16th June 2016

Reuters says financial pressure mounting on publishers

An increasing move to mobile and the rise of ad-blocking software contributes to the problem.


Financial pressure is growing on publishers as they struggle to monetise content in an increasingly mobile-dominated market.

Newspaper groups are said to be the worst effected, according to Reuters, as they suffer from continually falling print revenues.

While The Independent has abandoned print entirely, The Guardian has suffered a £50M loss in the last year.

In abandoning print, The Independent lost around 75 employees.

In addition to this, News Corp Australia and Fairfax newspaper have announced a combined loss of 200 editorial staff due to cuts over the past 12 months.

Digital companies have also been affected, with BuzzFeed missing revenue targets, and both Vice and Mashable losing staff.

This would suggest that monetising both print and digital content is becoming increasingly difficult.

Reduced loyalty to any individual news brand thanks to a high choice environment is having an impact on publishers.

In addition to this, the majority of content is free to access as only a small minority is willing to pay for online news.

Brands such as the New York Times and the Financial Times - with unique, high quality content - are the only ones with the ability to achieve significant revenue from online subscriptions.

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