School of Business FACULTY OF HUMANITIES Print and Online Newspaper Interaction Effects on...
-
Upload
patrick-cunningham -
Category
Documents
-
view
217 -
download
3
Transcript of School of Business FACULTY OF HUMANITIES Print and Online Newspaper Interaction Effects on...
School of BusinessFACULTY OF HUMANITIES
Print and Online Newspaper Interaction Effects on Circulation Change
Dr Gary Graham LUBS
Dr John Hill LUBS
Dr Anita Greenhill MBS
Phase 1: In depth qualitative interviews Dresden (n=11) March 2011Leeds (n=15)April 2011
Phase 2: NS Regional Newspaper UK Database (n =100)SEM analysis (still in development).
British Academy funded project: SG100163
Methods
Leeds
London
MAP OF THE UK (LEEDS)
● Leeds’ population750,000 people make Leeds the second-largest metropolitan district in England.
● Business in Leeds112,000 people work in the city’s financial and business sectorsLeeds is the UK’s third-largest manufacturing centre, with 1,800 companies employing over 39,000 people. It has recognised strengths in advanced engineering, printing, chemicals and food industriesThe city is fast developing as a centre for the new, online economy.The city's media, communications & advertising sector is growing by about 10% a year.
● Leeds’ economyThe city has the most diverse economy in the UKLeeds has a GVA of £15.4bnAround a third of GVA is generated by the financial & business services sectors.
● Transport in LeedsLeeds Bradford International Airport serves 70 destinations in 30 countries, including North America and AsiaLeeds is linked by road to London and Edinburgh via the M1 and A1 and to the east and west coast ports via the M62London Kings Cross can be reached by rail in just over two hoursManchester International Airport can be reached in just over an hour by road or direct rail link.
YORKSHIRE POST (40,160)YORKSHIRE EVENING POST (68,635)
JOHNSTONE PRESS
The regional publisher of more than 250 newspapers across the UK saw pre-tax profits fall by 47.4 per cent from £26.1m to £13.8m in the 26 weeks to July 2011. During the period headcount was reduced by 179 to 5,049
DRESDEN
BERLIN
MAP OF GERMANY (DRESDEN)
Europe
Germany
Saxony
Dresden
51:03:00N 13:45:00E
113m / 372ft
Euro (EUR)
German
Central European Time (CET) (UTC+1)
Friday 13:17:39
http://www.aviewoncities.com/dresden/dresdenfacts.htm
The media in Dresden include two major newspapers: the Sächsische Zeitung (Saxonian Newspaper, circulation around 300,000) and the Dresdner Neueste Nachrichten (Dresden's Latest News, circulation around 50,000)
Sample classification details of newspapers participating in this study
Year established (average) 1896
Cover price (average) 48p
Issues per week (average) 6
Urban-based (n) 58
Rural-based 42(n)
Circulation (range)(average)
153,724 9(max) to 14,611 (min)40,419
Holding company ownership (n) 84
Independent ownership (n) 16
Readership (average)
Regional/local population (average)
51,433
378,584
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2005 2006 2007 2008 2009 2010
1,7781,719
1,6501,582
1,5091,435
Mill
ion
co
pie
s
UK regional newspaper sales (by volume), 2005-10Source: Newspaper Society, 2010.
Observations: The 21st Century News Media landscape UK
Leeds University Business School
• Using new types of media to reach local communities (e.g. Facebook)
• Recognizing the role of Facebook and Google as high traffic generating websites
• Online journalism as manual news aggregator competing with algorithmic websites (e.g. Google)
• Delivering local news to a mobile device (e.g. Apple iPhone, Tablet PC)
• Implementation of a useful subscription model for different mobile devices
• Need for location-based news and services by using Global Positioning System
Source: DD+V, Dresden workshop
Dresden
•The original financing model of newspaper (2/3 advertising and 1/3 sales revenues) does not take effect in the internet.•Most online portals from newspaper publishers operate in deficit. German newspapers are less profit centric than their UK counterparts.•Analogous to the pre-1980 newspaper environment in UK. •Reservation: many are conglomerates (Sachsische Zeitung partnered with a profitable printing business).•Online newspapers competing with public-service broadcasters (e.g. ARD, ZDF)•Restrictions of a limited regional market (economies of scale)•Role of local partners, alliances, acquisitions (economies of scope)•Over-supply in advertising leads to sinking advertising rates and therefore to sinking advertising revenues.•In addition, the web portals of the traditional content providers have a much lower reach compared to pure Internet services (e.g. SPIEGEL Online vs. GMX).
SZ Subscriptions
Leeds University Business School
Product:
Producer:
Benefit:
Latte Macchiato grande
McDonald‘s
5 minutes
Sächsische Zeitung
DD+V
1 day
1,99 €1,99 €
1,10 €1,10 €
Source: DD+V
Extant literatureTable I Extant literature on cross media synergy
Author Publication Result
Tarkiainen et al., (2009) Internet Research l Authors studied the effect of web site extension on the parent news-magazine brand. The results suggest that the web site can complement the print edition brand. However they conclude that more research is needed on factors that are related to extension success. Ulutas & Islier (2009) Internet Research This study focused attention on the differences between the front page layout of printed and internet newspapers. They highlight the
need to move away from static printed layout designs to optimize the potential of dynamic internet environments.
Keng & Ting (2009) Internet Research Authors explored cross media synergy from the concept of interactivity. They examined the emotional experiences readers gained from reading blogs. News blogs were shown to have much higher levels of participation and emotional commitment of users than conventional news media channels. Grewal et al., (2010) Jnl. of Interactive Marketing They compared pricing between offline/online channels. Because the marginal cost of another product is close to zero, a “fair price” for the consumer is much lower than that of traditional newspapers. Propose a “versioning” rather than a fixed copy price. Whereby you produce digital products with different quality ties to take advantage of the consumers’
willingness to pay for online news.
Leeds University Business School
Paywalls
Observations Theory (TCE?, Transactional efficiency)
Conceptual Model – Market development through print/online synergy
Synthesis
Empirically driven synergy model
We state the following hypotheses that predicts thereis cross-media synergy between print an online media presence:
H1: Printed supply chain product characteristics (business years, price, number of issues (per week), classified advertising rates (lineage) are positively intertwined with internet channel service presence (interactivity, daily unique users, mobile internet users, user generated content, convergence platforms, digital editions and paywalls). H2: Interrelations between printed supply chain characteristics (business years, price, number of issues (per week), classified advertising rates (lineage) and online service presence (daily) unique users, mobile internet users, user generated content, interactivity, convergence platforms, digital editions and paywalls) have a positive effect on the rate of circulation change.
Hypotheses
Clemons & Lang, 2003; Geyskenset.
al., 2002; Thurman, 2009.
Constructs and relevant literature for the theoretical model
Construct Item label and description Relevant literature
Print activity
Interactivity tools
Convergence tools
BusYears: number of years in circulation
Price: cover price of the newspaper
Issues: number of printed issues per week
Classadlin: cost of classified advertising lineage rates
Displaypt: cost of display advertising lineage rates
Classadon: cost of online classified advertising lineage rates
Dailyunique: number of unique daily online visitors
Mobile: number of mobile users
Interactool1: number of social media tools
UGC: different types of user generated content
Convergto: multi-media platform for distributing news content
Diged: specifically designed online news product
Paywalls: paid subscription to access online news content
Popmn: population of the newspaper community.
Franklin, 2008; Picard, 2006; Meyer,
2008; Mitchell, 2009; Mintel, 2007.
Co-creation
Paywalls
Howe, 2006, 2008; Li and Bernhoff,
2008; Deuze& Neuberger, 2007.
Greenslade, 2010.
Online presence
Normal P-P plot of standardized residuals
Results: Print/online presence inter-correlations
Inter correlation effects
Established daily unique users (ϒ = .218/ p= .029) mobile internet access users (ϒ = .217/ p= .030)
High price daily unique users (ϒ = .210/ p= .036) mobile internet access users (ϒ = .213/ p= .033)
High advertising daily unique users (ϒ = .200/ p= .045) mobile internet access users (ϒ = .199/ p= .047)Digital editions higher number of issues (ϒ = .191, p =.051
Total Variance Explained
Comp
onent
Initial Eigenvalues Rotation Sums of Squared Loadings
Total % of Variance
Cumula1tive
% Total % of Variance Cumulative %
1 4.091 40.914 40.914 3.655 36.500 36.500
2 2.396 33.965 74.879 1.466 14.660 51.560
3 .728 12.121 87.000
4 .600 5.999 92.999
5 .348 3.475 96.474
6 .208 1.282 97.756
7 .072 1.085 98.841
8 .060 .599 99.441
9 .034 .475 99.916
10 .008 .085 100
Extraction Method: Principal Component Analysis.
Factor analysis
PSCC
.33
BusYears
e1
.58
.16
Price
e2
.40
.20
Issues
e3
.45
OSP
.04
Convergto
e8
.98
MobileIntacc
e6
1.00
Dailyunique
e5
.42
.20
.06
1.00 .99
Hypothesis 1 Model TestingPath analysis parameter estimates
.00
PSCC
.45
BusYears
e1
.67
.17
Issues
e3
.41
.00
OSP
.04
Convergto
e8
.98
MobileIntacc
e6
1.00
Dailyunique
e5
.201.00 .99
r2
LC.14
Logcirce4.38
1.06
-.22
r1
.35
Hypothesis 2 model testing path analysis parameter estimates
Summary table: path analysis parameter estimates
Path model produced a sound good fit to the data X2 = 19/4, p> 0.01; GFI = 0.968; AGFI = 0,905; NFI = 0.926; RFI = 0.827; IFI = 0.970; TLI = 0.926;CFI = 0.968; PNFI = 0.937; RMSEA==0.066; RMR= 0.066.
Model 1Latent effect PSC C OSP 0.42 (7.71) P>0.001(Covariance )
Figures in parentheses represent unstandardized t-values
Model 2Latent effects PSCC LC1.06 (5.34) P>0.05
OSP LC - 0.22 (3.64) P>0.001
(Regression coefficients)
Discussion
● The SEM Model 1 shows a significant positive relationship between Printed Supply Chain Activity and Online Service Presence thus supporting H1.
● The SEM Model 2 does not show a significant positive path between Online Service Presence and Circulation Change and therefore does not support H2.
Dynamics of Multichannel Competition
● New organizational forms emerging. - Leveraging across channels - Optimal resource allocation
● OSP leading to negative change (cannibalization) in circulation change (homogenous experiences across channels, same experience with the brand).
● Better performing firms tailor each channel’s strength, harmonizing how channels work together, sum greater than the parts.
● Brand presence vital in the “pick and mix” of news media actors competing in the mass proliferated digital age.