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Show Space Age For Newspapers The more efficient large publishers of newspapers are fast adapting to the advanced telecommunications age. according to Babson's Reports Inc., March 25. 1982. They are diversifying their businesses into radio and television broadcasting, cable TV. and supplying information from their own data bases via computer com-puter terminals. In addition, these well-capitalized and publicly-owned chains have acquired computers to lay out pages, photocomposition equipment, and laser-produced laser-produced printing plates. IT IS IN the area of information informa-tion retrieval, however, (the supplying of all kinds of data from company-owned software) soft-ware) where demand is expected ex-pected to accelerate over the next several years. This sophisticated two-way, interactive, in-teractive, call-up television service and the transmission of information via a home personal per-sonal computer system are two dynamic sectors holding great potential for increasing the revenues re-venues of the newspaper publishers. pub-lishers. The Research Dept. of Babson's Bab-son's Reports expects the expansion ex-pansion of the communications communica-tions base by newspapers to result in a number of mergers and acquisitions of smaller newspaper publishers who do not have the resources to compete com-pete with the entry into the electronic and video media. npcr,itf thp Hppnpnino hni- ness recession, the stocks of the leading newspaper publishers, pub-lishers, down from their highs, now appear to be especially attractive for purchase. NEWSPAPERS are enjoying increasing advertising revenues re-venues stemming from both rate hikes and expanded linage. lin-age. Some 29 percent of the total expenditures for advertising adver-tising in the U.S. is received by newspapers. Publishers operating the only newspaper in a local area are able to raise their advertising advertis-ing rates almost at will. Large chains are continually on the lookout for profitable smalltown small-town papers to add to their bases because of this. TOTAL newspaper advertising adver-tising revenues are expected to rise to $24 billion by 1985. up considerably from the $17.5 billion recorded in 1980. Likewise, Like-wise, a marked advance is forecast for the growth in net revenues for the industry from a ' 1 it tie over an estimated $19 billion last year to $27-$28 billion by 1985. This is a commendable com-mendable annual average growth rate of 10 percent. Besides acquiring other papers pap-ers and entering new allied communication fields, the big publishers of daily and Sunday editions have revamped their papers or are in the process of doing it. In many instances, both the appearance and content con-tent have been improved through the use of more feature-oriented articles and color col-or photographs. New attractive attrac-tive special sections have been added and-or enlarged to whet readers interest and loyalty. Longer range, some large U.S. newspaper publishers are increasing in-creasing their investments in international publishing operations. opera-tions. IN SUMMARY, today's modern city newspaper is a far cry from the provincial limited, li-mited, one-product business of a decade ago. Publishers have embraced fully the com- " munications explosion and an: prepared to compete aggressively aggres-sively in the many widening submarkets. The Research Dept. of Babson's Bab-son's Reports is currently advising the purchase of the stock of two large newspaper publishers for investment. These are Dow Jones and Co., known for its Wall Street Journal Jour-nal and Barron's, and Knight-Ridder, Knight-Ridder, one of the largest newspaper chains in the country coun-try and publisher of the re-nouwned re-nouwned Journal of Commerce. Com-merce. PURCHASE THE Dow Jones conservative-grade common stock for its promising promis-ing growth potential near 46 (NYSE), buy limit 52, P-E 20, yield 2.8 percent; and the conservative-grade common to Knight-Ridder near 29 (NYSE), buy limit 34, P-E 9, yield 3.2 percent, also for growth. |
