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PRINT U.S. Publishers Need To Invest US publishers could boost revenues and improve the competitiveness of their newspapers by investing in more modern production facilities. By Peter Klaue One of the reasons US newspapers are in a significantly worse spot than publishers in Europe seems to be that they have failed to modernize their plants to improve their ability to print colour and produce targeted local sections. Most American newspapers operate plants that are 15 to 20 years old – production equipment typically is half as old at publishing companies in Austria, Germany, the Netherlands, Scandinavia or Switzerland. State-of-the-art equipment not only enables full-colour capabilities but also considerably trims production costs by enhancing running efficiency. Limited colour capacity in the US not only makes newspapers less compelling to readers but also is a major negative factor for advertisers. First, black-and-white advertising is not as captivating to readers as those printed in full colour. Second, and perhaps most important, is that most US newspapers continue charging advertisers huge premiums for the relatively limited number of colour positions available in their pages. Publishers justify these higher rates by saying it costs more to print colour on their outmoded presses – as if customers were responsible for the industry’s lack of investment, instead of the other way around. With the charge for a colour ad in a US paper often three or four times the cost of a blackand-white spot of the same size, American papers are challenging advertisers to spend money with them, instead of encouraging them to do so. By contrast, papers in Europe take advantage of their modern plants to make colour so widely available that colour ads are the norm, rather than black-only. Because colour is routinely available in Europe, newspapers typically don’t charge extra for advertising but, rather, charge all advertisers the same rate. And that rate is considerably higher than the average rate charged in the United States. The 15 largest newspapers published in Switzerland charge an average of US$42.90 per thousand readers, as compared with CPMs ranging from US$19 to US$25 in the United States. So, Dutch, German, Scandinavian or 14 N&M NEWSPAPER&MAGAZINES 1/2008 Swiss papers generate, on average, between 1.5 and 2 times more revenue per advert than their American counterparts. Modern equipment also makes it possible to efficiently print the paper in more sections. Where a typical European newspaper is printed in four or five sections (including at least one highly targeted local section), many US publishers actually reduce the number of sections in their papers to shave paper costs and compensate for the inefficiency of their ageing production lines. At a time when most commentators and publishers agree that local news is a top priority for US papers, the trend toward eliminating sections is going in the wrong direction. Local sections are not only popular with readers but also represent a major source of potential advertising. When outdated equipment makes it too expensive or all but impossible to print and distribute targeted local sections, newspapers lose a major opportunity. Although US newspapers are suffering through the worst revenue and profit declines in their long history, they may want to consider re-investing in their press facilities before it is too late. And one of the most successful publishers in the world has done just that. Rupert Murdoch invested nearly US$1.2 billion in new plants in the UK to significantly increase colour capacity and output. Where such investments are out of reach, publishers need to get together to survive. News International’s plant in Broxbourne, The Atlanta Journal-Constitution (AJC) has joined other prominent newspaper publishers including The New Strait Times Press of Malaysia and Gannett subsidiary Newsquest, UK in selecting Q.I. Press Controls’ mRC product. The AJC opted for 48 mRC cameras for closed loop color registration. Additionally, they have ordered Q.I. Press Controls’ IQM system for quality reporting. Each of the AJC’s four TKS presses consists of twelve footprints and a doublefolder. All press lines will be equipped with 12 mRC scanners (48 in total) in order to enable perfect color register, using the world’s smallest register marks, as well as to ensure minimum waste. Richard Hawes, AJC Director of Operations explained, “We investigated the market for UK, prints Telegraph Media Group’s flagship publication. Sweden’s V-TAB prints papers for half of the newsstand racks – and this in a country which, by size and density of population, offers challenges in distribution comparable to those in rural US states. Recent decisions in the United States heading in that direction include plans to outsource printing of the Boston Herald, Washington Times and Idaho Statesman. The San Francisco Chronicle has contracted with a commercial printing company to build a new plant and take over production, while its sister paper, the Albany (NY) Times-Union is building its own new plant. Some publishers may argue that it already is too late to turn around their papers and will elect, unfortunately, to squeeze what’s left from their businesses and then liquidate them. However, those who have not given up might take a close look at the newspapers that are seeking to consolidate printing operations in order to reduce costs, while sharing the costs of modernizing their plants. Such decisions will not come easily in the “squeeze and cut” mode that has gripped the US newspaper industry. But this may be the time for publishers to take bold action. *The views expressed in this editorial are those of the writer and not necessarily the publisher Peter Klaue is the owner of Peter Klaue Media Consultancy in Hamburg, Germany, which provides strategic consulting and M&A advisory services for the publishing industry. AJC first to install mRC in the US register control systems very thoroughly, and Q.I. Press Controls offered a superior product that met our needs.” Hawes continued, “After visiting The Boston Globe and hearing how pleased they were with Q.I. products, we felt even better about our decision.” The Atlanta Journal-Constitution is the leading source — both in print and online — of news, information and advertising for metropolitan Atlanta, reaching a total print and online audience of more than 2.2 million people each week. Every month, nearly 2.5 million unique visitors access the newspaper‘s Web sites, including ajc.com and accessAtlanta.com. The Atlanta Journal-Constitution is owned by Cox Enterprises, Inc., one of the nation‘s leading media companies.
Kodak CTP installation pays off for Independent Newspapers Following a lengthy evaluation process, Independent Newspapers has invested in a comprehensive Kodak Computer-to-Plate (CTP) Solution for all its print sites in South Africa, incorporating six Trendsetter News Thermal Platesetters. Independent Newspapers is wholly owned by Independent News & Media plc, a leading international media and communications group with worldwide revenues of more than EUR 1.8 billion. The company is the largest newspaper printer in South Africa and has three print sites located in Johannesburg, Cape Town and Durban, employing some 550 staff. It produces Independent News & Media’s own titles, encompassing daily and weekend newspapers, as well as contract work. The Johannesburg plant alone prints approximately eight million copies per week. And now each site is equipped with twin Kodak Trendsetter News Thermal Platesetters. General Manager Bernard Briggs described CTP made in Germany As the industry leader in CTP technology, we are constantly setting new benchmarks with our products which are exactly geared on the needs of our customers.Besides innovative CTP solutions for all segments, Krause also www.krause.de the CTP investment as a “hugely important decision” that involved an exhaustive costbenefit assessment. “We evaluated the three major suppliers to South Africa and did comparators on all of them. We wanted a solution that would not only give excellent quality but would do so on a daily basis without constant attention. Consistency of supply and the availability of first-class technical back-up were also absolutely imperative, and we are confident about the support that Kodak and its South African partner Antalis will provide us with,” he said. Independent Newspapers is using Kodak Thermalnews gold digital printing plates, which meet the rigorous demands of newspaper printing while delivering outstanding resolution for premium newspaper printing and commercial-quality printing. The plates offer run lengths of over 200,000 impressions without postbaking. Rapid imaging and processing, faster makeready and plate reliability gives newspapers extra editorial time, and the clean-working, low-pH, low-consumption developer reduces processing costs. offers the full system integration: workfl ow, platesetter, processor and punch bender in one system. To optimise your operations is our daily challenge. PREPRESS Mr. Briggs added that the quality achieved through the use of Kodak Squarespot thermal imaging technology and Staccato screening technology was another major reason behind the decision to choose a KODAK Solution. “We’ve improved our deadlines through a faster process, and we’ve made definite improvements in overall quality – the benefits include dot consistency and process stability, better registration and ink/water balance, and we’ve actually been able to reduce the amount of ink we’re using overall. The quality and predictability of colour has improved, we get consistent results every day without the need for regular calibration which has really made a difference to our pressmen,”he stated. The Trendsetter News Thermal CTP Device comes in five speeds, ranging from 60 to more than 240 plates per hour to suit newspaper printing facilities of all sizes. The Independent Newspapers installation incorporates four devices operating at 150 plates per hour, and two at 100 plates per hour. The machine-to-machine accuracy of the Squarespot thermal imaging heads, combined with the binary nature of thermal imaging, achieves consistent and repeatable halftone dot structures. Staccato screening produces high-fidelity, artifact-free images that exhibit fine detail and more impactful colour in newspapers. IfraExpo 2008, 27 - 30 october 2008, Amsterdam, hall 8, stand 8230
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