf, accessed 8 January 2015. Ibsch, E., Schram, D., & Steen, G. (2001). The psychology and sociology of literature: in honor of Elrud Ibsch. Philadelphia, Benjamins. Journalism Now. (2013), The Guardian Vs The Daily Telegraph. 23 March 2013. Available from http://www.journalism-now.co.uk, accessed 8 January 2015. The Guardian. (2002), History of the Guardian, 1 June 2002. Available from: http://www.theguardian.com, accessed 8 January 2015. The Guardian. (2014), Guardian and Washington Post win Pulitzer Prize for NSA revelations, 14 April 2014. Available from http://www.theguardian.com, accessed 8 January 2015. O’Reilly, L & Edwards, J. (2014), These Are The UK Newspapers Failing To Tackle The Switch To Digital. 16 December 2014. Available from: http://www.businessinsider.com, accessed 8 January 2015. TEMPLE, M. (2008). The British press. Maidenhead, Open University Press. Turvill, W. (2014), Alan Rusbridger to step down as editor after 20 years in job. Press Gazette, 10 December 2014. Available from: http://www.pressgazette.co.uk, accessed 8 January 2015. Read More