How does the crisis affect to the newspapers in Spain?
An economic crisis is the worse period of the economic process, so it is produced when there is a decrease in the economic situation.
That causes a decrease in people’s money so too many companies, for not spend too much money in that bad situation in which the banks have not too much money, they dismiss employees. That occurs in all or the majority of business that exist in the moment and specially in Spain, one of the worse countries in Europe affected by the economic crisis that started in 2008.
In this text we are going to look for how does the crisis affect to the businesses that produces and sells newspapers.
As in all the businesses, lots of journalists lost their job in the last years; the number of journalist without job is more than 8.000. Firs, in the beginning of the crisis, they were 3.030, then in 2010 they increase to 6.500 and now, the number is higher than the eight thousand but, at the end of 2012, the people expect more than ten thousand journalist without an employment.
One of the reasons of this is obviously that the business who are in care of the newspaper, lost money. They do not gain money by the sell of the newspapers; they win money with the publicity.
So, they win money because some companies pay them to put in the newspapers all of this publicity to make their company more famous. But, all the companies are loosing money so they can not pay too much for the publicity but, also there are a lots of companies that needs their publicity for be more famous and attract more clients.
The actual percentage of publicity lost during all of that years of crisis is a 30%, that is a really big change in publicity and also, in the money that the people who work in newspapers win.
That people are looking for different ways of reducing the costs of their newspapers, one of them is to reduce the number of pages of the newspapers, if they reduce them, the cost to produce them will be less. Also another way is to make digital newspapers, that means that they can show their newspapers by internet so people will read it more, if people wants to read it more because they don’t have to spend any money in buy them, companies would like to put their publicity in the digital newspaper which will increase the amount of publicity in their newspapers.
In EEUU, the press, in four years decrease a 40% in sells and their shares, decrease a 70% in their value, that means that a newspaper which a share costs 40 dollars, now it costs 7 dollar, it is a big decrease and the consequence of it is that three of the most famous newspapers in the world are now between the worse ones so, if that occurs in EEUU which now is in a better condition than Spain, imagine the results in Spain, are the same, the shares have decrease a big amount and lots of newspapers are now removed from the market.
One of the solutions was the digital newspaper but, that was a problem with all the newspapers in the world because before this, all of that 30% publicity lost was added to Google who win 30% of publicity, while the companies were loosing money, Google was obtaining too much. That is because nowadays all the people use internet or the majority, they always visit webpages, teenagers for look information in different pages, adults visit the other companies pages, look for information too, use programs instead of writing… All of this has made Google the principal source to look for many thing so the companies has decide to put their publicity here and also, Google made a merge with a publicity company called
DoubleClick, which has put too much publicity around the whole Internet.
All of that as turned into a confliction between the press and the Internet and Google didn’t want to have the entire fault so they decide to put digital web pages of the newspapers and with the help of Google, put in it the publicity so, they thought that was going to increase the publicity because the cost will be zero of the newspaper and the companies will have a new visit place to put their advertisings. But, obviously that was not enough money compared to the incomes obtained with the other method.
This publicity consist in that every click anyone does to the publicity they won money so they also have their own methods of make people click in the publicity because now they are not printed in a newspapers, so companies like them more because they can make animations and all of this but, as I said this cost is less than put a publicity in the newspaper and also people don’t like the publicity in Google around all the pages occupying the majority of space until you cross it.
The publicity in internet is not the main place to put news because people can not see the newspapers because they don’t like them in a digital way, they always will have the television who has a 70% of audience and the internet a 35%.
An advantage of this is that the news will be in the online newspapers immediately at the same moment that this new occurs and social networks will help as twitter, the space of twitter to write a new is just one hundred and forty letters and that is too small to write a whole new so, they just say what has happened in a small sentence and when people read it they immediately go to the online newspapers that will have their new about that in less than one hour. But, in the other hand, the newspapers that you buy in the market every day, will decrease because if at eight a.m. they have to be done and something really important happen at half past eight they can not write it until the next day so here is when the TV gains audience now with that digital newspaper does not happen but, the people who sells newspaper will lose money.
A disadvantage is that people think that the newspapers has lost culture because now the news are written with much less detail, they don’t even had time to prepare and now exactly what happened, also there are too much faults in how to write the letters, grammar faults. And the main one, is free so tat means that producing newspapers decrease and the consequences will be lost of money in the printing companies and also in the kiosks, in charge of sell that newspapers, now we are going to see this problem. And also there is less journalists and more work to do.
The other solution was the one that consisted in decrease the number of pages but that one has a relation with the other one, if they decrease the information in the newspapers, people will prefer to go to internet and see the newspapers online that will have a second effect that is that all of that people who have a small business selling newspapers will lose too much money, the newspapers are cheap but too much of them can be a lot of money and if they have decrease the information, it will be cheaper and people will not want to buy them.
Another thing is that the newspapers now have increased their value for example, before in some places they use to give you free a newspaper or in the plane to read, all of that are free but now, they don’t give them to you free, you have to pay a part of the newspaper for read it. For example, in Galicia that is in Spain, there was a newspaper called el Metro which now has disappeared from the market, and like that one, so many local newspapers are removed. People need to buy the newspapers which are not locals from a unique province, that are for example El Pais, from all Spain, and there is where they have to look for the news in their province.
So finally, we can say that the crisis has affect too much the newspapers and the effects to reduce that costs are reduce the number of pages to decrease costs. Also, create web pages in Internet but, that didn’t gave them as much money as the had before the crisis started, too much newspapers disappeared. Also this made a conflict with Google and finally they arrived to a conclusion where the digital newspaper will include publicity that Google share with them. All of that will be some solution that has increased a part of that money that they lost before by reducing shares. So the newspapers depend on publicity, without it, newspapers would not exist.