Page 53 - Newspaper of the Future Teaching Guide

JP: Revenue/Costs/Profit

JP may be seen as a holding company for a portfolio of newspapers.

Centralised control operated on a portfolio basis but with less and less
autonomy allowed to the individual units as the growth strategy unfolds.

A problem may arise in the failure to live up to the JP motto

Revenue

JP makes its revenue from selling its newspapers and advertising space
within them.

A major threat is the development of ad blockers which eliminate ads
from browsers thereby making newspapers less than attractive to
advertisers.

Circulation Revenue

Circulation figures for newspapers have steadily declined as consumers
switch from print media to digital.
The result has been a corresponding decline in sales revenues to which
the media companies have in part responded by increasing cover price
an almost counter intuitive action.

Advertising Revenue

As circulation figures fall advertisers see the reach of their products
diminish and as such their potential revenues. It is unsurprising
therefore, that they take their business to other suppliers that have a
greater reach and which can reduce their unit costs and increase their
revenues.

Minus Costs

Revenue – costs = profit