Daily Newspapers Will Benefit Most From New Media, Finds Survey

In a new study of the impact of new technologies on media companies and traditional media, the European research company, MIB Group, has found that national newspaper publishers are likely to be the biggest winners from the emerging electronic technologies.

MIB’s study reports that national papers have the ability to create an unrivalled number of new revenue streams from online technology including online classified and display advertising, auctioning and club revenues. Furthermore, newspapers’ strong brands should prevent their online activities from the erosion of traditional revenue streams by new media.

Due to their brand recognition, the cost of creating similar brands online to rival the Sun or Evening Standard is huge, says MIB. It is also very likely that any UK companies which do begin to produce online content will turn to newspaper publishers to provide that content. The key for newspapers moving into the internet, says MIB, will lie in their ability to re-engineer the content and advertising supply chain so that content and advertising can be published in a number of different formats across a number of different media.

MIB argues that the same opportunities online exist for regional newspaper publishers as for the national papers. The risks, however, are greater as the relative low entry cost to producing local content might see increased competition from new companies. “The cost of creating a local brand is significantly lower than the cost of creating a national brand and this will allow a wider range of companies to enter the market,” says the report.

Newsquest and Northcliffe newspapers have both been quick to realise the opportunities of creating local content on the internet with their collaboration on the ‘This Is…’ series of websites (see Associated New Media In Joint Venture To Launch National Website).

MIB Group: 0171 687 0352