Statistical, Ecosystems and Competitiveness Analysis of the Media and Content Industries: The Newspaper Publishing Industry

The Newspaper Publishing Industry 
3
 
The reports are based on a review and synthesis of the available literature and (official and 
unofficial) data of the MCI sector, desk research, and several workshops.
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The results were 
reviewed by experts and at dedicated workshops. 
The reports aim to offer a reliable set of data and analysis, and also to contribute significantly 
to the debate about the economic health and development conditions that will support the 
future competitiveness of the European Media and Content Industries. 
Contract title: “Statistical, ecosystems and competitiveness analysis of the Media and Content 
industries”. 
Contract number: 151584-2009 A08-NL.
The contract was awarded by: Institute of Prospective Technological Studies (IPTS) of the Directorate 
General Joint Research Centre, European Commission. 
Main contractor: TNO. 
Project leaders: Andra Leurdijk, Sylvain de Munck. 
Partners: IBBT-SMIT. 
Project leaders: Peter Ballon, Sven Lindmark. 
IBBT-SMIT research team: Sophie de Vinck, Nils Walravens. 
IPTS MCI research team: Giuditta de Prato, Esteve Sanz, Jean Paul Simon. 
The checking and editing of the text by Patricia Farrer (IPTS) is gratefully acknowledged.
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First MCI workshop, IPTS Sevilla, 30-31 May, 2011: “The economics of Media and content industry (MCI). 
Approaches, case study, economic effect of the digital transition”. Second MCI workshop, IPTS Sevilla, 27-28 
October, 2011: validation workshop. All the presentations at the two MCI IPTS workshops are available at: 
http://is.jrc.ec.europa.eu/pages/ISG/documents/

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The Newspaper Publishing Industry 
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Executive summary 
The objective of this report is to offer an in-depth analysis of the major economic 
developments in the newspaper publishing industry. The report analyses the 
transformations of the industry brought about by digitization. It discusses how digitization 
affects content creation, distribution, aggregation and consumption of news, value networks 
and business models. It also looks at the competitive position of the European newspaper 
publishing industry in relation to these transformations, at opportunities and threats for the 
sector, and at policy implications.
The report focuses on newspaper publishers, and encompasses the production and distribution 
of printed newspapers, their online distribution and the competition which they face from 
other online news providers. The analysis integrates data from the statistical report of this 
project; and includes a database of 10 EU and 10 non-EU companies, plus two company case 
studies (Sanoma and Huffington Post).
The report is divided into five chapters. Following an introduction (Chapter 1), Chapter 2 
introduces the sector and its main economic and technological features. Chapter 3 analyses 
the value network of the European newspaper publishing industry, identifying the 
transformations taking place in the value chain and in business models as a result of the on-
going digitization process. Chapter 4 assesses the competitiveness of the sector, compared to 
the US and Asian countries and the potential for a European single market for news 
publishing. Chapter 5 identifies the main regulatory issues affecting the economic position of 
newspaper publishers. Chapter 6 concludes the report by weighing the strengths and 
weaknesses of the European newspaper industry against the opportunities and challenges 
posed by digitization and the internet. 
The study is based on a review and synthesis of the available literature and reports and on 
official (Eurostat) and unofficial (trade organisations and consultancies) data on the 
newspaper publishing industry.