Marketing Trends in the Newspaper Industry of Europe and France - Report Example

Trends in the Newspaper Industry Introduction: The Industry analysis of the media in Europe has pointed out that while other sectors of the media are growing, newspapers are in a decline, with some increases in circulation being demonstrated among papers such as The Guardian in the UK and Le Figaro in France after a change in format to the more compact tabloid size.(Mergent 2005). In France, newspaper sales has been declining over the past decade, caused mainly by falling sales and advertisement revenue. History of newspapers: The newspaper industry originated with the launch of the first English Printing Press in 1976 and in Europe, the invention of movable type made it possible to produce newspapers in bulk and circulate them quickly. (Smith 1978). Technological development in the nineteenth century, such as the linograph and rotary press, coupled with the telegraph and wire services such as Reuters enabled fast distribution of news. Newspapers prevailed in the early 1900s, however after 1918, radio emerged to snag advertising revenues and the later part of the century also witnessed the TV revolution. In order to repackage itself to face competition from TV and remain a viable medium, newspapers began to be acquired by media conglomerates. France’s newspaper industry was controlled by the Government – Agence France Presse until the mid 1980s, although a very liberal bill of 21st June 1881 allowed freedom of expression.(Delauney, 2005). The 1990s were a period of steady decline in circulation for newspapers across the world. Globalization and the Internet spelt the move towards access of the international markets (Raboy 2002; Murphy and Craidy, 2003) and the world turning into a “global village” (McLuhan, Marshall, 2001). A significant development in recent times is the emergence of the tabloid revolution in the 2000s – the production of smaller sized papers targeted at the younger sections of the reading public (Greenslade 2001). Many newspapers have adopted an online format through introduction of web pages in order to target younger net savvy readers. In France, where a study conducted on newspaper circulation and readership showed that newspapers with web pages were able to out perform their print-only competitors.(Pressflex, 2002). Europe: Newspapers: The newspaper market in Europe has been affected by falling circulation rates for newspapers, exacerbated by economic problems during the early part of this decade. The European newspaper market generated $54.6 billion in 2004 (Datamonitor 2005). While advertising revenues ranked below copy sales in countries like France, dominant advertising trends in countries such as the UK produced an overall segmentation of 54.9% of revenues while copy sales generated 45.1% of revenues. The traditional print media is facing increasing pressure from new formats such as the Internet, where customers may read regularly updated news online for free, making it more attractive to readers as compared especially to dailies where news is presented the next day. Therefore circulation of print newspapers has been declining. In order to counteract the decline in circulation, eight newspaper titles managed by three Dutch publishers were merged into one conglomerate, as also eight newspapers in the Netherlands, raising concerns about media ownership (Mergent 2005). France Newspapers: Revenues generated in 2004 were $13.1 billion in 2004 registering a growth of 1.5%. (Datamonitor Reports, 2005). In Paris, 13 Parisian dailies combined had a circulation of 3 million in 1980 which dwindled to 2.5 million in 1986. Similarly, circulation of regional newspapers dwindled to 7.5 million in 1980, as compared to 9 million in 1946 (Datamonitor report, 2005). Trends towards monopolization of newspaper services emerged in France as well as in other countries, as newspapers merged with each other since they could not compete effectively against one another (Smith 1980). Cumulative newspaper circulation in 2003 was 4,667,068,757 copies, which represents a 1.8% decline since 2002.(Delauney, 2005). The French Newspaper Le Monde,was originally founded to be the conscience of the nation (Eveno, 1996) and was a serious intellectual newspaper, fiercely maintaining its independence, however recent trends indicate that this newspaper has also been forced to accept corporate sponsorship to survive. Most of the newspapers in France are now supported by rich backers and SPIR Communications, an international backer, publishers some 175 newspapers in France.(Mergent Report, 2005). France had a strong regional Press which surpassed the national dailies, for instance, the regional newspaper Quest France had a circulation figure of 759,817 in 1999 while the highest ranked national daily Le Parisien only reported 358,220.(Economist Intelligence, 2002). Reasons for its success are believed to be the judicious mix of national and international news, with a strong regional section.(Speer, 2002). The national newspaper France Soir on the other hand, which enjoyed high circulation figures of over 1 million in the 60s entered bankruptcy proceedings in 2005 and in March 2006, Gaydamak offered to buy back the newspaper.(Le Monde 2006). Current Market Segmentation in Europe: (Source: Datamonitor report, 2005) The UK is the largest consumer of newspapers with the largest percentage of newspaper readership, followed by Germany and France. COUNTRY PERCENTAGE UK 0.29 Germany 0.244 France 0.239 Italy 0.077 rest of Europe 0.15 Comparison of Europe with France: The graphs presented below compare the European Union and France in terms of population, newspaper market value, annual newspaper circulations and the number of newspaper titles that are published within the respective territories. Analysis: From the above graphs, it may be noted that France has roughly one fifth of the population of Europe and ranks third in terms of market segmentation. Circulation has been declining slowly and steadily, while in Europe circulation trends show an increase in 2001 before registering a slow but steady decline. The reason for this may lie in the tabloid revolution in UK, which produced increased UK readership although economically, the newspaper industry is still hurting.(Weisbart, 2005). Given below are the graphs showing French newspapers and their circulation. The graphs above show that the number of daily papers in France have remained at a steady level, however in terms of circulation, there is a slow but steady decline that may be seen in the years from 2000 to 2004. Circulation figures for non dailies however do not show much change, however there is a significant drop in the number of regional titles that are being published, which provides a clear indication of how the newspaper industry is hurting economically. France shows a steady decline in readership of dailies and a drop in the number of regional titles. This has been blamed partly on the deteriorating economic factors in this decade that have affected all of Europe and partly on a series of problems peculiar to French people, such as the refusal to subscribe to a newspaper and the reluctance of the business community to advertise in newspapers as identified by Delauney(2003). She has acknowledged that French readership of newspapers is falling and has put forth several reasons for the decline in readership, one of which has been unreliable, unsubstantiated information provided by the AFP and the high subscription price of French newspapers (Le Monde 1.20 Euros and Figaro 1 Euro). When the French paper Informatin was introduced in 1994 for only three francs a copy, it was the first daily in two decades to last more then two weeks, indicating that price could have been a factor affecting readership (Abare et al, 1994). Catherine Villa, the head of Press at the Paris branch of Initiative, suggests that declining readership of paid broadsheets in France is largely due to the failure to modernize layouts and attract young readers.(Tungate 2005). Charles Bremner(2005) has highlighted the bleak outlook for French paid broadsheets, with circulation of all nine national newspapers only managing a circulation figure of 1.4 million as compared to Britain’s high readership value of 12 million. He also highlighted the rigid institutional adherence policy of the venerable dailies which has left the market open for the Internet and free Metros to seize the young market. There is a definite decline in readership throughout Europe - even in Britain, which has traditionally enjoyed high readership levels.(Economist, 2003). The graphs demonstrate that there is a decline in the number of newspaper titles as well as in the annual circulation of the daily newspapers. Newspapers enjoyed high circulations in the 1960s and it is only in the 1990s that the decline in readership has emerged. This provides a definite indication that the advent of TV and the Internet has impacted negatively upon newspaper revenues throughout the European Union. Within the short span of 2000-2004 that has been examined graphically above, it may be noted that the steady decline continues. Dyson and Humphreys(1988) have pointed out new developments in law in Europe, such as the laws on audio visual in France and state treaties on regional broadcasting which have changed the scenario – so that multinational conglomerates who own various media assets are likely to change national publishing and broadcasting trends. In particular, the recent move for merger of newspapers in Holland and the Netherlands has given rise to more concerns about media bias.(Mergent 2005). With the emergence of alternative media sources, the market available for newspaper readership is being steadily eroded as other media forms have begun to compete for consumer attention. While regulation within the EU was originally geared towards protecting natural cultures, liberalization has resulted in a greater focus on the consumer and privatization within a competitive environment (Dyson and Humphreys 1988). The development of the common European Internal Market has produced a system where the smaller units such as regional newspapers are facing an uphill battle to survive in spite of enjoying high readership. The individual French trends that were shown graphically above also demonstrates that the number of regional newspapers has declined. There is a noticeable trends towards mergers and acquisitions in Europe and foreign interests are also acquiring newspaper ownership, which may be seen to be a natural function of the need for economies of scale in a competitive environment (Noam 1991). With the development of the Common market, competition has intensified, therefore the focus has shifted towards privatization and the consumer. The fact that newspaper readership is declining indicates the failure to appeal to the growing young consumer base within the European Union, who are more likely to get their news from the Internet or the TV rather than buying a newspaper. Humphreys and Dyson (1988) have argued that technology has brought about changes in the media and the increasingly important role of media conglomerates is forcing the character of national press coverage to change to a more globalized format. The new media is a qualitative and a quantitative change represented by the change from the traditional print media in the late nineteenth century to the moving image represented by television. He points out how the means of communication has changed the nature of democracy. This is evident in the changing political and cultural scenario within the countries of the European Union, particularly France, where the new European regulations, through competition, have impacted upon the leftist political ideology in France, highlighting the need for a transformation in order to survive within a global context. As Bartle (1999) points out, globalization leads to the development of transnationalization and in France, politics is also evolving from a regional French framework to a system of European politics, which poses the possibility of more changes in the media.(Quail 1994). Nowhere is this more evident than in the history of the newspaper Liberation, which has been adapting itself to conform to consumer requirements. In analyzing the growth of the French paper “Liberation”, Richard Rooke (n.d) has analyzed the gradual shift from a collective Marxist stance to individual focus and investigative journalism may be seen to be in line with of an increasingly global outlook as a part of the European Union - focusing on the freedom and power of the Press (Curran, 2002). While French newspapers have traditionally maintained their independence in political views, even newspapers such as Le Monde have been forced to accede to corporate interests in order to remain competitive and survive within a global environment. As Noam (1991) has pointed out in his book, the television industry has demonstrated a growing transnational character and privatization with State influence decreasing steadily. This is apparent in France, where the state regulated media system as represented by the daily newspapers is rapidly giving way to a more privatized, transglobal format. Michael Biddis (1961) has pointed out how the evolution of the mass media represents a move away from smaller communities towards a large, bureaucratized, anonymous system, thereby impacting the French tradition of a rich local culture that is increasingly being subjected to global anonymity. The French media has been inevitably conditioned by strong political leanings, corroborating Siebert’s argument (Hallin 2004) and readership is conditioned accordingly, making readership in France traditionally lower than countries such as UK and the U.S. (Kuhn 1995). With relaxation in European media regulations, the media is being globalized (Taylor,1999) and the increased number of mergers that have produced significant changes in transnational ownership of regional newspapers could ring in more changes in the future.(Bartle, 1999). In general, French people prefer to purchase a newspaper daily rather than subscribe, which heightens economic insecurities for newspapers and the low readership means France now ranks only 31st worldwide in reference to number of circulated dailies per 1000 inhabitants (Delauney 31). Latest trends for 2005 (Datamonitor 2005) have indicated that traditional theories postulating that newspaper readership has never been very popular in France needs to be revised because the free Metro titles that have been introduced have enjoyed success and 64% of the French public approve of the free papers as a means of updating their information efficiently.(Tungate 2005). When coupled with the move certain newspapers have taken to provide their newspapers on websites, this is only a reflection of the growing realization within the newspaper industry of the need to capture younger readership, which is also reflected in leading newspaper markets in the U.S. and Britain, in the changing format to more economical and attractive tabloids (Steve, 2004). Dr. Pam Moores has analyzed media demonisation in France in the context of Le Figaro and has highlighted the same power aspect of the media, concluding that while readership of newspapers is limited and presaged by the political views of the readers, this does not indicate that they lack influence (Moreas, 2003). Conclusion: The analysis of trends reflects an overall decline in newspaper readership, both in France and the EU, however France has been impacted more negatively due to the traditional link of newspapers with politics and the need to maintain their independence. In view of the strong readership levels of newspapers in the UK, the declining trend in the EU of newspaper readership is a reflection of the changing preferences of consumers for the newer media forms such as television and Internet. In France free metros and newspaper websites have attracted readership while in the EU, which seems to disprove the theories about French readership being traditionally concentrated in the magazines area, as well as alternative theories that the French have traditionally shown lower readership levels because readership has been conditioned by individual political views, leaning towards the newspaper that best reflects their political stance. The significant aspect that stands out in EU readership is the increase in market value and circulation levels in 2004, which suggests that tabloids are being favored by consumers, especially by younger consumers. Advertising revenues of newspapers are higher than copy sales in the European Union and mergers and media conglomerates appear likely to change the face of the newspaper industry as globalization bucks regional trends. While annual circulation of newspapers continued to decline up to 2004, the increase in newspaper market value, both in France and the European Union, can be attributed to the increase in advertising revenues and the fact that many newspapers are also designing websites to attract readers to purchase their newspapers.(Pressflex, 2002). In the case of the European Union, the tabloids have elicited higher levels of readership and advertising revenues, while in France it is the Metros. The prognosis for the newspaper industry appears good as per Datamonitor reports. Whether the slight increase in revenues generated from this industry in 2004 and the growing trend of mergers is likely to provide a boost to the industry remains to be seen, especially since the revolution of TV and the Internet have already captured a significant section of the consumer market and diverted it away from traditional media forms such as print newspapers. References * Arcadi Gaydamak annonce avoir rachete ‘France Soir’ Le Monde, March 14, 2006 * Bartle, Ian, 1999. ‘Transnational Interests in the European Union’ Journal of Common Market Studies, September 1999, 37(3), pp 363-383 * Bremner, Charles, 2005. France’s top newspapers in crisis as readers revolt. The Times, December 2, 2005, p 76 * Curran J, 1997. The liberal theory of press freedom In Curran J & Seaton J, 1997. Power without responsibility * DataMonitor Industry market research. Europe Newspapers August 20,2005. pNA * --------------France - Newspapers August 20, 2005, pNA * ------------- France – Newspapers March 1, 2004, pNA * --------------French Newspapers Annual 1999 pNA * --------------French Newspapers Annual 1998 pNA * Delaunay, Else, 2005. Developments of French Newspaper Publishing: A General View [online] www.nla.gov.au/initiatives/meetings/ newspapers/presentations/delaunay.ppt * Dunnet, Peter J. S, 1988. The World Newspaper Industry, London: Croom Helm * Dyson, K and.Humphreys,P, 1988 Broadcasting and New Media Policies In Negrine, R, Simon, J.P.Western Europe, * The Economist, 2003. Things look pretty bad in the newspaper business. They are worse than that. March 6 edition. * Economist Intelligence Unit: CountryViews Wire. France: Transport and Communications April 5, 2002 pNA * Eveno, Patrick, 1996. Le Monde:1944-1995: Histoire d’une enterprise de presse. Paris: Le Monde Editions * Euromonitor Reports * Greenslade, Roy. "An Annus Horribilis." The Guardian, 17 December 2001 * Hallin D, 2004. Comparing Media Systems: Three models of Media and Politics * Kuhn, Raymond, 1995. The media in France London: Routledge * McMane, Aralyn Abare and Melynk, Marichka, 1994. A new French recipe: Informatin, the newest Paris daily, tries to tempt readers with a colorful, compact package and a low, low price. Editor and Publisher. July 9. 127(98), at p 10(3) * Mergent Report, 2005. The Europe Media Sectors: A Company and Industry Analysis. [Online] Available at: http://www.mergentonline.com/PDF/Data/IR/EU_13010_112005.pdf * Moraes, Dr Pam, Media demonisaiton, “le fabrique de la haine” and Le Figaro” [online] available at: http://wjfms.ncl.ac.uk/MooresWJ.htm * McLuhan, Marshall, 2001. The medium is the message: an inventory of effects California: Corte Madera * Murphy, Partick D and Kraidy, Marwan, 2003 (ed). Global Media Studies Routledge: New York. * Pressflex report, 2002. Cannibalization? Au contaire! [online] available at: www.pressflex.com/news/get_file.php3/ id/6/file/FrenchCirculationStudy.pdf * Quail, D, 1994. Mass Communication Theory Chapter 5 * Raboy, M, 2002. Global Media Policy John Libbey * Rooke, Richard, No Date. The Birth of an idea: Liberation in the early days:1973-74. * Smith, Anthony, 1980. Goodbye Gutenberg: The Newspaper revolution in the 1980’s. New York: Oxford University Press. * Smith, Anthony, 1978. The Newspaper: An International History London: Thames and Hudson. * Speer, Lawrence J, 2002. Top selling newspaper: (feature newspapers: France) AdAge Global, February 2002, 2(6), pp 22(1) * Steve. Johnson, 2004. For U.S. newspapers future may be in tabloid size Kansas City Star, November 12, 2004. * Taylor, P, 1999. ‘Television: force multiplier’, Corporate Communications May 20, 1999, 4(2), pp 61-72. * Tungate, Mark 2005. France: Papers under Pressure. Campaign, June 17 2005, p 31 * Weisbart, Michel, 2005. Circulation up but papers still hurting Korea Tomes, 30 May 2005. [online] available at: http://www.times.hankooki.com * Wheeler, Mark, 1997. Politics and the Mass media Oxford: Blackwell DATAMONITOR REPORTS Datamonitor Industry Market Research, August 2, 2005 pNA France - Newspapers. (Industry Overview) Full Text: COPYRIGHT 2005 Datamonitor MarketDefinition The newspapers market consists of all daily and non-daily newspaper titles. The markets value is calculated as the sum of newspaper sales and advertising revenues. Any currency conversions used within this report have been calculated using constant 2004 annual average exchange rates. For the purpose of this report, Europe comprises Belgium, France, Germany, Italy, Netherlands, Spain, and the UK. ResearchHighlights *Like many Western European markets, at the start of the decade the French newspaper market struggled to cope with falling sales and advertising revenue. *There are over 3,000 titles in the French newspaper market, which collectively produce around eight billion copies each year. *Fears are growing over the inevitable closure of some major national publications. MarketAnalysis Like many Western European markets, at the start of the decade the French newspaper market struggled to cope with falling sales and advertising revenue. Whilst the countrys economic recovery in the last couple of years has helped the newspapers market return to growth, the market has yet to reach the levels seen before its slump. The French newspapers market generated total revenues of $13.1 billion in 2004, representing a compound annual rate of change of -0.3% for the five-year period spanning 2000-2004. The markets performance was primarily due to a reduction in advertising revenues as a result of the economic problems that have beset the country for a number of years. Furthermore, there has been a continual decline in circulation as many potential customers abandoned newspapers in favor of the Internet or 24-hour television news channels for their news updates. The French markets performance was significantly weaker than that of the Spanish and UK markets which both grew with CAGRs of 1.7%, but stronger than that of Germany which experience a compound annual rate of change of -2.5% between 2000 and 2004. Subsequently the French markets performance was marginally weaker than that of the European market as a whole, which had a compound annual rate of change of -0.2%. Copy sales were the leading revenue source for the French newspapers market in 2004, generating total revenues of $7.5 billion, equivalent to 57.3% of the markets overall value. Advertisements, which accounted for $5.6 billion in 2004, generate the remaining 42.7% of the markets revenues. Looking forward, the market is forecast to accelerate its current performance, with an anticipated CAGR of 1.7% for the five-year period 2004-2009 expected to drive the market to a value of $14.2 billion by the end of 2009. The countrys improving economic climate is expected to fuel the markets improved performance as advertising revenues continue to recover, although struggling circulation figures will keep the markets growth to a low rate. Value The French newspapers market grew by 1.5% in 2004 to reach a value of $13.1 billion. The compound annual rate of change (CARC) of the market in the period 2000-2004 was -0.3%. France Newspapers Market Value Unit: USD Year Value Growth 2000 13200000000 2001 13100000000 -0.008 2002 12800000000 -0.023 2003 12900000000 0.003 2004 13100000000 0.015 CAGR 2000-2004 -0.003 Segmentation Copy sales form the markets largest sector and account for 57.3% of the French markets value. Advertisement revenues generate a further 42.7% of the markets revenues. France Newspapers Market Segmentation Year: 2004 Category Percentage Copy Sales 0.573 Advertisement 0.427 Segmentation France forms 23.9% of the European newspaper markets value. The UK accounts for a further 29% of the value in this region. France Newspapers Market Segmentation Year: 2004 Geography Percentage UK 0.29 Germany 0.244 France 0.239 Rest of Europe 0.15 Italy 0.077 CompetitiveLandscape There are over 3,000 titles in the French newspaper market, which collectively produce around eight billion copies each year. The best selling national is LEquipe, a daily sports dedicated publication. The regional dailies, of which there are over 400, account for over a quarter of the newspaper sectors total annual output. Most enjoy local monopolies, which provide them with protected circulation and advertising revenues, enabling them to survive the economic downturn that has damaged the standing of their national rivals. Many of the regional titles are now part of the three major operating groups - Hersant, Ouest-France and Hachette Filipacchi Presse. Hersant remains a major player in the market despite its downsizing since 2002. Its leading titles include Le Dauphine Libere, Paris-Normandie and Midi-Libre. The company also produces two national titles - France-Soir and Le Figaro, one of the most respected newspapers in France. Despite their dominance in the market, even these three large groups are struggling to contend with falling readership and increased competition for advertising revenue. Frances newspapers are suffering from the worst crisis in years and fears are growing that inevitable closures of some national publications are looming. Recent sales slumps in a already depressed market have lead to even the large Paris titles such as Le Monde, Liberation, France-Soir and LHumanite have reported financial difficulties. Traditional newspapers have been facing increased pressure from the surging popularity of free daily papers such as the Metro and 20Minutes. These papers caused a caused a degree of controversy when they were introduced in France as unions and competitors tried to ban the initiative, but are now firmly established in the larger cities like Paris, Marseilles and Lyon. Swedens Metro International publishes editions of the Metro in nine French cities and has a readership of over a million. This section contains brief overviews of the leading companies in the French newspapers market. Company Hersant Group Hersant group encompasses around 80 daily/weekly newspapers and magazines in Belgium and metropolitan France and its territories (including New Caledonia and French Polynesia), along with minor radio and television interests - including some in the US. Socpresse, now the main Hersant family vehicle, owns national newspaper Le Figaro. Socpresses turnover for the year ended December 2002 was $185.1 million. The Dassault group acquired a 30% stake in the main family vehicle, Socpresse. The group is based in Paris, France. No 2004 revenue figure has yet been published for the Hersant Group. Company Lagardere SCA Lagardere is a French media company, its principal activities are found in the following sectors: print media and publishing, and high technology. The company owns subsidiaries located in Europe, Africa, North and South America and Asia. The company is headquartered in Paris, France. For the fiscal year ended December 2004, the company generated revenues of $16,630 million, a 7.5% increase on the previous year. Company Ouest-France Group The Rennes-based Ouest-France group claims to be Frances largest newspaper publisher with 30% of national circulation, although further growth is inhibited because of limits on market share. Ouest-France, with seventeen editions distributed in Brittany, Normandy and the Loire, has a circulation of 800,000. The group also has several other paid local newspaper titles. The group also owns SPIR Communications which publishes about 150 free newspapers across France, including Aix Hebdo, Le Galibot and Boum Boum, with individual circulations of up to 440,000. No revenue figure has yet been published for the company in 2004. Company Bayard Bayard is the fifth largest press group in France, in terms of circulation and publishes 100 newspapers and magazines in 34 countries in Europe, North America, Asia and Africa. It specializes in four areas: childrens publications (Astrapi, Babar), the over- 50s press (Notre temps), hunting and fishing magazines (Terre sauvage) and the Roman Catholic religious press (daily La Croix). Bayard is also a book publisher through Bayard Editions Jeunesse and Editions Bayard. For the year ended 2004 turnover was E427.3 million ($530.7 million). Bayard is based in Paris, France. ForecastValue In 2009, the French newspapers market is forecast to have a value of $14.2 billion, an increase of 8.5% since 2004. The compound annual growth rate (CAGR) of the market in the period 2004-2009 is predicted to be 1.7%. France Newspapers Market Value Forecast Unit: USD Year Value Growth 2004 13100000000 0.015 2005 13200000000 0.014 2006 13500000000 0.017 2007 13700000000 0.018 2008 13900000000 0.017 2009 14200000000 0.017 CAGR 2004-2009 0.017 MacroeconomicData Population France Size of Population Unit: Population Year Value Growth 2000 59400000 2001 59700000 0.005 2002 59900000 0.004 2003 60200000 0.004 2004 60400000 0.004 GDP France GDP Unit: Real GDP (1995=100) Year Value Growth 2000 95 2001 93.3 -0.017 2002 91.7 -0.018 2003 90.2 -0.016 Inflation France Inflation Unit: Inflation Rate % Year Value 2000 0.016 2001 0.014 2002 0.023 2003 0.022 2004 0.015 Exchange Rate Unit: Exchange Rate Year Value 2000 0.012 2001 0.011 2002 0.009 2003 0.011 2004 0.012 Article A140676605 Datamonitor Industry Market Research, March 1, 2004 pNA France - Newspapers. (Hersant Group)(Industry Overview) Full Text: COPYRIGHT 2004 Datamonitor MarketDefinition The newspapers market includes all daily and non-daily newspaper titles. The markets value is calculated as the sum of newspaper sales and advertising revenues. Any currency conversions used within this report have been calculated using constant 2003 annual average exchange rates. ResearchHighlights *The French newspaper market grew in 2003. This was the first positive growth in the last five years. *French newspapers rely heavily on copy sales for their revenue. *Ouest-France and Socpresse are the leading players in the French newspaper market. MarketAnalysis Unlike other major market newspaper industries, the French newspaper industry is the least dependant upon advertising revenues. Instead the French market relies on copy sales for its major national titles. In 2003,the market was worth $11.3 billion, a decrease of 4.9% since 1999. The major cause of this decline was a steep fall in copy sales revenues. However, revenue from copy sales increased in 2003 after declining continuously since 2000. The French newspaper market expanded at a compound annual growth rate (CAGR) of -1.3% in the 1999-2003 period. This growth was considerably weaker than that of the European market itself, leading to the French markets share decreasing by 0.4 percentage points between 1999 and 2003, accounting for 15.9% of the European newspaper market by the end of this period. The leading revenue source for the French newspaper market in 2003 was the copy sales sector, which accounted for just over 85.4% of the markets value. In value terms this sector was worth $9.7 billion in 2003, a decrease of 5.0% since 1999. Despite its leading position, the copy sales sector was outperformed by advertising sector, which declined at a slightly lower 4.3% between 1999 and 2003. Going forward, the market is expected to experience low but positive growth rates. By 2008 the market is forecast to reach a value of $11.9 billion, a CAGR of 1% in the 2003-2008 period, lower than the European market. During 1999-2003 the French newspaper market was the worst performer among the major markets of the EU. It is likely that the copy sales sector will maintain its position as the leading sector into 2008. Although the weakness seen in this sector indicates that the advertising sector will continue to become more important in the French newspaper market. Value The French newspapers market grew by 0.3% in 2003 to reach a value of $11.34 billion. The compound annual rate of change of the market in the period 1999-2003 was -1.3%. The strongest growth was in 2003 when the market grew by 0.3%. France Newspapers Market Value Unit: USD Year Value Growth 1999 11900000000 2000 11800000000 -0.011 2001 11600000000 -0.015 2002 11300000000 -0.028 2003 11300000000 0.003 CAGR 1999-2003 -0.013 Segmentation Copy sales are the most important source of revenue for French newspapers. In 2003, the copy sales segment accounted for over 85% of the French newspaper revenues. Advertising accounted for less than 15% of the French newspaper revenues in 2003. France Newspapers Market Segmentation Year: 2003 Category Percentage Copy Sales 0.854 Advertising 0.146 Segmentation In 2003, the French market accounted for 15.9% of the European newspaper revenue share. France Newspapers Market Segmentation Year: 2003 Geography Percentage Rest of Europe 0.841 France 0.159 CompetitiveLandscape There are over 3,000 titles in the French newspaper sector, which collectively produce approximately eight billion copies each year. These range from national, regional and local dailies through to weekly and monthly journals. Content ranges from general interest to specialist political, economic and sports titles. The leading dailies are Le Monde, Liberation and Le Parisien-Aujourdhui. Circulation volumes have fallen generally across the daily sector in recent years, mainly due to a reduction in the number of younger readers (aged under 25). However, Le Parisien-Aujourdhui has managed to buck this trend through a shift in its political orientation and the production of a national edition named Aujourdhui. The regional dailies account for over a quarter of the total annual output of the newspaper sector in France. There are over 400 regional dailies within the country. Most enjoy local monopolies, which provide them with protected advertising revenues. These monopolies have also enabled the regional titles to survive the economic downturn that has damaged the standing of their national rivals. Many of the regional titles are now part of the three major operating groups - Hersant, Ouest-France and Hachette Filipacchi Presse. Hersant remains a major player in the market despite its downsizing since 2002. Its leading titles include Le Dauphine Libere, Paris-Normandie and Midi-Libre. The company also produces two national titles - Le Figaro and France-Soir. This section contains brief overviews of the leading companies in the French newspapers market. Company Hersant group Hersant group encompasses around 80 daily/weekly newspapers and magazines in Belgium and metropolitan France and its territories (including New Caledonia and French Polynesia), along with minor radio and television interests - including some in the US. Socpresse, now the main Hersant family vehicle, owns national newspaper Le Figaro. Socpresses turnover for the year ended December 2002 was EUR149 million. The Dassault group acquired a 30% stake in the main family vehicle, Socpresse. The group is based in Paris, France. Company Lagardere SCA Lagardere is a leading French media and high-technology company. In the fiscal year ended December 2002, the companys sales totaled E13.2 billion. The companys primary holdings include publisher Hachette Filipacchi Medias (Elle, Premier, and Car & Driver) and a 15% stake in the number three aerospace firm, European Aeronautic Defence and Space Company (EADS), which produces defense and weapon systems, military aircraft, satellites and space systems, and commercial aircraft. The firms other media holdings include book publishing (Hachette Livre), Internet content (Lagardere Active), and satellite television (34%-owned CanalSatellite). Lagardere is also involved in the automotive industry through its Matra Automobile unit. The company is headquartered in Paris, France. Company Ouest-France group The Rennes-based Ouest-France group claims to be Frances largest newspaper publisher with 30% of national circulation, although further growth is inhibited because of limits on market share. Ouest-France, with seventeen editions distributed in Brittany, Normandy and the Loire, has a circulation of 800,000. The group also has several other paid local newspaper titles. The group also owns SPIR Communications which publishes about 150 free newspapers across France, including Aix Hebdo, Le Galibot and Boum Boum, with individual circulations of up to 440,000. Company Bayard Bayard is the fifth largest press group in France, in terms of circulation and publishes 100 newspapers and magazines in 34 countries in Europe, North America, Asia and Africa. It specializes in four areas: childrens publications (Astrapi, Babar), the over-50s press (Notre temps), hunting and fishing magazines (Terre sauvage) and the Roman Catholic religious press (daily La Croix). Bayard is also a book publisher through Bayard Editions Jeunesse and Editions Bayard. ForecastValue In 2008 the French newspapers market is forecast to have a value of $11.93 billion, an increase of 5.1% since 2003. The compound annual growth rate of the market in the period 2003-2008 is predicted to be 1.0%. The strongest growth is predicted for 2006 when the market is forecast to grow by 1.3%. France Newspapers Market Value Forecast Unit: USD Year Value Growth 2003 11300000000 0.003 2004 11400000000 0.005 2005 11500000000 0.013 2006 11700000000 0.013 2007 11800000000 0.01 2008 11900000000 0.009 CAGR 2003-2008 0.01 Article A126894840 Datamonitor Industry Market Research, Annual 1999 pNA FRENCH NEWSPAPERS. Full Text: COPYRIGHT 1999 Datamonitor EXECUTIVE SUMMARY French Newspapers (SIC 2710) Market Value The French newspapers market shrank by 100.0% in 1998, to reach a value of FF0.0 million. Market Volume The French newspapers market shrank by 0.03% in 1998, to reach a volume of 9,131 Circulation (000s). Market Shares The top three competitors in the French newspapers market (Ouest France, Le Parisien and Le Figaro) account for 18.5% of the market between them. Distribution The leading three distribution channels in the French regional newspapers market (Shop Sales, Delivery and Post) account for 96.4% of the market between them. Market Forecasts In 2003, the French newspapers market is forecast to reach FF23.9 million, an increase of 13.6% since 1998. MARKET VALUE The French newspapers market shrank by 100.0% in 1998, to reach a value of FF0.0 million. The compound annual rate of change of the market in the period 1993-1998 was -100.0%. The strongest growth was in 1994, when the market grew by 2.6%. Table 1: French Newspapers Market Value: FF Mn, 1993 - 1998 Market Value FF Mn % Growth US$ Mn 1993 19.1 3.1 1994 19.6 2.6% 3.2 1995 19.8 1.0% 3.2 1996 20.0 1.0% 3.2 1997 20.0 3.2 1998 CAGR, 1993-1998: 1.2% MARKET VOLUME The French newspapers market shrank by 0.03% in 1998, to reach a volume of 9,131 Circulation (000s). The compound annual rate of change of the market in the period 1993-1998 was -0.1%. The strongest growth was in 1994, when the market grew by 0.2%. Table 2: French Newspapers Market Volume: Circulation (000s), 1993 - 1998 Market Volume Circulation (000s) % Growth 1993 9,168.0 1994 9,189.0 0.2% 1995 9,171.0 -0.2% 1996 9,152.0 -0.2% 1997 9,134.0 -0.2% 1998 9,131.3 0.0% CAGR, 1993-1998: -0.1% MARKET SHARES The top three competitors in the French newspapers market (Ouest France, Le Parisien and Le Figaro) account for 18.5% of the market between them. Ouest France products account for the largest share of the French newspapers market, with 9.0% of the market in Volume terms. The market is relatively fragmented, with the Others segment accounting for over one-third of the market (69.2%). Table 3: French Newspapers Market Shares: % by Volume, 1998 Company % Share Ouest France 9.0% Le Parisien 5.0% Le Figaro 4.5% Voix du Nord 4.4% Sud-Ouest 4.0% Le Monde 3.9% Others 69.2% Total 100.0% DISTRIBUTION The leading three distribution channels in the French regional newspapers market (Shop Sales, Delivery and Post) account for 96.4% of the market between them. Shop Sales account for the largest share of distribution in the French regional newspapers market, with 47.0% of the market in Volume terms. Delivery holds the equivalent of 69.4% of the leading channels share. Table 4: French Regional newspapers Market Distribution: % by Volume, 1997 Distribution Channels % Share Shop Sales 47.0% Delivery 32.6% Post 16.8% Free 3.6% Total 100.0% MARKET FORECASTS In 2003, the French newspapers market is forecast to reach FF23.9 million, an increase of 13.6% since 1998. The compound annual growth rate of the French newspapers market over the period 1998-2003 is predicted to be 2.6%. Table 5: French Newspapers Market Value Forecasts: FF Mn (1998 Prices), 1998 - 2003 Market Value FF Mn (1998 Prices) % Growth US$ Mn 1998 21.0 5.0% 3.4 1999 21.0 3.4 2000 22.0 4.8% 3.6 2001 22.5 2.3% 3.6 2002 23.1 2.7% 3.7 2003 23.9 3.2% 3.9 CAGR, 1998-2003: 2.6% Article A83678318 Datamonitor Industry Market Research, Annual 1998 pNA FRENCH NEWSPAPERS. (Industry Overview)(Statistical Data Included) Full Text: COPYRIGHT 1998 Datamonitor EXECUTIVE SUMMARY French Newspapers (SIC 2710) Market Value The French newspapers market grew by 0.0% in 1997, to reach a value of FF 20 Billion. Market Volume The French newspapers market shrank by 0.2% in 1997, to reach a circulation volume of 9,134,000 Circulation. Market Shares The top three competitors in the French newspapers market (Ouest France, Le Parisien and Le Figaro) account for 17.4% of the market between them. Distribution The leading three distribution channels in the French regional newspapers market (Shop Sales, Delivery and Post) account for 96.6% of the market between them. Customer Profile 35-59 yrs is the largest readership group in the French newspapers market, with 41.8% of the market by age of readers. Market Forecasts In 2002, the market is forecast to reach FF 23 million, an increase of 15.5% since 1997. MARKET VALUE The French newspapers market grew by 0.0% in 1997, to reach a value of FF 20 Billion. The compound annual growth rate of the market in the period 1992-1997 was 0.5%. The strongest growth was in 1994, when the market grew by 2.6%. The largest fall in the market came in 1993, when the market shrank by 2.1%. Table 1: French Newspapers Market Value: FF Bn, 1992-1997 Market Value FF Bn USDollar Bn % Growth 1992 19.5 3.7 1993 19.1 3.6 -2.1% 1994 19.6 3.7 2.6% 1995 19.8 3.8 1.0% 1996 20.0 3.8 1.0% 1997 20.0 3.8 0.0% CAGR, 1992-1997: 0.5% Source: MarketLine / SJTI MARKET VOLUME The French newspapers market shrank by 0.2% in 1997, to reach a circulation volume of 9,134,000 Circulation. The compound annual rate of change of the market in the period 1992-1997 was -0.2%. The strongest growth was in 1994, when the market grew by 0.2%. The largest fall in the market came in 1993, when the market shrank by 0.4%. Table 2: French Newspapers Market Volume: Circulation (000s), 1992-1997 Market Volume Circulation (000s) % Growth 1992 9,204.0 1993 9,168.0 -0.4% 1994 9,189.0 0.2% 1995 9,171.0 -0.2% 1996 9,152.0 -0.2% 1997 9,134.0 -0.2% CAGR, 1992-1997: -0.2% MARKET SHARES The top three competitors in the French newspapers market (Ouest France, Le Parisien and Le Figaro) account for 17.4% of the market between them. Ouest France accounts for the largest share of the French newspapers market, with 8.6% of the market in volume terms. The market is relatively fragmented, with the Others segment accounting for over two-thirds of the market (71.0%). Table 3: French Newspapers Market Shares: % by Volume, 1996 Company % Share Ouest France 8.6% Le Parisien 4.6% Le Figaro 4.2% Voix du Nord 4.1% Sud-Ouest 3.9% Le Monde 3.6% Others 71.0% Total 100.0% DISTRIBUTION The leading three distribution channels in the French regional newspapers market (Shop Sales, Delivery and Post) account for 96.6% of the market between them. Shop Sales account for the largest share of distribution in the French regional newspapers market, with 47.8% of the market in volume terms. Table 4: Regional newspapers Market Distribution: % by Volume, 1996 Channel % Share Shop Sales 47.8% Delivery 32.2% Post 16.6% Free 3.4% Total 100.0% CUSTOMER PROFILE 35-59 yrs is the largest readership group in the French newspapers market, with 41.8% of the market by age of readers. Readership amongst those aged60+ yrs is the equivalent of half of the most popular groups share. Table 5: French Newspapers Readership Profile: % by Age group, 1996 Customer Age % Share 15-24 yrs 18.8% 25-34 yrs 18.5% 35-59 yrs 41.8% 60+ yrs 20.9% Total 100.0% MARKET FORECASTS In 2002, the market is forecast to reach FF 23 Billion, an increase of 15.5% since 1997. The compound annual growth rate of the market over the period 1997-2002 is predicted to be 2.9%. Table 6: French Newspapers Market Value Forecasts: FF Bn (1996 Prices), 1997-2002 Market Value FF Bn (1996 Prices) % Growth USDollar Bn 1997 20.0 3.8 1998 21.0 5.0% 4.0 1999 21.0 0.0% 4.0 2000 22.0 4.8% 4.2 2001 22.5 2.3% 4.3 2002 23.1 2.7% 4.4 CAGR, 1997-2002: 2.9% Article A83938305 Read More