The viability of local newspapers branching into e-papers activity

Abstract

Newspapers have been around in Malta for almost 500 years. They have endured, like elsewhere in the world, the threats of radio and television. The 20th and 21st centuries have now posed a new threat - the internet and its multifaceted multimedia availability. Foreign newspaper publishers have already turned this threat into an opportunity by branching into electronic newspapers. What about the local scenario? This study goes through an analysis of estimating the incremental costs to the existing newspaper publishers of implementing a full online subscription - an e-paper. It evaluates the response of readership to this new concept. It also estimates the incremental revenues of newspapers through the possibility of a larger market share, both locally and abroad; and also estimates the incremental advertising revenue. The findings show that Maltese electronic newspapers would attract a substantial incremental demand. With prices being 20% (daily e-paper) and 14% (Sunday/weekly e-paper) lower then hard copy newspapers, whilst incurring minimal additional costs, newspaper publishers could tap into a niche market, generating additional contributions, thus making local e-papers viable.