WORLD PRESS TRENDS - World Association of Newspapers

TAIWAN
Commentary - Government Information Office
Taiwan’s newspaper industry grew rapidly after the
government’s lifting of restrictions on new newspapers in 1988.
Since then, many local small-sized newspapers have emerged.
Influenced by the developments of communications technology,
the newspaper sector has become increasingly commercialized,
with profit as the primary objective. Accordingly, newspaper
content has become popularized. Fierce competition with
electronic media for readers and advertisers led to a discernible
decline in circulation and advertising in 2002.
Declining circulation and sharpening competition
From 2001 to 2002, the number of newspapers in Taiwan
increased from 451 to 474. But because more readers, specifically
the ‘generation x’, get their news from television or the internet,
actual newspaper readership has declined. Soaring pulp prices
on the international market and shrinking advertising spend
have also led some newspapers to cut back the number of pages.
In addition, evening newspapers saw their circulation decrease
because printing deadlines were pushed back due to the
extended closing time of the stock market.
Newspaper business has become increasingly difficult. Many
newspapers have been operating in the red, forcing some to cut
salaries, reduce their staff, or encourage retirement with special
incentives. Competition from the internet and cable television
has further squeezed newspapers’ revenues. Furthermore, free
papers have thrived by targeting specific readerships or catering
to local audiences. The popularity of free tabloids circulated at
the Taipei Mass Rapid Transit stations in the greater Taipei
metropolitan areas serves as an example.
Large newspapers still maintain their traditional advantage. On
October 2nd 2002, the China Times Group, owner of the China
Times, became a mega-media newspaper by acquiring a large
stake in CTI, a satellite channel. Smaller newspapers are coping
with the threat by customization, or even by increasing the
dosage of sensational news. One possible threat comes from
the Hong Kong-owned tabloid, the Apple Daily, scheduled to
make its debut in Taiwan in April 2003.
Shrinking ad revenues and changing marketing pattern
According to statistics compiled by Brain Magazine, the
TAIWAN
advertising revenues of newspapers in 2002 totaled around
NT$16.1 billion, down 21.84%, or NT$20.6 billion, from 2001.
Newspaper advertising revenues accounted for 19.3% of the
overall media advertising market, ranking second to cable
television’s share of 23.78%, or NT$19.7 billion in 2002.
It should be noted that competition against newspapers comes
from the internet and new mobile media. The internet has an
edge over newspapers in marketing advertising and market
channel; advertisers can directly take merchandise orders from
customers. Internet job search engines are also attracting the
attention of advertisers, especially companies from the hi-tech
industry, seriously affecting wanted ads, which traditionally
make up the bulk of a newspaper classified section.
Another new competitor is mobile media. Given mobile phone’s
popularity in Taiwan, advertisers tend to use MMS (Multimedia
Messaging Service) to transmit merchandise messages directly
to potential buyers. To get more advertisers, newspapers now
directly market to companies, instead of through agents, by
offering special prices, exchanging advertising space for
merchandise or services, or selling ads at a cut-rate prices
Moreover, newspaper companies have sold databases and
organized seminars, conferences, or exhibitions, in an attempt
to generate extra revenues.
Conclusion
Economic recession dented newspaper advertising revenues in
2002. Competition from new technological media, such as the
internet and mobile media, with multi-media functions that
allow direct marketing and swift commercial transactions, has
hurt the industry. Newspapers have to introduce cost-cutting
measures such as reducing the number of its pages, laying off
employees, and lowering prices for survival. Or they have to
count on active direct marketing to increase market share and
revenue.
In conclusion, facing the competition in content and advertising,
the newspaper industry is well prepared in terms of structure
and marketing. The impact of the Apple Daily’s appearance in
Taiwan in April 2003 is something requiring further observation.
POPULATION
Population by age and sex
All individuals Male Female Households
000 % 000 % 000 % 000
Children 4,597 20 2,396 21 2,201 20 6,802 *
16-24 3,684 16 1,892 16 1,792 16
25-34 3,701 16 1,879 16 1,822 17
35-44 3,808 17 1,931 17 1,877 17
45-54 3,067 14 1,541 13 1,526 14
55-64 1,620 7 795 7 825 7
65+ 2,024 9 1,042 9 982 9
Total 22,501 100 11,476 100 11,025 100
Source: Ministry of the Interior
* 2001 data
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WORLD ASSOCIATION OF NEWSPAPERS - WORLD PRESS TRENDS 2003