BIA/Kelsey: Newspaper Worse Than Expected.
BIA/Kelsey is revising its forecast for newspaper revenue down as newspapers continue to struggle to make the transition to a digital world. Where BIA/Kelsey initially expected a total decrease of -5% for the newspaper industry (print decrease of -6.6% and online increase of 6.0%), results in the newspaper industry so far this year has been more disappointing. It now expects a total decrease of -8.1% (print decrease of -10% and online increase of only 5.0%).
The update from BIA/Kelsey says, "With some high-profile newspapers cutting back on the number of days being published and the continued erosion of readership, the outlook for newspapers is proving exceptionally more challenging than expected. For the entire period of 2011 through 2016, BIA/Kelsey expects the compounded annual growth rate of all newspaper advertising to end up being -5.4% (-7.3% for print advertising and 4.6% for online advertising).
For 2013, BIA/Kelsey expects a -6.6 percent for print and an online increase of 5 percent. Collectively, print and online revenue will go down 4.9 percent.
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