No Long-Term Decline In Newspaper Sales

According to a Mintel Market Intelligence report, ‘National Newspapers’, the recent increases in circulation among national newspapers are in actual fact price-led. Volume sales of newspapers increased during 1994 by 2%, due to the price war, but there is no evidence to suggest that the long-term decline in sales has been reversed and that the increase in 1994 is anything but price-led. Consumer expenditure on national newspapers has fallen in real terms since 1989 and the decline continued in 1994. The market at current prices was valued at £2.9 billion in 1994 (expenditure plus advertising); this is a decrease of 10% on 1989. In the pre-price war period of 1990 to 1993, all sectors witnessed declines in sales, with the tabloids faring worst. The price war saw sales of both tabloids and broadsheets increase. Sunday paper sales have continued to fall.

The above the line expenditure increased in 1992 and 1993, and the industry continues to employ a variety of methods to promote sales. Below the line campaigns have also been more widely used and there has been a recent trend towards broadcast sponsorship.

Consumer research confirms that the most important features looked for in national newspapers was coverage of current events followed by television and entertainments, international news and general interest stories. Only 6% of respondents stated that a reduced cover price was a factor when buying a newspaper.

Mintel’s future predictions for the industry are of a continued but slow fall in volume sales once the current price war ends. The duration of the price war is crucial to publishers’ profitability and this must bring into force doubts over the future of some titles. Reasons cited for the long-term decline in sales are the competition from other media, trends in usage of leisure time, and demographic shifts.

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