Newspaper online Revenues have turned the corner. Great results oh ye of little faith.....

Interesting data which is beginning to show that the losses in revenues predicted for newspaper publishers by digital, isn't happening. Or at least, it's not happening for those titles who embrace digital.

Locally, recent figures for Independent News and Media are showing strong growth in Internet revenues. Hardly surprising because of the way in which they've embraced it. A surge of over +17% in digital revenues.

But the Uk's Financial Times (FT) have shown operating profits of 55 million stg. That's UP +17%. The Telegraph achieved a 4.6m increase to 61 million stg. The Independent have reduced loses from 17 million to 12 million - a 5 million positive uplift.

The Guardian and The Observer showed an increase in digital revenues of +24 million to 69 million. 

Further afield, The New York Times now has 760,000 subscribers to its digital paywall and their stock is hitting new highs. Highs!

Jobs Ads are beginning to return and in particularly, a rise in lucrative property advertising - both ideal for greater online returns. 

So the picture for online newspapers is looking brighter and they'll gain too through the ongoing flight of advertisers away from traditional TV. That's the Holy Grail because TV was the place for big advertisers with big budgets.

Whilst online revenues generally aren't compensating for losses in print cover prices and print advertising, clearly for some, that process has started. We've reached the tipping point.

Online Newspapers through promoting story links on Social Media, are gaining audiences and that is the fundamental. If you have the audience, the advertising must follow. 

Oh ye, of little faith.

New York Times launch digital editions for China + Brazil. Newspapers are flourishing......online.

 
Given all the doom and gloom about print publishing in the digital age in times gone past, in fact the Internet has turned into an opportunity for newspapers as I've said many times before (here being one http://streamabout.blogspot.ie/2012/08/tv-broadcasters-watch-out-newspapers.html)

Now, The New York Times has just launched a new digital edition in Portuguese which is to target Brazil. It includes translated stories as well as contributions from local reporters and images. About 40 articles a day with a focus on news, business and culture. Original photography and local graphics will come later they say.

Earlier this year, they tested a Chinese language version of the paper which is expected to be fully available before year end. Interesting too, that you'll see a screenshot at the top of this blog and who is the advertiser in the top ear spaces? Cartier.

Whilst the US edition has a paywall (subscription) which by all reports has been a great success (I'm hearing the number of subscribers has now exceeded the number of traditional readers - even if that's wrong, it's clearly an upward trend), these editions will remain free for now.

So newspaper publishing online is becoming a fast growing business and these launches, show optimism. In time, newspapers will be 90% focused on their online papers with the printed versions taking a back stage - no harm there at all.

Irish newspapers are also showing signs of getting deeply involved in the digital space too, largely through video, bringing greater strengths to their groups. They have the credible brands to deliver news and if readers want that online, rather than printed, then why not give it to them? It's simply a matter of a different format - nothing to be scared of.

The difficulty with news online is the "trust" factor - you don't know what you're reading nor by whom - whereas traditional brands have got that trust. And so if you read a brand like The New York Times, The Irish Times or The Irish Independent online, you know you can trust it just as much as the printed version. 

You'd expect serious investment to follow in newspapers online as these initiatives grow. They're actually building value with the possibility of capital gain in their online presence. In other words, someone will want to buy them. In Ireland, when we question why well-known investors get involved in investing in newspapers now, don't. Stop and think.

And when you think of what we were saying some years back, about the inevitable decline of publishing, how mad is that now?

Instead it's an example as to how traditional business, once it gets its head around digital, can get into the space in a good way. Imagine the market opportunity in China for The New York Times? Wow. And imagine if they tried to do it the old way with paper producers, printing houses, vans, retailers, etc.

All they have to do now, is to do it online with an emphasis on design and they'll flourish. Content is and always will be, king.