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The end of mass media: Aging andthe U.S. newspaper industry
The Silver Market Phenomenon
ySymposium
Tokyo, October 4, 2008
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I t d ti
Introduction• U.S. Boomers: largest audience forp p , magazines
gtelevision,, newspapers,• Aging, fragmenting audiences are aproblem for these media• Newspapers pose a special problem– WhatWh t isi theth ffuture
toff journalism?
jli ?
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U S Boomers
U.S.
B• DominatedD i t d andd shaped
hd economic,isocial and political scenes due to size
– Largest American generation - 78 million• Unique perspective (older Boomers):
coming of age in a time of dramaticsocial and cultural change (1960s &early 1970s)
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3BBoomers
hhave money andd spend
d it• Largest, mostaffluent U.S.
consumer group– 36% of adultpopulation– Disproportion shareof wealth andconsumer spending
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4BBoomers
andd mass mediadi• Grew up on mass media, especiallytelevision• Today, they remain the largest
audience for tv
tv, newspapers andmagazines– 52% adults 50-59 read a newspaper daily
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M
Massmedia
di runs away
• MostM td
don’t’t wantt tto sellll th
the valuel offolder audiences to advertisers• Prefer to focus on attracting younger
audiences--the future customer

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6Th challenge
Theh llforf mass media
di• Competition is growing• Audiences are fragmenting• Result: Young and older audiences
turn attention away from mass media

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Wh t drives
What
difragmentation
ft ti• Digital media• Customization• Aggregators• FreeFcontentt t

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8Th ffragmenting
Theti audience
diPre-internet
Newspaper

Internet era

Subscribe, browse

Read an article

MusicBuyy a CD

Download a songgTelevision
Tune in to several
shows, view adsView a segment or
Tivo; skip ads

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Impact:t ttelevisionl i iPrime time network tv audience down 30
percent in 10-year period ending 2005

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I
Impact:t music
i industry
i d t• Annual compact
disc sales down20%
– 1996: 3.4 billion– 2007:2007 1.9
1 9 billion
billi

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Impact:t N
Newspapers• Market share,share adsales, circulationfall• Stock market
valuations fall;consolidation
accelerates

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Wh
Wherehavehtheyth gone?
?
• Younger
Yo nger and older
audiences:– Time spent online
now rivals television– Soaring use ofsocial media
websites whereusers create content

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Wh
Where
have
h
theyth gone?
?
• 42% percent of YouTube audience isyears old35 to 54 y
• 30% percent of Boomers participate inuser-generated
usergenerated content• Adults age 35 to 49 are the biggest
users of digital video recorders
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Newspapers• Website traffic
growing at a robustpace• But economic value
i nott transferringist
f i
quickly enough

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NNewspapers
andd journalism
jli• Traditionally have
had the budgets to
support journalism• Provide the basic
scripti t ffor otherth
media

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Wh
Wherewill
ill journalism
jlicome from?
f?
“The civic“Thi i llaborb performed
fd
by journalists on the
ground cannot bereplicated by legions of
bloggers sitting hunchedover theirth i computer
tscreens."
Bill KellerExecutive Editor
New York Times
November, 2007
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S
Summary
andd conclusionl i• Newspapers may survive transition togenvironment
digital• But transition will be long andfinancially painful

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S
Summary
andd conclusionl i• During transitiontransition, newspapers should
re-focus on core audience of Baby
Boomers– Work to halt erosion of 50+ print readers• ConvinceCiadvertisersd tiththatt thi
thisaudience is valuable--don’t run awayffromit!
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19SSummaryandd conclusionl i• PWC study concludes:– 50+ media audiences willgrow 13% through 2012
– Strong growth willsustain traditional media
as digital transition
accelerates

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Questions, comments

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