More consolidation "inevitable" for regional press
A media analysis firm has cautioned that the regional newspaper industry will "inevitably" face consolidation after advertising revenues failed to bounce back in 2010.
The latest Enders report confirms that growth in advertising for TV and the largest popular newspapers has not spread to local media, with regional press suffering declines in recruitment, auto and retail in 2010.
"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," Enders said.
It predicted we would see "even fewer massive corporate entities, perhaps as a few as one or two within a few years", and a "long tail of small players".