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Further consolidation in regional press ‘inevitable’

The regional press industry will be subject to further ‘inevitable’ consolidation, according to a new report published by a media analyst firm.

Enders Analysis has predicted that there could be as few as one or two ‘massive corporate entities’ within just a few years, along with a long list of smaller companies.

A report by the company says the regional press has been left behind as TV and the largest national newspapers have seen advertising growth, which has not yet spread to local media.

Claire Enders, the founder of the company, predicted in 2009 that half of the UK’s regional newspapers would close by 2013 but Douglas McCabe from the analysts admitted last year this had been ‘unnecessarily pessimistic’.

In the latest report on the industry by the firm, it highlights how the regional press has suffered declines in recruitment, auto and retail advertising in 2010 – despite also having ‘colossal falls’ the previous year.

It says: “Operating profit recovery in 2010 demonstrates firm management cost control, although the largest businesses have suffered 20pc decline in annual profits since 2006.

“Publishers have engaged in various brand extensions, yet digital and other revenues remain stubbornly low, suggesting the scale of opportunity is destined to be a fraction of that from the sector’s recent past – and that consolidation is an industry inevitability.”

Last month Trinity Mirror made clear its intention to expand its regional press portfolio in its annual results statement.

6 comments

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  • April 7, 2011 at 2:26 pm
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    It’s being so upbeat that keeps her going, ain’t it?

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  • April 8, 2011 at 8:54 am
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    Well done Clare, thats it keep talking us down! The reality being that if unburdened by the debt incurred on the back of rediculous multiples paid ( Under the guidance/encouragement of companies like yours ) to expand, even JP delivers a better operating margin than most PLC’s. But thanks for sharing the bloomin obvious with us, how are the fees for industry vouyers these days by the way!

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  • April 8, 2011 at 9:15 am
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    It’s pretty much common sense to me. It’s the vicious circle thing – you get rid of your key staff, employ kids who have no real feel for the job, standard of paper plummets (and please don’t say they haven’t) etc etc. Add it to lack of spending power due to financial crisis and therefore a lack of money for advertising and you know what the inevitable outcome is. Whether people in the industry like it or not, never have regional newspapers been less relevant. I remember the paper I worked at last declared, despite mounting evidence to the contrary, that ‘Life is Local’. No it ain’t, people don’t know their neighbours any more. Never has life been less local. So in short, regional newspapers/ media companies as we know them are doomed.

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  • April 8, 2011 at 9:41 am
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    Well, if Claire Enders says it’s true it must be cobblers. The consolidation would just add more debt and bureaucracy. If newspapers are to survive the big groups that own them have to die.

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  • April 8, 2011 at 11:07 am
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    Claire is right, though I would suggest 2015 as the year. But good local journalism will continue, in the form of hyper local magazines set up by newspaper journalists who live in the community they serve and are fed up with death by 1, 000 cuts. Local newspapers exploded onto the scene in the mid-late 19th century. History will undoubtedly repeat itself!

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  • April 8, 2011 at 12:19 pm
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    Harold: Life is local, provided that it has genuinely local media at its heart. Unfortunately, unless there’s a local start-up, it hasn’t. Slogans like that from the big newspaper groups are a con – and Mr Osato, as usual, he talk sense.

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