While the publisher of UK newspapers, the Guardian and Observer, considers closing the print editions of those two media giants amid continuing financial losses, in South Africa, the picture is very different – for now.<\/p>\n
This is according to data from professional services group PricewaterhouseCoopers (PwC<\/a>).<\/p>\n According to an article in the UK Telegraph, under the headline: “Guardian ‘seriously discussing’ end to print edition,” senior figures at Guardian News & Media (GNM<\/a>) are seriously considering the move to an entirely online operation.<\/p>\n Although the Guardian\u2019s editor-in-chief, Alan Rusbridger<\/a> is believed to be holding hope to keep the print side of the paper running for a while longer; Katherine Rushton, media, telecoms and technology editor at the Telegraph wrote that the trustees of the Scott Trust – GNM\u2019s ultimate owner – are concerned that it does not have enough cash on its books to sustain the newspapers for that time period.<\/p>\n The Telegraph said\u00a0that Guardian publisher has spent several years fighting to stem losses of \u00a344 million a year. However, it has been slow to make savings and any money that it has clawed back has been spent on expanding its US and online operations.<\/p>\n \u201cThe investments helped to fuel a 16% increase in digital revenues to \u00a345.7 million last year, but this was not enough to balance GNM\u2019s operating losses which widened from \u00a331.1 million,\u201d the Telegraph said.<\/p>\n It reported that in 2011, GNM had looked at shutting down its \u00a380 million printing plant: \u201cHowever, it now seems more likely to stop running the presses altogether,\u201d Rushton reported.<\/p>\n In South Africa, however, the total newspaper market rose by 5.7% in 2011 to R11.4 billion\u201a according to PwC’s South African Entertainment & Media Outlook 2012-2016<\/em> report. This is due largely to strong growth in advertising spending, up 10.8%, the report stated.<\/p>\n PwC said that, although there was an increase in overall newspaper readership of about 7.7% in 2011\u201a this was mainly thanks to more people reading the same copy.<\/p>\n The survey highlighted a decline of 6.7% in paid unit circulation.<\/p>\n PwC stressed that South Africa lagged behind more developed countries. “As broadband penetration increases\u201a we can expect a decline in circulation in print newspapers. Because SA is still well behind other countries in broadband penetration\u201a it will experience rapid broadband growth in the coming years,”\u00a0\u00a0said Vicky Myburgh\u201a entertainment & media industries leader for PwC Southern Africa.<\/p>\n “Consequently\u201a we expect steeper declines in newspaper unit circulation compared with most other countries.”<\/p>\n PwC opined that as the cost of accessing the internet declines and more people become digitally connected\u201a they would eventually turn away from print newspapers.<\/p>\n The financial services group highlighted a trend towards tablets as a medium to source information. “Tablets are proving to be popular in SA and as prices come down\u201a we expect penetration to expand,” it said.<\/p>\n PwC said that as this trend towards tablets increases, so would the potential market for paid digital circulation increase.<\/p>\n The report projected that by 2016 paid digital unit circulation will total 86\u201a000, from only 2\u201a000 in 2011.<\/p>\n Related article<\/strong><\/p>\n Digital, print marketing boosts advertisers<\/strong><\/a><\/p>\n Digital advertising to grow as print sinks<\/strong><\/a><\/p>\n