Red all over: Growing demand for online content has constrained industry revenue

Operators in the Newsagencies industry have faced challenges and significant changes over the past five years. Declining newspaper circulation and reduced demand for other traditional product lines, particularly magazines and stationery, have negatively affected industry trading conditions. Growth in internet connections and IT and telecommunications adoption will likely reduce demand for industry products. However, growing discretionary income and positive consumer sentiment have provided an opportunity for industry growth. Industry revenue is expected to decline at an annualised 3.3% over the five years through 2018-19, to $1.9 billion. This includes an expected 2.5% fall in revenue in more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Consumers are increasingly accessing news online, negatively affecting demand for industry products
  • Challenging trading conditions have caused enterprise and establishment numbers to decline
  • Growth in national internet connections will negatively affect demand for industry products
  • Industry Report - Industry Investment Chapter

    The industry has low capital intensity. For every dollar spent on capital, $12.20 is spent on wages. Operators across the industry, including newsagency shops, subagents and home delivery services, generally employ staff to help with daily operations. As a result, wages are an integral part of the business. The overall size of operators and the individual needs of industry players influence wage costs. Capital expenditure for the industry comes in the form of point of sale systems, store fixtures and fittings. Operators that also trade as lottery franchises face additional costs in implementing the store fit-out required by the lottery franchisor...purchase to read more.

    Additional Insights for the Newsagencies Industry

    IBISWorld has determined the most important Key Success Factors for the Newsagencies are:

  • Ability to attract local support/patronage
  • Ability to control stock on hand
  • Being part of a franchise group
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Per capita gambling expenditure in the Newsagencies industry impact industry performance..

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    What's in this report

    What is the Newsagencies Industry?

    Industry operators primarily retail newspapers, magazines, stationery and greeting cards. These businesses may also sell lottery products, gifts, party items, plush goods, toys, tobacco products, confectionery and beverages. Businesses may trade as a shop, a subagent, or offer home delivery or any combination of these activities.

    Industry Products
  • Lottery products
  • Newspapers
  • Magazines
  • Cards, gifts and party items
  • Stationery
  • Other goods and services
  • Industry Activities
  • Lottery product retailing
  • Newspaper retailing
  • Magazine retailing
  • Greeting card retailing
  • Stationery retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household discretionary income
  • Per capita gambling expenditure
  • Consumer sentiment index
  • Internet subscribers
  • IT and telecommunications adoption

  • Current Performance
  • Operating landscape
  • Products and services
  • Profit and competition
  • Enterprises and employment
  • Chart: Revenue Growth

  • Industry Outlook
  • Trading landscape
  • Profit and competition
  • Growth prospects
  • Table: Newsagencies Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Newsagencies Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Magazine and Directory Publishing
  • Newspaper Publishing

  • Products & Services
  • Cards, gifts and party items
  • Lottery products
  • Magazines
  • Other goods and services
  • Newspapers
  • Stationery
  • Chart: Newsagencies Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers
  • Business accounts
  • Subagents
  • Chart: Major Market Segmentation for the Newsagencies Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Newsagencies

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Newsagencies Industry

  • Industry Globalization
    Newspower Newsagents, Nextra Group, NewsXpress,
  • Table: Newspower Newsagents - financial performance
  • Table: Nextra Group - financial performance
  • Table: NewsXpress - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Newsagencies Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Newsagencies Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Newspaper Circulations
  • The number of newspaper copies dispersed by publishers on an average day.
  • Subagent
  • A retailer that sells newspapers and magazines on behalf of a territorial newsagent. Subagents do not deliver newspapers or hold a direct newspaper account.
  • Territorial Newsagent
  • An industry operator that services a defined area as part of a contractual agreement.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Newsagencies market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Newsagencies:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Newsagencies market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Newsagencies, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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