media update’s Taylor Goodman investigates the obstacles plaguing the publishing industry.

Over the last few years, the publishing industry has endured multiple blows, the most detrimental of which is economic fluctuations. This has led to declining revenue across various media, specifically newspapers, magazines and books. 

Technological advances in the industry, like the rise of social media, proved to be another hindrance to the industry.

Publishers have reported a decline in readership because of:
  • an apparent decline in the quality of content in these publications
  • the readers reluctance to pay for digital content
  • the spread of fake news and misinformation
  • an over-reliance on ad revenue
All of the above issues have been accelerated by the recent economic decline, which saw publishers forced to advance five years down the line when they were by no means equipped to do so.

The publishing paradox 

As with most businesses, the pandemic has had a disastrous effect on the publishing industry, with some even calling it the ‘greatest threat to the survival of good local news organisations’. 

This, coupled with the rise of digital journalism, means that information has become so easily accessible that print publications have suffered. This is because readers could access news so easily through third-party sources, like the Internet, that they found paid subscriptions to online publications unnecessary.  

This led to a paradox for publishers as there was a massive demand for information and a major boom in web traffic but a significant decline in revenue. This spike in traffic is due to consumers having more time on their hands as they self-quarantine, thus having more time to consume content. 

Despite the spike in consumer interest, the publishing industry is still struggling. There has been a significant drop in ad revenue, which is unfortunate as 50% of publishers reported that direct-sold advertising was a large or very large source of revenue for them, according to Digiday.

There also has been a drop in newsstand sales, a breakdown in distribution channels and the shutdown of events. 

The aftermath 

This strain on the industry has resulted in the closure of many publications and businesses putting their journalists on temporary unemployment in order to make ends meet. 

It appears that nobody is safe from the wrath of the current economic climate as publishing houses like Media24 and Reach publications (publishers of the Mirror) experience hardships. 

Media24 announced that it is considering the closure of five magazines and two of its  newspapers. 

Additionally, the publication will be outsourcing and reducing the frequency of its remaining monthly magazines, making two of their newspapers digital-only and cutting staff. 

These actions come as a response to the pandemic, with Ishmet Davidson, CEO of Media24, stating that “the pandemic has accelerated the pre-existing and long-term structural decline in print media, resulting in a devastating impact on our own already fragile print media operations — with significant declines in both circulation and advertising since April.”

Reach publications plan to cut 550 staff members, about 12% of their workforce, after reporting a 27.5% drop in revenue. 

The publishers have fallen victim to the exact paradox discussed above as they have seen a significant increase in traffic but due to reduced demand in advertising, it has not seen increases in digital revenue.

Although the future of publishing looks rather dismal, publishers may find refuge in optimising their subscription structures. This may be beneficial because if your publication is offering a unique, differentiated service, consumers will be more inclined to pay for it. 

This trying period will serve as a real test to the publishing industry, one that may lead to the end for a few publishers. In a particularly uncertain period, one thing that is certain is that publishing will need to evolve. 

What are your views on how Coronavirus has affected publishers? Be sure to let us know in the comments section below.

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Want to learn more about the evolution of the media? Be sure to check out The pros and cons of independent media here.
*Image courtesy of Vecteezy