| Summary: | The newspaper industry is entering a period marked by dismal decline in
readership and circulation. Based on data from Nielsen (2012), the penetration of
print media, especially newspapers, continues to shrink significantly. In 2008,
newspaper penetration reached 21.41%, but dropped the next year only to be
18.71%. Then, its penetration in 2010 fell further to 14.26%. The newspaper
penetration in 2011 was back down, only the remaining 13.63%. Penetration rate
shrank back last year to 12.24%. This is certainly worrisome for a business in this
industry because it has been one of the benchmarks of success is to get the
number of newspaper readers as much as possible and be able to print circulation
corresponding to the target number of customers. Moreover, the advertisers are
also always based on the total number of readers and circulation before deciding
to place an ad in a newspaper. Fortunately, declining of penetration is not
comparable to newspaper advertising revenue. Newspaper advertising revenue is
still showing significant growth. Newspaper advertising revenue in 2012 grew
22% compared with the previous year. Portion of newspaper advertising revenue
is also quite stable at 30% per year, while the television is 60%.
Although advertising is still growing, management has prepared the anticipatory
measures to overcome the bad possibilities that could have happened to this
business. Republika also do the same
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